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HomeMy WebLinkAbout2014-11-10 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL November 10, 2014 Regular Meeting Council Chambers 6:00 PM Vice Mayor Kniss will be participating from 2253 - B Poipu Rd. Koloa, Kauai HI Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 November 10, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Study Session 6:00-7:00 PM 1. Council Study Session with Parks and Recreation Commission Special Orders of the Day 7:00-7:10 PM 2. Partner Presentation Between the Palo Alto Library and Palo Alto Art Center for Veteran Audiences 7:10-7:20 PM 3. Appointment of Candidates to the Architectural Review Board, the Historic Resources Board, and the Planning and Transportation Commission 2 November 10, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions City Manager Comments 7:20-7:30 PM Oral Communications 7:30-7:45 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 7:45-7:50 PM September 15, 2014 September 22, 2014 Consent Calendar 7:50-7:55 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4.Policy and Services Committee Recommendation to Release Agenda Packets One Week Earlier and Make Other Conforming Changes 5.Finance Committee Recommendation that the City Council Approve Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study 6. Finance Committee Recommends Approval of Staff's Second Follow-up Response to the Inventory Management Audit 7.Adoption of a Resolution Summarily Vacating Public Easement Which has been Relocated at 1050 Page Mill Road 8.Denial of a Historic Designation Request for the Palo Alto Little League Site Located at 3672 Middlefield Rd 9.Adoption of a Resolution Concurring with the City of Menlo Park for the Naming of the Mike Harding Pedestrian/Bicycle Bridge at San Mateo Drive (Menlo Park) 10.Approval of Contract With Concern: EAP for the City of Palo Alto's Employee Assistance Plan, in the Amount of $2,800.60 per Month for up to Sixty Months for a Total Amount not to Exceed $168,036 HRB Presentation ARB Presentation Historic Inventory Application 3 November 10, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 11. Approval of a Public-Private Partnership Agreement between the City of Palo Alto and the Palo Alto Players for the Cooperative Use of the Lucie Stern Community Theatre 12. Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and West Bay Opera for the Use of the Lucie Stern Community Theatre 13. Approval of a Three Year Contract with Downtown Streets, Inc. in a Total Amount Not to Exceed of $470,616 for Maintenance Services for the City's Five Downtown Parking Garages, Downtown Sidewalks and Alleys, Lytton and Cogswell Plaza, the Stanford/Palo Alto Playing Fields, and the Old Community Garden, and Provide Outreach Case Management Services to the Downtown Core with the Intent of Linking Homeless Individuals to Community and Housing Services 14. Approval of a Blanket Purchase Order with TMT Enterprises in an Amount Not to Exceed of $2,407,850 to be the Primary Supplier of New Construction Materials and Haul Away of Construction Debris from the Municipal Service Center to Off-Site Recycling and Disposal for the Utilities, Community Services and Public Works Department for a Three Year Period from October 27, 2014 through October 26, 2017 15. Approval of Contract No. C15153692 With RMC Water and Environment in a Total Amount Not to Exceed $4,357,899 to Provide Program Management Services for Projects Under the Long Range Facilities Plan of the Regional Water Quality Control Plant – Capital Improvement Program Project WQ-14001, and for Projects Under the Organic Facilities Plan of the Palo Alto Landfill Project RF-11001 16. Approval of Extension of the Trial Caltrain Go Pass Program for City Employees and Adoption of a Budget Amendment Ordinance in the Amount of $80,280 for the 2015 Go Pass Program 17. Approval of Contract No. C15155378 With Carollo Engineers, P. C. in the Total Amount Not to Exceed $291,335 to Provide Design Services for Old Pumping Plant (OPP) Rehabilitation at Regional Water Quality Control Plant - Capital Improvement Program Project WQ- 80021 18. Approval of the Submission of a National Endowment for the Arts Our Town Grant Application 4 November 10, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:55-8:55 PM 19. PUBLIC HEARING: Resolution Adopting the 2015-2023 Housing Element of the Comprehensive Plan and Associated Mitigated Negative Declaration and Mitigation Monitoring Program 8:55-9:25 PM 20. Approval of Letter of Intent for Construction and Operation of the New Junior Museum and Zoo Building by the Friends of the Junior Museum and Zoo in 2019 9:25-9:55 PM 21. Approval of a Two-Year Contract with Flint Strategies For a Communications and Outreach Contract to Support the Our Palo Alto Initiative and the Planning and Community Environment Department at a Cost Not to Exceed $175,000 (Continued from October 27, 2014) 9:55-10:25 PM 22. Review of City Hall Remodel Project (Continued From October 20, 2014) Inter-Governmental Legislative Affairs Council Member Questions, Comments and Announcements 10:25-10:35 PM Members of the public may not speak to the item(s) Closed Session 10:35-11:00 PM 23. CONFERENCE WITH ATTORNEY/LEGAL COUNSEL Potential Litigation Relating to the Mitchell Park Library and Community Center Construction Significant Exposure to Litigation: 1 Potential Case Potential Initiation of Litigation: 1 Potential Case Authority: Government Code Section 54956.9 Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 5 November 10, 2014 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Policy and Services Committee Meeting Cancellation Nov. 11, 2014 Special Policy and Services Committee Meeting Thursday, Nov. 13, 2014 Council Appointed Officers Committee Meeting Friday, Nov. 14, 2014 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto Utilities Strategic Plan Performance Update for the Period of January through June 2014 Boards and Commissions Term End Dates for 2015 (Maddy Act) Public Letters to Council SET 1 City of Palo Alto (ID # 5263) City Council Staff Report Report Type: Study Session Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Council Study Session with Parks and Recreation Commission Title: Council Study Session with Parks and Recreation Commission From: City Manager Lead Department: Community Services Attachments:  A - November 10-2014 (PDF)  Parks and Recreation Commission 2014 - A Look Back - for Council ver 2 (PDF)  7 7 acres City Council study session REV (PDF) IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 549524.2(a) OR SECTION 54956 54954.2(a) OR SECTION 54956 CITY COUNCIL AND PARKS AND RECREATION COMMISSION STUDY SESSION MEETING November 10, 2014 Palo Alto Civic Center I. ROLL CALL II. AGENDA CHANGES, REQUESTS, DELETIONS III. ORAL COMMUNICATIONS Council Conference Room 6:00 PM Meeting 250 Hamilton Avenue Members of the public are invited to address the commission on any subject not on the agenda. A reasonable time restriction may be imposed at the discretion of the Chair. The Commission reserves the right to limit oral communications period to 15 minutes. IV. BUSINESS Below are the potential topics of discussion for the joint study session with the Public Art Commission scheduled for November 10, 2014 at 6:00 PM: 1) Highlights from the past year 2) Current Park and Recreation Commission policy matters under review: - Possible use of newly dedicated 7.7 acres at Foothills Park - Exploration of shared use dog parks - Parks and Recreation Master Plan - Park and Recreation capital improvement planning - Other 3) Council question 1 Parks and Recreation Commission A Look Back at 2014 Parks and Recreation Master Plan The Commission has been very active with the plans and initial research being conducted by the outside consultant (MIG) on the Master Plan. We met in March in a joint session of Council to hear from MIG for the first time. Subsequently, each commissioner has been involved in some aspect of the research to date - from citizen intercept surveys to participating at public workshops for input of ideas. We have also heard twice from the consultant via formal presentations at Commission meetings and provided feedback regarding the presentation and sufficiency of data. Park Improvement Projects + El Camino Park - Reviewed options and held public outreach regarding the addition of field lighting to El Camino Park to substantially increase the playing time on the new fields. Recommended to Council the approval of the complete park PIO. (More extensive analysis and review by ad hoc committee and full commission was undertaken in 2012 and 2013). + Scott Park – Reviewed design and public comment in ad hoc committee, attended citizen outreach sessions and heard multiple readings with public input at Commission meetings – substantially around the bocce ball court issue. Recommended to Council the approval of a PIO including bocce ball court. + Reviewed Hopkins, Monroe, and Bowden Parks design recommendations. After multiple review meetings and design adjustments, recommended approval of a PIO for each. + Reviewed proposed design for Byxbee Park Trails and assigned ad hoc committee to follow up on questions and concerns. 2 + Reviewed design and progress of Magical Bridge Playground and recommended approval of a PIO. Municipal Golf Course + Commission ad hoc committee met extensively with staff and stakeholders group on the issue of tree mitigation for lost trees due to construction of new Baylands Golf Course. Commission approved a committee recommendation for three acres of Baylands restoration and recommended same to Council. + Commission recommended to Council the approval of the draft EIR and PIO for the creation of the new Baylands Golf Course. New Initiatives + With high citizen demand for off-leash dog run areas, and limited dedicated space for this purpose, the commission is investigating the feasibility of shared use dog parks and the development of a pilot proposal to recommend to Council. An ad hoc committee is well along on the investigation. + Full Commission took a walking tour of the 7.7 acres in Foothill Park subsequently reclassified as Palo Alto parkland. Preliminary consideration of potential uses of this space is being considered at ad hoc level. + Ad hoc committee is actively redesigning and updating the PARC website for improved public access to critical materials. + With staff Anderson and Keith investigated ways to improve the process for public outreach to residents to better inform them of parks and recreation issues and to increase attendance at public meetings for the consideration of changing neighborhood park facilities. New protocol for email notification to citizens is in process. + Discussed and approved Memorandum to Council regarding impacts of growth on parks and recreation resources and urging Council to measure those impacts and ensure that plans for future growth reflect a commitment by the City to 3 promote expansion and maintain the quality and health of our parks, recreation and open space resources. Other Issues + Prioritized CIPs for coming year via an ad hoc committee in conjunction with staff Betts, DeGeus, and Anderson. + Provided positive feedback to Council on “Know Your Neighbors Grant Program.” Recommended the continuance and expansion of grants in coming years for wider outreach. + Reviewed and, after significant revisions and multiple presentations to the full Commission, recommended approval of Urban Forest Master Plan. + Considered changes and improvements to the Community Gardens program. Ad hoc committee continues work on developing proposed changes. + After multiple meetings for consideration and public comment, unanimously recommended approval of municipal code amendment to restrict feeding of wildlife and feral animals. + Supported and attended Cogswell Plaza dedication to honor redwood grove memorial for fallen Palo Alto police officers. + Reviewed the design competition process for 101/Adobe Creek Pedestrian- Bicycle Overpass. + Ad hoc committee began investigation of opportunities for improvements to Baylands Interpretive Center and Sterling Canal. 1 TO: City Council FROM: 7.7 Acre Parcel at Foothills Park - Ad Hoc Committee, Parks and Recreation Commission DATE: November 10, 2014 SUBJECT: Working Paper on 7.7 ACRE PARCEL AT FOOTHILLS PARK The Parks and Recreation Commission has assigned an Ad Hoc committee to facilitate the development of ideas for specific land use options of the newly dedicated 7.7 acres in Foothills Park. The fact sheet below has our findings thus far including public comments, a site map and an Acterra Native Plant Nursery fact sheet. We want to discuss this learning with the Council and gather the Council’s thoughts and ideas so we can proceed forward in providing suggested land use recommendations. Background of the 7.7 Acres/Current Land Leases: The 7.7 acres was not part of the original Foothills Park. The parcel was a gift to the City of Palo Alto in 1981 by the Lee family. The Lee Family retained an estate on the property until 1996 when it reverted to the City. The City had a lease/agreement for use of the land from 1996 to 2013 to the private resident who owns the three neighboring parcels. Acterra Native Plant Nursery has leased a portion of the parcel from the City (.53 acres) since 2003. Acterra’s Lease Agreement expires in 2015 and can be renewed by mutual consent of Acterra and the City. Current Soil Conditions The 7.7 acres parcel is a former quarry site. The hillside on the north side (right side as you enter the property) is composed of poor soils and spoils from the quarry. The valley floor (flat part of the parcel which represents approximately 2.1 acres) is the same quarry spoils with poor soil and deposited creek sediments. We estimate that the flat part of the parcel (2.1 acres) has an estimated 5 feet deep of this poor soil/sediment. Buckeye Creek Buckeye Creek originates in Foothills Park at the upper end of Wildhorse Valley and splits the 7.7 acres. Buckeye Creek was channelized before the 1950’s and significant additional channelization occurred upstream of the 7.7 acres after floods in 1983. As a result, a lot of sedimentation occurs and collects in the creek. The creek flattens out through the 2.1 acre section of the parcel and this is where the major 2 sedimentation collects during the rainy season. Collected sediments must be removed 2 to 3 times every year to prevent flooding. The removal is especially important before the creek flows through culverts at the end of the 7.7 acres (back right hand side of property). This is the last opportunity to clear the sedimentation before heading into the cavernous culverts downstream. The private resident whose property borders the 7.7 acres has managed the creek sediment removal process up until now at his cost. The City will now be responsible for that work unless an agreement between the City and the private resident is obtained. The culvert noted above is approximately 7 feet below the valley floor of the parcel. (back right hand side of property) It is extremely dangerous to any wildlife and/or person who might venture down into it. Safety precautions must be taken to secure this culvert from easy public access. Due to Buckeye Creek’s size and the mostly undeveloped watershed, it should serve as high quality habitat for steelhead and other wildlife. However, since a significant portion of the creek is channelized and deeply incised, it has an increased slope resulting in a high stream velocity. This accelerates erosion and prevents the formation of pools and riffles needed for good fish habitat. A $75,000 CIP for a hydrologic study of Buckeye Creek was proposed, but not funded last year. Such an analysis would be extremely useful in developing recommendations for proper restoration and realistic recreational uses of the parcel. Easements and Other Restrictions The 7.7 acres includes an easement for an emergency ingress and egress road that runs through the parcel to Los Trancos Road. This easement must be maintained for emergency response and evacuation of Foothills Park. Development is limited next to Buckeye Creek. Environmental regulations preclude any permanent structures or parking lots within 50 feet of the creek. (The 50 feet is measured from the bank side of Creek.) The 7.7 acres is bordered on three sides by a private residence. There is only one public entry and exit point to the 7.7 acres. The flat area of the parcel (approximately 2.1 acres) is the only viable usable space within the total 7.7 acres. This includes the current .53 acre nursery parcel. The remaining portion of the parcel is hillsides, exclusive easements and setback from Buckeye Creek. Public Outreach 3 The PARC Ad Hoc worked with Staff to start the process of gathering public ideas and comments pertaining to the newly dedicated 7.7 acres. In order to begin this process we created open house tours of the acreage. There were a total of four Ranger lead tours of the 7.7 acres and they were given on: October 4th and 5th and October 11th and 12th, 2014. A total of 9 members of the public attended those tours. A public meeting was held on October 18th with a Ranger lead tour occurring prior to the meeting. Approximately 10 people attended this tour and 27 people attended the meeting. Each tour included the history of the site as well as discussion of the challenges/restrictions associated with the 7.7 acres (as described above). The public meeting held on October 18th was facilitated and run by Daren Anderson, Division Manager City of Palo Alto Open Space, Parks and Golf and Lester Hendrie, Supervising Ranger, Palo Alto Open Space. Members of the PARC Ad Hoc were also present at the public meeting as well as representatives from Acterra. Both Mr. Anderson and Ranger Hendrie presented the facts about the 7.7 acres and then opened the meeting up to public suggestions and comments. A complete list of all of the public’s comments and suggested land usage is attached to this fact sheet. The major themes that came out of the tours and public meeting are the following: Theme 1. Restoration Theme 2. Additions to current recreational activities in Foothills Park including campsite, picnicking area, structure for special events and an off leash dog area. Theme 3. Keep Acterra and add a possible additional environmental partner for shared use. (See attached Acterra fact sheet) Next Steps As you can see, the 7.7 acre parcel presents several physical and legal challenges that will constrain future improvements. While it is exciting to add this new acreage to our parkland inventory, any future plans for the site must take into account current conditions and the potentially significant costs of restoration. The PARC Ad Hoc will meet with Staff to discuss all comments and suggestions emerging from the Council-Commission study session. The Parks and Recreation Master Plan will also provide valuable insight to any functions that we may be currently underserving in our park and recreation system. 4 After integrating the Council and public comments as well as the Master Plan research, we will create an action plan for the PARC and Staff to develop land use recommendations to Council for the 7.7 acres. We look forward to developing an appropriate and sustainable plan for use of the site over the next year. 5 ATTACHMENT A PUBLIC COMMENTS/SUGGESTED USES OF 7.7 ACRES OCTOBER 2014 1. Open sided building for various special events. Ideally allowing horses. It would bring more people into the park. Possible uses could include hayrides, weddings, etc. The fact that there is a large flat area is a positive. 2. Note that the 5’ of overburden soil (this is the material that was excavated from the adjacent quarry) that was placed on the 7.7 acres limits the restoration options. The overburden material is not good for growing plants. Alternatives to restoration should be considered. It would take a lot of effort to restore. Bounded with only one entry is also a challenge. We need to think outside the box. 3. The flat area is good thing. It would be a good location for a primitive campground with limited amenities. We could use the existing amenities, such as the restrooms at Oak Grove and the parking near Oak Grove picnic area. 4. Move the existing park maintenance building into the 7.7 acre area, and restore the site where the maintenance building is currently sitting. The maintenance yard is the entry to this space, and the entry should be attractive. 5. All options considered for this space should retain the Acterra nursery, and build on access to the nursery. The nursery should be instructional, not just commercial. (someone notes that classes of children do visit the nursery). 6. There are numerous benefits of the nursery, and it should be maintained on site. 7. There should be a placeholder for option of including a Canopy tree nursery at the site. 8. It would be great if there is public access into this area through Los Trancos Road. Don’t do anything that would preclude or prevent future connectivity through this site to the rest of Foothills Park. 9. Restore original creek. Consider removing the overburden soil and restoring the area to one contiguous valley. It would take a long time, but with time and grants it is possible. 10. Leave the site alone. Just add a simple trail. 11. Concern about emergency exit from the park. How is an individual inside the park supposed to escape the area if there is a gate that can only be opened by emergency response staff? 12. Acterra nursery should be allowed to stay on the site because it is a benefit to the City. 6 13. Make sure this issue is covered by the press (Weekly). It will ensure that more people are aware of the discussion. 14. The Parks Master Plan may identify needs that cannot be met with our existing space in the park system. Keep this area open for needs that are identified in the Master Plan. 15. Keep Acterra Nursery on the site. 16. Support the Acterra Nursery and expand the stewardship and educational opportunities. 17. Use the area for athletic fields. 18. Question about how often the campground and group picnic area are booked? (Staff explained that during summer weekends the campground and group picnic area are fully booked.) 19. Camping could be a great use for this site. 20. Cabin camping with platforms would be a good use for the site. It would increase winter camping. 21. Consider removing the eucalyptus trees from the site. 22. Adding something like the Oak Grove Picnic Area and including some new trees. 23. Include placeholders for connectivity. 24. Restoration could bring lots of grant money. 25. Canopy tree nursery 26. Creek restoration concept. There are lots of grants for this kind of work. 27. Improve the soil and let nature take its course. Remember, this is a nature preserve. 28. Respect the neighbors to this site. Need to take into account noise issues for whatever is considered for this area. You wouldn’t put a campground right next to other neighbors’ homes anywhere else in the park system, so why would you do it in this situation. 29. Bike trail thru to Los Trancos Road. 7 ATTACHMENT B Acterra Nursery Facts The Acterra Native Plant Nursery has been in operation since 1996 and located on the current site since 2003. Acterra is a Palo Alto non-profit organization engaged in various activities intended to protect and enhance our local environment.  The current lease for the nursery site expires in 2015 and can be renewed for another five years by mutual agreement between Acterra and the City of Palo Alto. In lieu of a cash rental payment for the nursery, Acterra provides the City with $10,000 in value per year consisting of plants, materials and volunteer restoration services. Acterra meters and pays for all the nursery water usage. Electricity is generated on site via solar panels.  The entire nursery, including all structures, the solar electric system and water line was built from the ground up by volunteers frequently using their own tools and employing donated and salvaged materials whenever possible.  The nursery is staffed by one full-time and one part-time Acterra employee assisted by several regular volunteers. Staff duties extend beyond nursery operation to include related activities such as seed collecting and restoration consulting.  Specializing in plants grown from local wild-collected propagules, the nursery grows about 150 species and more than 30,000 plants annually, some of which are endangered and difficult to propagate.  The nursery provides all plants used in Acterra Stewardship program restoration projects, as well as being a key supplier of plants for other local public agencies such as the Santa Clara Valley Water District and the Mid- Peninsula Regional Open Space District. For example, the nursery is the primary plant supplier for Mt. Umunhum Restoration.  In Palo Alto alone, Acterra Stewardship provided 10,000 volunteer hours of habitat restoration and installed more than 14,500 nursery plants at seven different sites last year.  The primary focus of the nursery is growing plants for wild land restoration. It also serves commercial and residential landscapers who wish to install water wise eco-friendly plants. The nursery pioneered the lawn replacement concept. Local schools, parks, demonstration gardens and rural farmers also use plants from the nursery.  The nursery attracts an abundance of birds, butterflies, native bees, and other wildlife. We are especially proud of our large tree frog population. We facilitate the hatching of hundreds of tree frogs each year. --- Property Manager Residence Foothills Park Maintenance Yard Emergency Evacuation Route Acterra Nursery Arrillaga Residence City of Palo Alto (ID # 5224) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Partner Presentation Veteran Audiences Title: Partner Presentation Between the Palo Alto Library and Palo Alto Art Center for Veteran Audiences From: City Manager Lead Department: Community Services Partner Presentation at Council 11.10.2014 Palo Alto Palo Alto Art Center and Library The presentation will focus on collaborations between the Palo Alto Palo Alto Art Center and Library Department for veteran audiences. Both the Library and Art Center will discuss how their collaboration builds off previous programming for veterans. In conjunction with the Library’s receipt of a 2014 Cal Humanities War Comes Home grant, the Art Center and Library collaborated on a photography workshop for veterans and a subsequent exhibition and community day celebration on November 9. This project was informed by previous projects at the Palo Alto Art Center involving veterans, including Lava Thomas’ Veterans Portrait project as part of the 2012 Community Creates exhibition; the Creative Work Fund sponsored artist residency with Berkeley-based ceramic artist Ehren Tool; and San Francisco-based artist Drew Cameron and Combat Paper. These creative projects and other events are intended to increase community understanding for those who have served their community and to promote dialogue on the importance of engaging veterans into the fabric of civilian life. CITY OF PALO ALTO OFFICE OF THE CITY CLERK November 10, 2014 The Honorable City Council Palo Alto, California Appointment of Candidates to the Architectural Review Board, the Historic Resources Board, and the Planning and Transportation Commission The City Council interviewed eight candidates for the Architectural Review Board (ARB) and five candidates for the Historic Resources Board (HRB) on Wednesday, October 15, 2014. The City Council interviewed one candidate for the Planning and Transportation Commission on Wednesday, October 15, 2014 and seven candidates for the Planning and Transportation Commission (PTC) on Wednesday, October 22, 2014. Architectural Review Board On Monday, November 10, 2014 the Council will vote to appoint 2 three-year terms on the Architectural Review Board, expiring on October 31, 2017. The 8 ARB Candidates are as follows: Catherine Ballantyne Matthew Harris Qiming Huang Kenneth Huo Kyu Young Kim Flore Schmidt Richard Schoelerman Mark Weiss Valerie Driscoll and Daniel Pho withdrew their applications for the Architectural Review Board. Voting will be by paper ballot. The first two candidates to receive at least five votes (required) will be appointed. Page 2 Historic Resources Board On Monday, November 10, 2014 the Council will vote to appoint 4 three-year terms on the Historic Resources Board, expiring on October 31, 2017. The 5 HRB Candidates are as follows: Martin Bernstein (Incumbent) Roger Kohler (Incumbent) Michael Makinen (Incumbent) Iqbal Serang Margaret Wimmer (Incumbent) Kenneth Huo withdrew his application for the Historic Resources Board. Voting will be by paper ballot. The first four candidates to receive at least five votes (required) will be appointed. Planning and Transportation Commission On Monday, November 10, 2014 the Council will vote to appoint 2 four-year terms on the Planning and Transportation Commission, expiring on October 31, 2018. The 8 PTC Candidates are as follows: Yekaterina Vershov Downing Claude Ezran Adrian Fine Arthur Keller (Incumbent) C James Schmidt Jeff Schneble Lyn Tillery Asher Waldfogel Valerie Driscoll, Kenneth Huo and Richard Schoelerman withdrew their applications to the Planning and Transportation Commission. Jeff Schneble was not available for the interview process, but has been advised he is still eligible for appointment to the Planning and Transportation Commission. Voting will be by paper ballot. The first two candidates to receive at least five votes (required) will be appointed. Page 3 Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. ATTACHMENTS:  Attachment A: 10/15/2014 At Places Memo Regarding Withdrawn Applications (PDF)  Attachment B: 10/22/2014 At Places Memo Regarding Withdrawn Applications (PDF)  Attachment C: Ballantyne, Catherine ARB (PDF)  Attachment D: Harris, Matthew ARB (PDF)  Attachment E: Huang, Qiming ARB (PDF)  Attachment F: Huo, Kenneth ARB (PDF)  Attachment G: Kim, Kyu Young ARB (PDF)  Attachment H: Schmidt, Flore ARB (PDF)  Attachment I: Schoelerman, Richard ARB (PDF)  Attachment J: Weiss, M ARB (PDF)  Attachment K: Bernstein, Martin HRB (PDF)  Attachment L: Kohler, Roger HRB (PDF)  Attachment M: Makinen, Michael HRB (PDF)  Attachment N: Serang, Iqbal HRB (PDF)  Attachment O: Wimmer, Margaret HRB (PDF)  Attachment P: Downing, Yekaterina Vershov PTC (PDF)  Attachment Q: Ezran, Claude PTC (PDF)  Attachment R: Fine, Adrian PTC (PDF)  Attachment S: Keller, Arthur PTC (PDF)  Attachment T: Schmidt, C James PTC (PDF)  Attachment U: Schneble, Jeff PTC (PDF)  Attachment V: Tillery, Lyn PTC (PDF)  Attachment W: Waldfogel, Asher PTC (PDF) Department Head: Donna Grider, City Clerk Page 4 On Monday, October 6, 2014 City Council selected the following applicants to interview for the Architectural Review Board and the Historic Resources Board. Portions of the Palo Alto Municipal Code describing requirements for serving on each body are included for reference. Architectural Review Board 2.21.010 Architectural review board. There is created an Architectural Review Board consisting of five persons appointed by the City Council, and at least three of whom shall be architects, landscape architects, building designers or other design professionals. The Architectural Review Board shall have the powers and duties specified in this chapter, and shall comply with the procedures specified in this chapter. · (Ord. 5208 § 9, 2013: Ord. 4826 § 2 (Exh. 1 (part)), 2004) There are two open terms ending October 31, 2017 on the Architectural Review Board. The nine Architectural Review Board applicants to be interviewed are as follows: 10 minute interviews Kenneth Huo Qiming Huang Matthew Harris Richard Schoelerman Flore Schmidt Kyu Young Kim Catherine Ballantyne Mark Weiss 6:00 p.m. 6:10 p.m. 6:20 p.m. 6:30 p.m. 6:40 p.m. 6:50 p.m. 7:00 p.m. 7:10 p.m. The following applicant· is not able to attend interviews scheduled on Wednesday, October 22, 2014 for the Planning and Transportation Commission, so we are scheduling him along with the above interviews. Planning and Transportation Commission 2.20.010 Membership. There is created a planning and transportation commission composed of seven members who are not council members, officers or employees of the city, who are residents of the city, and who shall be appointed by the city council. (Ord. 4606 § 1 (part), 1999) There are two open terms ending October 31, 2018 on the Planning and Transportation Commission. The 1 * Planning and Transportation Commission applicant to be interviewed are as follows: 15 minute interview C James Schmidt 7:20 p.m. *Additional interviews for these terms on the Planning and Transportation Commission are scheduled for Wednesday, October 22, 2014. Historic Resources Board 2.27.010 Historic Resources Board. The Histori~ Resources Board shall be composed of seven members appointed by the city council and serving without pay. Members shall have demonstrated interest in and knowledge of history, architecture or historic preservation. One member shall be an owner/occupant of a category 1 or 2 historic structure, or of a structure in a historic district; three members shall be architects, landscape architects, building designers or other design professionals and at least one member shall possess academic education or practical experience in history or a related field. The Palo Alto Historic Association shall be given notice of vacancies on the board and shall be encouraged to have its members submit applications. (Ord. 5208 § 20, 2013) There are four open terms ending October 31, 2017 on the Historic Resources Board. The 5 Historic Resources Board applicants to be interviewed are as ·follows: 10 minute interviews Iqbal Serang Martin Bernstein (Incumbent) Michael Makinen (Incumbent) Margaret Wimmer (Incumbent) Roger Kohler (Incumbent) 7:40 p.m. 7:50 p.m. 8:00 p.m. 8:10 p.m. 8:20 p.m. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. The City Council is scheduled to vote to appoint candidates for the Architectural Review Board .and the Historic Resources Board on Monday, October 20, 2014. The City Council is scheduled to vote to appoint candidates for the Planning and Transportation Commission on Monday, October 27, 2014. ICOU.NCIL MEETING lfD/tYtctlf [>'Placed Before Meeting [ ] Received at Meeting CHY ©F ~1ALO Al,.Hl, CA ~l'fY CLERK'S OFFICE I~ OCT 22 PM I: 01 1 TO: HONORABLE CITY COUNCIL FROM: CITY CLERK DEPARTMENT: CITY CLERK DATE: OCTOBER 22, 2014 STAFF REPORT: 5155 SUBJECT: Interviews of Candidates for the Planning and Transportation Commission The attached memorandum supplements Agenda Item Number 1: Valerie Driscoll and Richard Schoelerman withdrew their applications to the Planning and Transportation Commission. Richard Schneble is traveling and will be interviewed via teleconference. In the event his plane is delayed and he cannot call in, he provided supplemental information for consideration. Attachment A: Revised interview schedule. Attachment B: Additional information from Richard • .th . ~) Donna Grider I City Clerk Contact the Clerk's Office to View Additional Attachments or Images Related to this Document Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without ffrsl obtainin_g the written permission of that indi\lidual." T)1e full code is attached. This consent form will not be redacted and will be attached to /he Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below. 0 I give permission for the City of Palo .Alto lo post to the City's website the attached Board and Commission Appncation Intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke, this permission at any time by providing written notice to the Palo Alto City Clerk. OR @ I request that the City of Palo Alto redac~ my home address, phone numbers, and eman, address from the attached Board and Commission Application prior to posting to the Cilis website. I am provldinEl the followihg alternate information and request that they use the following contact information instead. Address: 805 Sycamore Dr. Palo Alto, CA 94303 Cell Phone: 0Home 10office Phone: E-mail: ~~~~ September 22, 2014 Slgnature: ___ ...c~;.,,.,,,,,;~;;:=::;:=~....._~'""" ...... =-.:1:.-<..,...,~-=LX...;:a.._=<=-------Date:------ P~ge3 Archfteotural Revi1:1w Board ARB application – Catherine Ballantyne List relevant education, training, experience, certificates of training, licenses, or professional registration: BS, Material Science & Engineering, Cornell University MS, Electrical Engineering, Cornell University Executive MBA, sponsored by Allied Signal Real Estate Salesperson License, #01360055, State of California Landscape Design, Foothill College, Horticulture & Design Employment Present or Last Employer: Principal, Ecological Design Occupation: Landscape Design Describe your involvement in community activities, volunteer and civic organizations: I've been an active participant in the Palo Alto community on multiple fronts --- as a HAM radio operator CERT [Emergency responder], as a neighborhood community builder [co-host of my neighborhood's 4th of July celebrations], as a parent volunteer first within the Friends Nursery School community, and now within PAUSD where I will shortly have four children concurrently enrolled at elementary through high school levels. I am also involved as a cyclist delighted by safer passage ways through certain thoroughfares, as a classically trained musician participating as a parent coach for talented youth selected to participate in the Palo Alto Chamber orchestra community, and as a tech leader at a hot local start up [Medallia]. Since 2001, I have been continuously engaged as a landscape designer where I have crafted the street-scapes of a handful of residences within the Palo Alto and mid-Peninsula areas. Currently I serve on the leadership committee created to facilitate community dialog around the updates to the comprehensive plan. 1. What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? I am a fan of harmony. I am specifically interested in delving head first into the complexities of defining/evangelizing/achieving contextual harmony. Having lived in Palo Alto for the last two decades and watched how the community weathers cycles of change, I wonder if there isn’t a distinct shift occurring right now that may well become a tipping point for Palo Alto. As a design professional working in 3D on providing beauty over a 10+ year time horizon, I bring a distinctive perspective to build conversations. Although all five of the articulated responsibilities of the ARB appeal to me, I am keenly interested in the promotion of orderly and harmonious development of the city and in promoting high quality visual environments that are considerate of their context. ARB application – Catherine Ballantyne 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. As an advocate for contextual harmony, I cannot help but be attracted to the project at 385 Sherman Ave. near Sarah Wallis Park that came before the board in August. It illustrates well how perceptions regarding development trends coupled with ARB design review effectiveness have polarized the community. One only has to look to a few of the online comments to get a sense of the passion ignited by the complicated issue of context. That the ARB voted 3/2 to approve it, is further evidence that even given a couple design cycles, ARB architects still wrestled with it's scale/ramifications/contextual harmony. 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? Given that the goals already defined for the ARB are sufficiently lofty, I would suggest considering a few alternative methods of achieving them. Principal among those alternatives would be to consider how to help our community better understand the bounds within which the ARB operates. I wonder if much of the recent skewering of the ARB by the public it serves could have been somewhat mitigated if people knew more about the ARB as a tool for the CC. Repeated evangelizing, for example, of both the five responsibilities of the board and the contextual constraints [zoning/ceqa/psa, etc.] within which those five responsibilities must be executed, might help to better equip community conversations around development which, in turn, might yield more fruitful hearings. 4. Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the interviews. Provided in separate .ppt file 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. As a member of the leadership committee created by the city council to facilitate community dialog around the updates to the comprehensive plan, I am working my way through the Palo Alto Comprehensive Plan document. Although my experience with the zoning code is scant/dated, I have slogged through some portions of it in connection with a project in 2006. My exposure to both the El Camino Real Design Guidelines and the El Camino Real Master Plan Study documents is limited to that which I gleaned as an observer of the recent ARB meetings in which the build to line was discussed. Architectural Review Board Application Personal Information Name: Matthew Harris Address: 217 McKendry Drive Cell Phone: 650-690-6282 @Home t00ffice Phone: 650-325-4157 E-mail: Harris_architect@yahoo.com Are you a Palo Alto Resident?Qves@ No 6UY Gf PALO ALTO. CA errv CLERK ·s OFFICE 14SEP 15 AHH:f17 Do you have any relatives or members of your household who are employed by the City oJJ;.alo A.JR, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes(!) No Are you available and committed to complete the term applied for? ®vesONo California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Oves®No Excluding your principal residence, do you own real property in Palo Alto?()ves @No How did you Learn about the vacancy on the Architectural Review Board? [{]community Group 0Email from City Clerk 0Palo Alto Weekly 0Daily Post D City Website 0Flyer Other:------------------------------- List relevant education, training, experience, certificates of training, licenses, or professional registration: B.A. Art History, UCSC, M.Architecture, Univ. of Oregon; professional architectural practice experience 1994 -present; Owner of architectural design I engineering firm, 2010 -present; professional registration, CA licensed architect, #C33395 Employment Present or Last Employer: Sole proprietor, architecture firm, Matt Harris Architects, Menlo Park, CA Occupation: Architect Describe your involvement in community activities, volunteer and civic organizations: Active in re-organization of City of Palo Alto waste treatment facilities 2011 -present, Measure E ballot measure, participated as citizen activist, attended PA City council meetings regarding post-Measure E agenda items Page 1 Architectural Review Board 1. What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? Architectural design is an important component of quality-of-life in City of Palo Alto, and the stewardship of the same requires some amount of education and knowledge. I believe my experience of growing up in Palo Alto as well as my professional training and experience as an architect could be useful in serving the purposes and functions of the ARB. It is my understanding that the ARB should protect and help shape the architectural integrity of the city. I can do that. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. Review of 240 Hamilton Avenue / 615 Ramona Street proposed new project was of interest to me because it featured the ongoing debate about balancing traditionalist, historicist design themes with modernist design themes in the downtown area. I do support the sense that the emphasis of the Board should be on encouraging high-quality architectural design and promoting a fairly liberal environment for architectural expression and development without narrow interpretations. 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? I would support the Board in encouraging high-quality architectural design and promoting a fairly liberal environment for architectural expression and development without narrow interpretations of style or compliance with any historical period styles. The way to achieve this goal might be to seek continuous improvement practices and methods within the Board, that is, to work to improve the clarity of public communications about the Board's means and methods of review. 4. Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the interviews. 325 Lytton Avenue. Good example of balancing traditional architectural elements with modern office design. Examples of historical elements in this design include the contrasting colors in masonry exterior wall material, balanced against the modernist, hi-tech style of the glass canopy details at the cornice position. Overall effect achieved is good balance of architectural features from a fairly wide time period with regard to palette of materials and styles. 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK California Environmental Quality Act LINK Permit Streamline Act LINK Density Bonus Law LINK Secretary of the Interior's Standards LINK Comprehensive plans are required by CA State code as an aid to good government and regional planning. Familiar with State code which sets guidelines for municipal comprehensive plans. Page 2 Architectural Review Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: ® I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home 10office Phone: E-mail: 9/13/2014 Page 3 Architectural Review Board Architectural Review Board Application . Personal Information Name: Qiming Huang Address: @111'Y 0f. PALO ALT.&. 0A ~f'f Y €LERK'S OFP.1Ue-';, i~SEP 16 PH -6:25 Answers to narrative questions in full sized text attached to application Do you have any relatives or members of your household who are employed by the City o!-ealo AJt?., who are currently serving on the City Council, or who are Commissioners or Board Members? UYes(.!,l No Are you available and committed to complete the term applied for?@YesO No California state law requires appointed boar~ and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1 ) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Oves@No Excluding your principal residence, do you own real property In Palo Alto?()ves@No How did you Learn about the vacancy on the Architectural R_evlew Board? Ocommunity Group· [2]Email from City Clerk 0Palo Alto Weekly Doail~Post Deity Website 0 Flyer Other: _______________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: · I got my master deg<ee in Computer Science from University of TeKas at Austin. I have been working in high·lech companies for years, including Oracle and Cisco, as senior principal software product manager. I also volunteered In a non-profit organization, Sllcon Va•ey Wireless Technology Association, as a boardd director. · Recently, t buita few houses in Palo Alto. Through the building process, I read a big portion of the Palo Alto Municipal Code and learnt quit a lot of buUding knowledge. Now. I am helping my friends buading new houses or doing major remodels, providing them da&ign end malarial selection advice. I am also reading the Caifomia State License Board recommended documenls for building professionals. I may take some of the examines for varied state professional licenses. Employment Present or Last Employer: Asquare Occupation: Software Product Management Describe your involvement in community activities, volunteer and civic organizations: Besides my volunteer work for Silicon Valley Wireless Technology Association, I also volunteer for Silicon Valley Youth, which is an organization to encourage students to explore in science, technology, engineering and math. I organized a few visits of students to local IBM and Google offices. I am helping Terman Middle School Game Club to invite game industry experts to share game design, creation, operation and marketing knowledge with the Terman students. I have been helping a few Palo Alto City Council candidates reaching out to the votes and collecting votes' feedbacks and suggestions. Page 1 Architectural Review Board 1.What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? 2.Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. 3.If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? 4.Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, Vtaff may request that you bring hard copy print outs to the interviews. 5.Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK California Environmental Quality Act LINK Permit Streamline Act LINK Density Bonus Law LINK Secretary of the Interior’s Standards LINK Page 2 Architectural Review Board I am very interested in the design review and would like to share my opinions based on my building experience from a resident point of view. I found myself enjoying architectural design and interior design. I usually drive by Palo Alto streets and pay a lot of attention to the house style, color, material, height, and landscape in different neighborhoods. I like the design harmony and consistency on a street. I also think new residential house should be comfortable, elegant and built with latest materials and technology. I am a first-generation immigrant from Asia. I will bring culture diversity to the ARB, representing a large resident base working in high-tech industry with children going to local public school. I remember there was a case about the 'Grocery Outlet' signage on Alma street. It passed the ARB review, but a local resident organization brought up the issue to the city council. It is an issue about special case vs the common practice. Normally, a projecting sign should not exceed 12 feet. However, for a fast-driving street like Alma, people normally do not catch the signs along the sides. I never know there was a grocery store in the same location even though I drove by the location for hundreds of times. It makes sense that this case is considered in the special context and approved by the ARB. Here are some approaches that the ARB may try. 1. Offer tangible suggestions and guidance to the architects and property owners to meet the design requirements. Pointing out the problems is just the first step. With the ARB board members' experience through many building reviews, the ARB board may have a good solution for both the property owner and the neighborhood. For most of the issues found during the review, ARB may try to provide a potential solution. 2. Give certain flexibility for the architects and property owners to design the property. At the end of the day, the property will be occupied by the property owner. They have their special needs and preferences for their homes or commercial buildings. Those preference make each house/building unique and add a lot of personality to the neighborhood, especially in Palo Alto, the innovation center of the world. If the designs do not violate the city's codes and regulations, ARB may want to leave the final decision at the owner's discretion. 3. Review the design based on the code and regulations. Enforce strictly the zoning and building codes on all the designs. Provide feedback based on the city's municipal codes. This results in consistent execution on review process and fair judgement across all the projects. Give less consideration to other subjective opinions, which can be varied greatly from one person to another. 4197 Baker Avenue, Palo Alto, CA The home is a typical spanish style house. The design is clean and neat. The window is traditional spanish window, without unnecessary trims. The windows are quality wood clad ones with chestnut brown frame. All the doors have consistent spanish look with old-world-styled clavos and speak easy, in dark walnut color, matching the window frame color and making great contrast to the bright wall color. The bright ivory wall really light up the house and bring the spanish style out. The wall color goes very well with the dark red clay tiles on the roof. The balcony, covered porch, and the chimney all add layers to the design, avoiding flat and plain. The details, like the exterior lights, deco gable vents, and the deco tiles on the chimney bring elegant finishing to the house. The fence of black railing and short stucco wall create the sense of coherence and completeness. This is one of the references with aesthetic architecture and quality construction. I read some sections of the Palo Alto Comprehensive Plan when I purchased my home in Palo Alto. I read the majority of Zoning Code when I built my new houses. I read California Environment Quality Act and Density Bonus Law when I did research on Maybell Project last year. Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, “No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual.” The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City’s website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: Home / Office Phone: E-mail: Signature: ________________________________________________________ Date: _____________ Page 3 Architectural Review Board 3790 El Camino Real, #300, Palo Alto, CA 94306 408 667 8769 Qiming.Huang@gmail.com Architectural Review Board Application – Qiming Huang List relevant education, training, experience, certificates of training, licenses, or professional registration: I got my master degree in Computer Science from University of Texas at Austin. I have been working in high-tech companies for years, including Oracle and Cisco, as senior principal software product manager. I also volunteered in a non-profit organization, Silicon Valley Wireless Technology Association, as a board director. Recently, I built a few houses in Palo Alto. Through the building process, I read a big portion of the Palo Alto Municipal Code and learnt quit a lot of building knowledge. Now, I am helping my friends building new houses or doing major remodels, providing them design and material selection advice. I am also reading the California State License Board recommended documents for building professionals. I may take some of the examines for varied state professional licenses. Describe your involvement in community activities, volunteer and civic organizations: Besides my volunteer work for Silicon Valley Wireless Technology Association, I also volunteer for Silicon Valley Youth, which is an organization to encourage students to explore in science, technology, engineering and math. I organized a few visits of students to local IBM and Google offices. I am helping Terman Middle School Game Club to invite game industry experts to share game design, creation, operation and marketing knowledge with the Terman students. I have been helping a few Palo Alto City Council candidates reaching out to the votes and collecting votes' feedbacks and suggestions. 1. What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? I am very interested in the design review and would like to share my opinions based on my building experience from a resident point of view. I found myself enjoying architectural design and interior design. I usually drive by Palo Alto streets and pay a lot of attention to the house style, color, material, height, and landscape in different neighborhoods. I like the design harmony and consistency on a street. I also think new residential house should be comfortable, elegant and built with latest materials and technology. I am a first-generation immigrant from Asia. I will bring culture diversity to the ARB, representing a large resident base working in high-tech industry with children going to local public school. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: I remember there was a case about the 'Grocery Outlet' signage on Alma street. It passed the ARB review, but a local resident organization brought up the issue to the city council. It is an issue about special case vs the common practice. Normally, a projecting sign should not exceed 12 feet. However, for a fast-driving street like Alma, people normally do not catch the signs along the sides. I never know there was a grocery store in the same location even though I drove by the location for hundreds of times. It makes sense that this case is considered in the special context and approved by the ARB. 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? Here are some approaches that the ARB may try. 1. Offer tangible suggestions and guidance to the architects and property owners to meet the design requirements. Pointing out the problems is just the first step. With the ARB board members' experience through many building reviews, the ARB board may have a good solution for both the property owner and the neighborhood. For most of the issues found during the review, ARB may try to provide a potential solution. 2. Give certain flexibility for the architects and property owners to design the property. At the end of the day, the property will be occupied by the property owner. They have their special needs and preferences for their homes or commercial buildings. Those preference make each house/building unique and add a lot of personality to the neighborhood, especially in Palo Alto, the innovation center of the world. If the designs do not violate the city's codes and regulations, ARB may want to leave the final decision at the owner's discretion. 3. Review the design based on the code and regulations. Enforce strictly the zoning and building codes on all the designs. Provide feedback based on the city's municipal codes. This results in consistent execution on review process and fair judgment across all the projects. Give less consideration to other subjective opinions, which can be varied greatly from one person to another. 4. Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, �taff may request that you bring hard copy print outs to the interviews. 4197 Baker Avenue, Palo Alto, CA The home is a typical Spanish style house. The design is clean and neat. The window is traditional Spanish window, without unnecessary trims. The windows are quality wood clad ones with chestnut brown frame. All the doors have consistent Spanish look with old-world-styled clavos and speak easy, in dark walnut color, matching the window frame color and making great contrast to the bright wall color. The bright ivory wall really light up the house and bring the Spanish style out. The wall color goes very well with the dark red clay tiles on the roof. The balcony, covered porch, and the chimney all add layers to the design, avoiding flat and plain. The details, like the exterior lights, deco gable vents, and the deco tiles on the chimney bring elegant finishing to the house. The fence of black railing and short stucco wall create the sense of coherence and completeness. This is one of the references with aesthetic architecture and quality construction. 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. I read some sections of the Palo Alto Comprehensive Plan when I purchased my home in Palo Alto. I read the majority of Zoning Code when I built my new houses. I read California Environment Quality Act and Density Bonus Law when I did research on Maybell Project last year. @ITY ©f PALO 11.ue. CA (tt[f '( 0LERK'S OFPIS.E It. SEP 22 AH llJ 15 C l fY OF PALO ALTO Application to Serve on the Architectural Review Board Palo Alto welcomes volunteers and we appreciate that you are taking the time to apply. Completion of this application provides valuable information to the City Council. Please complete the application to the best of your abilities. If you have any questions or concerns please contact the City Clerk's Office. Authority of Board: The Architectural Review Board is charged with design review of some new construction, as well as changes and additions to commercial, industrial and multiple- family projects. The Board is responsible for: • Promoting orderly and harmonious development of the City, • Enhancing the desirability of residence or investment in the City, • Encouraging the attainment of the most desirable use of land and improvements, • Enhancing the desirability of living conditions upon the immediate site or in adjacent areas, • Promoting visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other. Please see Palo Alto Municipal Code Sections 2.16 and 2.21 , as well as Titles 16 and 18 for more detailed information. The Architectural Review Board is composed of five members who are not Council Members, officers, or employees of the City, at least three of whom shall be architects, landscape architects, building designers or other design professionals. Palo Alto residency is not required. Terms of Members will be for three years. The Architectural Review Board typically meets on the first and third Thursdays of each month at 8:30 am. In addition to regular meetings, Members may be asked to participate on at least one sub-committee which could hold additional meetings. Click here to receive email notifications of vacancies CLICK HERE. You are also welcome to contact the City Clerk's Office at 329-2571 or David.Camahan@cityofpaloalto.org. Personal Information Name: Address: Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?_ Yes»o Are you available and committed to complete the term applied for?~ Yes_ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe Is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for?_ Ye;< No Excluding your principal residence, do you own real property in Palo Alt~Yes _No How did you Learn about the vacancy on the Architectural Review Board? ,X-community Group __ ·-~Email from.City Clerk _ Palo Alto Weekly _Daily Post _ City Website _Flyer Other: _____________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: I ttt} ~ C-1'-l-1r~~1t>--l/i U~,?G-P P--~ rTftC::1 -~~ -re~-~ .. rf~'-" ~Gt~M 1..-1~!71f~f~Ht16c-"T ,, ~11,,---~~~/~>t!.-FG~t-~"(-tv1~1i;~ C?f~ 1.1JML11!£ cl LJR~ ft,,Ai'Jf\J'Gj ,, () lJ _ c:>"'f 1\111vH1~.PN/~N A~~-f../lA~ .~ P.. .J..H. 4 t.Jf{~l'J p~hl~ b . P-M K~N iJ... Al w~ N ,,, ~c.-H ~J..P ~ c::> t>-~4-f .. JJ :t4--j l.-6+J 'IJ ·1 I Employment Present or Last Employer: j4:N N ~ H H i.Jo ,. .J..RCH rr ~ Occupation: 6. r2.VH 11 i· ·, 1. What Is It about the Architectural Review Board that Is compatible with your experience and of specific interest to you, and why? h -~f7~t1jl.__t} 6f~~ L.b.t~rz.-~?.51J~J._/" µfi.,ev'fi~Gf ,,5~N1, 61~W IN6j ,?.U~ yz,@ 1}1G CA1i..t.-ev11v~ ~'i(fG1'<4GrNC¢.. f1'<!0 fe?*Jo,Jt)ouy .,.~~NG-l/ I t>'P p-~411-f~v·i>· j?~NG~/ r.~N ~V11f'N eN6j IN~f 1'-l/'l,1'it f./1~!:>/"fl~D,. VM~'"' V-17 p.~.JC1-1tr i;vru~ / 1?1--04 ·/-.i0JJ '"'t/ &e?ue:1'6 /tt-ts-.C+-t '~ ,, c;Al.o?'? vviAtJ rz.e 1?X ~9 i;:; ~")(pe~b.Jc.-~,, If ~ ~ ~Ht>-4.-l-i~ I o "'y..,. '>-. r? ~ M iJ ~ii l'1 (N p.. vJ IP c1 I tJ c aJ j;"f p~J!>. r--?y ~() tJ "'0 IN Gr. 2. Pie e describe an issue that rece tly came before the Board that Is of partlc lar Interest to you I and describe why you are Interested In It. If you have never been to a Board meeting you can view an archive here: LINK. _ p..ep· jrt~ t>rzc.tf /4'~1tJ~L---~~ 0oP.~ MGY!r?~7 VPL-IJN'f~~~N ·fJPlf~ 'fP if~ IN 111e ftu"'I 4 ~N'T~fL °'f'~l ~oV117iiJar &Flt--Ht:7N<=-::> ,.,. .. -1~e 17w1i..tv, 1~ t?iitGv11"'1 t711"<6C/flt'N f iiJ,,,,.1 ~NvrrVN'tvt~rl;rr'~/ vJ~ 5'-1-f~~ 14 I f'i MltJp ~ ·"'(, 711 lf1 viM f~~ 1JG716iN IN ' f-orz_ o t?~7t Gtr..f 1 "1 -w14}t "'.: CAJ v 1v~ tt-'1 ~'1H · i;f£11Z.. Si.1~ M ~T, 3. If appointed, what specific goals would you like to see the Architectural eview Board achie e, and why? How would you suggest accol:mlshing this? I . 1 d -r-11111 > ~Jt~?pec:-11'V"¢ ~r~rz-r1~e '"" ~R.0"'41,.. 61 h .7~i-1tJ6f /J'JNj;¢"1?~ I 1H¢ ~Cf+l1 Ge i.J~ rz..ev'l~ 1:-iive-~?~ -J ?Ht>-~ ~hl'ftt.i--1tt1t --f" P"N1~~"*.JV1ep f?tc...-171~1'1-ivt~KIN&f r?t1711Je~::::> M""~,,..., W M<>1tlR-11tJbf P~i,t.-t7~NlU1toN~ P..U~~ .r>-~~QP-C> rz~ & Pf' p.izG-i>.S . P.l7V17C'A~ ~ A ~t...e75 ~.51q ...J ! w vJ. '(I ;::rr'(i£-!! 4. Please identify a project or projects that you find o be examples of good architecture, an explain why. You may attach samples, identify project addresses, or provide links. If you attach ·-samples·,-staffmay-requesrtllaryou bring hard copy prlrit outs to tile Interviews.--· -· -~"c.p P.-te..t-1-i tr~ui<:6 cJ?V'fJ~?:? 1--.lrt~~ of~N e?? /56N7~ 1 7~ t?j f..I H J''f"' WG"t.-v&> MIN U:f t1 l17fLJ ~ I~ iJ 1---e 7 4H ~ P6~~s ?J f tU~tu-t?l 1k '91'-IP-I/ 0·1'rfP'17I1it?N~ &f pP rJ t> ~vH Ii f;Vfilf'4t: -r~l'67 r~~ t>'I e--o&iWl~vv r~~A., L-'(1"'10"1 f~~~/.6--NP N t~ % , tAN~D ·tl£ 71H~--oL.I 1HG c-11 ui~v Rl~f~. 5. Architectural Review Board M bers work with th documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. ~lo Alto Comprehensive Plan LINK ~K--- Vzoning Code LINK ~ V )I Camino Real Design Guidelines LINK · ~ VEI Camino Real Master Plan Study LINK and Appendices LINK ~ ~a Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK vCalifomla Environmental Quality Act LINK if~ ~mi! Streamline Act LINK 4L-- Density Bonus Law LINK ~ Secretary of the Interior's Standards LINK p~vc ~t? ~~ f~"fJ~7 P-C--clv1Ma.INJ:'( v-.J117&. o/rl~ ~-f ''~'11f"""'V/"f-l"f :'Giit·W~~~ ~~~ 1 ll'1N'0 V~t'f'W / -·· Page2 V' . I ~ Architectural Review Board t?~--~---l·'t Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that indivldual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: & i?t? .... ti' ~ 5-·-bt? 1 g Home I Office Phbne: E-inail: r ~ ;s..i...'fo P.j'l.t.ti 11"'167 Gt Mt>f 1.--, u-11 Signature /~ ·---· ~hl'-N -l?f rt Hi.Jo Date:~1 r . . . -· - /~ Architectural Review Board 01 ,-z..o _.rt Architectural Review Board Application Personal Information N. . Kyu Young Kim ame: Address: 1128 Oregon Avenue Cell Phone: 650-852•9747 @Home 10office Phone: 650-852-9747 E-mail: kyu@acsarchitects.com Are you a Palo Alto Resident?@Yes Q No GUY OF PALO ALTO. ClA CtTY CLERK'S OFflGE D. o .you have any .relatives or !11embers. of your household ~h~ are .employed .by the City oJ:.ealo ~.·. , who are currently serving on the City Counc1t, or who are Comm1ss1oners or Board Members? LJYes\!) No Are you available and committed to complete the term applied for? ®xesONo California state law requires appointed board and commission members to fife a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or . 3) be affected by decisions of the board or commission you are applying for? Oves@No Excluding your principal residence, do you own real property in Palo Alto? ()res @No How did you Learn about the vacancy on the Architectural Review Board? 0community Group Ooaily Post 0Email from City Clerk lv'ICity Website 12]Palo Alto Weekly 0Flyer . Previously applied, practicing design profressional in architecture. Other: ____________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: -American Institute of Architects Associate Member ~ Bachelor of Architecture degree from Cal Poly San Luis Obispo Employment Present or Last Employer: ACS Architects Occupation: A h' I D . I D fts re 1tectura es1gner ra man Describe your Involvement in community actMtles, volunteer and ciVic organizations: -A member of Palo Alto Forward -Children's Ministry teacher at New Community Baptist Church Page 1 Architectural Review Board 1. What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? I am a practicing design professional, living and working in Palo Alto. I have grown up in Palo Alto and plan to conitnue living here and contributing to Palo Alto's future. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. 636 Middlefield Road -I am involved with the project and gave the last presentation to the board Little League Cell Tower -... 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? Making meetings and hearings more efficient, bringing in a younger point of view. 4. Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the interviews. Los Gatos Library -organization, relationship to surroundings, materials, space Stanford Clark Center -relationship to people in-and-out of building Apple Store -Downtown & Stanford Mall, innovative details and materials, sustainable strategies 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK California Environmental Quality Act LINK Permit Streamline Act LINK Density Bonus Law LINK Secretary of the Interior's Standards LINK Page 2 Architectural Review Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part. "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: @ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: @Home 1QOffice Phone: E-mail: ~ 9/29/2014 Signature: ---ilh4~1!!!'.:tf::J~!!!!!l!!!!!-=~"T~~111111· ·,:____~·------------Date: _____ _ Page 3 Architectural Review Board Architectural Review Board Application Personal Information Name: Flore Schmidt Address: 1091 Tanland Drive 207 # 94303 Palo Alto Cell Phone: 0 Home 1®ottice Phone: 650 494 43 41 E-mail: schmidtflore@gmail.com Are you a Palo Alto Resident?@Ves Q No ©HY OF PALO ALTO. CA GITY CLERK'S OFFIC& I~ SEP 29 PH 5: 2' Do you have any relatives or members of your household who are employed by the City o!.falo A~.o,, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes\!) No Are you available and committed to complete the term applied for? Oves®No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Oves®No Excluding your principal residence, do you own real property in Palo Alto?()ves @No How did you Learn about the vacancy on the Architectural Review Board? Ocommunity Group 0Email from City Clerk 0Palo Alto Weekly 0Daily Post Deity Website (i]Flyer Other: ______________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: Full architecture degree, Paris-Versailles -France 1988 Graduate year in Rome La Sapienza University-Italy 1990 Cofonded and run 20 architects architecture firm in Paris area, France 1991-2013 Experience includes: Residentials & multi appartment buildings I education (3 high school - 2 middle school) I remodelling university campus in Orsay 11 Goverment (Civic Hall, library ... ) I sport facilities (stadium) I international experience I many competitions Not a California licensed architect Employment Present or Last Employer: Occupation: Moved to Silicon Valley 2014 /Currently works with Sunplanter INC a Solar building start up company, Palo Alto Describe your involvement in community activities, volunteer and civic organizations: Recently arrived in California. I am looking for involvement opportunities in subject I am deeply interested in. As Teenager I have consistently been engaged in Christian charity actions During the students years I have also given art classes (painting, drawing, sculpture & models) to 5-12 year children Page 1 Architectural Review Board 1. What is It about the Architectural Review Board that Is compatible with your experience and of specific interest to you, and why? For 20 years, I have been in France, on the other side of the table, submitting projects to building departments, boards & governments. Although the administrative organization is quite different, I have been wishing the French permit granting authorities were more open-minded, more professionally experienced and supported a higher vision. I also wished they better understood the designer's constraints and quest and there was a productive dialog between the designer and the authorities. I have been member of many architecture competition juries and I have been involved in several city planning projects from small to very large scale 2. Please describe an issue that recently came before the Board that Is of particular Interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. I have pleasure to hearfl debate goes on ! 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? I am very impressed by the level of the thinking I have seen at work here. I understand Palo Alto is headed to strong urban density which is something that occured in Europe decades ago. I have spent a large part of my professional life curing the failures of too fast or ill designed density all over France. I understand Palo Alto approaches is very smartly, with much reflection and inverting a genuine American way based on a series of great principles that drive American city planning. It must harmoniously develop the environment but still preserve every one's identity, freedom and potential to grow. I think it is a fascinating high level mission. How does city planning encourage "living together", "energy and ressource conservation" "meanningfull llfe", "efficient business", while make denser? 4. Please Identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the Interviews. Let me talk here about PA City Hall. I don't know if ii works well internally, but I feel ii provides PA downtown with remarquable qualities. Its volume make it stand apart like a government building should, ifs architectural design, the material employed gives a scale and style reference. Ifs a landmark. It's also manages to create a European style "piazza" which is both a focal point, a breath in the city, a harbour while its reveals the institution's importance, providing public parking too. I absolutely do not mean private buildings should be allowed what the City Hall is. I mean that architectural design, volume, layout, building implementation must be use to build a neighborhood quality, an order in the city, meaning and hierarchy. However for the future, I strongly believe buildings should be designed around the sun so they are positive energy solar powered, so they treat the sun light and allow quality inner spaces while reducing reducing the need for air confitionning and artificial lighting. To my European ayes, LEED Platinum is an easy target, I wish Palo Alto invents the next step. 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK California Environmental Quality Act LINK Permit Streamline Act LINK Density Bonus Law LINK Secretary of the Interior's Standards LINK I am familiar with the French equivalent of most of these documents however I have no specific experience with the cited links. Page2 Architectural Review Board .. Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home 10office Phone: E-mail: . ~ Signature:_~_·_1 ____ U_r--_____ oate: 09/29/2014 Page 3 Architectural Review Board Personal Information Name: Address: 1<. I c H.:Al~ ?c Hie £1-;::. 'RMA.N. ~74' Lc::>MA V£ROE. f,l.1-D AC-To I Cell Phone: ~5 O • S~ep -lbo ~ 3 ®Home 1@0ffice Phone: 'B1'M €. CITY 0F PALO ALTQ. CA cny CLERK'S OFFICE 14 SEP 29 PH 4: ' ' E-mail: t<.CCHAP.P@ "?CHoEi....6~1'ViA.N. ~(V) Are you a Palo Alto Resident?@Yes Q No Do you have any relatives or members of your household who are employed by the City o~.: alo A~. who are currently serving on the City Council, or who are Commissioners or Board Members? UYesQY No Are you available and committed to complete the term applied for? ®vesONo California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Oves~No Excluding your principal residence, do you own real property in Palo Alto? ©v es 0 No How did you Learn about the vacancy on the Architectural Review Board? Ocommunity Group 0Email from City Clerk 0Palo Alto Weekly Other: .Le 8 .U PfE,rg- 0DailyPost OcityWebsite 0Flyer List relevant education, training, experience, certificates of training, licenses, or professional registration: Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: Page 1 Architectural Review Board List relevant education, training, experience, certificates of training, licenses, or professional registration: • Licensed Real Estate Salesmen/ 2004 -present • Licensed California General Contractor / 1989 -present • Licensed Architect / 1983 -present o California / 1989 -present o Texas -1983 / Louisiana -1986 /Arizona -1986 /Arkansas -1986 / New Mexico -1986 / Florida -1986 / Colorado -2001 (pass licenses) o Licensed Texas Interior Designer -1994 (pass license) • Master Degree in Architecture, University of Texas at Arlington / 1982 • National Council Architectural Registration Board certification number 41623 Employment Present or Last Employer: Occupation: Independent Contractor -Coldwell Banker Realtor, Architect, General Contractor Describe your involvement in community activities, volunteer and civic organizations: • Palo Alto University Rotary Club I 2003 -present o President elect I 2014 -present o Club President for the coming term I 2015 -2016 o Community Service committee chair I 2010-2013 o Club Annual Fundraising Committee I 2011 -present o RotaCare Clinic Annual Fundraising Committee I 2011 -present • Deacon Menlo Park Presbyterian Church I 2005 -2008 • City of Palo Alto Community Development Block Grant Citizen Advisory Committee I 2007 -2008 • Safety Assessment Program Volunteer (SAPV) Disaster Service Worker (DSW) State of California Governor's Office of Emergency Services I 2005 -2008 • Rebuilding Together Peninsula Playhouse Donation I 2005 and 2007 • Realtor Service Volunteer Program (RSVP) 2004 (free home repair services for seniors and the homebound) • Tour de Menlo bicycle ride volunteer (sponsored by Menlo Park Rotary Club) 2004 • Palo Alto Chamber of Commerce I 2003 -2005 I 2013 -present o Business Association Public Policy Forum (BAPPF) committee member I 2013 -present • Rotary Club Denver Southeast I 2001 -2003 1. What is it about the Architectural Review Board that is compatible with your experience and of specific interest to you, and why? • Architect for over 30 years • Palo Alto realtor for the past 10 year • Developer of residential property in Palo Alto and Menlo Park • General Contractor who owned and operated an 80 employee commercial construction company with projects including public schools, universities, medical facilities, retail, office, juvenile detention facilities, daycare, banking, churches, etc. • Many commercial properties are nearing the end of their building life cycle. o Replace buildings with higher density and mixed uses o Build with better efficiencies o Consume less energy, not more (net zero) o Reduction of operating costs o CalGreen Code energy performance standards which use LEED and built it green standards. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. • Build to Line requirements o Urban Design addresses the character and quality of the built environment in relation to the human scale. o The understanding of walking distances and spatial perceptions at a human scale determines the most positive placement of buildings, o Buildings ranging in height from two to six stories, trees, and pedestrian scaled signs and street lights, textured pedestrian paths, and semi-private spaces all enhance this positive scale. o Alleviate the fortress like feeling of recent developments such as the Alma Village / Grocery Outlet at 3445 Alma. • Streetscape compatibility with site landscaping requirements. Unified urban forest. • Context based analysis to ensure new buildings do not overpower existing development and to fit into local and regional visions for vibrant boulevards 3. If appointed, what specific goals would you like to see the Architectural Review Board achieve, and why? How would you suggest accomplishing this? • As new developments are occurring on El Camino Boulevard there is a unique opportunity to redefine the existing streetscape in order to bring it closer in line with Comprehensive Plan polices and the Grand Boulevard Initiative. • Encourage tree lined streets in Midtown and South Palo Alto to create a harmonious streetscape throughout the city. • Encourage undergrounding power lines to create a pleasing streetscape and showcase Palo Alto as true Silicon Valley leader. • Remove some on street parking along University Ave in front of restaurants to create pleasing outdoor dining opportunities without encumbering the sidewalks which will also increase restaurant economic viability. 4. Please identify a project or projects that you find to be examples of good architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the interviews. • 245 Lytton Cornish and Carey, demonstrates balanced massing and scale. Not all the building is built up to the sidewalk. It provides human scale with a pedestrian friendly streetscape. • 400 Hamilton Wells Fargo Bank, utilizes the art of negative space and proportional massing to create human scale on the ground level and pleasing patios on upper levels. 5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. As a Realtor, Architect and General Contractor since 1982, I am well qualified to review and interpret the requested documents. Palo Alto Comprehensive Plan LINK Zoning Code LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK California Environmental Quality Act LINK Permit Streamline Act LINK Density Bonus Law LINK Secretary of the Interior's Standards LINK Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: ~ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home 100ffice Phone: E-mail: Signature~ Page 3 Architectural Review Board I Archite )ural Review Board Ar.11ication Personal Information Name """A~ {J'"~ I ~ S t ~:~::ne• rf W 04 K CA El«' [)I 'I/ 211-l'4 C# ,y>o 0Home10office Phone: 6P Jd t 0 r ' I E-mail: l ~A WO'-' e [A,,, •. ( • /14 Are you a Palo Alto Resident?.Yes Q o · . Do you have any relatives or members of your household who are employed by the City o}.ealo A~, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes-., No Are you available and committed to complete the term applied for? 9veseNo California state law requires appointed board and commissi~n m7Riiffirs to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you hav~ an invest~ent _in,. or do you serve as an officer or director of, a company doing busin:!5 in . 0 Palo Alto which you believe 1s likely to: ~ ~·.=! Col) .-<-< 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Oves@>No Excluding your principal residence, do you own real property in Palo Alto?Qves .No How did you Learn about the vacancy on the Architectural Review Board? Ocommunity Group 0 Daily Post 0 Email from City Clerk 0 City Website 0Palo Alto Weekly 0 Flyer f"l'1 (p -0 ~-n I'" w f'1'"l-0 0 :::o~ ::x:r- -u;o ::c C):,t> 'II ::5 (iii) ¢'>. en ljl1·~ Other: (M111Q c4l.Nj UN t/l(i It SfllfMC.. List relevant education, training, experience, certificates of training, licenses, or professional registration: 6Ullllll t•f'l DA'-T1'••1 H c•c14,f .,'4t, ,,,, f.t•Tl'I/~ l'ftt---t-01\. Employment Present or Last Employer: 'A ~1 /ff.II Ii 0 F A I• Occupation: cto/ (~~' .. ,. ,,.,,.,,*~L IJf ,,, .. ,f Describe your involvement in community activities, volunteer and civic organizations: · ,.,,, ~ 'Bl16 ("2''" -2"'f} {-AP PLl cAIJtJN :Lssue:-s 0AJ ~ .s£ o F CeM. f'UTEll-AccJE PTeJ) /&: or:=:cAV I Page 1 Cf/ :l. CJ I Ji ~ ~ Architectural Review Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 ·states, in part, "No state or local agency shall post the home address or telephone number q,f any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is ~ttacfied. Tnis consent form will not" be redacted arid will be attach~d to the Application and posted to the City's website. "' .. "' ~ • .:a • . .. The full code can be read here: l.INK Ir ....... Read the code, and check only ONE option below: 4 I give permission· for the city of Palo ·Alto to post to the Ctty"s website the attached Board and F' Commission Application~intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR ·~. 0 I request that the City of Palo Alto redact my home addres~. phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am . providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0Home 10office Phone:. E-mail: ' 1 ~ y/l." ~ Signature: _Ml_· -~-----------~111"=-----Date• 'f /Jtj /'I , .. ... ,,. .. ~· • . ·• Page 3 Architectural Review Board Carnahan, David From:mark weiss <earwopa@yahoo.com> Sent:Tuesday, September 30, 2014 9:15 AM To:Grider, Donna; Council, City; Shepherd, Nancy; Holman, Karen; Carnahan, David Subject:weiss applies to Architecture Review Board concurrent to Council bid Ghost-dogging and gehry’d ARB ap Posted on September 30, 2014by markweiss86 Hoover Tower by Michael Broadhurst, of Abilities United and Greensboro, N.C. In the film you and Gehry compare filmmaking with architecture. What similarities or differences in the two arts struck you the most? A: They’re both mosaic arts in that they’re comprised of many, many, many other art forms all put together like a big puzzle. When they’re successful, they have a pleasurable dreamlike element – the shape of a piece of sculpture, of a building, the way light hits it, the dream of a movie, the idea of a movie. But in order to achieve either you have to break it down into technical components, which are sort of mosaic in nature. In order to build the building you have to understand all kinds of physics. You have to figure out how to get people in and out of the building, how to get sewers in and where to put the loading docks, etc. If I want to make people moved or cry in a film, I figure out what the room looks like, what the people are wearing, what time of day it is, what the light is, how to photograph it, where to put the camera. It involves optics and costume design and set design and architecture. (Sydney Pollack on Frank Gehry and Dr. Milton Wexler) event 9/20/14 Lytton DESIGNED site specific by mark weiss for earthwise of paloalto I’m lampin’, I’m lampin’, I’m cold cold lampin’ Arrington et al 1. What is it about ARB that is compatible with your experience and of specific interest to you, and why? I design concerts, especially site-specific events like on Sept. 20, 2014, “!Taylor Ho!” featuring Taylor Ho Bynum and Ben Goldberg, free jazz concert at Lytton Plaza, when the music stopped Taylor and I biked from Lytton Plaza (he had started his day in San Francisco), to Bol Park and past Gunn High, towards Foothill where he proceeded on to Cowell Redwoods Park and eventually Los Angeles. I’ve produced more than 200 events here, most at Cubberley, and, based on that, submitted to Mandy Lowell et al a white paper on the value of Cub as a regional arts venue. I think the board would benefit from non-architect design values. In Pollock’s film about Gehry and his therapist Milton Wexler, the doctor noted that couples come to him to be happy while artists come to change the world 2. Please describe an issue that recently came before the Board …and describe why you are interested in it. I’ve spoken on about 10 projects in the last six months. Regarding the antennas at the Little League field I wrote, published and read into the record a prose poem about there being no “center field foul pole” which was not quite to the standards of Jack Hirschman or Lawrence Ferlinghetti, but borrows form it. I called it “chin music for corporate creep”:Old timers recall Art Kuehn bouncing a ball off the library, a long home run — he is our Babe Ruth. calling a shot Also, because my partner Terry Acebo Davis, the former two-term arts commissioner, once owned a house on Venice beach, which we checked on in July, I commented on a current downtown plan, the one designed by a psychologist but not Dr. Milton Wexler, and lauded it as “sorta Abbott-Kinney”. I knew slightly–ok, we met once, on the stairway, between the 5th and 6th floor of 77 Maiden Lane — Jay Chiat, the early champion of Frank Gehry — this is 1986 — and immediately sero- converted to Frank, and just this same July — we actually stayed Downtown LA at the old Universal Studios buildings — Pickford, Fairbanks — now called the Ace Hotel — with the JESUS SAVES neon intact — on Broadway but zipped out to Santa Monica Venice to see the Oldenburg binoculars at what is now Google La (goog lay lah) and made a little film there, similar to a film I made just last weekend walking from the new Anderson building thru the Richard Serra corten steel structure, to Cantor. We also, Terry and I, walked on the Disney concert Hall, exterior, a Gehry. Palo Alto needs, if not a Gehry, our version of such. We are more garish than Gehry. artwork by Stacey Carter, based on photo by Mark Weiss, NYC, summer 1988 I also own a print of the Oldenburg baseball bat; if you want to put one of those on Middlefield and pack that with senders and receivers, that I will support. 3. If appointed to ARB — but not seated by will of the people to Council November 4, 2014 — the specific goal I would like the ARB to achieve, and why and how I would suggest achieving, as part of process per se, an effect where, as Thoreau in 1849 and George Packer — Gunn 1978 — said in 2013, the leadership seems representative of and responsive to the people, and it’s not so much what color stucco or how much glass each new investment into our skyline and walking tour adds, but that there is a little of us in each brick, nail or plate so to speak, and, with due respect, to for example my Fremont Hills, Terman and Gunn schoolmate RP, there is at least a perception of lack. So maybe a sound and ambience slash negative space bricklayer would add a nuance to these proceedings and not just as a finish fetish. At the Tsuchianura Festival at Lucie Stern Sunday a lady named Nemet (but not unlike “Broadway Joe”) suggested we, like our Japanese Sisters, adopt a mascot; maybe we need a monster-mascot, to exorcise from these flippers and tear-downs and carpet-bagging opportunities, that which lurks herein. Maybe a zombie- ice-cream-cone fetish will make the monster homes seem more humane. 4. (long question, but opens doors, so to speak, to these visual aids) event DESIGNED by mark weiss for earthwise, lytton I like 250 Hamilton just fine, with or without the $4 mil facelift, Phil Ciralsky. (insert photo). I can also link to or reproduce in entirety here my previous draft of this posted as “Dancing About Architecture”. (I wrote two previous versions of this, from 4:20 to 5:25 while seated in lobby of 7th floor of 250, on my Apple laptop, but twice had the file deleted after answering the 4 questions above; David the clerk said “use Acrobat not Preview” and I admit I don’t know everything about this little doo-hicky — Terry did pay for, it was my 50th birthday — time at the “genius bar” but so far I have been faking it like an idiot savant, so maybe its just me. Number 5 I could not even get the thing to let me squeeze in a doomed bit of copy between all the links. I did suss out a bit on the previous links, thusly: Our forty six (46) not 80 zoning ordinances under Title 18 and our 38 not .62 building regulations, (i.e Title 16 et cetera) including the new ordinance about Public art and private development (which incidentally, I privately opposed, although I am somewhat known as proponent of the 1 percent in muni projects, and my partner is a former two-term arts commissioner). I likes me some Birge Clark. I think we should be charging Joe Bellomo for his bike racks on Civic Center MKL Plaza — it is not a park, it is a limited public forum. Can I say that here? This is my 59th post this month alone and my fourth attempt to be boarded. Two hundred fifty patters by “Christ” to 618 shields of reality by “King” David. Ten titles, or volumes, pulled somewhat hastily from my shelves, and then stacked neatly on a table at Peet’s about three hours and two posts ago: 1. Hiroshi Sugimoto & Jonathan Safran Foer, “Joe” about Richard Serra and Ando, in this case; 2. Art in America, June/July 2014 for article about architecture at Venice Bianalle, 3. Off The Wall!: A Guide to Greg Brown’s Murals in Palo Alto; 4 Trisha Brown, So That the Audience Does Not Know Whether I Have Stopped Dancing — if and only if it has the photo of her site specific piece of people waving flags from rooftops; 5. Scott Meacham, Dartmouth College: The Campus Guide; 6. Almanac Chapple-Mazinani-Thomas which I think is about recent grad students at Stanford, and something in a tower, ala Ann Hamilton tower at the art colony up in Petaluma I toured a whiles back; which reminds me to look for content I created or documented when John Barton had some cute young French exchange students talk in a compelling way about 27 University; and further about John Barton, who said, at the time, I could ring him> 7. Al’ America, by Jon Curiel, the former Chron writer and friend of a friend thru the dear Charlotte Gerstein (Dartmouth 1986, from West Hartford, CT, whose father made a film about the fact that Mark Twain deliberately made his house there face that of Harriet Beecher Stowe, to annoy here) the connect being that Barton and Carrassco here build a lovely mosque; 8. From Bauhaus to Our House by Tom Wolfe; 9. Fodor’s New York City from 1983 back in the good old days (and very avid Plastic Alto readers or close personal friends my recall that I spent February, 2001 that is in the final seven months of Western Civilization in New York, or Brooklyn for you sticklers and bums; and lastly a 10. Frank Lloyd Wright Field Guide Clayton, Running Press Cyclopedia, this fits in my pocket although I shlepped all ten, plus David Shields Realty Hunger and a Linda Ronstadt cd in a canvas bag from SXSW 2009; I regrettably sold off my Christopher “Christ” Alexander, “A Pattern Language” which I bought in 1988 because Rob Bagot had it, Rob a future Howard Gossage winner, compared to Dan Mountain the 1988 Howard Gossage winner, Dan and HISWIFE, who Terry and I saw in July, Clay Kershaw was on the mound and the tv, in Venice Beach, an Abbot Kinney kind of thing, you know. This is my way of announcing that beyond or technically before in some ways running Mark Weiss me that is for Palo Alto City Council — and again, since we are on topic, exactly 26 years after conceiving of an actualizing and presenting the 1988 Goose Gossage Award for copywriting-reading to Jeff Goodby– I am also concurrently little poMo and yes “pomp” (my computer is now ghost-writing this part, on auto-Pilot the pen) that I am applying for the appointable position or seat for Architecture Review Board. Not being an actual architect – although Matt H. Porteus and I, in Clay Leo’s 1978 HisGoBAM/APB History and Geography of the Bay Area Metropolis slash American Political Behavior did once design a lovely little piece of fiction, and fishin’ for that matter, Port Weissius, somewhere between Escondido and San Diego or in another dimension, an architect. But I have a good eye for music. More to comb. (Do I get bonus points, in some universe, parallel or on a different plane, for bridging, like the grandfather of a nice lady from Michigan in Old Palo Alto, Claytons Kershaw and Leo?) edita, ten minutes later: I also shot on my Moto Android a group of 11 photos of works on paper (and in one case tin) of architectural themed art works, that I hope color, shapes, supports and bulwarks (if that is a verb) this application, or essay, or exercise, from a private collection; a private collection {self-edited} and then addendumbed down. >>>sarsaparilla, and this is NOT a Palo Alto Buildings Inspector training film, unless we want to be SEIU’d: Occasionally, some of your visitors may see an advertisement here. Tell me more | Dismiss this message Related Frank Gehry Jazz Bakery Long interview with Jessica Yu, lifted in honor of 148th anniversary of Gettysburg Address Two points for Gehry and assorted dribblingIn "art" About markweiss86 Mark Weiss, founder of Plastic Alto blog, is a concert promoter and artist manager in Palo Alto, as Earthwise Productions, with background as journalist, advertising copywriter, book store returns desk, college radio producer, city council and commissions candidate, high school basketball player; he also sang in local choir, and fronts an Allen Ginsberg tribute Beat Hotel Rm 32 View all posts by markweiss86 → This entry was posted in art, Plato's Republic, sex and tagged arthur bert kuehn, birge clark, christopher alexander,flavor flav, frank gehry, sonny valario, stacey carter. Bookmark the permalink. Edit .~ • C!iY OF PALO ALTO Application to Serve on the Historic Resources Board CITY Of PALO AL:Ta CA CITY CLERK'S OFFICE I 4 SEP -4 AH ff.: 13 Palo Alto welcomes volunteers and we appreciate that you are taking the time to apply. Completion of this application provides valuable information to the City Council. Please complete the application to the best of your abilities. If you have any questions or concerns please contact the City Clerk's Office. The Historic Resources Board is responsible for: • Reviewing and making recommendations to the Architectural Review Board on proposed exterior changes of commercial and multiple-family buildings on the Historic Building Inventory; • Reviewing and making recommendations on exterior changes of significant (Categories 1 and 2) single-family residences on the Historic Building Inventory; • Researching and making recommendations to the City Council on proposed additions and on reclassifications of existing buildings on the Inventory; and • Performing other fu nctions as may be delegated from time to time to the Historic Resources Board by the City Council. Please see Palo Alto Municipal Code Sections 2.16, 2.27 and 16.49 for more detailed information. The Historic Resources Board is composed of seven members who are not Council Members, officers, or employees of the City. Members shall have demonstrated interest in and knowledge of history, architecture or historic preservation. One member shall be an owner/occupant of a category 1 or 2 historic structure, three members shall be architects, landscape architects, building designers or other design professionals and at least one member shall possess academic education or practical experience in history or a related field. Terms of Board Members will be for three years. The Historic Resources Board typically meets on the first and third Wednesdays of each month at 8:00 am. In addition to regular meetings, members may be asked to participate on at least one sub-committee which could hold additional meetings. Click here to receive email notifications of vacancies CLICK HERE. You are also welcome to contact the City Clerk's Office at 329-2571 or David.Carnahan@cityofpaloalto.org. THIS PAGE INTENTIONALLY LEFT BLANK FOR DUPLEX PRINTING Personal Information Name: Martin Bernstein Address: QHome 1@offlce Phone: E-mail: Are you a Palo Alto Resident?@YesQNo Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Oves@No Are you available and committed to complete the term applied for? ®ves 0 No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ()ves @No Excluding your principal residence, do you own real property in Palo Alto? Oves@No How did you Learn about the vacancy on the Historic Resources Board? §Community Group §Dally Post Email from City Clerk City Website Palo Alto Weekly Flyer Other: ______________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: Mr. Bernstein obtained his Bachelor of Architecture degree from California Polytechnic State University, San Luis Obispo. Martin has also lived in Italy, where he has studied the Italian and European traditions. He is well versed in styles ranging from historical to contemporary. Martin has been active in Bay Area home design since 1984, and is familiar with the unique character of various neighborhoods, as well as local building regulations. Employment Present or Last Employer: Martin Bernstein Architect Occupation: Architect Describe your involvement In community activities, volunteer and civic organizations: President, Los Altos Hills Historical Society, Los Altos Hills, CA. USA. and served as President, Palo Alto Stanford Heritage. Palo Alto, CA, USA. Martin's Architectural Travel Drawings have been exhibited in San Francisco, CA, USA and Santa Clara, CA, USA. He currently leads architectural walking tours in Pacific Heights, San Francisco, CA, USA and the Professorville National Historic District and Downtown Palo Alto, Palo Alto, CA. USA. Martin provides architectural freehand drawing instruction and cover art drawing services for Mills College Cottage Tours, Palo Alto, CA, USA. Chair Professorville Design Guidelines Committee. Page 1 Historic Resources Board 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? Membership on the HRB provides an opportunity to assist in educating the public about the cultural value of historic preservation. Being a fair judge when balancing the concerns of historic preservation with the needs of contemporary life-style needs is an important aspect of a Board Member. My practical experience includes restoring and remodeling 20 historic structures. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. A discussion that explored balancing the requirements of the Secretary of Interior Standards for Rehabilitation with the intentions of individual property owners. 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? I would like the Board to be an approachable resource that provides public education about historic preservation. A suggestion to accomplish this includes inviting school-age children to attend a HRB Public Hearing. 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to the interviews. Several homes in Professorville that conform with the Secretary of Interior Standards for Rehabilitation. 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan Land Use Element LINK Palo Alto Municipal Code Chapter 16.49 LINK Secretary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK California Environmental Quality Act LINK I have experience with all of these documents. Comprehensive Plan: I contributed comments to the City Council during the Plan's development. Municipal Code: I utilized the Code when analyzing proposed projects. SISR: I utilized the SISR when analyzing proposed projects. CEQA: I applied the CEQA when analyzing proposed projects. Page 2 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR ® I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: 250 Hamilton Avenue, Palo Alto CA 94301 Cell Phone: 650.324.9610 0Home t{!)Office Phone: E-mail: 04SEP2014 Page 3 Historic Resources Board Personal Information Name: f!.!:613/Z l<' Kolfz..-&1(. Address: 41--1} W/~}(,JE wA'f Cell Phone: (plJ!.1 ~.7/' &~;;Z> QHome t@Office Phone: ft?t?t? ~2.8 I o/J.(p ' E-mail: f" /< /{ t\ Y' c.h @-at>/, ~b h1 - Are you a Palo Alto Resident?®YesQNo UITY tJF PALO ALT~. CA CITY ©LERK'S OFFICE' Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? OvesfbNo Are you available and committed to complete the term applied for? .. es 0 No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; ~JllJ;Gtt ... /(L>/.1-Z.&"f!. Jl,~IA""I~ }r-'fh::;8-J"Tf?L-14 ' 2) provide products or services for City projects; or .M:>,vE 3) be affected by decisions of the board or commission you are applying for? eves QNo Excluding your principal residence, do you own real property in Palo Alto? 8'ves0No How did you Learn about the vacancy on the Historic Resources Board? §Community Group §Daily Post Email from City Clerk City Website Palo Alto Weekly Flyer other: IHtJfJ@az PF Jf-1212 '[1Jll-7-f? Y;;f'rfZ.Cj ' ' List relevant education, training, experience, certificates of training, licenses, or professional registration: . ~ ):JJ.bJ-rr1t;:£-T ~IC~l57 )fV CA-L JFCfZMA-1 ClZc-Z"TL>/V) AA~l} t ~ ,kf/ A12-61+11~t.-'T 1 -:t: RA-:V~ Jt~?/Z;zcr.J b/U ,%t,µl 7""1PL,E' f2,~Jlt /l/Ji=l -ft-JJ!J/1/PJJ 7 7b Jl!11b!ZI c 1ffeo~/llll.l?7 /IV f')fz,R A-CW )tJV!) /t/cJ6,f,f(}/:tltM£, &lt I tf 7 · Employment hnvl::71 /ij:: V-..,u., ~~~I~ )r}u::.-J(J~'7' Present or Last Employer: UV/Ye-iv l-f.V71 vvcv Occupation: ~JTe3CT . Describe your involvement in community activities, volunteer and civic organizations: ~ IF Htz_13 91 µ65 fo/lty /tf t/4-'r flf .lj( !Jt~'fO~ 7Pf{Efl-kl--!JOtl--QIAJft Pi?if'T U><4P/>y11 Ti?/£-27 ~ -C/L2?tr/)/Vq 1?Wt=l-DPY>1$VT C,.t;;:.(Vl-5-!Z... ~ !t-A;tl ~ P~~7-- µpJ;>; ..-/L~-rz.y ~ W& PJZ.Pr£<:~f2VIZ-LG C?'lU)'kr j Js!ri~sources~a~=r~ 1b Wi71t7£: IR 6Vlti-Jrve? t?ZXZ-P~?:ftVll-LE: ,... 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? -ffV0/!3/J Jli?>t:;fZJG---PA-JZ..»t ff'Pf,J~JY7 W/--rli.E A-I V!Vll/, ~~btV -oµ.6 op my J,)tf?P-y Fl~ p,ttNG-cr-> ;;v fl A-IN 1q1e JUk-& "JO A-ov '}.,JV!) /=uz Jb;;IJJ{/!7JV /0 Jflk/T J-r}!f",Mf/~J?PZo/ 7 llz;V¢; If/ 3/C( ktJlllf7t?/V · ltV f1!.!,w£347az-//I~ 2. Please ~escribe an issue that recently came before the Board that is of particular interest to you and de~cnbe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK. k/P /Z~Ui\rf~'-/ IAW!~c?O J11VOJrl~~ Tu-~ 1/lrfl,,-&JJ"/ ~T~., Tf:f!-? I-? PJlPEJJ:rf}J..,l.f Ir.¥ lrt-1(20 IJY'h~ k/p MV~ ~ fiT /7ikv? T/7P-ffel7 Vl<P-111y ·r~- 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve and why? How would you suggest accomplishing this? ' ~ll!Wlf ~ 4c?fri.-~ 1;v~<7J~ PV{jy1~JJW/A-JZ~ tr--JI) f3 l/7t Z..vG. tl{Z j{pt?P; ;v6t ffJJ4} p;;;;:-1iJ?t2-;!V67 /Jiqf,$Z l D f l/2.VC"rvt2--t7~ - 4. Please .identify a project or projects that you find to be examples of good historic architecture and explam why. You may attach samples, identify project addresses, or provide links. If ' you attach samples, staff may request that you bring hard copy print outs to the interviews . .--Affiw f1PJWJN6' gv,z.T A:/ZL51.>'ND RPUC!Z/ WAP6.t:.e>o1 -r1~/ ~1A!i12A'-'PA--2.b/2- f11PfJJr1eo PE?1~v 11-1 5v~a~7TGJJ Py ./1,JUO ;a~e~-;; - -fJJ/1-JiV lJ/#P.4RY fll?-71&/V r.t¢. 57f2.VCTV!Z14z.,, '?t>PPCIZ> ~?; WH~ Kt:rl?ciJ ;t-7 ~4>~ l.7'-f H1?-8 - 5. Hi~toric R~sources Board Members work with the documents listed below. If you have experience ~1th any of.these documents, please describe that experience. Experience with these documents 1s not required for selection. V Palo Alto Comprehensive Plan Land Use Element LINK V Palo Alto Municipal Code Chapter 16.49 LINK v v Se?r~tary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK California Environmental Quality Act LINK Page 2 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, ''No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: • I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: ~ftl --ei:J~/ 'V5/f~ QHome t@Office Phone: blJP ':f-Z,g /tJ~ E-mail: Page 3 Historic Resources Board Historic Resources Board Application Personal lnfonnation N Michael Makinen ame: Address: Cell Phone: ~,~ .z:-~ QHomeiliiiiiiiillOffice Phone: ~ -<-< -0 ~G'l E-mail ,..,, N ,..,-a Are you a Palo Alto Restdent?@v_-QNo N ~~ Do you have any relatives or members of your household who are employed by the City of Palo Alt~ho~:x> are currently serving an the City CGwncil; er who are Commissioners or &Gard Members? Oves@ic, ::tj~ Are you available and committed to complete the term applied for? @v es Q No ~ ~ n CalifOmla state law requires appointed board and commission members to file a detailed disclosure of )> their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or de you seFVe as an affieer or director of a eompany doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ()f es @No· Excluding your principal residence, do you own real property in Palo Alto? Oves®No How did you Learn about the vacancy on the Historic Resources Board? § Community Group §Daily Post ~~ail.from City Clerk City Website Palo Alto Weekly Flyer I currently serve on the HRB and I am the Vice Chairman. Other: ___________________________ _ U•t relevant education, training, experience, certificates of training, llcenses, or profetslonal f!tDlstratlon: My education includes a BSME and a MSME. I am currently a historic preservation consultant for NASA at Moffett Field. Prior to my retirement from NASA, I was the NASA Ames Historic Preservation Officer. I was responsible for all aspects of historic preservation, relating to Individual historic buildings, historic districts and historic landmarks. I worked with the California Office of Historic Preservation and the Advisory Council on Historic Preservation on actions at Moffett Field relating to all historic properties Including the airship hangars and historic districts. I have attended over 50 trajn!na sessions and seminars on hjstorjc nreseruatjpn Employment Present or Last Em 10 er: NASA, Ames Research Center, Moffett Field, CA """'"' ti. Hlstorrc Preservation Officer, Chief of Facilities Planning Office V\Nupa on: Desc;rlbe Y.OUI ll)voiumtnt 111.convn.uoitY ac.tivltlet, ~lta\teer 8.{td civic Ol1Ulnlzatlone: I pan1c1pate m the Restorauon AaVJsory Boara (HAts), a cmzens aav1sory group that reviews actions proposed by the US Navy for the environmental remldation of the former Naval Air Station property at Moffett Field. The RAB provides oritque of proposals and makes recommendations to the Navy regarding actions to eliminate environmental sontamination at Moffett Field . · · · · Page1 f'flstorte Res1:1ur<:E1s Board 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? Tfle Historic Resources Boaro deals with many of the same issues regarding the treatment of historic properties and historic districts that I have worked on at Moffet Fieldlo resolve. The Historic Resorces Board utilizes tne Secretary of tl"le Interior's Standards to address evaluations of proposed treatment and rehabilitation plans of historic properties in the same manner as my experience and interest in solving historic issues related to modification, adaptive reuse and rehabilitation of historic buildings and historic districts at Moffett Field. 2. Please describe an issue that recently came before the Board that Is of particular interest to you and describe why you are interested in It. If you have never been to a Board meeting you can view an archive here: LINK. A project that came before the HRB on December 5, 2012,was the so called "Arts & Innovation District" also known as 27 University Ave, (MacArthur Park), was of particular interest to me, This project was developed and matured before it came to the HRS for review in a study session, It was obvious from the first review that the project had not considered any impacts to the city owned historic resource (27 MacArthur Park). I expressed strong objections to the impacts that the project would have to a National Register listed property. 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and whY.? How would you suggest accomplishing this? I would like to see the citizens of Palo Alto become more aware of the value of historic preservation. This value is expressed in maintaining a high quality of life for our citizens and the enhancement of property values. One project that the HRB is currently working on is the Professorville design guidelines to better acquaint and guide home owners. The HRB also invites homeowners to seek advice from the Board on rehabilitaion planning of their properties. Educational outreach is a goal I would like to to see the HRB expand on. 4. Please Identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If _you attach samples, staff may request that you bring hard copy print outs to the Interviews. TheHRB reviewed the rehabilitation planning for 345 Forest Ave. (Lanning Chateau apartments) on June 5, 2013. The HRB was able to agree with the selected modification of the building that allowed for commercial use In the ground floor space while still preserving the historic character of the building. Additional windows and doors were designed and installed that were compatible with the historic character of the building. The successful application of the Secretary of the Interiors Standards allowed modern usage while still maintaining historic integrity. 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with then documents Is not required for selection. Palo Alto Comprehensive Plan Land Use Element LINK Palo Alto Municipal Code Chapter 16.49 LINK Secretary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK California Environmental Quality Act LINK As a long standing member of the HistOFic Resorces Board we worked with all of the above documents. The documents most frequently utilized are the Secretary of the Interiors Standards and the California Environmental Quality Act (CEQA). The HRB also references the Palo Alto Mun1c1pa1 Code for most of our reviews and the comprehensive Plan is sometimes referencea. Page2 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and wHI be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto red~ct my home address, phone numbers, ancf email address from the attached Board and. Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: <!/46 J 5'0.3 -9-9 2.6 QHome !@Office Phone: r!t-fo) 2-?3 -4'12..' J E-mail: (_ ~sn) .3 23 -4~t:JlJ /"1 I l<G' 4'12 G a /t'OL , Cd/f-1 Signature: _......_.;n......,_~ ........... ~ ........... /.-..... U>_. _,.-~--~--~------Date: l' /z; /1-1- Page3 Historic Resources Board ~ • ' Piease ·return to: . HISTORIC RESOURCES ~OARD SUPPLEMENTAL QUESTIONNAIRE (659) 329-2571 Office of the City Clerk 250 Hamilton A venue Palo Alto,.CA. 94301 Name ___ M....,i=·(~ ... ha""tl=-P .... ._,_.f:fa;;ki=' .... ne...,n ______ _ Please prix!t or type yow answers to the following qu~ti9ns and submit wilh your completed appiication. You may submit additional sheets, if necessat}', to complete yoilr answers. · . 1. Have you· aneoded any of the followfug meetings? a BoardJCommission Orientation Session Date_· ---------- • Historic Resour?Cs Board · ( MISHISc'"ll) x Date :1Jff2·~ ~ . IC> · ~llTG · 2. How did you leai:n about vacancy on the Historic Resour?es Board? Comi;nunity. Group-._ Newspaper Ad-.--Place of Employment __ Utility.Bill Stuffer __ . · City Clerk's Office ·-- .. , ) Other (specjfy) c l.llUU7v7LY JI/. 1"1EM<ft:~ OF r.#c /.f.RK (Vice~; Cl/If It~ .. il~8) 3. Are you an owner/occupant of an historic structu;re (Category l or 2), or of a structuie in an histori~ district? oui»6t OP 'If Cip7GC'-(),ey .3 /ltJi.J.5(7' ) I" . ' ) . . ) \ I ) · 4. Ar9 you an architect, landscape arChitect, building designer or other design prof essionan I am a mechanical engineer by education (MSME) and I have worked as a NASA engineer, manager and supervisor for many years. I taught (part time) ·ar~hitectural graphic·s at Baldwin Wallace College in Ohio for 20 years. I also have experience in renovation of historic properties. I currently serve as the NASA -Ames Historic Preservation Officer. As the chief historic preservation official at NASA -Ames, I am responsible for the NASA -Ames Resear.ch Center historic preservation program and negotiating historic preservation Issues (undertakings) with the .State Historic Preservation Officer (SHPO) on all matters relating to compliance with historic preservation laws. I have also been responsible.for developing urban planning concepts for the reconfiguration of existing property and land at Moffett Field. This property includes an airfield, golf course, 750 units of military family housing and various other US Navy buildings and land. This property was conveyed to NASA in ~994 as a result of the U.S. Navy Base R~duCtion action.· NASA is currently adaptively re-utilizingJhe historic properties at Moffett Field for Carnegie Mellon University's new.western campus. The California Air And Space Center wHI soon begin the conversion of the historic dirigible hangar # . 1 into an air and space museum. Another'new facility, the Computer History Museum, will soon be erected adjacent to the Moffett Field historic district property. I am re~ponsible for directing architects and planners working on these lssoes. I have also worked with traffic analysts and the Santa Clara Valley Transit Authority {VT A} on traffic planning issues related to Highway l01 ·interconnects tq Moffett Field {Moffett Blvd. and Ellis Street exits). Additional work with the VTA involved establishing the NASA alternate commute program. t have also managed anq coordinated contract urban planning and historic preservation work being performed by.EDAW Inc, OMJM Architects, Beyond Buildings Hi.storic Preservati9n Consultants,.Bay Area Economics Inc., Caltrop~ Associates, Page & Turnbull Preser.vation Architects and Architectural Resources Group (ARG). This work at Moffett Field has also involved coordination with the planning departments of the City of Mountain View and the City Of Sunnyvale on a frequent basis. I developed the NASA -Ames Research Center Historic Resources Protection Plan for the Shena11daoh Plaza Nation~! Historic District at Mo ff ell Field. This plan has been submitted to tlie SHPO and the Advisory Council on Historic Preservation. Prior to this work, I managed the development of a report known as the Cold War Era Survey <;>f buildings at Moffett Field for historical significance related to the cold war ~ra. · I-have recently.been involved in the creation of the Environmental Impact Statement of the NASA Ames Development Plan which includes work related to historic properties at Moffett Field. !1 .,. • • .. ... . ·-·~; . : California state law requires appointed board and commission.mciµber.s . to file a detailed disclosur~ of their ~ial 4iter~l$. DQ you.have an . .-, inves~ent in, or do. yo_u.serie u an o~r or 9i;rector of, .a comI)anw doing business in Palo Alto which you ~lieve is likely 1) to engage in busio.ess·wi~ tlie City;2) ttfprovide pr6dl!cts (jr services for'City-projects, or 3) be affected by decisions of the board ~r cominission you are applying . ,for? . If.yo~ answeted yes, you may wish to consult with thC. City Attorney . before filing tIW -appli<;ation. Please contact Ariel Cciloone at (650) "329-2171 to arian~e ~ appoin~ent. · Excluding your principal residence, do you own real property ill Palo Alto or with.in two miles of P~o Alto? lf you answere<! yes, you may wisll to co~Ul.t )Vith the City Attorney before filing this appli~tion. Please ·contact Ariel Calonne at ( 650) 329-~171 to arrange an' appointment. EMPLOYMENT ) .Ya· .. I \ ' . ' .. I ) • x. '."~):::;~~~·>~?:?'}:.: ,; . ' ':;,4\';<~ ·. ~ .,.~::· __ ... _.,. ..... ~· . ' Present or last employer · 1 .. 1orc~'!1Pani . NITS;:/-/1/l'!EJ l?e'MCH . CC/t'7c7f!. FHC/L.IT/li'.$ fl:t~> N/1..SJ:l F/ .O~atioo tVlifll lf/ST"ltlC:.pi;SIF.RWITI~~ . t;>FP:lt;.F~· .. l ) . .·. t). ··.•'· . ,. \ > ) ) 10. If appointed, what specific goals would you like to see the Historic Resources Board achieve? · Improving the Image of the Palo.Alto.Historic.Resources program with the community and developi.f"!g greater community support . . . ~ ;,. , . ... . : '\, ,; . ·.' .,_:.;,. '., 'l• /\ ~ Personal Information Name: .lcQ~kV ~ 's~~tJCr . Address: ·~f/ ~\\Jf-~£ 'fft .f,.\J't. ={f:307 cen Phone: b6D £ qot> /oSq 9J'Home /~Offife Ph,one: ~e,. ·E-mail: tAGqe~~\t\S@o.c,\, C-o~ Are you a Palo Alto Resident?~YesQNo CHY 6F PALO ALTO. CA CITY GLERK'S OFFICE . I~ SEP 22 PH 3: 85 Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Oves,ilNo Are you available and committed to complete the term applied for? ~es 0 No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Qv es St No Excluding your principal residence, do you own real property in Palo Alto? Oves®No How did you Learn about the vacancy on the Historic Resources Board? Ocommunity Group §Daily Post D Email from Cit. y Clerk City Website OPalo Alto Weekly Flyer t>E:N't~h .. S ~~Nl>. Other: A'IVJ....\ ~kf.JcJ;S l H~~\~ ( +\ \e-~ ~EY\~) List relevant education, training, experience, certificates of training, licenses, or professional registration: ~Of:-e~f,\O tJ~ ~~rtU.-T'&-t_AC£.f\j~-t,;4t= '2~534- "B . .-k, f\2-oH 0N\\J~\\L(' or G/\l..-\F. ~\C..e.LE.'-f ~AC\\v\ ~~ ~~t\\\e;c.,,-~~ t:"~t£>b~'TvL(' Employment Present or Last Employer: SC:-\..-~ ~t-\Pt..DL.(f:.D .,...T f, ~ • g, pe:S\~NS · Occupation: fq2C-H rr ~I Page 1 Historic Resources Board 1. What is it about the Historic Resources Board that is compatible with your experience and of SP!i!Cific interest to you, and why? \ ~\;\ *. 1'~kl,.,-~ \ C..-\ '\\) &> ~o ~~\,&\J~ -A-\2Utt''T~T Wf{&' ~\~\)€$ t~ ~~i~ .ft~S~D [2-\(., <5~vc;;fu~ · + ~~\Jt~iJ~s ~ fUi"~ ~~etJr, 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interes~ted in it. If you have never been to a Board meeting you can view an archive here: LINK. . __, . 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? Co~ltJ ue:: -ro SA..\J C:.. ~ ':f\2:~~\)e;.., i\l~T0 12-tLA L-~ue$T-f\NCL l~ ~T~t>C..10~&-f 4 ~Vlf!Of'JlMWT~ Sc> TtteY ~M.€=. ~et..~\JNJT 4 5TA4 "'UV~ 4 . {tJ USt +.S "11,-\\I E::. i-\ l~Te>p-"( IC i-ft\S ~\..{ AJ)HE:fa-1~ 'to ~ $f?F-~\t>S · +. ~\~~ \~T 1' ~w~ -BJ"f\\'--f L~ flsW A'<To , 4. Please identify a project or projects that you find to be examples of good historic architecture, and explain why. You may attach samples, identify project addresses, or provide links. If you attach samples, staff may request that you bring hard copy print outs to t~interviews. \ 12fbE:; ct..-k~ 130\ LD\t-ttos) , I e, (j) f'f2.-Eb\ t>~' ~ \-\tf(l::L-. ~rs . K~\~ 'Pvs.,-off\& @ VA~S\-t°i Ttl~)Xti2-{j) HAltJ U~~\2-Y lt>t)O fo~\ "-.J & · 12-f;S\t>W~ 6!lC-T0\2-l~ 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan Land Use Element LINK f==A't'\ \ v\~~ \A.) 1'1'.\-\ \\ ~~U.V Palo Alto Municipal Code Chapter 16.49 LINK ~\-\ \iU~~ 4f \>S~ ~R \>t2ef-€:SS \e t0 Secretary of the Interiors Standards for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings LINK 17kt-\\Uk{2. ~ ~\_,., r\ \S T~ ~~ ~~.-.\\\S\e~(C. California Environmental Quality Act LINK *='--u 1 , L 4 ~~~K{'tt'JN • - ' f'T' \ '-"~{?--~ ~ IT l S \/~ '{ ll-\O~f.'\AN'T f.::>1.--\C-i ·0oc, +~~ ~· ~ue,uc_· t ~'f~toN'M--S nJ :D\t<ecnotJ t &l>~T~~ or "b~~l,o-Pt-\~T' Page 2 Historic Resources Board Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: ~ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: QHome tQOffice Phone: E-mail: Page 3 Historic Resources Board Historic, kesources Board Appl ..... '>ation Personal Information CITY eJF PALO ALTO. CA CITY CLERK'S OFFICE Name: Margaret Wimmer Address: PO Box 60681 Palo Alto. CA 94306 CeUPhone:650-646-1610 ()HomeBE)OflicePhon~ E-mait mmwimmer@yahoo.com Are you a Palo Alto Resident?®vesQNo 14 SEP 22 PH 3: '43 Do you have any relatives or members of your household who are emproyed by the City of Paro Alto. who are currently smving on the City Council, or who are Commissioners or Board Members? Oves®No Are you available and committed to complete the term applied for? ®res 0 No California slate raw requires appointed board and commission members to fife a detailed disclcsure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an offieer or director of a company doing business in Paro Alto which you believe is likely to: 1) engage in business with the City;; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Qves @No Excl'uding your principal residence, do you own real proj,erty in Palo Alto? Oves®No How did you Learn about the vacancy on the Historic Resources Board? §Community Group §Daily Post Email from City Clerk City Website Paro Alto Weekly Flyer Other: I am currently serving on the Board List relevant education, training, experience, certificates of training, licenses, or professional registration: I have a Bachelors Degree from the College of Architecture and Environmental Design from Arizona State University. Employment Present or Last Employer: I am Self Employed Occupation: Residentfsl Designer Describe your involvement in community activities, volunteer and civic organizations: I am currently a board member of the HRB. Page 1 Historic Resources Board ) ) 1. What is it about the Historic Resources Board that is compatible with your experience and of specific interest to you, and why? I have done work on local historic residences and have presented to the board in the past. I have a special interest in historic architectural design. 2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it. If you have never been to a Board meeting you can view an archive here: LINK I think the whole process is interesting and educational. 3. If appointed, what specific goals would you like to see the Historic Resources Board achieve, and why? How would you suggest accomplishing this? I think greater community awareness of the board and the boards purpose would be a great goal to have. 4. Please identify a project or projects that you find to be examples of good historic architecture, and exprain why. You may attach samples. identify project addresses,, or provide links. If you attach samples. staff may request that you bring hard copy print outs to the interviews. I think most of the historic residences in ProfessorviHe that have come before the board have been great examples of projects that are maintianing historic character while trying to acomodate modem lifestyles. building codes and technology. 5. Historic Resources Board Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Paro Alto Comprehensive Pfan Land Use Bement LINK Paro Alto Municipal Code Chapter 16.49 LINK Secretary of the Interiors Standards for Preserving. Rehabilitating. Restoring, and Reconstruciing Historic Buifdings LINK California Environmental Quallly Act LINK I have experience with CEOA. and the Secretary of the Interiors Standards mostly with my work with the board. I have experience with the PAMC thru my work as a residential design professional. Page2 Historic Resources Board .. ) Consent to Publish Personal Information on the City of Palo Alto Website California Government Cod.'e Section 6254211 states, in part, vNo state or focal agency shall post the home address or tefephone number of any erected or appointed official on the Internet without first obtaining 111te written permission of that individuae The full code is attached. This consent fomr will not be redacted and will be attached to the Application and posted to the City"s website. The full code can be read lltere: LINK Read the code, and check onl'y ONE option below: ® I give permission for the City of Paro Alto to post to the City's website the attached Board and Commission Apprication intact I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alb City Clerk. OR 0 I request that the City of Pa!o Alto redact my home address, phone numbers, and email address from the atra.dtedl Board and CommiSsi.cn Appticaticn prior to posting to lhe City''s websile. I am providing the fotrowing alternate information and request that they use the following contact Information instead .. Address: Cell Phone: QHome 1Qomce Phone: E-mail: Signature:__,_kJ_..____· -----~--· ..___,_V6<\\_______,_ __ Date 1/ 'to( ]/0/4- Page3 Historic Resources Board Planning and Transportation Commission Application Personal lnfOnnation Name: Yekaterina Vershov Downing Address: 450 Pepper Ave Cell Phone: 650-575-9843 QHome 1Qomce Phone: E~mail:k~te.vershoy@gmaH.com Are you a Palo Alto Resident? @ves 0"11o OITY ©F PALO ALlO, Q~ (ilTY BLERK'S Of1:FIOE 14 SEP 22 AH 10: \ ! Do you have any relatives or members ofyqur househqld.who are employed by the. City oj.Ralo ~.''who are currently serving orl the City Council, or who are Commissioners or Board Members? l)Yes \!}No Are you available and committed to oomplete the.term applied for?. ®vesO No Callfpmia state law requires appointed board and. cornmission mem.tiers to .file a detai.led disclosure of their fjnancial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investrl'lent in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the. City; 2) provide products or services for City projects; or 3) be affected by decisions of the.board or commission you are applying for? ()Yes® No Excluding your principal residence, do you own real property in Palo Alto? Oves@)No How did you Learn about the vacancy on the Plan!'ing and Transportation Commission? OcorJimunity Group OoailyPost 0Em~il fr()m City Clerk Deity Website 0Pa!o Alto Weekly 0Flyer . Other: Eric .Rosenblum List rel,vant education, training, experience, certiflcate.s of training, licenses, or professional registrati~n: .. Georgetown University, Bachelor of Science in Business Administration (finance major) Columbia University, Juris Doctor Member ofthe California Bar Employment Present or Last Employer: VMware, Inc. Occupation: Products and technology attorney Describe your involvement In community activities, volunteer and civic organizations: Pro :'Bono voluntee.r for the Housing Negotiation Project, representing families facing evictipn. . Volunle.er for Northern California Farnily De>g Rescue. Co'."founderof Palo Alto ForWard, a non-profit dedicated to better housing and transportation options;in Palo Alto. Page 1 Planning & Transportation Commission 1. What is It about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? I have developed a deep interest in the details of city planning and have spent a lot of time getting up to speed on key documents. I believe that I can offer the City Council timely, concise, easy to parse recommendations based on rigorous analytical assessments that leverage my analytical, detail-oriented, and fiscally-focused skills. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested In it. If you have never been to a Commission meeting you can view an archive here: LINK. I'm interested in the future of the RPP program. It's the sort of solution that we need to try before we move onto solutions with much larger capital expenditures. It may not be a solution for all causes of parking shortage and it may not be city-wide, but together with other solutions like TOM and ride-sharing apps, it can be part of a winning toolkit. 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? I'd like to assist the PTC in successfully updating the Comprehensive Plan, including appropriately framing the options the EIR should explore to make sure they reflect the gamut of options posited by the community. I would also like to work on refining the Housing Element to make sure that additional units required by ABAG/RHNA are located near transit, thereby minimizing attendant traffic and parking issues. 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK As an attorney, I'm well versed in reading and interpreting very dense, technical documents. When I became interested in local planning, I read through most of the Comprehensive Plan, and like Pat Burt recently underscored, was surprised to find it focused on "directing growth to appropriate locations within the urban area, particularly along transit corridors and near employment centers," given the current tenor of the community. I've also looked through the El Camino Real Design Guidelines and read through the El Camino Real Master Plan. I live just a few houses down from El Camino, so its development and improvement is of prime importance to me. The vision for El Camino is especially poignant because it is one of most underutilized corridors in our community, with great potential for something that resembles more of a beautiful Parisian boulevard with outdoor cafes, shops, and people strolling about, than the unwalkable and unwelcoming current reality. Page2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: @ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: Q Home IQ Office Phone: E-mail: ,---- Signature:~/ Date: 9/21/14 Page 3 Planning & Transportation Commission Planning and Transportation C0:mmission Application .Pe:rSonaJ·JnformatJon Name: Cl~ug~ Ezran AcJ'°'ress! 71:fi Se.al~ Avenue; PaloAlt~» QA:Q430$ ¢~ll Plio11~: Qt).0-248'-!)706 ®Ht>m¢.J 0PfflP~Phon~;6oQ~324..2040 &rn~jl; ctaude@ezran.com Areyou·~ f!atoAlto'Resitten~?@Y'50tio CITY QlF PALO ALTO. Cl\ c:t'fY CLERK'S 0Ff'ICE 14 SEP 19 PH 4: $I Do yoyb~ve,any relatl:I~~ ormembel'$ ofyo4r qous~hotdwho ;;are employ~~ !)y theClfy ot.faJbcAltQ.1 who are:eurrently ,.erving.on the CityCounctl,orwho are-CommissionersorSoetrd Members? V¥es'~No Are you available and committed to·oomplete the·term'applJed·for? @ves()No ·catifOmla State: Jaw tequtres appofntett beard and commission members to·fiJe a detailed dls:closure of their t111~MJaUotete$!$1 Fair P~Jitlci:ll PractiC,e$ Ooromisiit!:>n, confli~ oflntete$t {Form 1001. po yotttt~v~ ~rt 1nv~~r11eot 111, or Clo y.ou seNe ~~$ an Qffi~t9rdirector of, i:t company <toirtg J>~s111.e.s$ in Pa!Q AK9 WhlQftYQu b.en~ve;ts llkely~o~ 1)~ogaga'ih 04sinesswifh the city: 2) provide products or services .for City pro}ects; or 3) be affected by declslons ofthe. board or oommisslon you are applying for? ()Yes ®No Excludibg yourprtneipal residence, do you ownteal prqperty in Palo Alto? Oves@No How. did you Leam about the vacancy on the Planning and Transportation Oommission? Ocomtriunity Group Qoa11y Post li]em. autro·m· .c.·ityCterk OcttyWeb$tte 0Pflf0 AltoW~Kly 0Flyer Other:. ________ __......,.-. ___________________ _ l.fttt ttilevar1t t";d\ic;ati~n. tn:Jtnlng, experienc~. certiflcateS of tralrUng, licenses, ()r professional regtst@tion: -MB.A,.Harvard Business.School -MSEE, Eoole:Superieure .d'Electricite (France) -B.S1 Ady,aooed Math & Phys,ics, Lycee LOY.is Le .Grand (France) Employment Pre$entor Last.Employer: Lab:orVoices, Inc; Also worked for Intel, Xerox, 3Com, A<Jobe~ Qooupat1on:Viee.President of Marteting Describe your Involvement ln'Community ·aclivltlas~ volunteer and cMc organizations: -Human Relations Commission, including.vice..chairand chair: 2008-2014 -Found~r, Palo AltQ Wort(! Music Pa1y; 2t>Oa-.Pr~se:nt •Member oHhe Ek>ard,of Directors, Palo Alto. Recreation Foundation (PARF).2010"'.Present -M~mb~r of.$t$ering Committee for Measure A ($ChoQl par~~ttax): 200$ · .. Treasurer .C)ftne PtA council: :2004,;;2001 -Member of .the $oard Qf Oirectora, Cabl~ Co-op: 19Q2-1998 P~e,1 Pl!!nn!ng& .T.rllnsPOl'.t!!Uon Comm~$lon 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? I have a passion for public service and would like to continue to serve my community. While on the HRC for six years, I was exposed to many of the P& T Commission's critical issues. Furthermore, I supervised the design and building of my current home from 2009 to 2011 and had to frequently interact with the Development Center. Based on my experience, I presented a series of recommendation to Curtis Williams, just as he was starting to improve the process. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. The Palo Alto Shuttle Program is of interest to me. On the HRC I saw how transportation is a major issue for seniors, youth, and low-income individuals. I am also interested in improving public transportation and bicycling opportunities to reduce traffic and improve the parking situation. 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? I would like the Commission to continue to assist the City Council in improving the traffic and parking situations. Some things to look at: Transportation Demand Management, more bike-sharing stations, counting of available spaces in garages coupled with electronic signs. Other objectives: improve the PC zoning process (evaluate better the real benefits to the developers and to the community), and continue to focus on improving customer satisfaction at the Development Center (e.g. customer surveys). 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK As part of my duties as a Human Relations Commissioner, I reviewed several chapters of the Comprehensive Plan: Transportation, Housing Element and Community Services. I sent many detailed comments to Staff regarding these chapters. Over the years, I also participated in many community meetings organized by the City's Planning Department, including several of the Our Palo Alto community meetings. I am familiar with several of the Zoning Code designations, but not in detail. I have heard about CEQA many times, but I am not an expert. Furthermore, I participated in the Community Workshop for the Palo Alto Rail Corridor Study, in March 2012. Page 2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: (!) I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: QHome tQ Office Phone: E-mail: Signature:----~---'-+->,....._,_.....,_'/_/_~_/ ___________ Date: 9/19/14 Page 3 Planning & Transportation Commission Planning and Transportation Commission Application Personal Information Name: Adrian Fine Address: 2002 Columbia St, Palo Alto, CA 94306 Cell Phone: 650-468-6331 @Home I Oottice Phone: E-mail: adrianfine@gmail.com Are you a Palo Alto Resident?@Yes QNo . : ! GHY ©f PALO ALTO. CA GITY CLERK'S Oflf'WE 14 SEP 22 PH 4:J • Do you have any relatives or members of your household who are employed by the City o~alo AJ!Q, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes ~No Are you available and committed to complete the term applied for?@YesONo California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ()yes @No Excluding your principal residence, do you own real property in Palo Alto? Oves@No How did you Learn about the vacancy on the Planning and Transportation Commission? §Community Group 0Daily Post Email from City Clerk (2]city Website Palo Alto Weekly 0Flyer Other: ________________________ ~----- List relevant education, training, experience, certificates of training, licenses, or professional registration: University of Washington 2008 -BA Geography Honors, Cum Laude University of Pennsylvania 2012 -MA City & Regional Planning, Cum Laude; Graduate Teaching Assistant for Planning Department Metropolitan Transportation Commission 2007-2010 -Intern+ Program Coordinator City of Philadelphia 2012-2013 -Planning Intern Employment Present or Last Employer: Nextdoor, Inc. Occupation: City Operations -www.nextdoor.com/city Describe your involvement in community activities, volunteer and civic organizations: My passion is building mutually beneficial partnerships between stakeholders including the public, interest groups, government agencies, and private parties. I have helped communities in the US and abroad achieve consensus -or at least define their differences-through design studios, planning workshops, GIS analysis, and civic outreach for underserved communities. Currently, I have the opportunity to connect public agencies across the US with their residents through the Nextdoor City Program (www.nextdoor.com/city), of which Palo Alto is a member. Page 1 Planning & Transportation Commission 1.What is it about the Planning and Transportation Commission that is compatible with yourexperience and of specific interest to you, and why? 2.Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. 3.If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? 4.Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK Page 2 Planning & Transportation Commission I am a lifelong Palo Altan interested in smart planning, economic development, and public service. I enjoy the technical aspects of planning and transportation, but I also recognize that these issues are contextual - you have to talk with the public, business owners, and the development community. Even though I'm not yet 30, my background in planning is diverse, and I thoroughly enjoy this type of work. I would be proud to help Palo Alto move forward. The Mayfield Agreement and housing project is a complex public private project that has shown the best and worst of planning and engagement in Palo Alto. While the agreement identified a laudable set of goals and stipulations, many Palo Altans felt blindsided or ignored. There is a healthy middle ground, but Palo Alto, Stanford, and the community have yet to find it. The commission has an opportunity to increase visibility into the planning process for the public, developers, and other partners. The perception of an opaque planning process is driving dissatisfaction and causing the City as a whole to miss out on genuine opportunities. Through a mix of streamlined decision-making, information sharing, and meaningful engagement, the commission could turn this perception around. The community needs to understand that planning is a partnership for shared growth. Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part. "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: @ l give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0 Home I 0 Office Phone: E-mail: Signature: , Adrian Fir:ie ~ ~Date: 9122114 Page 3 Planning & Transportation Commission Personal Information Name: Arthur M. Keller, Ph.D. E-mail: Are you a Palo Alto Resident? @Yes QNo CITY @F PALO A~TO. GA E:ITY eLERK'S OFFICE 14 SEP -9 AH IQ: 05 Do you have any relatives or members of your household who are employed by the City o~alo AJtQ., who are currently serving on the City Council, or who are Commissioners or Board Members? UYes \!)No Are you available and committed to complete the term applied for? @vesONo California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? ()yes ®No Excluding your principal residence, do you own real property in Palo Alto? Qves@No How did you Learn about the vacancy on the Planning and Transportation Commission? Ocommunity Group 0Daily Post [{]Email from City Clerk Deity Website 0Palo Alto Weekly 0Flyer Other: ____________________________ _ List relevant education, training, experience, certificates of training, license~, or professional registration: Ph .D., Computer Science, Stanford University, 1985; Lecturer and Researcher, UC Santa Cruz, 2001-present; Senior Research Scientist, Stanford University, 1987-1999; Co-Founder, Board Member, and CFO, Mergent Systems, PSYCHeANAL YTICS, Active Ion Displays; Chief Technical Advisor and Board Member, Persistence Software. Employment Present or Last Employer: Minerva Consulting Occupation: Co~sultant Describe your involvement in community activities, volunteer and civic organizations: Served on Planning and Transportation Commission for the City of Palo Alto since August 2006; Founder of Adobe Meadow Neighborhood Association, 2005; Gunn PTSA Public Transit Coordinator since 2008; Gunn High School Facilities Steering Committee, Standards Coordinator, IEEE Voting Systems Standards Committee; Site Council, Ohlone Elementary School; Board Member, Girls Middle School in Mountain View, Cong. Kol Emeth, Electric Auto Assoc.; member, City of Palo Alto's Website Advisory Cmte. Page 1 Planning & Transportation Coomission 1. What Is it about the Planning and Transportation Commission that is compatible with your experience and of specific Interest to you, and why? As a data scientist, I am interested In how to apply data about Palo Alto to make better decisions about Palo Alto's future. For example. I identified the need for smaller housing units (studio and 1 bedroom) providing housing for seniors and young professionals, based on housing stock mix and demographic need. I've also done analysis of the Census Transpartation Planning Package to observe that transit use among Palo Alto residents is so low that the concept of transit-oriented housing Is better supplanted by housing near services, where transit Is Just another service along with shopping and other amenities. Indeed, the number of Palo Altans taking any form of transit to work is exceeded by each of the number of those who work at home, bicycle, carpool, or walk. And nearly as many Palo Alto wo11<ers walk or bike to work than take all forms of transit combined. So clearly we should do more to promote biking and walking in general, and facilitate commuting by public transit by those who work in Palo Alto and live elsewhere. 2. Please describe an issue that recently came before the· commission that Is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. Planned Community zone regulations have been before the Commission repeatedly. My suggestions for reform include having the PTC make formal recommendations upon initiation that are tracked through the process, saying "n.o" early to undesirable projects like those that overwhelm the surrounding community., quantifying public benefits and the benefit to the developer so that they are commensurcite, but not "upzoning for sale." Palo Alto also needs to enforce that the public benefits are actually ·provided, whlch·can be more difficult when the development is no longer owned by the original developer, such as 800 High St 3. If appointed, what speclflc goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? The current Comprehensive Plan was written in the last millennium and has served us well. But economics and development pressures have changed since 1998. Section 19.04.010 gives the planning commlssio.n the "primary duty to prepare, adopt and recommend to the city council for their adoption, a long-range comprehensive general plan .... " Further, Section 19.04.030 states that the "planning commission shall annually review the general plan ... : I would like to see the PTC work with the Council, staff, and consultants to complete the Comprehensive Plan update process to extend its life until 2030, and then have a formal review process to proactively recommend changes to the Comp Plan based on changing circumstances. 4. Planning and TransPortatlon Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents Is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK During my service on the PTC, I have participated in amendments to the Palo Alto Comprehensive Plan (including being the primary editor of the Transportation Element draft that is part of the Comp Plan Update process), a variety of changes to the Zoning Code (including the Zoning Ordinance Update Process), the Baylands Master Plan, the Bicycle and Pedestrian Transportation Plan, and the preparation of the East Meadow Circle and California Avenue Concept Area Plans, the Rail Corridor Study, and the 2007-2014 and 2015-2024 Housing Elements. I have also reviewed several EIRs as part of CEQA reviews. I also participated in the development of the electric vehicle charging infrastructure ordinance as part of the EV Task Force, including working closely with the City Attorney in its drafting. Page2 Planning & Transpartation Commission Cbnaent to Publlah Perao.nal lntormatlott. on tht CltV of P•to Alto W.eb1IHt CellfOfnil Govetnment Gode -$ectlon $254.21 atat••, rn part,. "No tttte Q'r iocal agency shall JX1$l the home 'addr.&U or telephQne numb:er of ~ny e.Jected or appointed officlat on th$ Internet without ·flr'St obtaining 1he wrl~en. petmls•lo.n . .Of ·th·at lildMdu~I. ~ 'Jl'he 1ull bDde. ls tttachfld. This condnt 19.rm 'Will not be tlldseted and win "' attadhfKI to M Appl/o.atton and f»S.18(1 ·tQ ihf. Ctty..'t;. we'lfl.lts .. Tht f.ull o.od&. can b:e r.ead. here:.~ Read the co.de; and .check cn1Y ONI! option below: 0 · ! a.tve per~l&G.lbrrfor the ·City of Pllo.Alt6 to pqet to t~e City~& webSit«J the ~tfMbed ·"°a.rd ~net oomm1as1on Appltoatton lnt•ot; 1 .. have t~d-and urtd6.retanc1 my rlghtJ. und•rGovernme,nt :CQ<ie Section 8254.2'1. I. may revoke 'thls:permlsalcm '$f a.nytlltle by ptovldlng wdtt'o n(ltloe tQ the Palo Alto City Clet.k.. · . · ,. OR t requeatthtJt the. ·e1ty of Palo Alto. reaact my home ·~ddrEtlsi phone n\Jmber.a, 4nd eman .$~"" f~ thi.~ot.\9.d eoard and Comm1$alon Appl(~atloi'l. prl~rto PQ$t1ng to th9 q1iy11 WebtltJ .. t •m .PFO.Vldfn.s th• follO:Wlhg altemat~ "'fotrrtatlotunq reqtfettt'th$ttt.ley-1.1se:thefoJIQWlng.cont .. ct lnformatlon lnst&ad. Addrns~as·a1 Corina Way. Palo Alto, CA ··94903-4507 Cell PhonEii (!')l~ome-tO Offlee Phone; sso,.424 .. 0202 . E·mall: Planning and Transportation Commissio'1rl\PF1[~~l~~~. Personal Information GfTY CLERK'S OFFl~A Name: C :fa,1'1 Cf SchM tdf' 14 SEP 25 PH 2: 02 Address: ;;. Lj 'j /-0Ye51 Ave Cell Phone: · ~Home 1,QOffice Phone: 3;2;J :2., 15'..! + E-mail: J 4/v/ e.f7) ~ C:Ohq:t?/, r)e/ Are you a Palo Alto Resident? (JJ/ves QNo Do you have any relatives or members of your household who are employed by the City o!.falo A~ who are currently serving on the City Council, or who are Commissioners or Board Members? UYes }o/No Are you available and committed to complete the term applied for? 9f) YesO No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Qves ©No Excluding your principal residence, do you own real property in Palo Alto? Oves~No How did you Learn about the vacancy on the Planning and Transportation Commission? Ocommunity Group 0Email from City Clerk 0Palo Alto Weekly 0Daily Post ~City Website 0Flyer Other: _____________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: r ~..f-i_ /. U. , Bii vii 'P 11c, n y t/ /1Sl> Col11A}1a_ · f/, j) f/0Y1~ _s'~i:e_ I Employment R!iJfr.~ Present or Last Employer: 5~n ~ ;e. 5-/CifJt Occupation: fdJrq_ r41 jh tecffr Describe your involv~ent in community activities, volunteer and civic organizations: /1~1 'L;ff.a.;, 'ruc'ft~ G:;,.,iss/on /J~, (;JA AJv1ro~ Co1'11111tee, ~~ Be'11cl . VV/l jt;r:~ fi-111 ( ffee fo_<Lf t ~"' cliuit,. · 1' H-'1 ~. of +J,.e, L~YctrtJ .Q j_. ~ ~/1~ ~ Page1 ~ r y ej"/ CtR/J1/I; I ,f L/T/ Planning & Transportation Commission 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? 2. Pleas~t>e'an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. /W1~~ t:;~~,ft}j!JGl;~!Pj1'~ Z!oYJl'!j 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? ~pa:..r~ ~~·-/frrCdhf-f~ ~ ~~dlvJ/cd~~Y- 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK Page2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: ~ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I req1.Jest that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0 Home I 0 Office Phone: E-mail: Signature: Page3 Planning & Transportation Commission I Personal ·information Name: ~e\.~ <;.ch,v'\;1 ~\ (2..- Address: s; Cd ~o t l t.+ Ava., li=\-<6'0 G , pc., l 0 ce~ Phone: .~ ({ ·G\ q '{ <if? G '1 IS1Homel00fflce Phone:· , E-mail: rsdy(\.ebl t--Qg__~ot ~ L . (Q vvt Are yQu a Palo Alto R~1dent?"MY••0No ©TTY OF PALO ALTO. CA CITY CLERK'S OFFICE f 4 AUG 21 PH 2: 21 A\ 4-o Do you have any r&l$tives or memQ~rs .o ... fyoqr household whcta.re enip·l·o e.d by.· the City Qf.li'alo ~ho are currently serving on the City .Council, or who are Commissioners or oard Members? WYes.t:::::JNo Are you available and committed to complete the term applied fort Yes 0No California state law .requires appointed board and ootnmission members to file a detailed disclosure of their fin~cial Interests, FQ1r Political Practices Commi!;sion, Conflict of Interest; Form 7QO; Do you have ~n Investment lh; or do yoo serve as an officer ar director of; a pompany doing· business In Palo Alto Which you believe Is likely to; 1) engage In business with the City, 2) provide products or service$ for City projects, or Ef'. 3) be·. affectedb.ydecisions of.the board or.com.mJssion you are applyingfor?0Yes · .. o Excl1.1ding your principal residence, do you own real property in Palo Alto? Oves ·· · No How did you Learn about the vacancy on the Planning and Transportation Commlsslcm? Dcommunlty Group 0DJif5' Post 0Email from City Clerk [9tity Website 0Palo Alto Weekly 0Flyer Other; _____________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: T I . p 1 D · ' . /1 -\'\Iii. ./L ~ v1 I V'\ e •tJ. l I\ ..ee {' I v14 I c; VLC!. ot J'l v'V\ BA. v ' Employment ' Present or Last Employer: S \ \.ti ~r Occupation: Tu v .( S ~ ( Describe your involvement in community activities, volunteer and civic organizations~ 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? I I I (/\UV) v u 'I " ti\_ l-e /'"' ~ .(_ .e ct l v\ \ V1lt r r 0 v ' v:y .e~Lu·~ ~1 a-.C lo cu\ -+rc.ivt > :>•tki .'c;VI ;-t CC< <11 ; ~'\.'\ p ~CJ\/ e..-~ I,>.,.<;. oi r.(J '> 1;,t'. e~5; 2. Please describe an issue that recently came before the Commission that Is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. \~., , (\t'sc"'~s,'0111 ot.-+~e dovv,\4ovVvt. d.ev.e/opri-i-ec!l+ b ( c., \> ' Ii\ -l-tv... '11lq 1 ?. '? { "' '111.e .e: +, .' L'l , 'c " II]+-.e 1 e ,/. -Q (vt (.( > e._ L.' vVh +: \J\~ c\:e v~ lo vV\/\e(/\ l-C(/tV) Vil~) a l L 1 f V\ '0t+e +;-~~. 3. If appointed, what specific gJ.lls would you li~e to see the Planning and Transportation (' Commission achieve, and why? How would you suggest accomplishing this? T ei W\ p0 ~ ~ , 'o i/\c;A 4--a,, et be>(/\ t. e ~~.le l'J flc i o+. 0 Vl I' (<.?Cut l L' k.{ +a e'f p to re_ ~ II vV\ ) f'(J V >I V1.y f-~~ ro1c,c.~ ~ . \./ l. vvctlJ er{-+~c~Vltl dJ i -l-o f<dvt~ 4. Planning and Transportation Commission Members work with the documents listed beloW. If {u·Vlt; ~5-)., vVI. you have experience with any of these documents, please describe that experience. Experience J with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK Page2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Reacr{he code, and check only ONE option below: ~ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: D Home tD Office Phone: E-mail: Page 3 Planning & Transportation Commission Planning and Transportation Commission Application Personal Information CITY o'F PALO ALTQ. C~ CHY CLERK'S OFFH~E i Name: Lyn Tillery Address: 139 Hawthorne Ave Apt E Palo Alto, CA 94301 Cell Phone: 3104004611 Q Home I @office Phone: 6504978203 E-mail: c.lyn.tillery@gmail.com Are you a Palo Alto Resident? @Yes QNo 14 SEP 2 2 PH t.: I 4 ' ' Do you have any relatives or members of your household who are employed by the City ot,ealo AjlQ, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes (!)No Are you available and committed to complete the term applied for? @vesO No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Qv es @ No Excluding your principal residence, do you own real property in Palo Alto? Oves@No How did you Learn about the vacancy on the Planning and Transportation Commission? Ocommunity Group Ooaily Post 0Email from City Clerk [{]city Website 0Palo Alto Weekly 0Flyer Other: ____________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: I have ample experience that makes me qualified and suited for this commission. Specifically, my Masters . in Public Administration has given me the foundation to apply the concepts I learned to the Issues presented to this committee. I gained city zoning and constituents related experience while working with LA Congresswoman Karen Bass and my perspective as a Palo Alto resident should add value to the scope I bring to the commission. Employment Present or Last Employer: Stanford Children's Health (AKA. Lucile Packard Children's HospQ Occupation: Revenue Cycle Operations Describe your involvement in community activities, volunteer and civic organizations: I am very involved in my community. Specifically, I am a member of the California Association of Healthcare Leaders and the Healthcare Financial Management Association. While I served as a Public Allies Silicon Valley Fellow (AmeriCorp's Program) I worked with various city nonprofit organizations ( Boys and Girls Club, Year-Up, etc) to execute town halls, community events, and specific education initiatives. Page 1 Planning & Transportation Commission 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? I am very interested in the Planning and Transportation commission because I think that many of the topics you approve and overview directly impact my life as a downtown Palo Alto resident. Specifically, I am interested in helping to build sustainable communities that meet house supply challenges and provide alternative transportation options as outlined in the comprehensive city plan. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. The residential preferential parking program is very interesting to me. As the amounts of offices and commercial construction developments in grow throughout Palo Alto J think it is very important to develop a sustainable plan that allows for residents to have various parking options. Personally as a resident that does not have non street parking this program will directly impact me as I take a community shuttle to work and leave my car parked on the street. As it stands now I sometime have to find creative ways to find open parking new my residence. 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? If appointed I would like to see the committee continue to work on creating more alternative methods of transportation. As a downtown Palo Alto resident that also works in the accompanying area I often use the shuttle system to get to my destinations. I think we can accomplish this goal through the help and involvement of community members. Their input can help us to optimize our routes and shuttle times. 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK I have experience working with and evaluating City plans and capital improvement projects. I also have seen some of the El Camino Real design ideas and side width related pedestrian nodes. Page 2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0 Home I 0 Office Phone: E-mail: Signature: _C_· ·-~-+-t---mt~,___,~ __ ':\__·~---------Date: 09/22/14 Page 3 Planning & Transportation Commission Planning and Transportation Commission Application Personal Information Name: Asher Waldfogel Address: 300 Santa Rita Ave Cell Phone: 650 224-2425 @Home/QOffice Phone:650 321 -6745 E-mail: Are you a Palo Alto Resident?@Yes QNo Do you have any relatives or members of your household who are employed by the City oJ.ealo Aj!Q, who are currently serving on the City Council, or who are Commissioners or Board Members? UYes ~No Are you available and committed to complete the term applied for?@YesONo California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? Qves@No Excluding your principal residence, do you own real property in Palo Alto? Qves@No How did you Learn about the vacancy on the Planning and Transportation Commission? §Community Group Email from City Clerk Palo Alto Weekly 0Daily Post Deity Website 0Flyer Other:-------------------------------- List relevant education, training, experience, certificates of training, licenses, or professional registration: 20 year tech innovator and entrepreneur. 6 years PA City commission experience and very familiar with City processes and budgets. Client for simple and complex residential development. Facilities and Finance committee member for multiple boards. Client and owner of most-published residential project in PA history. Employment Present or Last Employer: Self Employed Occupation: Technology entrepreneur and innovation consultant Describe your involvement in community activities, volunteer and civic organizations: PA Utilities Advisory Commission. Boards: California College of the Arts, Castilleja School, Zoolabs (music incubator), Nexleaf (global health care). Adjunct Professor at CCA. MIT Visiting Committee. SFMOMAArchitecture and Design Acquisition Committee. Former PA Library Technology Advisory Commission, Global Fund for Women (Investment Committee) Page 1 Planning & Transportation Commission 1. What is it about the Planning and Transportation Commission that is compatible with your experience and of specific interest to you, and why? I am interested in how we can shape land use policy for the 21st century. We're a 20th century garden community struggling with 21st century regional land use problems. I am interested in protecting our core values while finding innovative paths forward. I work closely with residents, innovators, artists, designers and architects who can all provide insights. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. Planning code revisions. Our planning code has gotten very complicated and yet it doesn't seem to lead to the results the community wants. Housing is getting replaced with cookie cutter tract houses and many of our new commercial buildings are large and ordinary. Code confusion aggravates the problems. 3. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and why? How would you suggest accomplishing this? Ensuring that Cal Ave and Midtown districts remain neighborhood retail friendly. Commercial dev.yA,9<,Jiment and transit opportunities in the El Camino corridor. Minimizing commercial district ihtrusion into neighborh.oods. Ensuring consistency and intent in building and planning codes. Advocating for public, park, not-for-profit and non- commercial land use designations and overlays. 4. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan LINK Zoning Code LINK City Charter LINK California Environmental Quality Act LINK El Camino Real Design Guidelines LINK El Camino Real Master Plan Study LINK and Appendices LINK Area Plans such as the South of Forest Avenue (SOFA) I and II Plans LINK Baylands Master Plan LINK Page 2 Planning & Transportation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: @ I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR 0 I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: 0 Home I 0 Office Phone: Page 3 Planning & Transportation Commission CITY OF PALO ALTO OFFICE OF THE CITY CLERK November 10, 2014 The Honorable City Council Palo Alto, California Policy and Service Committee Recommendation to Release Agenda Packets One Week Earlier and Make Other Conforming Changes Recommendation Staff and the Policy and Services Committee recommends that Council approve the following changes to City procedures and practices: (1) the Council agenda packet (Packet) to be released one week earlier than under current practice - 12 days prior to Council meetings and more for Committee meetings - except under unusual circumstances warranting shorter timeframes, and (2) questions from Council Members regarding agenda items to be submitted to the City Manager no later than close of business on the Wednesday prior to the meeting. Discussion The City Council agenda packet containing the agenda and all associated reports, minutes, data and attachments is currently released the Wednesday prior to the next Monday Council meeting. The Packet contains the agenda and reports for the upcoming Council meeting, along with Committee agendas/packets for the following week and informational Staff reports. The current Wednesday release allows the Council and public five days to review the packet. If approved, releasing the Packet one week earlier would allow Council and the public 12 days to review the Packet. Under the current schedule, report writing and review typically begins four to six weeks in advance of the meeting. Earlier packet release will mean that process must begin one week earlier. This may have the effect of constraining to some degree the City’s ability to react quickly to changes in circumstances or new developments. It will also mean that Council will not be able to request that an item be placed on the following weeks’ agenda, as that agenda will already have been published. In addition, the earlier release of packets will mean that there often will be two agenda Packets out at the same time. This may cause confusion with the public. Staff intends to use different paper colors to differentiate between the Packets, highlight the date on the agenda and reports to increase visibility, and maintain two separate public carts in the Council Chambers for agenda materials. Page 2 Earlier Packet release will make it possible to adjust the timelines for City Council submission of questions and advance notification of intent to pull an item from Consent. Wednesday before the Council meeting appears to be an appropriate deadline for these items. This will allow Staff sufficient time to prepare responses to Council questions and release them before the evening of the meeting. Council, Staff and the public will need to resist any tendency to request supplemental Staff reports based on community input or other information that Council and Staff may receive as we get closer to the meeting. Current staffing levels are not sufficient to support an increase in reports over the current practice. Policy & Services endorses the recommendation of Staff to make the transition to an earlier release of the Packet during the Council’s holiday break in December. The Packets for January 5 and 12, 2015 would be released on Wednesday, December 31, 2014. The Policy and Services Committee also discussed moving from sense minutes to verbatim minutes, but has requested Staff to return with additional information on cost and turnaround time. This is scheduled to return to the Policy and Services Committee on December 16, 2014. Timeline Early Packet release would begin with the Council packets for January 5 and January 12, 2015. Resource Impact Project implementation will be completed within existing staff resources. Post implementation analysis based on issues mentioned above may increase staff time. ATTACHMENTS:  Attachment A: CMR Calendar 2015 (DOC)  Attachment B: Policy and Services 09-23-14 Report (PDF) Page 3  Attachment C: 09-23-14 Packet Release Minutes (DOCX) Department Head: Donna Grider, City Clerk Page 4 CMR CALENDAR-WEDNESDAY/THURSDAY RELEASE OF PACKET/REPORTS C:\users\bminor\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\12206.doc Version-2: 09/23/14 COUNCIL MEETING DATE Draft CMR with BAO/Resource Impact Section/ Ordinance/ contract from originating Department to ASD Director- and Other Coordinating Depts. Process begins on Monday 5 weeks prior to the Council meeting ** Draft routed to City Attorney by Monday 4 weeks prior to packet Final Review of all edits by Originating Department Head FRIDAY 2 weeks prior to packet Final CMR Due to JK for Review by WEDNESDAY week prior to packet If NO edits, JK approves (dept. process complete) If EDITS from JK: CMR due back to originating Department to make all edits If EDITS from JK: Final edited version of CMR due back to JK WEDNESDAY for final approval to send to Clerk by NOON (dept. process complete) Final CMR to City Clerk by NOON day of packet PACKET DAY JAN 5 MONDAY CEREMONIAL CEREMONIAL DEC 31 WEDNESDAY JAN 12 MONDAY DEC 8 MONDAY DEC 15 MONDAY DEC 19 FRIDAY DEC 23 TUESDAY DEC 29 MONDAY DEC 30 TUESDAY DEC 31 WEDNESDAY JAN 20 TUESDAY DEC 15 MONDAY DEC 22 MONDAY DEC 26 FRIDAY DEC 31 WEDNESDAY JAN 6 TUESDAY JAN 7 WEDNESDAY JAN 8 THURSDAY FEB 2 MONDAY DEC 29 MONDAY JAN 5 MONDAY JAN 9 FRIDAY JAN 14 WEDNESDAY JAN 20 TUESDAY JAN 21 WEDNESDAY JAN 22 THURSDAY FEB 9 MONDAY JAN 5 MONDAY JAN 12 MONDAY JAN 16 FRIDAY JAN 21 WEDNESDAY JAN 27 TUESDAY JAN 28 WEDNESDAY JAN 29 THURSDAY FEB 17 TUESDAY JAN 12 MONDAY JAN 19 MONDAY JAN 23 FRIDAY JAN 28 WEDNESDAY FEB 3 TUESDAY FEB 4 WEDNESDAY FEB 5 THURSDAY ** Report process in MinuteTraq can begin any time before these dates. When you are aware that you are going to have to bring a report to Council, Finance Committee, or Policy and Services Committee, you can enter it in MinuteTraq. CMR CALENDAR-WEDNESDAY/THURSDAY RELEASE OF PACKET/REPORTS C:\users\bminor\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\12206.doc Version-2: 09/23/14 City of Palo Alto (ID # 5114) Policy and Services Committee Staff Report Report Type: Agenda Items Meeting Date: 9/23/2014 City of Palo Alto Page 1 Summary Title: Early Release of Agenda Packet Title: Review and Recommend to City Council Changes to the Scheduled Release of Council Agenda Packets and Other Matters Related to Agendas, Reports and Minutes From: City Manager Lead Department: City Clerk Recommendation Staff recommends that Policy and Services Committee review and discuss the proposal for early Council agenda packet (Packet) release and other agenda/report/minutes related process changes. Executive Summary The City Council agenda packet containing the agenda and all associated reports is currently released the Wednesday prior to the next Monday meeting. The Packet contains the agenda and reports for the upcoming Council meeting, along with Standing Committee agendas/packets for the following week, and informational Staff reports. The Wednesday release allows the Council and public five days to review. The early release would allow Council and public additional time to review the items coming before Council and the Council Standing Committees. Discussion Over the past several months, Staff has been working on how to effectively transition to a packet release a week earlier than is now done. The new schedule could be in effect beginning in January 2015, with packets going out on the Wednesday or Thursday two weeks before the Monday meeting. This would be approximately 12 days in advance of the meeting. We need to make the transition during a holiday break period, to manage the shift and logistics from one schedule to the next. We had hoped to do this during the Council’s recent summer break but weren’t able to meet the deadline. There is slight appreciation and understanding for all of the work and coordination to produce our voluminous agenda packets and reports each week. Under the current Wednesday packet schedule, the agenda development and report writing and review typically begins four to six weeks in advance of the meeting. Earlier packet release will mean that process must begin even earlier. City of Palo Alto Page 2 There are several issues related to the earlier release. First, we will have a situation where there are often two packets out at the same time and the potential for confusion will be real. That probably isn’t an issue for regular attendees of City Council meetings. But for those less familiar with City Council meetings, there could at times be confusion and we could have some folks attend the wrong meeting. As infrequent attendees, this could be a disappointing experience, and we should be prepared for this. We doubt this will be the norm, but it should be acknowledged. Second, we will need to resist the tendency to request supplemental staff reports as we get closer to a meeting, based on community feedback or other information that Council and staff may receive with an earlier release of reports. City staff cannot effectively support an increase in reports over the status quo. As we are making changes related to public notice and participation, intended to make for more effective Council meetings and to support increased engagement by the public, in discussions with the Executive Leadership Team there are some concurrent improvements in process and discipline related to effective Council meetings and preparations that staff suggests the Committee discuss. We need to review rules around changes to the agenda and scheduling of those changes as well as potential revisions to policies and procedures related to a Colleagues’ Memo submission and review time. Staff also suggest we reset deadlines on City Council submission of questions to staff and receive advance notice on intent to pull an item from Consent. With an earlier packet release, Friday before the Council meeting would be an appropriate deadline for both these items. This will allow staff to more effectively prepare and respond to Council questions and notice to move an item to the Action agenda. Lastly, the Committee should take a hard look at current practice of using sense minutes at Council and Committee meetings and considering moving to Action minutes, in conjunction with full video recording by the Media Center. Preparation of sense minutes is an intensive, high cost approach that with video recording of meetings raises important questions about why we continue this. Sense minutes are not verbatim minutes, but rather summaries prepared by the Clerk’s staff or off-site contractors who are called on to interpret and make discretionary decisions about how best to summarize complex public debate. The Media Center video is accurate, complete and available promptly after a meeting is concluded. As we are looking at the earlier packet release as a best practice, we should apply the same criteria to other aspects of our report and agenda production. Finally, staff notes that current Council procedures reflect anomoulous treatment of how Council Members place items on the Action agenda. Colleagues’ memos require two votes, while items progressing to full Council from a standing Committee are placed on the Action agenda with only one Council Member vote. The two-vote requirement is intended to allow a low threshold to access the agenda, but require at least the support of two Members before City of Palo Alto Page 3 the full bodies’ time is reserved for full discussion. The Committee may wish to consider aligning these two vote requirements. Timeline If the Committee recommends that the Council move forward with the early packet release, Staff would bring this to Council in early November 2014 for approval, and implementation would begin with the Council packets for January 5 and January 12, 2015. Resource Impact Project implementation will be completed within existing staff resources. Post implementation analysis based on issues mentioned above may increase staff time. POLICY AND SERVICES COMMITTEE WORKING MINUTES Page 1 of 9 Special Meeting September 23, 2014 Chairperson Price called the meeting to order at 6:00 P.M. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Klein, Price (Chair), Scharff, Schmid Absent: 2. Review and Recommend to City Council Changes to the Scheduled Release of Council Agenda Packets and Other Matters Related to Agendas, Reports and Minutes. Donna Grider, City Clerk, advised that for the past year the Executive Leadership Team had discussed an early release of Council packets. Currently packets were released on Wednesday for the following Monday's meeting. Staff proposed transitioning early release over the Winter Break and implementing it in January 2015 with packets issued two weeks prior to the Council meeting. Under the current schedule, Agenda development and report writing typically began four to six weeks in advance of the Council meeting. Notice of a Public Hearing was submitted to the newspaper four to five weeks prior to the Council meeting. The public could be confused by having two packets available concurrently. Council Members should resist changing or adding to the packet because of the perception of having time to do so. Council Member questions should be submitted the Friday prior to the Council meeting rather than the Monday of the meeting to allow Staff more time to respond. A survey of surrounding cities revealed that the majority utilized action minutes. Currently three to four weeks were needed to prepare sense minutes. The Attorney’s Office had concerns that sense minutes did not accurately reflect Council discussion. Molly Stump, City Attorney, explained that an administrative person not familiar with complex subject matters was asked to listen to a recording, decide important points, and summarize comments. She preferred action minutes along with the video. James Keene, City Manager, did not believe his comments were characterized accurately in minutes. At times the Council felt it was WORKING MINUTES Page 2 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 premature to act because it did not have minutes. In order to prepare accurate minutes, a court reporter could capture all statements as spoken. Ms. Grider advised a Colleagues' Memo to place an item on the Council's Action Agenda required two votes. One Standing Committee Member could place an item from the Standing Committee on the Council's Action Agenda. Ms. Stump clarified that one Council Member in a Standing Committee meeting could dissent from the majority vote and cause the item to be placed on the Council's Action Agenda. Other processes for moving an item to the Action Agenda required higher thresholds. Council Member Klein remarked that a Colleagues' Memo started a process; it did not advance an item to the Action Agenda. Mr. Keene indicated three Council Members had to support removal of an item from the Consent Calendar. Sometimes one member of a Standing Committee would intentionally dissent to ensure the item was placed on the Action Agenda. Different methods for placing items on the Action Agenda had different thresholds. Council Member Schmid suggested the Policy and Services Committee (Committee) discuss each of the five proposals separately. Chair Price concurred. Council Member Scharff inquired about the five proposals. Mr. Keene responded early release of the packet and supplemental reports. Council Member Schmid added Council Member questions to Staff and action minutes. Council Member Scharff wanted to discuss the proposals concurrently. Council Member Schmid noted the final proposal was requiring two votes rather than one from a Standing Committee to place an item on the Action Agenda. Council Member Klein recommended the Committee discuss proposals together but propose separate Motions. Council Member Scharff agreed with the process. Chair Price also agreed. WORKING MINUTES Page 3 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 Council Member Schmid believed early release of the packet would allow the public to absorb and discuss information and prepare comments for the Council. He inquired whether materials such as minutes of Boards and Commissions and letters from the public would be issued as a supplemental packet. Mr. Keene assumed the current practice of at-places information would not change. Council Member Schmid explained that such supplemental material could be provided in the packet released the Wednesday before the meeting. The City Manager and Staff Report would not be supplemented. Mr. Keene indicated that could create a multistage distribution for the City Clerk. Ms. Grider agreed. She wanted to differentiate packets so that Council Members and the public could easily determine which meeting the packet applied to. Perhaps packets could be a different color or be bound separately and state the meeting date. Staff should not retain correspondence until the night of the meeting. Supplemental, revised, amended, or corrected reports would only confuse everyone. Council Member Schmid suggested printing the date of the meeting across the top of the packet in bold or a different color. Council Members submitting questions on Friday would provide sufficient time for Staff to respond and to carefully consider their responses. Council Members had no time to read and absorb answers provided at-places. Council Members could submit questions on Thursday or Friday with the agreement that Staff would respond on Monday. Mr. Keene commented that answers often were provided to the Council or the public at the meeting. If questions were submitted on Friday, then he could review the status of responses on Monday. Council Member Schmid opposed the use of action minutes. Action minutes from meetings of the Utilities Advisory Commission (UAC) were virtually useless in providing a sense of action from the meeting. Verbatim minutes from meetings of the Planning and Transportation Commission (PTC) were a valuable resource. Verbatim minutes were necessary for an open, transparent, democratic process. A Colleagues' Memo required two votes or 22 percent of Council Members. One dissenting vote from a Standing Committee Member was 25 percent of Standing Committee Members. Removing a Standing Committee item from the Consent Calendar required a higher percentage of Council Members than a Colleagues' Memo. In WORKING MINUTES Page 4 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 addition, the Standing Committee could not report an item to the Council on a 2-2 vote. He would not support Item 3 or Item 4. Council Member Scharff supported early release of packets. He was not concerned about having two pending packets. He inquired whether color printing of the packet was possible without adding a great deal of cost. Ms. Grider reported color would add some cost but was possible. Council Member Scharff recommended the date be printed in big, bold, red letters. He did not like sense minutes because Motions as amended and with incorporated language were not stated in one location. Sense minutes could hurt the City in litigation. Ms. Stump related her experience with having to testify in court that minutes were an official City document when she did not believe comments attributed to her in the minutes were accurate. Council Member Scharff recommended the Committee support either verbatim or action minutes. He asked if verbatim minutes were more expensive. Ms. Grider answered yes. Council Member Scharff inquired about the additional expense. Ms. Grider could not provide an amount at the current time. Council Member Scharff inquired about the amount of money saved by changing to action minutes. Ms. Grider explained that the City would not have to contract for transcription of minutes if the action minutes were utilized. That would save approximately $50,000. Council Member Scharff assumed verbatim minutes would not cost much more. Ms. Grider did not research the cost of verbatim minutes. Council Member Scharff agreed with Council Member Schmid that transparency concerns outweighed a $50,000 cost. He would support the use of verbatim minutes as well as outsourcing transcription of minutes. He supported the process of one Standing Committee Member being able to remove an item from the Council's Consent Calendar. That prevented three Standing Committee Members from forcing an issue and provided weight for WORKING MINUTES Page 5 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 a unanimous vote not to be removed from the Consent Calendar. Council Members would need to submit questions by Thursday or Wednesday because of 9/80 Fridays. Chair Price clarified that Council Members would meet on Monday, submit questions by Wednesday, and receive the first round of packets Wednesday afternoon. Ms. Stump added that packets would arrive a week earlier. Council Member Scharff indicated Council Members could still ask questions at the meeting. The purpose of submitting questions was to reduce the length of Council meetings; however, shorter meetings did not occur. The Council should have a policy for Council Members to submit questions that would be difficult to ask during a meeting. A Council Member should be able to remove an item at the Council meeting. That created some difficulties for Staff, but items could be rescheduled. Council Member Klein agreed with comments regarding Standing Committee votes. The present procedure was acceptable. He questioned whether the proposal should be presented to the Council as it was a Staff initiative. Council Member Scharff answered no. Ms. Stump reported that the Council did not need to hear the proposal. Staff provided it as a potential idea. Council Member Klein recommended the process of Council Member questions be reexamined. Questions during Council meetings were educational for the public. Written questions and responses did not save time or inform the public. Council Member Scharff asked if Council Member Klein was advocating for eliminating questions. Council Member Klein responded no. Staff's preference for written questions was misguided. Mr. Keene stated intuitively answering questions in advance created work. The original intent of submitting questions in advance was to preclude those questions being asked at the meeting. Meetings were not shorter because of submitting questions, and Staff would be happy to eliminate them. Council Member Klein would not change the process for removing items from the Consent Calendar. Quite frequently members of the public did not read the packet until the weekend before the meeting. He supported early WORKING MINUTES Page 6 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 release of packets. In addition to different colors, he proposed Agenda Items be numbered 1-1,000. There would be less confusion if the current week's Agenda began with Item Number 1 and the following week's Agenda began with Item Number 20. Mr. Keene expressed concern that early release of packets would lead to Council Members requesting Staff provide supplemental reports or respond to public comment. Staff would not provide interim updates to the upcoming packet in response to Council Member questions. Council Member Klein suggested Staff adhere to the Council rule that a Council Member question could not require more than one hour of Staff time. The Council could not act on the question, because it was not an Agenda Item. Council Member Scharff recalled the City Attorney indicated that was not an agenda issue. Ms. Stump explained that the Brown Act exception applied to new topics the body wanted to place on a future Agenda. Council Member Klein seemed to recall the Council had verbatim minutes at one time. Herb Borock reported City Clerk Gloria Young recommended the Council save money by changing to sense minutes. The quality of minutes varied depending on the cost. Council Member Klein disagreed with Council Member Scharff's estimate of only $50,000. A court stenographer was not cheap. Council Member Scharff added that the Council did not need a certified court reporter. Ms. Stump inquired whether a court reporter attended Planning & Transportation Commission (PTC) meetings or the recording was sent out for transcription. Ms. Grider indicated the PTC sent the recording out to be transcribed. Council Member Klein inquired about the qualifications of the transcriptionist. Ms. Grider advised that the same firm transcribed both PTC and Council minutes. They were not court reporters. WORKING MINUTES Page 7 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 Council Member Klein added that verbatim minutes would require more time to transcribe. He questioned whether verbatim minutes could be transcribed in time for an item to return to the Council in one or two weeks. He would support either action or verbatim minutes but wanted to review cost and transcription time. Court reporters could provide a transcript the same day. Ms. Grider noted the cost was substantially higher. Council Member Klein requested Staff provide an array of costs and timeframes for transcription. Council Member Scharff suggested transcription of a particular item could be expedited if the Council directed Staff to return with that item the following week. The cost could be less expensive. As an alternative, the City could use action minutes on the one item. Council Member Klein believed using more than one style would open the City to criticism. Fred Balin commented that the Council should continue with sense minutes or change to verbatim minutes. Council questions and Staff responses were the result of a lawsuit with the San Jose Mercury News, as noted in Council policies and procedures. Staff had not posted any responses to the City's website since the end of June 2014. The purpose of submitting questions was to have a more informed and efficient discussion at the meeting. Herb Borock indicated Council Members did not submit questions 15 years ago. Prior City Managers had initiated many changes in procedures. Arthur Keller's communication summarized the need for sense minutes rather than verbatim minutes. Fifteen years ago any item on the Consent Calendar could be removed by one Council Member. All Planning items had Public Hearings. The Council made all referrals to Standing Committees. The Lease among Stanford, the City, and Santa Clara Valley Transportation Authority (VTA) appeared on the Committee's Agenda at the end of March 2014. A quorum was not present at that meeting; therefore, the item was continued to the next meeting. The subsequent meeting was canceled. Chair Price talked with the City Manager regarding rescheduling the lease among Stanford, the City, and VTA. The Council would hear the item at some point. She favored an early release of the packet. She requested Staff ensure digital packets were clear as to the date of the meeting. Questions to Staff should be submitted on Thursday. She was not convinced that submitting questions would reduce the number of questions asked at the meeting; however, she was uncomfortable eliminating that option. She needed additional information regarding minutes, but she was inclined to WORKING MINUTES Page 8 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 favor sense-plus minutes as they would provide more detail and utilize less paper. Council Member Scharff requested a definition of sense-plus. Chair Price explained those minutes were more detailed than the current minutes. Ms. Grider reported the choices were action, sense, or verbatim. The City Manager and Attorney would have the same concerns with sense-plus minutes. For complete accuracy, the City should have verbatim minutes. Chair Price requested additional information. She concurred with the current practice of a Colleagues' Memo, removing items from the Consent Calendar, and going through Standing Committees. Mr. Keene advised that the Council had more Standing Committees than before and the effectiveness of Standing Committees had improved greatly. Staff and the Council were interested in responding to public requests to issue information earlier. Council Member questions to Staff were required to be distributed and shared publicly. That would not change. Council Member questions related to the Agenda had to be published as well. Staff proposed the topics in the spirit of identifying ways to increase meeting efficiency. MOTION: Council Member Schmid moved, seconded by Council Member Scharff to recommend the City Council: 1) approve the early release of packet; 2) Council Member questions to be submitted to the City Manager by the Thursday prior to the meeting; and 3) Staff to return to Policy and Services Committee with additional data on the cost of sense, verbatim, and action minutes. Council Member Scharff suggested close of business on Thursday was the wrong deadline for submission of Council Member questions because of 9/80 Fridays. The deadline should be close of business Wednesday. INCORPORTATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that Council questions are to be submitted by close of business on Wednesday rather than Thursday. Mr. Keene acknowledged that some circumstances could prevent Staff from providing answers to Council Member questions on Thursday. Staff would provide those answers over the weekend or by Monday morning. Staff would not issue supplemental Staff Reports in response to community chatter. WORKING MINUTES Page 9 of 9 Policy and Services Committee Special Meeting WORKING Minutes 9/23/14 Council Member Schmid inquired whether the early packet release would add a week to Staff returning to the Council with supplemental information. Ms. Stump reported once procedures and timeframes were set, they would apply to everyone including Council Members preparing Colleagues' Memos. Council Member Schmid clarified that the Council could direct Staff to return with new information the following week. Mr. Keene would resolve that issue when it arose. Chair Price noted Council Members would have to act sooner because of the early release packets. Ms. Stump explained that adding an item to the following week's Agenda would not be possible as the Agenda for the following week had already been released. Council Member Scharff suggested Staff return with minute information while the Committee recommended Council approval of the remaining proposals. Council Member Schmid stated the Motion directed Staff to return to the Committee. Council Member Scharff wanted to bifurcate minutes information from other items to prevent a delay of the other items. MOTION AS AMENDED PASSED: 4-0 ADJOURNMENT: Meeting adjourned at 8:51 P.M. City of Palo Alto (ID # 5171) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Drought Rate Design Guidelines Title: Finance Committee Recommendation that the City Council Approve Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study From: City Manager Lead Department: Utilities Recommendation Staff and the Finance Committee recommend that Council approve the proposed Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study (Attachment A). The Utilities Advisory Commission (UAC) recommends that Council approve the proposed Design Guidelines with a rewording of Guideline Five, from “Rates for residential customers should provide an allowance for efficient landscaping through the use of three tiers, if feasible, and should otherwise be based on two tiers.” to “Rates for residential customers should provide for efficient use of water for landscaping.” Executive Summary The Water Utility is experiencing lower sales volumes due to calls for conservation as a result of drought conditions. If the drought continues, additional revenue may be required to preserve the Water Utility’s financial position. In preparation, staff is updating the 2012 Water Utility Cost of Service Analysis (COSA) so that it includes additional rates or surcharges for use in an extended drought. The attached design guidelines set forth the parameters for the study. Following Council adoption of the guidelines, staff will engage a consultant to update the COSA and will return to the UAC, Finance Committee, and Council to commence the rate adoption process if the drought continues and additional revenue is necessary to preserve the utility’s financial position. Background California is currently experiencing drought conditions. On January 31, 2014, the City’s water supplier, the San Francisco Public Utilities commission (SFPUC), called for a 10% voluntary reduction in water use for its retail and wholesale customers. In response, Palo Altans have City of Palo Alto Page 2 reduced consumption by 15%1 compared to last year. City facilities have reduced consumption by 25%. If the drought continues through the upcoming winter, the SFPUC will likely make these restrictions mandatory, and possibly increase them. The current water rate schedules for the City of Palo Alto Utilities (CPAU) Water Utility are based on the 2012 COSA by Raftelis Financial Consultants. This COSA included rates based on normal year water sales, and did not include rates for drought conditions. Discussion The drought has not yet significantly impacted the Water Utility’s financial position. The utility’s revenues for February through June 2014 were lower than projected in the fiscal year (FY) 2014 budget, but this was offset by higher than budgeted revenue in the preceding months, before customers began taking concerted conservation measures. The drought is anticipated to impact the Water Utility’s finances for FY 2015, however, and will impact future fiscal years if it continues beyond this winter. Staff evaluated a three-year drought scenario that assumed 10% reductions in 2015 and 20% reductions in 2016 and 2017, and the impact on reserves ranged from $1M to $3.5M per fiscal year. CPAU could offset some of this impact with temporary cost reductions or drawdowns of reserves, but drought rates would also have to be part of the solution to the financial impacts of an extended drought. While the primary purpose for drought rates is to preserve the financial health of the utility, they are also anticipated to have a small impact on conservation. Staff predicts a 1-3% reduction in water use if the rates were put into effect. The proposed design guidelines (Attachment A) will be used by staff to guide its work on these rates. The staff report to the Finance Committee (Attachment B) provides a full explanation of the proposed guidelines. Committee and Commission Review and Recommendation On September 3, 2014, the UAC considered staff’s recommendation. There was an extensive discussion of guidelines five and six, which describe the residential and commercial rate designs. Some Commissioners advocated for creating a system of rates with individual allocations of landscape water for each residential customer based on property characteristics. This was discussed as an alternative to imposing a uniform system of tiers for all residential customers. After discussion the UAC voted to recommend approval of the staff recommended design guidelines, but to amend guideline five to read “Rates for residential customers should provide for efficient use of water for landscaping,” language which allowed various rate options to be considered. The recommendation was approved by a vote of 3-1 (with Commissioner Waldfogel voting no and Commissioners Chang, Cook, and Hall absent). The Chair of the UAC also appointed a two-member sub-committee, comprising Vice Chair Waldfogel and Commissioner Melton, to review the drought rate analysis as it progressed. The minutes from the UAC’s September 3, 2014 meeting are provided as Attachment D. 1 All customers, cumulatively, February through August, compared to 2013. City of Palo Alto Page 3 On September 16, 2014 the Finance Committee voted 3-0 (Council Member Holman absent) to approve the staff-recommended Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study without any changes. The Finance Committee asked a variety of clarifying questions about the rate structures and urged staff to clearly communicate them to residents. The minutes from the Finance Committee meeting are included as Attachment C. Next Steps Staff intends to have drought rates ready for potential adoption by Council by spring of 2015. This will allow for their adoption if water shortage conditions continue through this winter or worsen. Resource Impact This update to the water utility COSA will be completed with existing budgeted resources. The drought rate schedules, once adopted, will not take effect unless the Council puts them into effect as part of a water shortage. If the rates are put into effect, they are expected to recover the cost of operating the utility when sales are lower during a drought. Council’s consideration of the proposed rates will be preceded by the notice and protest hearing procedures required by Proposition 218. Policy Implications The creation of drought rate schedules enables Council to implement them when it deems appropriate, which would typically occur as part of a Stage II or higher water shortage, as set forth in the City’s 2010 Urban Water Management Plan. Environmental Review Adoption of drought rate design guidelines does not meet the definition of a project, pursuant to Section 21065 of the California Environmental Quality Act, thus no environmental review is required. Attachments:  Attachment A: Design Guidelines for Drought Rate COSA (PDF)  Attachment B: Finance Committee Staff Report (ID 5063), without attachments (PDF)  Attachment C: September 16, 2014 Finance Committee Minutes (PDF)  Attachment D: Excerpted Final UAC Minutes of 9-3-14 (PDF) Attachment A Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study 1. Drought rates must be based on the cost to serve customers. This is the overriding principle for this study; all other rate design considerations must fall within this basic premise. 2. The drought rate design should be consistent with the water shortage response plan evaluation criteria in Appendix G of the City’s 2010 Urban Water Management Plan, summarized as follows: a. Reduce overall City consumption to reduction target required b. Provide sufficient water available for personal use c. Design should be acceptable to the community d. Unemployment and business loss should be minimized e. Landscaping investment losses should be minimized f. Plan should be cost-effective, enforceable, and achievable in the given timeline g. Plan should allow for flexibility h. Plan should take into account for new water services i. Plan should recover penalties applied by suppliers These criteria are discussed in more detail in the 2010 Urban Water Management Plan. 3. Rates will be designed for the following demand targets: San Francisco Public Utilities Commission System-wide Demand Reduction Target Palo Alto Demand (CCF) Projected Sales (CCF) 10/15% 4.976 million 4.571 million 20% 4.586 million 4.213 million 25% 4.261 million 3.914 million 4. Rates will be designed assuming the following allocation of water between indoor and outdoor (irrigation) use. SFPUC System- wide Reduction in Available Supply CPAU Sales (CCF) Indoor Use Outdoor Use (CCF) % reduction over normal year (CCF) % reduction over normal year None 4.946 million 3.134 million - 1.812 million - 10/15% 4.571 million 2.977 million 5% 1.589 million 12% 20% 4.213 million 2.852 million 9% 1.359 million 25% 25% 3.914 million 2.758 million 12% 1.160 million 36% 5. Rates for residential customers should provide an allowance for efficient landscaping through the use of three tiers, if feasible, and should otherwise be based on two tiers. Attachment A 6. Rates for commercial customers should provide an individual baseline allocation representing indoor use (based on winter use in a pre-drought year) and a second tier for outdoor use. 7. Water purchase costs should be passed through directly on the bill as a separate rate component. 8. Evaluate variance processes for customers needing additional water for medical necessity, health and safety, and other critical needs. City of Palo Alto (ID # 5063) Finance Committee Staff Report Report Type: Action Items Meeting Date: 9/16/2014 City of Palo Alto Page 1 Summary Title: Drought Rate Design Guidelines Title: Utilities Advisory Recommendation that the Finance Committee Recommend that the City Council Approve Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study From: City Manager Lead Department: Utilities Recommendation Staff requests that the Finance Committee recommend that Council approve the proposed Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study (Attachment A). The Utilities Advisory Commission (UAC) recommends rewording Attachment A Guideline number Five from “Rates for residential customers should provide an allowance for efficient landscaping through the use of three tiers, if feasible, and should otherwise be based on two tiers” to “Rates for residential customers should provide for efficient use of water for landscaping.” Executive Summary Staff seeks feedback from the Finance Committee and Council prior to commencing a cost of service analysis (COSA) for water rates to use during an extended drought. These rates will be designed to encourage conservation and preserve the utility’s financial stability should the drought continue for an extended period. The attached design guidelines set forth the parameters for the study. The guidelines include citywide demand targets for various levels of mandatory water use restrictions by the City’s water supplier, the San Francisco Public Utilities Commission (SFPUC), and projections of the use of water for indoor and outdoor consumption during a drought. Lastly, the guidelines include recommended drought rate designs for both residential and non-residential customer classes. Any drought rates that result from the COSA would be adopted as a separate rate schedule that could be activated by Council as part of a formal water shortage declaration. The development of drought rates, although not needed at this time, is prudent to ensure that the City has COSA- ATTACHMENT B City of Palo Alto Page 2 based drought rates ready if they are needed to meet water usage targets and maintain the financial health of the water utility in a water shortage. Background California is currently experiencing drought conditions. On January 31, 2014, the City’s water supplier, the SFPUC, called for a 10% voluntary reduction in water use for its retail and wholesale customers. On June 23, 2014, the SFPUC renewed its 10% voluntary reduction request and is expected to continue the request through at least the end of 2014. If the drought continues through the upcoming winter, the SFPUC will likely make these restrictions mandatory, and possibly increase them. The current water rate schedules for the City of Palo Alto Utilities (CPAU) Water Utility are based on the 2012 COSA by Raftelis Financial Consultants. This COSA included rates based on normal year water sales. Higher rates will be necessary to fully fund water utility operations if mandatory water use reductions or voluntary drought-motivated conservation efforts result in decreased water sales. As part of the Finance Committee’s review of the Fiscal Year 2015-2024 General Fund Long Range Financial Forecast, the Finance Committee requested more information on the potential impact on the water utility rate schedule in case of an extended drought. Discussion CPAU customers have responded strongly to recent calls for conservation due to the drought. Water demand for February through June 2014 decreased nearly 17% compared to the same period in 2013. If additional conservation becomes necessary, drought rates will help by sending price signals to conserve. Drought rates are also essential to preserving the financial health of the water utility during an extended drought, since revenue from water sales decreases. Staff has engaged Raftelis Financial Consultants to update the 2012 COSA to include drought rates. Drought Rates and Revenue Recovery The drought has not yet significantly impacted the water utility’s financial position. The utility’s revenues for February through June 2014 were lower than projected in the fiscal year (FY) 2014 budget, but this was offset by higher than budgeted revenue in the preceding months, before customers began taking concerted conservation measures. The drought is anticipated to impact the water utility’s finances for FY 2015, however, and will impact future fiscal years if it continues beyond this winter. The Council-approved Water Utility Financial Plan for FY 2015-FY 20211 anticipates a 10% reduction in revenue due to the drought for FY 2015. It assumes that the drought ends in this upcoming winter and that the revenue loss for FY 2015 can be offset by drawing down reserves. If the drought continues beyond the upcoming winter, however, the utility will experience additional revenue loss in FY 2015 and FY 2016 if the SFPUC’s call for water use reduction is increased from 10% or made mandatory. 1 The Financial Plans were approved by Council on June 9, 2014 (Staff Report 4799). City of Palo Alto Page 3 Figure 1 shows the revenue losses for FY 2015 through FY 2021 if CPAU experienced three more years of drought (calendar years 2015, 2016, and 2017), assuming CPAU did not implement drought rates.2 As shown in the figure, sales are assumed to remain lower after the drought ends because some customers are expected to maintain the conservation measures they adopt. Figure 1: Revenue Loss during a Three Year Drought2 Table 1 shows the impact of a three-year drought on reserves compared to the base case in the Water Utility Financial Plan. The net losses shown in this scenario would rapidly deplete the water utility’s reserves. The adoption of drought rates would prevent this by raising rates to raise additional revenue to offset those losses. 2 The Base Case scenario assumes the rate increases projected in the FY 2015-FY 2021 Water Utility Financial Plan, but no additional increases due to the drought or the imposition of drought surcharges. City of Palo Alto Page 4 Table 1: Impact of a Three Year Drought on Financial Reserves2 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Water Demand (1000 CCF) Base Case 5,384 5,384 5,384 5,384 5,384 5,384 5,384 Drought Scenario 4,887 4,791 4,590 4,734 5,117 5,117 5,117 Difference (497) (593) (794) (650) (267) (267) (267) Net Income ($000) Base Case (835) (1,885) (783) (1,405) (1,933) (2,063) (518) Drought Scenario (1,933) (4,262) (4,268) (4,481) (3,371) (3,575) (2,181) Impact of Drought on Reserves (1,098) (2,377) (3,486) (3,076) (1,438) (1,513) (1,663) Projected Year-end Balance, Operations + Rate Stabilization Reserves Combined ($000) Base Case 13,432 12,547 12,764 13,360 13,426 11,364 10,846 Drought Scenario 12,334 9,072 5,804 3,323 1,951 (1,624) (3,805) Reserve Minimum 6,152 6,272 6,562 7,139 7,470 7,425 7,615 The City may also be able to offset the lower sales revenue with temporary cost reductions. Staff will design the proposed drought rate schedules to enable the adoption of rates up to the level required to cover any revenue shortfalls so that the City would be able to adopt lower rates if temporary cost reductions are put in place. Rate Design: Consumption Targets and Revenue to be Recovered Staff will design rates to fully offset the revenue decreases described above. The rate design methodology will be very similar to that used in the 2012 COSA, but will take into account the changed consumption patterns during a drought and may involve additional tiers, as described below. The first step in the COSA is to identify the target levels of water demand for various levels of drought severity to be used in the COSA. Table 2 shows the demand targets CPAU would be required to achieve under various SFPUC water shortage scenarios. These targets were calculated using the water shortage allocation methodology agreed to by the agencies served by the SFPUC (members of the Bay Area Water Supply and Conservation Agency, or BAWSCA) and written into the Water Supply Agreement. Table 2 also shows the revenue loss associated with each demand target, which is calculated based on the difference between normal year and drought year demand. City of Palo Alto Page 5 Table 2: Estimated Decrease in Sales Revenue under Mandatory Reduction Scenarios SFPUC System-wide Reduction in Available Supply CPAU Purchases (1000 CCF) CPAU Sales (1000 CCF) Estimated Net Income Decrease Assuming No Drought Rates None 5,384 4,946 - 10/15%3 4,976 4,571 $1.5 million 20% 4,586 4,213 $3.1 million 25%4 4,261 3,914 $4.4 million Note that staff may recommend Council activate the drought rates under 10% or 15% water use reduction requests. This is because drought rates are valuable for preserving the Water Utility’s financial position in addition to being a tool for reducing consumption. For example, without drought rates, Palo Alto water consumers have reduced water use by about 17% compared to 2013 since the SFPUC called for 10% voluntary water use reductions. However, if the water use restrictions persisted for an extended multi-year period, even under 10% or 15% reduction scenarios, normal water rates would have to be raised to account for reduced water sales. One advantage of having drought rates is having the ability to communicate that the rate increases are temporary (e.g. “drought rates are in effect, that’s why your bill went up”). Allocation of Reductions between Indoor and Outdoor Use The second step of the COSA will be to determine the demand levels of various customer groups during a drought for the purpose of allocating costs. This will be done by projecting the reductions in consumption expected under each scenario, and how much of the reduction will come from indoor vs. outdoor use to meet the water use reduction targets. Table 3 shows the projections for indoor and outdoor use reductions staff plans to use. Staff assumes that most of the reductions will occur in outdoor (landscaping) use, since indoor use for both businesses and residents is fairly inelastic. The allocations assume a 5-12% reduction in indoor water use compared to a normal year, with the remainder of the reductions coming from outdoor use. 3 Reduction targets for the 10% and 15% reduction targets are identical because of CPAU’s supply guarantee under the water supply contract with the SFPUC. The supply guarantee is high relative to CPAU normal year demand. 4 The 25% target is an estimate by CPAU staff, since the supply contract does not include an allocation methodology for system-wide reductions greater than 20%. The SFPUC operates the Hetch Hetchy system with the intention of making the water supply last through an 8.5- year “design drought” without requiring more than 20% mandatory water use reductions. If tighter restrictions were required, BAWSCA agencies would confer amongst each other and with the SFPUC to determine the allocation methodology. If the allocation methodology produces a substantially different result than what is shown in Table 2, the drought rates for the 25% reduction target would need to be modified. City of Palo Alto Page 6 Table 3: Indoor and Outdoor Allocations of Water SFPUC System- wide Reduction in Available Supply CPAU Sales (1000 CCF) Indoor Use Outdoor Use (1000 CCF) % reduction over normal year (1000 CCF) % reduction over normal year None 4,946 3,134 0% 1,812 0% 10/15%3 4,571 2,977 5% 1,589 12% 20% 4,213 2,852 9% 1,359 25% 25%4 3,914 2,758 12% 1,160 36% For example, as shown in Table 3, to meet a 20% system-wide water supply reduction target, Palo Alto’s indoor water use would need to be reduced by 9% and outdoor water use would need to be reduced by 25%. There are other formulae that could be used to achieve a 20% system-wide reduction, but staff chose the indoor/outdoor reductions represented in Table 3 because they are viewed as fair and achievable. Table 4 shows how the reduction targets would affect individual customer groups. All customer groups would face similar reductions compared to normal year consumption. In practice, most customers will compare their consumption during the drought to their calendar year (CY) 2013 consumption since CY 2013 was the last year before the SFPUC began requesting voluntary reductions in consumption. Details on current and historic consumption as well as projected water use reductions by customer group are provided in Attachment B. Table 4: Projected Reductions by Customer Group SFPUC System-wide Reduction in Available Supply W-1 (Single Family and Individually Metered Multi-Family) W-4 + W-7 (Non-Residential and Master-Metered Multi-Family) Volume (1000 CCF) reduction vs. normal year reduction vs. CY 2013 Volume (1000 CCF) reduction vs. normal year reduction vs. CY 2013 None (CY 2013*) 2,648 - - 2,601 - - None (Normal Year) 2,441 - - 2,505 - - 10/15%3 2,252 8% 15% 2,314 8% 11% 20% 2,075 15% 22% 2,135 15% 18% 25%4 1,929 21% 27% 1,988 21% 24% * 2013 was a dry year and, accordingly, more water was used than expected in a normal year. Rate Design The final step in the COSA will be to create individual rates. Staff proposes creating drought rates that differentiate between indoor and outdoor consumption for both residential and commercial consumption. This is accomplished using tiered rates such that the first tier would represent indoor use and the second tier would represent outdoor use. Since larger reductions will be required for outdoor use than indoor use, the COSA will likely result in larger rate increases for outdoor use (higher tier use) than for indoor use (lower tier use). Staff’s intention City of Palo Alto Page 7 is to design the rates so that customers who achieve the indoor and outdoor reductions requested by CPAU would pay roughly the same as they would if there were no drought. However, customers who fail to conserve will pay more. 1. W-1 (Individually Metered Residential) Rate Design Existing rates for residential customers already attempt to distinguish between indoor and outdoor use for residential customers by using two tiers. Staff recommends a similar two- or three-tier drought rate design for the W-1 customer class. The first tier would represent indoor consumption determined by the average winter usage for the class. The other tier(s) would represent outdoor use. A three-tier methodology would provide an allowance of water to allow customers to protect some of their investment in landscaping and trees and to recognize those customers who have already installed drought-tolerant landscaping. Under a three-tier methodology, the second tier would represent this efficient landscape use. Smaller reductions would be required in this tier. Heavy water users with usage in the third tier would be expected to make more substantial reductions in their third tier usage. The COSA will analyze the reasonableness of the proposed three tiered method. Alternative rate designs staff considered for the W-1 rate class, but is not recommending, are:  Individual allocations (budgets) based on pre-drought consumption. Staff does not recommend this alternative because it fails to recognize customers who reduced their water consumption and implemented water efficiency upgrades and behaviors before the drought was declared. This rate design is also more complex to implement.  Equal percentage rate increases to all tiers. This is the simplest method, but does not recognize the inelasticity of indoor use.  Individual allocations (budgets) based on factors like lot size or the number of people in the household. Staff does not recommend this alternative because it is very complex to implement, expensive to administer and not feasible given the short timeline for developing these drought rates. 2. Non-Residential Rate Design Existing rates for commercial customers do not have tiers due to the administrative complexity of implementing tiers for these customers. Non-residential customers are a less uniform group, and a uniform system of tiers like the one used for residential customers is not suitable during normal conditions. During a drought, however, it is more important to differentiate between indoor and outdoor consumption for these customers because some businesses have substantially less landscaping, and therefore significantly less ability to reduce. Without tiers, these businesses would pay more than businesses with landscaping. To avoid this scenario, staff recommends creating tiered rates with the first usage tier set for each individual customer that represents indoor use. The first tier, or baseline, for each customer could be set to their pre-drought winter water consumption, a reasonable approximation of indoor use. Use up to the baseline level would be charged at a lower rate, City of Palo Alto Page 8 while any additional consumption would be charged at a higher rate. A methodology would have to be developed to set the baseline for new customers (who have no usage history). Staff considered, but does not recommend, these alternative methodologies:  Do not use baselines. With this methodology, the uniform rate for commercial customers would simply be increased to recover all required revenue. Staff does not recommend this alternative because it fails to recognize that some businesses have more landscaping than others, and are more easily able to conserve without affecting their core businesses.  Set the baseline usage for each customer based on their meter size. Staff does not recommend this approach because meter size does not correspond well to consumption for commercial customers.  Set baseline usage levels by business type. This approach is complex and difficult to administer. Individual businesses of the same type (such as a restaurants) can be different sizes, and more detailed methodologies for creating such baselines (such as by number of square feet, tables, or other metrics) rely on data that is not easily available to the utility. Separate Commodity Rate Component Staff also recommends making the cost of purchased water from the SFPUC a separate line on the rate schedule. This is recommended for all future water rates, not just drought rates. This will allow the utility to pass through increases in the water rate charged by the SFPUC and will make these types of increases more transparent to the customer. Lastly, it would allow changes to the rate on short notice, which may be important during a drought. Government Code Section 53756 allows for contractual water supply cost increases to be passed through to the customer without the formal mailing and protest process required under Proposition 218, though 30 days of notice is still required using a bill insert or similar method. Conservation Impacts of Drought Rates A recent economic study5 of the water agencies served by the SFPUC identified elasticities of demand for the customers in each agency’s territory. For the City of Palo Alto, the study found that a 10% increase in water rates would likely lead to a 1.5-1.7% decrease in water consumption. Based on this study, staff estimates that the cost-of-service drought rates proposed by the COSA will likely cause a 1-3% reduction in water consumption. This means that CPAU cannot rely on drought rates alone to achieve its target water use reductions. CPAU has already had success by raising its water conservation rebates and launching an extensive marketing campaign. Water use restrictions on landscaping have also been adopted. Additional restrictions can be put into effect and new marketing campaigns launched if necessary to achieve greater reductions. Drought rates will complement these efforts. 5 Socioeconomic Impacts of Water Shortages within the Hetch Hetchy Regional Water System Service Area, David Sunding, Phd, The Brattle Group, March 13, 2014. City of Palo Alto Page 9 Proposed Design Guidelines for the 2014 Drought Rate COSA The proposed design guidelines for the drought rates (Attachment A) include the primary principle that any drought rate design resulting from the COSA must be based on the cost to serve customers. This principle overrides all other goals that may be desired, but that may not necessarily be cost based. The guidelines include the parameters discussed in this report regarding the target demand reductions that are needed to achieve potential water supply limitations from the SFPUC. The drought rate guidelines also include the recommendation to include the water supply cost component separately on the rate schedules to enable a transparent pass-through of the actual cost of purchased water from the SFPUC. Commission Review and Recommendation On September 3, 2014, the UAC considered staff’s recommendation. Several Commissioners acknowledged staff’s effort to bring this item to them for discussion before proceeding with the rate study. They emphasized that it was important to create a design that was simple to communicate. There was substantial discussion about the tension between fixed charges, which provide revenue stability, and volumetric charges, which communicate a price signal. There were comments regarding the need to preserve landscape investment, and some discussion of the desirability of individual allocations for non-residential customers. The UAC supported most of the staff-recommended guidelines, but there was an extensive discussion of guidelines five and six, which describe the residential and commercial rate designs. Some Commissioners advocated for creating a system of rates with individual allocations of landscape water for each residential customer based on their property characteristics rather than imposing a uniform system of tiers for all residential customers. After discussion the UAC voted to recommend approval of the staff recommended design guidelines, but to amend guideline five to read “Rates for residential customers should provide for efficient use of water for landscaping,” language which allowed for various rate options to be considered. The motion also included an amendment to guideline six to remove the word “excess.” The recommendation was approved by a vote of 3-1 (with Commissioner Waldfogel voting no and Commissioners Chang, Cook, and Hall absent). The Chair of the UAC also appointed a two-member sub-committee, comprising Vice Chair Waldfogel and Commissioner Melton, to review the drought rate analysis as it progressed. The draft minutes from the UAC’s September 3, 2014 meeting are provided as Attachment C. Next Steps Staff intends to have drought rates ready for potential adoption by Council by February 2015. This will allow for their adoption if water shortage conditions continue through this winter or worsen. Resource Impact This update to the COSA will be completed with existing budgeted resources. The drought rate schedules, once adopted, will not take effect unless the Council puts them in to effect as part of a water shortage. If they do, they are expected to recover the cost of operating the utility City of Palo Alto Page 10 when sales are lower during a drought. The proposed rates will trigger the notice and protest hearing procedures required by Proposition 218. Policy Implications The creation of drought rate schedules enables Council to implement them when it deems appropriate, which would typically occur as part of a Stage II or higher water shortage, as set forth in the 2010 Urban Water Management Plan. Environmental Review Adoption of drought rate design guidelines does not meet the definition of a project, pursuant to Section 21065 of the California Environmental Quality Act, thus no environmental review is required. Attachments:  Attachment A: Design Guidelines for Drought Rate COSA (DOCX)  Attachment B: Water Consumption Information by Customer Group (PDF)  Attachment C: Excerpted Draft UAC Minutes of 9-3-14 (PDF) FINANCE COMMITTEE MINUTES Regular Meeting September 16, 2014 Chairperson Berman called the meeting to order at 7:04 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Berman (Chair), Burt, Kniss Absent: Holman ORAL COMMUNICATIONS None AGENDA ITEMS Chair Berman encouraged the community and public watching to apply for the Architectural Review Board, Historic Resource Board, and the Planning & Transportation Commission. 1.Approval of Fiscal Year 2014 Reappropriation Requests to be Carried Forward Into Fiscal Year 2015. Walter Rossmann, Budget Director, requested the Finance Committee (Committee) recommend the full Council approve the annual process of carrying funds forward from Fiscal Year (FY) 2014 to FY 2015. The funds were generally for projects that could not be completed within the initial Fiscal Year either due to contractual issues or the Request for Proposal (RFP) process was delayed. The amount being requested to carry forward was $1.6 million in the General Fund and $800,000 in other Funds. Vice Mayor Kniss asked why there were question marks on the Staff Report. Mr. Rossmann explained the areas darkened and with question marks were Staff’s working areas and were inadvertently printed. The City Manager had approved the reappropriation of funds for the People, Strategy and Operations (PSO) for training and for the Comprehensive Plan. Council Member Burt asked for a status update on the reallocation of funds associated with the business registry. The Staff report noted there were Page 1 of 10 ATTACHMENT C MINUTES other competing priorities where the business registry was unable to be worked on. The business registry was a Council priority and he felt other actions would be informed by the business registry process. Mr. Rossmann stated the business registry certificate program was scheduled to go before the Council on September 22nd. The issue was the Funds did not become available until later in the FY14 so Staff was unable to encumber the funds in time and recommends that the funds be carried forward to FY15. MOTION: Vice Mayor Kniss moved, seconded by Council Member Burt that that the Finance Committee preliminarily approve the Fiscal Year 2014 reappropriations to be carried forward into Fiscal Year 2015 and direct Staff to forward the Finance Committee’s recommendation to the City Council. MOTION PASSED: 3-0 Holman absent 2. Utilities Advisory Recommendation that the Finance Committee Recommend that the City Council Approve Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study. Jon Abendschein, Senior Resources Planner, informed the Finance Committee (Committee) of the proposed drought plans for the City. The San Francisco Public Utilities Commission (SFPUC) has asked for a voluntary 10 percent reduction from all of their wholesale customers. Palo Alto residents and businesses have responded positively to the recommendation with a 15 percent reduction in usage and the City facilities have made a 25 percent reduction. Staff proposed designing drought rate guidelines in the event the drought continued and there was a need for revenue. The Utilities Department felt updating the 2012 Cost of Service Study to include rates for drought conditions was more cost effective than requesting a new study. Staff understood altering a Cost of Services Study was difficult once it was completed; therefore, they were seeking policy guidance. There were a few reasons for having a drought rate available: 1) preserve the Utilities financial position and 2) to send a price signal to make some contribution toward water conservation goals. Drought rates modified or replaced normal rates: 1) there could be a separate set of rates that replaced normal rates or 2) there could be a surcharge on normal year rates. The rates could be implemented when the SFPUC declared a Stage 2 drought alert and could be deactivated when the restrictions were removed. Council Member Burt said depending on which mandated reduction SFPUC implemented the corresponding costs would reflect on the rates. Page 2 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Mr. Abendschein stated yes, that was the goal. If the household or business met the reduction goal their bills would not reflect a change. Vice Mayor Kniss stated Staff mentioned the SFPUC worked with an 8.5 year design drought. She asked where Palo Alto was within that cycle. Mr. Abendschein believed the City was in the second year of the design drought. Vice Mayor Kniss recalled in the early 1990’s there was a long term plan in place and the City was not as sophisticated in dealing with the situation. She asked whether Staff was reviewing the past to learn from the errors made. Council Member Burt noted a lesson learned by SFPUC was not to waste water burning inexpensive hydro in the middle of a drought. Mr. Abendschein acknowledged the SFPUC had made changes and continued to maximize the water benefits rather than the hydro benefits. Staff had an archive of past events and they had been reviewing them for reference. Vice Mayor Kniss stated the drought in the 1990’s was significant and she was pleased Staff was reviewing the events to avoid a reoccurrence. Mr. Abendschein presented a hypothetical customer bill with and without the drought reductions. Vice Mayor Kniss asked what the starting usage point was for determining the customer usage baseline. Mr. Abendschein said the average baseline was the first calendar year prior to the drought. He noted there was a difference in indoor and outdoor water usage. Vice Mayor Kniss shared a concern from a customer who had been conserving for the sake of being prepared so when the review process occurs their rate would not be reflective of a normal use. Chair Berman asked Committee Members to refrain from asking questions until after the presentation because some of the questions may be answered. Page 3 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Mr. Abendschein stated tier 1 users would need to reduce by 9 percent, tier 2 users would need to reduce by 15 percent and tier 3 users would need to reduce by 30 percent. He discussed various reduction rate options for residential and non-residential. He explained the timeline was to receive feedback from the Utilities Advisory Commission (UAC) and the Committee then provide said feedback to the Consultant to begin the analysis during the month of September. Return to the UAC and the Committee with a draft rate schedule and request preliminary approval in December. Herb Borock understood the role of the Committee was to advice Council and not provide advice to Staff. He recalled a few years back Council did not approve a three tier process. John Foster, Utilities Advisory Commission Chair, addressed a point of variation between the UAC and Staff recommendations. Fundamentally there were three points the UAC discussed changing of the Staff recommendation. The first change was agreed upon by the Staff and was made; therefore, was no longer an issue. The second was Staff allowing the Cost of Services Analysis to review three tiers. The third was individual allocations for residential customers. The UAC recommendation was to drop the three tier language and not to recommend the individual residential allocations. Chair Berman clarified the language recommended by the UAC would not preclude three tiers; it was a bit more general. Mr. Foster stated that was correct. The Staff recommendation had the firm providing the Cost of Service Study to look at three tiers. The question was whether or not the firm could review the process without the language and the reply was yes. Vice Mayor Kniss asked if there was a new normal as far as water consumption. She understood that was not a discussion for the table; although she requested the matter be broached. Mr. Foster agreed with the need for a new normal consumption usage. He, the UAC and Staff had discussed the subject of recycled water usage. One of the challenges with that option was the pipe systems. Valerie Fong, Director of Utilities, noted the City Manager was requesting Staff make recycled water a higher priority. Staff was researching available funding sources for such a project. Page 4 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Council Member Burt mentioned the City had a preliminary study on running a recycled water pipeline up Page Mill Road; there was already one installed running down to Shoreline Road. The Page Mill Road project was put on hold five years ago because of objections from the Stanford Research Park with concerns with the total dissolved solids and the salinity of the water. The City had driven their Total Dissolved Solids (TDS) down principally because it was discovered the incoming pipes from Shoreline Road had holes in them and the City was treating salt water. The current TDS was at a level of water quality that there should not be objections for using the water for landscaping. The scheduled TDS for 2015 were comparable to other cities drinking water. The Page Mill Road project was a Public Works project and not that of Utilities. Ms. Fong believed the pipes portion of the project belonged to Utilities although the treatment portion was Public Works. Council Member Burt stated the Santa Clara Valley Water District (SCVLWD) were interested in contributing to the capital costs of recycled system in ways similar to where they have in other areas of the Water District. The outstanding question was whether to perform reverse osmosis treatment rendering the water basically drinkable which was what the City of San Jose had just begun. The decision was a major policy discussion that would approve or prevent the moving forward. Vice Mayor Kniss agreed the discussion was not the issue but the decision o use water in the correct way. Council Member Burt said although the recycled water projects may not affect the current recommendations it was a subject that needed to be on the table. He asked whether there was a decision made on right-of-way tree watering during droughts. Mr. Abendschein stated he would research and return an answer to the Committee at a later date. Council Member Burt requested Staff provide the response to the full Council via electronic. He asked about indoor reduction opportunities. The primary reduction opportunity was outdoor landscaping but he asked whether Staff reviewed what reductions there might be with best practices including changed in appliances. Page 5 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Mr. Abendschein stated there were quite a few programs in the area of appliance exchange. Catherine Elvert, Communications Manager, noted it would be difficult to determine a percent reduction for indoor water use versus outdoor without further analysis. Staff discussed with the Council how the population had increased by approximately 14 percent with a reduced water usage of 4 to 6 percent. Council Member Burt corrected the water reduction had been closer to 35 percent. Ms. Elvert explained there were a variety of efficiency programs for indoor water use including rebates and free surveys. The programs were offered to residential and commercial customers. Staff could review the total citywide aggregate water use for indoor consumption versus outdoor and return to the Committee with further analysis with the potential. She noted there would likely be a greater potential in the residential sector then the commercial. Council Member Burt agreed there was an interest and felt there would be interest in different levels of implementation. He believed there was a good amount of indoor opportunity for reduction but he was unaware of the percentage and what it would take to achieve it. Whether there was a new normal of available water, which may or may not happen, the City should be thinking of a new standard on their own of the amount of water consumed for other reasons; less damage to natural water ways or other reasons to state these were sustainability goals of Palo Alto. He asked out of 20 years we have had what percentage increase in the population in the City, what percentage reduction in potable water use and also what percentage reduction per capita. Jane Ratchye, Assistant Director of Utilities, stated the 2015 Urban Water Management Plan was being released soon and many of the questioned being asked including the analysis would be performed in the Plan. Council Member Burt asked if the Plan was the appropriate place to bring up matters such as gray water and billing code related changes. Ms. Ratchye stated yes, the Plan should cover all of the potential water sources discussed. Page 6 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Council Member Burt was pleased the information included in the utility bill was reflective of the context of reduction and conservativeness I simple terms. Chair Berman asked for clarification on the law stating the City could only account for 30 percent of fixed costs through fixed fees. Mr. Abendschein clarified it was not a law although it was a best management practice from the California Urban Water Conservation Council which the City was a signatory of. Chair Berman asked was it because of that the fixed costs do not change and as the variable amounts of water use changes needed to be accounted for in the fixed rates. Ms. Fong explained basically all costs were fixed. The City recovered the costs through part volumetric and part fixed cost rates. The goal was to balance through a conservation signal and still recover all of the costs which were fixed. Chair Berman attempted to sum up the Utility strategy. The first tier of water used tended to be for indoor water usage. There was not a large amount of opportunity to cut usage, and because of that there would not be a significant cut. The next tier was outdoor use which had a greater opportunity to cut through certain available measures; therefore, the cost was increased in the third tier. The idea of the size of the lot did not correlate to the usage of water which was the driving force for the three tier approach. Mr. Abendschein agreed Chair Berman relayed the process correctly. Council Member Burt misunderstood the comment of the entire City’s costs were fixed. He believed the rates were set by SFPUC for the commodity. Ms. Fong acknowledged she may have over simplified; although, even the SFPUC costs were fixed. Council Member Burt agreed the SFPUC costs were fixed but the City’s costs from there were not. Ms. Fong said that was correct. Page 7 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Ms. Ratchye expanded on the fixed rates from SFPUC. Whether the fees were paid in advance or later the costs were fixed. San Francisco’s costs were fixed if people used a lower amount the City paid those costs to San Francisco. Council Member Burt asked if the City had no reduction in usage and San Francisco increased the rates, if San Francisco increased the rates and all customers had a proportionate across the board reduction of 13 percent; based on the 10 to 15 percent rate increase, the commodity rates remained the same. If the consumption was dropped by 25 percent in Palo Alto but only 5 percent in another city Palo Alto would have a lower commodity cost. Ms. Ratchye agreed, the cost related to the amount of savings Palo Alto had relative to other cities. But, if all of the cities saved the same amount it was fixed. Council Member Burt agreed the SFPUC costs were fixed although how they allocated the fees was based on the cities consumption. Vice Mayor Kniss said water was a scarce recourse but she expressed the considered 8 year drought may not be over at that anticipated time. She stated the water conservation needed to be looked at on a regional level and her understanding was Palo Alto was doing well. Mr. Abendschein stated over the past decade the Palo Alto residents has decreased consumption by more than other Bay Area cities. Vice Mayor Kniss understood where the City needed to go although she expressed there would be residents speaking out about their conservation versus higher rates. Ms. Fong was aware of the conflict between rates and consumption. During the review of the Cost of Service Study Staff would be looking at the users who used the least and the goal would be to impact them the least. Vice Mayor Kniss suggested a Public Relations campaign to personalize the acknowledgement of consumption. Council Member Burt noted Council Member Klein made the assertion that even though the City had greater reductions than other jurisdictions, on a per capita basis Palo Alto was still at the higher end of SFPUC customers. Page 8 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES Which did not necessarily give clarity on whether Palo Altans were water guzzlers or not. He was not certain what Council Member Klein was referring to when looking at total water versus night time population when the City had a much higher daytime population than other jurisdictions. He would be interested in the upcoming Master Plan meeting so that Council and the Community began to understand context, and what the true baseline comparison was versus other cities in the region. Ms. Ratchye explained the per capita number was based on residential usage only. The calculation was residential usage divided by the nighttime population. She believed there were only 4 other cities higher than Palo Alto. Palo Alto also had higher than normal lot sizes. Council Member Burt felt Redwood City and Menlo Park would be valid comparisons for water usage, lot sizes and house size. Chair Berman asked the percentage the City cuts its usage of water in the past year. Mr. Abendschein stated 25 percent cumulative savings over the previous year since February of 2014. Chair Berman said that was City operations. He felt it was notable the City was reducing water usage as they were requesting the community to. Mr. Abendschein mentioned the City began utilizing recycled water at the Municipal Golf Course and exchanged plantings for drought resistant greenery. Those were two examples of how the City improved their water consumption. MOTION: Vice Mayor Kniss moved, seconded by Chair Berman to recommend the City Council approve the proposed Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study as shown in Attachment A of the Staff report. MOTION PASSED: 3-0 Holman absent FUTURE MEETINGS AND AGENDAS Lalo Perez, Director of Administrative Services stated the next meeting was October 7, 2014. Page 9 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 MINUTES ADJOURNMENT: The meeting was adjourned at 8:19 P.M. Page 10 of 10 Finance Committee Regular Meeting Minutes 9/16/2014 EXCERPTED FINAL MINUTES OF THE SEPTEMBER 3, 2014 UTILITIES ADVISORY COMMISSION MEETING ITEM 5 (PREVIOUSLY ITEM 3): ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Approve Design Guidelines for the 2014 Water Utility Drought Rate Cost of Service Study Abendschein said staff was seeking feedback on a set of guidelines for a cost of service study for drought rates, with the goal of aligning the rate designs with policy guidance to the extent possible while respecting cost of service limitations. Drought rates are used to replace lost revenue associated with reduced water consumption and to send a price signal for customers to reduce consumption. Drought rates are one tool to manage the utility’s financial position during a drought. Other tools include temporary cost reductions and use of reserves. Abendschein summarized the design considerations included in the guidelines, including ensuring that the rates are cost based, reflect the required consumption reductions, minimize business and landscaping investment losses, provide adequate water for personal use, and are flexible and easy to implement. He then gave an overview of the key rate design components of the proposed guidelines, including the separation of the commodity portion of the rate from the non-commodity portions, tiered non-commodity rates for commercial customers, and a third tier for residential customers. PUBLIC COMMENT: Susan Rosenberg, a Board Member of Canopy, spoke regarding the staff proposal. She said Canopy was concerned that the proposal’s sole focus on conservation and financial stability did not take into consideration the impact of the proposal on trees. Canopy considered trees to be the most valuable part of the urban landscape that were not heavy water users and provided most of the benefits of the urban landscape. Ms. Rosenberg questioned the distinction between indoor and outdoor uses of water to determine what was “wasteful” and argued trees were not wasteful uses of water. She asked that staff explain the mechanism by which a third tier would enable customers to maintain their investment in efficient landscape investment. She said that in the past Canopy had advocated for an allocation-based methodology of determining water rates similar to the methodology used by the Irvine Ranch Water District. She wanted to know how long it would take to implement such a program and how much it would cost. She asked that the City undertake a citywide marketing campaign focused on preserving trees, and that the City’s Arborist be included in discussions regarding the drought. ATTACHMENT D Resident Herb Borock commented on the staff proposal. He said with drought rates the utility had to balance conservation and cost of service. He agreed that a three tier pricing methodology was an appropriate strategy to look at and he recommended using the three tier proposal previously discussed by Council which had been rejected when a resident with a large lot complained about it. Mr. Borock talked about the portion of the proposal involving passing through the supply cost, saying the lower tiers would be more heavily affected by such a strategy and that one way to manage that would be to use a fixed charge to recover distribution costs. He suggested that the discussion regarding the urban forest should take place in the context of a discussion of basement dewatering. He said the rate schedule should not vary based on the number of people or size of the landscape as these were personal choices and not reason for higher water allocations. The Commissioners generally appreciated the opportunity for UAC input prior to a cost-of- service study (COSA). Commissioner Eglash appreciated that one of the design considerations listed in the guidelines was to minimize landscape investment losses and he recognized the value of trees in Palo Alto. He supported a structure that was easy to communicate as rate increases are difficult enough to communicate during a drought. Commissioner Eglash also stressed that drought rates should not produce a revenue windfall and ratepayers should not pay more in absolute dollars than they would have if there had not been a drought. He noted the SFPUC may also need to raise its rates due to the decreased consumption and the new rate design should take into account any need to pass through those increases as the drought proceeds. Commissioner Melton said one of the big challenges in designing these rates will be that revenue stability is achieved through fixed charges but price signals are achieved through variable charges. Balancing those two effects was a challenge the UAC always faced with water rates. He was encouraged that the high level objective was keeping the fund solvent in the face of drought use reductions. Rates, reserves and other tools would have to be used to make sure the fund was kept on a sound basis. He said any conclusions from this COSA would likely carry over to future normal year rates. The City should think far enough ahead to understand the impacts of any pricing scheme on non-drought years. Commissioner Cook agreed that messaging was important because it was difficult for people to understand why their bills do not decrease when they conserve. He asked how rates were designed to differentiate between indoor and outdoor usage given that there was only one meter and Director Fong explained it came down to a comparison of winter vs summer usage. Commissioner Cook said it was important to incorporate comments from Canopy and other stakeholders. He agreed it was a good idea to use a separate commodity rate component because it would make it clear how much of the rate increase came from the SFPUC. Vice Chair Waldfogel said he was forced to disagree with some comments from colleagues. He mentioned that the president of one of Palo Alto’s garden clubs had intended to be here, but was unable. He was concerned that two years ago staff completed a COSA and that costs had not changed in that time, but instead revenues had fallen. He said that if a 10 or 15% change in demand undermines a COSA it brings into question the quality of the rate study. He said under pricing structure previously adopted there had been unwillingness to set fixed charges equal to fixed costs. He was not recommending doing that, but the consequence was that a reduction in demand sends revenues below cost. Vice Chair Waldfogel’s opinion is that the original COSA was still valid and that we should be having a pricing discussion within the existing COSA, not a new COSA. He also felt that the community would be concerned that we were willing to do individual allocations for business customers but not for residential customers to accommodate landscaping issues. He said given the huge variations in lot sizes setting arbitrary limits and saying anything above that level was wasteful was not an accurate way to portray water use. The consequence was that trees and other landscaping would die. Abendschein said the basic structure of our costs had not changed. The COSA from two years ago had not incorporated a drought scenario. This was not a new COSA but an update to the previous COSA to include drought level consumption and rates necessary to cover costs. Vice Chair Waldfogel said that meant that the pricing used in that COSA was too sensitive to demand. He agreed that the financial viability of the fund was important, but it did not mean there was a cost analysis problem, it was a price analysis problem. Commissioner Melton said that once the COSA was established, deviating from it was not a good idea. If the COSA did not include rates that worked during the drought, then it was insufficient and a new COSA was necessary. Vice Chair Waldfogel said the COSA set the amount of revenue to be collected from fixed versus variable charges. He said if the COSA could not survive relatively small changes in demand it called into question of whether the City was on the right track with this study. Abendschein said staff was comfortable with the COSA under normal conditions. It needed something added to address an extended water shortage. Every agency struggled with the issue of collecting fixed costs through variable charges. There was a constitutional mandate to not waste water. The California Urban Water Conservation Council which includes advocacy groups and water utilities established best management practices for water agencies. One of these practices was that no more than 30% of fixed costs should be recovered through fixed charges. The way other agencies dealt with lost revenue in a drought was to have different rates for different drought scenarios. Roseville was one example of an agency with that practice. What was being proposed tonight did not call into question the validity of the previous study. Abendschein said the goal tonight was to get feedback from the Commission, and if the balance between fixed and variable costs was not what they hoped to see, this was the time to get that feedback. Chair Foster asked whether it made sense to achieve resolution now. He asked if anyone wanted to recommend anything other than the staff recommendation. Commissioner Cook asked how the rates would revert to normal rates if it rained. Abendschein said staff intended to get the rates designed and ready for adoption, and if it rained in December the rates would not be adopted and would instead be adopted in June. Commissioner Cook asked about the mechanism for reverting to normal rates. Abendschein said that the rates would go through the Prop 218 process and be ready in case of a drought. The trigger for activating them would be the declaration of drought conditions by the SFPUC, and the trigger for deactivating them would be the end of that declaration. Commissioner Eglash questioned staff on the purpose of this action item to approve guidelines and considered it unprecedented to have the UAC or Council approve design guidelines. Abendschein pointed to other examples of UAC review and approval of design guidelines, such as the Palo Alto CLEAN program. Abendschein also explained how the guidelines would form the basis for the COSA and it would be challenging to deviate from the COSA after the fact. Director Fong reminded the Commission that staff had been criticized in the past for not providing the UAC an opportunity to provide more definitive action prior to completing a rate analysis. Commissioner Melton agreed and said he was a supporter of UAC input early in the process. Commissioner Eglash explained his concerns with the guidelines as presented and his main issue with Attachment A were items 2a through 2i and what implications they had for rate design. Abendschein explained these items were a restatement of policies already included in the Urban Water Management Plan and that none of these items implied a specific rate design. They were broad goals that staff was to keep in mind when designing rates. When staff returned with a rate design, they should be able to explain how that rate design is consistent with these goals. Commissioner Eglash also had a concern that there was a disconnect between the presentation and the guidelines. For example, the presentation said one goal was to achieve the water use reductions mandated by the SFPUC, but the guidelines did not talk about that at all. Director Fong said she thought the presentation and guidelines were fairly similar, noted several bullets that were identical, and pointed out that guideline three discussed the need to achieve water use reductions, but she invited recommendations for changes. Commissioner Eglash said he interpreted guideline three to mean that the rates should be designed to cover costs in the event usage dropped to those levels, but that using rates to achieve those mandated water use reduction levels was something different. Abendschein agreed that the presentation could be worded better, and that the intent was to communicate in the presentation that guideline three was intended to mean that rates should be designed to cover costs in the event usage dropped to those levels, not that the rates would be designed to achieve those levels. Vice Chair Waldfogel said that the staff report had documented that price signals were not the primary mechanism for achieving the reductions. He said the report noted a price elasticity of - 0.15 to -0.17, which was a bit higher than he had seen in other studies for water rates, but not high enough to achieve the required reductions on their own. Director Fong noted that the water use reduction levels noted in guideline three were from the water contract with the SFPUC. They represented the water consumption allocated under the drought formula and Chair Foster said guideline three could be reworded to reflect that. Vice Chair Waldfogel and Commissioner Eglash debated how conservation signals and design of rates to reflect the level of water use reductions should be handled. Further clarification that the rate design was intended to collect the revenue requirement and was not intended to be the primary mechanism for achieving water use reductions, thereby potentially over-collecting revenues, resulted in Commissioner Eglash’s withdrawing his objections to the guidelines. Chair Foster said there were three options: first, recommend the staff language, second, provide some general guidance to staff on changes, but not specific language, or third, provide staff with specific language. Commissioner Eglash said he was now willing to recommend Attachment A (the design guidelines) as written. Vice Chair Waldfogel said he would not support the design guidelines as written. He would support it with two changes. Guideline five should say “Rates for residential customers should provide an allowance for efficient landscaping,” without saying anything about the number of tiers to be implemented. The number of tiers should fall out of costs and be cost driven. He also wanted to change “commercial customers” to “all customers” under guideline six and remove the word “excess.” Commissioner Eglash said he would not support the changes. He said rate design could be an important part of encouraging conservation. It was important to speak to tiers in guideline five because all landscaping was not equally important. He said that trees were a longer term investment requiring only a modest investment of water. Shrubs and lawns were a lower priority. He thought that weakening guideline five would make it too easy for people to keep all of their landscaping, and this was not the right approach during a drought. He supported guideline five as written. He thought they recognized the need to preserve trees during a drought. Director Fong said staff agreed with deleting the word “excess” in guideline six. MOTION: Chair Foster moved, seconded by Commissioner Eglash, to approve the staff recommendation with the removal of the word “excess” from guideline six. SUBSTITUTE MOTION: Vice Chair Waldfogel moved, seconded by Commissioner Melton, to approve the staff recommendation with the following amendments: 1) modify guideline five so it reads “Rates for residential customers should provide an allowance for efficient landscaping,” without the subsequent language regarding tiers, 2) change “commercial customers” to “all customers” under guideline six, and 3) remove the word “excess” from guideline six. Commissioner Melton said he had seconded the motion, but suggested to Vice Chair Waldfogel that guideline six not be modified. They were not in a position to do individual allocations for each residential customer. Vice Chair Waldfogel said it was important to acknowledge different levels of reasonable landscape water use for smaller and larger lots. Setting the same tiers for all customers would result in the acceleration of dying landscape. He was already seeing both brown lawns and stressed trees around his neighborhood. He thought they were on track to accelerate this trend, and that there would be backlash from the community if there were individual allocations for commercial but not for residential customers. Commissioner Eglash said that the individual allocations for commercial customers mainly had to do with economics, not landscaping. Vice Chair Waldfogel agreed. He said this was about protecting the capital base of the city and the landscape investment. He asked if other Commissioners had a suggestion on how to capture his comments regarding capturing number of people and lot size in residential rate design. Commissioner Eglash said that the word "excessive" in guideline six was unfortunate, and really the discussion was just about a second tier for landscaping. He asked whether staff had considered ways to deal with unusual landscape situations. Abendschein said that guideline eight regarding variances addressed some of those concerns. He noted that non-residential customers were far less homogeneous than residential customers, and that the only way to make a distinction between indoor and outdoor use for non-residential customers was via individual allocations for indoor outdoor use. The indoor use represented the business use of water. Vice Chair Waldfogel said he understood that argument, but still thought it would rub people the wrong way. Given the recent concerns about development in Palo Alto and the impact on neighborhoods, he thought that individual allocations that potentially might reflect businesses loading 8-10 people per thousand square feet versus 6 people per thousand square feet into a commercial space might rub people the wrong way. He did not want to support that in the context of all the other land use discussions going on in the community. Commissioner Melton said that to him, Vice Chair Waldfogel's proposed edits to guideline five meant that, for residential customers, an allowance for efficient landscaping would be required, which would take into consideration lot size. That data was in the City’s database. Lot size was a relatively good measure of landscaping. Commissioner Eglash said that such a revision to guideline five turns the intent of the guideline on its head. He said that although the guideline used the word “allowance,” the intent of the third tier was to be a higher rate that would provide a disincentive for using water for landscaping. Vice Chair Waldfogel said the rates still had to be cost based. He said the cost basis for that tier would fall out of the COSA if there were one. All of the elasticity studies he had seen said that the largest users were the least price elastic consumers, so to create an incentive for them to reduce would require a high rate. This would lower the rate for low users, the ones with the highest price elasticity, sending them a price signal to use more. Commissioner Eglash was sympathetic to Vice Chair Waldfogel’s concerns, and the concern that there might be some unusual situations that required special consideration, but he was concerned that the modifications being proposed to the design guidelines would be a disaster for water conservation. He thought it would lead to too much bad behavior by too many people. He said Vice Chair Waldfogel was trying to engineer the rate structure to provide a small benefit to a small number of people and it would cause an overwhelming number of people to do the wrong thing. He thought they really did need a third tier that was moderately, not extremely, more expensive than the other two tiers. Chair Foster said he did not support removing the language regarding three tiers, but asked whether removing it would really affect the outcome of the rate study. Commissioner Melton asked whether tiers were even the only way to do it. Chair Foster said he was asking a slightly different question. The revised language said “Rates for residential customers should provide an allowance for efficient landscaping.” Commissioner Eglash said that was an ambiguous sentence because of the word allowance. If that sentence were rewritten to say that the rates should provide an incentive to water landscapes efficiently, to use less water, that would be one thing, but as worded, without a reference to tiers, it could be interpreted to mean that customers should be allowed to water their landscaping like crazy, and that was not what was intended. Chair Foster said that was an intriguing point. He was trying to figure out whether staff needed the reference to three tiers in the guidelines in order to implement a three tier rate structure. Abendschein thought the wording left open a range of other possibilities. It did postpone the discussion the UAC was currently having until the rate study was completed. Commissioner Eglash asked staff to elaborate on the word “allowance.” Abendschein asked whether there had been some previous discussion of wording saying “Rates for residential customers should provide for efficient use of water for landscaping.” Vice Chair Waldfogel said this wording put the city on a slippery slope. “Efficient” and “excess” were two sides of the same coin. The fact was, the City was already seeing a great response to its calls for action without changing any prices. He said the price signal was superfluous. The community was being responsive, perhaps excessively responsive with respect to trees and landscape. Now the discussion was about recovering from that response. Commissioner Eglash said it was a feature of rate structures statewide that fixed costs were not fully recovered through fixed charges. To do so would send the wrong price signals. That bridge had been crossed many years before. Vice Chair Waldfogel said he was not arguing to change that. The last COSA had settled on charges that had gone too far for some people and not far enough for others. Now the point was to develop prices that would withstand a decrease in demand, and to decide what other efficiency programs were needed to achieve the required reductions without destroying the entire urban forest and urban landscape. Commissioner Eglash said there was no scenario where the rates would become significantly more aggressive than they are. He did not want to do anything to convey a desire to roll back the fact that current rates send a price signal and that the City might want to send a slightly stronger price signal. He did not want to paper over a disagreement, and thought it might be getting toward time to indicate to the Council that there is disagreement among UAC members. Chair Foster asked if it would be possible to indicate to Council agreement on the staff recommendation but a split vote on the wording of guidelines five and six. Director Fong said there was no decision if there was a 2-2 vote. The UAC could break the other language out from the main motion. Mullan said there were two motions pending to be dealt with. Vice Chair Waldfogel asked Commissioner Melton to reiterate his previous suggestion regarding guideline six. Commissioner Melton said he suggested leaving guideline six as it was and removing the word “excess.” Vice Chair Waldfogel asked whether he would be willing to remove guideline six altogether. Commissioner Melton said that would leave no guidance with respect to commercial customers. Vice Chair Waldfogel said it would indicate a desire to leave commercial rates structured as they currently are, with a single tier. Commissioner Melton said the City had to change that due to drought conditions. Vice Chair Waldfogel said with all the other discussions about development going on he did not want to support a proposal that would lead to lower rates for businesses with 80 people sitting in a small amount of space. He thought that was untimely. There was a discussion going on about retail spaces Downtown becoming offices and office spaces becoming more heavily used than had been anticipated when they were permitted. By setting up these individual allocations the UAC was stepping into that land use debate and he did not want to do that. Chair Foster asked whether there was additional text Vice Chair Waldfogel could suggest adding to guideline six to address those concerns given the diversity of consumption patterns mentioned previously by staff. Vice Chair Waldfogel said it was a defined customer class and it was not the UAC’s problem if it had a lot of diversity. Chair Foster asked whether it would make sense to remove the language regarding individual allocations from guideline six but keep the reference to tiers. Commissioner Eglash did not think guideline six was relevant to the issue of densely populated buildings. The intention of staff was to make it a bit more difficult for commercial facilities with large lawns to continue to water them seven days a week, while not affecting their winter water consumption. Vice Chair Waldfogel recommended an allocation based on the square footage and density of the planned occupancy. Commissioner Eglash said the virtue of the staff proposal was that it worked for other types of occupancy as well. There were industrial operations and retail space. Staff did not want to come up with 1800 different types of allocations, instead basing it on winter water consumption for all customers. Chair Foster asked what Commissioner Melton’s concern was regarding the language of guideline five. Commissioner Melton said he was comfortable with the language mentioned by staff earlier in the meeting. He was trying to provide more flexibility so that staff could consider allocation-based rates in addition to tiers. Commissioner Eglash said the problem with that approach is that it would postpone the discussion until after the COSA was done. SUBSTITUTE MOTION: Chair Foster moved, seconded by Commissioner Eglash, to approve the staff recommendation with the following amendments: 1) modify guideline five so it reads “Rates for residential customers should provide for efficient use of water for landscaping,” and 2) remove the word “excess” from guideline six. Chair Foster said he would nominate an ad hoc subcommittee with Commissioners Eglash, Melton, and Waldfogel to work with staff on the rate design, which would provide Commissioners Melton and Waldfogel the opportunity to comment on staff’s proposed designs. He asked whether the absence of the words “three tiers” would prevent staff from pursuing a three tier structure. Abendschein said the language provided enough leeway to staff to pursue different rate structures. Commissioner Eglash said he was not available to be on the subcommittee. Chair Foster said the ad hoc subcommittee would only include Commissioners Melton and Waldfogel. ACTION: Motion approved (3-1, Vice Chair Waldfogel “no” with Commissioners Chang, Cook and Hall absent) Commissioner Melton asked what the next steps were and whether the guidelines would go to Council. Abendschein said the proposal would go to Finance Committee on the 16th. They would have to discuss with the Finance Committee whether it made sense to send the guidelines to Council. Chair Foster appointed an Ad Hoc Committee of the UAC consisting of Commissioners Melton and Waldfogel to work with staff on rate design issues. City of Palo Alto (ID # 5218) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Staff’s Follow-up Response to Inventory Audit Title: From Finance Committee: Staff's Second Follow-up Response to the Inventory Management Audit From: City Manager Lead Department: Administrative Services Recommended Motion The City Council approves staff’s updated response to the Auditor’s Inventory Management Audit. Recommendation Staff requests that the City Council approve this updated response to the Auditor’s report on Inventory Management. The updated response addresses questions and concerns raised by the Finance Committee at its February 18, 2014 meeting. It was discussed again by the Finance Committee on October 7, 2014 and they passed a motion to refer the response to the full Council for adoption upon Consent. (See October 7 Meeting Minutes, Attachment A.) Background and Discussion On February 18, 2014 the City Auditor presented to the Finance Committee the results of its Inventory Management Audit. At that meeting, Council members raised several questions and concerns and asked staff to return in six months with information to speak to those concerns. Staff (after being delayed at the Committee’s request due to Members’ availability) returned to the Finance Committee on October 7, 2014. Attachment B is CMR #5003 with attachments which was presented to the Committee. The Finance Committee approved the updated response and passed the following motion: MOTION: Council Member Berman moved, seconded by Vice Mayor Kniss, to recommend the City Council approve the City Auditor’s Inventory Management Audit. Staff appreciates the Council’s consideration. Attachments: City of Palo Alto Page 2  Attachment A: Finance Committee Minutes from October 7, 2014 (PDF)  Attachment B: CMR #5003 - Updated Staff Response to Inventory Audit (PDF) FINANCE COMMITTEE MINUTES Regular Meeting Tuesday, October 7, 2014 Chairperson Berman called the meeting to order at 7:02 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Berman (Chair), Burt, Holman, Kniss Absent: Oral Communications None. Agenda Items 1. Staff's Second Follow-up Response to the Inventory Management Audit. Chair Berman advised that the Finance Committee (Committee) directed Staff to return with the item after six months. He had continued the item so that all Committee Members could be present. Lalo Perez, Administrative Services Director, recognized the importance of the audit and emphasized issues identified in the audit. Staff was making good progress and had addressed approximately 80 percent of recommendations. The Administrative Services Department (ASD) was working closely with Public Works, Utilities, and Information Technology (IT) Departments to address issues identified in the audit. Staff identified four key areas in the audit report. The first area was communicating policy and procedures Citywide through training and outreach to all Departments. All Departments were collaborating to implement changes which would increase accountability. A second area was tracking materials outside the system. The third area was identification of and explanation for slow moving and obsolete stock. The last area was security and turnover of inventory. Joe Saccio, Administrative Services Assistant Director, reviewed changes provided at-places for the Detailed Revised Inventory Management Implementation Plan contained within the City Manager Report (CMR). Page 1 of 9 MINUTES Some recommendations could not be evaluated until other recommendations had been implemented. The first task was to create Citywide policies and procedures. Policies and procedures were clear, assigned responsibilities and roles, and included steps to manage inventory. All positions responsible for managing inventory were identified. The Committee had expressed interest in tracking materials. Staff had relied on SAP and other existing systems to track stock; however, Staff would evaluate the adequacy of systems and determine whether to move more items into SAP for tracking. Transformers would not be tracked through SAP, but through an existing system. The Utilities Department would evaluate whether to track transformers through SAP in the future. Any material determined to be obsolete or unusable had been deemed surplus. Staff reviewed items more than one year old and more than three years old to ensure they were useful. Staff also assessed inventory levels. Quarterly reports would identify inventory turnover and slow-moving stock so that appropriate action could be taken. Physical security had been increased. The number of employees with access to the warehouse was greatly reduced. Cameras and card locks were instituted at the Water Quality Control Plant (WQCP). New policies and procedures would be issued on October 31, 2014 with compliance required beginning October 31, 2014. Staff considered new technologies, but determined SAP was more than adequate for the City's purposes. Once all policies and procedures were implemented, Staff would assess whether additional Staff and space were needed. Mr. Perez advised that Staff would customize procedures for areas identified as exceptions. In areas where Staff could not implement dual controls, Staff would identify those areas and state why dual controls could not be utilized. Mr. Saccio indicated the report was thorough and contained many details. The auditor emphasized a need for inventory policy for all Departments. Staff accomplished that through policies and procedures. Training would be instituted with Departments. Because Audit Staff was preparing an audit of meters, Staff did not include as much detail about meters in the report. Valerie Fong, Utilities Director, committed to safeguarding and managing inventory. Staff agreed with audit recommendations and made both minor and major changes throughout the organization. Staff improved controls through forms, workflow, and authorizations; improved security of inventory through restricted access and physical locks; provided employees with more SAP training; and improved interdepartmental and intradepartmental communications. Dave Yuan, Senior Management Analyst, reported that an audit of electric, gas, and water meters would be finalized by December 2014. The City had Page 2 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES approximately 6,000 utility poles across the City and 150 in inventory. Utility poles were ordered and tracked through SAP, stored and delivered at a substation, and counted and reconciled quarterly. The City had approximately 3,000 transformers on poles and approximately 400 in inventory. Because of the long lead time required to obtain transformers, Staff maintained a higher than normal percentage of transformers in stock. Transformers were ordered in SAP, stored in the Municipal Services Center (MSC) yard, tracked in Access, and counted and reconciled monthly. For stock used on a regular basis, Staff installed a card-access door to the area and restricted access to supervisors, leads, linemen, and warehouse personnel. Utilities Staff coordinated with other Departments to ensure adequate inventory and to be aware of changes in standards and policies and procedures. Council Member Holman noted 600 utility poles Citywide and 150 in inventory. 25 percent in inventory seemed excessive. Mr. Yuan clarified that there were 6,000 poles Citywide. Staff maintained 3 percent inventory for poles and 10 percent for transformers. Council Member Holman inquired whether any contractors had access to the warehouse. Mr. Yuan stated only City employees. Mr. Perez advised that Public Works would provide more information on access. Ms. Fong noted that access would be given to crews who have to respond during emergencies. Lisa Bolger, Chief of Staff, indicated IT inventory moved quickly. IT had a storage cage at the warehouse where only warehouse Staff had card access. Only six people within IT could reserve non-valuated stock items through SAP. Staff implemented procedures for reservations and leveraged SAP for inventory management and control. Any items valued greater than $100 were listed in SAP. Equipment and assets were properly secured and monitored. Better safeguards were instituted to ensure adequate inventory. Vice Mayor Kniss asked if six IT Staff had access to storage. Ms. Bolger clarified that six IT Staff could make reservations for and receive equipment. Page 3 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Mr. Saccio remarked that access to the warehouse had two layers; the entire warehouse and restricted areas. Vice Mayor Kniss recalled 71 access cards had been outstanding for the warehouse at the time of the Audit Mr. Saccio reported staff members now had slightly more than 40 access cards. James Allen, Water Quality Control Plant Manager, developed policies and procedures and supported additional security at the WQCP warehouse. For non-valuated emergency repair parts, Staff now had to check parts in and out of SAP. The WQCP warehouse was changing from an open style to a closed style. Staff would monitor for changes to work output and productivity. Mr. Saccio advised that once all policies and procedures were implemented, Staff would assess the need for additional Staff. Vice Mayor Kniss remarked that if Staff requested funding for additional employees, the Committee would want justification for any new positions. She assumed that greater use of SAP would reduce workload. Mr. Perez explained that more controls resulted in more manual and system interventions. Now, Staff had more steps to follow and more steps to document. Staff would assess whether additional positions were needed to utilize all new controls. Council Member Holman suggested an increase in efficiency would decrease the need for additional employees. If Staff requested additional positions, they should be prepared to provide details and a justification. James Keene, City Manager, reported that Staff would consider new positions in the Fiscal Year 2016 Budget. He would request Staff research whether increased reporting, accountability, review, and transparency could be accomplished with existing staffing. New requests for information and new tasks were being placed on existing Staff daily. Staff had to work more hours or delay some tasks to complete others. He wanted to compare the benefits and costs of additional employees. Council Member Burt commented that any increase in labor should include an analysis of savings. System efficiencies, reduced waste, and reduced cost of funds were gained from implementing procedures. He hoped Staff would consider the full picture of costs and benefits. Staff should compare costs and savings and avoid spending $100 to save $1. Page 4 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Council Member Holman did not wish to overwork employees. However, more efficiency allowed more productivity and might even increase staff satisfaction Staff should weigh all aspects. Vice Mayor Kniss suggested Staff consider some balance between streamlining of automated systems and additional documentation. Mr. Perez agreed that Staff would need to prove that an investment in additional Staff was worthwhile. Chair Berman concurred with Staff waiting to assess the need for additional positions. IF Staff wished to discuss additional employees, then they would know what to expect from the Committee. Nancy Nagel, Senior Management Analyst, recalled at the last discussion of the audit, the Committee was concerned about inventory turnover ratios. The audit indicated the inventory turnover rate (blended) was 64 percent. Separately, the MSC warehouse turnover rate was 78 percent and the WQCP warehouse rate was 25 percent. The WQCP warehouse rate was low because of the need to carry many emergency repair parts. Secondly, the auditor used numbers available as of April 19, 2013. As of June 30, 2013, that 64 percent rate increased to 78 percent, with a 91 percent rate at the MSC warehouse and 33 percent at the WQCP warehouse. The actual turnover rate for 2013 was not so bad. As for the decreasing rate from 2007 to 2013, the 2007 number was an outlier. In 2008 the inventory turnover rate decreased 10 percent, and in 2009 it decreased another 10 percent. The average inventory turnover rate over those seven years was 72 percent. The 2013 number was not below the average for those seven years. Staff conducted a two-stage clean-out of inventory and would conduct quarterly checks to identify parts not moving. The Committee should see a good turnover rate in the future. Mr. Saccio asked Ms. Nagel to address a new base for the inventory turnover count and what the minimums represented. Ms. Nagel explained that all Departments identified parts that were used only for emergencies. Staff coded those parts as emergency, so they could be included or segregated in calculating inventory turnover. Council Member Holman inquired about the turnover rate for 2006. The turnover rate increased from April 2013 to June 30. Ms. Nagel suggested that correcting and categorizing transactions at yearend could be responsible for the increase. Page 5 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Council Member Holman stated the turnover rate still increased from 66 percent to 78 percent. Ms. Nagel remarked that there were fluctuations. Council Member Holman wanted to understand what caused the increase. Ms. Nagel could analyze more issues to find an answer, but she was unsure whether Staff would continue to analyze prior years. In future reports, Staff would look more deeply into reasons for increases and decreases. Mr. Saccio was aware of one large order at the end of the year in the gas area that may have enhanced the turnover rate. Ms. Nagel indicated the gas order would have occurred in 2014, not in 2013 Vice Mayor Kniss inquired whether Ms. Nagel's reference to system meant SAP. Ms. Nagel was referring to system in a broader sense. Vice Mayor Kniss asked if she meant systemized. Ms. Nagel replied yes. The system could be found in the policies and procedures. Mr. Saccio advised that an order placed in the system would trigger information to purchasing to replenish stock. There was an automatic response to reorder. Vice Mayor Kniss understood that Staff hoped to create an electronic system to know where everything was all the time. Jon Hospitalier, Public Works Assistant Director, reported since February the Public Works Department had rekeyed the WQCP warehouse and added a security camera and card reader at the main door. IT storage at the MSC building had been caged and secured with card access. A card reader was added to the storage entrance door at City Hall. All exterior doors at City facilities with the exception of Building C and the MSC had been rekeyed with a unique configuration. Building C would be rekeyed at the end of the calendar year. Detailed records for all keys were maintained by facility Staff. Card access was installed on at least one exterior door of each facility with the exception of fire stations. More than 150 card access doors were located at City facilities. After updating and refining access records for the warehouse, only 44 Staff members possessed access cards to the MSC warehouse for 24/7 access. Public Works Staff would collaborate with the Page 6 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Office of Emergency Services (OES) Director for guidance regarding a Citywide risk assessment. Upgrades to cameras at the MSC were underway and would be completed by the first of the year. The fleet access system was removed from all vehicles. AMAG Technology was used to track vehicle access to the entrance gate. Mr. Saccio indicated staff would continue to input material categories into SAP when possible, to monitor and conduct blind counts, and to conduct training in SAP if requested. The key was good communication among Departments. Mr. Perez was confident Departments would continue to work with the City Auditor and Audit Staff to complete recommendations. Internal audits made the City better. Mr. Keene recalled Staff requested the audit. The depth and range of Staff's response had been atypical in that so many Departments were working together. These types of system changes required shared responsibility. Staff had made meaningful progress but was not finished. Council Member Holman requested the City Auditor comment and inquired whether process guidelines in Attachment E should be process standards. Harriet Richardson, City Auditor, appreciated Staff's approach of developing a plan. A holistic approach was best for the City. Departments worked closely with Audit Staff. Guidelines were consistent with criteria in the General Accounting Office (GAO) Executive Guide. Audit Staff could not separate moveable inventory from long-term stock for emergency purposes. Making that division clear and tracking turnover was going to be important. Transferring non-valuated stock into SAP would affect turnover rates. Vice Mayor Kniss asked if the Inventory Management Audit would assist Audit Staff with the Meters Audit. Ms. Richardson advised that the Meters Audit utilized the same type of criteria for management; however, it included procurement and retirement processes. Vice Mayor Kniss felt the City was determined to have good information. Ms. Richardson indicated risk assessment was an important concept to carry through all City processes. Page 7 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Council Member Burt believed the Committee was looking for the type of implementation Staff utilized. It would be interesting to review costs and benefits once all controls were implemented. Chair Berman emphasized training of Staff on new processes. He hoped the achievements in inventory management would continue. Mr. Keene stated the City operated as a large complex organization even though it had only 1,000 employees. Sometimes force was necessary to implement change. Ultimately everyone worked together and it paid off. MOTION: Council Member Berman moved, seconded by Vice Mayor Kniss to recommend the City Council approve the City Auditor’s Inventory Management Audit. MOTION PASSED: 4-0 Future Meetings and Agendas Lalo Perez, Administrative Services Director, did not have any Agenda Items for the meeting of October 21, 2014. Staff recommended the meeting be canceled. The November 4, 2014 meeting was canceled as it was the date of the election. The next scheduled meeting was November 18, 2014. The Agenda included yearend financial information, Capital Improvement Program (CIP) projects, and gas cap and trade compliance revenues. The subsequent meeting was scheduled for December 2, 2014. That Agenda included first quarter financial information, and the community solar program. The December 16, 2014 meeting would include the Long Range Financial Forecast. Vice Mayor Kniss asked if the meeting on November 21 was canceled. Mr. Perez recommended it be canceled. Council Member Holman indicated a League of Cities conference was scheduled around November 18, 2014. Vice Mayor Kniss was attending the conference, but could not recall the date. Council Member Holman noted the Animal Shelter had been outstanding for a while. Mr. Perez reported the City Manager was working with a consultant and performing outreach with stakeholders. The item was not ready for an update. Page 8 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 MINUTES Chair Berman requested Staff inquire about when an update could be provided. Mr. Perez would talk with the City Manager. He noted two of the four Finance Committee Members could be absent from the November 18, 2014 meeting. Vice Mayor Kniss requested Mr. Perez repeat information regarding the Animal Shelter. Mr. Perez would request the City Manager provide a status. Chair Berman asked Council Member Holman and Vice Mayor Kniss to notify him if they would be unavailable for the November 18 meeting. ADJOURNMENT: Meeting adjourned at 8:25 P.M. Page 9 of 9 Finance Committee Regular Meeting Minutes 10/7/2014 City of Palo Alto (ID # 5003) Finance Committee Staff Report Report Type: Action Items Meeting Date: 10/7/2014 City of Palo Alto Page 1 Summary Title: Staff Response to Inventory Management Audit Title: Staff's Second Follow-up Response to the Inventory Management Audit From: City Manager Lead Department: Administrative Services Recommended Motion The Finance Committee discussed staff’s updated response to the Auditor’s Inventory Management Audit and refers it to the full Council for adoption upon the Consent calendar. Recommendation Staff recommends that the Finance Committee review and discuss this updated response to the Auditor’s report on Inventory Management. The updated response addresses questions and concerns raised by the Committee at its February 18, 2014 meeting. As discussed at the February 18 meeting, should the response adequately address Council members’ concerns, staff recommends that the Committee refer the response to the full Council for adoption upon Consent. Background On February 18, 2014 the City Auditor presented to the Finance Committee the results of its Inventory Management Audit. Normally, the Auditor presents annual status updates to the Council. However, at the February 18 Finance Committee meeting, Council members raised several questions and concerns and asked staff to return in six months with information to speak to those concerns. This report is therefore additional to and separate from the Auditor’s updates to the Council. The text of motion, along with clarifying text, may be found below. This text is excerpted from page 18 of the full minutes of the February 18 meeting (Attachment D). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER 1) to have this Item go to Council under the Consent Calendar; 2) to include these Minutes when the Item goes before Council; 3) to have Staff respond within six months to the Finance Committee; and 4) to have Staff account for the level of inventory, the culture of responsibility and accountability, and the tracking and disposition of the materials posted at the warehouse. City of Palo Alto Page 2 Discussion Since February, ASD has facilitated the effort to address the Committee’s concerns, by engaging through a series of meetings the Public Works, Information Technology, and Utilities departments, and methodically working through each of the Auditor’s recommendations, along with the questions raised by Committee members. Attachment A is an Implementation Plan showing tasks completed since the February 18 Finance Committee meeting as well as tasks yet to be completed. Staff estimates that the tasks it has already completed comprise about 80 percent of the total work outlined in the Implementation Plan. Attachment B is an updated overall response to the audit from all four departments (Administrative Services, Information Technology, Public Works, and Utilities). This is the primary document for tonight’s discussion. Appendix 1 of Attachment B is a report summarizing the 2014 fiscal-year-end inventory count results for both warehouses. Stores staff conducts the year-end count in addition to the cycle counts done throughout the year. Attachment C is the staff response memorandum delivered at the February 18 Finance Committee meeting. Attachment D is the excerpted minutes from that meeting during which this agenda item was discussed. Attachment E is an Inventory Policy, Process & Procedures document which has been reviewed by all relevant departments as well as the City Auditor. Staff looks forward to the Committee’s discussion and questions. Attachments:  Attachment A: Inventory Management Implementation Plan (DOCX)  Attachment B: Updated Staff Response to Inventory Audit (DOCX)  Attachment C: Original February 2014 Response to Inventory Audit (DOCX)  Attachment D: February 18, 2014 Finance Committee Minutes (PDF)  Attachment E: Policy, Process & Procedures (PDF) Attachment A CITY OF PALO ALTO INVENTORY MANAGEMENT IMPLEMENTATION PLAN PURPOSE The purposes of this plan are:  To provide guidance and direction to city staff regarding roles and responsibilities for achieving Inventory Management Control in keeping with Best Practices.  To respond to the concerns raised by the Finance Committee resulting from the Inventory Management Audit, issued December 2013.  To inform city staff about any changes in practice for addressing concerns identified in the Inventory Management Audit IMPLEMENTATION TASKS: NO: TASK: DUE DATE: STATUS: 1. Define “City Inventory” and create citywide policies, processes and procedures for Inventory Management. 10/31/14 Drafts have been circulated to Departments (and included in Attachment E) 2. Ensure Best Practices inventory controls are implemented in SAP, identify reports available in SAP, and define reporting requirements including:  System access  Segregation of duties  Minimum/Maximum  Cycle counting  Turnover  Coding emergency-only materials DONE Monitoring and Implementation are ONGOING 3. Meet with departments to:  Identify interdepartmental cross functions.  Clearly define roles and responsibilities.  Define communication needs. DONE Attachment A NO: TASK: DUE DATE: STATUS: 4. Apply the Inventory Management process procedures to all items cataloged and previously assessed to determine:  City inventory or not  If yes, managed in SAP or other  If other, establish criteria DONE Monitoring is ONGOING 5. For all inventory managed outside of SAP, review and approve controls established for managing that specific material. DONE 6. Disseminate Final Policy, Process & Procedures and other materials Citywide 10/31/14 7. Complete any necessary training of City staff on PPPs 12/31/14 8. Evaluate whether Transformers can be brought into the main SAP inventory system 12/31/14 9. For all other inventory managed outside of SAP (“exceptions”), evaluate whether that type of materials can be incorporated into main SAP inventory system; re-evaluate annually; determine approximate dollar value. DONE IT Equipment and WQCP Emergency parts brought into SAP; Transformers, Poles left outside of SAP. Re-evaluation ONGOING 10. Review and assess existing warehouse capacity with respect to future space needs; develop one or more options for meeting future space needs 10/31/14 11. Assess the appropriateness of inventory levels and establish a procedure for regular updating of material minimum and maximum inventory levels DONE Monitoring ONGOING 12. Assess inventory for low turnover. Surplus or return obsolete materials. Establish procedure for regular checking of slow-moving items. DONE For all materials in Warehouses Monitoring ONGOING; Utilities to continue process for items they have stored outside Warehouses. Attachment A NO: TASK: DUE DATE: STATUS: 13. Identify and determine the treatment of other miscellaneous items such as materials and equipment:  Requiring short-term storage for other departments.  For recycling or disposal (DONE – see Surplus Property P&P)  Donated by contractor  Purchased with p-cards 10/31/14 Process has been initiated 14. Improve Physical Security of City inventory 99% Complete MSC and WQCP security measures are completed. Fleet access control system being evaluated. Card access monitoring ONGOING. 15. Determine steps and resources (including staff) needed to implement the updated Policies, Process and Procedures 11/30/14 16. Research any additional technical tools that may facilitate the practice of Inventory management Best Practices, and determine which might pass the cost-benefit test 12/31/14 Process is ongoing; December deadline for a more thorough assessment of RFID and other technologies Attachment B 1 TO: City of Palo Alto Finance Committee Members FROM: James Keene, City Manager DATE: October 7, 2014 SUBJECT: Updated Response to Committee Members’ Questions Regarding Auditor’s December 2013 Report on Inventory Management PREPARERS: Lalo Perez, Chief Financial Officer Val Fong, Director of Utilities Mike Sartor, Director of Public Works Jonathan Reichental, Chief Information Officer Introduction At the Finance Committee Meeting of February 18, 2014, Committee members raised several questions and concerns and asked staff to return in August with information responsive to the issues raised. Since February, ASD has held 20 interdepartmental meetings with Utilities, Public Works, Auditor’s and Information Technology staff to address the concerns raised in the Audit. This memorandum, along with the Policy, Process & Procedures attached, documents the modifications and improvements that have resulted, as well as staff’s plans for remaining action items. The following table summarizes the issues raised by Committee members at the February 18 meeting and where in this document Council members may find staff’s discussion of those concerns. Committee Concern or Question Status or Response Are inventory levels appropriate? See page 6 of this document. Are items utilized for City projects once checked out of inventory? Staff believes that financial system and blind counts show that what is being taken out of inventory is being put into City projects. (Counting procedures discussed on page 2.) Concern over lack of inventory tracking and control Counts (both cycle and year-end) indicate that inventory is well controlled. See Appendix 2. Concern about large number of access cards at MSC Number of persons with card access to the MSC warehouse has been reduced from 71 to 44; ongoing access card review process is now in place Low inventory turnover ratio; unexplained decrease in inventory turnover ratio between 2007 and 2013 See pages 6 and 7 of this document. Attachment B 2 The remaining document is organized into the four main issues identified in the Auditor’s report, including: 1. Updating and Citywide Distribution of Inventory Policies and Procedures 2. Inventory Outside of SAP System 3. Excess of slow-moving and/or obsolete stock; low inventory turnover ratios 4. Physical security at both warehouses Please note that the attached Policy, Process & Procedures (Attachments D, E, and F) provide important details on policy and procedural improvements that staff has developed over the last six months. Issue 1: Update and enforce inventory transaction policies and procedures to ensure there is proper authorization and accountability for all transactions Policy, Process, and Procedures The Inventory Policy, Process, and Procedures (PPPs), attached to this report (Attachment E), clearly defines roles and responsibilities and the lines of interdepartmental communication necessary to manage inventory efficiently. These have been derived from continuing conversations between ASD, Utilities, Public Works, and the IT departments. Drafts of this PPP was circulated to departments, and staff incorporated their input. The PPP will then await final approval by the City Manager before being incorporated into the City’s online Policies and Procedures resource and communicated to staff citywide. Blind and Year End Physical Counts Blind counts have been implemented and duties segregated as recommended. Cycle counts and year-end physical counts were already carried out at both locations prior to the Audit (see Appendix 1 for example) and will be continued (see Attachment E for description of cycle counting procedures). At the WQCP, non-valuated stock in locked containers and the “towers” will be recounted annually and reconciled to SAP records. Equipment and goods stored in these areas are generally for emergency purposes only. At the end of Fiscal Year 2014, the year-end count of valuated stock showed an accuracy rate of 98.2% at the MSC Warehouse and an accuracy rate of 97.7% at the WQCP Warehouse. The value of changes to reconcile the counts was less than 0.5% for each facility. Accountability for Material Withdrawal: WQCP Warehouse The WQCP has agreed to close its warehouse to the extent possible given the single FTE storekeeper. Instead of WQCP staff pulling parts off the shelves and marking on paper what they have taken so the storekeeper can enter the info into SAP (as done previously), WQCP staff will now come to the front counter, input their request into SAP, and the storekeeper will Attachment B 3 obtain the parts they need. The counter has been lengthened to prevent automatic entry into the warehouse and to promote continued reliance on the storekeeper for retrieving goods. When goods are needed after hours, authorized supervisors may access the warehouse and use an “after-hours” Pull Ticket to document what they remove from the shelves. The Storekeeper updates the system accordingly the following morning (See Attachment E). Staff expects greater accuracy of records and enhanced protection of City assets via the more tightly controlled warehouse access. Accountability for Material Withdrawal: MSC Warehouse ASD eliminated the generic user account in April 2014. ASD also modified its cycle count procedures beginning December 30, 2013 to ensure that duties would be segregated according to the Auditors’ recommendation. Specifically, the warehouse staff person doing the physical count and the staff person entering the count information into SAP may not be the same person. Issue 2: Inventory Categories Ordered or Tracked Outside of SAP System: electric meters, poles, transformers, some Water Quality Control Plant equipment, IT equipment, MSC North Dock contents As noted in the previous (February 18) response (Attachment C), there are two reasons to implement a centralized inventory management system: 1) to prevent unauthorized use, physical deterioration, or theft of property, and 2) to manage the inventory in the most cost effective manner. The majority of materials Utilities manages outside of the warehouse have an extremely low risk of theft. They are specialized goods that have no functionality or resale value outside of utility use and for the most part are heavy and bulky and cannot be transported without a flat-bed truck and crane. In addition, these materials are designed for exterior use and are not subject to deterioration from the elements or from long-term storage. ASD met with Utilities staff overseeing transformers, poles, and meters purchasing and tracking to understand the reasons for and the mechanisms driving the alternate monitoring systems for these items. It concluded that the transformer tracking system utilized by Utilities is indeed preferable to SAP for the purposes of tracking the location of each transformer. In addition the transformers are tightly tracked by Utilities and the quantities will be reconciled with Accounting asset records twice per year. However, Utilities will take a deeper look at ways to incorporate Transformers into the regular SAP inventory system. Poles are ordered through Stores, but due to the bulky size of the poles, are received at a separate location by Utilities staff, and distributed from that location. As a result, quarterly physical counts will be conducted to keep records reconciled. Attachment B 4 As for meters, the Auditor is pursuing a more in-depth audit of the meters, so ASD and Utilities will withhold any additional recommendations or actions regarding the meters until those Audit results are presented. In recent weeks, Utilities has identified some additional storage areas and is working to bring these items within the Policy, Process and Procedures outlined in Attachment E. At the WQCP, an extensive amount of large equipment is located in the Towers and in outside containers. This equipment had not been counted and documented in several years. This spring, WQCP staff completed a review and organization of non-stock inventory; completed an inventory stock request form for each item; and provided the paperwork to ASD for addition to SAP as non-valuated stock. WQCP non-valuated stock is now being tracked in SAP. For IT equipment, the following solutions were implemented: Secured Cages: To address potential theft of desirable equipment such as computers and monitors, IT, Public Works, and MSC Warehouse Staff created an area within the warehouse to install a secured cage with a card access system. The cage extends beyond the ceiling and can only be accessed by MSC Warehouse staff. This new cage provides a secondary level of security for IT equipment at the MSC Warehouse, the first being physical access to the warehouse limited to warehouse staff only. Items below $100 in value (such as mice and keyboards) are considered “consumables” and are distributed to IT staff at City Hall upon receipt. IT staff then stores these items in a caged storage area in City Hall and tracks their subsequent locations. IT Inventory Process and Procedures: IT Staff worked with the Warehouse Supervisor to establish and document IT inventory processes and procedures (See Attachment E, page 6). The document outlines what IT equipment is to be received at the warehouse, how it is to be processed, how it is to be requested, and who is permitted to request the equipment. The document also identifies that the warehouse staff will perform a blind count of IT equipment every three months to validate that inventory levels are correct. SAP Inventory: Leveraging already in-use technology, IT Staff worked with the Warehouse Supervisor to add frequently purchased IT equipment into SAP as non-valuated inventory items. This improvement allows for an automated process of requesting goods, receiving goods, and monitoring inventory levels. Utilities North Dock: At the MSC, Utilities maintains a storage area to facilitate crew access to low-value materials needed for jobs. Early in 2014, Utilities secured this area with a card-reader access door. In the last couple months, Utilities conducted a physical count of the items in the North Dock and evaluated whether to reduce volumes of certain items, return all the materials Attachment B 5 to the MSC Warehouse, or leave as is. Utilities decided to leave the area as is, and conduct quarterly recounts of materials. Issue 3: Slow-Moving and Obsolete Parts Prior to the February 2014 Finance Committee meeting, Warehouse staff removed all items older than 3 years old from MSC and WQCP shelves. Since February, ASD has surveyed its customer departments regarding any parts older than 1 year, and removed the ones determined to be obsolete. In addition, ASD has requested that departments indicate which parts are for emergency repairs ONLY, since this can be coded and those parts eliminated from future “slow-moving” reports. In the past, a key reason for slow-moving and obsolete items remaining on the MSC Warehouse shelves was a communication gap between Utilities and MSC Warehouse and purchasing staff, as well as an information lag between Utilities Engineering and Utilities Operations staff – for example, regarding changed specifications on parts. One outcome of the discussions between ASD and Utilities has been that Utilities has started inviting Purchasing and Stores to monthly Engineering and Operations meetings to address any material issues or specification changes. Utilities will also review the quarterly slow moving material report from Stores to address aging or obsolete inventory. Another concern of the Committee upon reviewing the Auditor’s report in February was the overall 64% inventory turnover ratio for City warehouses in 2013. Staff investigated and found that the 64% turnover was for the period from July 1 2012 to April 29, 2013, and was a blended rate for the two warehouses. The MSC warehouse turnover rate was 78.0%, and the WQCP warehouse turnover rate was 24.6% for the same period. (See table excerpted from Auditor’s calculations below.) Calculated - Based on MB51 and ZMMR05 MSC Inventory Turnover as a % of MSC Total Inventory on 4/19/13 WQCP Inventory Turnover as a % of WQCP Total Inventory on 4/19/13 78.0% 24.6% The reason for the low turnover rate at the WQCP is that they keep a large number of materials on hand in case of emergency. The cost of delaying a needed repair to the system, including environmental impacts of spilling waste into the Bay and penalties for the plant’s inability to process the waste from partner agencies’ systems, would be much higher than the carrying costs for these replacement parts. Attachment B 6 Questions were also raised regarding the reported decline in overall turnover ratio from 88% at Fiscal-year-end 2007 to 64% as of April 2013. A look at the details of the Auditor’s analysis might help clarify the trend. The year-end (6-30- 13) calculation is added in bold in the table below: Date (Fiscal Year as of) Inventory Turnover (Calculated) 6/30/2013 77.5% 4/19/2013 64.2% 6/30/2012 65.8% 6/30/2011 63.4% 6/30/2010 64.5% 6/30/2009 66.1% 6/30/2008 76.4% 6/30/2007 88.0% First, the 88% turnover ratio in FY 2007 was relatively high compared to the succeeding six years. The inventory turn ratio change between 2008 and April 19, 2013 was far less dramatic than that from 2007 to 2013. Second, 2013’s year-end turnover ratio was 78% - rather than the 64% figure-based on April 2013 numbers shown in the Auditor’s report. Broken out by location, the MSC turnover rate was 91.3%; the WQCP’s was 33.0% for FY 2013. Going forward, staff has already cleaned out obsolete materials from both warehouses and coded emergency-only supplies so that inventory turns can be calculated with and without them. Finally, as the PPP demonstrates, there is now a system in place to routinely synchronize information regarding slow-moving, obsolete, and newly specified parts and materials. Inventory turn levels will be more closely monitored, and likely much higher, than in recent years, when a high volume of emergency-only stock was included in the calculations. Issue 4: Physical Security at Both Warehouses Since February, Public Works has re-keyed the WQCP warehouse, and added a security camera and a card reader to the main door. The IT storage area at MSC-A has now been caged, with the cage fencing extended, and is secured with a padlock. Card access was added to this cage in August. Card access was also added to the storage entrance door at City Hall Level A. All of the exterior doors of City facilities with the exception MSC-C have been rekeyed with the new Schlage Primus key system. MSC-C will be complete by the end of the calendar year. Card access has been installed on at least one exterior door on each of the facilities with the Attachment B 7 exception of fire stations. There are now over 135 card access doors installed in City facilities, which greatly reduces the need to issue hard keys. Detailed records are kept for all keys issued for this new Schlage Primus system. 44 staff members currently possess access cards to the MSC warehouse. Public Works staff will collaborate with the City's OES Director for recommendations and guidance working toward a citywide risk assessment. At the MSC, the Fleet access system has now been removed and all vehicle access cards are now using the AMAG Technology system, which has the ability to track when vehicles gain access to the entrance gate. Conclusions and Next Steps Staff’s takeaways from the February 18 Finance Committee meeting were concerns about:  The safety and protection of all goods purchased and stored by the City  The ability to track all goods  The efficient use and turnover of inventory Since that meeting, staff has taken numerous actions to address the Finance Committee’s issues as well as the Auditor’s findings. Security for City goods has been enhanced by more strictly limiting access cards to the MSC warehouse, installing a cage to protect computer equipment, and installing a new card access system and camera coverage at the WQCP. The WQCP Warehouse has been made additionally secure by changing the practice of having crews fill out paperwork and then pick up parts off the warehouse shelves directly and instead have the storekeeper bring out the parts after paperwork has been completed. The effort to further secure the entire MSC complex is still a work in progress with Public Works and the Office of Emergency Services taking the lead. With some closely monitored exceptions, all goods discussed in the Auditors Report are now tracked in SAP, either as “stock inventory” – parts that are used repeatedly – or “non-valuated inventory” – parts that are for emergencies only or for other reasons do not qualify as stock items. The latter’s quantities, but not values, are tracked in SAP’s inventory system. Staff in both Public Works and Utilities (along with Purchasing and Stores staff) has made significant strides to count and track goods managed outside the SAP inventory system. Counts will be performed on a periodic basis to balance the number of goods in storage and those listed in SAP. Utilities will continue to track transformers in its Access system and will log and account for all goods located in sheds, containers, and a caged area at the MSC dock. ASD will continue to evaluate whether goods outside the standard SAP system can be brought into the main inventory system. Attachment B 8 All goods in both warehouses have been analyzed for obsolescence and low turnover. Obsolete items have been either returned to vendors or surplused according to City policy. Goods that have been identified as emergency items have been specially coded so Inventory Turn ratios may be calculated excluding these items. Warehouse staff will now send quarterly turnover and aging reports to departments for the potential culling of unused items. In staff’s view, expensive solutions to audit issues are not required and most can be solved with existing personnel levels and systems. For example, the benefits of adding a more robust inventory module in SAP for approximately $500,000 do not outweigh the costs. This is especially true given Information Technology’s efforts in progress to evaluate SAP versus other ERP systems. However, to manage the increased back-and-forth reporting and accountability between Stores and departments on changing material needs, it might be necessary to restore the 1 FTE that was cut from Stores. There remain, however, a number of additional tasks to see the process through. Attachment A, the Implementation Plan, includes the tasks staff has planned going forward. For example, Utilities will re-evaluate whether Transformers can be brought into the main SAP inventory system; Utilities staff is beginning to process some additional materials identified in recent weeks as falling under the purview of the newly outlined Policy, Process & Procedures; staff will assess current and future warehouse space needs and make recommendations; additional technical solutions and possible additional staffing needs will be evaluated. In summary, a significant effort in tightening inventory management and controls has been made. A Policy, Process, and Procedures (PPPs) document has been drafted and shared with departments so that responsibilities and lines of communication are clear. As long as departments consistently adhere to the PPPs, the City’s assets will be efficiently and effectively used. Attachment B 9 Appendix 1: Year-End Physical Count Results Final FYE 2014 Inventory facts & figures for MSC & WQCP General Information  MSC Warehouse houses 1865 active material stock items  WQCP Warehouse houses 2354 active material stock items  The net worth of MSC stock is $3,089,312. WQCP is $837,824. MSC Warehouse Material Document 4800060358 shows 20 physical inventory (negatives) errors entered into SAP on 6/23. Document was generated using MB51 (Parameters - CPA, MSC, Movement Code 702, posting Date) Report shows a total lost in dollars of $24,501. Of that total, $24,259 is related to the pole counts given by Utilities. The true dollar loss of stock tracked & controlled by ASD/Stores was (-$242) Material Document 4800060358 shows 12 physical inventory (positives) errors entered in SAP on 6/23 Document was generated using MB51 (Parameters - CPA, MSC, Movement Code 701, posting Date) Report shows a total gain in dollars of $12,659. Of that total, $12,522 is related to the pole counts given by Utilities. The true dollar gain of stock tracked & controlled by ASD/Stores was $136 Attachment B 10 Appendix 1 Material Document 4800060358 32 physical inventory errors entered into SAP on 6/23 Document was generated using MB51 (Parameters - CPA, MSC, Movement Code 701/702, posting Date) Report shows a total loss in dollars of (-$11,842) The true dollar gain/loss of stock tracked & controlled by ASD/Stores was (-$105) MSC Final Inventory numbers Items counted 1865 Errors 32 Inventory Accuracy Rate 98.2% Value change Less than .5% Attachment B 11 Appendix 1 WQCP Warehouse Material Document 4800060359 shows 39 physical inventory (negatives) errors entered into SAP on 6/23. Document was generated using MB51 (Parameters - CPA, WQCP, Movement Code 702, posting Date) Report shows a total lost in dollars of $296. Material Document 4800060359 shows 13 physical inventory (Positives) errors entered into SAP on 6/23. Document was generated using MB51 (Parameters - CPA, WQCP, Movement Code 701, posting Date) Report shows a total gain in dollars of $405. Attachment B 12 Appendix 1 *Continued on next page* Material Document 4800060359 shows 52 physical inventory errors entered into SAP on 6/23. Document was generated using MB51 (Parameters - CPA, WQCP, Movement Code 701/702, posting Date) Report shows an overall gain in dollars of $109. Attachment B 13 Appendix 1 WQCP Final Inventory numbers Items counted 2354 Errors 52 Inventory Accuracy Rate 97.7% Value change Less than .5% Attachment C 1 TO: Houman Boussina, Acting City Auditor FROM: James Keene, City Manager DATE: February 18, 2014 SUBJECT: City Manager’s Preliminary Response to the “Inventory Management Audit” PREPARERS: Lalo Perez, Chief Financial Officer Val Fong, Director of Utilities Mike Sartor, Director of Public Works Jonathan Reichental, Chief Information Officer Response City staff would like to thank the Auditor’s Office for a detailed Inventory Audit with worthwhile recommendations to investigate and act upon. It is important to note that this audit was conducted at management’s recommendation. Fundamentally, staff believes there is room for improvement in areas cited in the Auditor’s conclusion including:  Controls to ensure accuracy and completeness of inventory records  Accountability for inventory movements  Enforcing citywide inventory management standards and continuous improvements What is being accomplished and what requires attention is discussed in department responses below. For example, where the Auditor recommends using the City’s SAP inventory system, which staff will seek to maximize, there are current and new systems that could be used more cost effectively to achieve cited goals. These systems will be examined. Because the City’s inventory is geographically dispersed; controlled by different departments; and covered by older policies and procedures, staff requested the Auditor conduct an analysis of our goods management and compare it to best practices. Although management’s perspective and emphasis may be slightly different from that of the Auditor, it has developed an action plan to improve current practices and address the Auditor’s recommendations. There are always a number of themes and natural tensions at play between best practices and operational needs in appropriately managing inventory. These include:  A conflict between operational needs and efficiencies, particularly in regards to emergencies, time sensitive projects, or running a 24/7 operation versus tight and accurate inventory control Attachment C 2  A tradeoff between precise inventory control and accuracy and the costs necessary to achieve such goals. Over the past decade, 2 positions have been eliminated at the warehouses as a consequence of balancing budgets  Limited physical space at the Regional Water Quality Control Plant and MSC warehouses as well as at the MSC yard. Goods will occasionally be stored in available spaces making centralized versus decentralized storage of goods problematical  The City of Palo Alto is unique as a municipality given ownership of all utilities. This adds complexity to the receipt, evaluation, storage, and management of goods The Auditor cites the Municipal Code as assigning to the Administrative Services Department (ASD) the principal responsibility for inventory management. As a full service City providing general and utility services, this responsibility is more complicated and diffused than in other jurisdictions. In addition, to updating policies and procedures to reflect best practices, ASD will include language that makes responsibility for the transitioning and safeguarding of goods clear. This may include recommended modifications to the Municipal Code. Once an item is removed or issued from City warehouses, it becomes the user department’s responsibility to safeguard that item. ASD staff will work closely with departments to educate and ensure that achievable best practices are followed. Finding 1 – ASD and City departments should implement the City’s inventory management policies and procedures citywide to achieve inventory goals and objectives Recommendations: 1. ASD and City departments should implement the City’s inventory management policies and procedures citywide to achieve inventory goals and objectives 2. ASD should review its inventory accounting policies and correct any misstatements in the City’s accounting records ASD An updating of citywide inventory policies and procedures is necessary. ASD is committed to revising them and to working with departments to implement. Our goals and objectives are and will continue to be aligned with those of the Government Accountability Office (GAO) guidelines cited in the Auditor’s Report. In addition, ASD will propose changes to code, policies and procedures that define department responsibilities for tracking and safeguarding goods that leave the warehouses. Ongoing meetings among departments involved in inventory management will be scheduled. ASD has reviewed the Auditors pre and final findings concerning its accounting policies with the City’s outside financial auditor firm Macias, Gini and O’Connell (MGO), and concluded that there were no material misstatements in the City’s FY 2013 accounting records pertaining to inventory. Attachment C 3 Utilities To implement policies and procedures, staff will evaluate existing (e.g., SAP) and potential new systems to enhance the monitoring and controlling of inventory. City staff agrees that it would be advantageous to have a single inventory management system for all the materials used by the City. It is important, however, to evaluate whether there are cost effective solutions providing sufficient benefit to justify the expense of implementing and operating the systems. From a business process and/or cost perspective, SAP may not be the optimal system for inventory management. In addition, the IT department is leading the review and assessment of the SAP system for ongoing use. For example, detailed tracking of low price items such as bolts and nuts once they leave the warehouse would require more labor and increase costs. It is likely that these increased costs would exceed the value of the materials. The Utilities Department stores over $82,000 in inventory at an unsecured location without oversight Utilities It is not uncommon for Utilities to have a store of low priced and revolving stock items (average cost of less than $5 each for items such as nuts, bolts, washers, etc. amounting to 17,500 such items) for general use outside of the materials management system. For operational and cost reasons, it is impractical to keep an up-to-date manual inventory system. If it is deemed necessary to inventory these parts, an automated system is required to streamline the inventory management. The costs and benefits of such a system would be compared to determine the cost effectiveness of such a system. In the short-term, a locked door at the “unsecured location” to restrict access to the storage area will be added. The Utilities Department disposed of at least $31,000 in unused materials that had expired Utilities The Utilities use a variety of materials that do have defined shelf lives. There are instances in which older, unique goods may be kept for repairs. Utilities does acknowledge the disposal of items that were no longer useful. In the future, Utilities will be sure to observe City procedures for surplus or obsolete inventory. The current inventory management system does not track individual items so identifying materials nearing expiration dates is difficult. A system tracking individual items in inventory would decrease the amount of goods kept past expiration dates. To implement tracking of expiration dates on these items in SAP may require hand entry or bar coding. Utilities and ASD will work jointly to determine if a new field in the SAP inventory system can be added to track expiration dates from department locations. ASD It should be noted that Stores staff does date and color code items on shelves so that the oldest items are pulled from inventory. Again, this is an important area needing ongoing inter- department cooperation to manage goods appropriately. Attachment C 4 The Utilities Department has not managed its meters and transformers using an inventory management system with sufficient controls Utilities There are two reasons to implement a centralized inventory management system: 1) to prevent the unauthorized use, physical deterioration, or theft of property, and 2) to manage the inventory in the most cost effective manner. The majority of the $2.5 million of materials managed by the Utilities Department that are not in the warehouse are transformers, poles, switches, and meters. These materials have an extremely low risk of theft. They are specialized goods that have no functionality or resale value outside of utility use and for the most part are heavy and bulky and cannot be transported without a flat-bed truck and crane. In addition, these materials are designed for exterior use and are not subject to deterioration from the elements and long-term storage. A significant number of transformers are stored for the sole purpose of emergency repairs. The Utilities recognize that efficiencies could be gained through better management of its inventories. It is unclear, however, whether these efficiencies will result in significant savings to the City. The management of transformers and switches has been delegated to the Utilities Department historically because these items required ordering from 4 months to 1 year in advance of delivery. Because of the long-lead time required for ordering, an engineer has been assigned to manage the transformers and another engineer has been assigned to the switches. Each engineer manages the specifications, ordering, receipt, testing, and payment for the equipment, and enforces manufacturer’s warranty claims. The inventory and management functions not currently handled in SAP could be added, but implementation of these changes would require extensive and costly modifications to the system. These changes would entail: inventory ordering, testing, and tracking procedures evaluated by the engineers and the field crews. Staff recommends that a cost benefit analysis be performed prior to implementing changes to the system to determine if there are sufficient benefits to justify the expense of implementing a centralized inventory system. The discrepancies in the transformer counts cited in the audit report were due to a transition or change in the inventory management systems taking place at the time of the audit. The transformers have been managed in an Access Database and Utilities was in the process of transferring this function to the GIS system. Following the transition to the GIS system, all transformers were inventoried and accounted for. It should be noted that transformer inventory is not updated on a daily basis because they are used for emergency replacements and are removed from inventory during off hours. The Electric Utility does conduct a monthly physical count in the yard and reconciles any discrepancies on a regular basis. Management of the transformers in the yard could benefit from the installation of an RFID system, so staff will evaluate the costs of a purchase and its benefits. The Utilities Department supports creation of a consistent process for management of meters similar to those for managing other items stored in the warehouse. The majority of new gas and water meters are stored in the warehouse and released to the meter shops when requested. Due to limited space in the meter shops, Utilities will procure some large containers for meters that Attachment C 5 are being staged for deployment. Utilities will also work with Stores to identify a storage location for electric meters. ASD To assure Council that meters and transformers are accurately recorded in the financial system and statements, it is important to explain their treatment. Meters and transformers are considered to be capital assets (as opposed to inventory) and, as such, are capitalized and depreciated over their useful lives. In total, the City owns over 3,000 transformers and all were recorded as capital assets at time of purchase. The transformers rotate in and out of service over the course of their lives, but only the acquisition and disposal activities are recorded in the capital asset system. This is standard accounting policy for the industry and is appropriate treatment from a financial accounting perspective. The Public Works Department has not used the City’s SAP inventory system to manage at least $773,000 in materials, including emergency replacement parts at the RWQCP Public Works Public Works staff will work with ASD to evaluate including non-stock inventory in SAP versus currently keeping track of it manually. If SAP is upgraded to allow inclusion of non-stock inventory, Public Works will work with ASD to add these materials into SAP. In the meantime, the department will maintain and improve its records of non-stock inventory for the following:  Long lead-time repair parts expensed to the Wastewater Treatment Fund  Raw sewage screening presses  Specialty sewage sludge incinerator fire bricks  Industrial combustion air fans for the sewage sludge incinerator  Activated sludge ceramic air diffusers  Air pipes for the activated sludge  Extra pipe fittings  Sludge and sewage pumps The emergency repair parts listed above are high value and low turnover. They have a very low risk of theft, and it is unlikely they would be deemed to have any value outside the context of a wastewater treatment plant. These items are on hand for the life of the equipment (typically 10- 50 years). It is possible that the repair parts go unutilized for the life of the equipment, but the repair items are needed immediately if machinery breaks down in in a 24/7 operation that involves health and safety issues for the City. The Regional Water Quality Control Plant (RWQCP) Warehouse is small and incapable of storing a large number of items. Some non-stock equipment is kept at the RWQCP warehouse for easier organization and access by forklift, but there is limited space there as well for additional non-stock inventory. As a consequence, large non-stock items (e.g., the incinerator refractory bricks and sewage incineration fans) are stored in a large area under the fixed film reactors known as the “towers.” The towers are unlocked facilities, though they are not accessible to the public. Attachment C 6 Some areas of the plant are home to containers (i.e., steel storage shipping style container) that have been used recently to house non-stock inventory. This has allowed staff to better organize and de-clutter the towers and main water quality warehouse. Moreover, non-stock inventory is closer to the treatment process where it will eventually be installed. All non-stock items are stored in a sheltered area for protection against the elements and they sit ready for preventative maintenance and potential corrective repairs. The $773,000 in estimated non-stock inventory is expensed to the wastewater treatment fund and is stored for long periods as emergency and corrective repair parts. PWD will work with ASD staff to determine the appropriate accounting methodology for non-stock items. The Information Technology (IT) Department has not used the City’s SAP inventory system to manage at least $919,000 in materials at the MSC warehouse Information Technology Staff agrees that the current manual Equipment Delivery Log system to track the inflow and outflow of equipment is not optimal. An SAP solution utilizing material reservations is now being implemented for the release of laptops, monitors, and other frequently purchased IT equipment. A procedure is also being put in place to ensure that the MSC warehouse will only receive IT goods for which material reservations are made. Since the Auditors conducted their review, staff determined on December 10 that of the $919,000 of IT equipment at the MSC warehouse identified in the audit, an estimated $300,000 worth of monitors, laptops, desktops, and other equipment were being stored at the MSC warehouse awaiting the opening of the Mitchell Park facilities. Another $17,000 worth of mobile data equipment for police vehicles was awaiting installation. An estimated $137,000 of the $919,000 identified from Purchase Orders was for warranties and licenses which are not physical items stored at the warehouse. All other goods valued at $465,000 have been withdrawn for operational purposes. The inflow and outflow of IT equipment is fluid as most equipment is on a standard replacement schedule and the demand for IT equipment is high. IT has requested and PW will install a cage at the MSC warehouse to separate IT equipment from other goods and foot traffic. It should be noted that no individual can walk through warehouse storage areas during regular hours unless accompanied by warehouse personnel. To improve security in the storage room at City Hall, IT worked with Public Works to establish badge access to the door entry, a ceiling-height gate to secure the specific IT area, and badge access to the gate.” ASD To verify that laptops, desktops, monitors and other items are accurately recorded in the financial system and statements, staff is providing the following explanation. If these items are over $5,000, they are considered to be capital assets (as opposed to inventory) and, as such, would be capitalized and depreciated over their useful lives. As stated in the City’s fixed asset policy, those assets that have a cost below $5,000 on an individual basis are not capitalized, but rather are expensed at the time of purchase. Since these items were below the $5,000 threshold, they Attachment C 7 were appropriately recorded as expenditures when they were purchased. As such, there is not a material misstatement in the City’s accounting records. Finding 2: ASD should improve controls to ensure the accuracy of inventory at the MSC and RWQCP Recommendation: 3. ASD should update and enforce inventory count policies and procedures to help ensure consistent and accurate inventory records. The update should at minimum require blind inventory counts, sufficient documentation of counts and adjustments, and appropriate segregation of duties. ASD should consider implementing controls included in the GAO publication titles “Executive Guide Best Practices in Achieving Consistent, Accurate Physical Counts of Inventory and Related Property” ASD ASD already has implemented several of the above recommendations’ components. It has, for example, instituted blind counts. It is important to note that the MSC warehouse has a relatively small staff half of which are used to deliver mail, goods, packets, and transport library books throughout each workday. Due to budget reductions in prior years, 1.0 FTE was reduced at the MSC warehouse and 1.0 FTE reduced at the RWQCP. Segregation of duties is difficult with limited staff and multiple responsibilities. Nevertheless, ASD will determine what improvements can be made within existing staff levels and which will require additional FTE. The Auditor correctly points out a higher error count at RWQCP. Part of the error found is attributable to items that have been expensed, are in excess of project needs, and are housed at the site. Held for future replacement needs, these items were not entered formally into the inventory system. ASD will work with the departments and the SAP business group to avoid this issue and to improve counts. Other items, such as a rebuilt Maxon valve, fall into the uncounted category of stock as well. While staff agrees that such goods should be tallied in inventory, this example demonstrates an honest effort to maximize use of existing resources and maintain parts for emergencies. Public Works The RWQCP is a 24/7 operation with a high level of liability and risk to health and safety should processes and equipment not work properly. Staff requires access to parts, supplies, and equipment at a moment’s notice. The RWQCP non-stock inventory at the RWQCP is exclusively sewage treatment equipment. These items are specialized industrial equipment. While they have high value, they have no functionality or resale value outside of the plant. The risk of loss from theft of this equipment is slight and an important point when evaluating the level of needed inventory control, storage policies, and up-to-the-minute inventory accuracy. PWD staff will work with ASD to evaluate options to improve inventory controls and accuracy at the RWQCP without impacting critical operations. Additional staffing may be required resulting in increased costs to the City and our partners. PWD will work with ASD to evaluate the cost and benefits of adding staff. Finding 3 – Inventory records do not evidence accountability for all inventory transactions. Attachment C 8 About $1 million in inventory was issued without SAP reservations, which should be used to document and evidence the need and authorization for inventory transactions. Utilities Utilities supports the use of a reservations system designed to meet the needs of field personnel. Maintenance or capital improvement work that is planned in advance can conform to procedures stemming from a reservations system. Conversely, emergencies and urgent needs at the job site (which may be prompted by unanticipated field conditions) require materials on short notice. If a system can be established that allows quick field entry into a reservations system, the amount of materials pulled without reservations could be either largely or completely eliminated. An analysis should be performed to determine if a system to allow quick system reservations can be implemented cost effectively and in conjunction with the SAP system. Alternatively, a stand-alone system can be developed as long as the parameters for such a system and its use are pre-determined and consistent with how the balance of the City’s inventories are handled. Furthermore, if the City decides to replace SAP with another system, it would make sense to delay the purchase and implementation of a system compatible with SAP, and instead, incorporate inventory management requirements in the scope of work for a new replacement system. ASD As Utilities states above, the reservation system is used, but there was a need for what is termed “un-planned goods” which was a requirement of Utilities when SAP was implemented. If field crews need items that were not part of the original reservation, they come to the MSC, provide a job number which is entered into SAP, and withdraw items that are then charged to the work order. There is no new reservation generated but the items are charged accordingly and can be tracked in SAP. Segregation of duties has not been established at either the RWQCP or the MSC warehouse locations. ASD As stated under Finding 2, there is one storekeeper assigned to the RWQCP, a 24/7 operation, and four FTE at the MSC warehouse. Prior to a series of budget reductions, each operation had an additional 1.0 FTE. To achieve best practice segregation of duties, as well as other functions, additional FTE would be required at the RWQCP and potentially at the MSC warehouse as well. The warehouse Supervisor has implemented segregation of duties to the extent possible at the MSC where entering and posting duties are now segregated. Attachment C 9 Public Works Public Works supports ASD with updating policies and procedures, conducting blind counts, and any improvements to custody, counting, and inventory adjustments. The department recommends, however, that the RWQCP warehouse should continue to operate as an open warehouse with paper based reservations entered retrospectively. Currently, there is one storekeeper present at the warehouse and this allows a reasonable level of control. Due to budget reductions several years ago, staffing at this warehouse fell from 2.0 to 1.0 FTE. Changes to current operations will result in inefficiencies, increased personnel costs, and more administrative work for supervisors. Staff estimates that at least an additional 3.0 FTE and other system changes would be needed to convert RWQCP operational practices to a closed warehouse system. Salary and benefits for the 3.0 FTE is estimated at $371,000 annually and these positions would add incremental allocated charges to the Wastewater Treatment Fund. New positions and costs would have to be reviewed and shared with the partners. With a closed warehouse, operational problems will occur when sewage treatment repair parts needed while electricians, maintenance mechanics, wastewater treatment plant operators, and supervisors waited in line to receive a complex set of parts and worked through the difficult administrative process of identifying repair parts from behind a counter. For reasons of cost impacts, regulatory compliance, and a work efficiency viewpoint, Public Works respectfully disagrees with implementation of a closed warehouse reservation system. Nearly all of the repair work at the Water Quality Control requires the use of unplanned goods to keep the wastewater treatment plant working. Public Works is supportive of improving checkout procedures, accurate documentation for unplanned goods, and investigating other methods and systems that can be used to ensure consistent and accurate inventory records and prevent potential fraud. Staff used a generic account in SAP known as “Stores1” that is accessible using a shared password to issue about $8.5 million in inventory…. A generic account has been utilized at the warehouse. Staff will work with the SAP team to quickly implement specific accounts and to add a computer to establish better controls. Finding 4- The City’s warehouses have significant quantities of unused or infrequently used inventory. The Utilities Department and ASD did not ensure about $130,000 in cable was used prior to transitioning to a new cable type, resulting in dead stock and potential waste. ASD In the past six months, Stores staff sent out slow moving stock reports to affected departments. Departments responded as to which items were no longer needed and justified those requiring continued storage. The warehouses recently have been pulling dead stock from the shelves. The Attachment C 10 next step will be to return, sell, or recycle inventory. More frequent, periodic reports on aged goods will be sent to departments. The Audit cites a low and decreasing turnover rate. The deletion of unused stock will partially address this issue. In addition, reports on minimum and maximum levels must be more actively used and analyzed to gauge the necessary level of inventory. To pare dead stock and optimize turnover or use of goods, consistent communication and coordination among departments will be necessary. Utilities The Utilities agree that more communication and more reports on unused stock are necessary. To effectively use and manage aging stock, all items must be entered in the SAP system so it can be identified and ordered through the reservation system. Regular, periodic reports must be generated to eliminate dead stock and Utilities will work with ASD to develop a timetable for ongoing reports and responses. Public Works Staff is cooperating with the review of potential dead stock by removing slow moving items and adjusting minimum and maximum inventory quantities to reflect current operational needs. An initial review process already has been completed with ASD staff on slow moving inventory. Early implementation of the Auditor’s findings is expected to create a marginal amount of new space in the RWQCP warehouse. Public Works agrees with the statement that “improved management of inventory levels may lower dead stock and result in increased space available,” but there will nonetheless remain an unabated need for the $3.0 million warehouse expansion project identified in the RWQCP’s Long Range Facilities Plan to address overcrowding issues in the existing warehouse. Emergency repair parts are typically needed for the life of the sewage treatment equipment. Even with the absence of equipment failure for over 10 years, there is a need for specific items on hand that will prevent critical failures. As a result, there will be lower inventory turnover rates. Much of the RWQCP plant equipment is specialized sewage treatment equipment that cannot be obtained from local vendors such as Home Depot. This equipment is needed on a 24/7 basis and can require a long lead time (e.g., days to months) for delivery. Public Works supports managing and reviewing the slow moving stock on a more periodic basis to verify that items are needed. Finding 5: The City has not properly secured access to the Municipal Services Center Recommendation 5.9- Perform a Citywide physical access risk assessment in collaboration with the Utilities Department, Office of Emergency Services, the IT Department, and the Police Department in order to effectively identify, prioritize, and address access control weaknesses. Public Works (PW) Public Works is in the process of replacing the 40 year old hard key system for most exterior and critical interior doors with a card reader system eliminating the need to issue hard keys. The Attachment C 11 cards are person specific and are issued to City staff and City approved contractors for access to their business areas. All City staff and contractors must pass a fingerprinting/background check prior to issuance of a card. PW staff will work with OES, IT and Police staff to identify potential weaknesses and continue to pursue recommendations for improvement such as installation of surveillance systems at critical entry ways should budget allow. Recommendation 5.10- Develop policies and procedures to address the management of citywide physical security. Policies and procedures should address: a. Designation of roles and responsibilities to ensure physical security controls appropriately restrict and monitor access. b. Management (administration) and proper use of the City’s access control systems. c. Processing departmental requests to grant or modify employees' physical access. d. Granting restricted access to non-employees. e. Ensuring access is timely modified or revoked when roles and responsibilities change. Public Works In conjunction with the Public Works Department’s American Public Works Association (APWA) accreditation process, staff will review and revise current policies and procedures for City facility security along with developing new policies and procedures where none currently exist. The procedures will document roles, responsibilities and processes for on-going system maintenance. Recommendation 5.11- Configure the fleet access control system to support the City’s security goals and objectives or determine if the AMAG Technology Inc. Symmetry Security Management System should replace it. Public Works Prior to the audit, PW staff was in the process of converting the Fleet Data system over to the AMAG access control system primarily because the vendor support for the old fleet system has been virtually nonexistent. Additionally, it has not been until very recently that the AMAG technology access control system had the capability to support the vehicle entry system. The complete transfer of all vehicle access to the AMAG technology control system should be done by the end of the fiscal year. The AMAG technology access control system will be able to track vehicles entering the yard and produce required reporting. Recommendation 5.12- Review and update AMAG Technology Inc. Symmetry Security Management System access authorization records to ensure access card holders can be uniquely identified. Access cards (especially generic or group cards) should only be assigned with a documented and approved business need. Public Works Attachment C 12 PWD staff has initiated review of the current authorization records and has updated/removed some records already. Staff will continue to ensure that card holders can be identified and generic or group cards are not issued unless there is a unique business need. PWD staff will update the existing Access Request Form to include a more comprehensive section requiring hiring managers to explain the business needs of an employee for the requested access and/or documenting the need for generic or group card issuance. During the audit, a list of people having access to the MSC warehouse was found to have multiple inaccuracies. The Warehouse Supervisor met with Public Works to review the list and all unauthorized personnel were removed from the system. In the future, staff from each department will meet semiannually to review the list of staff seeing access to the MSC warehouse. The Warehouse Supervisor will approve the final list. Recommendation 5.13- Assess the adequacy of records of individuals assigned keys and take necessary corrective actions to ensure the accuracy and completeness of the records. The Public Works Department should identify and prioritize replacement or rekeying of locks for high risk areas if records do not identify who is in possession of the keys or if the keys issued were of the type that can be duplicated. Public Works PWD staff will review physical key records and update them to reflect the current issuance of keys. Prior to the audit staff began replacing the City’s 40-year-old key system with a new Schlage Primus key system, adding card access readers to key locations, and adding cameras in specific locations improving security throughout the City. In conjunction with review of City security with Office of Emergency Services (OES), IT and Police personnel, PWD staff will identify high risk areas, evaluate the number of access keys issued and reissue new keys if it is recommended. Recommendation 5.14: Improve physical security at the City Hall storage area. Appropriate actions include, but are not limited to, enforcing appropriate key or card access controls and securing areas that have inadequate fencing. Public Works Since the audit, Public Works staff added card access control to the storage area door, added card access control to the IT cage inside this room, and extended the IT cage fence to the ceiling. Conclusions Overall, City staff believes it has made conscientious efforts to preserve and safeguard the goods it purchases for operating and capital needs. Staff at the warehouses take their work seriously and are open to improvements which is one of the reasons the City Auditor was asked to help review current practices. Line departments have a primary responsibility to maintain services for the health and safety of the public, but acknowledge as well that efforts to improve inventory control are necessary. The flow of communication and coordination among the departments needs improvement. Attachment C 13 Staff acknowledges lapses in keeping up with best practices, but believes this is primarily due to subpar staffing, the press of business/project needs, and the tendency to defer to those needs. Moreover, in its efforts to be cost conscious (rehabilitating equipment and saving excess, unique material), some best practices (e.g. high turnover of inventory, precise counts) have been somewhat overlooked. Staff will explore further use and improvement of SAP and other existing and new systems to close risks cited in the report. We will measure SAP capabilities and the costs to implement them against other systems. New systems such as Radio Frequency Identification (RFID) or bar coding will be evaluated with IT assistance to better track inventory, especially those items such as utility poles which are not located in or near one of the warehouses. Improvements to inventory control cited by the Auditor will cost money, either through the addition of personnel or to modify or purchase management systems. These costs will be assessed and brought to Council’s attention as it works to prioritize and allocate limited City resources to other needs. Finally, staff appreciates the Auditor’s work on this report. The findings are useful to improve the tracking, optimal use, and safeguarding of City assets. FINANCE COMMITTEE FINAL MINUTES Regular Meeting Tuesday, February 18, 2014 Chairperson Berman called the meeting to order at 7:14 P.M. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Berman (Chair), Burt, Holman, Kniss Absent: Oral Communications None Agenda Items 1. Review of Long Range Financial Forecast for Fiscal Years 2015 to 2024. Walter Rossmann, Office of Management and Budget Director, reported that the Long Range Financial Forecast (LRFF) was the first step in planning the Fiscal Year (FY) 2015 Budget. It allowed Staff and Council Members to understand the long-term results of past decisions and to look forward to the next ten fiscal years. The LRFF was not a prediction or a commitment of resources; rather it was a reasonable snapshot of a moment in time based on available data. The General Fund Operating Margin was the surpluses and deficits resulting each fiscal year. The General Fund Net Operating Margin was a year-over-year comparison of the surpluses and deficits. For FY 2015, Staff projected a surplus of $1.3 million. The cumulative surplus over ten years was $38.1 million, assuming the Council funded the Budget Stabilization Reserve (BSR) at the target level of 18.5 percent. Given the needs of the organization, he assumed the City would spend its resources every fiscal year, which was the Net Operating Margin. In FY 2016, the FY 2015 surplus would not be available if the Council chose to spend those funds. Therefore, the surplus of $4.4 million in FY 2016 was reduced immediately by $1.3 million. As surpluses were spent, the year-over-year change would decrease. The City would alternate between slight surpluses and slight deficits. It was important to consider the long-term outlook. In the outer years, the City seemed to gain some surpluses; however, the Page 1 of 19 FINAL MINUTES majority of the cumulative surplus of $7.6 million was actually $5 million in the final three years of the LRFF. Staff began building the FY 2015 forecast by assuming the same service levels as in FY 2014. The FY 2015 LRFF did not include ongoing labor negotiations. Any agreement beyond the 2 percent salary increase contained within the LRFF would impact the surplus. Funding the healthcare long-term liability could impact the LRFF. Assuming control of the Palo Alto Airport could have an impact on the General Fund, because the Airport Fund could not sustain expenditures with revenues in the first few years. The LRFF also did not contain information regarding third tier pensions. As more and more employees moved to the third tier, the change would have a positive impact long-term on the LRFF. Staff did not know if the City would be exposed to the Healthcare Federal ExciseT. The California Public Employees' Retirement System (CalPERS) indicated it would set plans in such a way that employers would not bear the tax. In addition, the LRFF did not include additional Transient Occupancy Tax (TOT) revenues from new hotels. The Golf Course Reconfiguration Project was not fully included in the LRFF. The City's acquisition of the Post Office and the potential provision of fire services to Stanford University could impact the General Fund and LRFF. Any economic downturn could also affect revenues. The local economy in Palo Alto had improved substantially. An improved economy created problems related to parking and provision of services. Based on trends, underlying data, and revenues received through December 2013, Staff projected any revenue expected in FY 2014 as well as built the projections for FY 2015. Once FY 2015 began, Staff primarily reviewed the compound and/or growth rate and made reasonable adjustments based on underlying data. Property tax revenue showed a steady increase. Some of the recent spike in sales tax was due to one company, and Staff attempted to adjust for that. That adjustment was the reason for the projected downturn in FY 2015. The Utility User Tax (UUT) grew very slowly because it depended on consumption and costs of consumption. The TOT increased when new hotels opened, then tapered off to a regular growth rate. Staff believed the amount of Documentary Transfer Tax received was above the norm; therefore, Staff projected a slight decrease in FY 2016. In projecting major expenditures, Staff reviewed one-time adjustments and salary increases. Beyond FY 2015, Staff assumed a 2 percent annual growth in salaries; CalPERS projections; an 8 percent annual growth rate for healthcare costs; and a 2.5 percent Consumer Price Index (CPI) increase. The CalPERS contribution rate for Public Safety Employees was projected to be 40 percent in FY 2015 and 59 percent in FY 2023. The contribution rate for Miscellaneous Employees increased by 56 percent in the same time period. The rates did not include any assumptions regarding third tier pensions. The alternative model included funding for a Public Safety Building. Issuing Certificates of Participation (COP) in FY 2016 to fund approximately $34 million for a Public Safety Building would translate to Page 2 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES approximately $2.5 million in debt service. The projected surplus of $4.4 million would decrease to $1.9 million. If TOT revenues were utilized to fund a Public Safety Building, then the net operating margin for the alternative model varied between slight surpluses and slight deficits. Staff projected an additional surplus for FY 2014 of $5.9 million, primarily driven by higher than anticipated revenues. The LRFF assumed technical adjustments for rent charge increases, Stanford fire service decreases, and such items. Not included in the projection was any recommendation from the City Manager regarding adjustments to the FY 2014 Budget. Chair Berman introduced the members of the Finance Committee (Committee). Vice Mayor Kniss noted economic downturns were unpredictable, and the City experienced two incredible downturns in the prior 15 years. Lalo Perez, Administrative Services Director and Chief Finance Officer, explained that recessions historically occurred approximately every nine years. The Committee directed Staff to review compound annual growth for the prior 10 and 20 years to account for possible recessions. The range for the Budget Stabilization Reserve (BSR) was 15 percent to 20 percent with a goal of 18.5 percent. The City Manager had the discretion to recommend to the Council to transfer funds above 18.5 percent to infrastructure. Council Member Holman suggested Staff include information regarding assumptions and their bases in the Staff Report. Mr. Perez could make the information prominent and include the table of compound annual growth. James Keene, City Manager, suggested Staff include a sensitivity analysis chart that could demonstrate the impact of a recession and the multiplier effect. Mr. Perez felt including a sensitivity analysis chart for the top five revenue sources would be appropriate. Council Member Holman noted property taxes increased steeply while Documentary Transfer Taxes remained flat. She inquired whether the two taxes should be relational. Mr. Perez explained that Staff noticed a high percentage of properties assessed at $600,000. As those properties sold, they most likely would be reassessed at market value. However, homeowners were not selling their property; instead, they were renting their property. Page 3 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Joe Saccio, Assistant Director of Administrative Services, indicated Staff increased revenues to approximately $7.4 million in FY 2014. After FY 2016, Staff did not increase the Documentary Transfer Tax by the historical compound annual growth rate. In FY 2016, Staff believed revenues would revert to the mean and decrease to $6.6 million. Staff attempted to reset the base amount in order to have a realistic projection. Tarun Narayan, Management Specialist, added that the Documentary Transfer Tax was one-time revenue unlike property tax. Council Member Holman inquired whether TOT was based on the current rate. Mr. Saccio reported the TOT projection was based on the current rate of 12 percent. Council Member Holman requested Staff comment on the reliability of the UUT projections. Mr. Saccio indicated Staff assumed small or no increases in water, gas and electric rates in preparing the LRFF. Depending on usage, revenue would remain relatively flat. With respect to the telephone component of UUT, Staff did not have good data regarding potential increases. The general view was that the UUT would remain flat with perhaps some modest increases. Council Member Holman asked if Staff had an update regarding phone usage and related taxes. Mr. Saccio responded no. Council Member Burt stated residents had reduced water and electricity consumption on a per capita basis. He asked about gross consumption as a City with a population increase. Mr. Saccio utilized the Utility Department's five-year forecast in compiling the LRFF. The Utility Department's forecast included consumption factors. Mr. Perez added that the Utility Department would provide an update regarding rates at the Finance Committee's (Committee) April 15, 2014 meeting. Council Member Burt remarked that the rate of increase for UUT was higher than he would have assumed based on commodity assumptions. Page 4 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Mr. Saccio would review the matter. Anticipated rate increases would need to be factored into increases. Council Member Burt recalled that drought conditions were a driver toward permanent efficiency with respect to water consumption. He suspected that water consumption would be lower in 2024 than the projection. Mr. Keene believed the City's method for pricing water was not appropriate as fixed costs for delivering water were built into the rate. Large increases in water rates were planned for the next five-year period. He presumed the increases were included in the projection. Council Member Burt commented that water rates would level off in the next few years with completion of the Hetch Hetchy rebuild. Remaining increases could account for much of the projected increase. Mr. Perez reported the Committee previously directed Staff to provide benchmarking in comparison to cities similar to Palo Alto. Utilities Staff would report on that at the April 15, 2014 meeting. Mr. Saccio noted after 2015-2016 electric increases ranged from 3.6-6 percent, water increases from 3.8-7 percent, and gas increases around 1-2 percent. Council Member Burt asked if that was per annum. Mr. Saccio indicated the increases ranged over that period. He did not have a per annum percentage of increase. Council Member Burt inquired about the number of years in the time period. Mr. Saccio answered through 2023. Council Member Burt calculated a rate increase of slightly more than 0.5 percent per year over eight years. Chair Berman asked if that increase applied to water rates as well. Mr. Saccio reported the high range was 7 percent from 2016-2017 to 2017- 2018 for water rates with a lower percentage increase of approximately 3.8 percent. Council Member Burt inquired whether TOT revenues from three new hotels were assumed in the LRFF and whether those funds were dedicated to a Public Safety Building. Page 5 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Mr. Narayan noted TOT revenue from a total of five hotels was included in the LRFF. Council Member Burt commented that dedication of TOT revenue to a Public Safety Building was considered in the alternative model. Mr. Saccio added that Staff provided the Infrastructure Committee with a lower number for new hotel revenue to support infrastructure than what was contained in the LRFF. Council Member Burt inquired about the amount Staff utilized for debt service. Mr. Saccio explained that beginning in FY 2017 Staff expected to receive almost $700,000 more than identified funds for debt service support. Council Member Burt asked if Staff anticipated 30 percent more income from new hotels than the amount budgeted for debt service. Mr. Perez reported the market changed as a result of municipal bankruptcy cases; therefore, interest rates may not be the same as anticipated. The City's rating could be different, and Staff wished to be cautious. Council Member Burt noted the LRFF utilized CalPERS' official position of a 7.5 percent rate of return. The Committee may want to discuss relying solely on CalPERS projections; calculating and utilizing a more conservative projection; or not paying down unfunded liabilities. Mr. Perez reported Staff was discussing those topics with the Chief Actuary Officer at CalPERS and requested CalPERS provide options for agencies. If CalPERS provided options, then Staff could present those options to the Council. CalPERS was listening to Staff and others. Council Member Burt believed long-term infrastructure liabilities had revenues that offset expenses. If the City purchased the Post Office, avoiding high lease rates would offset the expense of the capital cost and renovations. If the City could eliminate the cost of the covenant not to develop at Cubberley, then it could set aside $2 million a year toward capital expenditures. Mr. Perez agreed that avoiding the cost of leases could pay for the debt service for acquisition of the Post Office. Renovating the Post Office would require a couple of years; therefore, the City would have two years of debt service with no income. Staff was reviewing options for purchasing the Post Office, including a cash purchase. Page 6 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Chair Berman asked if cash would be withdrawn from the BSR for the Post Office purchase. Mr. Perez did not want to utilize BSR cash as a first option, but would suggest the use of Stanford funds and Infrastructure Reserve funds. Utilizing those funds would then place limitations on other projects. Mr. Keene suggested Staff could include in the LRFF some strategic scenarios on a number of issues to contrast the status quo with alternatives. That could be helpful for the Council in speaking to the community about priorities or choices. He asked if the LRFF included increased maintenance for Cubberley. Mr. Perez indicated the LRFF did not include Cubberley maintenance on the operating side. Mr. Keene reported many drivers were not included in the LRFF, because the City did not have a plan to make the ongoing investments. Staff estimated the ongoing deficit for unfunded maintenance at Cubberley to be $16-$17 million, and that amount would continue to grow. He inquired whether Staff had a forecast for the Airport. Mr. Rossmann answered no. Mr. Keene stated the Airport was another example of shortfalls the City would have to consider. Mr. Rossmann explained the Airport was not included in the forecast because it was a different fund. The Airport could have an impact on the General Fund. Mr. Keene noted the City had many commitments with volatility and obligations. Demonstrating some of those in the LRFF would be helpful. Mr. Perez added that some of the areas would become known within the next few months, and Staff could begin placing them in the LRFF. Council Member Burt felt the $2 million a year from the covenant not to develop at Cubberley could be utilized to reduce deferred maintenance costs. He requested a graphic representation of the accelerated maintenance of streets so the public could see the accomplishments. The amount of funds allotted for maintaining streets after the goal was accomplished would be more than the amount needed. Hypothetically, those capital improvement dollars could be reallocated to other needs while maintaining excellent Page 7 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES streets from 2020 onward. He did not believe that projection was included in the LRFF. Mr. Perez concurred and would provide a projection as part of the Proposed Budget document. Council Member Burt recalled the City's deliberate actions that resulted in the current financial circumstance. He inquired about the amount of a deficit had the City not made changes. Mr. Rossmann reported the City would be paying approximately $750,000 more today in pension benefits alone. Council Member Burt felt the Council, community and Staff should see those numbers. He asked if Staff thought a deficit could be more than $10 million. Mr. Saccio agreed that the City positioned itself through reductions and retirement plans to save a great deal of money. Council Member Burt requested a rough calculation of the amount of a deficit. Mr. Perez could provide a point in time number from a few years ago. Council Member Burt remarked that the Council was proceeding with much of the infrastructure backlog. The City was moving in the direction of exceptional services and strong infrastructure. Chair Berman inquired about hiring a consultant regarding property tax and Proposition 13. Mr. Perez indicated Staff was considering other data, because people were holding their homes. The GIS map contained permits obtained for particular property, and Staff wanted to add the assessed valuation. Staff was attempting to obtain additional information to have more data for projections. Mr. Narayan explained that Staff could utilize data such as the number of residential properties valued at less than $600,000 and a five-year history of residential property sales to refine projections for Documentary Transfer Tax and property tax. Council Member Holman noted that assessed value was different for remodel and demolition of residential properties. She was not confident that the Building Department was aware of situations where homes were technically demolished rather than remodeled. Page 8 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Mr. Perez discussed that with Planning Staff. Having that information on the GIS would hopefully assist the Building Department. MOTION: Chair Berman moved, seconded by Vice Mayor Kniss to forward the Long Range Financial Forecast to the Council as an Action Item. Council Member Holman suggested the Motion incorporate the points Committee members made during the discussion. Mr. Perez added that Staff would outline information they could not include in the LRFF and would provide that information in the Budget or further reports. Vice Mayor Kniss commented that Proposition 13 changed everything. MOTION PASSED: 4-0 Mr. Keene noted in 2009 27 percent of Palo Alto single-family residential properties were assessed at under $200,000. Vice Mayor Kniss felt that information needed to be woven into budget information. Council Member Holman added that commercial properties were more extreme. Chair Berman announced Agenda Item Numbers 2 and 3 would be heard together. 2. Inventory Management Audit 3. Staff Response to Inventory Management Audit Houman Boussina, Acting City Auditor, reported that management requested the City Auditor consider the audit. The audit was conducted in accordance with the annual Work Plan. The objective of the inventory management audit was to determine if the City had adequate controls to ensure accuracy and completeness of inventory records, accountability for inventory transactions, and safeguarding of inventory. The City included inventory primarily at the Municipal Services Center (MSC) and the Regional Water Quality Control Plant. It was important to consider the areas outside the scope of the audit. Those areas included disposition and use of materials after leaving the City's warehouses; management of surplus or obsolete materials; staffing; inventory carrying costs; the appropriateness of stocking levels and reorder points; organization and condition of inventory; and a 2 percent surcharge policy. The audit risk assessment process identified the Page 9 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES other areas of risk. Although the areas were excluded from the audit, they could be addressed in future special advisory memoranda and/or audit reports. Mimi Nguyen, Senior Performance Auditor, indicated Finding 1 found that at least $4.2 million in inventory, more than half of total inventory, was not subject to consistent or adequate inventory management controls. The lack of reliable and complete inventory data could impair the City's ability to know the quantity, location, condition and value of inventory. Finding 2 found that inventory records were inaccurate for 20 of 182 materials in the sample, indicating an 89 percent accuracy rate overall for the $3.6 million in recorded inventory. Inaccurate inventory records could result in financial misstatements and operational inefficiencies. Finding 3 found from January 1, 2007 through April 19, 2013 about $1 million in inventory was issued without reservations evidencing the need and authorization. Also about $8.5 million in inventory, about 58 percent of total inventory issued, was processed using a generic user account accessed with a shared password. In addition, Staff performed incompatible duties in managing and processing inventory. Controls ensuring accountability and transparency of inventory transactions reduced the risk of fraud and abuse and helped ensure materials were appropriately and timely procured and made available. Finding 4 found that more than 50 percent of the City's 4,383 stock materials, $2.5 million in inventory, had not turned over in a one-year period. Inventory turnover decreased from 87 percent in FY 2007 to 64 percent in FY 2013. Inventory that did not move could indicate a waste of resources. Finding 5 found that there were a large number of cards granting access to the MSC and the MSC warehouse, including cards without adequate identifying information. Other security concerns were noted. Physical security controls were required to safeguard and protect the City's inventory and sensitive and strategic sites. As a result of the audit, the City Auditor made 14 recommendations addressed to the Administrative Services Department (ASD), Utility Department, Public Works Department, and Information Technology (IT) Department. James Keene, City Manager, believed Staff's response could answer Finance Committee (Committee) questions. Joe Saccio, Assistant Director of Administrative Services, acknowledged that management requested the audit and requested the Auditor review controls, policies and procedures. Staff could not find any material misstatements in financial statements. Staff implemented locked doors and gates and security cards to protect Utility, IT and Public Works goods. New containers and new storage units were provided at the Regional Water Quality Control Plant for storage of items outside the warehouse. Warehouse management Page 10 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES and department users were in the process of clearing aged and unused inventory for return or surplus sales. Vice Mayor Kniss asked Mr. Saccio to include in his responses the systems Staff utilized. Mr. Saccio reported that Staff did not utilize SAP for all items of inventory. Staff would utilize SAP for IT equipment stored at the warehouse. Other databases and systems were used to track transformers and meters. Staff would review SAP's current uses and review the costs and benefits of continuing use of SAP, enhancing SAP or using other software. The City had a decentralizing system for tracking and managing goods. He inquired whether he provided the information Vice Mayor Kniss sought. Vice Mayor Kniss responded no. Mr. Saccio reported that Staff accounted for the $919,000 of IT equipment. At the time of the audit, the goods were not being tracked in SAP. That was an omission; however, goods were manually tracked. One solution was to incorporate identification of IT goods in SAP. The Auditor recommended blind counts, and that was implemented. Public Works would institute a card reader system and replace a hard key system. Staff purged users originally identified for entry into the warehouse to active users and only people who needed access to the warehouse. Staff needed to review all procedures and policies and to document all roles and responsibilities of everyone in the departments. Staff needed enhanced communication and procedures among all departments. Staff needed system modifications and enhancements, whether in SAP or other systems, to address issues raised in the audit. Staff would generate periodic reports for users of inventory, so they could have accurate information regarding inventory. The Public Works Department would implement physical security measures and coordinate with the Emergency Response Department. Staff worked to safeguard City assets within existing budgetary and organizational constraints. Staff acknowledged that improvements could and would be made. The Auditor noted that $4.2 million in inventory was not recorded in SAP. That did not mean that the City lost $4.2 million in inventory. More than $900,000 in IT goods were stored at the warehouse, but were not recorded in the inventory system. Remaining items were accounted for in a different system. Lalo Perez, Director of Administrative Services Department and Chief Finance Officer, explained that the City's practice for many years was to expense out some inventory items. When items were expensed out, they were not tracked in inventory. Staff wanted to track inventory in SAP if Page 11 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES possible; however, SAP might not be the most practical method for some areas of the City. Mr. Keene noted that SAP was implemented in 2003 to integrate many different systems. The City underfunded the investment in SAP and training, such that former, parallel practices remained in use. Some problems would be simple to remedy. He suggested the various departments explain their reasons for doing things in certain ways and whether the additional cost to implement every level of control was worthwhile. Council Member Holman did not find a Staff response to the disposition and use of materials after leaving warehouses. She inquired whether the levels of inventory were appropriate, given the dollar amount of inventory. Mr. Perez requested the Auditor clarify disposition and use of materials. Council Member Holman clarified that she wanted to know whether an item was utilized for a City project once it was checked out of inventory. Vice Mayor Kniss asked if Council Member Holman wanted to know if Staff implemented a system to track each item. Council Member Holman replied yes. Mr. Boussina recognized this as an important element of safeguarding and appropriately using inventory. The audit stopped at inventory management. This was one reason Staff needed solid controls over the movement of inventory. Once transactions were recorded, Staff should know inventory was going out for an approved and authorized purpose and cause. Mr. Perez reported some items could be found in a tracking system. For transformers, the Utility Department was required by regulatory mandate to track them. One of the challenges of using SAP was the checking in and out of inventory during repairs to equipment. Some items were not tracked and Staff did not know where those items would eventually be used. Council Member Holman expressed concern over the lack of inventory tracking and control. She asked if levels of inventory were appropriate and if there was a definition of surplus. Mr. Perez indicated there was a policy and procedure regarding surplus inventory. Surplus was an item no longer needed for City operations. Staff had to determine whether an item had a value or not. Based on thresholds for value, the determination of whether an item was surplus was made by the warehouse supervisor or Mr. Perez. In terms of inventory, Staff worked Page 12 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES with departments to identify inventory. As a result of the audit process, Staff was receiving better cooperation. Mr. Boussina identified what appeared to be inventory, essentially materials that were stored but not placed into operation, along the side of the building. The inventory was open to the MSC yard and accessible. He understood the items were expensed and were accessible to trucks for reloading and restocking. The items were not subject to inventory management control. The audit team physically counted and valued the items. It was not practical to audit them in the same way as the areas in Findings 2-5. James Allen, Water Quality Control Plant Manager, reported stock items in SAP were assigned to a specific work order when taken from stock. Staff could track the specific stock item to a specific corrective repair. Certain stock items, such as latex gloves and housekeeping supplies, were not tracked. Council Member Holman agreed consumables were a different category. Mr. Allen added that consumables were taken from City stock. Council Member Holman reiterated her question regarding the level of inventory. Mr. Allen stated that much of the wastewater treatment equipment was kept on hand in case of a corrective repair. That equipment may not be needed for 10-30 years. Recently dead stock valued at approximately $21,000 was identified because of obsolete equipment. He did not believe that amount was excessive in terms of the entire Wastewater Treatment Fund. He believed the amount of inventory was appropriate. Tom Marshall, Assistant Director for Utilities Engineering, noted the largest and most expensive item the department was holding was transformers. Transformers were needed to replace failures in the field and for new customer connections. A typical lead time to obtain a transformer was six to nine months, resulting in the need for a large inventory. Council Member Holman was not sure that transformers and items for emergency repairs approached the amount of inventory in terms of dollar investment. An incorrect amount of inventory was a systemic issue. She was shocked by the number of access cards issued and the use of a generic account accessible by a shared password to issue $8.5 million in inventory. She requested more information regarding warehouse expansion at the Regional Water Quality Control Plant prior to any money being spent. Her Page 13 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES overarching concern was the culture of the system; that Staff did not raise concerns before the audit was performed. Mr. Saccio did not deny that the list of people with access was too great. During business hours, no one accessed the warehouse unless accompanied by a warehouse person responsible for inventory. Only a bona fide supervisor in charge of a specific project could enter the warehouse at night during an emergency. Some protections were in place to safeguard inventory. Staff did not believe many goods were being removed through theft. Mr. Keene suggested department heads address practices that evolved within departments and became ingrained. The Chief Financial Officer (CFO) was frustrated by the pace of the integration effort and requested an audit. The audit was transparency on a management issue. There was not a systematic way to verify risks with the use of old systems. Vice Mayor Kniss felt Staff provided more of a problem than an answer. If SAP was not sufficient or not operating correctly, it was the City Manager's problem. Clearly there were many problems and few, if any, answers. She was attempting to understand who was responsible for the outcome. Within six months, the Committee should hear Staff's detailed responses and solutions. Council Member Burt heard a number of responses, but no answers. In 2007 the City had an annual inventory turnover of 87 percent, which dropped to 64 percent in 2013. Staff's responses did not explain what changed between 2007 and 2013. He inquired about changes in the respective departments that would account for a lower turnover rate. Dean Batchelor, Assistant Director for Utilities Operations, reiterated that $82,000 in inventory was unsecure and unaccounted for. The items were mostly truck stock pieces, nuts, bolts, washers, connectors. The highest limit item in there was $165. Council Member Burt noted approximately $8 million in total inventory between Utilities and General Fund. He inquired about the amount of inventory carried by Utilities. Mr. Batchelor answered approximately $5-$6 million. He reported $2.1 million of inventory was transformers. Transformers were tracked on a monthly basis through Access programs, because of the testing aspects of it. Council Member Burt asked if those were in place in 2007. Page 14 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Mr. Batchelor indicated Utilities did not have as much stock and did not perform as many rebuilds in 2007. Council Member Burt remarked that a lower turnover of inventory resulted in more stock. If there were sound operational reasons for deliberately higher stock, he would have put that in the report. He did not hear any reasons for needing more stock. Mr. Marshall did not have an explanation for having more stock and less turnover in the warehouse. Utilities Staff could request ASD assistance to determine what was in the warehouse and why it was there. Typically Utilities Staff told ASD Staff which materials to stock and the number of items to be stocked. Council Member Burt asked when Staff received the audit report. Mr. Marshall responded December 2013. Council Member Burt inquired about progress in understanding the reasons for a lower rate of turnover. Mr. Marshall reported Staff was reviewing inventory in the warehouse to determine the items that needed to be stocked. Mr. Allen noted the Water Quality Control Plant identified $21,000 in dead stock. Those items were needed to repair the wastewater treatment plant and might be kept for 50 years or the life of the equipment. Council Member Burt remarked that Staff was turning over inventory at a significantly slower rate and carrying more inventory today. Either some fundamental change in operational needs occurred or the City was carrying too much inventory because Staff was sloppy. Mr. Allen reported Staff performed a complete review of all stock items and evaluated the number of items needed for each stock item. Council Member Burt agreed that possibly the Water Quality Control Plant did not have a decrease in turnover. He inquired whether its turnover rate decreased. Mr. Allen did not know. Some of the equipment did have a use, even if the resale value was low, and should not be discarded. That could contribute to the decreased turnover rate. If Staff included non-stock inventory, items that were expensed out, then the Water Quality Control Plant would have an even lower turnover rate. Turnover may not be a good method to benchmark the efficiency of the warehouse. Page 15 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Council Member Burt inquired whether the methodology for determining turnover rate remained the same from 2007 to 2013. He did not find any information indicating changes in the methodology between 2007 and 2013. Mr. Perez needed to provide better analytics. Staff could present that information when they returned to the Committee. Council Member Burt inquired whether Staff analyzed inventory turnover by department. Mr. Boussina indicated that inventory turnover was reported at a higher level in the report; however, he could break it out by department. Council Member Burt believed that was a necessary first step in order to figure out where to focus. Mr. Perez would identify the big ticket items versus general inventory ordered by all departments. Staff could provide specific details and factual numbers. Mr. Keene commented that updating and reporting regarding the audit would continue. Staff was not in a position to work out all issues before presenting the audit. Working through recommendations, responses and solutions would take focus, time and effort. Staff's responses at the current time would not satisfy the Committee. Staff wanted the themes of Committee questions in order to respond to them at a later time. Council Member Burt related his experience with inventory management issues in other organizations. Mr. Keene noted a number of different solutions would be needed. Council Member Burt felt metrics could be beneficial. One department could require a lower rate of turnover of materials by the nature of its work. Compiling a department-by-department baseline was one important measurement to establish the goal. He did not hear a Staff response regarding the use of technology beyond using or not using SAP. In industrial operations, technology had improved greatly. Once set up, new technology was easier to use than old methods. MOTION: Vice Mayor Kniss moved, seconded by Chair Berman to recommend that Staff return to the Finance Committee within six months with the answers on how to correct the audit findings, incorporating measurements, detailing in an easy to understand way how the audit findings will be fixed. Page 16 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Vice Mayor Kniss believed Staff's responses and solutions should return to the Committee. Clearly Staff had an idea of what they could do, but no clear idea of what they would do. Mr. Saccio noted Staff provided an action plan to the auditor on each recommendation and timeline. Staff viewed responses to the audit as a work in progress. Vice Mayor Kniss stated at some point solutions were needed. Chair Berman inquired about a timeframe for providing the audit to the Council. Mr. Perez recalled that in past actions the Committee accepted the report but conditioned it upon Staff returning with an update. The report would go to the Council and Staff would return within six months to provide a status update. Chair Berman asked Vice Mayor Kniss if that action coincided with her intentions in the Motion. Vice Mayor Kniss agreed with the plan. The audit may not be resolved in six months. Council Member Burt discussed the report aptly. Staff ought to be able to utilize technology for tracking inventory. MOTION RESTATED: Vice Mayor Kniss moved, seconded by Chair Berman to direct Staff to return to the Finance Committee within six months with an indication of how the audit findings will be tracked or systematized so Staff will know what is in inventory; 2) to accept the Audit; and 3) forward the Audit to the full Council. Mr. Keene asked if the audit would be forwarded to the Council. Mr. Perez answered yes. It would be placed on the Consent Calendar. Mr. Keene inquired about the Council's action with respect to the audit. Mr. Perez reported the Council could accept the audit. Mr. Keene did not wish to have a Council discussion if the Committee had a good direction for Staff. Vice Mayor Kniss indicated the goal was for Staff to return to the Committee. Mr. Keene reiterated that Staff knew the problem, but not the detailed steps to resolve it. Page 17 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Chair Berman remarked that the City purchased SAP in order to integrate all departments. All departments should utilize the same solution. Obviously Staff did not know what inventory was on the shelves. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER 1) to have this Item go to Council under the Consent Calendar; 2) to include these Minutes when the Item goes before Council; 3) to have Staff respond within six months to the Finance Committee; and 4) to have Staff account for the level of inventory, the culture of responsibility and accountability, and the tracking and disposition of the materials posted at the warehouse. Mr. Keene reported that technology could be utilized to implement the redesign of systems. The City could have some software capacity that was not being used. Staff was assessing the future of SAP and methods to support change efforts. MOTION AS AMENDED PASSED: 4-0 Future Meetings and Agendas Lalo Perez, Director of Administrative Services Department and Chief Finance Officer, announced the next meeting was scheduled for March 4, 2014. Staff would present the Emergency Medical Services First Responder fee proposal; and the Utilities Advisory Commission recommendation to adopt a Resolution establishing the Palo Alto Green Gas Program. The Agenda for March 18, 2014 would include the Mid-Year Budget; the Utilities Department organizational assessment; the local solar plan initiative; and disposition of cumulative Palo Alto Green revenue. He requested the meeting time for the March 18, 2014 meeting be moved up to accommodate the lengthy Agenda. Council Member Holman was not available at an earlier time. Chair Berman also was not available at an earlier time. Vice Mayor Kniss would be available at the same or an earlier time. Mr. Perez reported the meeting time would be 6:30 P.M. on March 18, 2014. On April 15, 2014, Agenda Items were proposed financial plans for electric, gas, and wastewater; Community Development Block Grants (CDBG); Human Service Resource Allocation Process (HSRAP); and a storm drain fee increase. Budget hearings would be held in May 2014. Chair Berman inquired about the process for scheduling Budget hearings. Page 18 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 FINAL MINUTES Mr. Perez explained that the Finance Committee (Committee) could change meeting nights if a Committee Member was not available. If that was not possible, then Staff would ensure the wrap-up meeting was scheduled at a time when all Committee members could participate. Chair Berman asked how the schedule was determined. Mr. Perez would send Committee members a proposed schedule and they would notify him of conflicts. Adjournment This meeting was adjourned at 9:50 P.M. Page 19 of 19 Finance Committee Regular Meeting Final Minutes 2/18/2014 Attachment E City of Palo Alto Policy, Process, and Procedures Page 1 of 14 INVENTORY MANAGEMENT CITY OF PALO ALTO POLICY, PROCESS, AND PROCEDURES FOR INVENTORY MANAGEMENT EFFECTIVE DATE: September 5, 2014 APPLICABILITY: Inventory Management PURPOSE The purpose of this document is to provide guidance to city staff by policy, process and procedures for the treatment of City inventory. They are the rules and methods of conducting business. The processes incorporate internal controls that help ensure the responsible use of public funds and efficiency of operations, including the safeguarding of assets, the reliability and completeness of information reporting, and compliance with laws and regulations. WHY IS INVENTORY MANAGEMENT IMPORTANT TO THE CITY?  Responsible use of public funds. Are we purchasing what we need? Are we using what we purchase? Are we purchasing at the best price?  Operational efficiency. Do we have the materials we need to serve our customers? Do we know what we have? Are we managing what we have?  Accurate costing and accounting. Are the financial statements capturing the assets and costs correctly? Are the costs being charged correctly? LAWS AND REGULATIONS Charter of the City of Palo Alto, Section 6 Duties of City Manager: “It shall be the duty of the City Manager to have general supervision over all city property and equipment and its use for the public or by city employees.” Municipal Code of the City of Palo Alto, 2.08.075 Care of city-owned property. “Each department head and council-appointed officer shall be responsible for care and safekeeping of all city-owned property used by or in the custody of the department and shall take steps as necessary to ensure that the use or condition of said property does not incur legal liability or loss for the city or its officers and employees. The term "property" as used herein includes land, buildings, structures, vehicles, equipment, tools, furniture, supplies, money, securities, and components of the utilities system.” Municipal Code of the City of Palo Alto, 2.08.150 Department of Administrative Services. Attachment E City of Palo Alto Policy, Process, and Procedures Page 2 of 14 INVENTORY MANAGEMENT The Department of Administrative Services shall be under the control of a Director of Administrative Services who shall be accountable to the City Manager. The duties of the Director of Administrative Services shall be as follows:  “To operate and maintain the warehouse and storage facilities of the city and such control records as are necessary for the proper inventory of stocks and supplies.”  “To coordinate the warehousing of city-owned materials and disposition of city-owned surplus materials.” BEST PRACTICES The City of Palo Alto’s inventory policy guidelines and procedures are guided by the federal Governmental Accountability Office’s (GAO) Best Practices, which specify that an organization should:  Know the quantity, location, condition, and value of assets it owns.  Safeguard its assets from physical deterioration, theft, loss, or mismanagement.  Prevent unnecessary storage and maintenance costs or purchase of assets already on hand. POLICY All city assets held in inventory, defined as a material or equipment replacement part (material) waiting to be placed into operation, must be:  Identified, catalogued, and tracked.  Managed using the City’s adopted inventory management system or a comparable inventory management system approved by the Administrative Services Department.  Recorded accurately in the City’s accounting system.  Safeguarded from physical deterioration, theft, loss, or mismanagement. DEFINITIONS Inventory: A list of material or equipment replacement parts that are stored and waiting to be placed into operation. These goods consist of those that are “valued” and treated as an asset on the balance sheet and those that are “non-valued” and treated as an expense. Each type is expected to be used on a future basis, either one time or periodically. IT Goods: Equipment that IT is responsible for such as: laptops, desktops, monitors, and printers. IT Consumables: Equipment that IT is responsible for and is valued at less than $100 such as: mice, keyboards, laptop bags, and DVD drives. Material Master: A record in SAP that describes a material or supply item. It is the central repository of information on materials in SAP. Material Reservation: A requisition created for the withdrawal of stock item(s) from the Warehouse. Non-valuated Stock: Non-valuated stock is tracked by quantities, not by cost or value. Non-valuated stock is entered as an expense in accounting immediately as it is received and is entered into SAP. . An example is computer equipment under $5,000. By accounting policy, this equipment is expensed upon and is stored at the Attachment E City of Palo Alto Policy, Process, and Procedures Page 3 of 14 INVENTORY MANAGEMENT City’s warehouse until requested by IT. All computer goods in this category will be listed in SAP for tracking and stored for future use in the MSC Warehouse. Purchase Requisition: Request made for Purchasing to procure a certain quantity of a material. Point of Contact: Pre-identified individual for each Department responsible for the care and safekeeping of city inventory. For example, currently the Supervisor of Operations, in each Utility, who serves as that Utility’s liaison between Stores, their Utility’s Engineering, and Operations regarding product information and specifications. Stock Inventory (or Stock): Inventory that is ordered regularly and tracked in SAP Valuated Stock: Goods that have a value and are placed into inventory to be charged or expensed to departments, or capitalized as they are placed into operation or used for a capital project. Valuated Stock is treated as an asset on the balance sheet. PROCESS GUIDELINES 1. One must first determine whether the material is city inventory, by considering the following: a. Will the material be purchased or used again in the future? b. Will the material be stored, rather than placed immediately into operation? c. Is it important to know where it is and how much is available? d. Will a customer or department be charged for the Material? If answer to any of the above is “yes,” then material should be treated as city inventory. 2. Identify if the Material can be managed using the City’s adopted inventory management system. a. All of the following materials are managed using the City’s adopted inventory management system:  Current stock items in the Municipal Services Center (MSC) and Water Quality Control Plant (WQCP) Warehouses  WQCP Emergency Parts  IT Computers and Miscellaneous Equipment  Any materials that are not deemed “exceptions” (See page 5 of this document) that may be managed outside the SAP inventory management system. b. See EXCEPTIONS section below for a list of materials categories that are not considered exceptions and may be managed outside the SAP inventory management system. c. To qualify a material for management outside of the SAP inventory management system, the Department must identify why it cannot be managed in SAP and establish a comparable set of inventory controls for review and approval by the Administrative Services Department. 3. The Administrative Services Department will be responsible for City inventory managed within the City’s adopted inventory management system. All Departments will be responsible for City inventory, within their respective area, managed outside of the City’s adopted inventory management system. Purchasing and Stores staff are responsible for tracking all parts and materials until issued to departments. Once parts and materials are issued to departments, it is the responsibility of the receiving department to safeguard and appropriately place those parts and materials. Attachment E City of Palo Alto Policy, Process, and Procedures Page 4 of 14 INVENTORY MANAGEMENT 4. Overall process flow of material categories is summarized in Appendix 6. HIGH-LEVEL WORKFLOW DIAGRAM PROCEDURES The following procedures are to be followed for all goods at City Warehouses. 1. General a. Stores and Purchasing will work with one identified “Point of Contact” per Utility and one for the WQCP. 2. Card Key Access a. Departments requesting card access to city warehouses will fill out a Security Card Request for Access Form found on U:Drive b. Forms are forwarded to the Public Works Facilities Maintenance Operations Manager (Facilities Ops Mgr) for review and approval. c. Facilities Ops Mgr will contact the Warehouse Manager for approval. Warehouse Manager will accept or deny the request based on the reason for requesting access. d. Facilities Ops Mgr will then enter into the system to activate card. e. Facilities Ops Mgr and Stores Manager will review and potentially revise the list of all card holders annually. Attachment E City of Palo Alto Policy, Process, and Procedures Page 5 of 14 INVENTORY MANAGEMENT 3. Materials Reservations a. All materials and supplies must be reserved in advance or at the counter on a walk-in basis. The Storekeeper will enter the relevant information into SAP and pull the requested parts from the warehouse shelves.  To submit a reservation, use MG21.  Stores staff executes ZQMM_MB25 for daily reservation pick list.  Stores staff pulls goods from pick list.  Stores staff performs Goods Issue via transaction code: MIGO o Enter: reservation number o Update quantity o Post reservation o System updates quantities b. When there is an after-hours emergency, authorized personnel may use his/her card to enter the warehouse, create an After-Hours Pull Sheet (See Appendix 1) listing the parts to be taken from the warehouse, and then pull the needed parts. The following morning, the Storekeeper will verify that the Pull sheet is accurate, and post in SAP. c. For IT materials valued less than $100, Stores staff will receive equipment in SAP using transaction: MIGO.  IT consumables will be delivered within 2 business days to IT at the Civic Center A-Level.  Authorized IT personnel will sign delivery sheet upon receiving equipment and store in a secured, caged area. 4. Parts Specification Changes (see Summary Flow Chart on page 6) a. Stores will provide semi-annual lists of slow-moving goods, as well as inventory turnover data, to Points of Contact. b. Points of Contact will report back to Stores and Purchasing staff within ten (10) working days regarding goods that are no longer needed, goods that are needed in different quantities, and/or newly specified or needed parts. c. In the case of newly requested parts, parts to be discontinued, and special-order (one-time) parts, specific forms will be used (see Appendices 2, 3, and 4). These forms may be completed and signed online; for Utilities, they require approval by both Operations and Engineering Divisions. d. Specific instructions for locating and tracking parts in SAP may be found in Appendix 5. Attachment E City of Palo Alto Policy, Process, and Procedures Page 6 of 14 INVENTORY MANAGEMENT 5. “Non-Valuated” Stock and Use of Outside Containers a. IT equipment  IT goods that are valued at more than $100 and are purchased in quantities of 10 or more are to be stored at the Stores as a non-valuated stock item.  All IT goods received at the Stores Warehouse must be stored securely in the cage designated for IT equipment only. No other goods are to be stored in that area.  Only authorized IT personnel are to request IT goods from the Stores Warehouse  Only Stores Warehouse personnel are to have access to the IT cage. b. WQCP  Parts ordered for emergency repairs or unplanned maintenance are designated “non-valuated stock” and stored in the Towers, outside storage containers, and/or WQCP warehouse.  WQCP staff will physically count non-valuated stock once per year and provide updated counts to Stores.  To pull parts from the towers and outside containers or to move parts between the towers and outside containers, use a “Non-Valuated Stock Pull Ticket” to document the request (see WQCP P&P Appendix 3) and return to Storekeeper for entry into SAP. c. Returned items from jobs  These items will be treated as non-valuated stock and stored, listed, and tracked in SAP. 6. Cycle Counts a. Warehouse Supervisor creates Cycle Counts for both MSC and WQCP using T-codes ZMICN b. MI21 is used to print the count sheets c. Staff does blind count of stock items on list Attachment E City of Palo Alto Policy, Process, and Procedures Page 7 of 14 INVENTORY MANAGEMENT d. Lead or Supervisor will enter counts into SAP using T-code MI04. e. Lead or Supervisor then runs report (T-code MI20) which shows any discrepancies in the count vs what is in SAP. The Supervisor or Lead then physically re-checks stock on-hand to ensure the correct counts are entered in SAP. f. After recounting stock in question the Supervisor or Lead can then make adjustments as needed before posting counts into SAP. EXCEPTIONS List of Exceptions 1. The following equipment is ordered by Department staff and not through Stores or Purchasing staff: a. Electric Meters (pending results of report by City Auditor, expected September 2014) b. Transformers c. Certain specialized materials required for CIP projects (Stock items needed for CIP projects are ordered through Stores.) d. IT consumables (valued at less than $100) that are delivered to the Stores Warehouse must be delivered to IT at the Civic Center A-Level storage within 2 business days e. Low-volume IT items, including servers, switches, and wireless access points. These are delivered directly to IT at City Hall. 2. The following equipment is ordered by Stores, but received and tracked by Utilities: a. Electric Poles b. North Dock Stock (low-value and high revolving parts commonly needed for jobs) Reconciliation with SAP 3. Reconciliation with SAP for exceptions 1. b., c., d., and e. above is as follows: a. Transformers are counted by Utilities staff once per month and results reconciled in their Access database. Total counts are reconciled with ASD Accounting staff annually. b. Specialized and non-stock materials purchased for CIP projects are immediately charged to the relevant jobs, and do not pass through the inventory system. c. IT consumables are expensed and delivered within 2 days to City Hall. These goods are not tracked in inventory system, but are counted and reconciled against the Purchase Order (PO). d. IT servers, switches and WAPs above $5,000 in cost are capitalized and any remainder is expensed. These goods are reconciled to PO and are not tracked in inventory system. 4. Reconciliation with SAP for items 2.a. and b. above is as follows: a. Electric poles are physically counted by Utilities staff once per quarter and results reconciled with SAP. b. For North Dock Stock, Utilities operates an open storage location for its crews. The location is kept locked between uses, and Utilities will submit to Stores quarterly physical inventories. RELATED REFERENCE MANUALS AND PROCEDURES  Purchasing Manual CityConnect/Departments/Administrative Services/Purchasing Manual  SAP Training Manual CityConnect/Departments/Administrative Services/Purchasing/SAP Training Manual Attachment E City of Palo Alto Policy, Process, and Procedures Page 8 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 1 Print Name Attachment E City of Palo Alto Policy, Process, and Procedures Page 9 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 2 Attachment E City of Palo Alto Policy, Process, and Procedures Page 10 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 3 Attachment E City of Palo Alto Policy, Process, and Procedures Page 11 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 4 Attachment E City of Palo Alto Policy, Process, and Procedures Page 12 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 5 Inventory “How-To’s” for User Departments General Information This is a brief informational sheet (helpful tips, approvals and updates) about managing parts in the warehouses’ inventory. Helpful Tips Before placing a part in inventory please consider that storing the spare part may not be economical or beneficial. Please ask yourself the following when considering adding a part to inventory. Not Beneficial: » Parts might not be used, or may be used maybe once or twice a year » If a part is stored; the storing of the part may lead to defects » Maintaining inventory has costs associated with storing the part » Part is readily available when needed from a supplier Beneficial: » Long lead time for parts » Part is needed in an urgent manner; no waiting for parts can be considered » Part is not readily available » Storing of the part will not cause any defects; long shelf life Approval Process All inventory requests are routed through Point of Contacts (POC), depending on the service group. When the Point of Contact (POC) receives the inventory request, this individual will approve or route accordingly to the appropriate approver within the department. Generally, the POC is the Operations Supervisor for that Utility. For the Water Quality Control Plant (WQCP), the Plant Manager is the POC. Inventory Updates When a standard parts review or maintenance procedural update occurs, if parts are replaced by other parts, parts deleted, or parts added, min/max updates, etc.; this information and inventory paperwork needs to be submitted to the Inventory Manager. It is the responsibility of the Departments to inform Stores of what to have in inventory. The inventory listing is posted online via the City of Palo Alto’s website by the Inventory Manager. SAP Report If you choose to pull the report yourself, follow these steps. From SAP, enter transaction code: ZMMR05 Attachment E City of Palo Alto Policy, Process, and Procedures Page 13 of 14 INVENTORY MANAGEMENT Enter in the Material Number range you’re selecting. The below is an example pulling Water parts. The inventory department groups the Material Numbers depending on the type of part / inventory. 020000 – 029999 = Water 030000 – 039999 = Electric 040000 – 049999 = Gas 050000 – 059999 = Office Supplies 060000 – 069999 = Waste Water 090000 – 099999 = Safety / Public Works Storage Location: MSC or WQCP Once you’ve updated your report to show all the columns available, you will be able to use this information to assess your stored parts and materials. Attachment E City of Palo Alto Policy, Process, and Procedures Page 14 of 14 INVENTORY MANAGEMENT Inventory Management PPP Appendix 6 City of Palo Alto (ID # 5243) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Resolution Vacating Public Service Easement at 1050 Page Mill Road Title: Adoption of a Resolution Summarily Vacating Public Easement Which has been Relocated at 1050 Page Mill Road From: City Manager Lead Department: Administrative Services RECOMMENDATION Staff recommends that Council approve the attached Resolution Summarily Vacating a 10’ wide Public Utilities Easement (PUE) at 1050 Page Mill Road, Palo Alto, CA (Attachment A). DISCUSSION The owners of the property at 1050 Page Mill Road have requested that the City vacate a 10’ wide 1954 Public Utilities Easement (PUE) which is no longer necessary since the utilities were relocated during a prior construction project. Therefore, the easement is no longer necessary for public use. Staff has notified AT&T (formerly SBC Communications), the City’s Utilities, Public Works and Planning Departments of the proposal to vacate the PUE and all concur with the vacation. Therefore, staff recommends the PUE be vacated in accordance with Section 8333 of the California Streets and Highways Code. RESOURCE IMPACT The easement vacation processing fee of $1,811.00, as set forth in the Municipal Fee Schedule, has been paid by the owner in Fiscal Year 2014. POLICY IMPLICATIONS The recommendation does not represent any change to City policies. The Planning Department has determined that the vacation of this easement is in conformity with the Palo Alto Comprehensive Plan. ENVIRONMENTAL REVIEW The proposed summary vacation of the public utilities easements are categorically exempt from the review under the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. City of Palo Alto Page 2 Attachments:  Attachment A- 1050 Page Mill Road Summay Vacation Resolution (PDF) Attachment A Attachment A Attachment A Attachment A Attachment A City of Palo Alto (ID # 5208) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: 3672 Middlefield PALL - Disapproval of Historic Designation Request Title: Denial of a Historic Designation Request for the Palo Alto Little League Site located at 3672 Middlefield Rd. From: City Manager Lead Department: Planning and Community Environment Recommendation The Historic Resources Board (HRB) and City staff recommend that the City Council disapprove the request of Jason Yotopoulos to designate the existing recreational structure at 3672 Middlefield Avenue, known as the “Middlefield Ball Park”, to the Palo Alto Historical and Architectural Resources Report and Inventory (“City’s Historic Inventory”) on the grounds that it does not meet the Criteria for Designation of historic structures/sites in Palo Alto Municipal Code (PAMC) Section 16.49.040(b). Executive Summary On September 29, 2014, Palo Alto resident Jason Yotopoulos submitted a request to the HRB to recommend the City Council designate the Little League ballpark as a historic structure/site pursuant to Palo Alto Municipal Code (PAMC) Section 16.49.040(b). PAMC Section 16.49.040(b) provides that any individual or group may propose designation of a property as a historic structure/site or district to be included in the City’s Historic Inventory. Such proposals shall be reviewed by the HRB for recommendation to the City Council, which makes the final decision. On October 15, 2014, the HRB conducted a public hearing and recommended disapproval (on a 5-1-0-1 vote) of the proposed designation, finding that the subject property does not meet one or more of the criteria in PAMC Section 16.49.040(b), as reflected in the attached verbatim HRB meeting minutes (Attachment A). In their deliberations, the HRB received and reviewed materials from Mr. Yotopoulos, as well as two reports prepared by the City’s historic architecture consultant, Metropolitan Group (dated September 5 and October 14, 2014), and two reports prepared by EBI Consulting (dated July 14 and October 8, 2014), the historic architecture consultant retained by the Palo Alto Little League, the property owner. The link to the HRB report and attachments, including Mr. Yotopoulos’ proposal, the October 8, 2014 EBI Consulting Report and ARB verbatim meeting minutes, is as follows: City of Palo Alto Page 2 https://www.cityofpaloalto.org/civicax/filebank/documents/44234. The second Metropolitan Group report, a peer review of the July 14, 2014 EBI Consulting report and review of the property’s eligibility for the City’s local historic inventory, was provided to the HRB via email and at places on October 15, 2014, and is provided as Attachment B to this report. Background On February 27, 2014, Verizon Wireless, a telecommunications carrier, on behalf of the property owner, Palo Alto Little League, submitted an application seeking Architectural Review and a Conditional Use Permit for a wireless telecommunications facility (WTF) project, which would replace an existing light pole with a new “stealth” antennae cell tower designed to resemble the existing light poles, and install a new at-grade enclosure with associated ground mounted equipment at the subject property. At the meeting of September 18, 2014, the Architectural Review Board (ARB) considered Verizon’s application and continued it to the October 16, 2014 meeting. On September 29, 2014, Jason Yotopoulos, a neighbor who is opposed to the Verizon project, submitted a request to the HRB to recommend the City Council designate the subject property as a historic structure/site pursuant to PAMC Section 16.49.040(b). At its meeting of October 15, 2014, the HRB reviewed Mr. Yotopoulos’ designation request and additional materials and information pertinent to the request, and recommended that the City Council disapprove the request for designation, as discussed further below. The ARB subsequently (October 16, 2014) recommended that the Director of Planning and Community Environment approve Verizon’s Architectural Review application. On October 23, 2014, the Director approved the application and an associated Conditional Use Permit. The 14- day period within which a member of the general public may appeal the Director’s decision on the Architectural Review to the City Council, and/or request that the Planning Commission hold a public hearing to review the Director’s decision on the Conditional Use Permit, began on October 23 and ends on November 7, 2014. If a request for hearing and appeal are received, the Use Permit would be scheduled for hearing by the Planning and Transportation Commission on December 10, 2014, and the Use Permit and Architectural Review appeal will be placed on the City Council’s consent agenda thereafter. Three Council members may ask that the item be removed from the consent agenda and scheduled for a public hearing. Pursuant to PAMC Section 16.49.040(b), any individual or group may propose designation of a property as a historic structure/site or district to be included in the City’s Historic Inventory. Such proposals shall be reviewed by the HRB, which will make its recommendation to the City Council, which makes the final decision. In order to qualify for inclusion in the City’s Historic Inventory, a property must meet one or more of the following criteria for designation: 1) The structure or site is identified with the lives of historic people or with important events in the city, state or nation; City of Palo Alto Page 3 2) The structure or site is particularly representative of an architectural style or way of life important to the city, state or nation; 3) The structure or site is an example of a type of building which was once common, but is now rare; 4) The structure or site is connected with a business or use which was once common, but is now rare; 5) The architect or building was important; 6) The structure or site contains elements demonstrating outstanding attention to architectural design, detail, materials or craftsmanship. Based on staff’s research, this appears to be the first local inventory designation request that has been made by a third party, over the property owner’s objection. Discussion The subject property is a Little League ball field originally constructed in 1952. It encompasses approximately 2.74 acres of land in an irregular polygon plan. It consists of a playing field, bleachers, and a concession stand/administrative building. Additional site features include light poles, retaining walls, fences, and landscaping. The property is located in the R-1 Single-Family Residential District. Historic Structure/Site Evaluation The subject property is not currently listed in the City’s Historic Inventory, although it was previously identified as a “Study Priority 2” property in the “Study Priority 1 and Study Priority 2 Properties: Preliminary Assessments of Eligibility for the National Register or California Register” report completed by Dames & Moore, Inc. on January 22, 1999. Specifically, the property was identified as potentially eligible for listing in the California Register under Criterion 3, which applies to a property that “embodies the distinctive characteristics of a type, period, region or method of construction important to the prehistory or history of the local area, California or the nation.” At the time, the property was not identified as potentially eligible for listing in the National Register under any criterion and was not evaluated according to the criteria for designation of historic structures/sites in PAMC Section 16.49.040(b). According to the 1999 report, the identification of the subject property as a “Study Priority 2” property appears to have been made based on visual observation only, also referred to as a non-intensive “windshield” survey, and no archival research appears to have been conducted at that time. The 1999 report was not adopted by the City Council and therefore its recommended findings of preliminary assessments of eligibility for the National Register and the California Register are non-binding and are informational only. City of Palo Alto Page 4 In July 2014, EBI Consulting, working as a consultant to Verizon, completed an evaluation of the subject property according to the National Register and California Register criteria and recorded the evaluation on a California Department of Parks and Recreation (DPR) Building, Structure, and Object Record (DPR 523B inventory form). The EBI evaluation concluded that the subject property does not appear to be eligible for listing in the National Register under any criterion, which is consistent with the previously completed 1999 preliminary assessment report. It also concluded that the subject property does not appear to be eligible for listing in the California Register under any criterion, including Criterion 3. Specifically, in relation to Criterion 3, the evaluation concluded that the subject property “does not convey any distinct architectural style and is utilitarian in design,” and that although the architect Morgan Stedman “was a fairly prominent architect in the Palo Alto area, he does not appear to be considered a master.” In October 2014, at the request of City staff and in response to Mr. Yotopoulos’ designation request, EBI Consulting completed another evaluation of the subject property according to the Criteria for Designation of historic structures/sites in PAMC Section 16.49.040(b) (i.e. the City’s local criteria), which are similar to but distinct from the National Register and California Register criteria. The evaluation concluded that the subject property does not appear to be eligible for designation as a historic structure/site in the City’s Historic Inventory under any criterion listed in PAMC Section 16.49.040(b). Specifically, it was determined that the subject property is not known to have “clear, long-term, important ties” to historic people or important events; that it “does not exemplify the work of [architect] Morgan Stedman”; and that it is a typical, not outstanding, example of its property type, which is not rare. The evaluation also concluded that, while “the ball field appears to potentially possess significance… under Criterion (2) as representative of a way of life in Palo Alto in the 1950s/60s… the ability of the property to convey its historical association is impaired by a loss of integrity of design, setting, materials, workmanship and feeling” as a result of physical changes that have occurred since its original construction including: removal and replacement of the original scoreboard, bleachers, flagpole, and pitcher’s mound; modifications to the concessions stand/administrative building; and installation of new batting cages and light poles. Historic Resources Board Review At the meeting of October 15, 2014, the HRB conducted a public hearing to review the designation request and the supporting information submitted by Mr. Yotopoulos, and additional materials and information pertinent to the request, including the evaluations completed by EBI Consulting in 2014 and by the City’s historic architecture consultant, Metropolitan Group. After review and consideration of the available information, the HRB recommended (5-1-0-1, Board member Bunnenberg opposed, Board member Di Cicco absent) that the City Council disapprove the request for designation, finding that the subject property does not meet one or more of the Criteria for Designation of historic structures/sites in PAMC Section 16.49.040(b). Excerpt verbatim minutes of the HRB meeting are provided as Attachment A. City of Palo Alto Page 5 Property Owner Input Attachment B to the HRB report of October 15, 2014, is the property owner’s letter objecting to historic designation of the Middlefield ball field at this time. The property owner’s letter can be found via this link: https://www.cityofpaloalto.org/civicax/filebank/documents/44234 Policy Implications The Comprehensive Plan (Goal L-7) supports the preservation of historical buildings, sites, and districts and the City’s Municipal Code contains criteria for designation. The HRB and the staff do not believe any of the designation criteria have been met by the Little League ballpark and are recommending denial of the request for designation. Environmental Review The proposed recommendation is not a project under the California Environmental Quality Act (CEQA), per Section 21065. Attachments:  Attachment A: HRB verbatim minutes dated October 15, 2014 (DOC)  Attachment B: Middlefield Ball Park Peer Review 10 14 14 (PDF) City of Palo Alto Page 1 1 2 New Business: 3 4 1. 3672 Middlefield Road: Proposal by Jason Yotopoulos to nominate the Palo Alto Little 5 League site for listing on the Palo Alto Historic Inventory. Zone District: R-1. This site 6 was identified in the 1998 Study Priority 2 Preliminary Assessment of sites as Potentially 7 Eligible for the California Register of Historic Resources (CRHR) under Criterion 3. 8 9 Chair Kohler: That brings us to item Number 2, proposal by Jason Yotopoulos, I’m sorry, to 10 nominate the Palo Alto Little League site for listing on the Palo Alto Historic Inventory. Zone 11 District: R-1. This site was identified in the 1998 Study Priority 2 Preliminary Assessment of 12 sites as Potentially Eligible for the California Register of Historic Resources (CRHR) under 13 Criterion 3. Staff? Disclosures, I guess we have disclosures. Go ahead. 14 15 Board Member Bunnenberg: I would like to disclose that in my work with the archives of Palo 16 Alto Historical Association I received calls and inquiries from the applicant asking questions 17 about how to approach historic recognition for the ballpark and I talked with him also about 18 cultural landscape. I began asking questions of the staff about what form to use to apply for 19 local Palo Alto designation and this took some time to sort out. Whether it was the ordinance 20 provisions or the State DPR forms and I directed him to talk with staff about getting on the 21 agenda. I did ask some procedural questions of staff on how this, how staff and the Board 22 would respond to this. I visited the site of the Coming Together event that was just held in 23 combination with Mitchell Park Library and got to sit in the outfield. So those are my 24 disclosures. 25 26 Chair Kohler: Ok, Martin? 27 28 Board Member Bernstein: I’ll also disclose I visited the site a couple of times and walked 29 through it and talked to some of the assistant coaches who were there about what I was 30 looking at and thank you so much. 31 32 Chair Kohler: David? 33 34 Board Member Bower: I’d like to disclose I played baseball there. I was in the appropriate 35 Little League age and I have both fond and not so fond memories of being there. The fond ones 36 were playing baseball; the not fond ones were tryouts, which were not particularly enjoyable. 37 But I’ve been there many times and drive by it all the time. 38 39 Chair Kohler: Margaret, do you have any? 40 HISTORIC RESOURCES BOARD Excerpt Minutes October 15, 2014 Attachment A City of Palo Alto Page 2 1 Board Member Wimmer: I’ll disclose that I have not actually attended any sporting events 2 there; however, I know where it is and I’ve driven by many times and it catches my eye every 3 time I go by. 4 5 Vice-Chair Makinen: No disclosures. 6 7 Chair Kohler: Well I guess I have to disclose that I played baseball there as a kid and my son 8 Matthew played two summers there. So it’s quite a landmark in the area and I drive by almost 9 every day. So ok that [pause in audio] get the speaker. The order is staff, board member, ok. 10 11 Amy French, Chief Planning Official: Ok. Amy French, Chief Planning Official. Before you today 12 is the proposal by a local resident, Mr. Yotopoulos, who resides across from Middlefield ball 13 field, to nominate the ball field to the City’s local Historic Inventory as a Category 1, Exceptional 14 building. The Dames and Moore study, as noted in the agenda, had identified the ball field as 15 potentially eligible for the State’s Historic Register under Criterion 3 in 1998, when the ball field 16 was not yet 50 years old. The historic consultants who have provided reports do not believe 17 the site is eligible for state or national listing today under that, or any other, criteria. 18 19 The property owner does not support the proposal for local listing at this time, as per their 20 letter, Attachment B to your staff report. The owner supports an application filed by Verizon 21 for a wireless communications facility. This is for Director Approval via the Architectural Review 22 Board (ARB) and Conditional Use Permit (CUP) processes. A large set showing the site plan for 23 the Verizon project is posted on the wall here and allows the ARB, Historic Resources Board 24 (HRB), excuse me, to see where the equipment shed and the 65 foot tall monopole antenna/ 25 light pole are proposed to be located, which is in the same place as the existing pole. 26 27 The Council is the decision point on any local historic listing proposal; the Council would receive 28 the HRB’s recommendation. As in the report, your recommendation can be approval, 29 disapproval, or modification of the application for designation. The Council’s decision is to be 30 made within 30 days of the HRB’s recommendation. Excuse me. If the HRB offers a 31 recommendation today, the recommendation would need to appear before Council by 32 November 10th; however, per the Palo Alto Municipal Code Chapter 16.49, the HRB has 60 days 33 from the receipt of the proposal, from October 9th date of your packet, to consider the 34 proposal. December 3rd is therefore the HRB’s recommendation deadline. Because the Verizon 35 project will not affect the exterior of a building on the site, and given the way that the Palo Alto 36 Municipal Code language reads on this point, it is staff’s opinion that the HRB’s 37 recommendation on the historic listing proposal does not need to be made within 20 days of 38 receiving the proposal. 39 40 So now a little bit about the documents at places. I do hope that the copies I made last night 41 have arrived at places today. Diana I did put them on, I sent you an e-mail. I did put them on 42 the corner of the big table on the 5th floor, seven copies each. Sorry. I’m not sure what that is. 43 Got it. So let me basically rattle on about that while they make their way to the chambers. I 44 was busy last night. Over the long weekend, Mr. Yotopoulos e-mailed the HRB members a link 45 to a large document he refers to as the appendix package to his proposal. Not sure if you all 46 City of Palo Alto Page 3 were able to open the link. Staff made copies of that document and they are on their way to 1 the chambers now. In the document Mr. Yotopoulos suggests the ball field be nominated as a 2 Palo Alto Historic Resource Category 1 Exceptional building, which is on Page 14 of the 3 document that’s coming down, and names the cell tower as a threat to the historic site, giving 4 the following reason: that it would negatively affect the visual landscape of the historic site. 5 6 Also coming to your places is our consultants’ peer review, which was prepared and delivered 7 yesterday evening as well, that staff has forwarded to the HRB members by e-mail I believe last 8 night. Lilly Bianco is the author. She’s from M-Group our consultants. She only had sufficient 9 time to consider the original July 2014 Historic Resources evaluation prepared by EBI 10 Consulting. She did not incorporate supplementary information that EBI provided on October 11 8th last week. Our consultant noted via e-mail last night that the supplemental October 8th 12 report by EBI did a better job of characterizing the site as it initially existed and expanded the 13 discussion of the alterations over time. Those were the two key things that were in the October 14 14th peer review that you haven’t seen yet, that were missing in the original EBI Consulting 15 report. So basically, our consultant has confirmed that those two concerns have been 16 addressed with the reviewed EBI report. Thank you, Diana. 17 18 The peer review being distributed now noted concurrence with EBI Consulting’s conclusion that 19 the site does not meet eligibility criteria for national or state registers. She also concluded the 20 site does not retain sufficient integrity at this point to be considered a local Historic Resource 21 under Palo Alto’s designation Criteria 2 given cumulative loss of integrity. Our consultant did 22 reference the letter provided by the President of the Little League Foundation, which is in your 23 packet as well as the report delivered in the packet, which included an outline of changes to the 24 park which were relevant for the integrity review. 25 26 So both the EBI Consulting reports, Attachment C of your report and Attachment D, were 27 provided and to you the Board. Consultant had previously evaluated the Verizon proposal 28 under the Secretary of Interiors Standards for Rehabilitation in the event the site were to 29 eventually be deemed historic, since the site had been listed as potentially eligible back in 1998 30 and that review was also provided to the HRB as Attachment E of your report. 31 32 Yesterday at close of business, staff received a spiral bound 69 page document prepared by 33 Kreines & Kreines for Clear Light Ventures. Apparently the document was delivered by this 34 messenger to the ARB members in advance of tomorrow’s meeting. It was not intended for the 35 HRB, but I did see somebody hold up a spiral bound document. I wonder if… yes. I believe that 36 might be the Kreines & Kreines report that I mentioned. On first glance last night, it appears 37 the focus of the document is the requested CUP, but I’m not a speed reader so I don’t know 38 everything. The CUP decision and action on the ARB application rests with the Director of 39 Planning and Community Environment, following the ARB’s recommendation, and ultimately 40 with the City Council. The Director’s decision on the CUP, which may occur as early as Tuesday, 41 October 21st, is expected to be challenged within the deadline of November 4th. We have a 42 very engaged public and Mr. Yotopoulos has been objecting to the Verizon Wireless facility for 43 some time. The ARB had reviewed this project, the Verizon project, on September 18th and 44 continued their review till tomorrow’s meeting. We hope a representative of the HRB is able to 45 City of Palo Alto Page 4 attend tomorrow’s meeting beginning at 8:30, it’s the first item, to summarize the HRB’s 1 conversation today. 2 3 The ARB did not refer the application to the HRB; rather, the ARB continued the hearing in 4 order to allow the applicant to modify the proposed equipment structure to be more 5 compatible with the clubhouse structure, and to show a few options regarding the color of the 6 light pole that’s replacing the existing pole. The project planner Russ Reich is here to answer 7 any questions you may have about the process and the revised project. The ARB was aware of 8 a draft September proposal for historic listing, and the members were curious as to the HRB’s 9 recommendation on that. That proposal was later withdrawn, immediately replaced by the 10 current proposal. The ARB minutes were also attached to your report for your reading 11 enjoyment. That’s all I have, and I would invite the applicant of the proposal, as well as the 12 owner of the property, the Palo Alto Little League and their representatives to speak. I would 13 suggest that allowances for speaking at the end of comments by the owner of the property be 14 allowed, given that it’s private property. Thank you. 15 16 Chair Kohler: David. 17 18 Board Member Bower: Amy could you describe for us the significance of an owner who objects 19 to a historic designation of their property? 20 21 Ms. French: I can describe initially the state and national standard practice, which is that the 22 state and the federal historic agencies do not list historic properties on their registers over the 23 owner’s objections. The City’s Code Chapter 16.49, the Historic Preservation Ordinance, does 24 not state that the City Council will not list on the Historic Inventory over the… I hope I’m not 25 saying double negatives. It is not in any of our publications that I found that the Council can’t 26 list a property if the owner objects. I think there are other reasons to not list this property on 27 the local inventory, but the code doesn’t support this. 28 29 Board Member Bower: Ok so if I understand what you said, national/state historic registries will 30 not list a property if the owner objects. There’s nothing in the Palo Alto Historic Preservation 31 Code documents that would prevent the City from listing a property over the objection of a 32 property owner. So let’s assume and I’m, just so I understand this, that this Board and the City 33 Council did in fact list this project, this property. How would that affect the property owner in 34 the future? I mean their… this is not…I mean I suspect this won’t be, can’t be considered 35 Category 1, maybe Category 4. Again, that’s…this is the hypothetical question: if it had some 36 designation like that, I don’t remember there’s any impact on the property at that level. Is that 37 correct? 38 39 Ms. French: So yes there would be an impact. The Category 3 and 4 is generally Contributing is 40 called Contributing structure. Typically it’s contributing to a district such as Professorville. In 41 this case there is no historic district to contribute to at this point. If there is a ministerial 42 application, a building permit, there is certainly less consequence to a Category 3 and 4 43 designated local Historic Resource. If a discretionary planning entitlement application, such as 44 the one that’s in front of us at the ARB, comes in then the property owner must go to the HRB 45 and must incorporate all of the recommendations of the HRB into the project. So if the HRB 46 City of Palo Alto Page 5 were to say you need to remove all those structures there or what have you to make it, to 1 restore it to its original glory from the 1950’s, I guess that would be a requirement for the 2 owner to do so. 3 4 Board Member Bernstein: Yeah, thank you Chair Kohler. I’m concerned for a property owner’s 5 rights. If I understand it the, maybe this is a question for a City Attorney, if the HRB 6 recommends to the Council or Director that a property be listed on Historical Register and the 7 owner does not want that to happen could that have a negative impact on the property 8 owner’s point of view and isn’t that a legal question that can over the objection? That the City 9 can impose a Historic category? 10 11 Ms. French: Yeah, unfortunately I was hoping our City Attorney would be represented today 12 with staff. I am not in any way well versed in takings law; however, the perceived taking by 13 designation might be an issue. 14 15 Board Member Bernstein: I’m thinking I would say if a property owner is going through some 16 potential sale of a property/refinancing it could be perceived as perhaps an encumbrance on a 17 property from a property owner’s perspective. That’s… so that’s fine. Maybe it’s a real legal 18 issue here… so. 19 20 Ms. French: Maybe if there is more discussion on the legal aspect of it, I’m hoping that Cara 21 Silver does come here momentarily and maybe the other aspects can be looked at. 22 23 Board Member Bernstein: Sure, thank you. 24 25 Chair Kohler: Oh, I thought if you were asking that. Margaret? Anybody? Go ahead. 26 27 Vice-Chair Makinen: Is the property owner here today? 28 29 Ms. French: Yes. 30 31 Chair Kohler: Ok, we’re just talking to staff at the moment, ok? Martin, go ahead. 32 33 Board Member Bernstein: One more question. In the event that if the HRB does vote to 34 recommend that a historical category be put on this property, I’m sorry, I’m going to change my 35 question. If the HRB elects to not include this property on any historic property does that just 36 end it or does it still have to go to the City Council to accept our recommendation of not putting 37 it on? 38 39 Ms. French: Yes, the answer is contained in the City’s Code Chapter 16.49, the HRB’s 40 recommendation, be it recommend designation or not recommend designation, would go to 41 the City Council to basically ratify that recommendation. 42 43 Board Member Bernstein: Thank you. 44 45 City of Palo Alto Page 6 Board Member Bunnenberg: Roger and I heard you mention the possibility of modifications of 1 the application. Would that also I mean obviously the ARB would hear that. Is that something 2 the City Council would hear at that point or? 3 4 Ms. French: Ok, so I’m going to answer the question about the application. The application is at 5 this moment the proposal for historic designation. So yes the HRB could for instance modify 6 say the suggested category from Category 1, as suggested by the proposer, to a Category 4, 7 let’s say, and that is a modification of the proposal for nomination. That could happen. And 8 then whoever is speaking to the ARB about what transpired today can convey that to the ARB 9 for their information. 10 11 Board Member Bunnenberg: And if that was for sort of restructuring of the proposal that might 12 be more substantive? 13 14 Ms. French: And let me just ask a clarifying question. When you say restructuring the proposal, 15 do you mean the historic designation proposal or are you referring to the Verizon application 16 project? 17 18 Board Member Bunnenberg: No, I’m referring to the historic proposal; for instance would be to 19 designate the field house, the snack bar/office building rather than the entire setting. 20 21 Ms. French: That could be a recommendation, a Motion if you will, to single out one building as 22 eligible for local listing. 23 24 Board Member Bunnenberg: Thank you. 25 26 Chair Kohler: Ok, Margaret. 27 28 Board Member Wimmer: If a historic designation is not allowed without the owner’s consent I 29 believe you did say that? Because… is that statement on this (interrupted)? 30 31 Ms. French: What I said is the local and (interrupted) 32 33 Board Member Wimmer: On the local and the state level. 34 35 Ms. French: No, I’m sorry, on the national and state level there, the websites that I researched 36 for those organizations, state that properties will not be listed on those registers over the 37 property owner’s objections. 38 39 Board Member Wimmer: So I’m just looking at the bottom line. I mean if that’s what the 40 ordinance says than why are we, I mean why are we being asked? 41 42 Ms. French: That’s what the state and federal regulations, or websites, state. It’s perhaps a 43 practice. Our local ordinance does not state that and we have not, because I don’t think we’ve 44 had too many of these situations. I mean typically, we get a property owner who wants to be 45 designated to take advantage of the benefits of being a Category 1 or 2 for instance or they 46 City of Palo Alto Page 7 elevate from a Category 3 or 4 to a Category 1 or 2. This is certainly the first I’m aware of a 1 property that’s come forward against the owner’s objection or against the owner’s wishes. 2 3 Board Member Wimmer: So it makes it that’s a difficult challenge for this Board given the fact 4 that there is a precedent for one I think and then also if, it doesn’t seem likely, but if there was 5 some historic designation attached to this property would that automatically block a cell phone 6 tower? 7 8 Ms. French: No, in fact this is the reason why we commissioned an objective, outside 9 consultant’s analysis of the proposed wireless telecommunications facility with respect to 10 Secretary of Interior Standards to ensure that the cell tower, which is replacing a light pole, 11 going five feet taller and a little wider, six inches thicker, and the equipment structure that 12 neither of those items would impact the historic resource if it were designated. We had them 13 analyzed per the Secretary of Interior Standards so that we could continue on our review under 14 California Environmental Quality Act (CEQA). 15 16 Board Member Wimmer: And not that it’s this is probably not an appropriate question, but who 17 pays for all of these expensive reports? I mean this seems… it seems sort of out of bounds. I 18 mean I’m not as familiar, I know that there have been some banners and things in the paper 19 that have been trying to address the cell phone issue, the cell phone tower issue. I’m this is the 20 most information that I’ve received about it, but I don’t it just seems, it just seems like a lot of 21 pomp and circumstance and why don’t we just look at the bottom line? I don’t know. 22 23 Ms. French: So I’m going to answer the question about who pays, and the endeavor of the City 24 to educate the public about radio frequency emissions, for instance. We did spend quite a bit 25 of time and money over the years since we have had other cell tower applications. And most 26 recently the distributed antenna system (DAS) projects that came through, we did have 27 educational sessions in front of Council, in front of the public, and we had on our website 28 frequently asked questions (FAQ). We did hire consultants to come and speak in these 29 meetings, on the City’s dime, and recently we did on the City’s dime pay the consultant to 30 prepare the Secretary of Interior Standards review, to ensure that we were able to call the 31 application exempt from CEQA, that there wasn’t an impact to the potentially historic resource. 32 33 Most recently, the M-Group report that’s at places today was paid for; we asked Verizon to pay 34 the cost of this peer review of the EBI Consulting report that we received in July. 35 36 Chair Kohler: Martin. 37 38 Board Member Bernstein: Thank you Chair Kohler again. I’ve got a process question. If the HRB 39 votes on a Motion to recommend designation or recommend no designation it still has to go to 40 City Council. So if the HR, if the ARB is meeting tomorrow can they actually discuss this prior to 41 a City Council determination from the HRB’s actions today? 42 43 Ms. French: They absolutely can. The ARB has the ability to provide a recommendation 44 regarding the project based on the ARB findings for approval, and that is their charge. The CUP 45 application, and the ARB’s recommendation on the ARB component of the application, go to 46 City of Palo Alto Page 8 the Director to make a decision. The Director is deciding on the CEQA determination, which is 1 where there is typically an effort to derail a project is in the CEQA area, and so this is a decision 2 point that then rises up to the level of Planning Commission and Council because we expect 3 that that will happen. 4 5 Board Member Bernstein: Ok, so the HRB process won’t slow down the process for Verizon 6 moving ahead because the City Council still has to debate whatever HRB decides today and 7 that’s by December whatever date was recommended. The ARB can approve a project before 8 City Council agrees with HRB. 9 10 Ms. French: If you were to delay your decision and not make a decision today as I said, you do 11 have more time in which to debate/consider this. If you act today we will, we’re under the 12 ordinance, we’re obligated to bring it forward to Council. 13 14 Board Member Bernstein: Thank you. 15 16 Chair Kohler: Ok, I have some questions, confusion time. Ok, so we’ve now talked first initially 17 about the Little League becoming an historic site or the buildings or whatever and now we’re 18 talking about the cell tower. So I guess I have to disclose that my office is about 50 feet from a 19 cell tower. Has been there since 19… oh, about the year we moved in, 1994. And they have 20 been spending the last four or five weeks repairing it so we have no parking in some areas. So I 21 know about cell towers personally because I basically live there every day within 50 feet of 22 these things. So I just disclosed that because it is my option. 23 24 So I’m now really confused. So we’re not really talking today about the cell tower. Our goal is 25 the historic issue of the site itself and the buildings there. Is that correct? 26 27 Ms. French: That is correct. The ARB did not refer this application to you to give a 28 recommendation to them on the project, again, as it’s not a listed resource. 29 30 Chair Kohler: Ok, so in our sense then we’re reviewing this process, the site with no real 31 concern about cell tower or no cell tower. Is that correct or is the cell tower impact the site? 32 33 Ms. French: Yeah. We have not advertised this meeting as a consideration of the wireless 34 communication facility project. This is strictly a meeting to discuss the proposal for historic 35 designation. 36 37 Chair Kohler: Well I guess the question is, as David just said, it’s we don’t have jurisdiction over 38 the cell tower, but I suppose you could say the cell tower has an impact on the site if it’s a 39 historic site. If it were, ok. I know we’re not there. I’m trying to clarify. 40 41 Ms. French: This is why we had a consultant paid by the City to evaluate the wireless 42 communication facility as if the project were historic, to ensure that we are not making a grave 43 mistake in allowing replacement of the pole in its current location and an equipment enclosure. 44 And this is why the ARB is taking careful measures to make sure that the proposed equipment 45 City of Palo Alto Page 9 structure is compatible with that clubhouse. They continued the meeting to make sure that 1 that building is going to be what it needs to be to fit in. 2 3 Chair Kohler: Yes, go ahead David. 4 5 Board Member Bower: So it’s my recollection that we have as a Board reviewed cell towers 6 within Professorville a couple of times and that that has not been deemed to negatively impact 7 the district, which is similar to its own entity. So is that a correct recollection? 8 9 Ms. French: Yeah, I don’t recall coming to the Board. 10 11 Chair Kohler: Let’s move on you say. Ok. 12 13 Board Member Bunnenberg: So in effect (interrupted) 14 15 Chair Kohler: Let’s not. 16 17 Board Member Bunnenberg: We have not two decisions, but one decision which is about the 18 historic status of the ballpark. But in reading the ARB minutes it appeared to me that they were 19 wondering about the visual effects of the cell tower and certainly visual aspects are part of 20 historic considerations. But it seems like I’m hearing you saying that we are not, will we get a 21 chance to see what the cell tower looks like today? 22 23 Ms. French: We didn’t bring the plans. Again because the focus is not on the project, but there 24 is a site plan, there are images on the wall that show the proposed tower, and a site plan. Also 25 there was a link provided in your staff report that you can see all, the whole plan set, the 26 revised plan set. The revised plan set indicated because the ARB asked for different color 27 choices for the tower, the light pole: brown, green, grey. So those are being looked at. 28 29 Board Member Bunnenberg: May we at least see those photos and pass them down the line? 30 31 Ms. French: Of course. Yes. They are on the wall for… 32 33 Board Member Bunnenberg: But we should see what the public sees. 34 35 Chair Kohler: This is where we get the orchestra and make some music and we’re time out for 36 discussion. Thank you, Martin. You’re going to provide that? Ok. Martin’s providing opera 37 while we’re looking at that. Ok. [Pause while the Board looks at the photos]. 38 39 Ok, can we move forward? Let’s see, where’s my sheet? So we’re going to open the meeting 40 to public comment. I have a list of cards here. If anyone else wants to add to that just fill one 41 out. We’ll start out with Mitchell Field. Oh, wait. Mitchell Field is not the name; I thought it 42 was his name. Do we hear from the applicant first? I guess we do, don’t we? Yes. Ok, I’m 43 sorry. Would the applicant like to come forward and yes, thank you. 44 45 City of Palo Alto Page 10 Jason Yotopoulos, Applicant: Thank you. And so I’ve got some slides. Good morning. And 1 hopefully can you hear me ok? Ok. I’ll just get this set up. Hopefully everybody received the 2 60, 70 some odd page summary (interrupted) 3 4 Board Member Wimmer: Will you tell us who you are and introduce yourself? 5 6 Mr. Yotopoulos: Yes, thank you. Is that, is that better? Wonderful. Let me just… let me get this 7 set up first for a moment, thank you. 8 9 Ms. French: So I would just note that Cara Silver has arrived, if there is a question about the 10 legal aspect of nominating a property over the property owner’s objection. 11 12 Board Member Bernstein: Hi, Ms. Silver is that it? Great. Oh, we have a public person. 13 14 Chair Kohler: We have a bit of a conflict here right now. The City Attorney is here and she’s 15 going to make a statement. 16 17 Board Member Bernstein: Roger, yeah what? Who’s first? 18 19 Chair Kohler: I’m trying to figure out there’s so much… we’ll have the City Attorney I think. It 20 might help us. 21 22 Cara Silver, Senior Assistant City Attorney: Hello, yes, Cara Silver, Senior Assistant City Attorney. 23 Why don’t we hear from the member of the public and then if there are particular questions, 24 legal questions I can field them after the public speaker. 25 26 Chair Kohler: That sounds fine to me. Ok, you may continue. 27 28 Mr. Yotopoulos: Great, thank you very much. Can everybody hear me ok? 29 30 Chair Kohler: Yes. 31 32 Mr. Yotopoulos: Wonderful. I am Jason Yotopoulos and before I start I just wanted to make 33 sure that everybody received a physical copy over the weekend? 34 35 Chair Kohler: Yes. 36 37 Mr. Yotopoulos: Or was able to print? 38 39 Board Member Bernstein: I did not receive a copy. Is that this? That was just put at our places 40 now? 41 42 Mr. Yotopoulos: Yes, it is indeed the same. 43 44 Board Member Bernstein: It is 60 pages. I have not read it. It just got to me so perhaps what 45 you’re going to discuss is in this book? 46 City of Palo Alto Page 11 1 Mr. Yotopoulos: Indeed. I’ll give you kind of the summary. Is anybody else without this? Ok. 2 3 Chair Kohler: I have an extra copy. 4 5 Mr. Yotopoulos: Great. So thank you for taking the time this morning. We’re here to discuss 6 the nomination of the Little League ball park at 3672 Middlefield Road for the Palo Alto Historic 7 Inventory. Obviously there have been a lot of questions. Let me first introduce myself as 8 Margaret suggested. I am a long time local, was born here in the Bay Area, a son of a Stanford 9 professor, went to Stanford undergraduate engineering and then business school. I’m a father 10 of two: son 11, daughter 8. Married my college sweetheart and we all together have lived in 11 our home in Palo Alto, one of a few homes in Palo Alto since the mid-Nineties and obviously 12 given the Stanford affiliation much longer than that. I am a technology executive, 10 years as a 13 venture capitalist, and also most recently heading Global Research and Development at SAP 14 Corporation up in the Palo Alto foothills by old Xerox Park and managing 3,000 people across 32 15 countries up until recently. 16 17 So there’s been a lot of question is this all about the cell tower and you had asked what does 18 the cell tower look like. It’s up there on the screen. I will tell you that I am not a fan of the cell 19 tower. I think it’s unsightly in this location and not the best place for a cell tower at ground 20 zero for our children in the neighborhood, but I am a fan of Little League baseball. When this 21 issue of a cell tower came up five years ago I and a number of other coaches and sponsors of 22 teams attended a ballpark board meeting and asked if in fact we could help alleviate any 23 financial pressure that was causing this. It’s not about the financial pressure. So that is all I’m 24 going to say about the cell tower because I want this to be focused on the historic merits of this 25 property, which I think are significant. 26 27 And I am here today although this is a very time consuming effort because I believe it’s 28 important for our City to follow due process even under duress and the threat of a lawsuit by 29 Verizon and in the absence of a Palo Alto Historic Officer with Dennis Backlund having left and 30 his boss as well. To me this means that the City’s cultural heritage should not be determined by 31 “Verizon’s historian” in the context of a cell tower application, but rather by our local experts, 32 which is you the HRB. So I, our local historian, and all remaining founders’ relatives believe that 33 this site is truly historic and it and its founders deserve to be recognized. This is a highly 34 politicized issue and the timing is probably not the best as Steve has mentioned to me, but 35 nevertheless here we are for a couple of reasons I’ve been told by prior City Council members 36 that if there is a statement about the historic nature of the property by anyone in the file then 37 unless one raises opposing arguments history tends to rewrite itself and that is not something 38 that I’m comfortable with and I think probably you would not be either. I will focus on the 39 merits of the site, not the backdrop of a controversial cell tower application or the politics 40 around it. Ok? 41 42 So this nomination is for local Historic Inventory. It is not about California Register and it’s not 43 about National Register as were evaluated by a Verizon’s historian. It contemplates the design 44 landscape of a baseball arena, which has a two-story clubhouse. Ok, that’s what we’re talking 45 about. And so over many months I and others have conducted extensive secondary research 46 City of Palo Alto Page 12 and primary research as well as checked the facts to make sure that I’m not wasting your time 1 today. And I take this very seriously, there aren’t many opportunities to nominate a property 2 and I know that there are at least a couple 90 some odd year old founder family members that 3 are watching this on television (TV) today. So this is, I consider this to be a pretty significant 4 responsibility, which I take pretty seriously. 5 6 The secondary research has been online, the City’s historic archives, the Secretary of State, the 7 County Recorder’s Office, County Title, City of Palo Alto Planning and Building Departments, 8 Sanborn Maps although there were few admittedly on this property, old newspaper articles. 9 Uniquely and unlike any of the other historical documents that you’ve seen I’ve also conducted 10 primary research as much as was possible with all identifiable founder family members, all 11 house Gamage, Little League National Historian Lance Van Auken, Herschel Cobb who is here 12 today to talk about Ty’s involvement, prior coaches and players, discussed with Steve Staiger of 13 the Palo Alto Historic Association, Michelle Messanger of the State Historic Preservation Office 14 (SHPO), and Jeff Brooke of the California Office of Historic Preservation to understand what 15 indeed are the implications because nobody’s interested in negatively impacting the ability of 16 the ballpark to do what it does for the children. Ok? And they confirmed. 17 18 And given that I am not a historian I had the materials evaluated and reviewed by our local 19 historian and by Charles Chase at the Architectural Resources Group. Architectural Resources 20 Group is the City’s historical consultant and they were recommended to me at Dennis 21 Backlund’s suggestion. So specifically the overview of the property this design landscape was 22 built in 1952 as a rare sunken diamond ballpark stadium with period of significance ’52 to ’64, in 23 other words the fifty year cutoff. It was designed to be an exact replica of the Stanford Sunken 24 Diamond whose founders are honored for this accomplishment by the State of California in a 25 plaque that sits on the building issued in 2004. In addition, there is a two-story clubhouse with 26 boardroom/announcers booth on the top floor, concession stand and restrooms on the bottom 27 built in 1956. It was designed by local and famed architect Morgan Stedman. It was noted in 28 the Dames and Moore study as potentially California Register eligible for its architecture in 29 1998. The property and its 60 year history have never been formally evaluated for historic 30 significance until today I think to the chagrin of many of the founders. 31 32 This is the site of Little League Baseball of Palo Alto, a California corporation which was 33 incorporated January 16, 1952, and whose first games were played in spring of 1951 in Palo 34 Alto. Lance Van Auken the Little League historian who also runs the League’s museum stated 35 three weeks ago when we spoke that the Palo Alto Little League appears to be the first league 36 in California in 1951 and this was after he and I had a rich discussion about San Bernardino 37 Jaycees and their participation 1951 World Series. The Palo Alto Weekly if you look at 38 documents says in their article in May ’02 says the League was actually chartered in 1950. On 39 the basis of my discussion with Lance I think that’s aggressive because the first teams didn’t 40 come over until ’50 or ’51 west of Texas. 41 42 The site’s development one year later appears to represent the following firsts: the first 43 dedicated Little League ballpark site in California. San Bernardino’s came much later. Number 44 2, the first privately owned Little League ballpark site in California and Lance tells me perhaps 45 beyond. Number 3, it appears to be the first sunken diamond design Little League field in 46 City of Palo Alto Page 13 California and perhaps beyond. There were comments, which I am prepared to discuss and 1 answer any questions frankly about the other reports. Howard J. Lamade came in 1959 and 2 according to Lance it’s not a sunken stadium design. I can give you quotes from that on later 3 slides. Jean Caporizzo Field, which is stated in one of the other documents, actually does not 4 exist according to the Stamford, Connecticut historian. 5 6 So what is the significance of all of this which is what we’re here to think about? The opening 7 dedication of the field in June 29, 1952, holds cultural significance to Palo Alto and California in 8 that it marks the movement of youth baseball west. Per Lance within Little League, which 9 happens to be the largest global organized youth program, our Palo Alto site is rare. Only five 10 percent of all Little League sites nationally remain private. So they’ve long since been coopted 11 to development and moved to public facilities. Frankly, this site is R-1 zoned and the same 12 could happen to this site at some point. This demonstrates tremendous foresight, creativity, 13 and resourcefulness by the site’s founders to accomplish something that frankly would have 14 been impossible just years later given the growth of Palo Alto and the corresponding growth in 15 property prices. At the time it was the cost of a home I’m told and today this would be about 16 $5 million to replicate. It’s a shining example of the philanthropy and neighborhood 17 cooperation of the time to build out Palo Alto and this led to 62 plus years of uninterrupted 18 play at this site. 19 20 This is intentionally planned in a residential area. The site set up ended up being an anchor to 21 the community development of our growing university town as it pushed southeast in the 22 Fifties. And as this neighborhood social hub much revolved around it, to follow were Wilbur, 23 another is Jane Lathrop Stanford Middle School (JLS), Mitchell Park, and Mitchell Libraries. And 24 so this represents one of the most enduring youth programs in Palo Alto’s history with Little 25 League then quickly spreading to Menlo Park, East Palo Alto, and Los Altos. 26 27 For a number of people historic significance of course associated. Ty Cobb, who the wife of 28 Walt Gamage recalls as an officer and commissioner of the Little League at the time, opened 29 the inaugural dedication ceremony and his relative Herschel is here today and Ty threw out the 30 first ball at the 50th. Mrs. Gamage recalls Walt sitting at the table with Ty deciding what to do 31 with which players, which characterizes quite a challenging discussion at times. Another of the 32 greatest sports legends ever, Pop Warner, who in 1951 was named to the Coaches Hall of Fame 33 as one of the most winning coaches was also in attendance. 34 35 Now for founders, Bill Alhouse, you recognize him as a Palo Alto Tall Tree Honoree for frankly a 36 large part this work. He was an ex-Dodger. He is National Little League Hall of Fame and 37 American Coaches Hall of Fame for his work at Stanford and elsewhere. John Hurlburt, the 38 ballpark founder, Vice-President of the National Collegiate Athletic Association (NCAA), famous 39 professor of law at Stanford University, he taught Rehnquist and O’Conner. Eichler, with whom 40 we’re all familiar, also ballpark founder and prominent real estate developer of modern style 41 tract housing that we’re all familiar with. John Arrillaga, not a founder, but much later also 42 contributed to the further build out of the property. 43 44 Numerous professional players coached kids and learned to play themselves on this field. 45 There is some question about that in the other documents or folks ask questions; you can see 46 City of Palo Alto Page 14 the actual articles and citations in Appendix 18 and 19 and of course the architect Morgan 1 Stedman as the designer of the site with accolades of House Beautiful’s Pacesetter House 2 Award and at least one local historic resource design home. 3 4 Let’s talk about integrity. So the City’s historic consultant architectural resources test is if a 5 player from that era walked onto the field today would you recognize it as the field he played 6 on? Ok. So with zero change in location or setting or association and a contiguous 62 year run 7 very unique as a Little League ballpark, Ty Cobb’s heirs in attendance at the 50th and to this day, 8 Morgan Stedman’s work remaining intact, it remains the feeling of a long lasting children’s 9 ballpark. With some changes to the site over time like light poles, safety fencing, batting cages 10 all consistent with the site’s purpose as a ball field even the design and materials across the site 11 remain at least moderate integrity. 12 13 Now let me address Planning’s recommendation on the cover of your packet. It identifies a few 14 concerns: potential loss of integrity so the historic status is unconclusive, inconclusive, which is 15 insatisfactory to me. The ARG’s acid test is vis-à-vis integrity is again, could a player from that 16 era walk on the field and recognize it? It is ok to replace or repair, but taken as a whole is the 17 site intact? Some alterations even with newer materials is acceptable over the course of 60 18 plus years. 19 20 The second point, even if determined historic, wouldn’t affect the cell tower application. I think 21 this misses the point of due process regarding independent historic evaluation and should not 22 be the focus of our conversation. And candidly having spoken with the authorities at the state 23 and national level that preside over this, the determination of significant impact on the site of a 24 cell tower is the sole discretion of a lady by the name of Michelle Messanger at SHPO who is 25 quite disturbed by these proceedings and the issuance of all these documents quite 26 prematurely. 27 28 Thirdly, the property owner objects. As we know and have heard a property in Palo Alto can be 29 recognized based on sound reasons and at the same time rejected by the applicant. This should 30 not affect and objective evaluation by the HRB today. Thirdly, no historic report was provided. 31 In several exchanges with staff regarding forms required and process, one of which Beth herself 32 alluded to, none was requested nor is one required by process. Having myself reviewed at least 33 three prior HRB applications before doing this one. And the last item, the property owner has 34 provided multiple reports in fact almost so many you wonder why. Verizon has commissioned 35 these reports from Verizon’s historian and provided the reports in the context of a cell tower 36 application at the City’s request and I think they need to be evaluated in such light. 37 38 So what is my recommendation on the basis of the work? I’ve identified the key Palo Alto 39 Historic Inventory criteria and the recommendation summary. The first Criteria 1, site is 40 associated with lives of historic people or events in the city, state, or nation. Indeed this 41 represents the first movement of Little League baseball west into California. Additionally it 42 represents the development of unique cultural amenities in a now prominent university town in 43 a very high growth phase helping to anchor its future development. It’s a shining example of 44 local philanthropy and neighborhood cooperation of locally and nationally prominent Palo 45 City of Palo Alto Page 15 Altoans in the creation of a private Little League field. Nationally recognized Ty Cobb as an 1 officer, additionally. 2 3 Criteria 2, the site was representative of an architectural style or way of life important to city, 4 state, or nation. Those who have lived through this definitively say for the children of our 5 community in that era and beyond this was the way of life. This ballpark was the social hub of 6 youth during this era. Quote unquote by one of our local experts “The only game in town quite 7 literally around which family schedules, news coverage, and meals revolved.” 8 9 Criteria 5, the architect or building was important. Morgan Stedman is Morgan Stedman 10 designed and it is a rare example within his body of work of a recreational building. Criteria 6, 11 the site contains elements demonstrating outstanding attention to architectural detail, design, 12 materials, or craftsmanship. It is indeed a unique sunken diamond little field design which as 13 you read takes a tremendous amount of detail and is definitely not the path of least effort. 14 15 The recommendation is for a Category 1 inclusion given the site’s state level importance. I’m 16 happy to discuss and answer any other questions. I have a set of slides that follow if of interest 17 (interrupted) 18 19 Chair Kohler: I think we need to kind of wrap up. Thank you. 20 21 Mr. Yotopoulos: Wonderful, great. So I’m happy to talk about any content disagreements 22 among the reports and the rationale, any of the character defining features, historic review 23 process (interrupted) 24 25 Chair Kohler: Ok, fine. Alright, I’ll bring it back to the Board. 26 27 Mr. Yotopoulos: Thank you for your time. 28 29 Chair Kohler: Ok, do you have any questions? This is appropriate for take questions of the 30 speaker, yeah. Right? Yes. 31 32 Ms. French: Yes, of course. 33 34 Chair Kohler: Thank you. Any questions for the speaker? Martin. 35 36 Board Member Bernstein: Jason, thanks for your great and thorough presentation. A lot of 37 research I could see. 38 39 Mr. Yotopoulos: Thank you. 40 41 Board Member Bernstein: You mentioned the fact checking. On your, one of the documents I 42 received, the Board received from you, it talks about current conditions and threats. Overall 43 the property has a high degree of integrity never having been moved or substantially altered 44 inside or outside with many of its original features still intact. And then we’re reading two 45 other reports from EBI and Metropolitan and it says construction history: replacement of 46 City of Palo Alto Page 16 historic scoreboard, replacement of historic flagpole with three flagpoles and a retaining wall, 1 replacement of historic bleachers with aluminum bleachers, replacement of pitcher’s mound 2 with artificial pitcher’s mound. Seems like quite, if these reports are from the other consultants 3 are correct, it seems like many original features are not intact. So it seems like two different 4 statements and it’s confusing to me what’s intact. 5 6 Mr. Yotopoulos: So indeed the statement you just read is indeed correct. Over the course of a 7 60 year period there have indeed been such replacements. When you talk to ARG they focus 8 on the character defining features of the site starting from large and moving to smaller. In 9 order to take the whole perspective and then moving to smaller I would characterize and they 10 probably as well would characterize those as on the smaller end, whereas the larger are the 11 unique orientation of the planned field, the sunken diamond playing design, the two-story 12 clubhouse, the relationship between the clubhouse and the field, the visual landscape with the 13 eucalyptus view shed, and the field level dugouts. As you see there below, bleacher, 14 scoreboard, those also amount to the whole perspective on the property, but the bottom line 15 and the acid test as they characterize it is would a player recognize this is the field they had 16 played on and in its substantial entirety does it still remain intact? 17 18 Board Member Bernstein: Ok, thank you. Then I have a question for the City Attorney when 19 that time comes up, so. 20 21 Chair Kohler: Any other comments or questions of the applicant? Ok. 22 23 Board Member Wimmer: I was just going to say something really quick. I just wanted to say 24 that I just commend you for going through the depth of all the research and all of this 25 information and I think regardless of the outcome of this particular issue I think this is, this 26 information will be categorized and be in the Palo Alto records indefinitely, which is something 27 that in a historic sense we always look for that, that information. So thank you. 28 29 Mr. Yotopoulos: Yeah, thank you. 30 31 Chair Kohler: Any other questions of the applicant? Ok, thank you. We move on to speakers. 32 33 Mr. Yotopoulos: Great, thanks for your consideration. 34 35 Chair Kohler: Ok. The first speaker card I have is Herschel Cobb. If you give your name as you 36 begin it would be good. 37 38 Herschel Cobb: Good morning, my name is Herschel Cobb, pleasure to be here. I didn’t get in 39 on the ground floor of the tangential disputes that seem to be in the background of this issue so 40 I have a kind of a like wow, a lot going on here that I don’t know about. However, I would like 41 to relate that I had the pleasure in 2002 to attend and participate in rededication ceremonies at 42 Mitchell Field along with my wife and my son, his name is Ty. He is named after his great 43 grandfather and is a real baseball fan. Just finished college, was asked to play baseball there, 44 but his heart belongs to basketball so he enjoyed four years of varsity basketball at Occidental. 45 City of Palo Alto Page 17 My wife Lynn, her maiden name is Jason, her family is I think four generations in this area, 1 Atherton. We live in Menlo Park. 2 3 So I know that my grandfather was a great supporter of youth baseball. I grew up in Santa 4 Maria, which now is a large town, but when I lived there it was 20,000. And coming into town 5 from the southern direction you could see a huge sign of Ty Cobb sliding into a base with a 6 proclamation that Santa Maria was the home of Little League baseball. Babe Ruth baseball kind 7 of prevailed and that’s been a good thing because the Babe was one of Ty’s great competitors 8 and in the end they became very, very good friends and had a lot of golf together for charity. 9 10 I kind of support the idea that a baseball diamond in itself is a site that can be historical without 11 getting into the details of how the benches are fixed or how they may have been improved or 12 this type of thing because over the years you kind of want that as new things that make for 13 creature comforts develop we want to adopt that. But the basic idea that you have a site there 14 that has been of historical significance to the members of the community is kind of 15 undoubtable and I want to just point out that your own membership has mentioned that they 16 not only played on this field, but their children have played on this field. Oh, there we go and I 17 think that from an observers point of view that kind of makes it look an important part of your 18 community that ought to retain some historical twang in all of us to say, wow, that should be 19 designated as a historical site just in itself because once these things disappear they are gone 20 forever. 21 22 You only have to open the Chronical this morning to see the arguments over the lack of who get 23 or the who gets to use soccer fields in San Francisco because there just frankly aren’t enough 24 playgrounds for youngsters. And so I support the designation particularly listening to all the 25 arguments that even if it is designated as historical by the City of Palo Alto that that does not 26 really impact what an owner can do with the property, but it does give some recognition by a 27 city that as you drive by Middlefield and see Mitchell Field every day. If it disappeared you 28 would feel a real twinge in your heart to say, wow, another major historical site gone to the 29 ways just of like all other open space in our greater community. 30 31 And I did read this criteria I guess this is put forth by the Planning Department that does 32 indicate that a site that is identified with the lives of historic people, which I think we all are, 33 we’ve all lived in this community for years and years, not only us but our children and hopefully 34 their children with important events to the City. All those ballgames are really important 35 events to everything that makes a city vibrant and that’s the people. Regardless of when I 36 attended you guys all remember Casey Jacobsen of Stanford? Pretty good point guard. He was 37 there too, he was 6’6”, my son Ty was just a little youngster, oh my God how Ty wanted to be 38 6’6”. He grew up to be 6’5”, which he’s very happy about. Anyway all of those kids who played 39 that’s historic to them. That’s what they carry around, that’s one of the reasons they come 40 back to this area of the country ultimately to raise their own children and I think that that in 41 itself carries just a lot of historical significance. 42 43 Some of you who have been around the Palo Alto community for years may know of Shirley 44 Cobb Bookstore, used to be right next to the Varsity Theatre. That was my Aunt. Every 45 Christmas I received an age appropriate book instead of a gift from Aunt Shirley and many of 46 City of Palo Alto Page 18 them were on sports and outdoor activities. I remember one in particular called Barron of the 1 Bull Pen. When I was playing Little League baseball and that was my Christmas present and it 2 meant a lot. She had a whole section in her store for youth, youth books and many, many, 3 many of them were baseball books because of course she knew who her father was and even 4 though I didn’t recognize his prowess until I was a little bit later I certainly got a fill of youth 5 sports books in her bookstore. So the connections to the historic community that is Palo Alto is 6 significant. We’re inundated by the changeover in many cities with chains coming in replacing 7 local shops, local shops are really necessary. Shirley Cobb’s Bookstore is not there anymore 8 because (interrupted) 9 10 Chair Kohler: Could you kind of wrap up please? 11 12 Mr. Cobb: Yes sir. 13 14 Chair Kohler: Thank you. 15 16 Mr. Cobb: And I would really feel a loss in my heart if another ballpark disappeared or didn’t 17 have some protection as a historical site. Thank you very much for your attention. 18 19 Chair Kohler: Thank you. 20 21 Mr. Cobb: Thanks. 22 23 Chair Kohler: I have a card from Ken Allen and you have three minutes. 24 25 Ken Allen: Good morning, my name is Ken Allen. I live on Grove Avenue in a home that was 26 built in 1947, probably the first home in the neighborhood of the Little League ballpark. I’m 27 also President of the Adobe Meadow Neighborhood Association, a member of the Cubberley 28 Community Advisory Commission, which considered the fate of Cubberley, and a member of 29 the Palo Alto Neighborhoods (PAN), the PAN group. 30 31 I’m speaking for myself at this time, but I have polled our community and have, can express 32 some of the opinions of the neighbors other than those who are opposing the cell tower. And I 33 do want to point out to you that this is very clearly an attempt to impede the development of 34 cell sites in our region. However, I think that the arguments that the Little League park should 35 be designated a historic location are a bit misplaced particularly as it relates to the cell tower 36 construction. I point out for example that the cell towers, that the light towers had already 37 been approved previously for at least one cell tower. Clearwire Communications received 38 approval from the City to place a cell antenna on top of the light pole closest to third base and 39 that the building, the shed was going to be used as a site for some of the transmission 40 equipment. Also I noticed in the Comprehensive Plan that there is a potential for putting 125 41 foot tower on the adjacent site, which is the substation for the electricity for the City of Palo 42 Alto. That would have a much more visual impact than anything related to what happens at the 43 Little League site. 44 45 City of Palo Alto Page 19 So I would strongly recommend that you dismiss this petition to make this an historic site 1 recognizing that it is an effort to try to impede the development in our community. There’s 2 really no historic value to the lights. They were installed long after the ballpark was placed and 3 so please don’t hurt your own credibility by approving this nomination for a site. I think this is 4 an easy call for you. Thank you. 5 6 Chair Kohler: Thank you. I have a card from… make sure I get this correct, Kim Amsbaugh. And 7 that will be followed Chris Melvin. 8 9 Board Member Bower: You could explain that the yellow light in front of them will give them a 10 minute left. 11 12 Chair Kohler: Oh, I see. The yellow light that blinks that means that you have a minute left on 13 your three minute time period. Oh, as you’re talking that little box there will (interrupted) 14 15 Kim Amsbaugh: Oh, yes. I know. Thank you. Sorry, I thought you were telling him he still had a 16 minute left. Ok, well now that I’ve wasted about 10 of my seconds. 17 18 Chair Kohler: No, we didn’t start until you started. I’ll restart it. 19 20 Ms. Amsbaugh: Alright, my name is Kim Amsbaugh and I’m on the Palo Alto Little League Board 21 and am in charge of sponsorships. As mentioned we are against Middlefield being designated a 22 historical site not because we’re turning our backs on the history of the league, but because 23 this application is the tactic of one individual to take any action necessary to prevent a five foot 24 cellular antenna to be placed atop a light pole at the ballpark. 25 26 You have two reports submitted by EBI Consulting and a third peer review report by M-Group 27 that finds the field does not meet the necessary requirements to achieve historical designation. 28 I want to take this time to outline the misrepresentation of facts in the application pertaining to 29 Middlefield being modeled after Sunken Diamond, the uniqueness of the ballpark itself, and the 30 historical value of the architect that designed our clubhouse. Yes, Middlefield is inspired by 31 Sunken Diamond built in 1931, which ironically is sunken only because 10 years earlier a large 32 hole was created when dirt was taken from that area to build the Stanford football stadium. To 33 our knowledge Sunken Diamond is not on any historical registry so we question why such a 34 consideration should be given to Middlefield ballpark built 20 years later. 35 36 In regards to Middlefield ballpark being a sunken diamond the direction and specifications of 37 the field itself are also not unique. When a ballpark is created consideration must be given to 38 the rising and setting sun so as not to impact the batter or the pitcher when playing the game. 39 This is why Middlefield, Sunken Diamond, and most ballparks are built with home plate located 40 on the north side of the field. Its orientation is in no way unique. 41 42 Similarly, Middlefield is not unique in the way the field itself is constructed. National Little 43 League has strict requirements for all fields on which teams play. This includes distances 44 between bases, from the pitching mound to home plate, and the placement of the outfield 45 City of Palo Alto Page 20 fences. Currently there are more than 6,500 Little League programs in 90 countries. They all 1 play on the exact same field configuration. 2 3 The applicant also claims that Middlefield deserves this distinction because of Morgan 4 Stedman. Yes, he built the clubhouse, but he is known and recognized for residential work that 5 incorporates unique fireplaces, wrought iron fixtures, and represents Spanish influences. Our 6 clubhouse is a simple rectangular structure made of concrete, cinder block, and wood. 7 8 Palo Alto Little League recognizes the role baseball has played in the history of the town; 9 however, although it’s the hub we take advantage of other City parks and games and practices 10 are held at every elementary and middle school in town. Surely they play just as large of a role 11 in creating the League’s rich history of memories, friendship, learning, and a love of baseball. 12 13 Chair Kohler: Thank you. Chris Melvin followed by Kristin Foss. Oh, I have one more here. 14 15 Chris Melvin: Hi, good morning. My name’s Chris Melvin, I’m a longtime Palo Alto resident. I 16 actually was born here, played Little League baseball here, I now coach and I’m on the Board. 17 My father was a Board Member back in the Seventies. I was going to speak specifically to a 18 single point. My position on the Board is I’m in charge of field so I four or five times a week am 19 taking care of the ballpark and so I’m very familiar with it and how it’s changed. 20 21 I have some pictures, unfortunately I don’t have slides. In the EBI report there’s a picture, I’m 22 sorry, there’s a picture of opening day that shows what the ballpark looked like then and 23 immediately adjacent to that is a picture of how it looks now. The piece I’m filling in there is I 24 pulled out this morning on my way here a photograph that is roughly the same view as those 25 two photographs from opening day and today from 1979. So we’ve got approximately every 20 26 years’ worth of photos. And you can see that the three pictures in some ways could be 27 different ballparks. When I first saw that picture in the EBI report I did not recognize it as the 28 ball field that I played on. Yes, the one in the middle, the black and white one there in the 29 middle… it was almost unrecognizable to me. I mean everything from the large mound of dirt 30 that was on the Middlefield side parking lot area where that is today to the open dugouts to the 31 backstop, which is probably the single most unique thing in any ballpark is the backstop. You 32 can’t change many other things. 33 34 The part I wanted to point out specifically is that in the Seventies and for a long period of time 35 till I guess the mid-Eighties or into 1990 there was a completely different configuration for the 36 backstop and that’s the picture that is in, that Board Member Bower is holding right now. We 37 had a backstop that was on what is now the playing field. There was an area behind it where 38 hitters would warm up back in the days when they had on deck hitters equipment was stored 39 there. There was a low fence for people to stand on, so it was a very different visual effect and 40 in a lot of ways as I said I didn’t recognize it as the same ballpark. So I think the litmus test 41 there fails at least from my point of view as someone who played on it during that era and who 42 now participates on it. 43 44 So that’s really all I had to say is that I think that the significant changes have taken place over 45 time and I hope you take that into consideration. Obviously I’m truly in favor of it as a resource 46 City of Palo Alto Page 21 for the community, but I don’t think a historic designation would do anything for its purpose as 1 a ballpark for youth. Thank you. 2 3 Chair Kohler: Thank you. Kristin Foss. 4 5 Kristin Foss: So should I go last as the property owner or? Because you said 10 minutes for the 6 property owner and I don’t know whether… 7 8 Chair Kohler: If you’re the property owner we should let (interrupted) 9 10 Ms. Foss: I’m sorry what? 11 12 Chair Kohler: If you’re the property owner you could speak last. So we’ll hear (interrupted) 13 14 Ms. Foss: Ok. So Mark speak last as the property owner. 15 16 Chair Kohler: Mark Priestley and then Kristin Foss. Is that ok? Yeah, ok. 17 18 Mark Priestley: So the light on now? Ok, Mark Priestley, Secretary of Palo Alto Little League. So 19 as you’ve heard before we’re opposed to the application, but I don’t want people to think we’re 20 opposed to our history. In fact we honor our history greatly. We have plaques on our 21 clubhouse. We have teams that are named after founders. Next month we’re meeting with 22 Crystal Gamage and the Alhouse family essentially to receive a plaque in honor of her father. 23 We care greatly about our history and past. We’ve been a Little League focused on youth 24 baseball as our mission 62 years. We stand on the shoulders of all the people who come before 25 us, the Members of the Board, and you can tell people keep coming back from playing to 26 coaching to being on the Board, but I don’t think that’s the issue here as partly the issue is 27 we’re an active and living community and as Chris said the site that we have today is very 28 different than the site that Bill Alhouse and his peers created in ’52. 29 30 We have a mission to bring youth baseball. The project that we’re proposing with Verizon will 31 help us continue that mission. It will help fund improvements to the site to help our mission. 32 Baseball has changed a lot and that’s why we’ve had to change over time. If you look at the 33 changes we’ve made it’s only the beginning of what we need to do to be relevant to the youth 34 who want to play baseball in our community. We can’t be a stagnant, we can’t be a museum, 35 we need to be able to evolve, which is what we’ve done. That’s why I think the historical 36 reports that you have before you from two different organizations validate that the historical 37 integrity of our site has been compromised because we’ve changed essentially everything. You 38 could look at every significant element and it’s different. And if you go back to those photos I 39 think that was probably the most evident thing to me when I pulled those out of our archives to 40 look at what it looked like in ’52 and you look at what it looks like now you could not and I 41 looked at several other views, I mean there was nothing there. There was no library, there was 42 no Mitchell Park, there was no elementary schools, there’s nothing around. This was the only 43 thing in the area. So the views are just so much different you would think you were in another 44 part of the country. 45 46 City of Palo Alto Page 22 So I wanted to emphasize we were caught a bit by surprise with this application. We didn’t 1 hear about it until we had got to the ARB meeting a month ago. Jason never bothered to come 2 to us or mention that he intended to apply for historical registry for our site. He’s never talked 3 to the Board or the property owner or any of us relative to this. I really do believe this is sort of 4 a sham relative to what his goal is, which is to try to block our improvements to the site. I think 5 you guys should see it is what it is. He’s very eloquent in speaking about his concern, but we’ve 6 never seen him active in our Board, in our League. He’s only involvement has been to oppose 7 the Verizon project so from our perspective he really is not interested in the history and this is 8 not what this is about. 9 10 Chair Kohler: [Unintelligible] 11 12 Mr. Priestley: Now he mentions there was a number of players and people of significance who 13 have come to the site including Ty Cobb, which it is an honor to meet someone who is from the 14 family because as a fan of baseball I mean you almost can’t think of a player who more 15 represents baseball. We were very lucky that he came to opening day ceremony, but I’ve 16 looked at all the records in our clubhouse. He was not a part of our Board, he was not a part of 17 our organization, he was an honored speaker just like Pop Warner was. I don’t think the fact 18 that someone who has great fame makes us a historical site. We’ve had Steve Young come and 19 speak at our site as well, but I don’t believe it makes us historical and I think you guys can see 20 through that. 21 22 We’ve had a lot of players who continue to play baseball after Little League. That does not 23 make them the fact that they’ve continued to play baseball none of them that we know of have 24 gone into the hall of fame, but we still honor as our mission the fact that we’re about baseball 25 (interrupted) 26 27 Chair Kohler: Ok, could you wrap up please? 28 29 Mr. Priestley: Sure. 30 31 Chair Kohler: Thank you. 32 33 Mr. Priestley: So I think I’d like to emphasize EBI and the M-Group, two different reports have 34 said that we’re not historical. We don’t have significant integrity of the site, we don’t meet 35 your local ordinances for Palo Alto so you should vote against making us a historical site or 36 putting us on the registry. 37 38 Chair Kohler: Thank you. Kristin Foss. 39 40 Ms. Foss: Hi, I’m Kristin Foss, the President of Palo Alto Little League. On behalf of the 41 hundreds of families and over 1,000 children who are part of our program I urge you to reject 42 the application in front of you. Palo Alto Little League is proud of our rich history and our key 43 role in building community here. We especially love Middlefield ballpark. I think I’ve broken 44 your microphone… is this better? It’s a beautiful site and anyone whose kids have played PCL 45 or Majors have spent countless hours at that park. Every time I’m there, which is several times 46 City of Palo Alto Page 23 a week during the season I see younger kids who can’t wait to be old enough to play there and I 1 see older kids watching their younger brothers or sisters or are there to umpire that fondly 2 remember their playing days there. My own family like most Palo Alto Little League families 3 cherishes memories of everything from extra inning nail biter city championship games to 4 postgame whiffle ball derby’s where all the teams get together and play like neither one of 5 them just won or lost a game. 6 7 But let’s be clear that’s not at all what this application is about. This application was submitted 8 by Mr. Yotopoulos who has never played on Middlefield Park. His children have never played 9 on Middlefield Park. He has never coached or managed a team that’s played on this ballpark. 10 He’s never raked the field or lined it for an upcoming game. He’s never participated in our 11 annual workdays to do maintenance on the field. He’s never contributed to our more 12 significant improvements like replacing the pitching mound or resurfacing the batting cages. So 13 I’m here to represent the hundreds of people in Palo Alto who have done those things and a lot 14 more. 15 16 You heard from Mark the other thing Mr. Yotopoulos has never done is contact any one of us 17 about whether this ballpark should be a historic landmark or what that impact would have on a 18 100 percent volunteer organization many of whom are taking time out from work to do this and 19 also take time out from work to coach kids, maintain our field, and we’re trying to ease the 20 burden on the next board and the board after that so they don’t have to come to you every 21 time they want to make a change, cover a batting cage, put shades on the dugout or something 22 like that. 23 24 This is clearly as you’ve heard from other people about the cell tower. Mr. Yotopoulos 25 vehemently opposes that, but there’s a process for that and it’s not this. One member of the 26 close group of, the small group that he is closely associated with has personally told me in the 27 ballpark of Middlefield, in the parking lot of Middlefield that they will shut us down if we allow 28 Verizon to proceed. And this is just one of the attempts to do that. 29 30 Palo Alto Little League is against this designation not because we’re turning our back on our 31 history. We embrace our history, we consider ourselves just one little segment in a long line of 32 history. And every day that we go out there and we coach kids and we teach them how to play 33 baseball and how to be teammates and how to be members of this community we contribute 34 to that history. We’re against this designation not because we have anything against history, 35 but because we need to evolve just like baseball has evolved. There are aluminum bats, 36 specialty gloves, safety gear, there are all kinds of changes coming including a new league, 37 which is called 50/70 and it has longer base paths and a slightly deeper outfield fence. I’d like 38 to make those changes to our ballpark. I’d like to cover the dugouts if I can raise the money 39 because the kids in there including our challenger league just bake on a sunny afternoon. In 40 fact, as a parent I’d like to cover the bleachers, but that’s a that’s a capital improvement I may 41 have to wait for. I want to be able to do all of that or I want the next board to be able to do all 42 of those things without having to bring every change in front of this Board because I hope that 43 the 60 years that we’ve spent maintaining baseball in Palo Alto has proven to you that we do 44 honor baseball and we honor its place in the City and that you’ll trust us to make the right 45 decisions and the right evolutions on our site to enhance baseball in Palo Alto. Thank you. 46 City of Palo Alto Page 24 1 Chair Kohler: Thank you. According to my schedule the applicant has a three minute closing 2 statement if you like. If not that’s ok. 3 4 Mr. Yotopoulos: Yes, thank you. 5 6 Chair Kohler: Go ahead. 7 8 Mr. Yotopoulos: So this is a as you can tell by 60 some odd pages and numerous interactions 9 over the course of many months this is not something that someone has no interest in the 10 history of this ballpark would undertake if they were in their sane mind. This has been a 11 tremendous endeavor and I think you can see the detail that’s gone into it. I feel a tremendous 12 obligation for the founders and frankly for the protection of this historic site, which is why I’ve 13 done it with the assistance of many others who were listed. 14 15 But importantly I also firmly believe that we need to follow due process in our City. So the ARB 16 will decide what it decides on the cell tower, but that does not mean that we can divest our 17 decisions, critical decisions around our cultural heritage to a corporation that is coming in from 18 the outside and paying contractors to feed us recommendations. I believe that it is the onus of 19 people that have lived in this community, grown up in this community, and recognize these 20 various elements to make these decisions, which is why we’re in front of you today. I think it’s 21 our obligation and responsibility to make independent objective decisions and the implications 22 of those will be handled by the ARB, they will be handled by the City Council, but as I 23 understand it the job of this HRB is to take a look at the facts consistent with the way that you 24 look at all the other facts with any particular application the one that proceeded it and in 25 previous months and to make the call. 26 27 I think it’s particularly important right now especially when our City is somewhat under duress 28 with an onslaught of development and the threat of a legal suit. We at this time cannot bypass 29 due process, right? And I also believe that it’s particularly important to follow in a sense the 30 steps that are stipulated within our City’s guidelines. So I thank you very much for the attention 31 to due process and for listening to the argument in favor of the nomination for the Palo Alto 32 Little League today as a Historic Inventory item in Palo Alto. 33 34 Chair Kohler: Thank you very much. That concludes the public portion of the meeting today. 35 This seems awfully loud. Next on the agenda would be… what’s that? I can’t hear you. Please 36 speak into the microphone so I can… 37 38 Board Member Bunnenberg: I was asking what about the City Attorney? 39 40 Chair Kohler: City Attorney is sitting her for questions if we have any questions of her. 41 42 Board Member Bunnenberg: Ok, so [unintelligible] 43 44 City of Palo Alto Page 25 Chair Kohler: That’s the, we’re now into the discussion, yes, Board discussion. So we have 1 closed the public hearing and we are now into the discussion with the staff and our 2 recommendations. 3 4 Ms. French: Can I? 5 6 Chair Kohler: Sure. 7 8 Ms. French: May I? I just wanted to alert the Board that the consultant EBI Consulting is here in 9 the event that the HRB has questions of the consultant. Our consultant, M-Group, who 10 prepared the two reports is not here. 11 12 Chair Kohler: Ok. So we have discussion, Motions… 13 14 Board Member Bernstein: I have a question for the City Attorney. Yeah. Cara Silver, thank you 15 for attending our meeting. My question is based on so the City of Palo Alto’s Historic 16 Preservation Ordinance is voluntary compliance, correct? 17 18 Ms. Silver: To some extent, it depends on whether the property is designated or not. 19 20 Board Member Bernstein: Correct. 21 22 Ms. Silver: If the property is designated there are some additional requirements. 23 24 Board Member Bernstein: Correct, so currently this property is not designated. I’m concerned 25 about property rights that if a property owner wishes not to be considered on the Historical 26 Register shouldn’t that end it? why does the City Council need to if we decide, if the HRB 27 makes a Motion and decides not to designate it it still has to go to the City Council for them to 28 debate that and agendize that? And if the Council says yes it should be designated where’s the 29 voluntary action on a non-registered property? That seems almost, that could be harmful for a 30 property owner. 31 32 Ms. Silver: Yes, Boarmember Bernstein, that’s an excellent question and I think it’s a very 33 significant policy question for this Board and for Council. As I understand the history of the 34 Historic Preservation Ordinance those were issues that were heavily debated at the time and 35 the current ordinance does permit a interested party to seek designation over the property 36 owner’s objection, which is very different than the state and federal of course laws. And while 37 the ordinance does permit an interested party to designate, to seek designation it is a policy call 38 for this Board and the Council to designate in light of property owner’s suggestion and I do 39 think that we’ve done a little bit of research in this area and it does not appear, we weren’t able 40 to find other precedents where this Board has recommended a designation over the property 41 owner’s objections. And I think that that is something that staff would want to do more 42 research on because I think that the whole Historic Preservation Ordinance does contemplate 43 as you say this voluntary compliance and there was a buy in from the entire community in a 44 policy discussion about this at the time the ordinance was adopted and these are very 45 significant policy discussions and could be a significant departure from past practice. 46 City of Palo Alto Page 26 1 Board Member Bernstein: Thank you. Is it required that today that the HRB actually make a 2 Motion and vote to designate this historic or vote to not designate it? Are we required to even 3 make a Motion today and vote on this? 4 5 Ms. French: You’re asked to make a Motion and it could be to render a recommendation, it 6 could be to continue the public hearing. Those are the basically the two options. 7 8 Board Member Bernstein: Ok, so no matter what the HRB then votes and moves and votes on 9 it’s going to go to City Council at a certain period of time. ARB is meeting tomorrow so ARB can 10 approve the proposed project tomorrow and then that’s a done deal, subject to any appeal, 11 right? 12 13 Ms. French: So the ARB is recommending to the Director, who would then decide on the ARB 14 component of the application as well as the CUP component of the application, and along with 15 the CEQA determination. And then that is appealable to the Council. The CUP is actually a 16 hearing request to the Planning Commission if that is, assuming that request comes in. The 17 Planning and Transportation Commission (PTC) is the body that considers, in a public hearing 18 setting, the CUP and can debate the use prior to it going to the Council. 19 20 Board Member Bernstein: Alright, ok. Alright, thank you for those clarifications. 21 22 Board Member Bunnenberg: Question. Would it be within the realm of possibility to have a 23 study session for the HRB and the Board of the Little League to talk some more about what the 24 ramifications are? I see a lot of fear and sometimes misunderstandings about some of the 25 ramifications and maybe not as many of the values of having historic designation. Could you 26 speak to that? 27 28 Ms. Silver: Yes, thank you. That is I think a very good suggestion. You might want to couch the 29 study session more broadly to inform the public on what the ramifications are of historic 30 designation. I do think that that’s an area where there is some uncertainty from a public 31 perspective and it would be very helpful to do that. 32 33 Board Member Bunnenberg: And let’s see… if we should delay our decision is it my 34 understanding that we need to do something by what is it? December the third? Is that 35 correct that we could? 36 37 Ms. French: Yes, I’ve done the math and the deadline basically the first meeting of December 38 regular HRB meeting date of December 3rd is the last moment at which the HRB can make the 39 recommendation, correct. 40 41 Board Member Bunnenberg: Thank you. 42 43 Chair Kohler: Martin. 44 45 City of Palo Alto Page 27 Board Member Bernstein: Since the public hearing is closed I guess we’re free to make 1 comments too, right? Ok. The in fact it kind of relates to the slide that’s up there right now for 2 the public’s view too where it talks about character defining features since we’re making 3 comments now. The photograph that Chris brought showing 1952 and 2014, excellent piece of 4 evidence here about character defining features the seven aspects of integrity that are 5 important for HRB to review: setting, location, materials, design, workmanship, feeling, and 6 association; important criteria to looking at any potential historic designation. This photograph 7 clearly shows to me that materials, design, workmanship, feeling have been altered so much 8 that the character defining features for any potential historical are altered beyond historic 9 quality and that’s going to be my vote if that ever comes up. Thank you. 10 11 Chair Kohler: Beth one more time on you. This is your last chance. 12 13 Board Member Bunnenberg: I would like to follow up on Martin’s comments on integrity. The 14 location is clearly the same, the character defining features have had some changes made, but 15 they are the kind of changes that have gone on, on most every stadium or ballpark that you can 16 think of. These are things that the field apparently has gotten longer. Some of the aerial views 17 suggested well the field’s not even quite the same shape anymore. Well, one of the factors is 18 that early article said it was 180 feet from the batter’s position to the far outfield and now it’s 19 200 because Little League has changed that and was required to do that, but it was not even a 20 choice of the Board of the Little League. When you think about many in fact all the changes 21 that have been made could be reversed, but this would be a highly unlikely kind of thing 22 because they put in high fences to keep the balls from ending up out in Middlefield because the 23 bats have changed, they use aluminum bats now and kids can really hit them a long distance 24 and so and some of the changes to the snack bar were things that needed to be done for health 25 regulations. So there are a number of factors that play into these kinds of changes and I think 26 that there still is that clear feeling of you’d recognize it as a baseball stadium or a baseball field. 27 28 In terms of the setting I wanted to talk a little bit more about that because one of the 29 consultants talked about oh, it really is only important the thing that the visitor is all focused on 30 the game, so it doesn’t really matter so much what is out there, but in terms of Palo Alto what 31 is out there actually is part of the story and part of the real setting of the ballpark and this was 32 referred to by some, now then there was a statement that there was not an elementary school 33 it turns out that Fairmeadow opened in 1951. So it was there. The church, the Covenant 34 Presbyterian Church, made an application at almost exactly the same time that Little League did 35 to start building their church. The fire station was a little bit later about 1953. And so all of this 36 was going on and in terms of the housing, housing was being built down there. Stern and Price 37 put in 23 homes and so it was this and of course the Mitchell Park park itself, which is one of 38 the biggest bounding neighbors, City bought that land in ’52 and Mitchell Park opened in ’55. 39 So this is a part of that effort by the City to build immediately or as soon as possible the services 40 that are needed for all this new section. So I have some and of course the trees have grown. 41 There were not a whole lot of trees down there because it was a ranch and a farm and a 42 meadow was called for that rancher’s name, but it didn’t go over very well as people tried to 43 sell property. 44 45 City of Palo Alto Page 28 In terms of the materials a number of things have changed, but they still are in very close 1 proximity to what was there. Workmanship the significant thing there was that so much of it 2 was donated and many of the names of the early people were companies that had bulldozers 3 and equipment to bring in and help with the site. The feeling is intact and the association is 4 intact so that I would submit that possibly it has more integrity than has been stated. 5 6 Chair Kohler: I was just going to check on the far end over there. Do you have any comments 7 or? We’ll work our way toward the middle. 8 9 Board Member Wimmer: I don’t necessarily have any questions so much, but as an opinion. It 10 seems like the motivation of this application is clouded with the apparent opposition of the 11 pending cell phone tower installation and it’s not purely for purposes of historic preservation. I 12 think that the City has done due, their due diligence with preparing reports and on behalf of the 13 applicant has given us invaluable information and research of historic value and all that. I think 14 in reviewing some of the reports that were professionally prepared it tells us that the site is at 15 this time not a good candidate for historic designation and I think without the property owner’s 16 consent it makes it very difficult to support the application. I think if the tower wasn’t an issue 17 and if the owners were on board with an outside applicant maybe they would be interested and 18 maybe in the future they might be interested in designating it as a historic site. I think it is a 19 potential future candidate for that, but I think at the moment I think there’s some obvious just 20 clouded with some other issues. So. 21 22 Vice-Chair Makinen: Ok, the way I look at this I kind of visualize this as a cultural landscape that 23 may have importance to the City of Palo Alto and you gentleman who have played on this field 24 over the years probably can better attest to that than I can, but it certainly is a cultural 25 landscape has the impression to me that it does convey importance as a cultural landscape and 26 the criterion that it would hang its hat on is that particularly representative of a way of life 27 important to the City and from what I’ve heard from some of the gentleman who have played 28 on it, it does appear to have importance in the past. So from the standpoint of being what I 29 would consider a cultural landscape, an urban-scape of importance it does have merit. I have 30 to weigh that against the other aspects in the report where the owner is not endorsing the 31 designation of being historic and some of the other aspects of questionable integrity, but I think 32 on the whole it does have merit as a cultural landscape. 33 34 Board Member Bower: I first of all I want to thank Mr. Yotopoulos for spending an 35 extraordinary amount of time researching this. I played on that field. I was two when the 36 property was purchased, but I knew all the players: Maurice Lagoin, Walt Gamage, Bob Barr 37 was another was… all those people were family friends and I knew them personally and they 38 got together to create this ballpark so that all of us could play Little League. Now if you were to 39 ask my sister whether this was a social gathering place she would absolutely disagree because 40 girls were not part of it. So this was clearly a male, a specifically male thing. It’s changed today, 41 my daughters played softball. 42 43 So when I first saw this I thought it was a very interesting application and then of course I went 44 back to all of the seminars that I’ve attended in the nine years I’ve been on this board and I hit 45 an absolute roadblock when I started looking at the 9th actually in this, this is a revised report, 46 City of Palo Alto Page 29 the Metropolitan report that we got last night, which I read. There were nine major 1 characteristics. Only two actually exist and that is the fact that one of them is that it’s a 2 ballpark and that it’s sunken. And as these pictures demonstrate all of the major characteristics 3 of this site, which is what it is, it’s not a building, I mean it’s not just a building really have been 4 changed beyond recognition. And according to the Category 3 and 4 description in the Palo 5 Alto Municipal Code a contributing building, now this is a 3 or 4 Category building is any 6 building which is a good example of an architectural style, which this would probably qualify 7 for, but and a contributing building can have extensive permanent changes made to original 8 design even in appropriate additions, but I can’t even see this property fitting into that 9 category. And both the professional staff reports, I mean the people who were hired by the 10 City agree with that and sadly I couldn’t support this being designated as a historic structure. 11 12 Oddly in this Board I usually represent the side that says look, you can make a major change to 13 a building, you can change the historic glass to get insulated glass. This is a tension Beth and I 14 have had the entire time we’ve been on the Board and I was absolutely astounded when Beth 15 was saying oh, this is all these changes they’re not really significant. So I felt like we had 16 switched positions. I also couldn’t support any application that did not have the support of the 17 property owners although I should say that the Little League Board ought to reconsider or to 18 think differently about historic designation. It’s not as constrictive as you think. While I think 19 it’s not going to happen here, I don’t think it’s appropriate, historic designation has benefits 20 and they are financial benefits so I don’t think that I hope you view this in a more open-minded 21 way in the future. 22 23 I guess finally I would say I am deeply troubled by the fact that Mr. Yotopoulos has a strong 24 problem with the cell tower and that it’s very clear in our documents that that probably drives a 25 large majority of his energy to getting this project, this property designated as a historic site. I 26 think that’s totally inappropriate and basically I couldn’t have supported this even if it did 27 qualify because I think it’s too personal and obviously very single-mindedly not part of our 28 jurisdiction. As I said earlier we have had cell towers in historic places and the cell tower I think 29 just from my perspective would be accepted here and not a problem. So sadly while I’m, I’m 30 really encouraged that somebody would spend this enormous amount of time providing us with 31 history that I think probably wouldn’t be available to us in the future, it is now, I can’t really 32 support this application and I think it was inappropriate in its beginning. 33 34 Chair Kohler: Ok. So it’s back to me, the old man on the Board. It was interesting to hear Beth’s 35 comments about various things like Mitchell Park. When I was a fourth grader at Fairmeadow I 36 watched the bulldozers go by and create Mitchell Park so I know all about that. As a kid I 37 played on the Little League team, actually I didn’t play, I was always I can’t remember what my 38 role was. My son played there a lot so I remember that as well and I actually remember from 39 high school playing pick-up baseball at the Little League ballpark because when we were in high 40 school we could hit the ball out of the park, which was kind of fun. And as a Cubberley 41 graduate I saw pictures at our 50 year reunion a year ago where you could stand out in front of 42 Cubberley and see the Little League ballpark because there was nothing between Cubberley 43 and the Little League ballpark, no trees, it was just open space. And now of course you can’t 44 see anywhere, any wide that distance, so I grew and then Covenant Church was where I was 45 married and my mother continued on active in that church till she passed away. So it’s a very 46 City of Palo Alto Page 30 important place to me. So I know that neighborhood pretty well and I think I lost my train of 1 thought, but I would like to at some point I think the ballpark should get some sort of 2 recognition of its historic value and as Martin mentioned cultural landscape I think that might 3 be something of value to pursue, not that it would impact the work that’s going on at that 4 ballpark, but I think some notification of its historic value to Palo Alto would be appropriate if 5 there’s some way to have that come about. 6 7 I read the report last night that came to us at I think it was 8:00 at night or something. I finally 8 read it at 10:30 or 11:00 so it took a while and then we read the other reports and there’s just 9 as David has mentioned here, there doesn’t seem to be enough evidence that it’s right now 10 ready for a category of Palo Alto’s historic listing. I was thinking maybe a Category 4 might be 11 possible because it’s, it obviously has a lot of value culturally to our town and our City. 12 Everyone has, has lived here for any length of time knows about the Little League ballpark. So I 13 think some sort of designation of some sort at some point would be really a good thing to 14 happen. Right now there’s no fear of it being sold and condominiums being put there, but the 15 future you never know. So that’s my sort of agreeing with David at the moment we don’t have 16 enough to category it at this instant in time. Beth, you want to add something? 17 18 Board Member Bunnenberg: I would like to also point out that we received information so late 19 and Martin Bernstein apparently didn’t receive it at all that it would be a rush to decision to 20 make a final judgment that this property is not historic. I’d like to see us be able to continue 21 that to further study and perhaps think about the cultural landscape, some way that this might 22 be an application that could be reconfigured. 23 24 Chair Kohler: I think you can make a Motion and see how far that will go. 25 26 Board Member Bunnenberg: Pardon? 27 28 Chair Kohler: You have to make a Motion and the Board will vote on whether they want to do 29 something like that. 30 31 Board Member Bunnenberg: Aright, are we ready for a Motion? 32 33 Vice-Chair Makinen: Can I add one thing to that that you may want to include in your Motion? 34 And there’s been some discussion alluded to here that perhaps some designation other than 35 Category 1, some lessor level might be more amenable to the Board than a Category 1 if the 36 applicant would care to consider that. 37 38 Chair Kohler: I don’t think it matters. 39 40 Board Member Bunnenberg: As a part of the Motion to delay that to? 41 42 Vice-Chair Makinen: If the Motion maker desires to incorporate my thought. 43 44 Board Member Bunnenberg: Alright. 45 46 City of Palo Alto Page 31 Chair Kohler: Well for one thing there hasn’t been a Motion made yet. So if you want to make a 1 Motion you should… 2 3 MOTION 4 5 Board Member Bunnenberg: If I make a Motion I would like to make a Motion due to the 6 lateness of some of the material that we delay our decision to a time on or before December 7 the 3rd and that we make some consideration of whether this should be as suggested a 8 Category 1 or one of the other categories provided for in our inventory. 9 10 Chair Kohler: Ok, there’s been a Motion made. Is there a second to that Motion? 11 12 SECOND 13 14 Vice-Chair Makinen: I’ll second that. 15 16 Chair Kohler: Oh. So it’s been a Motion that we postpone final decision on this project I think is 17 one way to put it to a later date when there’s more data and we can speak to the Motion. 18 19 Board Member Bernstein: If the, if this Motion passes what does it do to the ARB scheduled 20 meeting tomorrow? 21 22 Ms. French: Nothing. The ARB is going to continue, continued its meeting to tomorrow. It’s on 23 the agenda as first up so it will proceed. 24 25 Board Member Bernstein: Ok, thank you. 26 27 Board Member Bower: My comment about this Motion is I did get an opportunity to read, I 28 spent most of the weekend reading this. This is a lot of material to plow though. And as I got 29 into it I actually got more and more interested in it for because in part of my experience at the 30 ballpark. I don’t see any additional information in the material we got last night that wasn’t 31 really covered in the earlier material. While the specific response by Metropolitan in their 32 October 14th memo had some small detail changes I think that the information we got both 33 from their September 5th memo and from the EBI memo is basically clear and I don’t see that 34 postponing this is going to help. I think it creates the impression that we will possibly find that 35 this property would fit into a Category 3 or 4 and I still think that without property owner’s 36 consent that’s questionable. So I couldn’t support this Motion. 37 38 SUBSTITUTE MOTION 39 40 Board Member Wimmer: I agree with David. I think that we have been presented an enormous 41 amount of information. I think due to the lack of the owner’s support, the legal issues, I think 42 as a Board we should just stop it here and make a decision and I would like to move that we 43 recommend that the listing, excuse me, I move to not recommend. I’d like to make a Motion to 44 move to not recommend the listing on the historic resource (interrupted) 45 46 City of Palo Alto Page 32 Chair Kohler: Excuse me, I think we have to resolve our (interrupted) 1 2 Ms. French: Ok, that can be a Substitute Motion. 3 4 Chair Kohler: [Unintelligible] 5 6 Board Member Wimmer: Excuse me, I’m out of turn. I apologize, but I just wanted to agree 7 with David. I think that we have a plethora of information and I think we need to make a 8 decision. 9 10 Chair Kohler: So we’re calling here a Substitute Motion and then what’s the legal way you do 11 Motions [per] Motion? 12 13 Ms. French: When you make a Substitute Motion as you have just done, then the Board acts on 14 the Substitute Motion first. 15 16 Chair Kohler: Ok. 17 18 Ms. French: And then gets back to the main Motion if the Substitute Motion does not pass. 19 20 SUBSTITUTE MOTION SECONDED 21 22 Board Member Bower: So I’ll second the Substitute Motion. 23 24 Chair Kohler: Ok, so there’s been a Substitute Motion and a second to the Substitute Motion, 25 which essentially why don’t you repeat it again because I interrupted you. 26 27 Board Member Wimmer: Sorry and I’m the new one on the Board so I don’t know all the… 28 29 Chair Kohler: I’ve been on the Board 20 years and I don’t (interrupted) 30 31 Board Member Wimmer: The protocol, the proper way of doing it. But I would like to make a 32 Substitute Motion to not recommend the listing on the Palo Alto Historic Inventory. So it’s 33 simple enough. 34 35 Ms. French: Or could it be phrased as, I think this is what you’re saying is, that you recommend 36 that Council not place the site on the City’s local inventory of Historic Resources. 37 38 Board Member Wimmer: Yes, what she said sounds good. 39 40 Chair Kohler: And David Bower has seconded that Motion. 41 42 FRIENDLY AMENDMENT TO SUBSTITUTE MOTION 43 44 Board Member Bunnenberg: Oh, I was going to suggest a not place it on the inventory “at this 45 time.” Would that be acceptable to the maker of the Motion? 46 City of Palo Alto Page 33 1 Board Member Wimmer: Yes, “at this time.” That would be perfect. And if another application 2 in the future comes up I think without clouded ulterior issues I think then we can address it at 3 that time. 4 5 Chair Kohler: Go ahead Martin. 6 7 Board Member Bernstein: Maybe the City Attorney can clarify this; I don’t think it’s necessary 8 to say “at this time” because “at this time” only refers to a future action. So I don’t think it’s 9 necessary to say “at this time.” It’s always, you can always do it at any time, so I don’t think 10 that’s appropriate, I think it could be misleading to use the words “at this time.” It adds some 11 confusion I think. So I think it should be eliminated from the Motion “at this time.” 12 13 Chair Kohler: I [unintelligible] 14 15 Board Member Bernstein: [Unintelligible] City Attorney. 16 17 Ms. Silver: Yes, the words “at this time” are not required. They also can be added if you want to 18 give sort of the indication to the public that you would be willing to reconsider this at a 19 different point in time. 20 21 Board Member Bernstein: I don’t think the words need to be used. 22 23 FRIENDLY AMENDMENT NOT ACCEPTED 24 25 Board Member Bower: I would say as second, as a second to this Motion that wouldn’t be 26 acceptable to me then, that language just for the reasons you just stated. I don’t accept that as 27 a Friendly Amendment. 28 29 Chair Kohler: Go ahead Martin you’re (interrupted) 30 31 Board Member Bernstein: And the reason I will be supporting that, I will be supporting this 32 Motion and the photograph again that Chris brought I think it just really makes it very clear the 33 before and after. It clarifies it for me very clearly. Thank you. 34 35 Chair Kohler: Any other discussions? Beth. 36 37 Board Member Bunnenberg: And I respectfully disagree. I feel that (interrupted) 38 39 Chair Kohler: You need to talk into the microphone. 40 41 Board Member Bunnenberg: I respectfully disagree because I feel that without that wording it 42 would give the sense that we’ve closed the door. 43 44 Chair Kohler: I don’t think that closes the door on anything. It can always come up again. Yeah, 45 there’s no limit on, we’ve had people come by over the years. There was one fella that came in 46 City of Palo Alto Page 34 here about every six months at one point. And so I don’t see a hindrance in that. Any other 1 discussions? There’s been a Motion to accept the staff’s recommendation that this proposal be 2 denied. Is that one way to say it or? 3 4 Ms. French: I think the Motion’s been stated as agreed to the clarification. 5 6 Chair Kohler: Margaret has stated. All those in favor say, wait, what? 7 8 Board Member Bernstein: No it’s not necessary, it’s been stated. It’s already [unintelligible] 9 10 VOTE 11 12 Chair Kohler: [Unintelligible] record. All those in favor say aye (Aye). Opposed? 13 14 Board Member Bunnenberg: No. 15 16 Chair Kohler: That passes then by a count of five to one. Thank you very much everybody and 17 we’ll move forward here. 18 19 SUBSTITUTE MOTION PASSED (5-1-1, Board Member DiCicco absent) 20 21 1 METROPOLITAN PLANNING GROUP October 14, 2014 City of Palo Alto Attn: Mrs. Amy French 250 Hamilton Avenue 5th Floor City Hall Palo Alto, CA 94301 RE: Historic Resource Evaluation Peer Review Middlefield Ball Park, 3672 Middlefield Road Palo Alto, CA INTRODUCTION: The City of Palo Alto has contracted with M-Group to perform a Peer Review of the Historic Resource Evaluation prepared by EBI Consulting for the Middlefield Ball Park, located at 3672 Middlefield Road in Palo Alto, California. M-Group’s peer review of the HRE for Middlefield Ball Park included consideration of whether the evaluation followed standard industry practice to inform methodology and whether appropriate sources of data, records, and documentation were utilized to fully capture available information necessary for an informed and comprehensive evaluation. M-Group verified information and considered the validity of conclusions and resulting determination of significance for the Middlefield Ball Park site. M-Group also performed limited supplementary research in those areas we believe warranted further consideration. As a supplementary task M-Group was asked to evaluate the Ball Park under the Local Register Criteria; the evaluation is located at the end of the report. The following memorandum describes the findings of our review which are organized to follow the progression of the EBI Report to promote ease of reference. M-Group’s review concludes with a summary of findings. METHODOLOGY: M-Group performed a systematic review of the Historic Resource Evaluation prepared for the Middlefield Ball Park, 3672 Middlefield Road, Palo Alto by EBI Consulting on July 9, 2014. M-Group’s review focused on the adequacy of research and soundness of conclusions drawn by the author. Additional information necessary to supplement the existing report and verify findings was obtained from Palo Alto Historical Society, Little League Baseball online resources and review of correspondence drafted by the Palo Alto Little League Board of Directors. The review was supported by a site visit performed by M-Group staff on October 10, 2014. Attachment B 2 METROPOLITAN PLANNING GROUP EVALUATION CRITERIA National and State Eligibility Criteria The National Register of Historic Places, maintained by the National Park Service, serves as the master inventory of historic resources important in the history, architectural history, archaeology, engineering and culture of the United States at the national, state and local levels. A historic resource can be a building, structure, object, site or district that is 50 years or older or is of an age where sufficient time has passed necessary to obtain a scholarly perspective on the events or individuals associated with the resource. Historic resources are considered eligible if they meet at least one of the following criteria as listed under column one (1) in the table below. The California Register of Historic Resources The California Register of Historic Resources is administered by the State Historical Resources Commission. The California Register encourages recognition of the State’s historical resources and provides a modicum of protection under the California Environmental Quality Act. Buildings, structures, objects, sites and districts are eligible for listing on the register. For properties to be eligible for listing on the register they must have reached 50 years a sufficient amount of time must have passed necessary to obtain a scholarly perspective on the events of individuals associated with the resource. To be listed, a property must display significance at the local, state, or national level under one or more or more of the following criterion listed under column two (2) in the table below: NATIONAL REGISTER CALIFORNIA REGISTER SIGNIFICANCE CRITERION Criterion A Criterion 1 Associated with events that have made a significant contribution to the broad patterns of our history. Criterion B Criterion 2 Associated with the lives of persons significant in our past. Criterion C Criterion 3 Displays distinctive characteristics of a type, period, or method of construction, work of a master, high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction. Criterion D Criterion 4 Yielded, or may be likely to yield, information important in prehistory or history. Local Eligibility Criteria The Palo Alto municipal code 16.69.040 outlines criteria for listing on the City’s Local Register as: Criterion 1 The structure or site is identified with the lives of historic people or with important events in the city, state or nation; Criterion 2 The structure or site is particularly representative of an architectural style or way of life important to the city, state or nation; Criterion 3 The structure or site is an example of a type of building which was once common, but is now rare; 3 METROPOLITAN PLANNING GROUP Criterion 4 The structure or site is connected with a business or use which was once common, but is now rare; Criterion 5 The architect or building was important Criterion 6 The structure or site contains elements demonstrating outstanding attention to architectural design, detail, materials, or craftsmanship. Historic Resources deemed to be significant must also be able to convey their historic significance. The ability to do this is judged by how well the resource meets the seven aspects of integrity: Location, design, setting, materials, workmanship, feeling and association. To retain integrity it is often agreed that a property should meet most of the seven aspects. However, the individual nature of the property and its particular significance may result in certain aspects holding more weight than others. The typical test for integrity is whether a historical contemporary would recognize the property as it exists today. PEER REVIEW The following review evaluates the content and conclusions of each section of the HRE completed by EBI. P3a.Resource Description: The resource description provides a thorough description of how the site exists today, but provides very little information as to the original design of the Ball Park. M-Group recommends adding a thorough description of how the site appeared in 1952 in order to provide a more robust understanding of how changes discussed in subsequent sections impact the site. Historic images and aerial photos would be valuable to supplement the best resource for setting the historic context of the resource. P4.Resources Present: The HRE characterizes Middlefield Ballpark as a structure. However, upon review, M- Group recommends that a more appropriate characterization of the Ball Park would be as a “site or district” based on the fact that it is a designed landscape comprised of various elements that when taken together imbue the site with its significance. A historic designed landscape, which falls under the category of “site or district ” for the purposes of listing on the National or California Register is defined as “a landscape that was consciously designed or laid out by a landscape architect, master gardener, architect, or horticulturist according to design principles, or an amateur gardener working in a recognized style or tradition. Examples include: estate grounds; botanical and zoological parks; church yards and cemeteries; campus and institutional grounds; fair and exhibition grounds, parks (local, state and national) and campgrounds, and parkways, drives and trails.” This definition is a more appropriate classification for the Little League Ball Park than “structure” which refers to functional constructions made for purposes other than creating human shelter. By characterizing the resource as simply a “structure”, the evaluation remains overly simplified and narrow in scope and the understanding of character defining features may be skewed. Typically components of a designed landscape (or site, or district) should be considered in terms of their relationship to the totality of the landscape. The components of the Ball Park, including the field, dugout, bleachers, concession stand, spatial organization, viewshed, materials, orientation, and configuration are all arranged in such a way that individually, they lack meaning, but together they are reflective of a Little League Ball park. Therefore, we suggest reconsidering what type of resource the Middlefield Ball Park is characterized as. 4 METROPOLITAN PLANNING GROUP B5.Architectural Style: The discussion of the architectural style appears adequate. B6.Construction History: The construction timeline would benefit from a more detailed discussion. While the construction history seems to provide a thorough description of the more recent alterations (c.2004) the description of the original design, materials and configuration is lacking such that, as a reader it is difficult to discern what the original park looked like and what was the original design intent of the architect. An expanded description either under “property description” or “construction history” would be prudent in order to understand how the original design was or was not altered by subsequent changes and additions. Furthermore, there is little discussion of whether or not materials were replaced in kind. While it can be assumed that the replacement materials were of modern origin it is difficult to discern the extent to which those material changes altered the site. For instance, how different is the new scoreboard from the old? Is it in the same location? Was there always a chain link fence around the site or was that a recent addition? An expanded discussion is recommended for this section. In a letter composed by the Palo Alto Little League president, Kristen Foss, on behalf of the Palo Alto Little League Board the president outlines the following known changes that have taken place since the Ball Parks construction in 1952:  replacing walls and all flooring on first and second level of clubhouse  replacing wooden bleachers for modern metal bleachers  the addition of modern lighting along the outfield fence line  the replacement of one flag pole for three modern flag poles  the addition of batting cages  the addition of bull pens and backstops along the right and left field lines  the replacement of cubby holes in dugouts that had previously replaced the originals  the replacement of a natural pitching mound for a modern, artificial mound  the replacement of the scoreboard (replaced at least twice since the 1950s)  Reconfiguration of first level of clubhouse to meet city health requirements and the needs of the snack shack, including the addition of a doorway and serving window  New windows on backside of clubhouse facing Middlefield Road  Replacement of windows facing ball field with metal screens  Replacement of backstop that extends along first and third base lines  Parking lot resurfaced  Complete replacement of dugouts  Replacement of fencing for chain link fencing  Addition of picnic tables and BBQs placed beyond Center Field  Placement of foul line poles A greater level of consultation with the Palo Alto Little League Board would provide a higher level of accuracy and understanding of the sites evolution over time needed to make an informed evaluation of integrity. 5 METROPOLITAN PLANNING GROUP B10.Period of Significance: The period of significance identified by the author appears to be justified as it includes the Ball Park’s initial construction and takes into account the continued use of the site as was originally intended. B10.Historic Context (labeled as Significance in HRE): The evaluation prepared by EBI provides an abbreviated context. The context, while it provides a good general overview, does not provide the detail needed to thoroughly consider potentially historic Little League ball parks. There is little information related to the relevancy of the site being modeled after Stanford’s sunken diamond field. The report states that it is only nominally similar because the sunken diamond at Middlefield Ball Park is only 3-4 feet below grade, however no further information as to the depth of the Stanford sunken diamond is provided. It is also unclear as to what the relevancy of this comparison is —are sunken diamonds common or relatively rare? There is also little information provided related to the architecture and design of the stadium and its components. An expanded discussion of the sites relative importance would be helpful. With little context of how the Ball Park does or does not compare to other Little League Ball Parks of that time it is not possible to discern whether it is a good example of a type, or, rather typical and not of elevated significance. As mentioned above, the absence of a discussion of the original design of the Ball Park makes it difficult to establish a baseline through which to consider alterations that have taken place over the past 62 years. Integrity: The author of the HRE evaluated the property against the seven aspects of integrity inclusive of location, design, setting, materials, workmanship, feeling, and association. The HRE notes that the Ball Park retains integrity of location, feeling and association as it has not moved, continues to be used a Little League Ball Park, and its configuration has not changed so substantially that it has lost is associative value. However, the evaluation concludes that the site no longer retains integrity of design, materials or workmanship largely as a result of the renovations that took place in 2004. The HRE finds that the Ball Parks character defining features are the baseball diamond, fencing, dugout, pitcher’s mound, bleachers, flagpoles, scoreboard and snack bar/office building. Historical records and buildings permits consulted during the evaluation indicate that the following alterations were performed on or after 2004: wood bleachers replaced with aluminum bleachers; pitcher’s mound replaced with synthetic mound; replacement of flagpoles with new flagpoles; replacement of original scoreboard with new scoreboard; replacement of chain link fence. The HRE concludes that based on the alterations performed during the 2004 renovation, the Ball Park no longer retains sufficient integrity with which to convey its significance. M-Group Evaluation: M-group ultimately agrees with EBI’s conclusion that the site does not retain sufficient integrity to communicate significance. However, the path that led us to that conclusion is slightly different than the methodology outlined in the EBI HRE. The EBI evaluation emphasizes the importance of the original materials and when considering character defining features (essential features) does not identify the spatial organization, topography, site design, architectural design, or viewshed as character defining features such that their alteration or reconfiguration would constitute a significant impact to integrity. 6 METROPOLITAN PLANNING GROUP As a Little League Ball Park that is defined because it adheres to those design requirements prescribed by the National Little League Organization M-Group believes that more emphasis should have been placed on the design and spatial organization and less on materials— which while important, are perhaps not the most important elements needed to convey the site’s significance. Despite the different methodology, M-Group did reach similar conclusions as EBI Consulting. See M-Group’s evaluation of integrity below. 1. Location: M-Group staff agrees that as the site remains in the same historic geographical position it retains integrity of location. 2. Design: Design refers to the organization of space, proportion, scale, technology, ornamentation and materials used. Design is reflective of function, technology and aesthetic trends of a respective time period. In order for integrity of design to be retained the resource should retain the original structural systems, massing, spatial arrangement, texture and color of materials, detailing and arrangement and type of vegetation or, at the least, a majority of those elements. It is understood that since 1952, the Baseball Park has undergone alterations that include slight changes to the configuration and topography of the field, introduction of chain link fencing, expansion of the backstop, and replacement of materials in addition to those outlined in the letter from the Palo Alto Little League President (see above). The cumulative impact of all of these changes has resulted in a loss of integrity. Had the changes been limited to replacement of some materials, it is not expected that the site would see a complete loss of integrity but these changes, taken together, have altered the original design intent to such an extent that the integrity was lost. 3. Setting: Setting refers to the character of the place in which the property played its historical role. Setting often reflects the basic physical conditions under which a property was built and the functions it was intended to serve. Like many other Little League Ball Parks, the Middlefield Ball Park was built in a suburban environment and intended to serve the surrounding community. While development has continued to increase and the adjacent neighborhoods have become denser the overall setting of suburban land uses of single family homes and associated uses continues. Since the basic land uses and environment has not significantly departed from what it was in 1951, the property retains integrity of setting 4. Material: Materials are the physical elements that were combined in a particular pattern or configuration to form a historic property. The choice and combination of materials reveal the preferences of those who created the property and indicate the availability of particular types of materials and technologies. In order to retain integrity a property should retain the key exterior materials dating to the period of significance. The importance of materials may vary by resource type. For instance, it is M-Group’s opinion that as a designed landscape, the “essential elements” or “character defining features” include design, spatial organization, and association; the importance of materials is secondary. Nevertheless, loss of historic materials does have a deleterious effect on the sites ability to convey its significance. The renovation of the Ball Park that took place in 2004 changed many of the historic materials, and according to the letter from the President of the Palo Alto Little League, many changes preceding 2004 did the same. The 7 METROPOLITAN PLANNING GROUP many material replacements undertaken, including the replacement of bleachers with aluminum bleachers, replacement of the pitcher’s mound with synthetic mound and replacement of the scoreboard removed “key” exterior materials and therefore, the site does not retain integrity of materials. 5. Workmanship: Workmanship is important because it can furnish evidence of the technology of a craft, illustrate the aesthetic principles of a historic or prehistoric period, and reveal individual, local, regional, or national applications of both technological practices and aesthetic principles. The sunken diamond, in addition to the structural and architectural components of the site, all reflect workmanship. However, as stated above, the cumulative effect of alterations to the design and materials and the introduction of unoriginal features have impacted the site to the extent that the aesthetic principles portrayed by the original workmanship are not easily interpreted in the present day. Therefore, the site does not appear to retain integrity of workmanship. 6. Feeling: Feeling is a property's expression of the aesthetic or historic sense of a particular period of time. It results from the presence of physical features that, taken together, convey the property's historic character. The introduction of new materials and site elements, extension of the chain link fence, extension of batters cage, replacement of bleachers have substantially altered the feeling of the site. The new amenities and introduction/ expansion of fencing in addition to the other site alterations identified by the Palo Alto Little League have altered the property to such an extent that it no longer strongly conveys the feeling of a 1950s Little League Ball Park as it would have during its earlier iteration. The property lacks integrity of feeling. 7. Association: Association is the direct link between an important historic event or person and a historic property. A property retains association if it is the place where the event or activity occurred and is sufficiently intact to convey that relationship to an observer. The ballpark continues to serve as a Little League Ball Park and gathering place and therefore retains integrity of association. M-Groups Finding of Integrity: A property that has lost some historic materials or details can be eligible if it retains the majority of the features that illustrate its style in terms of the massing, spatial relationships, proportion, pattern of windows and doors, texture of materials, and ornamentation. However, because the site no longer retains the majority of essential features that characterized the site including the original design, spatial arrangement, topography, original small scale features, and materials, it can be concluded that the site does not retain overall integrity. Therefore, M-Group concurs with EBI’s conclusion that the site does not retain integrity. 8 METROPOLITAN PLANNING GROUP National Register Eligibility/ California Register Eligibility Criterion A/1: Contribution to broad patterns of history/ associated with the broad patterns or with events that have made a significant contribution to the local or regional history or the cultural heritage of California. The HRE acknowledges that the Ball Park was constructed at a time when Little League baseball was growing in popularity. However, it is noted that the Middlefield Little League Ball Park is not the oldest Little League Ball Park in the United States or California and therefore concluded that the property does not meet the eligibility criteria to be significant under Criterion A of the National Register or Criterion 1 of the California Register. M-Group’s evaluation: To determine whether a potential resource is in fact eligible under NR Criterion A or California Register Criterion A, the property must not only have an obvious nexus to broad patterns of history, but must also show one or more of the following: it is one of the first of its type, it is of a model that influenced other properties; it is of a design that introduced a new concept; or it is distinctive from other similar types. The reasoning outlined in the EBI report highlights the fact that this property, as valuable as it may be to the community, is not so distinct such that it is eligible under Criterion A/1. The Ball Park was not the first Little League Ball Park, did not clearly influence other properties, and did not introduce a new concept. Therefore, M-group staff concurs with the findings that the Middlefield Ball Park is ineligible under Criterion 1/A Criterion B/2: Association with a person important in National History or associated with the lives of persons important to local, state, or national history. The HRE finds that no important persons were associated with the baseball to such an extent as to deem it significant based on that association. The ballpark was deemed not eligible under Criterion B of the National Register and Criterion 2 of the California Register M-Group Evaluation: M-Group staff concurs with the HRE finding that no important figure exhibited such a strong association connection with the site so as to deem it significant under Criterion B/2. Staff agrees that visitation to the site by important figures does not constitute a strong association. Criterion C/3: Embodies the distinctive characteristics of a type, period, method of construction or style of architecture, or represents the works of a master or represents a distinguishable entity under whose components have individual distinction. The significance evaluation indicates that the Ball Park is of utilitarian design and conforms to the measures prescribed by the National Little League Association as the bases are located approximately 60 feet apart and the distance from home plate to the pitcher’s mound is approximately 46 feet. It is noted that the Ball Park was designed by Morgan Steadman and inspired by Stanford’s Sunken Diamond Field. Today it appears that the field is approximately 3-4 feet below grade which clearly gives a nod to the Stanford Sunken Diamond Stadium, but the extent to which it is sunken makes it appear not to be an 9 METROPOLITAN PLANNING GROUP exact replica. It is further noted that the Middlefield Ball Park is not the only Little League ball field incorporating this design element as the Henry J Lamade Stadium in Pennsylvania also incorporated this measure into the design of the stadium. M-Group Evaluation: M-Group concurs with EBI’s finding that the property is not eligible for listing on the National or California Register based on architectural merit. It is agreed that while the site embodies the distinctive characteristics of a type, due to the many alterations, it does not serve as an especially good example of its type relative to other examples. Furthermore, we concur that the architect, while notable for his work on residential architecture in California, is not well-known for his recreational architecture or landscape design so as to be considered a master. M-Group concurs with the HRE’s conclusion that the site is not eligible under NR Criterion C or CR Criterion 3. Criterion D/4 The HRE concludes that “the building” or site, is not expected to yield information important to prehistory or history. The HRE notes that in order for a potential resource to be considered eligible under Criterion D/4 it must be shown that they “are, or must have been, the principal sources of information.” It is concluded that such a statement does not apply to the site in question. M-Group Evaluation: M-Group concurs that the above conclusion is correct in assuming that the Middlefield Baseball Park does not exhibit significance based on its ability to yield information. The support for this conclusion is not readily discussed in the HRE, however, it can be discerned that this is based on the fact that there are so many like examples; the Middlefield Ball Park is not singular in its ability to tell the story of Little League Baseball. M-Group therefore, concurs with the conclusion drawn in the HRE. Local Register Criteria: The original HRE did not consider the Baseball Park against the Local Criteria as described in the Palo Alto Municipal Code 16.69.040. Per the City’s request M-Group has performed an abbreviated evaluation of the resource under the Local Register Criteria. For those items where the intent of the criterion is essentially the same as those listed under the National Register and California Register the discussion may reference the earlier discussion to avoid redundancy. Please find the evaluation below: 1. The structure or site is identified with the lives of historic people or with important events in the city, state or nation. It is understood that the site has played host to professional baseball players including Ty Cobb. However, the mere fact that an important figure visited the site and/or attended an event on site would not qualify the site a historic resource based on the fleeting association it had with an important figure. To qualify as significant under this criterion it would have to be shown that there was a stronger nexus between an important figure and the site. The Middlefield Ball Park does not appear to be eligible under Criterion 1. 2. The structure or site is particularly representative of an architectural style or way of life important to the city, state or nation. 10 METROPOLITAN PLANNING GROUP The Middlefield Ball Park as mentioned earlier is representative of a Little League ball field. Records indicate that in 1952 when the ball field was constructed there were approximately 1500 other Little League Ball Parks constructed at the same time. On a larger scale, the baseball park is not unique and not particularly representative of a style or way of life on a national or regional scale. Locally, the Ball Park could be considered representative of an architectural style or way of life important to the City had it not been for the cumulative loss of integrity resulting from the alterations made over the previous 64 years. Based on the lack of integrity, the site does not appear to be eligible under Criterion 2. 3. The structure or site is an example of a type of building which was once common, but is now rare. The Little League Ball Park is not a rare example of a type based on the fact that it is very similar to approximately 6500 other Little League Ball Parks located throughout the United States. The site does not appear eligible under Criterion 3. 4. The structure or site is connected with business or use which was once common but is now rare. Little League baseball remains a thriving recreational pursuit and would not be considered rare. The property is not considered significant under Criterion 4. 5. The architect or building was important. The architect, while notable for his work on residential architecture in California, is not well- known for his recreational architecture or landscape design so as to be considered a master. It does not appear that the site is eligible based on its association with Morgan Stedman. 6. The structure or site contains elements demonstrating outstanding attention to architectural design, detail, materials or craftsmanship. The Site adheres to the measures prescribed by the Little League organization and does not exhibit outstanding attention to architectural design, detail, materials, or craftsmanship. Further, the site lacks sufficient integrity to convey original attention to detail, design etc. The site does not appear eligible under Criterion 6. For the reasons stated above, M-Group finds that the Middle Field Ball Park is not eligible for listing on the Local Register of Historic Resources. Conclusion M-Group concurs with EBI Consulting’s findings that the Middlefield Ball Park does not meet the eligibility criteria for listing on the National Register of Historic Places or the California Register of Historic Places. Arguably, the Middlefield Ball Park is associated with broad patterns of National, State and local history as a manifestation of the growth of Little League Baseball. However, this in and of itself does not mean that the property is eligible for listing on the National or State register. It must further be determined that the property is one of the first of its type; of a design that influenced other like developments (ball parks); of a design that introduced a new concept; and/or distinctive from other similar types. The Middlefield Ball Park, while associated with the growth of little league baseball, does 11 METROPOLITAN PLANNING GROUP not exhibit singular importance relative to the other ball parks dating to that period and therefore is found to be ineligible for listing on either the NRHP or CRHR. Furthermore, review of the site against the Local Designation Criteria indicate that, of the 6 criteria, the most applicable criterion would be number 2, which requires that the site be particularly representative of an architectural style or way of life important to the city, state or nation. While it could be argued that the site is eligible based on its importance to the local way of life, the site does not retain sufficient integrity at this point to be considered under this criterion due to the cumulative loss of integrity. M-Group is in agreement with EBI’s findings that the Ball Park no longer retains sufficient integrity through which to convey its significance. The extent of alteration that has taken place since initial construction in 1951 has significantly degraded the level of integrity. The basic test for integrity is whether a historical contemporary would recognize the property as it exists today. Based on the alterations to existing site components and introduction of new site features including the chain link fence, expanded dugout, and bleachers amongst others, it is not expected that someone familiar with the site in 1951 would be able to easily recognize the property in the present. Therefore, M-Group agrees with EBI’s finding that the Middle Field Ball Park is not eligible for listing on the National or California Register. M-Groups supplementary review further indicates that the property is not eligible for listing on the Local Register as it fails to retain sufficient integrity necessary to communicate its significance. SUMMARY OF FINDINGS M-Group concurs with the conclusions drawn by EBI Consulting, but has the following concerns related to the evaluation:  The characterization of the resource as a structure is incorrect as it should be considered a district or site.  The evaluation does not clearly state the “essential elements” of the property which are necessary to inform the significance evaluation  The evaluation does not adequately describe the site as it initially existed which makes it difficult to discern how subsequent alterations may or may not have impacted the integrity.  The significance discussion should precede the integrity discussion as a finding of significance will determine the most important aspects of integrity as they relate to the property and will generally inform the integrity discussion. 12 METROPOLITAN PLANNING GROUP Please do not hesitate to contact me with any questions or concerns related to the review. Sincerely, Lilly Bianco, MHP M-Group | Preservation Specialist 1303 Jefferson St. Suite 100-B Napa, California 94559 P: 707-259-1790 13 METROPOLITAN PLANNING GROUP SOURCES REFERENCED Phone Conversation with Steve Saiger of Palo Alto Historical Society, October 9, 2014. Letter from Kristin Foss, President, Palo Alto Little League on behalf of the Palo Alto Little Board to Palo Alto Historic Resources Board, October 2014. Little League Baseball.2014. http://www.littleleague.org/learn/about/historyandmission.htm. Accessed October 10, 2014. "Oh Mom! Can I go out to play ball?" SF Chronicle Sporting Green, June 6, 1953, page 6H. 14 METROPOLITAN PLANNING GROUP Appendix A. Site Photos Figure 1 Clubhouse/ Concession Stand viewed from east Figure 2 Clubhouse Concession Stand viewed from North 15 METROPOLITAN PLANNING GROUP Figure 3 Field viewed from south Figure 4 Bleachers viewed from southeast 16 METROPOLITAN PLANNING GROUP Figure 5 Dugout viewed from southeast Figure 6 Image showing site topography “sunken field” 17 METROPOLITAN PLANNING GROUP Figure 7 View of field as seen from east bleachers Figure 8 View as seen from western bleachers 18 METROPOLITAN PLANNING GROUP Figure 9 Signage located on Clubhouse City of Palo Alto (ID # 5214) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Naming of the Mike Harding Pedestrian/Bicycle Bridge Title: Adoption of a Resolution Concurring with the City of Menlo Park for the Naming of the Mike Harding Pedestrian/Bicycle Bridge at San Mateo Drive (Menlo Park) From: City Manager Lead Department: Community Services Recommended Motion Staff recommends that Council consider the following motion: Council shall adopt a resolution concurring with the City of Menlo Park for the renaming of the San Mateo Drive Pedestrian/Bicycle Bridge as the Mike Harding Pedestrian/Bicycle Bridge. Recommendation Staff recommends that Council adopt the attached resolution (Attachment A) concurring with the City of Menlo Park for the renaming of the San Mateo Drive Pedestrian/Bicycle Bridge as the Mike Harding Pedestrian/Bicycle Bridge. Background In 1976, the City of Palo Alto and the City of Menlo Park cooperated in the design and construction of a pedestrian/bicycle bridge spanning San Francisquito Creek and connecting San Mateo Drive in Menlo Park to pedestrian/bicycle trails leading to Sand Hill Road in the vicinity of Clark Way in Palo Alto. In accordance with an agreement, dated May 25, 1976, the bridge is jointly owned and maintained by the City of Palo Alto and the City of Menlo Park. The land on the Palo Alto-side of the bridge is owned by Stanford University, which has issued an easement to the City of Palo Alto. On February 11, 2014, at the urging of the Silicon Valley Bicycle Coalition and friends of former Menlo Park Bicycle Commissioner Mike Harding, the Menlo Park City Council approved a request by their staff to rename the San Mateo Drive Bridge in honor of Mike Harding. In October 2014, Emma Shlaes of the Silicon Valley Bicycle Coalition contacted the City of Palo Alto’s Transportation Division, requesting that the City of Palo Alto concur with Menlo Park in the renaming of the bridge (Attachment B). City of Palo Alto Page 2 While the City of Palo Alto has policies for the naming of City streets (Policy 1-16) and for land and City facilities on City-owned property (Policy 1-15), as the City of Menlo Park initiated the process of the renaming of this jointly-owned and -maintained bridge and has adopted a resolution for the renaming of the bridge in honor of Mike Harding (Attachment C), staff recommends that the City of Palo Alto concur with the action of the City of Menlo Park as a fitting tribute to this regionally recognized bicycle advocate and volunteer. Discussion According to the petition from the Silicon Valley Bicycle Coalition, Mike Harding was an active member of the Coalition for almost twenty-five years. “He regularly participated in (the) Peninsula Committee and was a tireless and caring advocate for bicycle issues in the area. His passion for bicycling was expressed through many rides and competitions, as well as a ride leader for the Western Wheeler’s Club, in service as a Menlo Park Bicycle Commissioner, and as a member of the City/County Association of Governments of San Mateo County Bicycle and Pedestrian Advisory Committee.” Resource Impact The renaming of the San Mateo Drive Pedestrian/Bicycle Bridge would have negligable financial impact to the City of Palo Alto. There are no current signs on the bridge which would need to be replaced as a result of the renaming. The City of Menlo Park will bare responsibility for the placement of a sign honoring Mike Harding. Minor expenses would be necessary for staff from Police, Fire and Information Tecnology to relabel emergency run maps and GIS maps of the bridge and pedestrian route. There are no on-going costs for this re-naming. Policy Implications There are no policy implications. Environmental Review The adoption of the resolution for the naming of a facility does not meet the definition of a “project” set forth in section 21065 of the California Public Resources Code and is therefore not subject to the California Environmental Quality Act (CEQA). Attachments: Resolution for the Concurrence of Naming the Mike Harding Pedestrian/Bicycle Bridge Letter of Support – Silicon Valley Bicycle Coalition, dated April 2, 2014 City of Menlo Park Staff Report 14-026: Consideration to Rename the San Mateo Drive Bike bridge in Honor of Mike Harding; February 11, 2014, Attachments:  Attachment A - Resolution for Naming of the Mike Harding Bicycle Bridge (DOCX)  Attachment B - Silicon Valley Bicycle Coalition Endorsement (PDF) City of Palo Alto Page 3  Attachment C - City of Menlo Park Staff Report 14-026 regarding naming of the Mike Harding Bicycle Bridge (PDF) ***NOT YET APPROVED***** 141014 mf 00710482 1 Resolution No. Resolution of the Council of the City of Palo Alto, California To Jointly Approve with the City of Menlo Park the Renaming of the San Mateo Drive Bike Bridge in Honor of Mike Harding A. The San Mateo Drive Bike Bridge spans San Francisquito Creek between Menlo Park and Palo Alto. Under an agreement, dated May 25, 1976, between the city governments, each city holds a right-of-way to the centerline of the Creek. B. Stanford University, which maintains the pedestrian and bicycle path and owns the underling lands, has granted the City of Palo Alto an 8-foot easement running from Sand Hill Road to the Bicycle Bridge. C. Mike Harding served as a member of the City of Menlo Park’s Bicycle Commission. He was an active member of the Silicon Valley Bicycle Coalition for almost 25 years and, according to the Coalition, he was instrumental in the creation of the San Mateo Drive Bike Bridge. D. On February 11, 2014, the Council of the City of Menlo Park approved a motion to rename the San Mateo Drive Bike Bridge in honor of longtime resident, Mike Harding. Due to the shared ownership of the Bicycle Bridge, the Menlo Park city council acknowledged that the bridge cannot be renamed without the concurrence of the City of Palo Alto. E. The City of Palo Alto now wishes to support, and it therefore joins, the City of Menlo Parkin in the renaming of the San Mateo Drive Bike Bridge in honor of Mike Harding. The Council of the City of Palo Alto RESOLVES, as follows: SECTION 1. The Council hereby accepts the request of the Council of the City of Menlo Park to rename, and the City of Palo Alto hereby joins the City of Menlo Park in renaming, the San Mateo Drive Bike Bridge in the memory and honor of Mike Harding, a longtime resident and commissioner of the City of Menlo Park. The City Manager or his designee is authorized to consult with City of Menlo Park staff to effectuate the purpose and spirit of this resolution. // // ***NOT YET APPROVED***** 141014 mf 00710482 2 INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Asst. City Attorney City Manager ___________________________ ____________________________ Director of Community Services Director of Administrative Services OFFICE OF THE CITY MANAGER Council Meeting Date: February 11, 2014 Staff Report #: 14-026 Agenda Item #: F-1 CONSENT CALENDAR: Consideration to Rename the San Mateo Drive Bike Bridge in Honor of Mike Harding RECOMMENDATION Staff recommends that the City Council consider a request to rename the San Mateo Drive Bike Bridge in honor of Mike Harding, and if approved, direct staff to contact and work with the City of Palo Alto to obtain its concurrence. BACKGROUND At the January 14, 2014, City Council meeting, former mayor Steve Schmidt requested that the City Council consider renaming the San Mateo Drive bike bridge in honor of longtime resident and former commissioner, Mike Harding. Since the initial request, the City has also been contacted by Transportation Commissioner Adina Levin (although she was not representing the Commission), Silicon Valley Bicycle Coalition and numerous Menlo Park residents, many of whom live on San Mateo Drive to support honoring Mr. Harding by renaming the Bridge. The bike bridge is jointly owned and maintained by the cities of Menlo Park and Palo Alto according to an agreement dated May 25, 1976. On the Menlo Park side of the bridge, the City of Menlo Park has right of way to the centerline of the creek. On the Palo Alto side, the underlining land is owned by Stanford to the center line of San Francisquito Creek, however the land is within the Palo Alto city limits and Stanford has provided Palo Alto an easement to construct and maintain the bridge. Stanford has also given Palo Alto an 8-foot floating pedestrian/bike easement from Sand Hill Road to the bridge with Stanford agreeing to maintain the pedestrian/ bike path. ANALYSIS The City Council does have a policy for the naming and/or changing names of facilities. The policy was adopted in February 1986 and last reviewed in January 1997, with no changes made at that time. AGENDA ITEM F-1 PAGE 71 Staff Report #: 14-026 Due to the shared ownership of the bike bridge, it is important to note that renaming the entire bridge (in both directions) would require the additional approval of the City of Palo Alto. Due to the recent nature of the request, staff has not yet been able to conduct a complete analysis of the estimated costs, consult with staff from the City of Palo Alto, or fully research and record the totality of Mr. Harding’s contributions to the community. This work will continue based on the outcome of the City Council’s discussion and direction. IMPACT ON CITY RESOURCES Fiscal impacts to rename the bridge would include installing signage and updating existing reference materials. These costs are unknown at this time, but would likely be minimal and could be absorbed into the existing budget. POLICY ISSUES As the existing policy was previously adopted by the City Council, the City Council alone has the ability to affirm, modify, or waive the policy in part or in its entirety. In the last several years, the City Council has approved the recommendation of the Parks and Recreation Commission to waive aspects of the naming policy in order to name the new Arrillaga facilities after the John Arrillaga family, due to the major donations from Mr. Arrillaga that funded their construction. PUBLIC NOTICE Public Notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting. ATTACHMENTS A. City Council Policy for Naming and/or Changing the Name of Facilities B. Jurisdictional map of the existing San Mateo Drive Bike Bridge Report prepared by: Clay Curtin Assistant to the City Manager PAGE 72 City of Menlo Park City Council Policy Department City Council Page 1 of 1 Effective Date February 25, 1986 Subject Naming and/or Changing the Name of Facilities Approved by Procedure # CC-86- Department Head City Manager PURPOSE AND SCOPE From time to time the City has the opportunity to name a new facility, or is requested to change the name of a previously designated park, playground, building or other unit under the City’s jurisdiction. In order to formalize the City’s consideration of these requests, and to provide better guidelines to the public, the City does hereby adopt the following policy guidelines for the naming of facilities. 1. It shall be the policy of the City not to change the name of any existing recreation and park facility, particularly one whose name has City or national significance, unless there is the most extraordinary circumstances of City or National interest and no other new facility can so be designated. 2. The existing place names within Menlo Park shall be deemed to have historic significance to the City. The City will modify existing names only with the greatest reluctance and only to commemorate a person or persons who have made major, overriding contributions to the City and whose distinctions are as yet unrecognized. 3. The Park and Recreation Commission, after considering inputs from the community, will recommend to the City Council names for new parks, playgrounds, athletic fields, paths, tennis courts, flower beds, buildings and miscellaneous facilities. The naming will recognize: A deceased person (no sooner than five years after death, ethnic or other national or community groups not yet honored in some fashion, who have made significant contributions to the City and/or the Park and Recreation and have not been previously honored in a meaningful way by the City. 4. It shall be the policy of the City generally to encourage plaques commemorating donations including tree memorials, horticultural collections or plant materials. 5. Where appropriate to the facility, the City encourages the donation of memorial benches. 6. At those facilities having recreation buildings, the City from time to time may authorize placing of a memorial plaque inside a building when that facility is closely identified with a person or group, but the policy of the City is to retain the historic name of the facility. 7. For other than naming a new facility, it is the policy of the City to take no action until at least six months from the receipt of a suggested name change or the adoption of these policies. (Council took a look at this policy again on Jan. 27, 1998 with no changes) ATTACHMENT A PAGE 73 THIS PAGE INTENTIONALLY LEFT BLANK PAGE 74 80 60 1151 101 99 1235 205 1165 1159 248 1161 200 150 1158 120 100 1150245 225 1168 265 1140 SA N M A T E O D R BAY LAUREL DR CITY OF MENLO PARKLOCATION MAPSAN MATEO DRIVE BIKE BRIDGE ´ Area orInterest DATE: 2/6/14 SCALE: 1" = 200' SHEET: 1 Bike Bridge-Shared Ownership Between Menlo Park and Palo Alto Bike Paths County Boundary City Limits Lands of Stanford City of Menlo Park City Limits(County Boundary) City of Palo AltoCity Limits(County Boundary) Sa n F r a n c i s q u i t o C r e e k ATTACHMENT B PAGE 75 THIS PAGE INTENTIONALLY LEFT BLANK PAGE 76 Carnahan, David OIJY Of PALO ALJQ. QA €1TY etEPtK'S filFFie€ From: Ken Holloway <ken_holloway@netzero.com> 14 OCT 31 AM a: I' Sent: Thursday, October 30, 2014 9:07 PM To: Council, City Subject: San Mateo Dr./San Francisquito Creek Bike/Ped Bridge Dear Members of Palo Alto City Council: I would like to add one more voice in support of naming the San Mateo Dr./San Francisquito Creek Bike/Ped Bridge after Mike Harding. Mike has been a tireless advocate for bicycling infrastructure and safety. Menlo Park has already said yes, I would like to urge you to do the same. Thank you, Kenneth Holloway Stop Suffering From Nerve Pain Clinical studies find natural formula to be highly effective. Try it FREE* NeuropathyTreatmentGroup.com Carnahan, David From: Sent: To: Subject: G:ITY CJF PALO ALT@, QA SlifV itERit'S lrFief! pedro@lcintra.com on behalf of Pierre Cintra <pi1'41£iin..!~·c<~Jft.: f:)l Monday, November 03, 2014 11:15 AM Council, City Naming of the San Mateo Biking and walking bridge after Mike Harding I'm currently a resident of Menlo Park and I was previously a resident of Palo Alto. I commute to work on my bike every day and I enjoy recreational bike rides during my free time. I'm a strong supporter of naming the San Mateo Biking and walking bridge after Mike Harding. He was a role model for a number of Bay Area cyclists, myself included, and honoring him will also reflect well on a large number of people who had the pleasure to interact with Mike over a number of years. Thanks in advance for considering my suggestion, Pierre Cintra 907 Timothy Lane Menlo Park, CA 94025-1726 Carnahan, David GJ;TY liJF PALO ALTQ. uA §NY Gl fRK'S ORti'Jft From: Sent: Karen Davis <karen.k.davis@stanfordalumni.org> 1'4 NOV-~ PH 6: 5~ Tuesday, November 04, 2014 6:18 PM To: Council, City Cc: Karen Davis Subject: I support the naming of the San Mateo Drive bike bridge after Mike Harding To the Palo Alto City Council: I strongly support the proposal to name the San Mateo Drive bicycle I pedestrian bridge after Mike Harding. I knew Mike for more than 30 years in the Western Wheelers Bicycle Club. He was very active in the club, both as a participant and as a leader. I also knew him from his numerous activities for bicycle advocacy in San Mateo County, and for those contributions it would be a fitting tribute to name the bridge after him. He was a delightful person. I have greatly benefited from the bridge. I commuted by bicycle from Redwood City to Stanford University over the bridge for 15 years, rain or shine, day or night. Now retired, I still frequently use it to get to Stanford and Palo Alto. Karen Davis 152 Oakfield A venue Redwood City, CA 94061 650 365-9462 Carnahan, David From: Sent: To: Subject: Bob Page <bppage@sbcglobal.net> Wednesday, November 05, 2014 10:54 AM Council, City San Francisquito Bike/Ped Bridge naming Palo Alto City Councilmembers: ~tTY ©F PALO ALTO. C:A en y ®' E'!K'S 9Ei1Glt f 4 NOV -5 AH 10: 51 I urge you to approve the naming of the San Mateo Drive/San Francisquito Bike/Ped Bridge to recognize and honor the long-time efforts of Mike Harding to make the Mid-Peninsula a safe environment for healthy, convenient non-motorized transit. This critical bridge linking two cities and two counties is heavily used by bicyclists and pedestrians. Mike was a champion for such facilities. Like Ellen Fletcher, Mike worked tirelessly to ensure that local and regional infrastructure would be provided and maintained to facilitate and encourge safe and convenient, local and regional, travel by bike and foot. Such efforts deserve public recognition and commemoration to inspire others to work for the well-being and health of others and the environment. Thank you for your consideration, Robert Page 2803 Carson Street Redwood City, CA 94061 City of Palo Alto (ID # 5156) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Approval of Contract for Employee Assistance Plan Title: Approval of Contract With Concern: EAP for the City of Palo Alto's Employee Assistance Plan, in the Amount of $2,800.60 per Month for up to Sixty Months for a Total Amount not to Exceed $168,036 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that City Council approve a contract with Concern:EAP in the amount of $2,800.60 per month for up to sixty months for the City’s Employee Assistance Plan in a total amount not to exceed $168,036, provided the contractor is responsive to the City’s needs and the quality of the contractor’s work is acceptable during the term of the contract. Background The City has provided employees and their dependents with Employee Assistance Plan (EAP) benefit since 1982. The EAP provides employees with confidential personal counseling, work and family related issues, stress, childcare issues, eldercare, substance abuse, etc. In addition EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. The EAP is designed to promote the well-being and welfare of City employees and their families, as well as to support on-the-job productivity. Discussion The City completed a competitive solicitation process through our benefits broker, Wells Fargo Insurance Services. Below are the details of the solicitation for the EAP benefit. Proposal Description Employee Assistance Plan (EAP) Services Proposed Length of Project 66 months Number of Proposals Mailed 5 Total Days to Respond to Proposal 20 Pre-proposal Meeting Date N/A City of Palo Alto Page 2 Number of Company Attendees at Pre- proposal Meeting N/A Number of Proposals Received: 4 Company Name Location (City, State) Selected for oral interview? 1. CONCERN:EAP Mountain View, CA N/A 2. Claremont Alameda, CA N/A 3. MHN San Rafael, CA N/A 4. OPTUM Golden Valley, MN N/A Range of Proposal Amounts Submitted $26,657 to $32,771 annually Upon completion of the solicitation an evaluation committee consisting of the Chief People Officer, Assistant Director of People Strategy & Operations and the Manager of Employee Benefits reviewed the proposals. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the Request for Proposal. The criteria included: types of services offered; quality of services offered; customer service capability; online tools; communication and marketing materials; statistical reports; contract length; and costs. Concern:EAP, the City’s current provider, was selected again due to their ability to provide enhanced and innovative services at a competitive cost. The firm has demonstrated the ability to provide immediate critical incident response when needed and excellent work-life services. Concern:EAP provides unlimited practical advice through telephonic consultation with managers, timely referral information and educational literature for a wide range of needs including child care and elder care, personal counseling, and financial and legal counseling. In addition, their website (www.concern-eap.com) continues to provide cutting-edge assessment tools and resources for information, such as one-hour seminars on Emotional Intelligence and Conquering Roadblocks to Success. These sessions have been well attended and have highlighted the positive response to Concern:EAP’s new initiatives to provide a healthy and resilient workplace. Additionally, Concern:EAP also provides quarterly utilization reports that reflect the services used by the City employees and their dependents. Utilization of EAP services among employees has continually increased over the three-year period since CONCERN:EAP was previously selected. This is significantly higher than the national average for similar programs. Labor union representatives commented that their members have expressed that CONCERN:EAP provides good services and they have not received any complaints about the plan. City of Palo Alto Page 3 Resource Impact Funding for EAP services is budget in the General Benefits Fund. There is sufficient funding in the Fiscal Year 2015 budget. The funding for this contract for subsequent fiscal years is subject to annual appropriation of funds. Concern:EAP has proposed a rate of $2.68 per employee per month, which represents a competitive proposed cost and a decrease from the current cost of $2.74 per employee per month. The rate will be guaranteed for sixty (60) months. This rate provides for 3 EAP sessions for each miscellaneous employee and up to a maximum of 10 EAP sessions per employee per year for public safety employees. Attachments:  Attachment: Attachment A - C15156644 Contract with ConcernEAP (PDF) Professional Services Rev. Feb. 2014 1 CITY OF PALO ALTO CONTRACT NO. C15156644 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CONCERN: EMPLOYEE ASSISTANCE PROGRAM FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of October, 2014, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CONCERN: EMPLOYEE ASSISTANCE PROGRAM, a California corporation, located at 1503 Grant Road, Suite #120, Mountain View, CA 94040 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide employee assistance services (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2019 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 2 SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed One Hundred Sixty Eight Thousand Thirty Six Dollars ($168,036.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”. SECTION 5. INVOICES. In order to request payment, each month, CITY shall provide CONSULTANT with an accurate headcount of all employees covered by the plan, prior to CONSULTANT’S submittal of invoice. CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (If applicable, including an identification of personnel who performed the services, hours worked, hourly rates, rates, and reimbursable expenses), based upon the employee headcount and CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 3 and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Ann Wagner as the Account Executive to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 4 The City’s project manager is Khashayar Alaee, PSOD Recruitment & Development Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650)329-2230. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 5 ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 6 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 7 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements:  All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks.  Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office.  Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 8 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 9 CITY OF PALO ALTO APPROVED AS TO FORM: CONCERN: EMPLOYEE ASSISTANCE PROGRAM Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A CEO, CONCERN: EAP Professional Services Rev. Feb. 2014 10 EXHIBIT “A” SCOPE OF SERVICES Consultant shall provide Employee Assistance Services plan as described below: The Plan shall be a specialized health care service plan formed pursuant to the provisions of the KnoxKeene Health Care Service Plan Act of 1975, as amended, (“Knox-Keene Act”). The Plan intends to provide assistance to businesses and public organizations in the design, implementation and maintenance of employee assistance programs for the employees of such businesses and public organizations. I. BENEFIT SCHEDULE The Plan shall provide the following Covered Services: A. EAP Assessment, referral to community resources and Medical Emergency Care, and short-term counseling. The Plan offers counseling services for a wide range of personal problems and immediate response for Crisis situations. City employee and his or her Covered Dependents shall be limited to a maximum of Three (3) Visits for each problem per twelve-month, beginning with the date of the case opening. Fire and Police employee and his or her Covered Dependent shall be limited to a maximum of Ten (10) Visits for each problem per twelve-month period, beginning with the date of the case opening. For the purpose of this provision, the word “problem” means a specific type of matter, situation or issue of concern to a Member for which the Member requests EAP services for purposes of obtaining assistance in arriving at a solution. If a Member is referred for unsatisfactory work performance by means of a Supervisor Referral, or if a Member or Covered Dependent is assessed as having a chemical dependency problem, the maximum number of visits shall be ten (10). CONCERN provides counseling for the following “problem” issues: (i) Marital and family problems, (ii) Difficulty with relationships, (iii) Emotional distress, (iv) Job stress, (v) Communications or conflict issues, (vi) Substance abuse issues and (vii) Loss and death issues. B. The Plan provides a problem-focused form of individual or family outpatient counseling that (i) Seeks resolution of problems in living rather than basic character changes; (ii) Emphasizes the Member’s skills, strengths and resources; (iii) Involves setting and maintaining realistic goals that are achievable in a one to five month period; and (iv) Encourages the Member to practice behavior outside the counseling Visits to promote therapeutic goals. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 11 C. The Plan’s EAP services will provide Members with confidential EAP Assessment, Crisis Intervention, short-term counseling and referral to community resources. The Plan can also refer Members to individuals who provide parenting and childcare resources, eldercare resources, legal consultations, and financial services D. Upon reaching the maximum number of Visits, a Member may continue to receive services by the Plan Provider, but at the Member’s expense. Upon each case opening, The Plan shall inform the Member of the number of Visits he or she is entitled to receive. E. A Plan Provider will also refer a Member to community resources for assistance for non- Covered Services. In the event of such referral, the Member shall be advised by The Plan and the Plan Provider that the Member is responsible for payment of costs and fees for services provided. F. The Plan Provider shall also obtain from a Member a consent form prior to the release of any information concerning said Member, except as required by law. A Plan Provider shall explain such form to each Member. G. Upon request, The Plan shall provide up to ten (10) hours per contract year of on-site educational seminars and crisis response. Seminars are to be selected from a list of topics provided by The Plan. Cancellations of educational seminars within three business days (72 business hours) of their scheduled time shall be counted as used on-site hours, or subject to a late cancellation billing of Three Hundred Twenty Five Dollars ($325.), whichever applies. Additional on-site hours may be purchased by The Group at current pricing. H. The Plan shall conduct management orientation sessions for The Group’s management and supervisory personnel and employee orientation sessions for The Group’s personnel at such times and locations as are mutually agreed upon by The Plan and The Group. I. The Plan shall provide the first two (2) DOT cases annually; thereafter, the rate will be $650 per case. J. The Plan shall provide four (4) hours annually for participation in health fairs & open enrollment meetings. K. Upon request, The Plan shall consult with The Group’s Human Resources staff and individual supervisors and managers regarding potential or actual supervisory referrals and Employee performance issues. L. The Plan shall provide quarterly reports. Such reports shall include statistics on number of Employees using The Plan, demographics, referral sources, services used and problem types. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 12 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev. Feb. 2014 13 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $168,036.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev Sep. 2014 14 EXHIBIT “C-1” RATE SCHEDULE RATE PER EMPLOYEE PER MONTH $2.68 (1019 – 1045 Employees) Additional On-Site Hourly Rate $350.00 The Plan shall provide the first two (2) DOT cases annually; thereafter, the rate will be $650 per case. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev Sep. 2014 15 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Professional Services Rev Sep. 2014 16 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE EMAILED OR MAILED TO: EMAIL: InsuranceCerts@CityofPaloAlto.org PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303. DocuSign Envelope ID: 957A616C-FD41-438C-B4EA-6B19A4EEF73A Certificate of Completion Envelope Number: 957A616CFD41438CB4EA6B19A4EEF73A Status: Completed Subject: Please DocuSign this document: C15156644 CONCERN EAP CONTRACT.pdf Source Envelope: Document Pages: 16 Signatures: 1 Envelope Originator: Certificate Pages: 4 Initials: 0 Chris Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 10/17/2014 12:52:41 PM PT Holder: Chris Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Cecile Currier Cecile_Currier@concern-eap.com CEO, CONCERN: EAP Security Level: Email, Account Authentication (None)Using IP Address: 69.239.249.174 Sent: 10/17/2014 12:55:44 PM PT Viewed: 10/21/2014 4:49:43 PM PT Signed: 10/22/2014 1:16:13 PM PT Electronic Record and Signature Disclosure: Accepted: 10/22/2014 1:15:32 PM PT ID: e6f7f4c4-ccc4-4a62-a431-b2735a1a3e5a In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cash Alaee Khashayar.Alaee@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 10/22/2014 1:16:15 PM PT Electronic Record and Signature Disclosure: Not Offered ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/22/2014 1:16:15 PM PT Certified Delivered Security Checked 10/22/2014 1:16:15 PM PT Signing Complete Security Checked 10/22/2014 1:16:15 PM PT Completed Security Checked 10/22/2014 1:16:15 PM PT Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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City of Palo Alto (ID # 5168) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Palo Alto Players Partnership Agreement Title: Approval of a Public-Private Partnership Agreement between the City of Palo Alto and the Palo Alto Players for the Cooperative Use of the Lucie Stern Community Theatre From: City Manager Lead Department: Community Services RECOMMENDATION Staff recommends that Council approve the renewal of a public-private partnership agreement between the City of Palo Alto and the Palo Alto Players for cooperative use of the Lucie Stern Community Theatre (Attachment B) for the period September 1, 2014 to June 30, 2015. BACKGROUND The Lucie Stern Community Theatre is used by three local theatre companies, which produce approximately 15 productions annually. These partnerships provide the companies with an artistic home, an essential component of their ongoing existence, offering stability through the up and downs of the economy, especially during times of cutbacks in government, foundation and corporate funding for the arts. In return, the companies collectively provide culturally enriching theatrical experiences for more than 45,000 audience members annually. As of 1974, the Palo Alto Players dissolved their ties with what was then the Parks and Recreation Department, and became an independent company. Since that time, the City has continued to support the Palo Alto Players by providing performance, rehearsal, and shop space at the City-owned Community Theater (also known as the Lucie Stern Theater). During their 2013 – 2014 theatre season, the Palo Alto Players offered six different productions for adults, including musicals, comedies, and historical dramas, attended by nearly 12,500 audience members. DISCUSSION The Palo Alto Players’ usage of the Lucie Stern Community Theatre is governed by a public- private partnership agreement (Attachment B). Given the long history of the partnership and the cultural benefits of providing the Palo Alto community with a diverse range of artistic City of Palo Alto Page 2 events, staff recommends that the City Council approve the modification of the existing public- private partnership. The key terms of this agreement are discussed below: Term: In order to align the term of the agreement with the fiscal year, the new agreement is for Fiscal Year 2015, effective September 1, 2014 and terminates on June 30, 2015. Similar agreement extensions are intended for subsequent years. Revenue: In accordance with the Municipal Fee Schedule and in exchange for providing pro- bono facility usage, the Palo Alto Players shall remit to the City a surcharge in the amount of $2.00 for each ticket sold. This fee is effectively passed down to patrons and is applied to all subscription, group, individual, promotional, and other tickets sold. Complimentary tickets are excluded, and the sum of the surcharge revenue for each production is due to the City within 30 calendar days after the closing of the production. The City received $19,766 in Fiscal Year 2014 from the ticket surcharge fee and approximately $90,000 total from the three theater partnerships. Among other functions, the proposed agreement acts as a revenue contract which governs the application, collection, and accounting of associated revenue. Responsibilities of City: The contract outlines the responsibilities of the City, using the standard terms of public-private and “joint-venture” partnerships (Attachment A: Policy 1-25, Public/Private Partnerships), including notice requirements for contract termination and affirming non-discrimination, insurance, and property guidelines. The City is also responsible for allowing and providing access to the Lucie Stern Community Theatre during designated hours, providing basic maintenance of capital equipment, monitoring production safety, and providing information regarding other scheduled facility uses (such as City-sponsored events or private rentals). Responsibilities of Company: Additionally, the agreement stipulates the responsibilities of the theatre company, including their duty to abide by City and department policies and procedures (specifically including and as related to, without limitation, conduct in community centers, injury and illness prevention, sale of alcoholic beverages, operations, building emergency procedures, zero waste, and facility use). Other responsibilities include timely remittance of fees and surcharges, requirements for sufficient building supervision/staffing, recordkeeping of ticket sales and surcharge remittance for compliance with audits, and adherence to standard practices for facility security. RESOURCE IMPACT No additional City resources are required and it is anticipated that this partnership will lead to enhanced program over the life of the agreement. POLICY IMPLICATIONS This partnership would be categorized as a public/private partnership under the City’s Public- Private Partnership Policy (Attachment A: Policy 1-25). Attachments: City of Palo Alto Page 3  Attachment A - Public Private Partnership Policy (PDF)  Attachment B - FY15 Palo Alto Players Agreement (PDF) POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership:A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: Acceptance of or solicitation of service or facility proposals Facilitation of such proposals through the City's regulatory process Waiver of City General Fund fees to help reduce project costs. Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships:This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances:This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships:Public/private partnerships may be initiated in one of three ways: By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. By a private or nonprofit organization:An organization makes a partnership proposal to the staff or City. City Manager Review:If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships:Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization:Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. Long-term staffing, operational and maintenance costs must be identified in the proposal.The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park.As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. AGREEMENT FOR PERFORMING ARTS SERVICES THIS AGREEMENT FOR PERFORMING ARTS SERVICES (“Agreement”) is made and entered into as of the 1st day of July, 2014 by and between THE CITY OF PALO ALTO, a municipality chartered under the laws of the State of California (“City”) and PALO ALTO PLAYERS-PENINSULA CENTER STAGE (“CORPORATION”), a California nonprofit public benefit corporation, located at 1305 Middlefield Road, Palo Alto, California (telephone: 650-329-0891) (“Contractor”) (individually, a “Party” and, collectively, the “Parties”). In consideration of their mutual covenants, the Parties hereby agree as follows: 1. SERVICES: During the Term of this Agreement, as defined in Section 5 below, Contractor shall present that portion of Contractor’s 2014-2015 theatrical performances (the “Services”) that are produced at City’s Lucie Stern Community Center. 2. FACILITY: For purposes of this Agreement, the defined term “Facility” is deemed to mean those portions of the Lucie Stern Community Center comprising the theatre, lobby, green room, dressing rooms, scene shop, paint shop, light and sound booth, flat storage, rehearsal hall and costume shop. 3. FEE: Pursuant to the Municipal Fee Schedule (Exhibit G), the services to be performed under this Agreement constitute a “Class I” use of the Facility. 4. EXHIBITS: The Exhibits listed below, Appendices A through L and Attachments 1 through 5 are attached hereto and are incorporated herein by this reference. The Parties acknowledge that this Agreement shall have no force or effect unless all such Exhibits, Appendices and Attachments are attached hereto. Exhibit A: Responsibilities of Contractor Exhibit B: Responsibilities of City Exhibit C: General Conditions Exhibit D: Palo Alto Players-Peninsula Center Stage Addendum Exhibit E: Non-Discrimination Form Exhibit F: Proof of Liability Insurance Exhibit G: Municipal Fee Schedule Exhibit K: City of Palo Alto Non-discrimination Policy 5. TERM: The services under this Agreement shall commence as of September 1, 2014 and shall terminate on June 30, 2015 (the “Term”). 6. COMPENSATION: During the Term, Contractor shall pay City: (a) Two Dollars ($2.00) for each ticket sold and (b) compensation for the Facilities Attendant present at each performance, at prevailing rates as set forth in the Municipal Fee Schedule, a copy of which is attached hereto as Exhibit G. Contractor shall send payment in accordance with Exhibit C to City, Attn: Project Manager. 7. HOLD HARMLESS: Contractor shall indemnify, defend and hold harmless City, its Page 1 Council Members, officers, employees and agents from and against any and all demands, claims or liability of any nature, including wrongful death, caused by or arising from the acts, errors, omissions, willful misconduct, or gross negligence during the Term by Contractor, its officers, directors, employees, subcontractors or agents, except to the extent such demands, claims or liability of any nature arise from the acts, errors, omissions, willful misconduct, or gross negligence of City, its Council Members, officers, employees, contractors or agents. 8. ENTIRE AGREEMENT: This Agreement and the terms and conditions set forth in the attached Exhibits, Appendices and Attachments represent the entire agreement between the Parties with respect to the Services. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. 9. QUIET ENJOYMENT: Contractor, upon payment of the consideration required hereunder and Contractor’s performance of all obligations of Contractor hereunder and Contractor’s observance of City’s policies referenced herein, shall and may peacefully and quietly have, hold and enjoy the Premises during the Term. IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE THE City OF PALO ALTO, a municipality chartered under the laws of the State of California PALO ALTO PLAYERS-PENINSULA CENTER STAGE, a California non-profit public benefit corporation By: __________________________________ By: __________________________________ Judge Luckey Eugenie M. Watson Its: PROJECT MANAGER AND REPRESENTATIVE FOR City Board President I.R.S. Number: 94-2831245 Address: P.O. Box 10250 Palo Alto, CA 94303 Telephone: (650) 329-2519 City OF PALO ALTO APPROVALS: (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW) City DEPARTMENT  Funds Have Been Budgeted (1) PURCHASING & CONTRACT ADMINISTRATION INSURANCE REVIEW (2) APPROVAL OVER $25,000 (3) PURCHASING MANAGER APPROVAL OVER $25,000 APPROVAL OVER $85,000 City OF PALO ALTO BY:_____________________________________ ATTEST: BY:________________________ _______________________ Page 2 City ATTORNEY MAYOR City CLERK Page 3 EXHIBIT A RESPONSIBILITIES OF CONTRACTOR During the Term, Contractor shall: (1) Abide by the policies/procedures established by City and City’s Arts and Sciences Division and the Department of Community Services for the use of City facilities, equipment, costumes, props, furniture, scenery and other production elements. These shall include, but are not limited to, Regulations of the City of Palo Alto Regarding Prohibited Conduct In Community Centers and Theaters (Appendix A), the City of Palo Alto Injury and Prevention program (Appendix B), Policy for Sale of Alcoholic Beverages (Appendix C), Operations Manual (Appendix D), Safety Procedures and Guidelines (Appendix E), Building Emergency Procedures (Appendix F), procedure for adjusting the Forestage height, including use of the Scissor lift (Appendix G), House Manager's Guide (Appendix H), Zero Waste Plan (Appendix I), Costume Room Guidelines (Appendix J), City Report of Accident/Property Damage (Appendix K), and City’s Danger Policy (Appendix L). Follow safety procedures for the use of power and hand tools, mechanical lifts, etc. including the use of safety goggles, ear protection, face shields, safety cables, outriggers, etc. (2) Obtain, supervise, and pay all necessary related fees for the services of all professional assistance needed to produce Contractor’s productions (the “Productions.”) Such assistance may include, but is not limited to the following: Production Directors, all Designers, Carpenters, Painters, Production Assistants, Music Directors, Choreographers, Musicians and other Front of House, Artistic or Administrative personnel. (3) Pay all fees and costs for materials, supplies, scripts, royalties, licenses and other fees and expenses connected with the Productions, including all make-up removal supplies. (4) Bear sole responsibility for the control and supervision of all production activities and personnel connected therewith, and notify all personnel of their obligations and responsibilities pertaining to their respective responsibilities, having primary responsibility for building security when Contractor is occupying City facilities. (5) Provide Project Manager or his/her designee with a list of all pyrotechnic effects (including the use of open flames), all hydro technical effects, all use of fog or haze, all loud noises (e.g., gunshots), and all use of strobe lights at least twenty-one (21) days prior to first use on stage. No flames shall be permitted on stage without the required fire permits from City. Smoking by any of the actors on stage as an integral part of the Production is deemed a pyrotechnic effect. Safety precautions approved by a City Fire Inspector and Project Manager or his/her designee will be taken when smoking is occurring on stage, and the audience shall be notified beforehand that smoking, loud noises (e.g., gunshots) or use of strobe lights will occur on the stage. All Fire Department fees for “Open Flame Permits” and “Candles and Open Flames in Assembly Areas Permits” shall be the responsibility of Contractor. (6) Provide Project Manager with the rehearsal schedule, performance schedule, shop Page 4 schedule and any requests for the use of City facilities (including but not limited to the Facility, as defined in Article 2, rooms located in the Lucie Stern complex and the Lucie Stern Courtyard and patio) for any purpose. Space reservations for the Facility are specified in Attachment 1. Space reservations for rooms other than the Facility should be made at least six (6) weeks in advance. No performance shall begin earlier than 9:00 a.m. nor end later than midnight. In no event shall Contractor conduct rehearsals or other activities, or otherwise occupy City facilities from 12 midnight to 8:00 a.m. unless prior written permission is obtained from Project Manager or a designated employee of City is on site. Contractor shall observe all facility security rules and regulations as established by City (Appendix A). (7) Designate as Project Director for the length of this Agreement an employee or sub- contractor to manage or supervise all areas, Contractor personnel and Contractor property in this Agreement, including production, technical, house personnel and any and all support groups and to be Contractor’s liaison with Project Manager or his/her designee in all matters relating to the City in any way. (8) Arrange for auditions and casting for the Productions and have sole responsibility for the supervision and control of all performers. With respect to casting, Contractor shall have sole discretion to choose and approve the qualifications and select the cast. In personnel decisions, Contractor shall agree to and comply with the provisions of the City’s non-discrimination policy (Exhibit K). (9) Engage the services and train crew members in appropriate areas of theatre production activity and utilize crew members in a safe and effective manner in the presentation of the Productions. Contractor shall be solely responsible for the control and supervision of such participants and shall indemnify, defend, and hold harmless the City from and against any claims or liabilities arising from the acts or omissions of such personnel. All such personnel shall be deemed the sole agents and employees of Contractor and shall be notified by Contractor of this circumstance. (10) Exercise safe practices in the use of City facilities and equipment, maintain and clear work areas, and, within twenty-four (24) hours, report, on a form provided by City (Appendix K), information regarding accidents. Immediately report to Project Manager or his/her designee on a form provided by City any breakage, malfunction, deterioration or loss of any of the City’s resources (including musical instruments, tools, lights, sound equipment, props, curtains, etc.). Contractor shall not attempt repair of City equipment without prior consultation with the Project Manager. Contractor shall immediately discontinue any activity in which an unsafe or dangerous condition exists. Contractor shall train and supervise Contractor’s staff and volunteers on safe theatre practices and adhere to City’s safety procedures and guidelines. If, in the opinion of any City or Contractor employee, Contractor is conducting an activity in an unsafe manner, Contractor or its agents shall be informed and shall immediately discontinue such activity until such activity is able to be conducted in a safe manner approved by City staff. (11) In conformance with the Americans with Disabilities Act (ADA) of 1990 guidelines and requirements, Contractor shall bear responsibility for providing appropriate auxiliary Page 5 aids, interpretive services and accommodations where they are necessary to achieve an equal opportunity for patrons to participate in and enjoy the benefits of public performances produced under the Agreement. Printed programs shall include the following statement required by the Americans with Disabilities Act: "Persons with disabilities who require information on auxiliary aids or services in using City facilities, services, or programs or who would like information on the City's compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-463-4952 (Voice) or ada@Cityofpaloalto.org (Internet). (12) Maintain its existence as an independent, non-profit corporation under the laws of the State of California. (13) Submit all signs or displays to be located on or in the Facility to Project Manager or his/her designee for approval at the first production meeting. All displays may be put up at load-in and must be removed during strike. Inside the Facility, no display materials may be placed upon stucco walls. Lobby displays may be placed only on the lobby display boards, and all fasteners must be removed at the time display is taken down. Nothing may be posted on the exterior walls or doors of the Facility or in the Stern courtyard, except for items in the display case and an approved production name sign hung from the theatre balcony. Marquee signs must be constructed of light weight material, and shall be secured in such a way that the sign is unlikely to become dislodged by normal vibration or seismic activity. Signs shall be of a standard size no larger than ten feet in length and eight feet in height. All marquee signage must be attached to the theatre balcony with rigging so that the sign may be easily removed for limited periods during photography shoots, special events, or building maintenance. (14) Clean and clear the auditorium, stage, paint shop, scene shop, flat dock, and costume shop, green room, dressing rooms, rehearsal hall, hallways and outdoor areas adjacent to theatre and shop. Disassemble and store, to Project Manager’s or his/her designee’s reasonable satisfaction, scenery, properties, and other production elements, within six hours after the final performance or on such other time schedule mutually agreed upon between Contractor and Project Manager or his/her designee and the incoming authorized user of the facilities, if any. The stage shall always be returned to its basic set-up as established by Project Manager or his/her designee unless there is a mutual agreement with the incoming group that has been approved by Project Manager or his/her designee. All items on the STRIKE CHECKLIST are to be performed unless there is a mutual agreement with the incoming group that has been approved by the Project Manager or his/her designee. The Project Manager or his/her designee will sign a copy of the STRIKE CHECKLIST form at the completion of the strike to signify acceptance of clean and neat facilities. (15) Leave storage, paint, scene, and costume spaces clean and clear of Contractor’s materials other than those materials necessary for the ongoing maintenance and repair of the sets and costumes by the Monday following opening performance. (16) Leave all spaces clear, clean and orderly at the end of each use. Rehearsal Hall is to be cleared of all materials, except major set pieces and any rehearsal props, after each daily Page 6 use. Rehearsal Hall is to be completely cleared within twenty-four (24) hours of final use. Kitchen, restrooms and dressing rooms are to be cleaned and cleared after each daily use. Trash, recycling and compostable materials are to be removed from all areas daily. Recyclables and compostable materials are to be placed in the recycling and composting carts near the trash dumpster and garbage and trash are to be placed into the dumpster. Contractor is required to reduce waste, reuse and recycle per the City’s Zero Waste Plan (Appendix I). Office space and hallways are to be kept continually clear, clean and orderly and neither space shall be used for the purpose of set, prop, or costume storage. Materials may not be left or stored any place out-of-doors overnight or when unattended by Contractor’s personnel. (17) Enforce current regulations as established by City with regard to smoking, food and drink in City facilities (Appendix A). Contractor shall provide ushers at all previews and performances to enforce such regulations. Smoking is not permitted inside any City facility. No person shall bring any animal into the theatre. This regulation shall not apply to service animals assisting individuals with disabilities or to animals in training to become service animals. Use of animals on the stage is subject to approval by Project Manager or his/her designee. Food and drink are not permitted in the auditorium, light/sound booth or on stage, unless used as part of a production scene. Food and drink shall be permitted only in approved areas such as the green room and lobby. Contractor shall clean up all food and drink containers daily after use. (18) Contractor will be responsible for cleaning the Lucie Stern hallway restrooms for weekend performances. (19) Comply with City TB test requirement for employees and volunteers of Contractor at any time the City Risk Manager deems it necessary. If minors are involved in the Production, Contractor shall comply with all of the State of California’s rules and regulations regarding Child Labor. (20) Comply with City sound ordinance levels for any outdoor activities, including load-in, strike, dismantling, or disposal. Shop doors facing Hopkins and Harriet Streets shall be closed between 8:00 p.m. and 8:00 a.m. (21) In addition to the Facilities Attendant referenced in Section 5 of the Agreement, pay any additional Attendant according to prevailing rates as set forth in the Municipal Fee Schedule attached as Exhibit G, pursuant to the following (a) For a period of one (1) hour prior to until at least one half (1/2) hour after the completion of each Performance listed in Palo Alto Players-Peninsula Center Stage Production and Exclusive Use Schedule, 2014 – 2015 (Attachment 1). (b) For any Performance not included in Attachment 1, Contractor may add additional performances of the Productions listed in Attachment 1 upon thirty (30) days’ advance notice to City. (c) When using other City facilities at the same time as a Performance listed in ATTACHMENT 1. Page 7 (22) Provide house manager and ushers for every Performance or event whenever the public is in attendance. Contractor shall only engage the services of ushers have been trained in theatre emergency, safety and use procedures usher. Contractor shall submit a list of its trained personnel to Project Manager prior to public performances for each Production. Ushers must be available to assist patrons under all circumstances and must be aware of and able to assist disabled persons. Contractor’s House Manager and ushers must also be available to assist in emergency situations throughout the entire Performance until the audience has left the theatre. Ushers must ensure that wheelchairs, walkers, etc. are not blocking any of the aisles or exits. Ushers shall return seats to the upright position and remove litter from the auditorium and restrooms at the conclusion of each performance. (23) Install and/or remove the removable auditorium seats in designated areas to accommodate wheelchair patrons and as required due to the needs of the Production. (24) Remove from the Facility, at the conclusion of each Production, costumes, properties and sets created by Contractor with Contractor-owned materials, which costumes, properties and sets will remain the property of Contractor. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for Contractor is the responsibility of Contractor and/or its subcontractors, and City assumes no responsibility or liability for their maintenance or loss. Contractor assumes all liability and responsibility for any default on Production expenses. (25) Replace or repair or cause to be replaced or repaired by factory authorized technicians City-owned equipment, instruments or materials identified by Project Manager or his/her designee as having been lost, damaged or destroyed by Contractor or its agents. A written report must be made on a City form whenever City equipment is lost, damaged, or destroyed by Contractor. (26) Upon written application to Project Manager or his/her designee and upon express approval and written authorization of Project Manager or his/her designee, use City-owned properties, sets, costumes, scenery, furniture and equipment for Productions not scheduled in the Agreement. Approval, if any, shall be given to Contractor in writing. In the event any of such items are damaged or destroyed, Contractor shall bear responsibility for the repair or replacement of such items to the reasonable satisfaction of Project Manager. (27) Upon written application to Project Manager or his/her designee at least sixty (60) days prior to the applicable date, request approval to use the Facility for classes, camps or workshops. No later than thirty (30) days prior to the applicable date, the Project Manager or his/her designee shall deliver to Contractor in writing his/her approval or disapproval. Failure to respond shall be deemed approval. In the event of disapproval, then he/she shall briefly explain the reasons therefor. No such activity will be advertised or promoted until it has been approved by the Project Manager or the time for review has passed, whichever occurs first. Page 8 (28) Comply with all State and City laws relating to the sale and consumption of alcoholic beverages. Alcohol is permitted at the Facility if approved by Project Manager, whose approval will not be unreasonably withheld. Unless otherwise specifically permitted and pursuant to City policy, the only alcoholic beverages that may be sold or served at City facilities are wines, including champagne and sparkling wine. If alcoholic beverages are to be sold or distributed free of charge, Contractor must possess a valid On-Sale General Theatre License for the Facility. [TW COMMENT: This is the type of license that is required.] A copy of Contractor’s permit for the sale or distribution of alcoholic beverages shall be provided to Project Manager. Proof of liquor liability insurance where City is named as co-insured with liability of at least One Million Dollars ($l,000,000.00) shall be required. Permits are to be displayed as required by law. It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor. Identification must be checked if the person appears to be under thirty (30) years of age. After each performance, Contractor shall remove all items, including cups, glasses, bottles, napkins and food from the lobby and other areas within the Facility as well as the courtyard. Contractor is required to adhere to City’s Recycling and Zero Waste Program (Appendix I). (29) Shall cause to have present at the Facility at all times when Contractor or any of its employees, subcontractors or volunteers is in the Facility one of Contractor’s designated and City-approved key and/or proximity card holders. Any exceptions to the foregoing requirement must be approved, in writing, by Project Manager or his/her designee. Any exceptions must be approved by Project Manager or his/her designee in writing. (30) Prevent any modifications of a permanent or disfiguring nature of or to the Facility. Contractor may not install or attach anything in or on the Facility without having first submitted a written request to Project Manager and having received written permission from Project Manager or his/her designee. The approval of Project Manager does not relieve Contractor from any responsibility to obtain necessary City permits or Building Department approvals for the modification. Should Contractor violate the provisions of this Paragraph (30), Contractor shall be charged for all repairs necessary to restore the Facility to its original condition and for any additional costs arising from such violation. (31) Immediately report to the police any incidents of a criminal or suspicious nature occurring on City property, and notify Project Manager or his/her designee within twelve hours. If initial notification is verbal, Contractor must subsequently submit the information in writing to Project Manager or his/her designee on a form provided by City. (32) Ensure that the doors to the Scene Shop, Rehearsal Hall, and Costume Shop, as well as any other exterior access doors to any area of the Facility, are not left open, unlocked or left with the locking mechanism disabled, even if only briefly, at any time when the immediate area secured by the door is unoccupied by Contractor. Failure to do this may result in the imposition of greater restrictions imposed on Contractor for access to the Facility, including the possible forfeiture of keys/proximity cards by Contractor and/or restricted access times. Page 9 (33) Complete a City Report of Accident/Property Damage report (Appendix K) for any and all accidents, injuries or property damage if a City employee is not present to fill out the report. (34) Operate and conduct business in compliance with City’s Zero Waste Plan (Appendix I) for all activities including, but not limited to, set construction and strike, food and beverage service, and office activities. The City Recycling Program department can assist with resources for achieving this goal. The goal is to send as little waste to landfill as possible through waste reduction, reuse and recycling. To achieve this goal Contractor must first reduce waste whenever possible. (35) Avoid the use for food/beverage service of disposables, including, but not limited to, Styrofoam and other plastics. Reusable food/beverage service ware should be utilized to the maximum extent possible. Where a reusable food/beverage service option is not available, Contractor shall choose items that are recyclable. For concessions, choose product packaging that is recyclable. (36) Practice reuse before, during and after Production. City shall provide a list of reuse resources to avoid the disposal of construction materials, sets and props. Contractor must recycle construction debris from set materials (e.g. wood, metal). (37) Recycle all materials included in the City’s Recycling Program including paper (all types), plastic containers #1-#7, cardboard, glass bottles and jars, and metal cans. Compostable materials will be disposed of in designated compost waste receptacles. (38) Include on the title page of all production and event programs the following credit: “Use of this facility is made possible through support from The City of Palo Alto, Community Services Department, Division of Arts and Sciences,” and include the official City of Palo Alto logo on the title page or prominent placement within event programs; print in all publicity for the Productions, including, but not limited to, mailings, flyers, posters, brochures, and paid or public service advertising, the statement: “In cooperation with the City of Palo Alto Community Services Department, Division of Arts and Sciences.” The City of Palo Alto, Community Services Department, Division of Arts and Sciences shall also be credited in the Contractor’s list of funders as a “Civic Sponsor.” Page 10 EXHIBIT B RESPONSIBILITIES OF CITY During the Term, City shall: (1) Allow Contractor the exclusive use of the Facility, as defined in Article 2, as scheduled in Attachment 1 for the preparation and presentation of Productions performed under this agreement provided that Contractor submits specific rehearsal schedules, performance schedules and shop use schedules. Any use of City facilities and equipment other than those listed in the Agreement and the Exhibits thereto, which facilities and/equipment are nonetheless required to allow Contractor to perform its Services hereunder are subject to a different contract between City and Contractor. (“Non-Facility Contracts”). (2) Allow the use of the auditorium and the stage for performances and brush-up rehearsals within the period described in Exhibit A, Paragraph 6. (3) Allow the use of the exclusive use of the stage and the auditorium prior to the opening night of the Productions , with the exception of necessary maintenance procedures that may require access to the stage and auditorium during this period, according to the production schedule set forth in Attachment 1. Allow the use of the rehearsal hall, box office, scene shop, paint shop and costume shop according to the schedule as set forth in Attachment 1. Additional facility use may be provided as specified in item (Exhibit B (1); Exhibit A (27)) above; however, priority use of the room will always be given to actual rehearsals of productions covered by a contract with City. City reserves the right to allow other uses of space within the Facility when not in actual, scheduled use by Contractor on a non-interference basis and with at least seventy-two (72) hours’ prior notice to Contractor. (4) Allow Contractor to use all operational production equipment in City’s inventory as requested by Contractor and approved in writing by City. Contractor shall take such equipment "as is" and is responsible for ensuring that such equipment is in a safe condition prior to use and is returned in working condition at the conclusion of its use or of the Production. (5) Monitor all aspects of production with respect to safety issues (Appendix E). If Project Manager or any designee(s) deem(s) that any procedure followed by Contractor is unsafe, he or she has the authority to require the immediate suspension of such procedure. City and Contractor will work together to prevent or quickly mitigate any fire hazards or any items identified by the Fire Department during facility inspections. (6) Provide persons designated by Contractor and approved by Project Manager or his/her designee with keys, proximity cards (up to a maximum of six), and alarm codes for access to the Facility for the sole purpose of carrying out the requirements of the Agreement. Keys, proximity cards, and alarm codes shall not be loaned or transferred and shall be used only by the designated persons. In the event that Contractor fails to properly open or lock and secure City facilities leading to a false alarm call-out or leaves areas of the facility unlocked and unattended, a Two Hundred Dollar ($200.00) penalty Page 11 shall be paid to City on each such occasion. In the event that a designated key holder loses any key or proximity card issued by City, Contractor shall be assessed a Seventy- Five Dollar ($75.00) replacement charge for each key or proximity card or pay for the cost of rekeying or reprogramming the locks of the facility if circumstances indicate it as determined in City’s reasonable judgment. Contractor will be responsible and held accountable for all personnel, properties and activities of Contractor. (7) Have the right, with no notice, to suspend the Agreement if the Facility should be declared uninhabitable for reasons of safety by the proper authorities (e.g., if the building should be damaged in an earthquake and be declared unsafe for occupancy). If there is an outbreak of pandemic flu or other medical emergency and places of public gatherings are closed, City will not assume any financial responsibility for loss of revenue by Contractor. If the Facility is not available due to earthquake, other disaster, or safety related issues, City will not assume any financial responsibility for loss of revenue by Contractor. (8) Have the right to borrow available Community Theatre-owned properties, sets, costumes and scenery for productions scheduled in this Agreement. Costumes, properties and sets created by Contractor with Contractor-owned materials will remain the property of Contractor, and shall be removed from the Facility at the conclusion of the production in which the materials are used. The Project Manager or his/her designee may, on a case-by-case basis, authorize exceptions. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and the City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for the Contractor is the responsibility of the Contractor and/or its subcontractors, and the City assumes no responsibility or liability for its maintenance or loss. Page 12 EXHIBIT C GENERAL CONDITIONS (1) City. The Manager Arts-Children’s Theatre is hereby designated Project Manager for City, who shall render overall supervision of the progress and performance of this Agreement by City. All City services set forth in this Agreement shall be performed by City under the overall supervision of Project Manager or his/her designee. Contractor shall go through Project Manager or his/her designee in all matters dealing with City policies, funding, facilities, equipment and other City departments outside the Facility. (2) Contractor. Contractor shall assign a single Project Director who shall have overall responsibility for the compliance of Contractor with the Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a different Project Director, Contractor shall notify City immediately of same. The Project Director shall be responsible for all actions of Contractor. The Project Director shall also be responsible for disseminating to appropriate personnel all communication and information from City. (3) Access. Contractor shall not prevent Project Manager, facility maintenance personnel, and/or others specifically designated by Project Manager from access to the Facility; provided, however, that City shall use its best efforts not to disrupt the activities of Contractor as permitted by the Agreement. The Project Manager and others specifically designated by Project Manager shall attempt to coordinate such access if possible. Notwithstanding the foregoing, except in the case of emergency or if they are present on the premises as members of the audience or specifically invited into the backstage areas of the theatre, Project Manager, facility maintenance personnel and/or others specifically designated by the Project Manager shall not enter the auditorium or backstage areas during public performances of a production. (4) Days Defined. The term "days" shall mean calendar days. (5) Qualifications. Contractor represents that it is qualified to furnish the Services described under the Agreement. (10) Ticket Sales: (a) Contractor’s budget for the Term of the Agreement is attached hereto, marked “Attachment 2” and incorporated herein by reference as though fully set forth herein. (b) Contractor shall be responsible for sale of season tickets and single tickets, depositing of revenue and reporting of revenue and expenditures, and shall place available tickets for each Production for sale at the theatre box office one hour prior to each performance. Until one (1) hour prior to the beginning of a Performance, Contractor shall not sell (a) seat numbers C1, C2, D1, D2, D3, and D4; (b) either (i) the block of seats T2, T4, T6, T8, T10, U2, U4, U6, U8 and U10 Page 13 or (ii) the block of seats T1, T3, T5, T7, T9, U1, U3, U5, U7 and U9 for the purpose of making such seats available for the disabled; provided, however, that this Section 10(b) shall not apply to the sale of tickets for such seats to persons who identify themselves as disabled when they purchase their ticket. (c) Contractor agrees the price of admission for the season shall be as set forth in Attachment 3. (d) Contractor shall remit to City a surcharge in the amount of Two Dollars ($2.00) for each and every ticket sold either through subscription, group, individual, promotional or any other means. The foregoing surcharge is due within thirty (30) calendar days the closing date of the Production. The word “sold” as used in this Paragraph (10)(d) is to include any tickets given in exchange for monetary consideration, including donations. City may, in its discretion, add a three percent (3%) surcharge levied for payments received between 31 days and 60 days after the closing date of the Production, a four percent (4%) surcharge levied for payments received between 61 days and 90 days after the closing date of the Production, and a five percent (5%) surcharge levied for payments received in excess of 90 days of the closing date of the Production. Payment must be accompanied by the production report specified in section C(13), “PRODUCTION REPORTS AND RECORDS,” item (a) before payment will be considered to have been made. (e) Contractor shall provide City, when requested by Project Manager or his/her designee, with at least six (6) complimentary tickets for each Production on the date(s) requested. Best available seating will be provided to City if any seats are available at the time of the request. (f) Contractor may operate an intermission snack concession during each Performance under this Agreement. Contractor shall conduct such operation in a safe, clean manner and shall hold City harmless from any claim or demand or liability of any nature whatsoever which may arise out of such operation. If alcoholic beverages are to be sold or distributed free of charge, Contractor shall have on display a California State A.B.C. Permit and provide Project Manager with proof of liquor liability where City is named as co-insured with liability of at least one million dollars ($l,000,000.00) (See Exhibit A (29) above). It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor by checking I.D.’s if the person appears to be under thirty years of age. Food and drink may not be taken into the Auditorium or the Light/Sound Booth at any time. Contractor shall remove all cups, glasses, bottles, napkins and food from the lobby, green room, and any other affected areas, including the courtyard, after each performance. Contractor is required to adhere to City’s Zero Waste Plan (Appendix I). (11) Composition of Contractor. Throughout the term of this Agreement, Contractor shall remain an independent, non-profit public benefit corporation under the laws of California and be governed by a Board of Trustees. Any changes in Contractor’s Articles of Page 14 Incorporation, By-Laws, or tax-exempt status shall be reported by Contractor immediately to Project Manager. Not more than twenty-five percent (25%) of the persons serving on the governing board of Contractor may be interested persons. "Interested persons" means any person currently being compensated by Contractor for services rendered to it, whether as a full or part-time employee, independent or otherwise, but excluding any reasonable compensation paid to a director as director. (12) Fiscal Responsibilities of Contractor. (a) Fiscal Agent. Contractor shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of Contractor, including the receipt and disbursement of Contractor funds. Contractor shall provide City with the name of a fiscal agent (Attachment 4) and notify Project Manager within five (5) business days of any changes occurring during the Term. Contractor shall have sole responsibility for the safekeeping of Contractor tickets and monies. (b) System of Accounts. Contractor and its fiscal agent shall establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to the review and approval of City staff. (c) Financial Records. In support of its system of accounts, Contractor shall maintain complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, and bank statements. City may inspect these records at Contractor’s office upon reasonable advance notice and during normal business hours upon request. NOTE: Contractor’s cash receipts are not to be stored on the Premises between Productions. (d) Audit of surcharge payments. Contractor shall retain for a period of at least three (3) years bar-coded electronic records of tickets sold, sales records, and a verified report of sold and unsold tickets which must be made available to City of Palo Alto Auditor upon request. (13) PRODUCTION REPORTS AND RECORDS. (a) Reports. On reasonable notice and with reasons specified, Contractor shall grant Project Manager and/or City’s Auditor access to all Contractor records relating to this Agreement, including performance records, data, statements, and reports. (b) Tax Form 199. A copy of Contractor’s most recently filed California State Tax Form 199, "California Exempt Organizations Annual Information Return" must be filed with Project Manager or his/her designee within fifteen (15) days of when it is due to the State of California and shall also be attached to this agreement prior to its final approval (Attachment 5). (14) CORRECTIVE ACTION REQUIREMENT. Notwithstanding the requirements of this Agreement, in the event City should determine from any source, including but not limited Page 15 to reports submitted by Contractor under this Agreement or any evaluation report from any source, that Contractor may not be in compliance with any provision of the Agreement, City may forward to Contractor written notice of same. Such notice shall specify with particularity the nature of the condition(s) or issue(s) that require(s) corrective action and may include a recommendation as to appropriate corrective action. Within fifteen (15) days of City’s request, Contractor shall submit its written response to the notice, which response shall set forth its view of the alleged violation and its proposed plan, if any, for corrective action. Upon request of either Party, the Parties shall meet within five (5) days thereafter to discuss the alleged violation and proposed corrective action. (15) CONTRACTS WITH OTHER AGENCIES. Contractor agrees not to enter into any contract or agreement with another person or agency that will materially interfere with or inhibit the full performance of the Services to be provided by Contractor under this Agreement. Contractor agrees to terminate as soon as legally possible any contract or agreement which will materially interfere with or inhibit the full performance of the services to be provided by Contractor to City under this Agreement. Nothing herein is intended to prohibit Contractor from applying for, and receiving, supplementary funding from other than City sources so long as any agreement required for such funding does not materially interfere with or inhibit the full performance of the services to be provided by Contractor under this Agreement. Contractor is specifically encouraged to seek such supplementary funding. Any agreement between Contractor and the Mountain View Center for the Performing Arts or any other theatrical venue shall not be deemed to violate this Section (15). (16) INTEREST OF CONTRACTOR. Contractor covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of its Services hereunder. Contractor further covenants that, to the best of Contractor’s knowledge and belief, in the performance of its Services under the Agreement, no subcontractor or person having such an interest shall be employed by Contractor. It is expressly agreed that, in the performance of the Services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of City. (17) ASSIGNMENT. Both Parties shall give their personal attention to the faithful performance of this Agreement and shall not assign, transfer, or convey the Agreement or any right, title, or interest in or to the same or any part thereof without the prior written consent of the other Party, and then only subject to such terms and conditions as the other Party may require. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment without such approval shall be void and, at the option of the other Party, shall terminate this Agreement and any license or privilege granted herein. This Agreement and the Parties’ respective interests herein shall not be assignable by operation of law without the prior written consent of the other Party. (18) SUBCONTRACTORS. Contractor shall be responsible for employing or engaging all persons necessary to perform the Services of Contractor hereunder. All subcontractors are deemed to be employees of Contractor and Contractor agrees to be responsible for Page 16 their performance. Contractor shall give its personal attention to the fulfillment of the provisions of the Agreement by all of its employees, participants, volunteers, and subcontractors. (19) INDEMNITY. Except to the extent the same arise from the negligence or willful misconduct of City, its officers, contractors, agents, employees, or persons brought onto the Premises by or through City, Contractor shall defend, indemnify and hold harmless City, its officers, contractors, agents, and employees and the Premises from and against (a) any injury or death or property damage arising from the use or occupancy of the Premises by Tenant, its officers, agents, employees or any persons brought onto the Premises by or through Contractor, (b) any claims or demands made against City, its officers, agents or employees by reason of any infringement or alleged infringement of any copyright or trademark caused by or alleged to have been caused by Contractor or any subcontractor under this Agreement, (c) any penalties imposed on account of the violation of any law or regulation or of any term or condition of any permit in connection with this Agreement, or (d) any damage arising under this Agreement from any loss or damage to materials and equipment owned, rented or borrowed by Contractor, its employees, subcontractors, participants, volunteers, sponsors or any others engaged in connection with the Services rendered by Contractor under the Agreement. (20) INTOXICATION. Contractor agrees to be responsible for injuries or damage caused by any of its directors, officers, employees, agents, subcontractors, or volunteers who are under the influence of alcohol, drugs, hallucinogens or narcotics, whether or not legally prescribed. Neither Contractor nor City shall permit any of Contractor’s employees or volunteers discovered to be under the influence of any of the foregoing substances from remaining in any facility used under the terms of this Agreement and City reserves the right of denying such persons further participation in the Productions. Consumption of alcoholic beverages or use of illegal drugs at the Facility is expressly forbidden by any person working for Contractor, paid or volunteer. This includes all staff, actors, crew and musicians. (21) WORKER'S COMPENSATION. Contractor certifies that it is aware of the provisions of the Labor Code of the State of California, which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of the Code, and it certifies that it will comply with such provisions during the Term of the Agreement. (22) INSURANCE. Contractor, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the Term of the Agreement insurance coverage insuring not only Contractor and its subcontractors, if any, but also, with the exception of workers' compensation and employer's liability insurance, City, its officers, agents, and employees and each of them. City is to be named as Additional Insured with liability coverage of at least One Million Dollars ($1,000,000.00). A copy of the certificate(s) of insurance shall be attached to the Agreement and shall be filed with City concurrently with the execution of this Agreement. Said certificate shall be subject to the approval of City Attorney and shall contain an endorsement stating that Page 17 said insurance is primary coverage and will not be canceled or altered by the insurer except after filing with City Clerk thirty (30) days' written notice of such cancellation or alteration. Current certificates of such insurance shall be kept on file at all times during the Term of the Agreement. (23) WEAPONS. No firearms or other weapons, whether loaded or not, shall be allowed in the Facility or any other City property. Stage weapons and firearms designed solely for the use of blank cartridges will be allowed if they are being used as a prop in the current Production, but must be stored, when not being used, in a secure manner by Contractor’s stage manager or his/her designee. (Please reference City’s Danger Policy, Appendix L.) (24) LEGAL COMPLIANCE. Contractor and all its paid employees, subcontractors, and volunteer participants are required to abide by all applicable federal, state and local laws and ordinances. Page 18 EXHIBIT D PALO ALTO PLAYERS-PENINSULA CENTER STAGE ADDENDUM Contractor’s (PALO ALTO PLAYERS-PENINSULA CENTER STAGE’s) personnel shall be permitted to manage, distribute and collect the hearing-impaired devices (“headsets”) that City owns for use by hearing-impaired persons at all Performances at the Facility, subject to the following restrictions: (a) Contractor shall verify that all headsets and batteries are present and functioning normally and shall report to Project Manager or his/her designee any missing or broken items before taking control of them for the run of the Production. (b) For any damage or loss of any headset while under Contractor’s control, Contractor shall promptly, upon request, pay City the fair market price for any necessary replacement or repair of any component of the headsets, as such replacement or repair is reasonably determined by Project Manager or his/her designee. (c) Contractor will diligently ensure the security of the headsets, in a manner approved by Project Manager or his/her designee, when the headsets are not in use. When the headsets are not so secured, Contractor will not leave the headsets unattended. (d) Contractor will provide at least one (1) person in the Facility lobby, whose sole responsibility will be to distribute and collect the headsets, as the case may be, pursuant to the following: (i) Beginning one-half (1/2) hour before each Performance until ten (10) minutes after the Performance begins; (ii) At all times during any and all intermissions; and (iii) From the end of the Performance until all of the headsets have been returned. (e) Contractor shall collect a Driver’s License or credit card as security for the loan of a headset, which Driver’s License or credit card will be returned to its owner upon return of the headset. Contractor will implement procedures for the safe handling of the Driver’s Licenses and credit cards and their return to their owners. (f) Contractor’s responsibility at the end of each performance will include the following: (i) Clean and otherwise sanitize all the earpieces by swabbing them with isopropyl alcohol swabs. (ii) Turn off the on/off/volume switches on all returned headsets and remove the batteries, placing the batteries into the battery charger. Page 19 (iii) Return all headsets and batteries to their storage case. (iv) Verify the presence of all twenty (20) headsets and batteries. (v) Return the headset storage case to its place in the rolling cart. (vi) Return the rolling cart to the House Manager’s Closet. (vii) Be sure the rolling cart is plugged into an electrical outlet. (viii) Make sure the battery charger is getting power, as indicated by the red light on the top of the case. (ix) Padlock the rolling cart’s doors shut, using either the padlock provided by City or a padlock supplied by Contractor, provided that Project Manager or his/her designee has been given a copy of the key or the combination. (x) Immediately report to City’s attendant at the Facility any missing headsets, and turn over to the attendant any malfunctioning headsets. The provisions of this Exhibit D may be terminated upon reasonable notice at any time by Project Manager or his/her designee, and may be terminated upon thirty (30) days’ prior written notice by Contractor. Page 20 EXHIBIT E NON-DISCRIMINATION FORM Certification of Nondiscrimination: As suppliers of goods or services to City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regard to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference and that they are in compliance with all federal, state, and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. PALO ALTO PLAYERS-PENINSULA CENTER STAGE, a California non-profit public benefit corporation Signature: ____________________________________________________________ By: Eugenie M. Watson Title: Board President Signature: ____________________________________________________________ By: Tari Vickery Title: Board Secretary and Treasurer Page 21 EXHIBIT F INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (City), AT THEIR SOLE EXPENSE, SHALL, FOR THE TERM OF THE CONTRACT. OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW AND AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE City OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL Page 22 INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CONTRACTOR AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION City OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Page 23 EXHIBIT K CITY OF PALO ALTO NON-DISCRIMINATION POLICY Page 24 LIST OF APPENDICES Appendix A Regulations Of The City Of Palo Alto Regarding Prohibited Conduct in Community Centers and Theatres Appendix B The City of Palo Alto Injury and Prevention Program Appendix C Policy for Sale of Alcoholic Beverages Appendix D Operations Manual Appendix E Safety Procedures and Guidelines Appendix F Building Emergency Procedures Appendix G Procedure for Adjusting the Forestage Height Including Use of the Scissor Lift Appendix H House Manager’s Guide Appendix J Costume Room Guidelines Appendix K City Report of Accident/Property Damage Appendix L City’s Danger Policy Page 25 LIST OF ATTACHMENTS ATTACHMENT 1 Palo Alto Players-Peninsula Center Stage Production and Exclusive Use Schedule, 2014 – 2015 ATTACHMENT 2 Contractor’s Budget for the Term ATTACHMENT 3 Contractor’s Pricing Policy ATTACHMENT 4 Name of Contractor’s Fiscal Agent ATTACHMENT 5 Contractor’s Most Recently Filed California State Tax Form 199 Page 26 City of Palo Alto (ID # 5169) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: West Bay Opera Partnership Agreement Title: Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and West Bay Opera for the use of the Lucie Stern Community Theatre From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve the renewal of a public-private partnership agreement between the City of Palo Alto and West Bay Opera for cooperative use of the Lucie Stern Community Theatre (Attachment B) for the period September 1, 2014 to June 30, 2015. Background The Lucie Stern Community Theatre is used by three local companies: West Bay Opera, TheatreWorks and Palo Alto Players, which produce approximately 15 productions annually. These partnerships provide the companies with an artistic home, an essential component of their ongoing existence, offering stability through the up and downs of the economy, especially during times when cutbacks in government, foundation and corporate funding for the arts are the national norm. In return, the companies collectively provide culturally enriching theatrical experiences for more than 45,000 audience members annually. West Bay Opera was founded by Henry Holt in 1955. Originally called the Little Opera Guild, the company began presenting fully staged operatic performances. Under the leadership of Mr. Holt, who was succeeded by his wife, Maria Holt, and then by the present director, Jose Luis Moscovich, West Bay Opera has grown steadily. In 1974, the West Bay Orchestra was established. In 1982, the company acquired space for rehearsals, offices, a costume shop and storage on Lambert Avenue in Palo Alto. Annually, West Bay Opera (WBO) presents three fully staged productions at the Lucie Stern Theatre, attended by over four thousand audience members in the 2013 -2014 Season. Discussion West Bay Opera’s usage of the Lucie Stern Community Theatre is covered by a public-private partnership agreement. City of Palo Alto Page 2 Given the long history of the partnership and the cultural benefits of providing the Palo Alto community with a diverse range of artistic events, staff recommends that the City Council approve the modification of the existing public-private partnership. The key terms of this agreement are discussed below: Term: In order to align the term of the agreement with the fiscal year, the new agreement is for Fiscal Year 2015, effective September 1, 2014 and terminates on June 30, 2015. Similar agreement extensions are intended for subsequent years. Revenue: In accordance with the Municipal Fee Schedule and in exchange for providing pro- bono facility usage, the West Bay Opera shall remit to the City a surcharge in the amount of $2.00 for each ticket sold. This fee is effectively passed down to patrons and is applied to all subscription, group, individual, promotional, and other tickets sold. Complimentary tickets are excluded, and the sum of the surcharge revenue for each production is due to the City within 30 calendar days after the closing of the production. The City received $8,316 from West Bay Opera in Fiscal Year 2014 from this ticket surcharge and approximately $90,000 in total from the three theatre partnerships. Among other functions, the proposed agreement acts as a revenue contract which governs the application, collection, and accounting of associated revenue. Responsibilities of City: The contract outlines the responsibilities of the City, using the standard terms of public-private and “joint-venture” partnerships (Attachment A, Policy 1-25: Public Private Partnerships), including specifying notice requirements for contract termination, and affirming non-discrimination, insurance, and property guidelines. The City is also responsible for allowing and providing access to the Lucie Stern Community Theatre during designated hours, providing basic maintenance of capital equipment, monitoring production safety, and providing information regarding other scheduled facility uses (such as City-sponsored events or private rentals). Responsibilities of Company: Additionally, the agreement stipulates the responsibilities of the theatre company, including their duty to abide by City and department policies and procedures (specifically including and as related to, without limitation, conduct in community centers, injury and illness prevention, sale of alcoholic beverages, operations, building emergency procedures, zero waste, and facility use). Other responsibilities include timely remittance of fees and surcharges, requirements for sufficient building supervision/staffing, recordkeeping of ticket sales and surcharge remittance for compliance with audits, and adherence to standard practices for facility security. RESOURCE IMPACT No additional City resources are required and it is anticipated that this partnership will lead to enhanced program over the life of the agreement. City of Palo Alto Page 3 POLICY IMPLICATIONS This partnership would be categorized as a public/private partnership under the City’s Public- Private Partnership Policy (Policy 1-25: Public/Private Partnerships). Attachments:  Attachment A - Public Private Partnership Policy (PDF)  Attachment B - FY15 West Bay Opera Agreement (PDF) POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 1 PUBLIC/PRIVATE PARTNERSHIPS POLICY STATEMENT The City of Palo Alto encourages the formation of public/private partnerships for the benefits the community receives. For the purposes of this policy, “public/private” also encompasses “public/nonprofit” partnerships. Definitions Public/private partnership:A public/private partnership is an agreement between the City and a nonprofit or private organization to provide services or to assist in funding of public facilities and programs. Such partnerships may take various forms, including: Acceptance of or solicitation of service or facility proposals Facilitation of such proposals through the City's regulatory process Waiver of City General Fund fees to help reduce project costs. Contributions of City matching funds for construction of facilities to be owned and controlled or operated by the City. Provision of facilities to the private partner at no charge or at a subsidized rent. Public/private partnerships typically fall into one of three categories: co-sponsorship, alliances or joint ventures. Co-Sponsorships:This is the most common type of public/private partnership. An organization furthers the mission of the City by supporting a City activity or program in conjunction with pursuit of that organization’s own mission or program. Co-sponsorships can take the form of one-time events or annual agreements. Some examples of co-sponsorships include the Palo Alto Tennis Club use of City courts to provide a youth tennis program and American Youth Soccer Organization’s use of space in a City facility to train referees. Co- sponsorships are entered into by staff and normally have no or minimal financial impact. Alliances:This type of public/private partnership involves organizations that have been created for the sole purpose of supporting a City program or an array of City programs. The organization does not expect to receive any direct financial benefit or to alter City policy and/or operations, but undertakes to work closely and cooperatively with staff to implement City goals. Alliance organizations include the Recreation Foundation, the Art Center Foundation (Project Look or Cultural Kaleidoscope), the Friends of the Children’s Theatre (the Magic Castle), the Library Foundation and the Friends of the Palo Alto Library (financial assistance with the renovation and expansion of the Children’s Library). Alliances are approved by the Council if there are any staffing or budgetary implications to the partnership. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 2 Joint Ventures: This type of partnership involves organizations which have programs or missions independent of the City and involve the City entering into a contractual relationship with the public or nonprofit organization with both parties contributing to the partnership for their mutual benefit. Each joint venture is uniquely negotiated by the staff and approved by the City Council. Examples of Joint Ventures include TheatreWorks, Palo Alto Players and West Bay Opera’s use of the Community Theatre and use of the former police station by older adult service provider, Avenidas. PROCEDURES Initiation of partnerships:Public/private partnerships may be initiated in one of three ways: By staff: Staff identifies an opportunity for such a partnership and undertakes an informal or formal request for proposal process to identify partners. By Council: The City Council directs staff to work with a private or nonprofit organization to develop such a partnership. By a private or nonprofit organization:An organization makes a partnership proposal to the staff or City. City Manager Review:If the partnership proposal involves more than one City department, the City Manager’s Office will appoint a team with representatives of all City departments who are stakeholders in the partnership proposal. The team will analyze the proposal and inform the City Manager of the resource implications of the proposal, including staffing and monetary commitments. This would include proposed fee waivers. If the proposal will require a re-ordering of department priorities that have already been approved by the Council in setting its annual priorities or in the budget process, Council approval will be required prior to commitment to the partnership. Council approval will also be required if the partnership requires a new or adjusted allocation of operating or capital funding. Note: Co-sponsorships usually only involve a single department and do not necessitate the formation of an interdepartmental committee, the involvement of the City Manager’s Office or the approval of the City Council. City-Initiated Partnerships:Such partnerships will be guided by existing policies and procedures governing purchasing and outsourcing, using “requests for proposals” and/or bid processes as the method of initiating a partnership. A City-initiated partnership may incorporate incentives including naming rights, waiver of non-enterprise fund building and planning fees, reduced lease rates, free use of space, subsidies, and staff resources. All incentives may be negotiated on a case-by-case basis. POLICY AND PROCEDURES 1-25/MGR REVISED: AUGUST 2007 3 Evaluation of Viability of Partnering Organization:Staff will provide the City Manager and/or City Council with its assessment of the viability of the proposed partnership, based on the partnering organization’s possession of sound organizational, administrative and fiscal management, and its demonstrated experience to achieve and sustain project tasks, such as fundraising and building community support. For proposed facility improvement or expansion initiatives, the nonprofit or private organization should have the ability and commitment to make a substantial pledge to the project’s cost. Facilities Proposals: If a City facility is to be renovated, expanded or otherwise be directly affected by the partnership, the Infrastructure Management Plan will have to be adjusted appropriately. Long-term staffing, operational and maintenance costs must be identified in the proposal.The project’s applicable costs and funding sources for furnishings, fixtures and equipment will be identified. The parties will negotiate the joint or separate financial responsibility for any project cost overruns on a project-by-project basis. Staff may recommend that any standard City processing or use fee authorized under the Municipal Fee Schedule, excluding fees and charges levied by City of Palo Alto Utilities or other City enterprise fund programs, should be waived as a condition of the City's participation. Waiver of fees may be granted by the Council and limited to those fees associated with a construction or capital improvement project which, upon its completion, results in a new or improved public facility, building or park, or some portion thereof, that will be solely owned or controlled by the City. In the event that only a portion of a construction or capital improvement project will result in a new or improved City facility, building or park, or portion thereof, then the Council may waive only that portion of any associated fee directly relating to the construction, improvement or enhancement of the City facility, building or park.As appropriate, the summary and recommendation in the report to the Council will include a staff recommendation on waiving fees which the Council can approve or reject. The City will determine whether the nonprofit or private organization shall use or may forego a formal or informal competitive selection process in the hiring of professionals who will perform the management, design and/or construction phases of the project. The City shall review and approve the requirements for and the performance of all phases of design, planning and construction work for the project. AGREEMENT FOR PERFORMING ARTS SERVICES THIS AGREEMENT FOR PERFORMING ARTS SERVICES (“Agreement”) is made and entered into as of the 1st day of September, 2014 by and between THE CITY OF PALO ALTO, a municipality chartered under the laws of the State of California (“City”) and WEST BAY OPERA (“CORPORATION”), a California nonprofit public benefit corporation, located at 221 Lambert Ave, Palo Alto, CA (telephone: 650-843-3900) (“Contractor”) (individually, a “Party” and, collectively, the “Parties”). In consideration of their mutual covenants, the Parties hereby agree as follows: 1. SERVICES: During the Term of this Agreement, as defined in Section 5 below, Contractor shall present that portion of Contractor’s 2014-2015 theatrical performances (the “Services”) that are produced at City’s Lucie Stern Community Center. 2. FACILITY: For purposes of this Agreement, the defined term “Facility” is deemed to mean those portions of the Lucie Stern Community Center comprising the theatre, lobby, green room, dressing rooms, scene shop, paint shop, light and sound booth, flat storage, rehearsal hall and costume shop. 3. FEE: Pursuant to the Municipal Fee Schedule (Exhibit G), the services to be performed under this Agreement constitute a “Class I” use of the Facility. 4. EXHIBITS: The Exhibits listed below, Appendices A through L and Attachments 1 through 5 are attached hereto and are incorporated herein by this reference. The Parties acknowledge that this Agreement shall have no force or effect unless all such Exhibits, Appendices and Attachments are attached hereto. Exhibit A: Responsibilities of Contractor Exhibit B: Responsibilities of City Exhibit C: General Conditions Exhibit D: West Bay Opera Addendum Exhibit E: Non-Discrimination Form Exhibit F: Proof of Liability Insurance Exhibit G: Municipal Fee Schedule Exhibit K: City of Palo Alto Non-discrimination Policy 5. TERM: The services under this Agreement shall commence as of September 1, 2014 and shall terminate on June 30, 2015 (the “Term”). 6. COMPENSATION: During the Term, Contractor shall pay City: (a) Two Dollars ($2.00) for each ticket sold and (b) compensation for the Facilities Attendant present at each performance, at prevailing rates as set forth in the Municipal Fee Schedule, a copy of which is attached hereto as Exhibit G. Contractor shall send payment in accordance with Exhibit C to City, Attn: Project Manager. 7. HOLD HARMLESS: Contractor shall indemnify, defend and hold harmless City, its Page 1 Council Members, officers, employees and agents from and against any and all demands, claims or liability of any nature, including wrongful death, caused by or arising from the acts, errors, omissions, willful misconduct, or gross negligence during the Term by Contractor, its officers, directors, employees, subcontractors or agents, except to the extent such demands, claims or liability of any nature arise from the acts, errors, omissions, willful misconduct, or gross negligence of City, its Council Members, officers, employees, contractors or agents. 8. ENTIRE AGREEMENT: This Agreement and the terms and conditions set forth in the attached Exhibits, Appendices and Attachments represent the entire agreement between the Parties with respect to the Services. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. 9. QUIET ENJOYMENT: Contractor, upon payment of the consideration required hereunder and Contractor’s performance of all obligations of Contractor hereunder and Contractor’s observance of City’s policies referenced herein, shall and may peacefully and quietly have, hold and enjoy the Premises during the Term. IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE THE City OF PALO ALTO, a municipality chartered under the laws of the State of California WEST BAY OPERA, a California non-profit public benefit corporation By: __________________________________ By: __________________________________ Judge Luckey José Luis Moscovich Its: PROJECT MANAGER AND REPRESENTATIVE FOR City Managing Director I.R.S. Number: 94-2831245 Address: P.O. Box 10250 Palo Alto, CA 94303 Telephone: (650) 329-2519 City OF PALO ALTO APPROVALS: (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW) City DEPARTMENT  Funds Have Been Budgeted (1) PURCHASING & CONTRACT ADMINISTRATION INSURANCE REVIEW (2) APPROVAL OVER $25,000 (3) PURCHASING MANAGER APPROVAL OVER $25,000 APPROVAL OVER $85,000 City OF PALO ALTO BY:_____________________________________ City ATTORNEY ATTEST: BY:________________________ _______________________ MAYOR City CLERK Page 2 EXHIBIT A RESPONSIBILITIES OF CONTRACTOR During the Term, Contractor shall: (1) Abide by the policies/procedures established by City and City’s Arts and Sciences Division and the Department of Community Services for the use of City facilities, equipment, costumes, props, furniture, scenery and other production elements. These shall include, but are not limited to, Regulations of the City of Palo Alto Regarding Prohibited Conduct In Community Centers and Theaters (Appendix A), the City of Palo Alto Injury and Prevention program (Appendix B), Policy for Sale of Alcoholic Beverages (Appendix C), Operations Manual (Appendix D), Safety Procedures and Guidelines (Appendix E), Building Emergency Procedures (Appendix F), procedure for adjusting the Forestage height, including use of the Scissor lift (Appendix G), House Manager's Guide (Appendix H), Zero Waste Plan (Appendix I), Costume Room Guidelines (Appendix J), City Report of Accident/Property Damage (Appendix K), and City’s Danger Policy (Appendix L). Follow safety procedures for the use of power and hand tools, mechanical lifts, etc. including the use of safety goggles, ear protection, face shields, safety cables, outriggers, etc. (2) Obtain, supervise, and pay all necessary related fees for the services of all professional assistance needed to produce Contractor’s productions (the “Productions.”) Such assistance may include, but is not limited to the following: Production Directors, all Designers, Carpenters, Painters, Production Assistants, Music Directors, Choreographers, Musicians and other Front of House, Artistic or Administrative personnel. (3) Pay all fees and costs for materials, supplies, scripts, royalties, licenses and other fees and expenses connected with the Productions, including all make-up removal supplies. (4) Bear sole responsibility for the control and supervision of all production activities and personnel connected therewith, and notify all personnel of their obligations and responsibilities pertaining to their respective responsibilities, having primary responsibility for building security when Contractor is occupying City facilities. (5) Provide Project Manager or his/her designee with a list of all pyrotechnic effects (including the use of open flames), all hydro technical effects, all use of fog or haze, all loud noises (e.g., gunshots), and all use of strobe lights at least twenty-one (21) days prior to first use on stage. No flames shall be permitted on stage without the required fire permits from City. Smoking by any of the actors on stage as an integral part of the Production is deemed a pyrotechnic effect. Safety precautions approved by a City Fire Inspector and Project Manager or his/her designee will be taken when smoking is occurring on stage, and the audience shall be notified beforehand that smoking, loud noises (e.g., gunshots) or use of strobe lights will occur on the stage. All Fire Department fees for “Open Flame Permits” and “Candles and Open Flames in Assembly Areas Permits” shall be the responsibility of Contractor. (6) Provide Project Manager with the rehearsal schedule, performance schedule, shop Page 3 schedule and any requests for the use of City facilities (including but not limited to the Facility, as defined in Article 2, rooms located in the Lucie Stern complex and the Lucie Stern Courtyard and patio) for any purpose. Space reservations for the Facility are specified in Attachment 1. Space reservations for rooms other than the Facility should be made at least six (6) weeks in advance. No performance shall begin earlier than 9:00 a.m. nor end later than midnight. In no event shall Contractor conduct rehearsals or other activities, or otherwise occupy City facilities from 12 midnight to 8:00 a.m. unless prior written permission is obtained from Project Manager or a designated employee of City is on site. Contractor shall observe all facility security rules and regulations as established by City (Appendix A). (7) Designate as Project Director for the length of this Agreement an employee or sub- contractor to manage or supervise all areas, Contractor personnel and Contractor property in this Agreement, including production, technical, house personnel and any and all support groups and to be Contractor’s liaison with Project Manager or his/her designee in all matters relating to the City in any way. (8) Arrange for auditions and casting for the Productions and have sole responsibility for the supervision and control of all performers. With respect to casting, Contractor shall have sole discretion to choose and approve the qualifications and select the cast. In personnel decisions, Contractor shall agree to and comply with the provisions of the City’s non-discrimination policy (Exhibit K). (9) Engage the services and train crew members in appropriate areas of theatre production activity and utilize crew members in a safe and effective manner in the presentation of the Productions. Contractor shall be solely responsible for the control and supervision of such participants and shall indemnify, defend, and hold harmless the City from and against any claims or liabilities arising from the acts or omissions of such personnel. All such personnel shall be deemed the sole agents and employees of Contractor and shall be notified by Contractor of this circumstance. (10) Exercise safe practices in the use of City facilities and equipment, maintain and clear work areas, and, within twenty-four (24) hours, report, on a form provided by City (Appendix K), information regarding accidents. Immediately report to Project Manager or his/her designee on a form provided by City any breakage, malfunction, deterioration or loss of any of the City’s resources (including musical instruments, tools, lights, sound equipment, props, curtains, etc.). Contractor shall not attempt repair of City equipment without prior consultation with the Project Manager. Contractor shall immediately discontinue any activity in which an unsafe or dangerous condition exists. Contractor shall train and supervise Contractor’s staff and volunteers on safe theatre practices and adhere to City’s safety procedures and guidelines. If, in the opinion of any City or Contractor employee, Contractor is conducting an activity in an unsafe manner, Contractor or its agents shall be informed and shall immediately discontinue such activity until such activity is able to be conducted in a safe manner approved by City staff. (11) In conformance with the Americans with Disabilities Act (ADA) of 1990 guidelines and requirements, Contractor shall bear responsibility for providing appropriate auxiliary Page 4 aids, interpretive services and accommodations where they are necessary to achieve an equal opportunity for patrons to participate in and enjoy the benefits of public performances produced under the Agreement. Printed programs shall include the following statement required by the Americans with Disabilities Act: "Persons with disabilities who require information on auxiliary aids or services in using City facilities, services, or programs or who would like information on the City's compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-463-4952 (Voice) or ada@Cityofpaloalto.org (Internet). (12) Maintain its existence as an independent, non-profit corporation under the laws of the State of California. (13) Submit all signs or displays to be located on or in the Facility to Project Manager or his/her designee for approval at the first production meeting. All displays may be put up at load-in and must be removed during strike. Inside the Facility, no display materials may be placed upon stucco walls. Lobby displays may be placed only on the lobby display boards, and all fasteners must be removed at the time display is taken down. Nothing may be posted on the exterior walls or doors of the Facility or in the Stern courtyard, except for items in the display case and an approved production name sign hung from the theatre balcony. Marquee signs must be constructed of light weight material, and shall be secured in such a way that the sign is unlikely to become dislodged by normal vibration or seismic activity. Signs shall be of a standard size no larger than ten feet in length and eight feet in height. All marquee signage must be attached to the theatre balcony with rigging so that the sign may be easily removed for limited periods during photography shoots, special events, or building maintenance. (14) Clean and clear the auditorium, stage, paint shop, scene shop, flat dock, and costume shop, green room, dressing rooms, rehearsal hall, hallways and outdoor areas adjacent to theatre and shop. Disassemble and store, to Project Manager’s or his/her designee’s reasonable satisfaction, scenery, properties, and other production elements, within six hours after the final performance or on such other time schedule mutually agreed upon between Contractor and Project Manager or his/her designee and the incoming authorized user of the facilities, if any. The stage shall always be returned to its basic set-up as established by Project Manager or his/her designee unless there is a mutual agreement with the incoming group that has been approved by Project Manager or his/her designee. All items on the STRIKE CHECKLIST are to be performed unless there is a mutual agreement with the incoming group that has been approved by the Project Manager or his/her designee. The Project Manager or his/her designee will sign a copy of the STRIKE CHECKLIST form at the completion of the strike to signify acceptance of clean and neat facilities. (15) Leave storage, paint, scene, and costume spaces clean and clear of Contractor’s materials other than those materials necessary for the ongoing maintenance and repair of the sets and costumes by the Monday following opening performance. (16) Leave all spaces clear, clean and orderly at the end of each use. Rehearsal Hall is to be cleared of all materials, except major set pieces and any rehearsal props, after each daily Page 5 use. Rehearsal Hall is to be completely cleared within twenty-four (24) hours of final use. Kitchen, restrooms and dressing rooms are to be cleaned and cleared after each daily use. Trash, recycling and compostable materials are to be removed from all areas daily. Recyclables and compostable materials are to be placed in the recycling and composting carts near the trash dumpster and garbage and trash are to be placed into the dumpster. Contractor is required to reduce waste, reuse and recycle per the City’s Zero Waste Plan (Appendix I). Office space and hallways are to be kept continually clear, clean and orderly and neither space shall be used for the purpose of set, prop, or costume storage. Materials may not be left or stored any place out-of-doors overnight or when unattended by Contractor’s personnel. (17) Enforce current regulations as established by City with regard to smoking, food and drink in City facilities (Appendix A). Contractor shall provide ushers at all previews and performances to enforce such regulations. Smoking is not permitted inside any City facility. No person shall bring any animal into the theatre. This regulation shall not apply to service animals assisting individuals with disabilities or to animals in training to become service animals. Use of animals on the stage is subject to approval by Project Manager or his/her designee. Food and drink are not permitted in the auditorium, light/sound booth or on stage, unless used as part of a production scene. Food and drink shall be permitted only in approved areas such as the green room and lobby. Contractor shall clean up all food and drink containers daily after use. (18) Contractor will be responsible for cleaning the Lucie Stern hallway restrooms for weekend performances. (19) Comply with City TB test requirement for employees and volunteers of Contractor at any time the City Risk Manager deems it necessary. If minors are involved in the Production, Contractor shall comply with all of the State of California’s rules and regulations regarding Child Labor. (20) Comply with City sound ordinance levels for any outdoor activities, including load-in, strike, dismantling, or disposal. Shop doors facing Hopkins and Harriet Streets shall be closed between 8:00 p.m. and 8:00 a.m. (21) In addition to the Facilities Attendant referenced in Section 5 of the Agreement, pay any additional Attendant according to prevailing rates as set forth in the Municipal Fee Schedule attached as Exhibit G, pursuant to the following (a) For a period of one (1) hour prior to until at least one half (1/2) hour after the completion of each Performance listed in West Bay Opera Production and Exclusive Use Schedule, 2014 – 2015 (Attachment 1). (b) For any Performance not included in Attachment 1, Contractor may add additional performances of the Productions listed in Attachment 1 upon thirty (30) days’ advance notice to City. (c) When using other City facilities at the same time as a Performance listed in ATTACHMENT 1. Page 6 (22) Provide house manager and ushers for every Performance or event whenever the public is in attendance. Contractor shall only engage the services of ushers have been trained in theatre emergency, safety and use procedures usher. Contractor shall submit a list of its trained personnel to Project Manager prior to public performances for each Production. Ushers must be available to assist patrons under all circumstances and must be aware of and able to assist disabled persons. Contractor’s House Manager and ushers must also be available to assist in emergency situations throughout the entire Performance until the audience has left the theatre. Ushers must ensure that wheelchairs, walkers, etc. are not blocking any of the aisles or exits. Ushers shall return seats to the upright position and remove litter from the auditorium and restrooms at the conclusion of each performance. (23) Install and/or remove the removable auditorium seats in designated areas to accommodate wheelchair patrons and as required due to the needs of the Production. (24) Remove from the Facility, at the conclusion of each Production, costumes, properties and sets created by Contractor with Contractor-owned materials, which costumes, properties and sets will remain the property of Contractor. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for Contractor is the responsibility of Contractor and/or its subcontractors, and City assumes no responsibility or liability for their maintenance or loss. Contractor assumes all liability and responsibility for any default on Production expenses. (25) Replace or repair or cause to be replaced or repaired by factory authorized technicians City-owned equipment, instruments or materials identified by Project Manager or his/her designee as having been lost, damaged or destroyed by Contractor or its agents. A written report must be made on a City form whenever City equipment is lost, damaged, or destroyed by Contractor. (26) Upon written application to Project Manager or his/her designee and upon express approval and written authorization of Project Manager or his/her designee, use City-owned properties, sets, costumes, scenery, furniture and equipment for Productions not scheduled in the Agreement. Approval, if any, shall be given to Contractor in writing. In the event any of such items are damaged or destroyed, Contractor shall bear responsibility for the repair or replacement of such items to the reasonable satisfaction of Project Manager. (27) Upon written application to Project Manager or his/her designee at least sixty (60) days prior to the applicable date, request approval to use the Facility for classes, camps or workshops. No later than thirty (30) days prior to the applicable date, the Project Manager or his/her designee shall deliver to Contractor in writing his/her approval or disapproval. Failure to respond shall be deemed approval. In the event of disapproval, then he/she shall briefly explain the reasons therefor. No such activity will be advertised or promoted until it has been approved by the Project Manager or the time for review has passed, whichever occurs first. Page 7 (28) Comply with all State and City laws relating to the sale and consumption of alcoholic beverages. Alcohol is permitted at the Facility if approved by Project Manager, whose approval will not be unreasonably withheld. Unless otherwise specifically permitted and pursuant to City policy, the only alcoholic beverages that may be sold or served at City facilities are wines, including champagne and sparkling wine. If alcoholic beverages are to be sold or distributed free of charge, Contractor must possess a valid On-Sale General Theatre License for the Facility. [TW COMMENT: This is the type of license that is required.] A copy of Contractor’s permit for the sale or distribution of alcoholic beverages shall be provided to Project Manager. Proof of liquor liability insurance where City is named as co-insured with liability of at least One Million Dollars ($l,000,000.00) shall be required. Permits are to be displayed as required by law. It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor. Identification must be checked if the person appears to be under thirty (30) years of age. After each performance, Contractor shall remove all items, including cups, glasses, bottles, napkins and food from the lobby and other areas within the Facility as well as the courtyard. Contractor is required to adhere to City’s Recycling and Zero Waste Program (Appendix I). (29) Shall cause to have present at the Facility at all times when Contractor or any of its employees, subcontractors or volunteers is in the Facility one of Contractor’s designated and City-approved key and/or proximity card holders. Any exceptions to the foregoing requirement must be approved, in writing, by Project Manager or his/her designee. Any exceptions must be approved by Project Manager or his/her designee in writing. (30) Prevent any modifications of a permanent or disfiguring nature of or to the Facility. Contractor may not install or attach anything in or on the Facility without having first submitted a written request to Project Manager and having received written permission from Project Manager or his/her designee. The approval of Project Manager does not relieve Contractor from any responsibility to obtain necessary City permits or Building Department approvals for the modification. Should Contractor violate the provisions of this Paragraph (30), Contractor shall be charged for all repairs necessary to restore the Facility to its original condition and for any additional costs arising from such violation. (31) Immediately report to the police any incidents of a criminal or suspicious nature occurring on City property, and notify Project Manager or his/her designee within twelve hours. If initial notification is verbal, Contractor must subsequently submit the information in writing to Project Manager or his/her designee on a form provided by City. (32) Ensure that the doors to the Scene Shop, Rehearsal Hall, and Costume Shop, as well as any other exterior access doors to any area of the Facility, are not left open, unlocked or left with the locking mechanism disabled, even if only briefly, at any time when the immediate area secured by the door is unoccupied by Contractor. Failure to do this may result in the imposition of greater restrictions imposed on Contractor for access to the Facility, including the possible forfeiture of keys/proximity cards by Contractor and/or restricted access times. Page 8 (33) Complete a City Report of Accident/Property Damage report (Appendix K) for any and all accidents, injuries or property damage if a City employee is not present to fill out the report. (34) Operate and conduct business in compliance with City’s Zero Waste Plan (Appendix I) for all activities including, but not limited to, set construction and strike, food and beverage service, and office activities. The City Recycling Program department can assist with resources for achieving this goal. The goal is to send as little waste to landfill as possible through waste reduction, reuse and recycling. To achieve this goal Contractor must first reduce waste whenever possible. (35) Avoid the use for food/beverage service of disposables, including, but not limited to, Styrofoam and other plastics. Reusable food/beverage service ware should be utilized to the maximum extent possible. Where a reusable food/beverage service option is not available, Contractor shall choose items that are recyclable. For concessions, choose product packaging that is recyclable. (36) Practice reuse before, during and after Production. City shall provide a list of reuse resources to avoid the disposal of construction materials, sets and props. Contractor must recycle construction debris from set materials (e.g. wood, metal). (37) Recycle all materials included in the City’s Recycling Program including paper (all types), plastic containers #1-#7, cardboard, glass bottles and jars, and metal cans. Compostable materials will be disposed of in designated compost waste receptacles. (38) Include on the title page of all production and event programs the following credit: “Use of this facility is made possible through support from The City of Palo Alto, Community Services Department, Division of Arts and Sciences,” and include the official City of Palo Alto logo on the title page or prominent placement within event programs; print in all publicity for the Productions, including, but not limited to, mailings, flyers, posters, brochures, and paid or public service advertising, the statement: “In cooperation with the City of Palo Alto Community Services Department, Division of Arts and Sciences.” The City of Palo Alto, Community Services Department, Division of Arts and Sciences shall also be credited in the Contractor’s list of funders as a “Civic Sponsor.” Page 9 EXHIBIT B RESPONSIBILITIES OF CITY During the Term, City shall: (1) Allow Contractor the exclusive use of the Facility, as defined in Article 2, as scheduled in Attachment 1 for the preparation and presentation of Productions performed under this agreement provided that Contractor submits specific rehearsal schedules, performance schedules and shop use schedules. Any use of City facilities and equipment other than those listed in the Agreement and the Exhibits thereto, which facilities and/equipment are nonetheless required to allow Contractor to perform its Services hereunder are subject to a different contract between City and Contractor. (“Non-Facility Contracts”). (2) Allow the use of the auditorium and the stage for performances and brush-up rehearsals within the period described in Exhibit A, Paragraph 6. (3) Allow the use of the exclusive use of the stage and the auditorium prior to the opening night of the Productions , with the exception of necessary maintenance procedures that may require access to the stage and auditorium during this period, according to the production schedule set forth in Attachment 1. Allow the use of the rehearsal hall, box office, scene shop, paint shop and costume shop according to the schedule as set forth in Attachment 1. Additional facility use may be provided as specified in item (Exhibit B (1); Exhibit A (27)) above; however, priority use of the room will always be given to actual rehearsals of productions covered by a contract with City. City reserves the right to allow other uses of space within the Facility when not in actual, scheduled use by Contractor on a non-interference basis and with at least seventy-two (72) hours’ prior notice to Contractor. (4) Allow Contractor to use all operational production equipment in City’s inventory as requested by Contractor and approved in writing by City. Contractor shall take such equipment "as is" and is responsible for ensuring that such equipment is in a safe condition prior to use and is returned in working condition at the conclusion of its use or of the Production. (5) Monitor all aspects of production with respect to safety issues (Appendix E). If Project Manager or any designee(s) deem(s) that any procedure followed by Contractor is unsafe, he or she has the authority to require the immediate suspension of such procedure. City and Contractor will work together to prevent or quickly mitigate any fire hazards or any items identified by the Fire Department during facility inspections. (6) Provide persons designated by Contractor and approved by Project Manager or his/her designee with keys, proximity cards (up to a maximum of six), and alarm codes for access to the Facility for the sole purpose of carrying out the requirements of the Agreement. Keys, proximity cards, and alarm codes shall not be loaned or transferred and shall be used only by the designated persons. In the event that Contractor fails to properly open or lock and secure City facilities leading to a false alarm call-out or leaves areas of the facility unlocked and unattended, a Two Hundred Dollar ($200.00) penalty Page 10 shall be paid to City on each such occasion. In the event that a designated key holder loses any key or proximity card issued by City, Contractor shall be assessed a Seventy- Five Dollar ($75.00) replacement charge for each key or proximity card or pay for the cost of rekeying or reprogramming the locks of the facility if circumstances indicate it as determined in City’s reasonable judgment. Contractor will be responsible and held accountable for all personnel, properties and activities of Contractor. (7) Have the right, with no notice, to suspend the Agreement if the Facility should be declared uninhabitable for reasons of safety by the proper authorities (e.g., if the building should be damaged in an earthquake and be declared unsafe for occupancy). If there is an outbreak of pandemic flu or other medical emergency and places of public gatherings are closed, City will not assume any financial responsibility for loss of revenue by Contractor. If the Facility is not available due to earthquake, other disaster, or safety related issues, City will not assume any financial responsibility for loss of revenue by Contractor. (8) Have the right to borrow available Community Theatre-owned properties, sets, costumes and scenery for productions scheduled in this Agreement. Costumes, properties and sets created by Contractor with Contractor-owned materials will remain the property of Contractor, and shall be removed from the Facility at the conclusion of the production in which the materials are used. The Project Manager or his/her designee may, on a case-by-case basis, authorize exceptions. All office equipment, construction tools, special effects and lighting equipment purchased and owned by Contractor will remain the private property of Contractor and the City assumes no responsibility or liability for the loss or maintenance of such materials. All equipment, instruments, costumes and any other materials rented, borrowed or owned by any subcontractor, agent or person for the Contractor is the responsibility of the Contractor and/or its subcontractors, and the City assumes no responsibility or liability for its maintenance or loss. Page 11 EXHIBIT C GENERAL CONDITIONS (1) City. The Manager Arts-Children’s Theatre is hereby designated Project Manager for City, who shall render overall supervision of the progress and performance of this Agreement by City. All City services set forth in this Agreement shall be performed by City under the overall supervision of Project Manager or his/her designee. Contractor shall go through Project Manager or his/her designee in all matters dealing with City policies, funding, facilities, equipment and other City departments outside the Facility. (2) Contractor. Contractor shall assign a single Project Director who shall have overall responsibility for the compliance of Contractor with the Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a different Project Director, Contractor shall notify City immediately of same. The Project Director shall be responsible for all actions of Contractor. The Project Director shall also be responsible for disseminating to appropriate personnel all communication and information from City. (3) Access. Contractor shall not prevent Project Manager, facility maintenance personnel, and/or others specifically designated by Project Manager from access to the Facility; provided, however, that City shall use its best efforts not to disrupt the activities of Contractor as permitted by the Agreement. The Project Manager and others specifically designated by Project Manager shall attempt to coordinate such access if possible. Notwithstanding the foregoing, except in the case of emergency or if they are present on the premises as members of the audience or specifically invited into the backstage areas of the theatre, Project Manager, facility maintenance personnel and/or others specifically designated by the Project Manager shall not enter the auditorium or backstage areas during public performances of a production. (4) Days Defined. The term "days" shall mean calendar days. (5) Qualifications. Contractor represents that it is qualified to furnish the Services described under the Agreement. (10) Ticket Sales: (a) Contractor’s budget for the Term of the Agreement is attached hereto, marked “Attachment 2” and incorporated herein by reference as though fully set forth herein. (b) Contractor shall be responsible for sale of season tickets and single tickets, depositing of revenue and reporting of revenue and expenditures, and shall place available tickets for each Production for sale at the theatre box office one hour prior to each performance. Until one (1) hour prior to the beginning of a Performance, Contractor shall not sell (a) seat numbers C1, C2, D1, D2, D3, and D4; (b) either (i) the block of seats T2, T4, T6, T8, T10, U2, U4, U6, U8 and U10 Page 12 or (ii) the block of seats T1, T3, T5, T7, T9, U1, U3, U5, U7 and U9 for the purpose of making such seats available for the disabled; provided, however, that this Section 10(b) shall not apply to the sale of tickets for such seats to persons who identify themselves as disabled when they purchase their ticket. (c) Contractor agrees the price of admission for the season shall be as set forth in Attachment 3. (d) Contractor shall remit to City a surcharge in the amount of Two Dollars ($2.00) for each and every ticket sold either through subscription, group, individual, promotional or any other means. The foregoing surcharge is due within thirty (30) calendar days the closing date of the Production. The word “sold” as used in this Paragraph (10)(d) is to include any tickets given in exchange for monetary consideration, including donations. City may, in its discretion, add a three percent (3%) surcharge levied for payments received between 31 days and 60 days after the closing date of the Production, a four percent (4%) surcharge levied for payments received between 61 days and 90 days after the closing date of the Production, and a five percent (5%) surcharge levied for payments received in excess of 90 days of the closing date of the Production. Payment must be accompanied by the production report specified in section C(13), “PRODUCTION REPORTS AND RECORDS,” item (a) before payment will be considered to have been made. (e) Contractor shall provide City, when requested by Project Manager or his/her designee, with at least six (6) complimentary tickets for each Production on the date(s) requested. Best available seating will be provided to City if any seats are available at the time of the request. (f) Contractor may operate an intermission snack concession during each Performance under this Agreement. Contractor shall conduct such operation in a safe, clean manner and shall hold City harmless from any claim or demand or liability of any nature whatsoever which may arise out of such operation. If alcoholic beverages are to be sold or distributed free of charge, Contractor shall have on display a California State A.B.C. Permit and provide Project Manager with proof of liquor liability where City is named as co-insured with liability of at least one million dollars ($l,000,000.00) (See Exhibit A (29) above). It is the responsibility of Contractor to ensure that no alcoholic beverage is served to a minor by checking I.D.’s if the person appears to be under thirty years of age. Food and drink may not be taken into the Auditorium or the Light/Sound Booth at any time. Contractor shall remove all cups, glasses, bottles, napkins and food from the lobby, green room, and any other affected areas, including the courtyard, after each performance. Contractor is required to adhere to City’s Zero Waste Plan (Appendix I). (11) Composition of Contractor. Throughout the term of this Agreement, Contractor shall remain an independent, non-profit public benefit corporation under the laws of California and be governed by a Board of Trustees. Any changes in Contractor’s Articles of Page 13 Incorporation, By-Laws, or tax-exempt status shall be reported by Contractor immediately to Project Manager. Not more than twenty-five percent (25%) of the persons serving on the governing board of Contractor may be interested persons. "Interested persons" means any person currently being compensated by Contractor for services rendered to it, whether as a full or part-time employee, independent or otherwise, but excluding any reasonable compensation paid to a director as director. (12) Fiscal Responsibilities of Contractor. (a) Fiscal Agent. Contractor shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of Contractor, including the receipt and disbursement of Contractor funds. Contractor shall provide City with the name of a fiscal agent (Attachment 4) and notify Project Manager within five (5) business days of any changes occurring during the Term. Contractor shall have sole responsibility for the safekeeping of Contractor tickets and monies. (b) System of Accounts. Contractor and its fiscal agent shall establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to the review and approval of City staff. (c) Financial Records. In support of its system of accounts, Contractor shall maintain complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, and bank statements. City may inspect these records at Contractor’s office upon reasonable advance notice and during normal business hours upon request. NOTE: Contractor’s cash receipts are not to be stored on the Premises between Productions. (d) Audit of surcharge payments. Contractor shall retain for a period of at least three (3) years bar-coded electronic records of tickets sold, sales records, and a verified report of sold and unsold tickets which must be made available to City of Palo Alto Auditor upon request. (13) PRODUCTION REPORTS AND RECORDS. (a) Reports. On reasonable notice and with reasons specified, Contractor shall grant Project Manager and/or City’s Auditor access to all Contractor records relating to this Agreement, including performance records, data, statements, and reports. (b) Tax Form 199. A copy of Contractor’s most recently filed California State Tax Form 199, "California Exempt Organizations Annual Information Return" must be filed with Project Manager or his/her designee within fifteen (15) days of when it is due to the State of California and shall also be attached to this agreement prior to its final approval (Attachment 5). (14) CORRECTIVE ACTION REQUIREMENT. Notwithstanding the requirements of this Agreement, in the event City should determine from any source, including but not limited Page 14 to reports submitted by Contractor under this Agreement or any evaluation report from any source, that Contractor may not be in compliance with any provision of the Agreement, City may forward to Contractor written notice of same. Such notice shall specify with particularity the nature of the condition(s) or issue(s) that require(s) corrective action and may include a recommendation as to appropriate corrective action. Within fifteen (15) days of City’s request, Contractor shall submit its written response to the notice, which response shall set forth its view of the alleged violation and its proposed plan, if any, for corrective action. Upon request of either Party, the Parties shall meet within five (5) days thereafter to discuss the alleged violation and proposed corrective action. (15) CONTRACTS WITH OTHER AGENCIES. Contractor agrees not to enter into any contract or agreement with another person or agency that will materially interfere with or inhibit the full performance of the Services to be provided by Contractor under this Agreement. Contractor agrees to terminate as soon as legally possible any contract or agreement which will materially interfere with or inhibit the full performance of the services to be provided by Contractor to City under this Agreement. Nothing herein is intended to prohibit Contractor from applying for, and receiving, supplementary funding from other than City sources so long as any agreement required for such funding does not materially interfere with or inhibit the full performance of the services to be provided by Contractor under this Agreement. Contractor is specifically encouraged to seek such supplementary funding. Any agreement between Contractor and the Mountain View Center for the Performing Arts or any other theatrical venue shall not be deemed to violate this Section (15). (16) INTEREST OF CONTRACTOR. Contractor covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of its Services hereunder. Contractor further covenants that, to the best of Contractor’s knowledge and belief, in the performance of its Services under the Agreement, no subcontractor or person having such an interest shall be employed by Contractor. It is expressly agreed that, in the performance of the Services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of City. (17) ASSIGNMENT. Both Parties shall give their personal attention to the faithful performance of this Agreement and shall not assign, transfer, or convey the Agreement or any right, title, or interest in or to the same or any part thereof without the prior written consent of the other Party, and then only subject to such terms and conditions as the other Party may require. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment without such approval shall be void and, at the option of the other Party, shall terminate this Agreement and any license or privilege granted herein. This Agreement and the Parties’ respective interests herein shall not be assignable by operation of law without the prior written consent of the other Party. (18) SUBCONTRACTORS. Contractor shall be responsible for employing or engaging all persons necessary to perform the Services of Contractor hereunder. All subcontractors are deemed to be employees of Contractor and Contractor agrees to be responsible for Page 15 their performance. Contractor shall give its personal attention to the fulfillment of the provisions of the Agreement by all of its employees, participants, volunteers, and subcontractors. (19) INDEMNITY. Except to the extent the same arise from the negligence or willful misconduct of City, its officers, contractors, agents, employees, or persons brought onto the Premises by or through City, Contractor shall defend, indemnify and hold harmless City, its officers, contractors, agents, and employees and the Premises from and against (a) any injury or death or property damage arising from the use or occupancy of the Premises by Tenant, its officers, agents, employees or any persons brought onto the Premises by or through Contractor, (b) any claims or demands made against City, its officers, agents or employees by reason of any infringement or alleged infringement of any copyright or trademark caused by or alleged to have been caused by Contractor or any subcontractor under this Agreement, (c) any penalties imposed on account of the violation of any law or regulation or of any term or condition of any permit in connection with this Agreement, or (d) any damage arising under this Agreement from any loss or damage to materials and equipment owned, rented or borrowed by Contractor, its employees, subcontractors, participants, volunteers, sponsors or any others engaged in connection with the Services rendered by Contractor under the Agreement. (20) INTOXICATION. Contractor agrees to be responsible for injuries or damage caused by any of its directors, officers, employees, agents, subcontractors, or volunteers who are under the influence of alcohol, drugs, hallucinogens or narcotics, whether or not legally prescribed. Neither Contractor nor City shall permit any of Contractor’s employees or volunteers discovered to be under the influence of any of the foregoing substances from remaining in any facility used under the terms of this Agreement and City reserves the right of denying such persons further participation in the Productions. Consumption of alcoholic beverages or use of illegal drugs at the Facility is expressly forbidden by any person working for Contractor, paid or volunteer. This includes all staff, actors, crew and musicians. (21) WORKER'S COMPENSATION. Contractor certifies that it is aware of the provisions of the Labor Code of the State of California, which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of the Code, and it certifies that it will comply with such provisions during the Term of the Agreement. (22) INSURANCE. Contractor, at its sole cost and expense, shall obtain and maintain in full force and effect throughout the Term of the Agreement insurance coverage insuring not only Contractor and its subcontractors, if any, but also, with the exception of workers' compensation and employer's liability insurance, City, its officers, agents, and employees and each of them. City is to be named as Additional Insured with liability coverage of at least One Million Dollars ($1,000,000.00). A copy of the certificate(s) of insurance shall be attached to the Agreement and shall be filed with City concurrently with the execution of this Agreement. Said certificate shall be subject to the approval of City Attorney and shall contain an endorsement stating that Page 16 said insurance is primary coverage and will not be canceled or altered by the insurer except after filing with City Clerk thirty (30) days' written notice of such cancellation or alteration. Current certificates of such insurance shall be kept on file at all times during the Term of the Agreement. (23) WEAPONS. No firearms or other weapons, whether loaded or not, shall be allowed in the Facility or any other City property. Stage weapons and firearms designed solely for the use of blank cartridges will be allowed if they are being used as a prop in the current Production, but must be stored, when not being used, in a secure manner by Contractor’s stage manager or his/her designee. (Please reference City’s Danger Policy, Appendix L.) (24) LEGAL COMPLIANCE. Contractor and all its paid employees, subcontractors, and volunteer participants are required to abide by all applicable federal, state and local laws and ordinances. Page 17 EXHIBIT D WEST BAY OPERA ADDENDUM Contractor’s (WEST BAY OPERA’s) personnel shall be permitted to manage, distribute and collect the hearing-impaired devices (“headsets”) that City owns for use by hearing-impaired persons at all Performances at the Facility, subject to the following restrictions: (a) Contractor shall verify that all headsets and batteries are present and functioning normally and shall report to Project Manager or his/her designee any missing or broken items before taking control of them for the run of the Production. (b) For any damage or loss of any headset while under Contractor’s control, Contractor shall promptly, upon request, pay City the fair market price for any necessary replacement or repair of any component of the headsets, as such replacement or repair is reasonably determined by Project Manager or his/her designee. (c) Contractor will diligently ensure the security of the headsets, in a manner approved by Project Manager or his/her designee, when the headsets are not in use. When the headsets are not so secured, Contractor will not leave the headsets unattended. (d) Contractor will provide at least one (1) person in the Facility lobby, whose sole responsibility will be to distribute and collect the headsets, as the case may be, pursuant to the following: (i) Beginning one-half (1/2) hour before each Performance until ten (10) minutes after the Performance begins; (ii) At all times during any and all intermissions; and (iii) From the end of the Performance until all of the headsets have been returned. (e) Contractor shall collect a Driver’s License or credit card as security for the loan of a headset, which Driver’s License or credit card will be returned to its owner upon return of the headset. Contractor will implement procedures for the safe handling of the Driver’s Licenses and credit cards and their return to their owners. (f) Contractor’s responsibility at the end of each performance will include the following: (i) Clean and otherwise sanitize all the earpieces by swabbing them with isopropyl alcohol swabs. (ii) Turn off the on/off/volume switches on all returned headsets and remove the batteries, placing the batteries into the battery charger. (iii) Return all headsets and batteries to their storage case. Page 18 (iv) Verify the presence of all twenty (20) headsets and batteries. (v) Return the headset storage case to its place in the rolling cart. (vi) Return the rolling cart to the House Manager’s Closet. (vii) Be sure the rolling cart is plugged into an electrical outlet. (viii) Make sure the battery charger is getting power, as indicated by the red light on the top of the case. (ix) Padlock the rolling cart’s doors shut, using either the padlock provided by City or a padlock supplied by Contractor, provided that Project Manager or his/her designee has been given a copy of the key or the combination. (x) Immediately report to City’s attendant at the Facility any missing headsets, and turn over to the attendant any malfunctioning headsets. The provisions of this Exhibit D may be terminated upon reasonable notice at any time by Project Manager or his/her designee, and may be terminated upon thirty (30) days’ prior written notice by Contractor. Page 19 EXHIBIT E NON-DISCRIMINATION FORM Certification of Nondiscrimination: As suppliers of goods or services to City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regard to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference and that they are in compliance with all federal, state, and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. WEST BAY OPERA, a California non-profit public benefit corporation Signature: ____________________________________________________________ By: José Luis Moscovich Managing Director Signature: ____________________________________________________________ By: Board Officer Page 20 EXHIBIT F INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (City), AT THEIR SOLE EXPENSE, SHALL, FOR THE TERM OF THE CONTRACT. OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW AND AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE City OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL Page 21 INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CONTRACTOR AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION City OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Page 22 EXHIBIT K CITY OF PALO ALTO NON-DISCRIMINATION POLICY Page 23 LIST OF APPENDICES Appendix A Regulations Of The City Of Palo Alto Regarding Prohibited Conduct in Community Centers and Theatres Appendix B The City of Palo Alto Injury and Prevention Program Appendix C Policy for Sale of Alcoholic Beverages Appendix D Operations Manual Appendix E Safety Procedures and Guidelines Appendix F Building Emergency Procedures Appendix G Procedure for Adjusting the Forestage Height Including Use of the Scissor Lift Appendix H House Manager’s Guide Appendix J Costume Room Guidelines Appendix K City Report of Accident/Property Damage Appendix L City’s Danger Policy Page 24 LIST OF ATTACHMENTS ATTACHMENT 1 West Bay Opera Production and Exclusive Use Schedule, 2014 – 2015 ATTACHMENT 2 Contractor’s Budget for the Term ATTACHMENT 3 Contractor’s Pricing Policy ATTACHMENT 4 Name of Contractor’s Fiscal Agent ATTACHMENT 5 Contractor’s Most Recently Filed California State Tax Form 199 Page 25 City of Palo Alto (ID # 5164) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Approval of Contract with the Downtown Streets Team Title: Approval of a Three Year Contract with Downtown Streets, Inc. in a Total Amount Not to Exceed of $470,616 for Maintenance Services for the City's Five Downtown Parking Garages, Downtown Sidewalks and Alleys, Lytton and Cogswell Plaza, the Stanford/Palo Alto Playing Fields, and the Old Community Garden, and Provide Outreach Case Management Services to the Downtown Core with the Intent of Linking Homeless Individuals to Community and Housing Services. From: City Manager Lead Department: Public Works Recommendation Staff recommends that City Council approve,and authorize the City Manager or his designee to execute,the attached contract with the Downtown Streets Team, Inc.(Attachment A) in the amount of $156,872 per year for a term of three years in an amount not to exceed $470,616 for cleaning in the City’s five downtown parking garages and on University Business District sidewalks, alleys and plazas; peer to peer outreach;and case management services for the homeless. Background The downtown business district is maintained in a safe, clean and appealing manner. Downtown Palo Alto attracts visitors, shoppers, diners, employees and local residents,who expect a positive experience when using downtown services. Not only is cleanliness an important civic priority, it is essential to maintaining a healthy and vital economic environment which continues to generate healthy tax revenues. The Downtown Streets Team (DST) was founded by the Palo Alto Business Improvement District (BID) in the hopes of reducing panhandling, to provide re- City of Palo Alto Page 2 entry skills to the homeless and to clean downtown’s streets. The DST is a program aimed at reducing homelessness by modeling positive behavior among the homeless population. By participating in the program the homeless are able to work with a case manager to work towards obtaining housing and other life support credits. Additionally, DST staff is in a unique position to provide outreach and discourage inappropriate behaviors particularly in the parking garages. Each member of DST is evaluated on his or her individual performance and is recognized for his or her accomplishments. The skills learned through this program can then be used by the individuals to seek further employment. The City has been using DST since 2006 and because of the increased DST presence in the downtown garages the homeless problem in the downtown area has been somewhat reduced. In 2010, discussions took place with downtown stakeholders including the BID and Palo Alto Downtown Professional and Business Association (PAd), and a combination of services was requested to raise the standards of cleanliness in the area. After these discussions, it was decided to increase the current DST level of service.The enhanced services included emptying overflowing garbage receptacles on University Avenue on Saturday and Sunday afternoons, cleaning the alleyways, picking up litter in the five parking structures (S & L, R, J, Q and Civic Center), and providing a roving patrol moving every 30 minutes through each garage where facilities are checked for homeless persons, suspicious vehicles, skateboarders, roller skaters, bicyclists, and other safety hazards which are reported to the appropriate department for cleanup or removal. City staff also inspects downtown areas periodically and any problems or issues related to the DST work are addressed and responded to within 48 hours. Discussion DST staff provide maintenance services seven days a week in the parking garages, sidewalks and alleys; Lytton and Cogswell plazas; and various other locations in the downtown area. Services include: picking up litter and emptying trash recepticals; reporting safety hazards and areas in need maintenance to City staff; wiping down and rearranging tables and chairs in Lytton Plaza; reporting vandalism and graffiti; and notification of suspicious persons and vehicles to the authorities. DST has been working with City staff to develop a schedule to track and monitor their activities on a daily basis. This schedule of performance is outlined in Exhibit B of the attached contract. City of Palo Alto Page 3 As part of the contract the contractor will provide a Case Manager as a conduit between DST and the City. In addition to the structured schedule for the DST workers, the Case Manager has additional requirements. The Case Manager shall provide outreach services at a minimum of four hours per week. DST shall also provide Case Management sessions and project support at a minimum of twelve (12) hours per week. The DST Case Manager will provide a monthly written report to the City and attend a quarterly meeting with a Community Services Department manager. They shall also attend monthly meetings with PAd to report on the current progress of the DST. Since DST is the only vendor that uses a peer-to-peer model to provide outreach to homeless individuals while providing services to the downtown area, this contract meets the requirements for exemption from solicitation based on Municipal Code section 2.30.360 (D) Resource Impact Funding for year one of the contract was approved in the FY 2015 University Avenue Parking Permit Fund budget ($132,248) and the Community Services Department’s General Fund operating budget ($24,624). Funding for contract years two and three are subject to the annual appropriation of funds.As part of the FY 2016 budget development, staff intends to review the funding sources for this contract. The cost of this contract remains the same as currently paid to Downtown Streets Team, Inc. for the same service level. Policy Implications Approval of the agreements is consistent with existing City policies. Environmental Review These services do not constitute a project for the purposes of the California Environmental Quality Act. Attachments: ·A -Downtown Streets Team Contract (DOC) 1 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc FOR: MINOR PUBLIC WORKS, JANITORIAL, MAINTENANCE, OTHER NON-PROFESSIONAL SERVICES CITY OF PALO ALTO CONTRACT NO. 15156621 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 11th day of NOVEMBER, 2014, by and between the CITY OF PALO ALTO, a California Chartered Municipal Corporation (“CITY”), and DOWNTOWN STREETS TEAM, INC.,a California public benefit non-profit corporation, located at 1671 The Alameda, Suite 306, San Jose, Ca 95126,Telephone Number: (650) 305-1174 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows: 1.SERVICES. CONTRACTOR shall provide or furnish the services (“Services”) described in the Scope of Services, attached as Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: “A” -Scope of Services “B” -Schedule of Performance “C”-Compensation “D” -Insurance Requirements “E” -Performance and/or Payment Bond “F” -Liquidated Damages CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from November 11, 2014to November 10,2017 inclusive, subject to the provisions of Sections Q and V of the General Terms and Conditions. 4.SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed compensation for the full performance of the Services and reimbursable expenses, if any: Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 2 the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6.COMPENSATION DURING ADDITIONAL TERMS. Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 3 E.TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F.COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G.DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best’s Key rating of A-:VII or higher and which are otherwise acceptable to the City’s Risk Manager. The City’s Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City’s Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY’s Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY’s Risk Manager. CONTRACTOR shall include all subcontractors as insured Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 4 under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. P.WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q.TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to Contractor’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. R.ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent of the CITY. S.CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no City Officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 5 T.GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. U.ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. V.NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. W.ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor shall comply with the following zero waste requirements: ·All printed materials provided by Contractor to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. ·Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. ·Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City, for reuse or recycling. Contractor shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. X.AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Y.CONTRACT TERMS: All unchecked boxes do not apply to this Contract. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO DOWNTOWN STREETS TEAM INC ______________________________________ By________________________________________ City Manager or Designee (Required on contracts $85,000 and over)Name _____________________________________ Title_______________________________________ ____________________________________Telephone: _______________________________ Purchasing Manager or Designee Approved as to form: 6 Rev.July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc _____________________________________ EXHIBIT A SCOPE OF SERVICES STREET CLEANING SERVICES Task 1 Contractor shall perform ongoing Street Cleaning Services, which includes cleaning of parking garages, sidewalks and alleyways in the Palo Alto area. These services shall be performed according to the attached schedule, and shall be performed at a minimum by a two person crew. The level of service provided shall include, but not be limited to, picking up litter, emptying trash receptacles along University Avenue, reporting suspicious persons and vehicles to the proper authorities, reporting safety hazards such as raised sidewalks and lights that are out, and reporting cases of vandalism and graffiti. Contractor shall also, through the use of their employees, encourage other homeless individuals to explore other options, and to explain all of the services that are available to homeless individuals. Task 2 Contractor shall provide Cleaning Maintenance Services for the following locations at the prescribed frequencies: Lytton Plaza –Maintenance service shall include, on a daily basis, the removal of trash and litter, the re- arranging of chairs in the plaza, and wiping down all tables and chairs located in the plaza. Garbage receptacles shall be serviced as well to ensure that no receptacles are overflowing. All maintenance shall be completed by 9:00 A.M.each morning. Old Community Garden between Red Cross and El Camino Park –Maintenance service shall include removal of trash, litter, and debris, as well as the servicing of one trash receptacle located near the restroom. Frequency of this service shall be twice a week and occur on Mondays and Wednesdays. Stanford/Palo Alto Playing Fields –Maintenance service shall include removal of trash and litter, manual removal of weeds taller than one (1)ft.in height in landscape areas (between parking lots and street), and servicing trash receptacles (contractor may use on-site dumpster for disposal at this location). Frequency shall be three times a week, and shall be conducted on Friday, Saturday, and Sunday before 9:00 A.M. Cogswell Plaza –Maintenance service shall include removal of trash, litter and debris from landscape areas and concrete/asphalt pathways, as well as servicing trash receptacles. Frequency shall be daily for this location. Task 3 Contractor shall provide Outreach Case Management to the downtown core with the intent of linking homeless individuals to community and housing services. The case manager shall meet with homeless individuals who are living on the streets of downtown Palo Alto and in parking garages in the downtown core. The case manager shall provide outreach services at a minimum of four hours per week. Contractor shall also provide Case Management sessions and project support at a minimum of twelve (12) hours per week. Case Manager shall also attend quarterly meetings with a Palo Alto Community Services Department (CSD) manager. Contractor shall provide a monthly report to CSD Manager that reports data on the number of homeless individuals found in the garages, total number of interactions with homeless individuals, number of follow ups with homeless individuals, number of homeless individuals who report that they do not want to engage in any services offered, and other pertinent information that conveys the barriers that homeless individuals face in accessing, following up with and obtaining needed services. The Case Manager shall also attend monthly meetings of the Palo Alto Downtown Business and Professional Association (PAd) to act as a liaison between the business owners who have a vested interest in the services being provided, city staff who manage the contract, and the Downtown Streets Team who run the program. The Case Manager shall make a brief presentation at the monthly PAd meetings to relay what efforts have been undertaken since the last meeting. 7 Rev.July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc EXHIBIT B SCHEDULE OF PERFORMANCE CHOOSE ONE OF THESE ALTERNATIVES TO DESCRIBE SCHEDULE: Alternative 1. CONTRACTOR shall perform the Services according to the following schedule: Day Time Activities Monday 6-8 AM 8 AM 8:30-10 AM 10-10:15 AM 10:15-11:30 AM 11:30-noon AM Noon Noon-1 PM 1-2 PM 2-2:15 PM 2:15-3 PM 3-3:30 PM 3:30-4 PM 4 PM 8 PM-Midnight Garage cleaning and outreach Shift change at box Red Cross Cleaning Break at box and shift change Alleyways (Downtown North and South) Lytton Plaza Shift change at box University Ave Downtown South Break Downtown North Cogswell Park Lytton Plaza Dismissal at box Garage cleaning and outreach Tuesday 6-8 AM 8 AM 8:30-9 AM 9-10 AM 10-10: 15 AM 10:15-11AM 11-noon AM Noon Noon-1 PM 1-2 PM 2-2:15 PM 2:15-3 PM 3-3:30 PM 3:30-4 PM 4 PM 8 PM-Midnight Garage cleaning and outreach Shift change at box Lytton Plaza Downtown South and Alleyways Break at box and shift change Cogswell Plaza Downtown North and Alleyways Shift change at box University Ave Downtown South Break Downtown North Cogswell Park Lytton Plaza Dismissal at box Garage cleaning and outreach Wednesday 6-8 AM 8 AM 8:30-10 AM 10-10:15 AM 10:15-11:30 AM Garage cleaning and outreach Shift change at box Red Cross Cleaning Break at box and shift change Alleyways (Downtown North and South) 2 Rev.July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 11:30-noon AM Noon Noon-1 PM 1-2 PM 2-2:15 PM 2:15-3 PM 3-3:30 PM 3:30-4 PM 4 PM 8 PM-Midnight Lytton Plaza Shift change at box University Ave Downtown South Break Downtown North Cogswell Park Lytton Plaza Dismissal at box Garage cleaning and outreach Thursday 6-8 AM 8 AM 8-9 AM 9-10 AM 10-10: 15 AM 10:15-11:15 AM 11:30 AM Garage Cleaning Shift change at box Team 1 Team 2 Lytton Plaza, then Cogswell Park Downtown South and Alleyways Downtown North and Alleyways University Ave Break at box Downtown North and alleyways University Ave Dismissal at box Friday 6-8 AM 8 AM 7-10 AM 8:30-9 AM 9-10 AM 10-10: 15 AM 10:15-11AM 11-noon AM Noon Noon-1 PM 1-2 PM 2-2:15 PM 2:15-3 PM 3-3:30 PM 3:30-4 PM 4 PM 9 PM-1 AM Garage cleaning and outreach Shift change at box Palo Alto/Stanford Playing Fields Lytton Plaza Downtown South and Alleyways Break at box and shift change Cogswell Plaza Downtown North and Alleyways Shift change at box University Ave Downtown South Break Downtown North Cogswell Park Lytton Plaza Dismissal at box Garage cleaning and outreach Saturday 6-8 AM 7-10 AM 8 AM 8-8:30 8:30-9:30 AM 9:30-10 AM Garage cleaning and outreach Palo Alto/Stanford Playing Fields Shift change at box Lytton Plaza Downtown North Cogswell Park 3 Rev.July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 10-10: 15 AM 10:15-11 11-11:45 Noon 9 PM-1 AM Break at Box Downtown South University Ave Dismissal at box Garage cleaning and outreach Sunday 6-8 AM 7-10 AM 8 AM 8-8:30 AM 8:30-10 AM 10-10: 15 AM 10:15-11 11-11:30 Noon 8 PM-Midnight Garage cleaning and outreach Palo Alto/Stanford Playing Fields Shift change at box Lytton Plaza Garbage cans on University Break at Box Downtown South and North (split teams) Cogswell Dismissal at box Garage cleaning and outreach Alternative 2. CONTRACTOR shall perform the Services so as to complete each task within the time period specified below. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. Upon request CONTRACTOR shall provide a detailed schedule of work consistent with the schedule below. Task Complete ___Days or (Describe task)___Weeks From NTP 1. 2. 3. 4. 5. 6. 7. 8 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc 9 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc EXHIBIT C SCHEDULE OF FEES CHOOSE ONE OF THE FOLLOWING TYPES OF STANDARD COMPENSATION LANGUAGE AND MODIFY AS NECESSARY ALTERNATIVE 1. Compensation based upon deliverables CITY shall compensate CONTRACTOR for performance of the Services according to the following schedule, with the maximum amount of compensation not to exceed dollars ($): PHASE OF PROJECT DELIVERABLE % OF TOTAL AMOUNT (INCLUDING REIMBURSABLE S 1. PHASE ONE 2. PHASE TWO 3. PHASE THREE 4. ACCEPTANCE TEST TOTAL 100% All Payments are based upon City’s acceptance of Contractor’s performance of the phase as evidenced by successful completion of the Deliverable for that Phase. City shall have no obligation to pay unless Contractor has successfully completed and City has approved the Project Phase for which payment is due. The maximum amount of compensation to be paid to Contractor, including both payment for services and reimbursable expenses, shall not exceed Dollars ($). Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. ALTERNATIVE 2. Compensation based upon task 10 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc CONTRACTOR shall perform the tasks as described and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for the Services including reimbursable expenses, does not exceed $156,868.00. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. DESCRIPTION OF TASK NOT TO EXCEED COMPENSATION PER TASK INCLUDING REIMBURSABLES Task 1 $107,748.00 (Street Cleaning Services) Task 2 $29,124.00 (Cleaning Maintenance Services) Task 3 $20,000.00 (Outreach Case Manager) Task 4 $ ( ) Task 5 $ ( ) ALTERNATIVE 3. Compensation based upon fee schedule CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to Contractor, including both payment for services and reimbursable expenses, shall not exceed Dollars ($). Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. INSERT DETAILED RATE SCHEDULE 10 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY -EACH PERSON -EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I.INSURANCE COVERAGE MUST INCLUDE: A.A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B.A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C.DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III.ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” 11 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc A.PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B.CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C.NOTICE OF CANCELLATION 1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 12 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc EXHIBIT E BONDS [ATTACH BOND FORMS IF BONDS ARE REQUIRED] 13 Rev. July 11, 2011 C:\Users\lnavarr\appdata\local\temp\minutetraq\paloaltocityca@paloaltocityca.iqm2.com\work\attachments\11859.doc EXHIBIT F LIQUIDATED DAMAGES [OPTIONAL] It is mutually agreed by Contractor and City that if completion of the Services to be provided by the Contractor under this Agreement is delayed beyond the time specified in the Schedule of Performance, plus any authorized extensions of time, City will suffer damages and will incur other costs and expenses of a nature and amount which is difficult or impractical to determine. Accordingly, City and Contractor, agree, as a method to fix the damages and not as a penalty, that in the event of any such failure to perform, the amount of damage which shall be sustained by City will be the sum of $for each and every calendar day during which the Services remain uncompleted beyond the time specified for completion, plus any authorized extension of time. Should Contractor fail to pay the liquidated damages to City, Contractor agrees that City may deduct and withhold the amount of the unpaid damages from any amounts due or that may become due to Contractor under this Agreement. BY PLACING THEIR INITIALS BELOW, CITY AND CONTRACTOR ACKNOWLEDGE THAT THE AMOUNT SET FORTH ABOVE HAS BEEN AGREED UPON AS THE PARTIES’ REASONABLE ESTIMATE OF CITY’S DAMAGES. __________________________ CITY CONTRACTOR City of Palo Alto (ID # 5111) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Approval of Blanket P.O. for Delivery and Off Haul of Construction Materials for Utl, PWKS & ASD Title: Request for Approval of a Blanket Purchase Order with TMT Enterprises in an Amount Not to Exceed of $2,407,850 to be the Primary Supplier of New Construction Materials and Haul Away of Construction Debris from the Municipal Service Center to Off-Site Recycling and Disposal for the Utilities, Community Services and Public Works Department for a Three Year Period from October 27, 2014 through October 26, 2017 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1)Approve and authorize the City Manager or his designee to execute a blanket purchase order with TMT Enterprises, Inc. for delivery of new construction materials and haul away of construction debris in the amount not to exceed $779,013 for the first year;and 2)Approve and authorize the City Manager or his designee to authorize a blanket purchase order for two additional years in the amount not to exceed $802,383 for the second year, and $826,454 for the third year based on the proposer’s escalation rate of 3% annually. The total amount not to exceed for the term of the three year blanket purchase order is $2,407,850. Background The City has three different departments using the various products that were solicited for in RFQ #154872. The Utilities Department uses construction materials City of Palo Alto Page 2 such as sand, gravel and asphalt cold mix for back fill and restoration of trenches while Parks Department purchase top soil, organic compost and infield mix for landscaping and restoration of playgrounds. The blanket purchase order will also be used by Public Works and Utilities departments for off hauling construction debris such as used asphalt, concrete and dirt to a landfill or a recycling center for proper disposal or reuse. Discussion Due to a high volume of construction and maintenance activities that occur continually throughout the year, it is vital that the City have a reliable supplier of sand, rock and gravel products year-round. Of equal importance is the ability to remove unwanted materials for city premises in a timely manner. Doing so frees up valuable space that is used to store construction material for operational needs, and also to ensure that adequate materials are on-hand in the event of an emergency that would require construction work to take place. Bidding and Selection Process A Request for Quotation (RFQ) was sent to select vendors and to builder exchanges on August 6, 2014. Bids were received from six qualified vendors on August 26, 2014. Only two suppliers bid on all of the requirements of the solicitation, and TMT Enterprises was determined to be the lowest responsible bidder. As shown in Table 1 below, only two suppliers bid on all of the items that were listed in the bid package. Table 1 RFQ #154872 Results Company Bidding Bid for Schedule A (For Utilities Department) Bid for Schedule B (For Parks Department) Haul-Away Costs (Utilities and Public Works) Total Cost TMT Enterprises $188,062.45 $207,951.00 $383,000.00 $779,013.45 LS Trucking $234,240.00 $391,930.00 $586,250.00 $1,212,420.00 City of Palo Alto Page 3 E.J. Pires Trucking 156,555.55 No Bid $564,120.00 $720,675.55 Quikrete California $65,000 (no bid on multiple items) No Bid No Bid $65,000 Lyngso $164,963.25 (no bid on one item) $85,065.00 (no bid on multiple items) No Bid $250,028.25 Graniterock $222,461.90 $40,880.00 (bid on one item only) No Bid $263,341.90 Staff is recommending that Council approve and authorize the blanket purchase order for delivery and off haul of construction material to TMT Enterprises. After evaluation of all the bids, staff chose TMT based on the contractor’s ability to deliver all raw materials and haul away the construction debris at the lowest cost. TMT Enterprises has been the City’s supplier of raw construction materials for several years, and has a proven track record of delivering a quality product in a timely manner. TMT also has diligently worked with the on-site City staff to coordinate delivery and pick up time on the same trip, thus shortening the storage time of construction debris at City facilities. Resource Impact Funding for the purchase of material under this purchase order is available in the FY 2015 Public Works, Utility, and Community Services Department’s operating and Infrastructure Reserve budget. Funding for contract years two and three are contingent upon annual appropriation of funds. Policy Implications Authorization of the blanket order does not represent any change to the existing policy. City of Palo Alto Page 4 Environmental Review The blanket order being supplied is in conformance with all applicable emissions laws and regulations. This purchase is categorically exempt from the California Environmental Quality Act under the CEQA guidelines (Sections 15061 and 15301(c)). City of Palo Alto (ID # 5116) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: CIP Program Management Services at RWQCP Title: Approval of Contract No. C15153692 With RMC Water and Environment in a Total Amount Not to Exceed $4,357,899 to Provide Program Management Services for Projects Under the Long Range Facilities Plan of the Regional Water Quality Control Plant – Capital Improvement Program Project WQ- 14001, and for Projects Under the Organic Facilities Plan of the Palo Alto Landfill Project RF-11001 From: City Manager Lead Department: Public Works Recommendation Staff recommends: City Council approve, and authorize the City Manager or his designee to execute, the attached contract with RMC Water and Environment (Attachment A) in the total not-to-exceed amount of $4,357,899 to provide program management services for projects under the Long Range Facilities Plan (LRFP) of the Regional Water Quality Control Plant (RWQCP), and for projects under the Organic Facilities Plan (OFP) of the Refuse Fund; including $3,967,181 for basic services and $390,718 for additional services. Background The RWQCP was originally constructed in 1934 for treatment of local waste and has since undergone several rehabilitations. In 2012, the RWQCP developed a Long Range Facility Plan (LRFP) to upgrade its facilities and treatment processes. The goals are to reduce the RWQCP’s carbon footprint, increase treatment efficiency, and reliability, and provide dependable and sustainable treatment. The LRFP was accepted by Council on July 2, 2012. (Staff Report # 2914) City of Palo Alto Page 2 In March 2014, the Organic Facility Plan (OFP) was developed to evaluate possible combined treatment of the biosolids from the RWQCP, with the food scraps and yard trimmings from the landfill. The OFP was accepted by Council on May 12, 2014 (Staff Report # 4744). The RWQCP and Palo Alto Landfill will jointly implement the projects under the LRFP and the OFP as directed by Council. Discussion The LRFP identified a total cost of $192 million for facilities and process replacement projects to be constructed over a ten-year period. Implementation of the highly technical and complicated projects under the LRFP while maintaining plant operation and full permit compliance requires careful planning and supervision. The LRFP program will require a staff with a wide spectrum of skills, including structural, civil, process mechanical, instrumentation, and controls, environmental project and construction management. In order to efficiently and effectively implement the projects in the program, staffing with the appropriate skill set must be available when required so that each phase of the program can be implemented in a timely manner without causing delay to subsequent phases. It is anticipated that varying phases of the projects will overlap and that the work load will fluctuate significantly. Flexible staffing with flexible time allocation is required to accommodate the needs of the program. The RWQCP has a small engineering group and cannot accommodate the flexible staffing needs and the skill set for the implementation of the program. The RWQCP therefore seeks professional services to manage the projects under the LRFP program. The following table gives the outline of the Capital Improvement Program (CIP) projects covered under the Long Range Facility Plan (LRFP). Tentative Implementation Schedule and Budget Project Title Project Start Year Project Cost Biosolids Handling Facilities Planning – 2013 Component 1 – 2014 Component 2 – 2014 $64,000,000 City of Palo Alto Page 3 Primary Sedimentation Tank Rehabilitation 2014 $7,313,000 Lab & Environmental Services Building 2014 $17,903,763 Fixed Film Reactors Structure and Equipment 2017 $19,420,440 Raw Sewage Pumping Facility 2020 $38,856,627 Recycled Water Filters & Chlorine Contact Tank 2022 $14,209,044 Joint Interceptor Sewer 2022 $30,800,000 Total LRFP Program $192,502,874 The OFP contains four components. The first two components address biosolids and are also contained in the LRFP. The second two address food scraps and yard trimmings. It is critical that the LRFP and the OFP be fully coordinated as planning and design occur. On May 12, 2014, Council directed staff to engage the services of a program management consultant to implement the components in the OFP. This project will provide consultant services to plan and manage the implementation of the projects under the LRFP and the OFP. Scope of Services Description The Consultant will provide program management for the implementation of the projects under the LRFP, and component 3, Food Scrap Preprocessing Facility of the OFP. The scope of work includes: 1. Plan and coordinate the activities of the various phases/projects to maintain conformance with the City’s budget and schedule; 2. Obtain the services of consulting engineering firms to complete the environmental documentation and design of projects; 3. Manage multiple consultants on multiple projects and conduct review of reports, plans, and specifications prepared by the consulting engineering firms for projects; 4. Manage multiple construction contracts to ensure proper execution of construction contracts; 5. Monitor overall budgets and schedules and maintain conformance with the City’s budget and schedule; 6. Assist with regulatory and public outreach requirements; City of Palo Alto Page 4 7. Develop solutions that ensure ongoing RWQCP operation and regulatory compliance as a result of the construction projects; 8. Assist City with acquisition of funding, such as the State Water Resources Control Board State Revolving Fund loan or bond financing; and 9. Other miscellaneous project management tasks. Under the Agreement of this project, the selected program management consultant will not be allowed to propose on any environmental studies or design of the projects under the LRFP and the OFP. The City has the option to require the program management consultant to manage the construction of the projects. Staff will return to Council for approval of the construction management portion of the project. Summary of Solicitation Process Proposal Title/Number Program Management Services for RWQCP - RFP No. 153692 Proposed Length of Project 10 years Number of Solicitations for Proposal mailed &/or emailed 16 Total Days to Respond to Proposal 42 Pre-proposal Meeting Date April 17, 2014 Number of Company Attendees at Pre- proposal Meeting 10 firms Number of Proposals Received: 1 Number of Companies Interviewed 1 Range of Proposal Amounts Submitted $3,967,181 Evaluation of Proposals The City only received one proposal due to the fact that proposing firms cannot subsequently bid on Request for Proposals (RFP) for design work or Invitation for Bids (IFB) for construction work. This limitation kept most consulting engineering firms from being interested in the program management work, which was the subject of the current RFP. City of Palo Alto Page 5 An evaluation committee consisting of the RWQCP staff reviewed the RMC Water and Environment proposal and interviewed their team June 20, 2014. The committee carefully reviewed RMC’s qualifications and submittal in response to the criteria identified in the RFP. The criteria used to evaluate RMC Water and Environment included: quality and completeness of proposal; quality, performance, and effectiveness of the work plan; proposer's experience; the qualifications of the proposed team; proposer's ability to perform the work within the time specified; cost; proposer's financial stability; proposer's prior record of performance with the City; and proposer's compliance with applicable laws and regulations. RMC Water and Environment was selected because of its innovation, understanding of project requirements, relevant project experience, knowledge of project solutions, and familiarity of the project site. Resource Impact This project will be funded by the Wastewater Treatment and Refuse Funds. Funding in the amount of $358,570 is available in the FY 2015 Wastewater Treatment Fund Capital Improvement Program project budget, WQ-14001 Biosolids Facilities Plan. The remaining Contract Year 1 costs included in the table below will need to be supported through funds appropriated as part of the FY 2016 budget process. In the Refuse Fund, $115,859 is currently available in the FY 2015 Refuse Fund operating budget. The remaining contract amounts will be encumbered subject to annual City Council approved appropriations. The Program Manager will assist the City in securing the State Revolving Fund (SRF) loan for the remainder of the term under this contract; along with funding for the CIP Projects referenced above. The SRF loan will reimburse the program management expenses for these projects. The table below shows the breakdown of the costs between funds for the three contract years. WWT Fund Base Scope of Work Additional Services Total Components 1 & 2, Contract Year 1 $ 582,807 $ 52,281 $ 635,088 ($358,570 available in FY15) Components 1 & 2, Contract Year 2 $1,528,621 $ 152,862 $1,681,483 City of Palo Alto Page 6 Components 1 & 2, Contract Year 3 $1,502,711 $ 150,271 $1,652,982 Sub-total WWT Funds $3,614,139 $ 355,414 $3,969,553 Refuse Fund Base Scope of Work Additional Services Total Component 3, Contract Year 1 $ 105,326 $ 10,533 $ 115,859 ($115,859 available in FY15) Component 3, Contract Year 2 $ 118,032 $ 11,803 $ 129,835 Component 3, Contract Year 3 $ 129,684 $ 12,968 $ 142,652 Sub-total Refuse Funds $ 353,042 $ 35,304 $ 388,346 Grand Total $3,967,181 $ 390,718 $4,357,899 Policy Implications Authorization of this project does not represent a change in existing policies. Environmental Review The award of this program management contract is not a project under the California Environmental Quality Act (CEQA). CEQA documentation and approval will be obtained separately for all projects under the program. Attachments:  A: Contract C15153692-RMC Water and Environment (PDF) Professional ServicesRev. Feb. 2014 CITY OF PALO ALTO CONTRACT NO. C15153692 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND RMC WATER AND ENVIRONMENT FOR PROFESSIONAL SERVICES This Agreement is entered into on this 3rd day of November, 2014, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RMC WATER AND ENVIRONMENT, a California Corporation, located at 100 West San Fernando, Suite 320, San Jose, CA 95113 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to implement the Long Range Facilities Plan (“Project”) and desires to engage a consultant to provide program management for the implementation of the LRFP while maintaining plant operation and full permit compliance at all times in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. C15153692 Program Management Services for the RWQCP 1 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit “B” unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CONSULTANT is not responsible for schedule delays due to events or actions by others that are beyond the reasonable control of CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Three Million Nine Hundred Sixty-Seven Thousand One Hundred and Eighty One Dollars ($3,967,181.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Four Million Three Hundred Fifty-Seven Thousand Eight Hundred Ninety-Nine Dollars ($4,357,899.00).The applicable rates and schedule of payment are set out in Exhibit “C12-1, C12-2, C12-3, C3-1 C3-2, and C3-3”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the C15153692 Program Management Services for the RWQCP 2 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in its work product submitted to CITY, to the extent that such errors, omissions, or ambiguities were not materially caused by erroneous or ambiguous information provided by others and, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement until expiration of statutes of limitations and repose applicable to Consultant’s services for a period of four (4) years. CITY shall furnish CONSULTANT available studies, reports and other data pertinent to Consultant’s services. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. CONSULTANT shall use due diligence and current market data in preparing the construction cost estimates. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of C15153692 Program Management Services for the RWQCP 3 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. Option B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Carollo Engineers Covello Group CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Steve Clary as the Program Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Marc Nakamoto as the Deputy Program Manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Padmakar Chaobal, Public Works Department, Environmental Services Division, RWQCP 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone:(650) 329-2287. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery and final payment by CITY, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of C15153692 Program Management Services for the RWQCP 4 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. In the event an action alleges negligence on the part of CONSULTANT and/or CITY, or any third parties not under contract with CONSULTANT, CONSULTANT’S obligations regarding reimbursement of CITY’S reasonable defense costs incurred to the extent of CONSULTANT’S negligence as expressly determined by a final judgment, arbitration, award, order, settlement, or other final resolution. C15153692 Program Management Services for the RWQCP 5 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. C15153692 Program Management Services for the RWQCP 6 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. Prior to giving notice of termination or suspension for cause, CITY will provide CONSULTANT two weeks opportunity to remedy the cause. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. CONSULTANT makes no representation of the suitability of work product for use in, or application to, circumstances not contemplated by the scope of work, or for incomplete work products. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. This obligation shall survive termination of the Agreement. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director C15153692 Program Management Services for the RWQCP 7 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. C15153692 Program Management Services for the RWQCP 8 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: All printed materials provided by Consultant to City generated from a personalcomputer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products andpackaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the C15153692 Program Management Services for the RWQCP 9 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. / / / / / / / / / / / / / / / / / / / / C15153692 Program Management Services for the RWQCP 10 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 25.12 In the event of a dispute under this agreement, CITY and CONSULTANT agree to attempt a resolution by mediation. The mediator shall be acceptable to the CITY and CONSULTANT. 25.13 CONSULTANT shall be named as additional primary insured(s) by the construction contractor’s General Liability and Builder’s All Risk insurance policies and all Construction Documents and insurance certificates shall include wording acceptable to the parties herein with reference to such provisions. 25.14 CONSULTANT shall not be responsible for the means, methods, techniques, sequences, or procedures of construction selected by construction contractors or the safety precautions and programs incident to the work of construction contractors and will not be responsible for construction contractor’s failure to carry out work in accordance with the Contract Documents unless the means, methods, techniques, sequences, or procedures of construction are specified by the CONSULTANT. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: Senior Asst. City Attorney RMC WATER AND ENVIRONMENT By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C12-1”: SCHEDULE OF RATES EXHIBIT “C12-2”: SCHEDULE OF RATES EXHIBIT “C12-3”: SCHEDULE OF RATES EXHIBIT “C3-1”: SCHEDULE OF RATES EXHIBIT “C3-2”: SCHEDULE OF RATES C15153692 Program Management Services for the RWQCP 11 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Exec. Vice President Stephen Clary Professional Services Rev. Feb. 2014 EXHIBIT “C3-3”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS C15153692 Program Management Services for the RWQCP 12 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “A” SCOPE OF SERVICES PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT PROGRAM MANAGEMENT SCOPE OF SERVICES The Palo Alto Regional Water Quality Control Plant (RWQCP) was originally constructed in 1934 and had undergone several expansions and upgrades throughout the years. To date, the RWQCP is an advanced treatment facility that provides treatment and disposal of wastewater for the Cites of Palo Alto, Mountain View, and Los Altos; the Town of Los Altos Hills; the East Palo Alto Sanitary District; and Stanford University. The RWQCP currently has a designed average dry weather flow (ADWF) capacity of 39 million gallons per day (MGD), and a current average flow of about 20 MGD. The RWQCP effluent is partly discharged to the San Francisco Bay, and partly diverted to the RWQCP recycled water facility for reuse. A Long Range Facilities Plan (LRFP) was prepared in 2012 to provide a road map for the RWQCP’s future. Most recently, an Organics Facilities Plan ( OFP ) has been prepared to address the biosolids from the RWQCP, food scraps from residents and businesses, and yard trimmings from residents and businesses. The RWQCP seeks professional program management services to assist staff with the implementation of the LRFP and the OFP. BACKGROUND The RWQCP was originally constructed in 1934 for treatment of local waste. In 1972, the RWQCP was upgraded to a secondary treatment facility and expanded to the average dry weather flow capacity of 35 mgd and the peak hour wet weather capacity of 80 mgd. With this expansion, in addition to Palo Alto, the RWQCP provides wastewater treatment and disposal from the cities of Mountain View, Los Altos, East Palo Alto Sanitary District, Los Altos Hills, and Stanford University. In 1980, construction was completed for an upgrade to provide nitrification and tertiary treatment. In 1988, a capacity expansion project increased the overall permitted average dry weather flow capacity to 39 mgd. In case there is a need for essential maintenance or to handle wet weather flows exceeding 40 mgd, provisions were made so the nitrification and tertiary treatment processes can be bypassed. The existing treatment processes at the RWQCP consist of headworks, primary, two-stage secondary, tertiary, ultra-violet disinfection, solids incineration, and recycled water treatment. Some of the original structures are still in use. In 2012, the RWQCP conducted the LRFP to upgrade its facilities and treatment processes. The goals are to reduce the RWQCP’s carbon footprint, increase treatment efficiency and reliability, and provide dependable and sustainable treatment. The LRFP was accepted by the Palo Alto City Council on July 2, 2012. The LRFP and information about the Plant are available at the C15153692 Program Management Services for the RWQCP 13 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 plant website: http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2101&TargetID=65 In March, 2014 the attached Organics Facilities Plan ( OFP ) was developed to address the biosolids from the RWQCP, food scraps, and yard trimmings. The first two components of the 4-component OFP address biosolids and are also contained in the LRFP. Therefore it is critical that the LRFP and the OFP be fully coordinated as planning and design occur. Therefore the Project Management Consultant being selected via this RFP, must integrate the LRFP and the OFP. Components 3 and 4 of the OFP address food scraps and yard trimmings, respectively. The LRFP identified a total cost of $192 million of facilities/process replacement projects to be constructed over a ten year period. It is anticipated that varying phases of the projects would overlap. The RWQCP seeks to retain a consulting engineering firm to act as Program Manager for these projects. The Program Manager will be responsible for planning and coordinating project activities, acquiring and managing the preparation of designs and environmental documents by other consultants, conducting design reviews, coordinating or managing construction of projects, working with RWQCP engineering staff to monitor overall budgets and schedules, facilitating the RWQCP with regulatory and partner agencies liaison, and assisting the RWQCP on public relations, as needed. PROJECT APPROACH The LRFP provides a basis for the Consultant to understand City and community goals. Consultant shall assist the RWQCP to implement the projects following the road map outlined in the LRFP. The LRFP identified seven major facilities/processes that need to be upgraded or replaced: Solids handling Primary sedimentation Lab/environmental services Fixed film reactors Headworks Recycled water filters and chlorine contact tank Joint interceptor sewer The RWQCP anticipates awarding separate consulting contracts for the above projects. The RWQCP is also considering the use of design-build process for some projects. A tentative implementation schedule and budget of the LRFP is included with this request for proposal as Attachment A. Subsequent to Council’s acceptance of the LRFP, the RWQCP is completing the Biosolids Facility Plan in accordance with the LRFP recommendation regarding the solids handling process. Council’s decisions on the Biosolids Facility Plan recommendations shall be the guide to the Solids handling project. Additionally, the City is considering two projects, one for preprocessing of food scraps, and one for processing of yard trimmings, which would be related to the Biosolids Facilities Plan. These two projects are Components #3 and #4 of the City’s Organics Facilities Plan OFP and shall be C15153692 Program Management Services for the RWQCP 14 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 referred to as Components #3 and #4 of the OFP. Component #3 projects will be managed by Consultant in the same way as the LRFP projects, except that the funding source is different (largely the City’s Refuse Fund ), and therefore the financial management will be kept separate. CONSULTANT SERVICES GENERAL Consultant shall provide program management for the implementation of the LRFP while maintaining plant operation and full permit compliance at all times. The LRFP would provide an overall rehabilitation as well as new processes and facilities in the existing RWQCP. The program requires Consultant to provide a large variety of services. The Consultant team shall have experience in competitive bid process and possess a full spectrum of engineering/financial expertise, including structural, civil, process mechanical, instrumentation & controls, environmental, and construction management. Consultant shall be knowledgeable of laws and regulations related to wastewater treatment facilities including NPDES permit regulations, California and Federal air regulations, greenhouse gas regulations, OSHA , and environmental documentation requirements. Consultant shall put together a flexible team with flexible time allocation to accommodate the needs of the program. The program manager will report to the senior engineer of the RWQCP. For Components #3 and #4 of the OFP, the program manager shall report to the City’s Solid Waste Manager. Consultant shall become familiar with the City’s procedures and be an extension of the RWQCP engineering group. It is therefore important that the Consultant team shares common values with the RWQCP staff and a communication style for successful integration with RWQCP staff. It is the RWQCP’s expectation that Consultant will operate in an advisory capacity on matters requiring decisions, and be able to implement the LRFP with minimal assistance from RWQCP staff. Consultant is not expected to navigate the projects through City procedures, but is expected to provide all support documents needed for RWQCP staff to move the project through City process. There is limited office space available at the RWQCP. RWQCP staff will work with Consultant to determine how best to accommodate Consultant team for optimal efficiency. Consultant shall keep its work properly organized at all times. As much as possible, records shall be in electronic format compatible with the RWQCP’s software, hardware and security protocols. Records of work shall be available to the RWQCP at all times. City will have ownership rights of all records and documents. Consultant shall not share City documents or information with anyone outside of the City organization, except the Consultant program team, without the City’s approval. Any preliminary design performed by Consultant under this Contract shall be the property of the City and City has the right to allow the design engineer to use the preliminary design documents to complete the final design. BASIC SERVICES Task 1: Planning and coordination Consultant shall review the work requirements of the LRFP, and make projection of the impacts C15153692 Program Management Services for the RWQCP 15 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 on the RWQCP’s treatment process, operation, and finance. Consultant shall lay out the schedule for the funding, environmental review, design, regulatory, and construction activities for a phased implementation of the LRFP. A separate schedule for Components #3 and #4 of the OFP shall be prepared. Consultant shall plan and coordinate the activities of the various phases/projects to maintain conformance with the LRFP budget and schedule. Consultant shall: 1.1 Determine phasing of work, critical paths, milestones for projects to minimize impact while ensuring the RWQCP complies with regulatory requirements, consistent with the LRFP recommendations 1.2 Set deadlines for funding, permitting, environmental review, design, and construction for the various phases/projects 1.3 Refine and customize program management tools to fit the specific needs of the LRFP, including tools for budget management, schedule management, cash flow & forecasting and accounting & financing 1.4 Develop and maintain a master schedule of all the projects under the LRFP, perform CPM analysis as needed 1.5 Develop and maintain a comprehensive overall program budget and cash flow projection for the LRFP 1.6 Develop reporting tool to provide updates and alert the RWQCP of issues in a timely manner Task 2: Acquisition and management of project consultants Consultant shall assist the RWQCP in obtaining the services of consulting engineering firms to complete the environmental documentations and designs of projects under the LRFP and Components #3 and #4 of the OFP, keeping all financial management and billings separate for these two projects. Consultant will not be allowed to propose on any of these projects. Consultant shall: 2.1 Prepare scope of work and Requests for Proposal 2.2 Assist RWQCP staff to navigate project through City’s acquisition process to obtain the engineering services 2.3 Evaluate proposals and assist RWQCP with the selection of engineering firms for the projects 2.4 Oversee and provide consistency across multiple designers and ensure that the designs of multiple projects would result in consistency across multiple contractors 2.5 Develop document management requirements and ensure consistency in project reporting and products C15153692 Program Management Services for the RWQCP 16 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Task 3: Design/Document reviews Consultant shall conduct review of the reports, plans and specifications prepared by the consulting engineering firms for projects under the LRFP and Components #3 and #4 of the OFP. Consultant shall: 3.1 Coordinate and engage plant staff with projects to ensure proper basis of planning and design 3.2 Review all reports, design submittals, scope changes, project products and establish a QA/QC program 3.3 Coordinate and provide information needed for environmental documents and design of projects, and ensure consistency across multiple projects 3.4 Provide value engineering and constructability review 3.5 Review and ensure regulatory compliance Task 4: Services for project construction Consultant shall assist the RWQCP to ensure proper execution of construction contracts under the LRFP and Components #3 and #4 of the OFP. Consultant shall: 4.1 Prepare invitation for bid packages 4.2 Assist RWQCP staff to navigate through City’s acquisition procedures to obtain the contracts for construction of the LRFP projects 4.3 The RWQCP has the option to and may request the Consultant to provide or assist staff with construction management services. Consultant shall prepare the scope and budget. City will amend the Consultant’s annual contract to include the agreed upon fee for the construction management services. Consultant will then perform the construction management services under the amended Basic Services 4.4 Alternatively, the RWQCP has the option to request Consultant to prepare “Request for Proposal” document to obtain the services of construction management firm to oversee the construction project. Consultant and/or its Sub-consultants may propose on this task 4.5 Coordinate and ensure consistency and continuity across multiple construction projects 4.6 Coordinate multiple construction project activities with plant operations / project phasing / shutdowns 4.7 Coordinate and review the progress of multiple construction projects to ensure that conflicts/issues are resolved by the appropriate parties in a timely manner C15153692 Program Management Services for the RWQCP 17 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 4.8 Keep the RWQCP informed of the progress of the projects Task 5: Services for alternate project delivery (DELETED) Task 6: Budget and schedule management Consultant shall monitor overall budgets and schedules and maintain conformance with the LRFP budget and schedule. Consultant shall: 6.1 Monitor the budget and schedule of multiple projects under varying phases of design and construction 6.2 Coordinate and monitor funding activities for the projects 6.3 Prepare cash flow and forecast for the individual project and for the combined projects under the program 6.4 Prepare accounting and financing documents/reports for City, partner agencies, and funding agencies 6.5 Document accounting, financing, and reporting activities in sufficient detail, suitable for internal and outside audits Task 7: Participation with in-house project Consultant shall coordinate with RWQCP engineering group on activities of in-house projects to avoid or resolve any conflicts with schedules or work. Coordination with plant staff shall be an on-going continuous effort of the Consultant’s services. Consultant may be asked to assist RWQCP staff with minor in-house project design and/or construction management. Upon request by the RWQCP engineering staff, Consultant shall prepare the scope of work and budget. If RWQCP desires Consultant’s service for the minor in- house project, such work shall be performed under the Additional Task component of the contract. Task 8: Regulatory and partner agencies liaison Consultant shall facilitate with regulatory and partner agencies as a liaison. As needed, Consultant shall: 8.1 Prepare informational material and assist the RWQCP with the presentation of workshops and updates for the City management, Council Committees, City Council, and partner agencies 8.2 Coordinate and prepare applications and regulatory documents as needed for the projects, C15153692 Program Management Services for the RWQCP 18 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 collaborate with regulatory agencies, establish permit requirements, and assist the RWQCP in the permitting process 8.3 Update and assist the RWQCP with regulatory changes and compliance requirements Task 9: Public outreach For public relations, the city typically takes a lead role and utilizes outside help on an as needed basis. Consultant shall assist the RWQCP with any required public outreach. Most of the public outreach for the program has been done during the preparation of the LRFP. The RWQCP does not expect any project controversy or a significant need for outside assistance with public outreach. Consultant shall: 9.1 Prepare program communications plan if needed 9.2 Perform technical, regulatory and environmental analyses if needed to prepare for public outreach effort 9.3 Prepare slides, handouts, and outreach materials 9.4 Assist with public meetings 9.5 Incorporate stakeholders/public inputs 9.6 Document the outreach process, issues, discussions, goals, and outcome Task 10: Funding acquisition City anticipates funding the LRFP projects with the State Revolving fund loan. Consultant may be required to assist City with funding acquisition. When requested by the RWQCP, assist with acquisition of funding, such as the State Revolving Fund loan or bond financing. With respect to Components #3 and #4 of the OFP, consultant will be asked to seek grant funding from all available sources. Consultant shall be knowledgeable and be prepared to provide the full spectrum of services needed to secure funding. Services would include preparation of the necessary documents required by funding agency, meeting and coordination with funding agency, preparation of documents for council approval, coordination with credit review agency, etc. Task 11: Project management Consultant shall provide necessary administration, minutes, proper invoicing meeting funding agencies’ requirements, budget control, project controls, quality assurance and reviews, and professional oversight. Project staffing shall be maintained at acceptable levels to keep the project on schedule, ensure continuity of information, and satisfy the requirements of the scope of work. Task 12: Office Trailer Consultant shall provide office space, office equipment, furniture and all items required to function as a field office for managing various phases of the program. ADDITIONAL SERVICES C15153692 Program Management Services for the RWQCP 19 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 The City may elect to have Consultant perform any or all of the following additional services. Consultant shall perform these services only if pre-authorized in writing by the City Project Manager. Consultant shall provide an hourly rate sheet and include annual escalation for future years if any. 1. When requested by the RWQCP, assist with minor in-house project design and construction management 2. Assist City with public outreach efforts in excess of task 9 due to unforeseen controversies 3. Assist City with regulatory compliance or permitting efforts in excess of task 8 due to unforeseen regulatory/permitting changes. Related links 1. Biosolids Facility Plan (BFP) http://www.cityofpaloalto.org/civicax/filebank/documents/39964 2. Long Range Facility Plan (LRFP)http://www.cityofpaloalto.org/civicax/filebank/documents/32042 3. Preliminary Design for the Dewatering & Loadout Facilityhttp://www.cityofpaloalto.org/civicax/filebank/documents/32042x 4. Site Assessment and Design Guidelines for Baylands Natural Preserve http://www.cityofpaloalto.org/civicax/filebank/documents/13318 5. Palo Alto Municipal Codehttp://www.amlegal.com/nxt/gateway.dll/California/paloalto_ca/paloaltomunicipalcode?f=tmplat es$fn=default.htm$3.0$vid=amlegal:paloalto_ca 6. PA Goals, Policies and Programs http://www.cityofpaloalto.org/civicax/filebank/documents/8176 C15153692 Program Management Services for the RWQCP 20 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 \ Attachment A Long Range Facility Plan Tentative Implementation Schedule and Budget Project Title Project Start Year Project Cost Solids handling Facility Planning – 2013 Phase I – 2014 Phase II – 2015 $69,000,000 Primary Sedimentation Tank Rehabilitation 2015 $7,313,000 Lab & Environmental Services Building 2015 $17,903,763 Fixed Film Reactors Structure and Equipment 2017 $19,420,440 Headworks Facility (including Grit Removal System 2020 $38,856,627 Recycled Water Filters and Chlorine Contact Tank 2022 $14,209,044 Joint Interceptor Sewer 2022 $30,800,000 Total LRFP Program $197,502,874.00 C15153692 Program Management Services for the RWQCP 21 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones Completion No. of Days/Weeks From NTP 1.Year One Components1, 2, & 3 52 Weeks 2.Year Two Components 1, 2, & 3 104 Weeks 3.Year Three Components 1, 2, & 3 156 Weeks 4. 5. 6. 7. 8. 9. 10. C15153692 Program Management Services for the RWQCP 22 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C12-1” YEAR 1 COMPENSATION FOR COMPONENTS 1 & 2 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $582,807. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $641,088. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $582,807 and the total compensation for Additional Services does not exceed $58,281. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $164,881 (Planning & coordination) Task 2 $108,563 (Acquisition and management of project consultants) Task 3 $138,255 (Design/document reviews) Task 4 $12,381 (Services for project construction) Task 5 $0 (Deleted) Task 6 $18,002 (Budget and schedule management) Task 7 $9,210 (Participation with In-house projects) C15153692 Program Management Services for the RWQCP 23 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Task 8 $7,974 (Regulatory and partner agencies liaison) Task 9 $8,528 (Public outreach) Task 10 $27,615 (Funding acquisition) Task 11 $63,999 (Project management) Task 12 $23,400 (Office trailer) Sub-total Basic Services Year 1 $582,807 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $582,807 Additional Services (Not to Exceed) $58,281 Maximum Total Compensation $641,088 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 24 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 25 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C12-2” YEAR 2 COMPENSATION FOR COMPONENTS 1 & 2 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $1,528,621. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $1,681,483. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $1,528,621 and the total compensation for Additional Services does not exceed $152,862. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $33,425 (Planning & coordination) Task 2 $588,383 (Acquisition and management of project consultants) Task 3 $497,282 (Design/document reviews) Task 4 $52,335 (Services for project construction) Task 5 $0 (Deleted) Task 6 $73,157 (Budget and schedule management) Task 7 $20,448 C15153692 Program Management Services for the RWQCP 26 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 (Participation with In-house projects) Task 8 $31,918 (Regulatory and partner agencies liaison) Task 9 $11,686 (Public outreach) Task 10 $0 (Funding acquisition) Task 11 $187,627 (Project management) Task 12 $16,800 (Office trailer) Sub-total Basic Services Year 2 $ 1,528,621 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $1,528,621 Additional Services (Not to Exceed) $152,862 Maximum Total Compensation $1,681,483 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 27 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 28 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C12-3” YEAR 3 COMPENSATION FOR COMPONENTS 1 & 2 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $1,502,711. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $1,652,982. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $1,502,711 and the total compensation for Additional Services does not exceed $150,271. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $31,877 (Planning & coordination) Task 2 $558,786 (Acquisition and management of project consultants) Task 3 $375,005 (Design/document reviews) Task 4 $173,754 (Services for project construction) Task 5 $0 (Deleted) Task 6 $93,991 (Budget and schedule management) Task 7 $21,266 C15153692 Program Management Services for the RWQCP 29 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 (Participation with In-house projects) Task 8 $30,690 (Regulatory and partner agencies liaison) Task 9 $11,236 (Public outreach) Task 10 $28,694 (Funding acquisition) Task 11 $176,169 (Project management) Task 12 $16,800 (Office trailer) Sub-total Basic Services Year 3 $ 1,502,711 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $1,502,711 Additional Services (Not to Exceed) $150,271 Maximum Total Compensation $1,652,982 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 30 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 31 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C3-1” YEAR 1 COMPENSATION FOR COMPONENT 3 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $105,326. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $115,859. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $105,326 and the total compensation for Additional Services does not exceed $10,533. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $16,179 (Planning & coordination) Task 2 $0 (Acquisition and management of project consultants) Task 3 $62,030 (Design/document reviews) Task 4 $0 (Services for project construction) Task 5 $0 (Deleted) Task 6 $7,032 (Budget and schedule management) Task 7 $0 (Participation with In-house projects) C15153692 Program Management Services for the RWQCP 32 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Task 8 $7,974 (Regulatory and partner agencies liaison) Task 9 $0 (Public outreach) Task 10 $0 (Funding acquisition) Task 11 $12,112 (Project management) Task 12 $0 (Office trailer) Sub-total Basic Services Year 1 $105,326 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $105,326 Additional Services (Not to Exceed) $10,533 Maximum Total Compensation $115,859 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 33 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 34 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C3-2” YEAR 2 COMPENSATION FOR COMPONENT 3 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $118,032. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $129,835. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $118,032 and the total compensation for Additional Services does not exceed $11,803. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $0 (Planning & coordination) Task 2 $0 (Acquisition and management of project consultants) Task 3 $67,706 (Design/document reviews) Task 4 $0 (Services for project construction) Task 5 $0 (Deleted) Task 6 $7,313 (Budget and schedule management) Task 7 $0 (Participation with In-house projects) C15153692 Program Management Services for the RWQCP 35 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Task 8 $8,293 (Regulatory and partner agencies liaison) Task 9 $0 (Public outreach) Task 10 $21,557 (Funding acquisition) Task 11 $13,163 (Project management) Task 12 $0 (Office trailer) Sub-total Basic Services Year 2 $ 118,032 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $118,032 Additional Services (Not to Exceed) $11,803 Maximum Total Compensation $129,835 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 36 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 37 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C3-3” YEAR 3 COMPENSATION FOR COMPONENT 3 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $129,684. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $142,652. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $129,684 and the total compensation for Additional Services does not exceed $12,968. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $0 (Planning & coordination) Task 2 $46,210 (Acquisition and management of project consultants) Task 3 $38,394 (Design/document reviews) Task 4 $0 (Services for project construction) Task 5 $0 (Deleted) Task 6 $13,014 (Budget and schedule management) Task 7 $0 (Participation with In-house projects) C15153692 Program Management Services for the RWQCP 38 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Task 8 $9,175 (Regulatory and partner agencies liaison) Task 9 $0 (Public outreach) Task 10 $8,393 (Funding acquisition) Task 11 $14,498 (Project management) Task 12 $0 (Office trailer) Sub-total Basic Services Year 3 $ 129,684 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $129,684 Additional Services (Not to Exceed) $12,968 Maximum Total Compensation $142,652 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. C15153692 Program Management Services for the RWQCP 39 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1000 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: C15153692 Program Management Services for the RWQCP 40 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 EXHIBIT “C-1” HOURLY RATE SCHEDULE RMC Water and Environment 2014 Standard Billing Rates Billing Classifications 2014 Rates Engineer-Planner-Scientist EPS-1 $ 146.00 EPS-2 $ 156.00 EPS-3 $ 168.00 EPS-4 $ 184.00 EPS-5 $ 194.00 EPS-6 $ 205.00 EPS-7 $ 215.00 EPS-8 $ 226.00 EPS-9 $ 236.00 EPS-10 $ 250.00 EPS-11 $ 265.00 EPS-12 $ 276.00 EPS-13 $ 286.00 EPS-14 $ 297.00 Intern $ 53.00 Technician TECH-1 $ 127.00 TECH-2 $ 130.00 TECH-3 $ 135.00 TECH-4 $ 140.00 TECH-5 $ 146.00 TECH-6 $ 154.00 TECH-7 $ 156.00 Administrative AD-1 $ 94.00 AD-2 $ 99.00 AD-3 $ 104.00 AD-4 $ 114.00 AD-5 $ 125.00 C15153692 Program Management Services for the RWQCP 41 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 AD-6 $135.00 AD-7 $146.00 Note: The individual hourly rates include salary, overhead and profit. Other direct costs (ODCs) such as reproduction, delivery, mileage (as allowed by IRS guidelines), and travel expenses will be billed at actual cost plus 10%. Subconsultants will be billed as actual cost plus 10%. RMC reserves the right to adjust its hourly rate structure at the beginning of each year for all ongoing contracts. CAROLLO ENGINEERS, INC. FEE SCHEDULE As of January 1, 2014 California Engineers/Scientists Hourly Rate Assistant Professional $154.00 Professional 188.00 Project Professional 223.00 Lead Project Professional 244.00 Senior Professional 265.00 Technicians Technicians 115.00 Senior Technicians 162.00 Support Staff Document Processing / Clerical 102.00 Project Equipment Communication Expense (PECE) Per DL Hour 11.70 Other Direct Expenses Travel and Subsistence at cost Mileage at IRS Reimbursement Rate Effective January 1, 2014 $.56 per mile Subconsultant cost + 10% C15153692 Program Management Services for the RWQCP 42 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev. Feb. 2014 Other Direct Cost cost + 10% Expert Witness Rate x 2.0 This fee schedule is subject to annual revisions due to labor adjustments. C15153692 Program Management Services for the RWQCP 43 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev Feb. 2014 The Covello Group, Inc. Billing Rate Schedule July 1, 2014 through June 30, 2015 Principals ……………………………………………………………………………………………………….. $205 - $255 per hour Bruce Presser, P.E. $225 Gary Skrel, P.E. $225 Construction Managers ………………………………………………………………………………….. $175 - $205 per hour Chris Davenport, P.E. $200 Mike Jaeger, P.E.; QSD/QSP $190 Resident Engineers …………………………………………………………………………………………. $140 - $185 per hour Mike Redig, P.E. $165 Danielle Green, P.E. $150 Project Controls Engineers ……………………………………………………………………………… $110 - $165 per hour Gerrit Post, P.E. $155 Andy Deal $110 Office Engineers ……………………………………………………………………………………………… $95 - $140 per hour Zack Downing $125 Andrew Matey $115 Alex Page $95 Inspectors ………………………………………………………………………………………………………. $130 - $140 per hour Dennis Budasz $135 James Williams $135 Jonathan Cowsert $130 Administrative Assistants ……………………………………………………………………………….. $80 -$95 per hour Hourly Billing Rates include all normal expenses. Extraordinary expenses, such as out-of-town travel, lodging, major field office equipment, etc. are billed at cost. Subconsultants are billed at cost plus 5% mark-up. C15153692 Program Management Services for the RWQCP 44 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev Feb. 2014 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. THE RMC WATER AND ENVIRONMENT DEDUCTIBLE AMOUNT OF $100,000 HAS BEEN APPROVED BY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER C15153692 Program Management Services for the RWQCP 45 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 Professional Services Rev Feb. 2014 INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B.CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C.NOTICE OF CANCELLATION 1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE EMAILED OR MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303. EMAIL: InsuranceCerts@CityofPaloAlto.org C15153692 Program Management Services for the RWQCP 46 DocuSign Envelope ID: 5EBB2E48-E391-4904-AA81-F84B84DE2011 City of Palo Alto (ID # 5148) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Caltrain Go Pass Progam Update Title: Approval of Extension of the Trial Caltrain Go Pass Program for City Employees and Adoption of a Budget Amendment Ordinance in the Amount of $80,280 for the 2015 Go Pass program From: City Manager Lead Department: Planning and Community Environment Recommendation: Staff recommends that City Council authorize the City Manager to sign an agreement with the Peninsula Corridor Joint Powers Board for continuation of the Caltrain Go Pass program for City employees for the 2015 calendar year, and approve a Budget Amendment Ordinance in the amount of $80,280 in the General Benefits Fund. Executive Summary: In order to address parking and traffic concerns in Palo Alto’s Downtown, the City has initiated a number of programs aimed at reducing overall traffic demand, more effectively utilizing existing parking resources, and encouraging alternative modes of transit. Although many employees of Downtown businesses already use Caltrain for their commute, the City wanted to offer an incentive for City employees working at the Downtown Civic Center locations (City Hall, Main Library and Development Center) to ride the train and free up more parking spaces in the Civic Center garage. The requested action would continue the 2014 Go Pass trial program for City employees for another year with a modification aimed at increasing Caltrain ridership by City employees. Background: On February 24, 2014, Council directed staff to move forward with several Transportation, Demand Management (TDM) initiatives, including the following: (1) solicit proposals to establish a non-profit Transportation Management Authority (TMA), (2) solicit proposals to provide car share services at city-owned lots, (3) Evaluate Rideshare Tools, Including a Trial of the “Twogo” Rideshare App, for Coordination and Marketing By The TMA; and (4) to authorize the City Manager to enter into an Agreement with the Peninsula Corridor Joint Powers Board to City of Palo Alto Page 2 participate in the Caltrain Go Pass Program for a 9-month trial. Figure 1 provides an update on the other components of the motion: Figure 1: Update on Current Transportation Demand Management Initiatives TMA Formation The City engaged with MIG consultants in August 2014 to launch the TMA. The consultants provided an update to the Planning and Transportation Commission on October 29 and are in the process of engaging the steering committee for the TMA. Carshare The City entered into a contract with Zipcar in August 2014 and Zipcar currently provides ten cars for use in Downtown lots and garages; utilization is between 7% - 40% so far depending on the location. The City is working with Zipcar to monitor the program and increase utilization of the vehicles. Rideshare Tools Evaluation Staff also marketed the TwoGo mobile app to city employees and employees of Downtown businesses during the spring and summer of 2014. Caltrain Go Pass City engaged with the Joint Powers Board (JPB) to provide Caltrain Go Passes to all regularly-benefited Downtown City employees beginning in April 2014. Summary of Key Issues: One of the key reasons for implementing the Go Pass program at City Hall was to incentivize City employees to give up their parking passes so that their permits could be made available to non-City employees. Another was for city employees to “lead by example,” using public transportation for their commute and forgoing the City-provided benefit of free parking. As of October 2014, 50 Civic Center employees had rescinded their city-issued parking permit in favor of a Go Pass and have been riding the train for their commute. The City has also been able to raise the permit cap on the Civic Center parking garage from 820 to 875 permits since the inception of the Go Pass program, meaning that in addition to the 50 parking permits made available to non-City employees by the program, another 55 permits have been offered to non- City employees. The City continues to monitor occupancy and permit sales at the Downtown garages as maximizing the usage of parking supply is a top priority. In order to further assess how the implementation of the Go Pass program has impacted employee commuting habits, and to inform the direction of future City-sponsored transportation programs, Staff conducted a short commute-focused survey of Civic Center City of Palo Alto Page 3 employees. Based on the survey responses received at the writing of this report, about 50% of the City employee Go Pass participants had already been riding the train prior to the City’s participation, but the other 50% had switched to riding it more regularly or had never ridden Caltrain before. Of the respondents who did not choose to give up their parking permit and participate in the program, 29% stated that they lived too far from a Caltrain station to participate, 24% felt reluctant to give up their parking pass because their schedule was too sporadic, and 20% said that they had to run additional errands either to or from work. The survey also asked non- participants whether, if they didn’t need to give up their parking permit, would they participate in the program and ride the train at least occasionally; 70% of the non-participants stated that they would ride the train at least one day per week if this option were available, with 26% stating they would ride it 3 days or more per week. The Go Pass program received a 100% satisfaction report from all participants who responded to the survey, and elicited success stories from some. For example, one city employee used to drive from San Francisco and now takes the train, saving hundreds of gallons of gas per year. Staff recommends continuing the trial for another year, and modifying the trial to provide the Go Pass to all eligible City employees working in the Civic Center. Offering a GoPass to all eligible employees at Civic Center would not cost the city any extra money because the cost of the program is based on the number of eligible employees, not the number who actually use it. Making permits available to all employees with no requirement to turn in a parking permit will allow staff to determine whether there is an additional mode shift towards transit over single- occupant trips if more employees ride the train some of the time (i.e. rather than having a smaller number of employees ride the train all of the time). Although staff doesn’t anticipate a shift to transit every day for all employees, employees may choose to take transit on multiple days. As a condition of receiving the Go Pass, employees would have to agree to report on how many times they use the pass each month. Staff would review ridership patterns and determine at the end of the calendar year whether the calendar year 2015 trial or the calendar year 2014 trail yielded more mode shift. The City could then decide to proceed with the program in the same way or go back to the original program design (requiring employees to give up their parking passes in order to receive a Go Pass). Regardless of the strategy, as part of the Fiscal Year 2016 budget process, staff will evaluate providing ongoing funding to the Go Pass program. Policy Implications: Supporting TDM policies is consistent with the following Comprehensive Plan Goals: Policy T-2: Consider economic, environmental and social cost issues in local transportation decisions; City of Palo Alto Page 4 Policy T-3: Support the development and expansion of comprehensive, effective programs to reduce auto use at both local and regional levele; Program T-8: Create a long-term education program to change the travel habits of residents, visitors and workers by informing them about transportation alternatives, incentives and impacts… The implementation of the Go Pass program also aligns with the TMA’s objective of reducing single-occupant-vehicle use by 30% in three years. Resource Impact: For calendar year 2014, the cost of the Go Pass program was 124.50 per eligible employee (i.e. full time regularly-benefitted employees working at downtown locations such as the Civic Center) for a nine-month period because the City initiated the program in April. The annual cost would have been $165. The cost of the program ($58,017) was funded through the City’s General Benefits Fund. Caltrain has raised the prices per employee for the Go Pass program in 2015; the cost to participate in the 2015 Go Pass program is now $180 per employee. Based on the City’s current staffing at the downtown location (446 eligible employees), the renewal cost to the City will be $80,280. Staff is requesting Council approval of a Budget Amendment Ordinance (Attachment A) for additional funding in the amount of $80,280 in the General Benefits Fund to cover the cost of the 2015 Go Pass program offset with a reduction in the General Benefits Fund ending fund balance. As part of the development of the FY 2016 Proposed Budget, staff will evaluate providing ongoing funding for the Go Pass program. Timeline: Caltrain will make Go Passes available to City employees for the 2015 calendar year available for use by December 1, 2014 if the program is approved. The passes will also be eligible for the month of December and the entire calendar year of 2015. Attachment B includes a copy of the agreement with Caltrain and the invoice for the 2015 calendar year. Attachments:  Attachment A: Budget Amendment Ordinance XXXX - GoPass (DOCX)  Attachment B: Caltrain Agreement and 2015 Invoice (PDF) ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2015 TO PROVIDE ADDITIONAL APPROPRIATION OF $80,280 IN THE GENERAL BENEFITS FUND FOR THE TRIAL CALTRAIN GO PASS PROGRAM FOR CALENDAR YEAR 2015 The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. On February 10, 2014 the City Council authorized the City Manager to enter into an Agreement with the Peninsula Joint Powers Board to participate in the Caltrain Go Pass Program for City of Palo Alto employees as a pilot program. C. The Caltrain Go Pass Program provides City funded train passes to City of Palo Alto employees working in the downtown core as an incentive to ride public transit in order to reduce automobile trips and free up parking in the Civic Center Garage. D. As part of the pilot 50 City employees signed up for the Caltrain Go Pass Program freeing up 50 parking passes in the Civic Center Garage. E. The City intends to continue the pilot for calendar year 2015. SECTION 2. Therefore, the sum of Eighty Thousand Two Hundred Eighty Dollars ($80,280) is hereby appropriated in the General Benefits Fund for the Caltrain Go Pass Program and the ending fund balance in the General Benefits Fund is Attachment A decreased by Eighty Thousand Two Hundred Eighty Dollars ($80,280). SECTION 3. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 4. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager City Attorney Director of Planning & Community Environment Director of Administrative Services ATTACHMENT B City of Palo Alto (ID # 5119) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Design Services for Old Pumping Plant Rehabilitation Title: Approval of Contract No. C15155378 With Carollo Engineers, P. C. in the Total Amount Not to Exceed $291,335 to Provide Design Services for Old Pumping Plant (OPP) Rehabilitation at Regional Water Quality Control Plant - Capital Improvement Program Project WQ- 80021 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: Approve, and authorize the City Manager or his designee to execute, the attached contract with Carollo Engineers, P.C. (Attachment A) in an amount not to exceed $291,335 for design services for the Old Pumping Plant (OPP) Rehabilitation at the Regional Water Quality Control Plant Capital Improvement Program, Project WQ- 80021, including $264,850 for basic services and $26,485 for additional services. Background The Regional Water Quality Control Plant (RWQP) has two raw sewage lift pump stations one built in 1956 (old pumping plant, or OPP) and one in 1972 (new pumping plant). The OPP lifts raw sewage out of the sanitary sewers up to the main structure for wastewater treatment including primary, secondary, and tertiary treatment as well as final disinfection. The OPP serves as a backup to the new pumping plant when it is out of service for maintenance. Discussion The OPP’s concrete structure and its mechanical and electrical equipment have exceeded their useful lives. Pumps and valves leak raw sewage, no longer operate as intended, and utilize outdated and inefficient electrical controls. The concrete City of Palo Alto Page 2 is deteriorating with corrosion evident in sections of reinforcing steel. The equipment needs to be replaced for safety, efficiency, and operational needs. The OPP rehabilitation project is consistent with the Plant’s Long Range Facility Plan (LRFP) completed October 2012 and accepted by Council on July 2, 2012 (staff report ID 2914). The LRFP identified the need to use ongoing Capital Improvement Program wastewater treatment projects to replace or rehabilitate the aging OPP. Scope of Services Description The Consultant shall provide engineering services for evaluation, design of the pumping system, associated electrical systems such as motor control centers (MCCs) and variable frequency drives (VFDs), and concrete repair. The Consultant shall provide services during all phases of the project from preliminary option assessments, design and permitting, and engineering services during bid, construction, and startup. On July 22, 2014 a notice for Request for Proposals for design services for the OPP rehabilitation was posted to the City’s website and was sent to five design firms. Proposals were received from four firms on August 19, 2014. Summary of Solicitation Process Proposal Title/Number Design Of Old Pumping Plant (OPP) Rehabilitation At The Regional Water Quality Control Plant - RFP No. 155378 Proposed Length of Project 24 months Number of Proposals mailed &/or emailed 5 Total Days to Respond to Proposal 28 Pre-proposal Meeting Date July 29, 2014 Number of Company Attendees at Pre-proposal Meeting 5 firms Number of Proposals Received: 4 City of Palo Alto Page 3 Number of Companies Interviewed 2 Range of Proposal Amounts Submitted $199,765 to $372,239 Evaluation of Proposals An evaluation committee consisting of the RWQCP engineering staff reviewed the four proposals. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP. The criteria used to evaluate the proposing firms included: Quality and completeness of proposal; quality, performance, and effectiveness of the work plan; proposer's experience; proposer's ability to perform the work within the time specified; cost; proposer's financial stability; proposer's prior record of performance with the City; and proposer's compliance with applicable laws and regulations. Two firms were invited to participate in oral interviews on September 4, 2014. Carollo Engineers was selected because of its understanding of needed design services, the quality, innovation and thoroughness of its proposed work plan, and the professional experience of the key team members. Carollo Engineers submitted the second lowest fee proposal. During Carollo Engineer’s presentation and interview, Carollo Engineer’s team members best demonstrated an understanding of the Plant’s intentions for this rehabilitation project, especially in regards to the electrical system. Additionally, Carollo Engineers has more experience and local Bay area-based team members, which are needed to ensure a satisfactory design of complicated electrical and mechanical systems and to oversee construction issues. Carollo Engineers recently completed two structural infrastructure repair projects for the RWQCP, and their subconsultant, TTG, successfully completed a large capital improvement project design for the RWQCP’s standby diesel generators. Carollo Engineers and TTG have substantial understanding of the existing RWQCP corrosion and seismic issues and the electrical system. Carollo Engineers’ proposal reflects a more advanced level of thinking and design development compared to other proposals. Several design options had already been investigated and preliminary decision points presented, showing a good understanding of project issues. Carollo Engineers proposed a robust team of mechanical, electrical, and City of Palo Alto Page 4 structural engineers with professional licenses at both technical and managerial levels. Timeline The base design work is estimated to be completed nine months after the issuance of the notice to proceed; which is estimated to be issued in November 2014 pending funding approval. Construction is estimated to be completed twenty-four months after the issuance of notice to proceed, which is estimated to be issued in January 2016 after bidding process and funding approval. Resource Impact Funds for this project are included in the Plant Equipment Replacement (WQ- 80021) project in the Wastewater Treatment Fund. Policy Implications Authorization of this project does not represent a change in existing policies. Environmental Review This project is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes repair, maintenance, and minor alteration of publicly-owned wastewater facilities involving negligible expansion. Attachments:  Attachment A: Contract C15155378 Carollo Engineers (PDF) DocuSign Envelope ID: 83E1D908-9A06-4114-8F2B-341 EE9B29D72 CITY OF PALO ALTO CONTRACT NO. C15155378 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CAROLLO ENGINEERS, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 10th day of November, 2014, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and CAROLLO ENGINEERS, INC., a California Corporation, located at 2700 Ygnacio Valley Road, Walnut Creek, CA 94598 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to rehabilitate its Old Pumping Plant. CONSULTANT shall provide engineering services for evaluation, design of the pumping system, associated electrical systems and repair of the concrete structure for the pumping station at the R WQCP ("Project") and desires to engage a consultant to provide engineering services during all phases in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. D Optional On-Call Prov ision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by the City, as needed, with a Task Order assigned and approved by the City's Project Manager. Each. Task Order shall be in substantially the same form as Exhibit A-I. Each Task Order shall designate a City Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and the City may elect, but is not required, to C15155378 Design of the Old Pumping Plant Rehabilitation 1 of 28 Professional Services Rev Feb 2014 DocuSign Envelope 10: 83E 10908-9A06-4114-8F2B-341 EE9B29D72 authorize work up to the maximum compensation amount set forth in Section 4. C15155378 2of28 Design of the Old Pumping Plant Rehabilitation Professional Services Rev Feb 2014 DocuSign Envelope ID: B3E1D90B-9A06-4114-BF28-341 EE9829D72 SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Two Hundred and Sixty-Four Thousand Eight Hundred and Fifty Dollars ($264,850.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Two Hundred Ninety-One Thousand Three Hundred and Thirty-Five Dollars ($291,335.00). The applicable rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "c" . CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C- 1 "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all C1515537B Design of the Old Pumping Plant Rehabilitation 30f28 Professional Services Rev. Feb 2014 DocuSign Envelope ID: 83E1D908-9A06-4114-8F2B-341 EE9B29D72 licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works 'project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. IND I PENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. DOption A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. ~Option B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that C15155378 Design of the Old Pumping Plant Rehabililation 4of28 Professional Services Rev Feb 2014 DocuSign Envelope ID: B3E1D90B-9A06-4114-BF2B-341 EE9B29D72 subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: TTG Corporation V & A Consulting Engineers, Inc. ESA CONSUL T ANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSUL TANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Rick Chan as the principal-in-charge to have supervisory responsibility for the performance, progress, and execution of the Services and Sarwan Wason as the project manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Padmakar Chaobal, Public Works Department, Environmental Services Division, RWQCP 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone: (650) 329-2287. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon' their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSUL T ANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. CONSULTANT'S instruments of service hereunder are the printed hard copy drawings and specifications issued for the Project, whereas electronic media, including CAD files, are tools for their preparation. As a convenience to the CITY, the CONSULTANT shall furnish to the CITY both printed hard copies and electronic media. In the event of a conflict in their content, the printed hard copies shall take precedence over the electronic media. Because data stored in electronic media form can be altered, inadvertently, it is agreed that the CITY shall hold C1515537B Design of the Old Pumping Plant Rehabilitation 5 of 2B Professional Services Rev. Feb. 2014 DocuSign Envelope 10: B3E1D90B-9A06-4114-BF2B-341 EE9B29D72 CONSULTANT harmless from liability ansmg out of changes or modification to CONSULTANT's data in electronic media form in the CITY"s possession or released to others by the City. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. IZI[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. O[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. . 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULT ANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination ofthis Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. C15155378 Design of the Old Pumping Plant Rehabilitation 6 of 28 Professional Services Rev. Feb. 2014 DocuSign Envelope 10: 83E1D908-9AOS-4114-8F2B-341 EE9B29D72 SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the C15155378 Design of the Old Pumping Plant Rehabilitation 7of28 Professional Services Rev. Feb. 2014 DocuSign Envelope ID: 83E1 D908-9A06-4114-8F2B-341 EE9B29D72 City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4,20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not'acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" C15155378 Design of the Old Pumping Plant Rehabilitation 80f28 ProfeSSional Services Rev Feb_ 2014 DocuSign Envelope 10: 83E1D908-9AOS-4114-8F2B-341 EE9B29D72 as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. C15155378 Design of the Old Pumping Plant Rehabilitation 90f28 Professional Services Rev Feb 2014 DocuSign Envelope ID: 83E1D908-9A06-4114-8F2B-341 EE9B29D72 SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred Purchasing policies which are available at the City'S Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City'S Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. C15155378 Design of the Old Pumping Plant Rehabilitation 10 of 28 Professional Services Rev. Feb. 2014 DocuSign Envelope 10: 83E 1 D908-9A06-4114-8F28-341 EE9829D72 This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 CITY shall furnish CONSULTANT available studies, reports and other data pertinent to CONSULTANT'S services. The CONSULTANT shall be entitled to use all such information and services provided by CITY in performing CONSULTANT's services under this agreement. 25.11 CONSULTANT shall be named as additional primary insured(s) by the construction contractor's General Liability and Builders All Risk insurance policies. CONSULTANT shall not be responsible for the means, methods, techniques, sequences, or procedures of construction selected by construction contractors or the safety precautions and programs incident to the work of construction contractors and will not be responsible for construction contractors' failure to carry out work in accordance with the Contract Documents unless the means, methods, techniques, sequences, or procedures of construction are specified by the CONSULTANT. II II II II C15155378 Design ofthe Old Pumping Plant Rehabilitation 11 of 28 Professional Services Rev Feb 2014 DocuSign Envelope 10: 83E1D908-9A06-4114-8F2B-341 EE9B29D72 25.12 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.13 This Agreement may be signed in mUltiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO CAROLLO ENGINEERS, INC. . J / City Manager BY:~~ ~/ f;It, CILIA-- Name: Sarwan Wason /R-;"k Ch a-1-----' APPROVED AS TO FORM: Title: ~n"oy V. P. / ~~IJY ~ P, Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": EXHIBIT "C-l": EXHIBIT "0": C15155378 SCOPE OF WORK SCHEDULE OF PERFORMANCE COMPENSATION SCHEDULE OF RATES INSURANCE REQUIREMENTS 13 of 28 Design of the Old Pumping Plant Rehabilitation Professional Services Rev Feb 2014 DocuSign Envelope ID: B3E1 D90B-9A06-4114-BF2B-341 EE9B29D72 EXHIBIT" A" SCOPE OF SERVICES OLD PUMPING PLANT (OPP) REHABILITATION I. BACKGROUND The Palo Alto Regional Water Quality Control Plant (Plant or RWQCP) treats wastewater from six communities (the Partners). The City of Palo Alto (City) owns and operates the RWQCP. The service area is a mix of institutional, residential, and commercial uses consisting of approximately 223,100 residents. The Plant has a design capacity of 39 mgd, average treated flow of 20 mgd, and a wet weather capacity of 80 mgd. The plant has two raw sewage pump (RSP) lift stations. The 1934 original pumping plant (now the operations shop) was retired in 1956 with the construction of a pump station with three pumps (Nos. 7,8, and 9). The operations shop continues to serve as the building housing the MCC for the RSP Nos. 7,8, and 9. In 1972, another pump station was constructed with a motor room and four RSPs and spaces for two more (Nos. 1, 2, 3, 4, 5, and 6). In 1972, the 1956 pump station was designated as the "Old Pumping Plant" and the 1972 pump station designated as the "New Pumping Plant," or OPP and NPP, respectively. The OPP lifts wastewater from the pretreatment screening units to the primary influent channel via meter station. In 1999, the original screening at the OPP inlet was replaced with new screening/grinder system as part of a project that replaced the flow meter in the adjacent meter pit. A new double drum Channel Monster model CDD6020 grinding system was installed. In 2001, repair work was done on the pump(s) discharge header. The repairs involved installing a 28" 00 X 67" long spool piece in 30" 00 pipe at the OPP wall penetration and two 30"X28" reducing couplings. II. SCOPE OF WORK The City of Palo Alto, Department of Public Works, Regional Water Quality Control Plant (RWQCP or the Plant) intends to rehabilitate its old pumping plant. The Consultant (Engineer) shall provide engineering services for evaluation, design of the new pumping system, associated electrical systems and repair of the concrete structure for the pumping station at the RWQCP. Consultant (Engineer) shall provide engineering services during all phases of the project, from preliminary options assessments, design and permitting through support in commissioning and start up. A. Tasks C1515537B Design of the Old Pumping Plant Rehabilitation ProfeSSional Services Rev Feb_ 2014 DocuSign Envelope 10: 83E1D908-9AOB-4114-8F2B-341 EE9B29D72 Consultant's scope of work shall include, but not necessarily be limited to the following: Task 1 -Design Task 1.1 The wet pit channel has a suction pipe to each of the three pumping units. Design a replacement of all suction piping and piping supports. Task 1.2 The discharge pipe from each OPP pump connects to a 30-inch welded steel manifold and force main which discharges into the 60-inch force main to the primary sedimentation tanks. Design a replacement of all discharge piping and piping supports including the header through the wall and to connect to existing fusion bonded epoxy steel force main just outside the OPP pump room wall. Task 1.3 Beside the NPP flow meter, an 18-inch magnetic-type flow meter measures the OPP raw sewage flow rate in the meter pit, just ahead of the tie-in to the 60-inch force main. Design a replacement of OPP meter pit piping for installation of 30-inch line size piping and a new 30-inch Magmeter flow meter. The upgrade will allow for an increase in pumping capacity from the OPP. Task 1.4 8, and 9. The OPP has three existing pumping units, which are RSP Nos. 7, Rated gpm Flow Pump Manufacturer, Size, Speed (mgd) test No. HP & Model Control (mgd)1 TDH RPM 8 70/100 18-inch Morris ECD 2 2,500/ 4.3/ 38.5 589/710 Vertical Dry Pit speed 8,400 11.0 Pump (3.6/12.1) 7~ 150 18-inch Morris ECD None 10,000 10.7 ?? 705 Vertical Dry Pit (14.4) Pump 9 75 16-inch Morris ECD None 5,600 (8.1) 6.2 39 885 Vertical Dry Pit Pum~ Notes: 1. Flow test dated 10/24/2013 2. RSP No.7 -In the middle, between RSP No.8 (left) and RSP No.9 (right) Design a replacement of all three pumps and include new VFD controls. Evaluate hydraulic capacity of pretreatment (Le ., channel monster) and new pumping system; increase hydraulic capacity of the system to maximum extent possible. Currently, the motors driving the pumps are located in the motor room at upper elevation (-5.75'). The pumps located in the pump room at lower elevation (- 22.75'), are driven via extension drive shafts. Evaluate, whether submersible pump-motor sets can be used in the dry pit. thus eliminating the need for extension drive shafts and freeing up the space in motor room for possible other C15155378 Design of the Old Pumping Plant Rehabilitation 15 of 28 Professional Services Rev Feb 2014 DocuSign Envelope ID: 83E1 D908-9A06-4114-8F2B-341 EE9B29D72 use. Task 1.5 RSP Nos. 7 to 9 are provided with swing check valve protection; these pumps are isolated on the discharge and suction side by gate valves. Design a replacement of swing check valves. The check valves should work hydro- dynamically with the pump start/stop cycles controlled by the VFDs. Design a replacement of the manually operated gate valves. The new gate valves are to be electrically operated gate valves. Task 1.6 Each pump seal is protected by W4 water; however the OPP W4 does not pass through the 25 micron filter in the NPP basement. Design new pump seal piping and include 25 micron filter to match plant standard; include filter bypass. Task 1.7 Design replacement controls and level bubbler system for pumping system. Integrate control system with existing iFix HMI screens, SCADA data collection, and Allen Bradley PLC control. Task 1.8 Design replacement of gas monitoring system for confined space entry. Task 1.9 Design replacement power distribution systems from breakers at NPP and new motor control center currently located at the Ops Shop adjacent to the OPP. Task 1.10 Design repairs to structural concrete including the Cathodic Protection system around structure. [Review FCA for all OPP related recommendations] Task 1.11 At the OPP influent well, there is a leak from an abandoned 36-inch sewer connection to the OPP influent well. Design a solution to eliminate leak (e.g., foam injection, grout injection etc.). Task 1.12 Influent Well-Include specifications to vacuum out OPP influent well of all debris (e.g. ERS Industrial Services). Task 1.13 Review the (E) pretreatment screening/grinding system for possible retrofit to bar screen and screw press type system. Analyze the cost impact. Task 1.14 Review the (E) lifting lugs for adequacy. Provide adequate hoisting/rigging for the new equipment. Task 2 -Deconstruction of Existing OPP and construction coordination. C15155378 Develop plan and work restrictions; as a guide line for the contractor to perform the rehabilitation work (e.g. isolating the OPP wet well by plugging the outlet in the pit next to the OPP). This plan would provide a framework for the contractor to do construction work with minimal impact to plant operation, taking into account the seasonal flow conditions. 16 of 28 Protessional Services Rev Feb 2014 Design of the Old Pumping Plant Rehabilitation DocuSign Envelope ID: 83E1 D908-9AOB-4114-8F2B-341 EE9B29D72 Task 3 -Services during Bidding Consultant shall assist the City in preparation of construction bid package. Consultant shall respond to the requests for clarification and/or information from prospective bidders. Consultant shall assist the City with preparation of Project addenda and furnish the originals required for said addenda. Consultant shall attend and assist the City at the pre-bid conference and the walk through. Task 4 -Services during Construction Consultant shall review submittals from the contractor for conformance with the Contract Documents. The Consultant shall review and return the submittal comments to the City within seven calendar days. Consultant shall prepare written response to the Request for Information (RFI) submitted by the contractor. The Consultant shall review, comment and return the RFI responses within seven calendar days. Consultant shall review and validate the Contract Change Order requests submitted by contractor for accuracy and correctness, as requested by the City. As requested, the Consultant shall attend periodic Project Progress Meetings with the Contractor. Please allow for one meeting per month, at the minimum, during the construction phase. Consultant shall provide the technical support to the City during start up and commissioning of the rehabilitated pumping plant. Consultant shall work with Contractor and equipment manufacturer's representatives, as requested by the City. Consultant shall assist the City in monitoring, documenting and/or validating any testing required by the permitting agencies. Consultant shall review the "as-built" or "red line" drawings and documents maintained by the contractor during construction. Upon construction completion, Consultant shall prepare one full size, one half size (11 "X17") sets and one electronic copy of the record drawings. The electronic copy shall be in AutoCAD 3D Civil 2010 format. The record drawings shall consist of annotated contract drawings and electronic files showing changes in design and construction. Task 5 -Additional Services and Reimbursables 1. Additional Services C15155378 Consultant shall provide additional services if requested by the City. These services may include additional work due to extension of project scope, additional deliverables/documents, field testing, or other miscellaneous unforeseen expenses. 17 of28 Professional Services Rev Feb 2014 Design of the Old Pumping Plant Rehabilitation DocuSign Envelope 10: 83E1 D908-9A06-4114-8F2B-341 EE9B29D72 2. Reimbursables Fees for this should include miscellaneous costs incurred such as travel, copying documents, telephone charges, film, video, photographs, computer, and postage expenses; and assistance during start up and testing. The expenses for above are reimbursed at cost. III. DELIVERABLES Design Kick-off and Workshops -Meet with the project/plant staff to assess the plant's needs, requirements and restrictions for this project. -Include a minimum of two workshops for this purpose in addition to the kick-off meeting and design review meetings. Design 30% -Develop Design Criteria Provide technical memorandum (tech memo) detailing hydraulic design decisions and analysis. The memo should also include the details of the electrical upgrades needed to support the hydraulic design decisions. -Provide preliminary flow diagram, P. & I. D.s, electrical single line diagram and proposed control scheme to integrate the new electrical system in the Plant's existing SCADA network. -Provide four sets of technical memorandum and associated documents. Design 60%- Develop construction documents, which include drawings, technical specifications, work restrictions and other special conditions. Consultant shall incorporate all the comments and concerns issued during the previous review. The design shall be the true reflection of City's intent for this project; which is to maximize the pumping plant's RS pumping capacity. Provide four sets of drawings, specifications and other 60% deliverable documents. Provide a cost estimate for the demolition and construction work for each task. Design 90% and Final - C15155378 Consultant shall perform final updates derived from City's comments and Consultant's own internal quality control and audits. The system design at this stage will include complete construction documents with plans, specifications, design calculations and final construction cost estimate. Prepare the design package to secure applicable permitting and soliciting construction I procurement for each task. Provide two wet stamped hard copies, one digital copy in PDF format and one in AutoCAD 3D Civil 2010 format of the final stamped plans. Provide two hard copies & one digital copy in MS Word format of the final stamped specifications. END OF SECTION - 18 of 28 Professional Services Rev Feb. 2014 Design of the Old Pumping Plant Rehabilitation DocuSign Envelope 10: 83E1D908-9AOB-4114-8F2B-341 EE9B29D72 EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perfonn the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the tenn of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones 1. Design Kick-off meeting 2. Design workshop I 3. Design 30% 4. Design workshop 2 5. Design 60% 6. Design 90% 7. Design Final 8. Work plan for ( E ) OPP Deconstruction 9. Services during Bidding 10. Services during Construction & closure C15155378 19 of 28 Design of the Old Pumping Plant Rehabilitation Completion No. of Weeks FromNTP 2 6 9 14 18 28 34 18 TBD TBD ProfessIOnal Services Rev Feb_ 2014 OocuSign Envelope 10: 83E1D908-9A06-4114-BF2B-341 EE9B29072 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-l up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed $264,850. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $291,335. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $264,850 and the total compensation for Additional Services does not exceed $26,485. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 (Design) Task 2 (Plan for Deconstruction of (E) OPP) Task 3 (Services during Bidding) Task 4 (Services during Construction) $174,639 $5,675 $15,627 $62,909 Sub-total Basic Services $258,850 Reimbursable Expenses $6,000 Total Basic Services and Reimbursable expenses $264,850 Additional Services (Not to Exceed) $26,485 C15155378 20 of 28 Design of the Old Pumping Plant Rehabilitation Professional Services Rev Feb. 2014 DocuSign Envelope ID: 83E1 D908-9A06-4114-8F28-341 EE9829D72 Maximum Total Compensation $291,335 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost su~ject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1,000 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: 1. Final design and construction package for alternate pre-treatment, such as replacement of existing Channel Monster with new higher capacity Channel Monster or new bar screens and screw presses at OPP. 2. Final design and construction package for replacement of existing electrical switchgear at the NPP if required because of the need for increased capacity ( except replacement of the existing breaker with new breaker). C15155378 Design of the Old Pumping Plant Rehabilitation 21 of 28 Professional Services Rev. Feb. 2014 DocuSign Envelope ID: 83E1 D908-9AOS-4114-8F2B-341 EE9B29D7.2 EXHmIT "C-l" HOURLY RATE SCHEDULE The following pages are the Hourly Rate Schedule for Carollo Engineers, Inc., TTG, V & A Consulting Engineers and ESA. C15155378 Design of the Old Pumping Plant Rehabilitation 22 of 28 Professional Services Rev Feb. 2014 OocuSign Envelope 10: 83E1 D908-9A06-4114-8F2B-341 EE9B29D72 CAROLLO ENGINEERS, INC. FEE SCHEDULE As of January 1, 2014 Engineers/Scientists Assistant Professional Professional Project Professional Lead Project Professional Senior Professional Technicians . Technicians Support Staff Document Processing I Clerical Project Equipment Communication Expense (PECE) Per DL Hour Other Direct Expenses Travel and Subsistence Mileage at IRS Reimbursement Rate Effective January 1, 2014 Subconsultant Other Direct Cost Expert Witness Hourlv Rate $154.00 188.00 223.00 244.00 265.00 .140.00 98.00 11.70 at cost $.56 per mile cost + 10% cost + 10% Rate x2.0 This fee schedule is subject to annual revisions due to labor adjustments. Proposal Costs Sheet and Rates C15155378 Design of the Old Pumping Plant Rehabilitation 24\,1;\tiMlnt80\Palo Alm\Prop\OPP Rchab_0814\InDc,ij:n\C".t Propo;al.indd I , DocuSign Envelope 10: 83E1D908-9AOB-4114-8F2B-341 EE9B29D72 V&A CONSUL nNG ENGINEERS 2013 FAR Overhead Rate Is 2.23 for a 3.553 Multiplier Billing Rites Table 2012 FAR Overhead Rate Is 2.32 for a 3.652 Multiplier FAR Overhead Ind Multiplier Rate. King County Audit 2011201.70 for 3.3187 Multiplier (Mlchall Williams Em1l115l15/ 8/151148:18 AM 2011 FAR Overhead Rate is 2.16 for a 3.476 MultIplle 14-0269 City of Palo Alto Title Base Benefits Overhead Fee Multiplier Standard FAR Salary Hourly 32% 191"10 10% Billing Fee Multiplier Updated Rate Rate 2014 PrincipElI-ln-Charge Glenn Willson 79.33 25.38 151.51 25.62 281.85 283 3.553 12110112 Project Manager Keith Packard 58.17 18.62 111.11 18.79 206.69 221 3.553 819113 Sr. Project Engineer Manny Najar 55.05 17.62 105.14 17.78 195.59 206 3.553 6/24/13 Associate Engineer Dan Day 45.19 14.46 86.32 14.60 160.57 165 3.553 2111113 Assistant Engineer Mark Tam 39.66 12.69 75.76 12.81 140.92 134 3.553 10/27112 Assistant Engineer Matt Snow 31.73 10.15 60.61 10.25 112.74 134 3.553 311/14 Engineer1ng Assistant Dalouny Phannavon 38.46 12.31 73.46 12.42 136.65 124 3.553 511/13 Engineering Assistant Yuliya Scales 33.65 10.77 64.28 10.87 119.57 124 3.553 5/21113 Admin AssistlClerical Stephanie Lee 27.88 6.92 53.26 9.01 99.07 82 3.553 613/13 ESA Billing Rates -2014 Labor Category I Level I I Le'Jel ll I Le'lcl ill Senior Director Direc10r Managing Associate Senior Associate Associate Project Technicians Proposal Costs Sheet and Rates C15155378 225 190 155 130 95 75 Design of the Old Pumping Plant Rehabilitation 240 255 205 215 170 · 185 . I 140 150 110 120 90 110 2&!~~~80\P.'o Alw\ProplOPP Rchoh_ OBI4I1nDcsign\Cos[ Propo,.l.indd OocuSign Envelope 10: 83E1D908-9A06-4114-8F2B-341 EE9B29072 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE wrrn CITY'S INSURANCE REQUlREMENTS AS SPECifiED BELOW· MINIMUM LIMITS REQUIRE TYPE OF COVERAGE REQUIREMENT 0 YES YES YES YES YElS YES EACH AGGREGATE OCCURRENCE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE. COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1.000.000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND 8. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY C15155378 Design of the Old Pumping Plant Rehabilitation 270f28 Professional Services Rev Feb 2014 DocuSign Envelope 10: 83E1D908-9A06-4114-8F2B-341 EE9B29D72 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION I. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (I 0) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE EMAILED OR MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303. EMAIL: InsuranceCerts@CityofPaloAlto.org C15155378 28 of 28 Design of the Old Pumping Plant Rehabilitation Professional Services Rev Feb 2014 City of Palo Alto (ID # 5242) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Our Town Grant Application Title: Approval of the Submission of a National Endowment for the Arts Our Town Grant Application From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council authorize: 1) Staff to submit of an application for an “Our Town” grant (Attachment A) through the National Endowment for the Arts for livability that focuses on the Cubberley campus; 2) The Mayor to write a letter in support of the grant application (Attachment B); and 3) The City Manager or his designee from the Community Services Department to manage the grant, including submission of the grant, reports and requests for reimbursement. Executive Summary The “Our Town” grant from the National Endowment for the Arts (Attachment A) will support creative placemaking arts engagement projects at the Cubberley Community Center. “Creative placemaking” is defined as the integration of artists and arts organizations in the development of physical places that are publicly accessible in collaboration with the community. The intended purpose of the grant is to foster meaningful engagement between the public and the existing Cubberley stakeholders, thereby animating the environment and thus, transforming it into a dynamic cultural destination. By finding the synergy in this existing community asset, the grant will provide an important opportunity to transform Cubberley into a thriving arts and cultural destination that is cheerfully more than the sum of its parts. Using the feedback given by the NEA regarding the “Our Town” application submitted last year, staff feels that this application and concept will have a greater chance of being funded. The project will not displace any of the existing Cubberley users, but is intended to engage them in creative endeavors, should they choose to participate. City of Palo Alto Page 2 Background Cubberley Community Center is on the campus of the former Cubberley High School, which closed in 1979. Cubberley High School was the setting of Ron Jones' teaching experiment, The Third Wave, and was one of three public high schools in Palo Alto in the 1960s and 1970s. Today, Cubberley Community Center is home to several community organizations and amenities, such as a Chinese reading room, dance classes, artist studios, gyms and ball fields, as well as a theater. Palo Alto Unified School District (PAUSD) owns the land and leases it to the City of Palo Alto. Discussion The existing use of the Cubberley site includes a broad range of stakeholders. The Arts and Science Division feels that creative placemaking and public art would be excellent ways to bring these stakeholders together in collaborative projects and to create a truly vibrant venue for community engagement. The activities proposed here will in no way displace the current Cubberley stakeholders or the various users of the site and amenities. Staff proposes to make Cubberley a cultural destination by adding the element of synergy so that Cubberley becomes more than the sum of its parts. We would achieve this by creating dynamic, interdisciplinary programming committed to innovation, creativity and social-inclusion. In partnership with local and regional non-profit cultural groups (institutions like Djerassi, PAUSD, Stanford Arts and others) we will: create a rich schedule of regular visual, performing and educational arts events; provide exhibition space for local artists and community groups; produce temporary art installations; and develop arts education programs for youth. The “Our Town” grant from the National Endowment for the Arts will allow us to make Cubberley a truly dynamic, welcoming and animated place for community engagement, innovation and creativity. The Cubberley model could be a cultural trend-setter contributing to vitality of the Bay Area and reinforcing a sense of pride and shared values among local communities. Cubberley already has a vibrant visual artist studio program, a panapoly of cultural and performing arts groups and nonprofit arts and service organizations. Arts & Science staff has been in discussion with our Community Services partners, the Cubberley Artist Studio Program artists, and the neighborhood stakeholders regarding the many possibilities to engage the community and transform Cubberley into a creative cultural destination where arts are integral in the creative discussions and activities that take place. In addition, the “Our Town” grant would engage the artists involved in the recently re-launched and re-energized Cubberley Artist Studios program, including the addition of: a) a larger diversity of types of artists; b) transformation of some studios into incubator-like shared-use spaces for digital media artists, printmakers, jewelers or creative entrepreneurs; and c) artists who are committed to engaging with the City of Palo Alto Page 3 community resulting in more and regular cultural activities like performances, poetry readings, lectures, etc. The possibilities for these and other creative placemeking projects at the existing Cubberley site are tremendous. The Council has been discussing possible ways to gather input from the community about core values, this type of artist led project could be an excellent way to gather some of that important insight while reanimating the Cubberley campus. Resource Impact and Timeline The National Endowment for the Arts’ “Our Town” Grant funds for creative placemaking ranges between $25,000 and $200,000, with the average being $75,000. Staff is currently determining the request amount. The applications are due December 15, 2014 and awards will be announced early summer 2015. The City of Palo Alto would then have up to two years for the implementation of the creative placemaking activities. The City’s grant match requirement is 100% of the awarded grant amount. Staff plans to fulfill the matching requirement with in-kind donations and volunteer hours from its partners. The grant match requirements will be fulfilled within the department’s existing budget subject to annual appropriations. The Mayor is required to write a letter of support for the project, indicating and confirming that this is the one and only “Our Town” proposal that the City of Palo Alto supports. Policy Implications Staff will fully comply with the rules and policies for grant submission as outlined in City Policy 1-12: Grant and Funding request Applications. Submission of a grant application for the enhancement of Cubberley Community Center is consistent with Policy C-19 of the Community Services Element of the City’s Comprehensive Plan: “Develop improvement plans for the maintenance, restoration and enhancement of community facilities, and keep these facilities viable community assets by investing the necessary resources.” Environmental Review Submission of a grant proposal is not considered a project under the California Environmental Quality Act. Attachments:  Our Town Grant Description (PDF)  Draft letter from the Mayor (DOCX)  Grant Application Authorization (PDF) DRAFT November XX, 2014 To: National Endowment for the Art/Our Town Panelists: In the City of Palo Alto, California, the Mayor is the highest ranking government official. Therefore, on behalf of the City of Palo Alto, I am pleased to support this Our Town grant application, submitted to the National Endowment for the Arts by the City of Palo Alto’s Division of Arts & Science. The application also has the support of the City Council. This is the only application to Our Town that is being submitted this year for our community. The project planned for Cubberley Community Center will bring a much needed synergy and connection between the many stakeholders who use the existing facility, the Palo Alto Unified School District, and the broader community through creative placemaking initiatives. The proposed Our Town project will transform Cubberley to become a much-needed cultural destination within the City. The broad community engagement, improved livability, and creative collaborative environment are all in line with existing priorities and initiatives of the City. Thank you for your consideration of this proposal. Sincerely, Nancy Shepherd Mayor 250 Hamilton Avenue Palo alto, CA 94301 650.380.8003 Nancy.Shepherd@CityofPlaoAlto.org City of Palo Alto (ID # 5191) City Council Staff Report Report Type: Action Items Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Council Adoption of HE Title: PUBLIC HEARING: Resolution Adopting the 2015-2023 Housing Element of the Comprehensive Plan and Associated Mitigated Negative Declaration and Mitigation Monitoring Program From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council approve a Resolution (Attachment A) to adopt: 1) the Mitigated Negative Declaration, 2) the Mitigation Monitoring and Reporting Program, and 3) the Revised 2015-2023 Housing Element Update Public Review Draft as the Housing Element of the City’s Comprehensive Plan. Executive Summary Every local jurisdiction in California is required to maintain the housing element of its general plan in keeping with State housing laws. According to those laws, Palo Alto and other Bay Area jurisdictions must complete the update of their housing elements for the planning period 2015- 2023 and gain State “certification” before the end of January 2015. The City has been working on its Housing Element update since early 2014, and need to make very few adjustments to its existing Housing Element, which was adopted quite recently -- in August 2013. Nonetheless, the City has held public meetings at the City Council, the Planning & Transportation Commission (PTC), the City Council’s Regional Housing Mandate Committee, and a Community Panel, as well as public workshops. There have also been considerable staff and consultant efforts, an on-line questionnaire, consultation with staff of the State Department of Housing and Community Development (HCD), and correspondence with the housing advocates who monitor the City’s progress in meeting State requirements. The City Council provided their direction regarding housing sites to be included in the Housing Element Update on June 2, 2014 meeting, and elected to include only sites that were consistent with existing zoning (i.e. no zoning changes would be required). The Council also directed staff to include a program in the Housing Element committing the City to examine eliminating some sites in South Palo Alto and substituting other, more transit accessible sites after State City of Palo Alto Page 2 certification. Based on this direction, staff submitted an Administrative Draft to HCD for their initial consultation on July 7, 2014. Following a series of conference calls between staff of HCD and the City’s staff/consultant to discuss necessary revisions to the draft Housing Element, HCD provided a September 5, 2014, letter to the City stating that the draft Housing Element, with revisions, is in statutory compliance with Housing Element law. A summary of the HCD discussions are noted later in this report and HCD’s letter is provided as Attachment B. The Administrative Draft was revised to reflect the necessary revisions discussed with staff of HCD, as well as programs and text changes recommended by the Community Panel and supported by the Regional Housing Mandate Committee and the PTC over the course of the summer. The resulting Public Hearing draft was distributed to the Council, posted on the City’s website, and disseminated to interested parties on September 19, 2014. The Housing Community Panel (October 30, 2014), the Planning and Transportation Commission (October 1, 2014) and the Regional Housing Mandate Committee (October 9, 2014) have recommended that the City Council adopt the Public Hearing Draft with several revisions as noted in the proposed resolution. Council adoption of the Public Hearing draft would be the final step in the update process for its 2015-2023 Housing Element and would put the City on schedule to meet the statutory deadline for State certification at the end of January 2015. If adopted, staff will submit the Draft to HCD for their certification at the end of November. The Public Hearing draft can be viewed online at: http://www.cityofpaloalto.org/civicax/filebank/documents/43978. Background The City of Palo Alto is required to update its Housing Element per State Housing Element Law. The State deadline to complete the update process, which concludes with HCD certification, is January 31, 2015. (There is a 120 day grace period however if certain requirements are met.) If the deadline for certification is not met, there are significant penalties including loss of eligibility for transportation funding and having to have a certified housing element every four years. The greatest penalty for not complying with the law is the risk of legal challenge, with its associated costs (i.e. mandatory attorney’s fees) and potential loss of local control over land use matters if the court were to assume jurisdiction, as provided for in the statute. Finally, if the City fails to adopt a housing element in this cycle, the units assigned for this cycle will be carried forward to the following cycle further increasing the City’s fair share. As stated, California State Housing Element law requires each city and county to update its housing element every eight years to ensure that all localities provide adequate development sites for sufficient new housing to be built to meet their fair share of the regional housing need. As part of the Regional Housing Needs Allocation (RHNA) process overseen by the Association of Bay Area Governments (ABAG), the City of Palo Alto was assigned a quantified goal of 1,988 units, which represents the City’s “fair share” of projected housing need for the 2015-2023 City of Palo Alto Page 3 planning period, distributed among the following income groups: very low (345 units), low (346 units), moderate (278 units) and above moderate (587 units) income categories. Housing Element law is the State’s primary strategy to increase housing supply, choice and affordability. The housing element identifies the existing and projected housing needs of all economic segments of the community, including the homeless and persons with disabilities, and promotes a variety of housing types, including multifamily rental units, transitional and other types of supportive housing. The housing element also defines the policies and programs that the community will implement to achieve its housing goals and objectives developed to address its housing needs. It is important to note that Housing Element law only requires the City to provide residential zoning opportunities to accommodate its RHNA allocation. It does not require the City to approve or construct such housing. If the City fails to identify or make available adequate sites to accommodate its RHNA assignment, the City may be required to carry those units over into the next planning cycle, thus increasing the number of sites required to be identified in the future. On June 2, 2014, the City Council authorized staff to submit the Draft 2015-2023 Housing Element to HCD for review, and the document was submitted to HCD on July 7, 2014. Based on Council direction, the Administrative Draft Housing Element made use of sites from the current housing element (where they were still available), existing units and second units (to the extent permitted by the law), and other housing sites necessary to accommodate the City’s RHNA (i.e. identification of 1,988 units on potential housing sites and a surplus of about 199 units) without requiring rezoning of any property within the City. The sites selected are concentrated in the Downtown, the California Avenue area, El Camino Real corridor and the San Antonio Ave. corridor, and the Council directed staff to explore trading out the San Antonio and El Camino Real sites for additional sites and densities in Downtown and the Cal Ave area during the Comprehensive Plan Update process (i.e. after Housing Element certification). The State law requires community input as part of the housing element update process and a Housing Element Community Panel (Panel) was formed with representatives from the Palo Alto Unified School District, neighborhood groups, both affordable and market rate housing developers, and interested residents. This group met on a monthly basis at meetings that were open to the general public. In addition, two advertised Housing Affordability workshops, as part of the Our Palo Alto process, were held on April 28 and April 30 at different times and areas in the City, and an online questionnaire was prepared to solicit responses from residents on a number of land use topics including housing affordability, jobs/housing issues, and possible siting of future housing sites. Over 420 persons participated in the questionnaire. A Housing Element website was also created so that the public could access a number of Housing Element documents and resources. All Community Panel meetings were open to the public and the City of Palo Alto Page 4 public was given the opportunity to speak at each meeting. The City is eligible for HCD’s streamlined review process. Through the streamlined process, HCD will only review proposed revisions between the current Housing Element and the Public Hearing draft instead of reviewing the entire submitted draft. In addition, the streamlined draft process provides HCD a maximum of 60 days to certify the draft. Without the streamlined process, HCD is allowed 90 days to review and certify a housing element. Discussion HCD Negotiation and September 5, 2104 HCD Correspondence Staff talked to HCD staff a number of times during their review process, and each time learned what HCD’s concerns were with the Administrative Draft, and discussed ways they could be addressed via changes to the text of the draft and proposed addition of housing programs. Some of the concerns related to the absence of a lot consolidation program and the need to revise emergency shelter, transitional housing and supportive housing requirements to meet State requirements. HCD also noted that many of the City’s housing sites were on small sites and many were already developed with commercial uses. Many of the HCD comments were based on public comments on the City’s draft that were received by HCD during the HCD review period. HCD received six letters from the public. Those letters and the City’s responses are included as Attachment C. Public comments about the City draft included:  The City’s Planned Community zone district “timeout” is a constraint to housing development.  There is a lack of “commitment” in program language  Concern about the reliance on small sites for affordable housing development Based on HCD’s concerns, staff proposed additional text recognizing that the PC zone was an important tool in the development of affordable housing. Staff also modified the language of many proposed programs with “adopt as appropriate” type language to strengthen the commitment language in the programs. On September 5, 2014, the City received a letter from HCD stating that the City’s draft, with the proposed changes, is in compliance with State housing law. A key component of the compliance was the proposed revision to Program 2.1.9 in which the City committed to amend the zoning code to provide lot consolidation incentives for 100% affordable housing developments. By including this program, staff addressed HCD’s concern about development potential of small lots. A copy of the HCD letter has been included as Attachment B. Public Hearing Draft The Public Hearing draft includes all the recommended programs and text changes since the submittal of the July 7 Administrative draft. Any new changes are highlighted in blue in the City of Palo Alto Page 5 Public Hearing draft. Most of the changes are text being added to the draft. Deleted text is represented with a strikethrough. Some of the additional programs added after the release of the July 7 Administrative draft include: New Program (Page #) Program Summary Program 2.1.11 (133) Consider implementing the Pedestrian and Transit Oriented Development overlay for University Ave. Program 2.1.12 (133) Evaluate developing specific or precise plans for Downtown, California Ave. and El Camino Real areas Program 2.2.6 (135) For extremely small parcels zoned for mixed use, consider exclusive residential through the transfer of zoning requirements between adjacent parcels to create horizontal mixed used project. Program 2.2.8 (135) Assess potential of removing maximum residential densities in mixed use zoning to encourage the creation of smaller units within the allowable Floor Area Ratio Program 3.3.7 (143) Prepare a local parking demand database to determine different parking standards for different housing uses. These changes include text and program revisions in response to the HCD comments, and two minor adjustments to the sites inventory (eliminating four units on one site and adding three to another). September 10 and October 1 Planning and Transportation Commission At the September 10, 2014 meeting, the PTC reviewed a summary of proposed programs and text changes as recommended by the Community Panel and RHMC, as well as feedback from HCD. Some of the PTC comments included:  For Program 2.2.6 (horizontal mixed use), a ground floor retail requirement should be considered.  For Program 2.1.9 (lot consolidation incentives for affordable housing), identify possible incentives for lot consolidation. Individual commissioners also offered suggestions about protecting R-1 neighborhoods from impacts of adjacent multi-family development, and suggested the City explore the idea of putting a limit on the size of new dwelling units. The meeting was continued to October 1, 2014 for the PTC’s final recommendation, and on that date, the PTC recommended approval with no revisions to the Public Hearing Draft. October 9, 2014 Regional Housing Mandate Committee The RHMC met on October 9, 2014 to review the Public Hearing Draft. The RHMC recommended some minor revisions to the draft. The following summarizes the revisions recommended by the RHMC, which are reflected in the attached resolution. City of Palo Alto Page 6 1. Program 2.1.3 (Page 131 of Public Hearing Draft) has been revised to state “Amend the zoning code to specify the minimum density of eight dwelling units per acre in all RM-15 districts. Consider amending the zoning code to specify minimum density for other multifamily zoning districts” 2. Remove the phrase “setback modifications” from Program H2.1.9 (Page 133). 3. Add a sentence stating “There is a concern that the commercial developers are not paying an equitable share of funds for housing (see Program 3.1.6).” after the last sentence in the first paragraph on page 78 under the heading “Local Funds,” in Chapter 3 of the Public Hearing draft. With the revisions, the Regional Housing Mandate Committee recommended to the City Council adoption of the Public Hearing Draft of the 2015-2023 Housing Element, Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program. October 30 Housing Community Panel The Housing Community Panel met on October 30, 2014 to make their Housing Element recommendation. The Panel recommended that the City Council adopt the Public Hearing Draft of the 2015-2023 Housing Element without the proposed RHMC revisions by a vote of 10-2. The two dissenters supported recommending approval of the Public Hearing Draft with the RHMC revisions. Environmental Review An initial study and Mitigated Negative Declaration have been prepared for the Draft 2015- 2023 Housing Element (Attachment D) and the 30 day public review period began on August 29, 2014. A Mitigation Monitoring and Reporting Program has also been prepared (Attachment E). Based on the findings of the Initial Study, mitigation measures were included to require site- specific review for traffic and hazardous materials related impacts when specific housing development projects are proposed. All of the sites identified for housing are already zoned for residential use and are located in infill areas. The review period ended on September 30, 2014. Some comments were received from CalTrans and the California Public Utilities Commission after the September 30th date. Their comments are included as Attachment F. Timeline With the favorable review of the September 5, 2014 HCD letter, the City can move ahead with adopting the Public Hearing draft without any additional significant revisions. As mentioned, the Community Panel, Planning and Transportation Commission and Regional Housing Mandate Committee have all made their recommendations for the Council to adopt the Public Hearing draft. If adopted, staff will make the recommended changes and submit a final revised version to HCD for their final review. By law, HCD has a maximum of 60 days to review and certify the submitted element. City of Palo Alto Page 7 Resource Impact Substantial staff time has been involved in updating the Housing Element for the 2015-2023 period, along with a contract of approximately $57,000 with MIG Consultants. Additional staff resources will be required to implement Housing Element programs and to provide annual updates to HCD in accordance with State requirements. Policy Implications Housing Element updates are State mandated. Cities and counties which do not meet the statutory deadline for the housing element update will be faced with the requirement to update their housing elements more frequently. Also, without compliant housing elements, jurisdictions may be faced with costly legal challenges pursuant to housing element law and/or fair housing law. Based on a legal challenge, a court may restrict local jurisdictions from issuing building permits and may assume jurisdiction over zoning and land use decisions necessary to bring the jurisdictions into compliance with the law. Also, if the City fails to identify or make available adequate sites to accommodate its RHNA assignment within a given planning cycle, the City may be required to carry those units over into the next planning cycle, thus increasing the number of sites to be identified in the upcoming cycle. Attachments:  Attachment A: Resolution to Adopt 2015-2023 Housing Element (PDF)  Attachment B: HCD Palo Alto review letter September 5, 2014 (PDF)  Attachment C: Housing Element Public Comments and City Responses (PDF)  Attachment D: Initial Study/Mitigated Negative Declaration - Palo Alto Housing Element, August 29, 2014 (PDF)  Attachment E: Mitigation Monitoring and Reporting Program (DOCX)  Attachment F: CEQA Comments Received from State Agencies (PDF)  Attachment G: Public Comment (PDF) Not Yet Approved Resolution No_______ Resolution of the Council of the City of Palo Alto Adopting the Revised 2015-2023 Housing Element of the Comprehensive Plan and Associated Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program R E C I T A L S A. The City of Palo Alto is required to update its Housing Element per State Housing Element law every eight years to ensure adequate development sites for sufficient new housing be built to meet the fair share of the Regional Housing Needs Allocation (RHNA). B. Palo Alto was assigned a quantified goal of 1,988 units, which represents the City’s “fair share” of projected housing need for the 2014-2022 RHNA planning period. C. The Housing Element identifies the existing and projected housing needs for all economic segments of the community, including the homeless and persons with disabilities. D. The Housing Element defines the policies and programs that the community will implement to achieve its housing goals and objectives developed to address its housing needs. E. On June 2, 2014, the City Council authorized staff to submit the Administrative Draft 2015-2023 Housing Element to the Department of Housing and Community Development (HCD) for review, electing to carry forward sites from the existing Housing Element, use existing units and second units to the extent allowable, and include additional sites that are consistent with existing zoning. F. On July 7, 2014, the City submitted its Administrative Draft of the 2015-2023 Housing Element to HCD. G. In addition to housing sites, the Administrative Draft Housing Element included policies and programs to encourage the production of housing. H. City staff conducted a series of conversations with staff of HCD to understand their concerns and propose additional text and program modifications to address those concerns. I. On September 5, 2014, the HCD issued a finding that the Draft of the 2015- 2023 Housing Element, with the proposed revisions, would comply with State Housing Element Law when adopted by the Council. J. On September 18, 2014 City staff prepared and disseminated a revised Public Hearing Draft of the Housing Element, containing the revisions discussed with staff of 1 141031 jb 0131279 Attachment A Not Yet Approved HCD as well as some additional text and programs developed by the Housing Community Panel and reviewed and accepted by the Regional Housing Mandate Committee. K. On October 1, 2014, the Planning and Transportation Commission conducted a hearing on the 2015-2023 Housing Element and recommended that the City Council adopt the Housing Element. L. On October 9, 2014, the Regional Housing Mandate Committee conducted a hearing on the 2015-2023 Housing Element and recommended that the City Council adopt the Housing Element with the three changes specified in Section 1 below. M. On October 30, 2014, the Housing Community Panel recommended that the City Council adopt the Public Hearing Draft as published. N. On November 10, 2014, the City Council reviewed the Mitigated Negative Declaration and associated Mitigation Monitoring Plan and conducted a public hearing on the 2015-2023 Housing Element. O. The Council desires to adopt the revised 2015-2023 Housing Element of the Comprehensive Plan to comply with State Housing Element law. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Public Hearing Draft of the 2015-2023 City of Palo Alto Housing Element dated September 18, 2014, is hereby adopted and incorporated into the Palo Alto Comprehensive Plan, subject to the following modifications recommended by the Regional Housing Mandate Committee: 1. Program 2.1.3 (Page 131 of Public Hearing Draft) is revised to state “Amend the zoning code to specify the minimum density of eight dwelling units per acre in all RM-15 districts. Consider amending the zoning code to specify minimum density for other multifamily zoning districts” 2. The phrase “setback modifications” is removed from Program H2.1.9 (Page 133). 3. A sentence is added after the last sentence in the first paragraph on page 78 under the heading “Local Funds,” in Chapter 3 of the Public Hearing draft stating “There is a concern that the commercial developers are not paying an equitable share of funds for housing (see Program 3.1.6).”. SECTION 2. City staff may perform minor, non-substantive edits to the 2015- 2023 City of Palo Alto Housing Element without additional Council review. 2 141031 jb 0131279 Not Yet Approved SECTION 3. This Element supersedes the adopted August 15, 2013 Housing Element. SECTION 4. The City Council hereby adopts the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for this project in accordance with the California Environmental Quality Act. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ____________________________ City Manager _________________________ Senior Asst. City Attorney ____________________________ Director of Planning and Community Environment 3 141031 jb 0131279 ATTACHMENT B HCD Review of Palo Alto's Housing Element Date September 5, 2014 Page 2 of 2 Please note, the element includes several program actions where the City indicates it will explore, consider or assess implementation of programs and "adopted as appropriate". Successful implementation of these and other programs early in the planning period is critical to the success of the City's housing strategies to meet its regional housing need allocation, partially for lower income households. The City must monitor and report on the results of this and other programs through the annual progress report, required pursuant to Government Code Section 65400. Pursuant to GC Section 65863, local governments must ensure the inventory of sites accommodate the regional housing need throughout the planning period of the element. In addition, no local government action shall reduce, require or permit the reduction of the residential density for any parcel, or allow development of any parcel , at a lower residential density than identified in the site inventory or program unless the local government makes written findings. For example, findings must demonstrate the reduction is consistent with the adopted general plan, including the draft housing element and the remaining sites identified in the housing element are adequate to accommodate the jurisdiction's share of the regional housing need . The Department appreciates the hard work and dedication of Mr. Wong and Ms. Sharrow, in preparation of the housing element and looks forward to receiving Palo Alto's adopted housing element. If you have any questions or need additional technical assistance, please contact James Johnson, of our staff, at (916) 263-7426. Sincere! , cc: Sam Tepperman-Gelfant, Public Advocates Edie Keating, Palo Alto Resident Nadia Aziz, Public Interest Law Firm Peter Campos, BIA Bay Area ATTACHMENT C James Keene, City Manager June 23, 2014 Page 2 of3 its affordable housing need as required by Government Code§§ 65583, 65583.2, and 65913.1. Sixty-nine percent of the development capacity identified in the Housing Element was on sites under one acre in size (1,161 out of 1,680 units), making rezoning_ of the larger Maybell site and consolidation of small sites into larger parcels essential to accommodating lower-income housing needs. In reviewing the City's Housing Element for statutory compliance last year, the California Department of Housing and Community Development (HCD) specifically highlighted the importance of timely implementation of these programs.See Letter from HCD, dated March 29, 2013 (basing its conclusion that "[t]he revised draft element meets the statutory requirements" on "successful implementation of Programs H2.1.10, H2.2.2, H2.2.7 and H2.2.9.") (copy attached). Program H2.2.7: The failure to implement this program by rezoning the Maybell site not only renders the Housing Element out of compliance, but also leaves the City with a deficit of sites on which to accommodate an additional unmet need for 50 extremely-low income units and 10 low income units. The-City's decision not to implement this rezoning program evidently resulted from the rejection of Measure Don November 5, 2013. That referendum, however, did not purport to amend the City's Housing Element, and the City remains obligated to implement this Program. To accommodate fully its housing need for the planning period, the City must either rezone. the Maybell site as this Program requires, or identify and rezone an alternative site to accommodate the extremely-low and low income units that were to have been built on the Maybell site. Gov. Code §§ 65863(a), 65913.l Program 2.1.10: This Program, intended to generate more sites large enough to feasibly accommodate affordable housing development, was also critical to the legal adequacy of the Housing Element. Affordable housing development on sites smaller than one acre is generally infeasible. Challenges of scale, development constraints, and building code requirements make multi-family housing construction on small infill sites very difficult, and generate such high per- unit costs that affordable development is usually impossible. Because of this, state guidelines require that jurisdictions relying on small sites (or affordable housing to affirmatively demonstrate that these sites are reasonably likely to result in affordable development within the planning period. See Gov. Code. 65583.2(c); HCD Requisite Analysis for Realistic Development Capacity of Sites available at http://www.hcd.ca.gov/hpd/housing element2/SIA zoning.p!m. Policies or incentives to facilitate such development, such as lot consolidation, are generally needed. Id. The effectiveness of consolidation is fllustrated by the ad hoc consolidation of sites in two places during this Housing Element period that are expected to result in 8 affordable units and 28 market rate units. Ad hoc consolidation, however, does not meet the requirements of the Housing Element Law or the commitments the City made in this Program in its General Plan. As the planning period comes to an end, the City's failure to implement this Program amounts to a failure of the Housing Element to accommodate in full its lower-income housing need on sites feasible for development within the planning period. Gov. Code §§ 65583, 65913.1. The implementation of Housing Element programs necessary to accommodate the need for affordable housing is a mandatory duty that the courts will enforce. See Urban Habitat v. City of James Keene, City Manager June 23, 2014 Page 3 of3 Pleasanton. Kindly respond no later than July 11, 2014, to inform us of your timetable, including a reasonable deadline for: (1) rezoning the Maybell site, or rezoning an alternative site to accommodate the affordable units attributed to that site in the Housing Element, and (2) taking all actions necessary to incentivize the consolidation of enough small sites to feasibly accommodate the unmet affordable housing need that is not already accommodated on large sites. We will assess the need for further action based on your response. Sincerely yours, Sam Tepperman-Gelfant Senior Staff Attorney, Public Advocates Inc. Cc: Nancy Shepherd, Mayor Members of the City Council Molly S. Stump, City Attorney Michael Rawson Director, Public Interest Law Project Hillary E. Gitelman, Director of Planning and Community Environment Encl.: HCD Letter of March 29, 2013 STATE OF CALIFORNIA -Bl JS!NESS TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 Third Street, Suite 430 P. o. Box 952053 Sacramento, CA 94252-2053 (916) 323-3177 /FAX (916) 327-2643 www.hcd.ca.gov March 29, 2013 Mr. Curtis Williams Director of Planning and Community Development City of Palo Alto 250 Hamilton Ave Palo Alto, CA 94303 Dear Mr. Williams: EDMUND G BROWN .JR Governor RE: City of Palo Alto's 4th Cycle (2009-2014) Draft Housing Element Update Thank you for submitting the City of Palo Alto's revised draft housing element update received for review on February 2, 2013, along with additional revisions received on March 6, 14, 15, and 26, 2013. Pursuant to Government Code Section 65585(b), the Department is reporting the results of its review. Telephone conversations with Mr. Tim Wong, Housing Coordinator, and Ms. Maureen Brooks, the City's Consultant, facilitated the review. In addition, the Department considered comments from Public Advocates pursuant to Government Code Section 65585(c). The revised draft element meets the statutory requirements· described in the Department's October 18, 2012 review. This finding was based on, among other things, successful implementation of Programs H2.1.10, H2.2.2, H2.2.7 and H2.2.9, to encourage mixed use development on sites within the inventory, facilitate lot consolidation, and monitor the development of sites in the inventory. The City must monitor and report on the results of these and other programs through the annual progress report, required pursuant to Government Code Section 65400. The revised element will comply with State housing element law (Article 10.6 of the Government Code) when these revisions are adopted and submitted to the Department, pursuant to Government Code Section 65585(g). The Department appreciates the hard work and dedication of Mr. Wong and Ms. Brooks, in preparation of the housing element and looks forward to receiving Palo Alto's adopted housing element. If you have any questions or need .additional technical assistance, please contact Melinda Coy, of our staff, at (916) 445-5307. Sincerely, /./ ~/tf~ Glen A. Campora Assistant Deputy Director CITY OF PALO ALTO 250 Hamilton Avenue, 7th Floor Palo Alto, CA 94301 650.329.2392 June 30, 2014 Sam Tepperman-Gelfant Public Advocates, Inc. 131 Steuart Street, Suite 300 San Francisco, CA 94105-1241 Michael Rawson Public Interest Law Project 131 Steuart Street, Suite 300 San Francisco, CA 94105-1241 RE: Your Letter Regarding Palo Alto's Housing Element Implementation Dear Mr. Tepperman-Gelfant and Mr. Rawson: Thank you for your correspondence dated June 23, 2014 and your questions regarding implementation of the City's 2007-2014 Housing Element, which was adopted on June 17, 2013 and certified by the Department of Housing and Community Development (HCD) on August 15, 2013. The City has been diligent in implementing its Housing Element programs since it received HCD' s certification and has approved''312 housing units (including 5 affordable units} since that date. Housing element programs that we have implemented include approval of zoning ordinance amendments to: 1. Adopt a density bonus ordinance (Program H3.1.10), 2. Increase the density of ~Commercial Neighborhood (CN) zoned sites identified in. the Housing Element from-15 units per acre to 20 units per acre -(Program H2·.2~sJ~ 3. Amend the · ROLM(E) . zoning district to allow emergency shelters by right (Program H3.5.1), 4. Allow transitional and supportive housing to be treated as multifamily permitted use {Program H3.3.8) and; 5. Establish a City-wide reasonable accommodation procedure (Program H4.l.6). CityOfPa!oABo.org Printed with soy-based inks on 100% recycled paper processed without chlorine. June 30, 2014 Page 2of3 The City Council also approved rezoning of ·the Maybell site for low income senior housing (Program 2.2.7) in June of 2013, but this rezoning was reversed with the defeat of Measure o by City voters in November 2013. Note that the Maybell site is currently zoned for housing and remains on the City's housing inventory, but at a lower density than contemplated by Program 2.2.7. Your letter suggests that the City has failed to implement its Housing Element program to rezone the Maybell site, and that it "leaves the City with a deficit of sites ... ," citing both Government Code Section 65863(a) and 65913.1. You have also cited these sections· with regard to the City's failure thus far to complete the implementation of Program 2.1.10, which will amend the zoning ordinance to create incentives for small lot consolidation. We respectfully disagree and believe that the City's current Housing Element retains an inventory of sites sufficient to accommodate its regional housing needs allocation for the 2007-2014 planning period. Indeed, with the City's recent implementation of Program H-2.2.5, the City has a large surplus of residentially zoned sites on its housing inventory appropriate for lower income housing . . At time of HCD certification, the City had designated sufficient sites with allowable densities of > 20 du/acre to accommodate a total of 1,109 units. After subtracting out approved or built affordable units which included the 60 Maybell units, the City's total remaining need for low and very-low income units was 982 units. Even with including the 60 affordable Maybell units to the remaining need total, the City still has sufficient sites to accommodate its lower income unit requirements. The January 2014 increase in densities for CN zoned sites from 15 units to 20 units per acre means these sites are deemed appropriate to accommodate an additional 532 lower income households per CGC Section 65583.2(c)(3)(B). In its 2013 Housing Element Annual Progress Report to HCD, the City reported about the results of the Maybell referendum. For reference, the HCD report has been attached. As you note, the City has yet to complete the zoning ordinance amendment needed to incentivize lot consolidations. However, we believe the strong real estate market in Palo Alto is already providing the necessary incentives for ·developers to pursue lot consolidation opportunities. In the past 2 years, the City has approved three mixed use project that include lot consolidations, and there is a fourth that was recently recommended for approval by the Planning and Transportation Commission. The projects ranged from consolidation of 2~6 lots involving parcels as small as 3,900 sq. ft., up to parcels as large as 0.77 acres, and will provide a total of 60 net units. Program 2.1.10 remains on the planning department's "to do" list, however there does not appear to be the urgency there was when it was included in the Housing Element, particularly given the staff resources we are currently devoting to updating the Housing Element for the period 2015-2023. ·~ C it y () f P a I o 1J.. i t o . o r g Printed with soy-based inks on 100% recycled paper processed without chlorine. June 30, 2014 Page 3of3 Since early this year, staff has been working with various housing stakeholders, the Planning and Transportation Commission, and the City Council to revise the Housing Element for submittal to HCD in compliance with the statutory deadline. As part of the update process, we are evaluating programs in the current Housing Element to determine if they should be retained, revised, or removed. We welcome any public comments or suggestions regarding this topic. If you have any questions, please contact Tim Wong, Senior Planner. His phone number is 650- 329-2561 or his email address is tim.wong@cityofpaloalto.org. Thank you for your interest in the City of Palo Alto Housing Element. Sincerely, Attachment cc: City Council Hillary Gitelman, Dept. Director, P&CE Cara Silver, S~nior Assistant City Attorney Tim Wong, Senior Planner, P&CE Jurisdiction Reporting Period City of Palo Alto Date: 01/01/13 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202 ) -Date: 12/31113 Table A Annual Building Activity Report Summary -New Construction Very Low-, Low-, and Mixed-Income Multifamily Projects Housing Development Information Housing with Financial Assistance and/or Deed Restricticns 2080 Channing Ave I SF 0 10 10 10 382 Curtner Ave 2-4 0 6 6 6 2650 Birch St 5+ 0 5 5 5 4073 El Camino Real 12-4 0 2 2 2 (9) Total of Moderate and Above Moderate from Table A3 ..,.. ..,.. 5 6 6 (1 O) Total by income Table AfA3 ..,.. ..,.. 5 24 29 29 (11) Total Extremely Low-Income Units* * Note: These fields are voluntary Housing without Financial Assistance or Deed Restrictions Attachment 1 page 1of5 Jurisdiction City of Palo Alto Reporting Period Date: 01/01/13 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title25 §6202) -Date: 12/31/13 TableA2 Annual Building Activity Report Summary -Units Rehabilitated, Preserved and Acquired pursuant to GC Section 65583.1(c)(1) Please note: Units may only be credited to the table below when a jurisdiction ras included a program it its housing elerrent to rehabiltate, preserve or acquire units to accommodate a portion of its RHNA whichmeet the specific criteria as ouUined in GC Section 65583.1 (c)(1) Activity Type (1) Rehabilitation Activity 0 (4) The Description should adequaely document how each unit complies with )(7) of Government Code Section 65583.1 (2) Preservation of Units At-Risk 0 (3) Acquisition of Units (5) Total Units by Income * Note: This field is voluntary No. of Units Permitted for Moderate No. of Units Permitted for Above Moderate Note: This field is voluntary 0 0 0 0 0 TableA3 Annual building Activity Report Summary for Above Moderate-Income Units (not including those units reported on Table A) 1. 2. 3. 4. Second 5. Single Family 2 -4 Units 5+ Units Unit Mobile Homes 0 5 1 (5 -2nd dlls/Cottages, +1 du 2-4 Units (1 duplex replaced 1 sfr 739Cobrado1 du net gain) 6. Total 5 1 subsection ( c 7. Attachment 1 page2 of 5 Number of infill units* Jurisdiction City of Palo Alto Reporting Period Date: 01/01113 Enter Calendar Year starting with the first year of the RHNA allocation p;iriod. See Example. RHNA Income Level Allocation by Income Level Deed Restricted Very Low Non-deed 690 restricted Deed Restricted Low Non-deed 543 restricted Deed Restricted Moderate Non-deed 641 restricted* Above Moderae 986 Total RHNA by COG. Enter albcation number: r 2,860 Total Units ..... ..... ..... Remaining Need for RHNA Period .... ... ... ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202 ) -Date: 12/31/13 Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability 2007 2008 2009 2010 2011 2012 2013 Year Year Year Year Year Year Year 1 2 3 4 5 6 7 1 56 35 64 0 0 0 0 2 7 0 0 0 0 47 34 10 3 0 4 4 6 5 7 5 238 271 131 6 .7 96 24 ~. 292 365 147 46 78 106 29 ... ... Note: units serving extremly low-income households a-e included in the very low-income permitted units totals. •Cottages (2nd dweling units) building permits issued from 2007-2012 Total Units to Date Year Year (all years) 8 9 156 9 94 31 773 1,063 Total Attachment 1 pageJof5 Remaining RHNA by Income Level 534 534 516 213 1,797 Jurisdiction City of Palo Alto Reporting Period Date: 01/01/13 Program Description (By Housing Element Program Names) Name of Program Program H2.2. 7 Maybell Rezone with 60 affordable senior units and 12 SFD's Program H2.2.8 Monitor Capacity ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202 ) -Date: 12/31/13 TableC Program Implementation Status Housing Programs Progress Report -Government Code Section 65583. Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. Objective Timeframe Status of Program Implementation inH.E. Rezone property 1 year w/in of Rezone approved June 17, 2013. Overturned by voter referendum on adoption November 4, 2013. With the voter rejection of the Maybell rezone, the City needed to identify a Monitor residential capacity Ongoing 38 units (Approved project of 72 units minus base allowable zoning of 34 units= 38 units). However, the City has approved 41 units on sites not in the Housing Inventory. Attached is a summary of those project sites. Attachment 1 page4 of 5 Jurisdiction Reporting Period General Comments: City of Palo Alto Date: 01/01/13 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202 ) -Date: 12/31/13 All programs reported in Table C refer to the City's 2007-2014 Housing Element, certified August 15, 2013. Attachment 1 page5 of 5 Wong. Tim From: Paul Campos <pcampos@biabayarea.org> Friday, August 01, 2014 4:04 PM Sent: To: Johnson, James@HCD Cc: Subject: Paul McDougall; Patricia Sausedo; Wong, Tim Palo Alto Housing Element Comments Housing Element Letter ANAL.pdf Attachments: Dear Mr. Johnson, The Building Industry Association of the Bay Area respectfully submits these comments on the Housing Element submitted for HCD review by the City of Palo Alto. BIA is a non-profit trade association that represents hundreds of companies and thousands of employees in the building, development, and construction industries throughout the Bay Area. Initially, BIA notes that in November 2013, the Bay Area Business Coalition--of which BIA is a member-- worked with HCD to develop a letter containing a number of key issues and questions geared toward Bay Area housing element updates for the current cycle. The letter was sent to all Bay Area cities and counties, including Palo Alto. I have attached a copy of the letter that was sent to all jurisdictions, and here is the link to the letter on HCD's web site: http://www. hcd. ca. gov/hpd/housing element2/documents/bayarea heupdate 112613; pdf. We have not received a response from Palo Alto and while the housing element does address a couple of the issues raised, BIA would like to see the housing element respond completely and directly to each issue before it is certified. In addition, BIA has the following specific comments that we feel are not adequately addressed in the submitted housing element. • Building Height Limitations: The element specially acknowledges that height limitations are a governmental constraint, but does not identify an adequate program committing to mitigate or eliminate this important constraint. The element speaks at length to the scarcity of available land for new residential development in Palo Alto, and the massive job growth the city continues to experience, resulting in the current astronomical housing prices and rents. In this context it is imperative to remove the constraint of height limitations on the land that is devoted to new housing to the maximum possible extent. While the element references a preexisting program (adopted in 2009) that allows for building height exceptions for projects in the PTOD zoning area, there is no analysis of how many projects or units have been able to utilize this exception; nor is there discussion of the criteria the City uses to determine whether to grant an exception. BIA believes that a better and more effective approach is to modify the existing height limitations in all of the areas identifed as RHNA sites. This will provide certainty to the city, the community, and the development community. Considering both construction cost and building code issues, BIA recommends the following height limitation categories: o 35'-40' for 3 stories o 65' for 5 over I story podium o 85' for 5 over 2 story podium 0 120' o Above 120' 1 o For every 1' of retail clear height above 12/, the building height should increase a commensurate 1' (e.g., if a developer proposes a 15' clear, then the building height can increase by 3 ') • Parking Requirements: Again, the housing element forthrightly acknowledges that parking requirements are a governmental constraint. BIA believes that the certified housing element should include an implementation measure that commits to reducing parking ratios wherever a TDM plan is required and for transit corridors and where care sharing programs exist. • Planned Zoning Moratorium: The City recently adopted a moratorium on new approvals using the Planned Zoning process. The City's Planned Zoning process is akin to Planned Development/PUD zoning processes in other cities. Here is a link to the staff report on the City's action:[ http://cityofpaloalto.org/civicax/filebank/documents/3880]. The housing element should identify this moratorium as a potential constraint and a thorough discussion is needed to determine whether this will be a significant constraint on new housing development. For example, the draft element provides information on the overall number of housing units developed in prior planning periods. But it does not address how many of these projects and how many units were developed in projects using the Planned Zoning process vs. the "base" zoning designations. If the .numbers are significant, the "time out" on future PZ projects would represent a severe constraint. Relatedly, the staff report for the PZ moratorium suggests that one of the issues to be modified in the revised PZ process is the level of "community benefits" that a project must provide in order to be approved as a PZ project. The housing element should be clear that the City will not attempt to extract "community benefits" or other exactions based on a City calculation of developer profitability/feasibility, or that otherwise would seek to evade the letter and spirit of the Mitigation Fee Act. Fees and exactions should only be considered and assessed in order to mitigate the the need for public facilities specifically caused by the new development. • Industrial Land Conversion Restrictions: The draft indicates that the City intends to limit conversion of certain industrial land yet the housing element describes a city that is thriving with commercial activity and jobs and has a massive housing shortage. BIA has found that limitations on industrial land conversion in other cities have been significant constraints to housing development. The element should provide more detail about the locations of areas that are to be restricted, and the nature of the restrictions and what a project would have to show to be converted. Also, the certified element should contain a provision that if the RHNA sites identified in the element are not developed in a timely manner within the planning period, the industrial land conversion policy should be modified if the market find that land more suitable for housing than the sites the City has identified. • Housing Inventory Sites: For its housing site inventory, the draft element relies heavily on a number of sites that are zoned for multifamily site capacity but have existing operating commercial uses on the site. The element relies on these sites for 386 (364 affordable) units. More historical and current development information should be provided on the existing commercial uses and analysis such that a determination can be made that it is likely that these uses will be terminated and these sites will be converted to housing within the next 8 year. • BMR Reguirement: There is an inadequate discussion of the City's inclusionary zoning requirement in the constraints section. The element should identify the actual cost per market rate unit that compliance with the ordinance entails. Palo Alto's BMR ordinauce is one of the most burdensome and costly in the Bay Area and the compliance costs should be identified clearly in the housing element. This cost should be expressed both in terms of what the City demands as an in lieu fee for in kind units not built; and what the cost of providing the in kind units is when spread over the r~maining market rate units using a standard development pro forma. The housing element should also contain a program committing to revise the BMR requirement so that it does not penalize larger and denser projects. Currently, larger (and likely higher density) projects are subject to a very high 20% BMR requirement. The element should commit to reducing the BMR requirement for projects that meet certain density thresholds and ·that are located in areas that the City (and region and state) are trying to incentivize such as the PTOD zoning area. The BMR ordinance should also allow payment of an in lieu fee "by right" at the developer's discretion rather than having to seek city approval. 2 • Park Fees: The City's park fee ordinance does not provide for credit for private park facilities provided as part of a project. The Quimby Act specifically contemplates such credits and Palo Alto is one of the few jurisdictions in the area that does not have a private park fee credit provision. The certified element should commit the City to adopt a credit provision. • Affordable Housing Impact Fees: The element indicates that the City will be preparing a nexus study and considering adopting a new affordable housing impact fee on new market rate housing. The element should commit to ensuring that if any new fee is adopted, that a cumulative fee and exaction burden analysis be prepared ~d that if a fee is adopted it should replace the existing BMR program and result in an overall lessening of the regulatory burden.imposed on new housing in Palo Alto. Thank you for the opportunity to comment, Paul Campos Sr. Vice President, Governmental Affairs General Counsel Building Industry Association of the Bay Area pcampos@biabayarea.org 925.951.6840 (Main Office) 925.951.6844 (Office Direct) 415.223.3775 (Mobile) Contra Costa Centre Transit Village 1350 Treat Blvd., Suite 140 Walnut Creek, CA 94597 555 California Street, 10th Floor San Francisco, CA 94014 ******** 3 (I Bay Planning Coalition BAY AREA __ ..) ~""-;"$ ;~~-.. Jobs and Housing Coalition NORTH SAV DERSHIP OUNC~L November 26, 2013 Housing/Planning Director Jurisdiction Via email Re: Housing Element Update The undersigned members of the Bay Area Business Coalition advocate for a vibrant regional economy and outstanding quality of life for existing and future residents of the San Francisco Bay Area. A necessary-though by no means sufficient-condition to achieve these goals is for the region to provide an adequate supply of housing within the region. State housing element law generally-and the governmental constraints 'component in particular-can be important tools to advance these goals. With Bay Area cities and counties currently updating their housing elements, our organizations respectfully request that your jurisdiction consider and address the following comments as part of the public review process. We recognize that the housing element process can be resource intensive and sometimes difficult. We hope that by identifying certain priority issues and questions, this letter will assist in focusing resources on policies and practices that are of significant and recurring interest to the regulated community. We also would support incorporating these standardized issues into the framework for local jurisdictions to be able to take advantage of the housing element certification streamlining developed by the California Department of Housing and Community Development (HCD). I. OveNiew of the statutory provisions. The California Department of Housing and Community Development (HCD) has prepared formal guidance interpreting the constraints analysis portion of housing element law (http://www. hcd .ca.gov /h p;d/housi ng element2/CON home. ph p. HCD' s overview of the requirements and their purpose provides: The element must identify and analyze potential and actual governmental constraints to the maintenance, improvement, or development of housing for all income levels, including housing for persons with disabilities. The analysis should identify the specific standards and processes and evaluate their impact, including cumulatively, on the supply and affordability of housing. The analysis should determine whether local regulatory standards pose an actual constraint and must also demonstrate local efforts to remove constraints that hinder a jurisdiction from meeting its housing needs .... The analysis of potential governmental constraints should describe past or current efforts to remove governmental constraints. Where the analyses identifies that constraints exist, the element should include program responses to mitigate the effects of the constraint. Each analysis should use specific objective data, quantified where possible. A determination should be made for each potential constraint as to whether it poses as an actual constraint. The analysis should identifY the specific standards and processes and evaluate their impact, including cumulatively, on the supply and affordability of housing. · II. Requested specific areas of focus We have identified certain policies that generally represent significant potential constraints in the Bay Area and we request that as you conduct the constraints portion of your housing element review, these issues in particular be addressed: • Did your jurisdiction commit to addressing specific constraints as a condition of HCD certification of the existing housing element? If so, what was the constraint and what has been done to address it? • Does your jurisdiction have a mandatory inclusionarv zonine: oolicy? If so, has an analysis been done that measures the economic impact? Does it contain meaningful and regularly available incentives, and is its implementation flexible so that there are alternatives to a "like for like must build requirement" such as payment of reasonable in lieu fees, land dedication, or acquisition and reha~ilitation of existing units with provision affordability covenants? Are such alternatives available at the developer's option or with staff approval- but without need for Council or Board approval on a project-by-project basis? • Has your jurisdiction adopted a density bonus ordinance consistent with governilJI state law (Gov't Code Section 65915)? Does the density bonus ordinance count mandatory inclusionary zoning units toward the density bonus threshold as required by the recent court of appeal decision in iatinos Unidos de/ Valle de Napa y Solano v. County of Napa, 217 Cal. App. 4th 1160 (2013)? • ~hat is the cumulative fee and exaction burden on new housing in your jurisdiction? This analysis should include not only development fees that are "formally" reflected in published fee schedules, but also include exactions imposed via housing allocation program/ "beauty contests," community benefits/amenities agreements, CFO annexation requirements, and the like. The analysis should also include fees imposed by other agencies, for example school fees, sewer and water fees, and fees imposed pursuant to an applicable regional Habitat Conservation Plan. The analysis should determine the% of the sales of price of new housing in the jurisdiction is represented by the cumulative fee/exaction burden, as well as the% of costs for rental housing units represented by the cumulative fee/exaction bur~en. • Does your jurisdiction have any recently adopted. proposed. or under consideration new or increased fee or exaction, such as an affordable housing impact fee? • Has your jurisdiction required new housing projects. including multifamily/attached projects. to pay a fee or special tax for ongoing general governmental services? • Does your jurisdiction have a designated Priority Development Area (PDA)? Is it a "planned" or."potential" PDA? Have the number of residential units and densities shown in the PDA application been incorporated into the General Plan? Has the CEQA process been completed for the PDA so that no additional CEQA review is necessary for a proposed project consistent with the PDA? Have development restrictions and processes been streamlined in the area covered ,by the PD.A? • What were the sites relied on for the adequate sites compliance of the existing housing element? What has been the entitlement/development activity for these sites during the prior planning period? Were any of the sites subject to "by right" development procedures? · • Does your jurisdiction have any type of cap or limitation on the number or type of housing units that may be permitted or constructed jurisdiction wide or in specific areas of the jurisdiction-including a cap or limitation tied to a specified level of new job creation in the jurisdiction? • Has your jurisdiction provided for "by right" housing development in any areas? • Are there zoning or other development restrictions (such as voter approval requirements, density limits or building height restrictions) that have impeded infill and/or transit oriented development? • Has your jurisdiction consistently demonstrated compliance with both the letter and spirit of the Permit Streamlining Act? • What are your jurisdiction's historic preservation policies and review procedures and have they had a significant impact on the permit and entitlement processes for new development projects? • Has your jurisdiction adopted an ordinance pursuant to the Quimby Act that gives developers credit for private open space? • In implementing the Quimby Act. does your jurisdiction provide for consistency between the calculation of the existing neighborhood and community park inventory. and the criteria and procedures for determining whether to accept land offered for parkland dedication or to give credit for private open space?· For example, has your jurisdiction refused to accept an area in whole or in partial satisfaction of the parkland dedication ordinance on the basis that it is unsuitable for park and recreational uses even though the area is substantially similar to areas included in the overall parkland inventory used to calculate the parkland dedication requirement and fee? • In the project review process. has your jurisdiction required developers to use the Bay Area Air quality Management District's CEQA Thresholds of Significance for Toxic Air Contaminants (TAC Receptor Thresholds)? Has your jurisdiction explored alternative procedures for addressing project siting and air quality concerns, such as in the general plan or zoning code? • Has your jurisdiction adopted a Climate Adaptation Plan that is more stringent with respect to the per capita GHG reductions for the land use sector/transportation sector than the equivalent per capita targets established for the region by CARB pursuant to SB 375? Our organizations intend to monitor housing element updates throughout the region, and we respectfully request that your jurisdiction formally respond to these questions early in the update process. We also ask that you send a paper or electronic copy of the responses to: BIA of the Bay Area Attn: Paul Campos 101 Ygnacio Valley Road, Suite 210 Walnut Creek, CA 94596 pcampos@biabayarea.org 415-223-3775 Yours very truly, John Coleman Bay Planning Coalition Council Gregory Mc'Co.nnell Jobs & Housing Coalition 0~~~ v Jim Wunderman Bay Area Councll Paul Campos BIA Bay.Area Cynthia Murray North Bay Leadership Council Joshua Howard California Apartment Association Torn Terrill East Bay Leadership /} (' l',,/t·.·. ? ' ~;;-~/! 11_" + ·i.. . 1": · .. 'J,,.A Ros.a.h ne Foust SAMCEDA Wong, Tim From: Sent: To: Cc: Subject: Attachments: Dear Mr. Johnson, Wong, Tim Tuesday, August 26, 2014 12:09 PM Johnson, James@HCD Paul McDougall; Patricia Sausedo; 'Paul Campos' RE: Palo Alto Housing Element Comments Response to BIA 08 26 14.pdf Thank you for the opportunity to respond to the electronic correspondence received by Mr. Campos of the Building Industry Association of the Bay Area, received August 1, 2014. Please find attached the City's responses. Please note that the attachment is a complete text copy of the email submitted by Mr. Campos with the City response to each item are in red. If you have any questions, please feel free to contact me. Sincerely, Tim Tim Wong Housing Coordinator City of Palo Alto From: Paul Campos [mailto:pcampos@biabayarea.org] Sent: Friday, August 01, 2014 4:04 PM To: Johnson, James@HCD Cc: Paul McDougall; Patricia Sausedo; Wong, Tim Subject: Palo Alto Housing Element Comments Dear Mr. Johnson, The Building Industry Association of the Bay Area respectfully submits these comments on the Housing Element submitted for HCD review by the City of Palo Alto. BIA is a non-profit trade association that represents htindreds of companies and thousands of employees in the building, development, and construction industries throughout the Bay A/ea. Initially, BIA notes that in November 2013, the Bay Area Business Coalition--of which BIA is a member-- worked with HCD to develop a letter containing a number of key issues and questions geared toward Bay Area housing element updates for the current cycle. The letter was sent to all Bay Area cities and counties, including Palo Alto. I have attached a copy of the letter that was sent to all jurisdictions, and here is the link to the letter on HCD's web site: http://www.hcd.ca.gov/hpd/housing element2/documents/bayarea heupdate 112613. pdf. We have not received a response from Palo Alto and while the housing element does address a couple of the issues raised, BIA would like to see the housing element respond completely and directly to each issue before it is certified. 1. Dear Mr. Johnson, The Building Industry Association of the Bay Area respectfully submits these comments on the Housing Element submitted for HCD review by the City of Palo Alto. BIA is a non-profit trade association that represents hundreds of companies and thousands of employees in the building, development, and construction industries throughout the Bay Area. -Initially, BIA notes that in November 2013, the Bay Area Business Coalition--of which BIA is a member--worked with HCD to develop a letter containing a number of key issues and questions geared toward Bay Area housing element upda~es for the current cycle. The letter was sent to all Bay Area cities and counties, including Palo Alto. I have attached a copy of the letter that was sent to all jurisdictions, and here is the link to the letter on HCD's web site: http:Uwww.hcd.ca.gov/hpd/housing element2/documents/bayarea heupdate112613 .pdf. We have not received a response from Palo Alto and while the housing element does address a couple of the issues raised, BIA would like to see the housing element respond completely and directly to each issue before it is certified. In addition, BIA has the following specific comments that we feel are not adequately addressed in the submitted housing element. • Building Height Limitations: The element specially acknowledges that height limitations are a governmental constraint, but does not identify an adequate program committing to mitigate or eliminate this important constraint. The element speaks at length to the scarcity of available land for new residential development in Palo Alto, and the massive job growth the city continues to experience, resulting in the current astronomical housing prices and rents. In this context it is imperative to remove the constraint of height limitations on the land that is devoted to new housing to the maximum possible extent. While the element references a preexisting program (adopted in 2009) that allows for building height exceptions for projects in the PTOD zoning area, there is no analysis of how many projects or units have been able to utilize this exception; ndr is there discussion of the criteria the City uses to determine whether to grant an exception. BIA believes that a better and more effective approach is to modify the existing height limitations in all of the areas identified as RHNA sites. This will provide certainty to the city, the community, and the development community. Considering both construction cost and building code issues, BIA recommends the following height limitation categories: ) o 35'-40' for 3 stories 0 65' for 5 over 1 story podium o 85' for 5 over 2 story podium 0 120' o Above 120' o For every 1' of retail clear height above 12/, the building height should increase a commensurate 1' (e.g., if a developer proposes a 15' clear, then the building height can increase by 3') 895\U4\1559Ni4. l Hi2.0i)1) !:.! Thank you for the suggestions. However, the City has been able to identify sufficient housing ._, sites with current zoning and exlstlng height limits to meet lts RHNA requirement. And there have been large developments of 40+ units with achieved densities between 30-85 units per acre using the existing height limit Therefore it is possible to m.eet housing requirements and to meet maximum densities without increasing height limits. Because affordable housing development generally requires higher densities because of tax credit financing, the City does have proposed programs to help encourage affordable housing developments. A proposed program1 Program 2.1.6, considers allowing greater concessions for :100% affordable housing projects, which may lndude allowances in height • Parking Requirements: Again, the housing element forthrightly acknowledges that parking requirements are a governmental constraint. BIA believes that the certified housing element should include an implementation measure that commits to reducing parking ratios wherever a TOM plan is required and for transit corridors and where care sharing programs exist. Munidpai Code Section 18.52.050 already a!lovvs the Director of Planning and Community Environment the flexibility to reduce parking requirements for certain uses such as senior housing, affordable housing, housing near transit or transportation and parking altematives < !f there is TDM plan or parking aitematlves proposed, the Director rnay reduce the parking by up to 20% the spaces required on the site. !hhere is a rnrnblnation o°f some of these uses; Director mav further reduce parking requirements. • Planned Zoning Moratorium: The City recently adopted a moratorium on new approvals using the Planned Zoning process. The City's Planned Zoning process is akin to Planned Development/PUD zoning processes in other cities. Here is a link to the staff report on the City's act.ion:[ http:/Jcityofpaloalto.org/civicax/filebank/documents/3880]. The housing element should identify this moratorium as a potential constraint and a thorough discussion is needed to determine whether this will be a significant constraint on new housing development. For example~ the draft element provides information on the overall number of " housing units developed in prior planning periods. But it does not address how many of these projects and how many units were developed in projects using the Pl.anned Zoning process vs. the "basetl zoning designations. If the numbers are significant, the "time out" on future PZ projects would represent a severe constraint. Relatedly, the staff report for the PZ moratorium suggests that one of the issueJ; to be modified in the revised PZ process is the level of :'community benefits" that a project must provide in order to be approved as a PZ project. The housing element should be clearthatthe City will not attempt to extract "community benefits" or other exactions based on a City calculation of developer profitability/feasibility, or that otherwise would seek to evade the letter and spirit of the Mitigation Fee Act. Fees and exactions should only be considered and assessed in order to mitigate the need for public facilities specifically caused by the new development. The PC Zone is an overlay zone which aliows applicants to request variances from the base zone in exchange for commurdty benefits, The City's analysis in !ts Housing Element is not based on densities allowed under the zone, but instead ls based on the underlying base zoning. Under base zoning the City has identified adequate housing sites, Therefore any changes in the PC Zone do not represent a const~«:dnt Additionally, the PC zoning 0time out" ls ternporary vvhHe revisions to the PC zoning requirements are being developed, Staff has done extensive research and presented their findings to the Planning and Transportation Commission {PTC} in a Study Session on Wednesday, August l2. Another PTC study .session will be held August 26. Council action regarding the PC zone Is expected this fa!L • Industrial Land Conversion Restrictions: The draft indicates that the City intends to limit conversion of certain industrial land yet the housing element describes a city that is thriving with commercial activity and jobs and has a massive housing shortage. BIA has found that limitations on industrial land conversion in other cities have been significant constraints to housing development. The element should provide more detail about the locations of areas that are to be restricted, and the nature of the restrictions and what a project would have to show to be converted. Also, the certified element should contain a provision that if the RHNA sites identified in the element are not developed in a timely manner within the planning period, the industrial land conversion policy should be modified if the market find that land more suitable for housing than the sites the City has identified. Prior to 2006, in an effort to encourage h0Ljsing1 exclusive residential uses were atiowed as Genera! Researdi; Office and Ught area is in to meet arnenities or public transit industrially zoned not have residential • Housing lnventory 11Sites: For its housing site inven,~ory, the draft element relies heavily on a number of sites that are zoned for multifamily site capacity but have existing operating commercial uses on the site. The element relies on these sites for 386 (364 affordable) units. More historical and current development information should be provided on the existing commercial uses and analysis such that a determination can be made that it is likely that these .J uses will be terminated and these sites will be converted to housing within the next 8 year. When staff was· preparing its housing sites list, as one of the evaluation criteria1 staff did a windshield survey of underdeveloped 1or2. story residential or commerda! buildings that had not been substantially improved ln the last 20 years. !t also did an analysts of the assessed value of the improvements in reiatlon to the assessed value ofthe land for these parcels. If the ratio of the improvements to land value was less than 1.5, we considered the parcel a good candidate for redevelopment. Using this process, staff identlfled good candidates for redevelopment to housing ln the near term. Because of the City's heated real estate market, this is already occurring as envisioned by projects such as 3159 E! Camino ReaL This project 89S\U4\1559664. ~ rnerged four underdeveloped retail-zoned parcels (a 900 sq, fL n:,tai! use and surtace parking)· and redeveloped the site into 31,000+ sq. ft. of commercial uses and 48 residential units y including 5 affordable units, • BMR Requirement: There is an inadequate discussion of the City's inclusionary zoning requirement in the constraints section. The element should identify the actual cost per market rate unit that compliance with the ordinance entails. Palo Alto's BMR ordinance is one of the most burdensome and costly in the Bay Area and the compliance costs should be identified clearly in the housing element. This cost should be expressed both in terms of what the City demands as an in lieu fee for in kind units not built; and what the cost of providing the in kind units is when spread over the remaining market rate units using a standard development pro forma. The housing element should also contain a program committing to revise the BMR requirement so that it does not penalize larger and denser projects. Currently, larger (and likely higher density) projects are subject to a very high 20% BMR requirement. The element should commit to reducing the BMR requirement for projects that meet certain density thresholds and that are located in areas that the City (and region and state) are trying to incentivize such as the PTOD zoning area. The BMR ordinance should also allow payment of an in lieu fee "by right" at the developer's discretion rather than having to seek city approval. The City's 15% BMR requiren1ent has been in effect for decades, Through the program/ the City has produced over 200 BMR ownership units and almost 200 BMR rental units. This demonstrates that even with the requirement,. developers are continuing to develop housing in the City, The ernphasis Is to integrate the BMR units into the developff1ent to create mir:ed income communities, Therefore .. the abl!ity to !(fee out}! is still atthe Clty' s discretion. The 207fi B!\!m requirement applies to developments on sltes of five acres or larger. Only a few residential developments have been on parcels larger than five acr:es and a!! were able to fulfill their BMR requirements, A comrn<::rcia! and residential nexus study is currer1tiy being prepared. The findings of the study 'Nill be used by staff to help r~view and update1 if necessary, any aspects of the. BMR program. .. Park Fees: The City's park fee ordinance does not provide for credit for private park facilities provided as part of a project. The Quimby Act specifically contemplates such credits and Palo Alto is one of the few jurisdictions in the area that does not have a private park fee credit provision. The certified el,ement should commit the City to adopt a credit provision. The Quimby Act permits cltles to adopt ordinances permitting a credit for private parks, but does not require that any particular credit be granted, A program to establish a private park fee credit provision may be more appropriate for the City's Land Use or Open Space Element A credit would increase developer profits but would not create any additional housing and would likely have no effect on housing prices, • Affordable Housing Impact Fees: The element indicates that the City will be preparing a nexus study and considering adopting a new affordable housing impact fee on new market rate 895\U4\1559664. l housing. The element should commit to ensuring that if any new fee is adopted, that a cumulative fee and exaction burden analysis be prepared and that if a fee is adopted it should replace the existing BMR program and result in an overall lessening of the regulatory burden imposed on new housing in Palo Alto. There is no evidence that Palo Alto's housing foe or other fees serve as a housing constraint at this time, The City is in thE! process of conducting a nexus study and will detennine appropriate next steps after that study ls completed. Currently/ the City is not applying affordable housing requirements to rental projects, Thank you for the opportunity to comment, Paul Campos Sr. Vice President, Go\ernmental Affairs General Counsel Building Industry Association of the Bay Area pcampos@biabayarea.org 925.951.6840 {Main Office) 925.951.6844 {Office Direct) 415.223.3775 {Mobile) Contra Costa Centre Transit Village 1350 Treat Blvd., Suite 140 Walnut Creek, CA 94597 555 California Street, 10th Floor San Francisco, CA 94014 August 6, 2014 PUBLIC.INTEREST LAW FIRM Oficina Legal de Interes Publico Law Foundation of Silicon Valley 152 North Third Street, 3rd Floor San Jose, California 95112 Telephone (408) 293-4790 • Fax (408) 293-0106 www.lawfoundation.org SENT VIA E-MAIL: mcoy@hcd.ca.gov, james.johnson@hcd.ca.gov Melinda Coy James Johnson .Department of Housing and Community Development 2020 W. El Camino,·Suhe 500 Sacramento, CA 95833 Re: City of Palo Alto's Housing Element, Buena Vista Mobile Home Park Dear Ms. Coy and Mr. Johnson: We write on behalf of the Buena Vista Mobile Home Park Residents' Association to comment on the City of Palo Alto's draft 2015-2023 Housing Element as it pertains to Buena Vista Mobile Home Park. Specifically, the Housing Element program to combat the threatened closure of Buena Vista Mobile Home Park should be more robust; the Housing Element should report more fully on the City's implementation of the 2007- 2014 program for the preservation of Buena Vista; and the Housing Element should discuss options for the re.placement of the affordable homes that will be lost if Buena Vista closes. Palo Alto's Stated Commitment to the Preservation of Buena Vista Mobile Home Park Since at least 1999, Palo Alto has consistently recognized Buena Vista Mobile Home Park as an important source of affordable housing and has stated a policy of maintaining Buena Vista as an affordable housing resource. Both the 2007-2014 Housing Element and the draft Housing Element for the upcoming planning period set forth five-year objectives of preserving "the 120 mobile home units in the Buena Vista Mobile Home Park as a low and moderate income housing resource." 1 The Housing Elements for the third and fourth revisions, as well as the draft 2015-2023 Housing Element, contain the following program: Any redevelopment of the site must be consistent with the City's Mobile Home Park Conversion Ordinance adopted to preserve the existing units. To the extent 1 2007-2014 Housing Element <http://www.cityofpaloalto.org/civicax/filebank/documents/35588> p. 176; Draft 2015-2023 Housing Element <http://www.dtyofpaloalto.org/civicax/filebank/documents/42391> p. 135. /t "\ feasible, the City will seek appropriate local, state and federal funding to assist in · "'.,,_ the preservation and maintenance of the existing units in the Buena Vista Mobile .Home Park. 2 Insufficiency of Program Activities to Preserve Buena Vista Mobile Home Park The City's stated commitment to preserving Buena Vista is admirable, appreciated, and necessary, but the actions it proposes to carry out this commitment are lacking. The Draft 2015-2023 Housing Element's program (Program H3. l .8), which recognizes that Buena Vista is a key source of affordable housing in Palo Alto, is insufficient to achieve its stated objective of preserving the homes in the park as a low-and moderate-income housing resource. The program includes ensuring that any park closure is consistent with the Mobile Home Park Conversion Ordinance; the Ordinance mandates robust mitigation assistance for residents displaced by the park's closure, but it allows that closure so long as mitigation measures are sufficient. Given the current economic climate, mitigation requirements alone are insufficient to prevent the closure of the park, as evidenced by the Park Owner's ongoing attempts to close ·the Park under the procedures set forth in the Ordinance. The program goes on to commit that, "[t]o the extent feasible, the City will seek appropriate local, state and federal funding to assist in the preservation and maintenance of the existing units in the Buena Vista Mobile Home Park."3 As we noted in our correspondence regarding the 2007-2014 Housing Element,· this program activity lacks specificity or timelines. ·In order to achieve its goal of preserving Buena Vista and to meet its legal obligation to "conserve and improve the existing affordable housing stock,"4 Pajo Alto should amend the program to include additional affirmative steps that the City will take to prevent the Park's closure. Such steps could include engagement with the Residents' Association and local non-profit housing developers interested in preserving the park, setting aside City funds for the Park's preservation, and/or negotiation with the.Park's current owners for a long-term preservation strategy. Failure to Report Fully on Past Performance Regarding Buena Vista Mobile Home Park Palo Alto's 2015-2023 Housing Element must accuratelyreport on its progress in implementing the policies and programs set forth in the 2007-2015 Housing Element. 5 However, the current draft does not acknowledge the City's lack of progr~ss toward its goal of preserving Buena Vista or its failure to implement fully Program H3 .1.11. 2 City of Palo Alto Housing Element 2007-2014 at pp. 138, 156, 207 (Program H-3.1.11); Draft City of Palo Alto Housing Element 2015-2023 at p. 135 (Program H3. l .8). 3 Draft City of Palo Alto Housing Element at p. 135. 4 Gov. Code,§ 65583, subd. (c)(4). 5 Gov. Code, § 65588. 2 As noted in the City's draft 2015-2023 Housing Element, "[o]n November 9, 2012, the owner of the Buena Vista Mobile Home Park, located at 3980 El Camino Real, submitted an appli:cation to close the park. "6 A three-day hearing was held on the proposed· park closure on May 12-14, 2014, and a decision by the City-appointed hearing officer is pending. Program H3.l.11 created relatively modest obligations for the City, but even these have not been met. While the City has taken steps to enforce the terms of the Conversion Ordinance, it has not taken affirmative steps to preserve the park. To our knowledge, the City has not made any concrete effort to "seek appropriate local, state and federal funding to assist in the preservation and maintenance of the existing units in the Buena Vista Mobile Home Park," as promised in Program H3.1.11. 7 Indeed, the City Attorney has prohibited City Councilmembers from discussing preservation strategies-including the possibility of local funding being dedicated to preserving the Park-with the Residents Association, their counsel, or members of the public while the closure proc~ss is ongoing. These failures are not acknowledged in Appendix A of the draft 2015-2023 Housing Element.8 · . Further, and as noted above, the 2007-2014 Housing Element's objective for the Buena Vista was actually much broader than the actions laid out in its corresponding program: the City's goal was to preserve all of the 120 homes in Buena Vista, not ·to allow the Park to close with proper mitigation assistance. Palo Alto's failure to take significant actions to preserve the Park constitutes a failure to implement Palo Alto's Housing Element. 9 The City could have taken several actions during the 2007-2014 planning period to preserve the Park, even before the closure process began. For example: • The City could have entered into a long-term preservation agreement with the Park Owners. Such a strategy was discussed in 2000 and 2001 but apparently never came to fruition. In December 2000, the City Council enacted an ·Emergency Ordinance to restrict rent increases at the Park and ordered the City Attorney to negotiate a long-term preservation strategy with the Park owners. 10 Although the City Attorney had some negotiations ~ith the Park owner in 2001, this long-term·preservation strategy was never implemented, either in a development agreement or in an ordinance. Based on our review of the public records, the City simply failed to follow through with the long-term preservation strategy. The City could have renewed these efforts at any time but did not. • The City could have changed or restricted zoning of the site in order to preserve the Park. For example, the City of Mountain View has rezoned all of 6 City of Palo Alto, Draft 2015-2023 Housing Element, p. 2 n. 1 < http://www.cityofpaloalto.org/civicax/filebank/documents/42391 >. 7 See 2007-2014 Housing Element, p. 176. 8 See draft 2015-2023 Housing Element, p. A-19. 9 Gov't Code§§ 65754; 65754.5; 65755. 10 City of Palo Alto Ordinance4672 §l(c), (December 19, 2000). 3 its mobile home park lands to only allow mobile home park uses by right, and it changed its General Plan to designate those sites as mobile home park- only. 11 The City could have taken similar actions to better prioritize the preservation of mobile home park lands in its overall land use strategy or to zone the parcel exclusively for mobile home park use, but it did not. • The City could have committed its own affordable housing funds or sought out external funds.for the preservation of the Park. To our knowledge, it has not done so. •. The City could have engaged in a continued dialogue with Park residents, the Park owners, community groups, and nonprofit developers about the preservation of the Park, but it has not. By failing to take meaningful action to preserve Buena Vista Mobile Home Park, the City has neither performed the programs nor achieved the goals set out in its 2007-2014 Housing Element, and the draft Housing Element for the upcoming planning period must acknowledge that failure. Replacement of Affordable Housing Stock Further, neither the current Housing Element nor the draft Housing Element have any analysis as to the impact of the Park closure on the number of affordable housing units in Palo Alto; nor is there any analysis on how the City will mitigate the loss of those units. 12 Does Palo Alto have sufficient developable land to replace the 100+ units of unsubsidized affordable housing that will be lost if Buena Vista closes? If so, how will Palo Alto ensure that these replacement homes are affordable to lower-income households in light of the current housing market? These questions are not even raised, still less satisfactorily answered, in the draft Housing Element. We m:ge HCD to reject Palo Alto's draft 2015-2013 Housing Element on the above grounds, and to direct the City to provide a more robust discussion regarding Buena Vista Mobile Home Park. We would be happy to discuss these comments with you, as.well as 11 City of Mountain View 2015-2023 Draft Housing Element <http://beta.mountainview.gov/civicax/filebank/blobdload.a')px ?BloblD=l 3147> p. 30. 12 See Gov. Code,§ 65583. · 4 with the City. Should you wish to discuss these comments further, please contact Nadia . Aziz at (408) 280~2453 or nadia.aziz@lawfoundation.org. Sincerely, Isl Nadia Aziz Law Foundation of Silicon Valley Isl Navneet Grewal Western Center on Law and Poverty Isl Matthew Dolan .. Sidley Austin, LLP cc: James Keene, City Manager Nancy Shepard, Mayor, and City Council Molly Stump, Grant Kolling, and Cara Silver, Office of the City Attorney Hilary Gitelman and Tim Wong, Department of Planning and Community Environment 5 ./ .: CITY OF PALO ALTO PL4NNING & COMMUNITY ENVIRONMENT 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 650.329.2441 ·August 19, 2014 Ms. Melinda Coy Mr. James Johnson Department of Housing and Community Development 2020 W. El Camino, Suite 500 Sacramento, CA 95833 RE: Ci~y of Palo Alto 2015-2023 Housing Element, Buena Vista Mobilehome Park; August 6. 2014 comment letter from Public Interest Law Firm to HCD Dear Ms. Coy and Mr. Johnson: The City of Palo Alto received a copy of the letter sent to you by the Public Interest Law Firm (''PILF") on August 6, 2014, regarding the Buena Vista Mobile Home Park and the City's draft Housing Element for the period 2015-2023. We know your review of our draft Hou.sing Element Is currently underway, and we are writing to respond to the issues raised In PILF's letter in the hopes that our response will be useful to you. City's Goal of Preserving Buena Vista PILF notes, at Page 1, that the City's 2007-2014 Housing Element and the draft 2015-2023 Housing Element set fiye-year goals of preserving the 12E> mobilehome units in the Buena. Vista Mobile Home Park as a low-and moderate-inco.ine housing re.source. According to PILF, ·the City's commitment to achieving this goal Is lacking, even though PILF, at ·page 2, recognizes any mobilehome park. closure must be· consistent_ with the City's Conversion Ordinance and that neither .the ordinance nor State law allows the City to unilaterally deny the property owner's request for closure of the mobile home park ) Since November 2012, PILF, as attorneys for a substantial majority of the mobilehome park's residents, has been actively engaged In the City~s proceedings mandated by the Conversion Ordinance. The proceeding is on-going, and the parties and their attorneys as well as the City C ltyOf P~ loAlto.org Printed with soy-based inks on 100% recycled paper processed without chlorine. Department of Housing and Community Develo.pment Page2 August 19, 2014 are still awaiting the hearing officer's final decision regarding mitigation assistance. U n'til the City has had a reasonable opportunity to receive and evaluate the final decisioll, PILF's observation that the City has failed to make progress toward its goal of preserving Buen-a Vista is premature. The City is also constrained from taking an advocacy role while the process to establish appropriate mitigation under the Conversion Ordinance Is ongoing, including seeking funding for preservation of the Park. This is because the City Council must be impartial When It considers the very likely appeal of the Hearing Officer's decision. It has therefore not been feasible for the City to actively seek funding until the hearings are concluded. The City intends to carry forward the program from the 2007-2014 Housing Element recognizing the Buena Vista Mobile Home Park.as providing low-and very-low Income housing and stating that, "To the extent feasible, the City will seek appropriate local, state and federal funding to assist in the preservation and maintenance of the existing units at the Buena Vista Mobile Home Park." However, the City cannot, as PILF states, at page 2, amend Its Housing Element program "to include additional affirmative steps •.. " that the ·city will take '' ... to prevent the Park's closure." (emphasis added). As PILF knows well, the Park owner is proceeding under applicable State law to close the mobilehome park, and the City cannot prevent the Park's closure if mitigation assistances measures sufficient by law are offered to current residents. The City's proposed Program H3.1.8 recognizes this reality, and the change that PILF has suggested would violate State law. Replacement of Affordable Housing Stock State Housing Element law recognizes that existing affordable "assisted housing developments" may at times be lost due to termination of subsidy contracts, mortgage prep~yment, or expiration of restrictions on use and requires that cities analyze the potential loss of these at- risk units. (Section 65583(a)(9).) However, the statute does not require that cities replace these affordable units if they are n.o longer affordable. While the Buena Vista Mobile Home Park is not subject to any deed restrictions and has not received public subsidies, and so is not an "assisted housing development, 11 the City recognizes that the Park Is an important source of low-and moderate-income housing and seeks to preserve and maintain the Park to the extent feasible. However, State law may not aUow the City to prevent the Park's closure. The City has active programs to create more affordable housing, including its below-rnarket- rate inclusionary program, Its Affordable Housing Funds, and Density Bonus Ordinance. In the 2001~2014 period, 191 affordable units were created in the City, and the City would seek to replace any affordable units lost at the Buena Vista Mobile Home Park. However, the Housing Element statute does not impose a replacement housing obligation on the City when an owner exercises its rights to close a mobile home park, as It does not impose a replacement housing obligation on cities when the owners of "assisted housing developments" exercise their rights to terminate their low-Income housing obligations. '• Department of Housing and Community Development Page 3 August 19, 2014 I trust this communication will convey the present circumstances ~nder which the City is attempting to address PILF's concerns and recommendations. Please do not hesitate· to contact me if HCD should have any additional questions about the City's draft 2015-2023 Housing Element. Sincerely, cc: Nadia Aziz, Law Foundation of Silicon Valley Mayor Shepherd and Councilmembers James Keene, City Manager Tim Wong, Senior Planner Molly Stump City Attorney .. Board of Governors Joan Harrington, Chair Santa Clam Univers1ty School of Law Fred W. Alvarez Jones Day Dene!ie M. DixonNThayer htloz1lit.i Corporation Martin FL GHck f\rno!d & Poner LLF Bruce Ives Hev:lett·Packard Company Dolores Jimenez f<aism Perrnam:-mte Leo P. MHrtfriez JC Hastings Coiiege o!· the Law Jahan Sagafi Outten & Gowen U . .P Rohit K. Sing!a [1/iun9er, Tolle~; & Olson L.LP Abdi Soltani Staff Gumermo Mayer Pres;dent & CF:O Richard A. Marc;:1ntonic f)kector of L.egisiative 8~ CnrmnunHy Afffiirs Deborah Marris Dlrector of Development W'ynn Hausser C}~rector of Cornrnunication Sumi Paik C>rector of Finance&. !\drn1nistration Angelica K, Jongco Samuel Tepperman·Ge!fant S::::>nior Sta!'!· Attorneys Rigel S, Massare'' Mar;1belle Nzegwu David Zisser StaF Attorneys Brandon Greene Hilary Hamme!! Attorneys & Law Fellows Patty Leal Finance Manager Princess Masi!ung;;m U.:lga! Administrative Coordinator Jesse White Communication & Development Coon.iinator August 18, 2014 VIA ELECTRONIC MAIL: James.Johnson@hcd.ca.gov James Johnson, Policy Analyst State Department of Housing and Community Development 2020 West El Camino Ave. Sacramento, CA 95833 RE: City of Palo Alto Draft Housing Element Dear Mr. Johnson: Public Advocates welcomes the opportunity to offer comments on the City of Palo Alto's July 2014 Draft Housing Element. We are joined in these comments by Urban Habitat and San Francisco Organizing Project/Peninsula Interfaith Action (SFOP/PIA). Several issues relevant to HCD's consideration of the Draft were discussed in a June 23 letter to the City from Public Advocates and the Public Interest Law Project. 1 (This letter a:1;1d the City's response are attached~) While the Draft Housing Element appropriately acknowledges the severity of Palo Alto's affordable housing crisis (which we highlight in the Background Section, below), it falls short in taking the steps needed, or legally required, to tackle that crisis. In particular, the Sites Inventory and Programs in the Draft are legally inadequate. Our comments focus on four major flaws: 1. The Draft, like the current Housing Element, relies heavily on infeasibly small sites (under one-half acre) to accommodate its lower-income housing need, despite the facts that the city (a) demonstrates no trac~ record of producing affordable homes on such sites, (b) includes no programs that would 1make such development feasible, and ( c) completely failed to implement- past programs necessary to consolidate those sites. 1 Public Advocates is a nonprofit law firm and advocacy organization that challenges the systemic causes of poverty and racial discrimination by strengthening community voices in public policy and achieving tangible legal victories advancing education, housing and transit equity. We spur change through collaboration with grassroots groups . representing low income communities, people of color and immigrants, combined with strategic policy refonn, media advocacy and litigation, "making rights real" across California since 1971. We have been advocating for affordable housing around the Bay Area for more than a decade, and have litigated, where necessary (e.g., Peninsula Public Advocates !rm. 131 Steuart Street, Suite 300 San Francisco, CA 94105-1241 415A31.7430 tax 415.431.1048 www.publicadvocates.org Sacramento Office 1225 Eighth Street, Suite 210 Sacramento, CA 95814-4809 916.442.3385 tax 916.442.3601 James Johnson, HCD August 18, 2014 Page 2 of8 2. Nearly all of the sites identified for affordable housing development have existing non- residential uses, but the Draft lacks the analysis and incentives necessary to demonstrate the feasibility of redevelopment as affordable housing. 3. The sites inventory makes unrealistic assumptions about the development capacity of sites with "CN" zoning. · 4. The Draft fails to plan for the unaccommodated affordable housing need from the prior planning period. To address these flaws, the City should include additional programs to facilitate the development of affordable housing, and should recalculate its claimed site capacity for affordable development to better reflect the zoning and development constraints that will likely make affordable housing infeasible on many of the sites in the Draft's inventory. In light of the City's poor track record of implementing important Housing Element Programs, we strongly recommend that, once additional program actions are added, HCD condition any finding of compliance on diligent implementation of Programs included to address the legal shortcomings addressed below. Background: Palo Alto's Acute Need for Affordable Housing and Failure to Implement its 2013 Housing Element In the heart of Silicon Valley, Palo Alto has an unusually poor jobs-housing balance and an especially acute shortage of homes affordable to lower-income workers, families, seniors, and people with special needs.2 Over the.past seven years, very few new homes for lower-income households have been built to help meet this need. For the 2007-2014 planning period, just 13% of the city's identified need for lower-income housing was constructed-165 new units toward a need ofl,233. Palo Alto's substantial imbalance of jobs and housing has myriad negative consequences that the Draft itself acknowledges: Since many of Palo Alto's workers cannot afford to live in the City, the imbalance [of jobs and housing] creates negative impacts such as long commutes for workers both inside and outside the region, substantially increased traffic congestion during peak commute periods, and increased air pollution and energy consumption. The production of additional affordable housing would help to reduce or even avoid these impacts. Draft Housing Element at p. 15. Indeed, more than 91% of the city's lower-income workforce- 19,000 workers-commutes into Palo Alto. See U.S. Census Longitudinal Employer-Household Dynamics Dataset. 3 The substantial shortfall in affordable housing production in Palo Alto is due in part to the City's lack of adequate sites, policies, and programs to facilitate its development. Not only did the City 2 See UC Davis Center for Regional Change, Jobs-Housing Fit Analysis, available at hJtp;./!..m~ppJngr.9gJg.n.~J.~-h~mg~_:J!f.~1~Y.J~-'.9.4.!!li~i!?..~.hm!.~i.ng.fi!f.Q..!.J... 3 Available at lntP..;.!.t.!.~.h.~LG.~.~-:.~g.n~.IJ~.!g9_y(. James Johnson, HCD August 18, 2014 Page 3of8 adopt its 2007-2014 Housing Element/our years after the statutory deadline and six years into the seven-year planning period, it then failed to implement many key programs intended to facilitate affordable housing development, including the programs expressly highlighted by HCD's compliance letter. HCD's compliance review of the City's 2013 Housing Element specifically highlighted the importance of timely implementation of four programs. See Letter from HCD, dated March 29, 2013 (basing its conclusion that "[t]he revised draft element meets the statutory requirements" on "successful implementation of Programs H2.l.10, H2.2.2, H2.2.7 and H2.2.9."} The city admits that three of these four critical programs were not implemented, and the fourth also appears to have been neglected. (See our attached letter, and Palo Alto's response.) As discussed in · Section 5 below, this failure substantially undermines the validity of the entire 2013 Housing Element. Given the City's poor track record implementing its 2013 Housing Element, strong steps must be taken to ensure that all Programs to promote affordable housing commit the city to specific actionable steps on a firm timeline with clear consequences or remedies for inaction. This is particularly the case with respect to the overwhelming reliance on very small sites and sites with existing non-residential uses, as we now discuss. 1. The Draft Housing Element Unjustifiably Assumes that a Substantial Portion of its Lower-Income Housing Need will be Accommodated on Infeasibly Small Sites The 2014 Draft Housing Element relies heavily on small sites to accommodate its lower-income RHNA. While the Draft claims to identify higher-density sites that accommodate 1,633 very-low and low income units, less than half of this capacity is on sites larger than one-half acre: Remaining Lower Income Housing Need (Draft p. 73) at least 1,025 Claimed Capacity on Sites over 1 Acre and at least 20du/acre4 " 491 Claimed Capacity on Sites between 0.5 and 1 Acre and at least 20du/acre 289 Lower Income Units claimed to be accommodated on sites under 0.5 acre at least 245 As HCD's Guidance explains, affordable housing development on sites smaller than one acre is generally infeasible. See HCD Requisite Analysis of Realistic D·evelopment Capacity; Gov. Code. 65583.2(c).5 De~elopment on sites under one-half acre is exponentially more difficult and costly. Challenges of scale, development constraints, and zoning and building code requirements make multi-family housing construction on small infill sites very difficult, and generate such high per-unit costs that affordable development is usually impossible. A minimum project size of 50;.80 units is generally necessary for developments using many state or federal funding sources, and that almost always requires sites larger than one acre. See id. Because of this, HCD 4 As discussed in Section 4, below, the claimed capacity of sites over one-half acre includes well over 100 sites with existing non-residential uses for which the Draft omits adequate analysis or Programs. These figures excludes three sites in the inventory that appear not to meet the default residential density of 20 du/acre. 5 Available at h!1I?..;.!!:W.:\:Y.:W..:.hf.~t9.~~Z9.Y!h12.4.!l1.9!l.§i.P.:g_~J~.m.~nJ.7.!.S.l~~-:z.:9n.jn.g,'.pJm .. James Johnson, HCD August 18, 2014 Page4 of8 Guidelines direct jurisdictions relying on small sites for affordable housing to affirmatively demonstrate that these sites are reasonably likely to result in affordable development within the planning period. See id. Programs or incentives to facilitate such development, such as lot consolidation, are generally needed. See id. Palo Alto, a city with extremely high land costs, has absolutely no track record of affordable housing development on sites under one-half acre. The City has not identified any homes affordable to lower-income households that have ever been developed on any site under one-half acre. 6 Instead, the Draft Housing Element justifies its foclusion of very small sites in its inventory by pointing to examples of market-rate housing development on small sites and "natural" aggregation of small sites to accommodate market-rate developments. These examples do nothing to justify the city's reliance on very-small sites to accommodate any portion of its affordable housing need. To the contrary, the expectation that non-profit and other affordable . ' housing developers will shoulder the burden of site consolidation is an unacknowledged constraint that the Draft does not even analyze. While the extraordinarily high cost of market- rate housing in Palo Alto may well yield sufficient profit to make possible luxury development on small sites and to create sufficient incentives for lot consolidation, the same cannot be said for affordable housing. If it continues to rely on very-small sites to accommodate a large proportion of its lower income housing need, the Housing Element must include strong programs with concrete commitments and quantified objectives that }\'ill result in consolidation of small sites. The vague site consolidation program in the current Housing Element would require substantial strengthening to accomplish this objective, but instead the City appears poised to substantially weaken this Program if it is included at all. Meaningful programs might include a commitment of City funds to the acquisition and aggregation of small sites to be set aside for affordable development; specific incentives for the aggregation of sites for affordable development backed by evidence that those incentives are sufficient; much greater densities on small sites (see footnote 6, below), and a commitment to identify alternative larger sites if the trend of zero affordable housing development on very small sites continues for the first two years of the Housing Eiement planning period. The Draft includes none of these programs. 2. The Draft Housing Element Relies on Sites with Existing Uses without Properly Analyzing and Mitigating this Constraint Not only are most sites in the inventory very small, the overwhelming majority have existing non-residential uses. Of the 1,633 sites identified to accommodate lower-income housing needs, close to 1,500 -about 90 percent -are oc·cupied by existing retail, industrial, commercial, and/or food service businesses. One of those sites, the home of Fry's Electronics, is said to 6 The only affordable homes developed on sites between one-half and one acre (other than a small number of BMR inclusionary units) came from two 100% affordable developments that were built at 50-83 units/acre, dramatically higher than the maximum density allowed on any of the sites in the Draft site inventory. See 2013 Housing Element Table 3-2, p. 77. Far from demonstrating that affordable development on small sites is feasible, these examples show that affordable housing development requires economies of scale that can only be accomplished on larger sites and/or sites with high enough densities to allow for minimum project sizes of 50-80 units. James Johnson, HCD August 18, 2014 Page 5of8 accommodate over 200 lower-income units. While some of these sites may have realistic potential to develop as affordable housing within the planning period, the Draft Housing Element's does not include the facts, analysis and programs sufficient to support that conclusion. While state law permits cities to include nonvacant sites in their inventory of land suitable for residential development, they must demonstrate that these sites "can be developed as housing within the planning period." § 65583.2(a). Specifically, the cities shall consider "the extent to which existing uses may constitute an impediment to additional residential development" and "regulatory or other incentives or standards to encourage additional residential development on these sites." § 65583.2(g). · Commercially-zoned and mixed-use sites also suffer from additional constraints that can make affordable housing development difficult. As the Draft notes, "[ m ]any of the commercially zoned parcels that allow residential uses require a ground floor retail component" which can add to the complexity (and expense}ofthe project. Draft, p. 65. Many sources of funding for affordable housing are difficult or impossible to obtain for mixed-use development, which further restricts the viability of these sites. While the Draft points to a pattern of mixed-use redevelopment in the city, these projects appear to be high end market-rate projects. The Draft fails to demonstrate that there is any track record of affordable mixed-use redevelopment on small sites (with the possible exception of projects that include a small number ofBMR inclusfonary units). Given the ovenvhelming emphasis on redevelopment of commercial sites to accommodate its affordable housing need, the Housing Element should incorporate concrete programs specifically aimed at facilitating the development of affordable housing, and any eventual certification of compliance should be conditioned on the prompt implementation of those programs. Of particular concern is the Draft's lack of analysis of existing uses at 340 Portage Road, a 12 " acre ~ite that the City asserts could accommodate 221 very-low income homes. ~(It is worth noting that this site was evaluated to have a "realistic capacity" of just 75 units when the City adopted its current housing element in June 2013. No explanation is provided for the radical increase in theoretical capacity.) This site has been a Fry's Electronics Store for decades, and the store shows every indication of continuing to thrive on that site into the future. The City also depends on the sales tax revenue it generates. While there have been s~me discussion about redeveloping the site as mixed-use, including housing, the Fry's lease appears to extend through 2019, and planning for the site is ongoing and uncertain. The site might well be suitable for affordable housing development at some time in th~ future, but in order to rely on it to accommodate such a substantial portion of its RHNA, the Draft must include both more analysis and programs to establish regulatory or other incentives or standards to promote that change in use within the planning period. See § 65583.2(g). Given the uncertain outcome of the Fry's site planning processes and the large number of units attributed to the site, the Housing Element should include a specific program that commits the City to rezone alternative sites of suitable size to accommodate its affordable housing need James Johnson, HCD August 18, 2014 Page 6 of8 should the Fry's site, or other larger sites, turn out not to become available in this planning period. 3. The Draft Housing Element Fails to Assess the Realistic Development Capacity of Sites with CN Zoning In evaluating the capacity of a site to accommodate a portion of the city's lower-income housing need, the Housing Element must identify the realistic capacity for new housing. See § 65583.2(c). HCD's guidance explains that "[w]hen establishing realistic unit capacity calculations, the jurisdiction must consider existing development trends as well as the cumulative impact of standards such as maximum lot coverage, height, open space, parking, and F ARs." SeeHCD Requisite Analysis of Realistic Development Capacity. The Draft Housing Element fails to perform this required site capacity analysis for housing sites zoned Commercial Neighborhood ("CN"). The claimed realistic development potential for CN sites in the draft inventory is simply the acreage multiplied by the maximum allowable density. There has been no accounting for other zoning or development constraints that are likely to lower the realistic capacity below this theoretical maximum. Based on this inadequate analysis, the Draft relies on at least 31 CN sites totaling approximately 12.3 acres to accommodate 247 lower-income units. See Draft Element Tables 3-5 and 3-6 on pp. 65-66; site inventory. There are a number of reasons to question the Draft's assumption that these CN sites can realistically develop at the maximum theoretically density. First, all of these sites are under 1 acre, and most are under one-half acre (many substantially smaller), which means that requirements for setbacks, parking, open space, FAR, or other zoning constraints may make the theoretical development maximum impossible to achieve. Second, it appears that CN sites may require vertical mixed use for residential projects, which can make housing development more complicated and reduce the likelihood that maximum allowable density is realistic (or that these sites produce any housing at all). Seep. 65. If the City continues to rely on CN sites, their realistic development capacity should be analyzed and calculated. That will likely lead to a substantial decrease in the number of lower-income units they can potentially accommodate, even where other issues like very small site size and existing uses are absent. 4. The Draft Housing Element Fails to Account for Carryover Need from the Prior Planning Period Section 65584.09 requires cities to rezone sites within the first year of the new planning period to accommodate any RHNA needs for which adequate sites were not made available during the prior period. It is important to note that the requirements of this section of the Housing Element Law are not limited to situations in which a jurisdiction has failed to implement a rezoning program. Rather, a carryover rezoning obligation arises any time a jurisdiction any time a jurisdiction has "in the prior planning· period failed to· identify or make available adequate sites James Johnson, HCD August 18, 2014 Page 7of8 to accommodate that portion of the regional housing need allocated pursuant to Section 65584." § 65584.09 (emphasis added). While Palo Alto purported to identify sufficient sites in its current Housing Element to accommodate its fair share of the Bay Area's RHNA for the 2007-2014, more than 50% of the site capacity the City claimed as available to accommodate its unmet lower-income housing need came on sites under one-half acre. As discussed in Section 1 above, development of affordable homes on such very-small sites is generally infeasible. An additional 25% of the lower-income need is theoretically accommodated on sites between one-half and 1 acre, which are also likely infeasible for affordable development at 20 units per acre (see Footnote 6 above). Recognizing that sites under one-half acre are generally not adequate to accommodate lower- income housing need as required by the Housing Element Statute, the 2013 Housing Element included a number of programs designed to make affordable development on these sites theoretically possible. These included Program H2.1.10 to incentivize small lot consolidation and Program H2.2.2 to streamline development on small sites. These Programs were not optional actions to encourage development, but rather committed the City to changes in its zoning and development standards necessary to make the sites in its inventory feasible for affordable development. Without these programs, very-small sites would not properly qualify as "land suitable" to accommodate lower-income housing need as required by Section 65583.7. HCD made that clear in its compliance letter, basing its finding of compliance on implementation of these two Programs. The City, however, did not implement the Programs relating to small sites and site aggregation that it committed to iri its 2013 Housing Element, and its letter, attached, indicates that it has no intention of doing so within the current planning period. This failure to implement critical Programs rendered development affordable homes on sites under one-half acre entirely infeasible. As a result, they cannot properly be relied upon to accommodate a portion of the City's lower-income RHNA need and therefore the City has a shortfall in available sites to accommodate at least 500 units of its unmet lower-income RHNA need. °' The City also failed to implement Program H2.2. 7, which committed it to re~one a site on Maybell Avenue to accommodate 60 lower-income units. The failure to implement Program H2.2. 7 rendered development of these units infeasible. This gives rise to an additional shortfall. While the City claims that the Maybell rezoning was not a "required" rezoning program, that is only because it elected to include the Maybell development in its "List of Projects with Entitlements/In Process or Issued Building Permit." 2013 Housing Element p. 70. HCD's compliance letter, on the other hand, explicitly referenced this.important program. James Johnson, HCD August 18, 2014 Page 8of8 We look forward to working with Palo Alto to ensure that these and all other necessary changes to its Draft Housing Element are made smoothly and effectively. Staff should feel free to draw on whatever assistance we can provide throughout the revision process. Sincerely yours, Isl Sam Tepperman-Gelfant Senior Staff Attorney Cc: Tim Wong, Senior Planner, City of Palo Alto Encl.: Letter to City Manager James Keene from Public Advocates, June 23, 2014 Letter to Public Advocates from James Keene, June 30, 2014 August 19, 2014 VIA ELECTRONIC MAIL: James.Johnson@hcd.ca.gov James Johnson, Policy Analyst State Department of Housing and Community Development 2020 West El Camino Ave. Sacramento, CA 95833 RE: City of Palo Alto Draft Housing Element Dear Mr. Johnson, I am writing to comment on Palo Alto's Draft Housing Element. The development climate in .Palo Alto has become very hostile to any development, and especially to housing. I hope to convince you that the likelihood of low or very low income affordable housing is zero unless more supportive policies are required in Palo Alto. It did not shock housing advocates that neighbors of the proposed 90 unit Maybell senior housing development sought to referend the unanimous City Council approval of this project. It was a shock that the referendum passed, and that it passed with support from precincts all across the City, not just those near the proposed development. The Palo Alto Weekly Newspaper recommended voting against the affo~dable housing proposal. Denser developments are repeatedly referenced as "ugly'', "stack and pack" and "ruining our city''. The most well-known and electable candidates for this fall's city council election are describing themselves as residentialists, with means they pledge to oppose all development. Is affordable housing less opposed? The individuals who referended the Maybell Senior Housing said in letters to the editor, editorials and in the public debate about the referendum that .they supported affordable housing, but they just opposed density. They held to this position despite many attempts to explain tha~ density makes affordable housing economically viable. The leaders of the referendum show every sign of staying active in city politics, and at least one leader is running for council. How has affordable housing been built in Palo Alto in the past? With the use of PC zoning. PC (Planned Community) zoning, provides zoning flexibility around density, FARs and other zoning aspects, and requires added public benefits, which can be affordable housing units. It was often heard during the referendum campaign that all 100% affordable housing in Palo Alto has used PC zoning. There is one recent exception to this statement -the SO unit 801 Alma family housing development. This development, completed in 2013, originally planned to include more units by using a PC zone. However I after presenting the expanded PC proposal, there was such concern about neighborhood opposition that the plans were scaled back to follow existing zoning. Why could the 801 Alma affordable housing could be built without a PC? The site was large (half a downtown block -.6 acres) and was in Palo Alto's densely zoned downtown. Are the current sites where the city asserts that affordable housing can be developed large or densely zoned? Most are small, and most are not densely zoned. When the referendum against the Maybell senior housing passed, there was hope Palo Alto Housing Corp could hold the property, and propose a multifamily housing project within zoning. But PAHC found the holding cost too high, and had to sell the land to a for-profit developer. With this recent history in mind, is it realistic to think that a non-profit developer will have the funds to obtain and consolidate multiple small parcels before building? Is it realistic to expect 100% affordable housing on small lots, with yields of under 10 units? The non- profit developments we have seen are Oak Court with 53 units, 801 Alma with SO units, and 488 W. Charleston Road with 35 units. Will PC zoning be of help? First, council has put a moratorium on PC zoning. Approving a PC takes council approval, and is subject to referendum. ·Even assuming the moratorium Is lifted after the November council election, Council will expect a referendum on any PC zoning approval that increases allowed density. They do not want the expense of the referendum campaign and election. Proposed PC's will not be approved. The only way that housing, including affordable housing, will be built in Palo Alto for the foreseeable future is by right. 100% affordable housing would benefit from a guaranteed right to greater density, and reduced parking requirements. To create the possibility of very low and low income units being developed, and given the anti-PC zoning climate, the city of Palo Alto needs to implement during the period an affordable housing overlay zoning for 100% affordable housing development. The closest current program H2.1.6 should be strengthened to require creation of an overlay zoning for 100% affordable housing. Current: H2.1.6 PROGRAM Consider density bonuses and/or concessions including allowing greater concessions for 100% affordable housing developments. Five-Year Objective: Provide opportunities for 100% affordable housing developments. Needed to support 100% affordable housing creation: Create an overlay zoning for 100% affordable housing within 1 year of housing ·element adoption, providing for increased densities and reduced parking requirements for 100% affordable housing development. The features of the overlay zoning might vary based on type of housing, and underlying zoning. The most ·important feature will be to allow greater density by right for 100% affordable housing. Thank you for your consideration. Edie Keating Palo Alto Resident Member, Peninsula Interfaith Action Edie.KeatinglOO@gmail.com 650 630-3005 3553 Alma St. #5 Palo Alto, CA 94306 Wong, Tim From: Sent: To: Subject: FYI -----0 rigi na I Message----- Johnson, James@HCD <James.Johnson@hcd.ca.gov> Tuesday, September 02, 2014 1:38 PM Wong, Tim; Genevieve Sharrow (genevieves@migcom.com) FW: Palo Alto housing element input From: recyclerlOO@sonic.net [mailto:recyclerlOO@sonic.net] Sent: Tuesday, September 02, 2014 1:27 PM To: Johnson, James@HCD Subject: Palo Alto housing element input Dear Mr. Johnson, I only learned Friday about the fact that the state is approving Palo Alto's Housing Element just now, and that the housing element had even been submitted for approval. Since time is short, I would just like to make a broad point that I hope the State will send the draft back to the City for more work. Given the major work the community must still do on the Comprehensive Plan in other elements in light of so much development in recent years, and especially given all the controversy over development, there is no way they can come close to retainjng internal consistency if they get a green-light to essentially set the Housing Element in stone first. As a member of the community, I would also like to object: I do not feel the City has made a diligent effort to include the community or all segments of the community in the development of the Housing Element -particularly the segments of our town that opposed the City in a land use referendum in historic numbers last year. As an example, I would point you to one of several recent news articles within the last 60 days about the City Council considering different concepts for the Comprehensive Plan, and whether to send them all out for environmental impact analysis. It makes it seem as if the process is still in the concept and debate stage. http:// pa loa Ito on Ii ne. com/ news/2014/07 /09 I pa lo-a Ito-co nsiders-a-net-ze ro-growth-visio n Nowhere has the Planning Department made it clear that they submitted a draft of the Housing Element already to the State for approval. They could have posted an announcement in the newspaper's Townsquare at no cost, but did not even do that. Our City has a habit of making a show of involvement in order to say they asked for involvement or had a public process while doing whatever they want anyway. And unfortunately, our City Employees and Council at the moment seem mostly to be representing major development interests. Last year, the very same employee put in charge of the Housing Element revision had engaged in a controversial public process involving the upzoning of a small neighborhood, while simply quietly submitting documents to the State verifying the property had already been rezoned (when it hadn't and never ultimately was), all CEQA appeals had expired (when there was an active suit) and that according to the City, the property was ready to build. Ultimately, the City lost a land use referendum, the property was never rezoned, and the millions received as a result of this false verification had to be returned. And yet that employee is now engaged in virtually identical tactics in the Comp Plan revision, essentially in charge of the revision, even as we wrestle with huge development issues in this town. The State should not enable this. 1 Palo Alto just went through a citizen referendum with historic participation by residents. There were binders full of letters by residents. Citizens qualified a referendum in just 10 days for something as dry as removing the upzoning of a residential property from the Comprehensive Plan. That means thousands of residents were concerned enough about development in our town to qualify a Comprehensive Plan issue for referendum in 10 days. Citizens are fielding several "residentialist" candidates for City Council in the next election in November. Do you honestly think, g!ven the limited input you just received, most supporting increased density and building -when the City is facing historic opposition against it -that the City could possibly have been diligent in soliciting input from all stakeholders? Here's an article from a local blogger about the habit of our City employees of giving the appearance of taking input, while actively ignoring it: http://www.paloaltoonline.com/blogs/p/2014/05/08/visioning-or-potemkin-villages , And there was an article from the last year in the local paper in which the City Manager admitted to reporter Gennady Shayner at the Weekly that the City employees cherry pick through the Comprehensive Plan in order to support whatever development or effort they want to approve, they do not include anything that opposes what they want. Again, the same employees have just given you that housing element draft and created a process in which you heard not a peep from the thousands of residents who have been actively engaged in opposing overdevelopment recently and asking for attention to infrastructure and safety to catch up. I would also make the additional point that our Housing Element has an inclusionary housing provision that has been used to further development interests to the exclusion of its intended purpose. For example, right now, over 400 low- income Palo Alto residents face eviction and a mobile home community will be razed, while the City sits in inaction, for example, failing to make available funds from our affordable housing funds to help residents purchase the park. That's just one example. A bigger issue is how they have allowed developers to conflate the inclusionary housing provision with high-density housing, when the housing being built is almost exclusively inaccessible to the disabled to even VISIT, much less live in. Around 10% of the population have mobility problems, it's not just people in wheelchairs or the elderly. Our town has put essentially ZERO focus on the efforts government could make to include the disabled in the prosperity of Silicon Valley through policies in the housing element. New construction and planning practices in Palo Alto in the last decades have not only failed to provide for the disabled, they h~ve actively discouraged liveability for the disabled here. The state should care about this. Thank you for taking my input. ************************************************************************CR This email and any files attached are intended solely for the use of the individual or entity to which th,ey are addressed. If you have received this email in error, please notify the sender immediately. This email and the attachments have been electronically scanned for email content security threats, including but not limited to viruses. 2 City of Palo Alto Housing Element 2015-2023 Draft Initial Study/Mitigated Negative Declaration August 29, 2014 ATTACHMENT D - This document is designed for double-sided printing - ENVIRONMENTAL CHECKLIST City of Palo Alto Department of Planning and Community Environment TABLE OF CONTENTS I. PROJECT DESCRIPTION ..................................................................................................... 4 II. ENVIRONMENTAL CHECKLIST AND DISCUSSION OF IMPACTS ........................................ 13 A. AESTHETICS ........................................................................................................... 14 B. AGRICULTURAL AND FOREST RESOURCES ............................................................ 15 C. AIR QUALITY.......................................................................................................... 17 D. BIOLOGICAL RESOURCES ....................................................................................... 21 E. CULTURAL RESOURCES .......................................................................................... 23 F. GEOLOGY, SOILS, AND SEISMICITY ........................................................................ 25 G. GREENHOUSE GAS EMISSIONS ............................................................................... 27 H. HAZARDS AND HAZARDOUS MATERIALS .............................................................. 29 I. HYDROLOGY AND WATER QUALITY ...................................................................... 32 J. LAND USE AND PLANNING ..................................................................................... 35 K. MINERAL RESOURCES ............................................................................................ 38 L. NOISE ..................................................................................................................... 39 M. POPULATION AND HOUSING ................................................................................... 44 N. PUBLIC SERVICES ................................................................................................... 45 O. RECREATION .......................................................................................................... 47 P. TRANSPORTATION AND TRAFFIC............................................................................ 48 Q. UTILITIES AND SERVICE SYSTEMS ......................................................................... 52 R. MANDATORY FINDINGS OF SIGNIFICANCE ............................................................. 54 III. SOURCES REFERENCED................................................................................................... 56 IV. DETERMINATION ............................................................................................................ 57 V. SUMMARY OF MITIGATION MEASURES………………………………………………...59 ENVIRONMENTAL CHECKLIST City of Palo Alto Department of Planning and Community Environment PROJECT DESCRIPTION 1. PROJECT TITLE City of Palo Alto Housing Element (2015 – 2023) 2. LEAD AGENCY NAME AND ADDRESS City of Palo Alto Department of Planning and Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 3. CONTACT PERSON AND PHONE NUMBER Tim Wong, Housing Coordinator City of Palo Alto (650) 329-2561 4. PROJECT SPONSOR’S NAME AND ADDRESS City of Palo Alto Department of Planning and Community Environment 250 Hamilton Avenue Palo Alto, CA 94303 5. APPLICATION NUMBER N/A 6. PROJECT LOCATION The 2015-2023 Housing Element is a planning document that provides guidance for new housing development throughout the City of Palo Alto. Palo Alto is located in northern Santa Clara County, as shown on Exhibit 1, Regional and Vicinity Map. Palo Alto is bordered by San Mateo County (cities of Menlo Park and East Palo Alto) to the north, San Francisco Bay to the east, Stanford University and the Skyline Ridge of the coastal mountains to the west, and the city of Mountain View and town of Los Altos to the south, as shown on Exhibit 1, Regional and Vicinity Map. City of Palo Alto Housing Element 2015-2023 Page 4 Initial Study 7. COMPREHENSIVE PLAN DESIGNATION The Palo Alto Comprehensive Plan Land Use & Design Element identifies the Residential and Commercial land use designations that allow residential uses at various densities. The Housing Element evaluates the existing and projected housing needs of the community, provides an inventory of adequate sites available for development to meet the City’s share of the regional housing needs, and updates goals and policies to address the housing needs and to remove or reduce constraints to the production and maintenance of housing. The draft Housing Element does not propose to change any particular parcel’s Comprehensive Plan land use designation. The 2015-2023 Housing Element will update the Comprehensive Plan pursuant to State law (Government Code Section 65588). 8. ZONING Multiple residential and commercial zoning districts in Palo Alto provide opportunities for development of housing projects at various densities. A detailed description of the zoning and an inventory of the sites available for housing development are contained in the Housing Element. The draft Housing Element does not propose to change any particular parcel’s zoning. 9. PROJECT DESCRIPTION The project is the adoption and implementation of the Palo Alto 2015-2023 Housing Element to comply with State law. Background This Initial Study of environmental impacts has been prepared to conform to the requirements of the California Environmental Quality Act (CEQA), the CEQA Guidelines (California Code of Regulations 15000 et. seq.), and the regulations and policies of the City of Palo Alto. By State mandate, each city and county in California is required to plan for the housing needs for its share of the expected new households in the region through periodic updates to the Housing Element. The Housing Element is one of seven required elements of the Comprehensive Plan. The Housing Element addresses existing and future housing needs of persons in all economic segment groups and serves as a tool for decision-makers and the public for understanding and meeting housing needs in Palo Alto. While the law does not require local governments to actually construct housing to meet identified needs, it does require that the community address housing needs in its discretionary planning actions by creating opportunities for housing in the land use plan and facilitating housing development through policy. An update to the Palo Alto Housing Element was recently adopted in 2013; as such, this update represents a focused update with limited changes. There are no major changes proposed to the goals and policies of the current Housing Element adopted in 2013, and the project proposes no changes to any particular parcel’s zoning or Comprehensive Plan land use designation. City of Palo Alto Housing Element 2015-2023 Page 5 Initial Study Statutory Requirements State law requires that all housing elements address four key topics: 1) housing needs, 2) constraints to housing development, 3) housing resources, and 4) a housing plan. Analysis of these topics provides the foundation for the preparation of a housing element. Article 10.6, Section 65580 – 65589.8, Chapter 3 of Division 1 of Title 7 of the Government Code sets forth the legal requirements for a housing element and encourages the provision of affordable and decent housing in suitable living environments for all communities to meet statewide goals. The Housing Element serves as a guiding document for new housing development; it how the City will allocate resources for new housing and housing related services during the planning period of 2015-2023. As noted above, the 2015-2023 update is a focused update to the adopted 2009-2014 Housing Element, which was found to comply with State law by the California Department of Housing and Community Development (HCD). This Initial Study evaluates the potential environmental impacts that might reasonably be anticipated to result from planning for the potential development throughout the City of up to 1,988 housing units over an eight-year period. These 1,988 units represent Palo Alto’s “fair share” of housing based on the Association of Bay Area Government’s (ABAG) Regional Housing Needs Allocation (RHNA) process for the City of Palo Alto. The City is required to plan for 1,988 units over an eight year period, per RHNA calculations, even though the average annual housing growth in Palo Alto is 167 units a year (equivalent to 1,336 units over eight years). As of January 1, 2014, 440 housing units have been approved, permitted, or built in the city and can be counted toward the RHNA obligation for the 2015-2023 planning period. Thus, the remaining housing need for the remainder of the planning period is 1,548 housing units. The City of Palo Alto is the lead agency under CEQA and has prepared this Initial Study to address the potential impacts of updating the Housing Element of the Comprehensive Plan. Housing Element Content The Housing Element includes goals, policies, and implementation programs that address the housing needs of the community. The Housing Element vision is: “Our housing and neighborhoods shall enhance the livable human environment for all residents, be accessible to civic and community services and sustain our natural resources.” To achieve this vision, the policies and programs include recommendations for changes to certain land use regulations pertaining to residential development, including programs to adopt minimum densities in certain zones, adopt flexible development standards such as reduced parking standards for smaller units, and to consider limited exceptions to height limits for mixed use projects near fixed-rail transit stations. Any future changes in regulations—including the zoning changes proposed in Housing Element implementation programs and construction and development of any particular housing project—will be subject to environmental review per the requirements of CEQA, and subject to public review and hearings prior to implementation. The City of Palo Alto is a mature community with very little vacant land available for development. California housing element law requires that each city and county develop local City of Palo Alto Housing Element 2015-2023 Page 6 Initial Study housing programs designed to meet its “fair share” of housing needs for all income groups, based on projected population growth. The local fair share of housing needs is known as the RHNA, as identified above. Housing Element law also requires that jurisdictions identify adequate sites that have land use and zoning policies in place to meet the RHNA. Most of the sites identified as opportunity sites to meet the RHNA in the Housing Element are infill sites that are now underdeveloped and could be redeveloped either at higher densities or by the replacement of older, underutilized commercial sites with higher density residential or mixed- use residential projects. The areas selected for potential housing development include the University Avenue Downtown area, California Avenue Transit Neighborhood, El Camino Real Mixed Use Transit Corridor, San Antonio Avenue Mixed Use Corridor, South of Forest Area Coordinated Area Plan – Phase 2, and various sites in residential zoning districts that are either vacant or occupied by commercial uses. These sites, a description of the specific zoning districts, and the site characteristics are described in detail in the Housing Element. Since the Housing Element is an update to the Comprehensive Plan, the analysis of environmental impacts is broad and programmatic in nature. Should future residential development require discretionary action by the City of Palo Alto, project-level CEQA review will be required to determine project-specific impacts. Evaluation of future project-level impacts would be too speculative to include in this IS/MND (see CEQA Guidelines Section 15145). Many of the programs and policies can be implemented through existing codes, policies, and practices. Analysis of the potential environmental impacts of the Housing Element update assumes development will occur under the existing Zoning Code, as well as the recommended code revisions likely to occur within three years of implementation. 10. SURROUNDING LAND USES AND SETTING The Housing Element update involves the entire City of Palo Alto, a community of 66,642 residents (as of 2013). Palo Alto is part of the San Francisco Bay Area region, and is located within Santa Clara County and borders San Mateo County to the north. The city boundaries extend from San Francisco Bay on the east to the Skyline Ridge of the coastal mountains on the west, with the city of Menlo Park to the north and the city of Mountain View to the south. Palo Alto encompasses approximately 26 square miles, one-third of which is open space. 11. OTHER PUBLIC AGENCY APPROVALS REQUIRED The Housing Element is subject to review by the California State Department of Housing and Community Development (HCD). City of Palo Alto Housing Element 2015-2023 Page 7 Initial Study This Page Intentionally Left Blank City of Palo Alto Housing Element 2015-2023 Page 8 Initial Study City of Palo Alto Housing Element 2015-2023 Page 9 Initial Study This Page Intentionally Left Blank City of Palo Alto Housing Element 2015-2023 Page 10 Initial Study City of Palo Alto Housing Element 2015-2023 Page 11 Initial Study This Page Intentionally Left Blank City of Palo Alto Housing Element 2015-2023 Page 12 Initial Study ENVIRONMENTAL CHECKLIST AND DISCUSSION OF IMPACTS The following Environmental Checklist has been used to identify environmental impacts which could occur if the proposed project is implemented. The left-hand column in the checklist lists the source(s) for the answer to each question. The sources cited are identified at the end of the checklist. Discussions of the basis for each answer and a discussion of mitigation measures that are proposed to reduce potential significant impacts are included. City of Palo Alto Housing Element 2015-2023 Page 13 Initial Study A. AESTHETICS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Substantially degrade the existing visual character or quality of the site and its surroundings? 1, 2 X b) Have a substantial adverse effect on a public view or view corridor? 1, 2 X c) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? 1, 2 X d) Violate existing Comprehensive Plan policies regarding visual resources? 1, 2 X e) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? 1 X f) Substantially shadow public open space (other than public streets and adjacent sidewalks) between 9:00 a.m. and 3:00 p.m. from September 21 to March 21? 1 X DISCUSSION: The potential housing sites all lie within fully urbanized areas of Palo Alto. Several areas of the city are specifically identified for development opportunities: 1) the University Avenue Downtown area, 2) California Avenue Transit Neighborhood, 3) El Camino Real Mixed Use Transit Corridor, 4) San Antonio Avenue Mixed Use Corridor, 5) south of Forest Area Coordinated Area Plan – Phase 2, and 6) various sites in Residential zoning districts currently developed with commercial uses. Most of these sites are also located along transportation corridors and are near the Caltrain stations. None of the potential project sites is located near a scenic highway or scenic vista, as scenic locations are in the hillside and waterfront areas of Palo Alto. Adoption of the Housing Element update will not result in any adverse aesthetic impacts. Any future housing development will be required to comply with the Zoning Code requirements that regulate the mass, bulk, and height of buildings. Also, any applicable design guidelines would apply. With application of existing standards, new housing will be compatible development within the areas in which they will be developed. Mitigation Measures: None Required Conclusion: The proposed project will not result in significant, adverse visual or aesthetic impacts. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 14 Initial Study B. AGRICULTURAL AND FOREST RESOURCES In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state’s inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and the forest carbon measurement methodology provided in the Forest Protocols adopted by the California Air Resources Board. Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? 1 X b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? 1, 2, 3 X c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)1) or timberland (as defined in Public Resources Code section 45262)? 1 X d) Result in the loss of forest land or conversion of forest land to non-forest use? 1 X e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? 1 X DISCUSSION: 1 PRC 12220(g): "Forest land" is land that can support 10-percent native tree cover of any species, including hardwoods, under natural conditions, and that allows for management of one or more forest resources, including timber, aesthetics, fish and wildlife, biodiversity, water quality, recreation, and other public benefits. 2 PRC 4526: "Timberland" means land, other than land owned by the federal government and land designated by the board as experimental forest land, which is available for, and capable of, growing a crop of trees of any commercial species used to produce lumber and other forest products, including Christmas trees. Commercial species shall be determined by the board on a district basis after consultation with the district committees and others. City of Palo Alto Housing Element 2015-2023 Page 15 Initial Study According to the City’s Comprehensive Plan, none of the potential housing sites is located in a “Prime Farmland”, “Unique Farmland”, or “Farmland of Statewide Importance” area, as shown on the maps prepared for the Farmland Mapping and Monitoring Program of the California Resources Agency. The sites are not designated for agricultural uses by the Palo Alto Comprehensive Plan, nor are they zoned for agricultural use or regulated by the Williamson Act. The potential housing sites are not currently used for agricultural purposes; all are located within fully developed urban areas with no forest or timberland resources. For these reasons, the proposed project will not result in a significant impact on agricultural resources. Mitigation Measures: None Required Conclusion: Any future development project on a site included on the Housing Inventory Sites will not result in impacts to agricultural resources. (No Impact) City of Palo Alto Housing Element 2015-2023 Page 16 Initial Study C. AIR QUALITY Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Conflict with or obstruct with implementation of the applicable air quality plan (1982 Bay Area Air Quality Plan & 2000 Clean Air Plan)? 1, 4 X b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation indicated by the following: 1, 4 X i. Direct and/or indirect operational emissions that exceed the Bay Area Air Quality Management District (BAAQMD) criteria air pollutants of 80 pounds per day and/or 15 tons per year for nitrogen oxides (NO), reactive organic gases (ROG), and fine particulate matter of less than 10 microns in diameter (PM10); 1, 4 X ii. Contribute to carbon monoxide (CO) concentrations exceeding the State Ambient Air Quality Standard of nine parts per million (ppm) averaged over eight hours or 20 ppm for one hour( as demonstrated by CALINE4 modeling, which would be performed when a) project CO emissions exceed 550 pounds per day or 100 tons per year; or b) project traffic would impact intersections or roadway links operating at Level of Service (LOS) D, E or F or would cause LOS to decline to D, E or F; or c) project would increase traffic volumes on nearby roadways by 10% or more)? 1, 4 X c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? 1, 4 X d) Expose sensitive receptors to substantial levels of toxic air contaminants? 1, 4 X i. Probability of contracting cancer for the Maximally Exposed Individual (MEI) exceeds 10 in one million 1 X ii. Ground-level concentrations of non- carcinogenic TACs would result in a hazard index greater than one (1) for the MEI 1 X City of Palo Alto Housing Element 2015-2023 Page 17 Initial Study Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact e) Create objectionable odors affecting a substantial number of people? 1 X f) Not implement all applicable construction emission control measures recommended in the Bay Area Air Quality Management District CEQA Guidelines? 1 X DISCUSSION: The project area is located in the Santa Clara Valley, which is part of the San Francisco Bay Area Air Basin. The Bay Area Air Quality Management District (BAAQMD) has the primary responsibility for ensuring that the Santa Clara Valley Air Basin attains and maintains compliance with federal and state ambient air quality standards. This regional agency regulates air quality through its permit authority over most types of stationary emission sources and through its planning and review process. Ambient air quality standards are set to protect public health. Both federal and state ambient air quality standards apply, as established by the U.S. Environmental Protection Agency (USEPA) and state air quality agencies (CALEPA for California). California air quality standards are generally more stringent that federal standards. Continuous air monitoring by these agencies and BAAQMD ensure that air quality standards are being met or improved. Both the USEPA and the California Air Resources Board have established ambient air quality standards for common pollutants. These ambient air quality standards are levels of pollutants which represent safe levels that avoid specific adverse health effects. The ambient air quality standards cover what are called “criteria” pollutants because the health and other effects of each pollutant are described in criteria documents. The major criteria pollutants are ozone, carbon monoxide, nitrogen dioxide, and particulate matter. The Bay Area is currently designated as a nonattainment area for state and national ozone standards and state particulate matter (PM2.5), and as a nonattainment area for the state particulate matter (PM10 and PM2.5) standards. The 2010 Clean Air Plan (CAP) was developed as a multi-pollutant plan and aims to bring the area into attainment of federal and state ambient air quality standards. This plan provides an integrated control strategy to reduce ozone, particulate matter (PM), toxic air contaminants, and greenhouse gases. BAAQMD recently initiated an update to the Bay Area Clean Air Plan and held a public workshop in February 2014 to initiate development of the update. As analyzed below, development of potential housing sites will not result in a significant increase in emissions of particulate matter or ozone precursors during operation. Because construction activities require permits from the BAAQMD and Palo Alto to regulate emissions, construction emissions will also not result in significant emissions of particulate matter or ozone precursors. Therefore, the proposed project will not conflict with or obstruct implementation of the BAAQMD’s air quality plans to bring the Air Basin into attainment for particulate matter and ozone, resulting in a less-than-significant impact. City of Palo Alto Housing Element 2015-2023 Page 18 Initial Study Sensitive Receptors: BAAQMD defines sensitive receptors as facilities where sensitive receptor population groups (children, the elderly, the acutely ill and the chronically ill) are likely to be located. These land uses include residences, school playgrounds, childcare centers, retirement homes, convalescent homes, hospitals and medical clinics. Long-Term Air Quality Impacts: The potential operational air quality impacts of future residential projects largely will be associated with motor vehicle trips generated by the proposed developments. Since most of the identified Housing Sites will result in the replacement of existing development with new housing and mixed-use projects, the increase in the number of vehicle trips is not expected to be significant. As shown in Exhibit 2 (Housing Sites Map), the majority of the Opportunity Sites are located within a half mile from a Caltrain station and a quarter mile from El Camino Real. The placement of the proposed developments is intended to encourage transit use and reduce auto dependency. Any minor increase in vehicle trips generated will only marginally increase daily emissions of ozone precursors and particulate matter (PM10 and PM2.5) and will likely be below BAAQMD established thresholds for consideration of a significant impact. Any individual development project will be subject to environmental review pursuant to CEQA and the City’s local procedures to determine if any long-term air quality impacts will occur from the operation of a specific new development. Any stationary sources on a given site will be subject to the BAAQMD Rules and Regulations. Compliance with BAAQMD Rules and Regulations will ensure that the project will not conflict with or obstruct implementation of the applicable air quality plans. CEQA requires program level initial studies to evaluate individual as well as cumulative impacts of General (Comprehensive) Plans. Projects in compliance with BAAQMD’s CAP are considered less than significant for long-term air quality impacts. Short-Term Air Quality Impacts: Construction-related air quality impacts associated from a proposed project will be the result of dust-creating activities, exhaust emissions of construction equipment, and the use of typical construction materials such as asphalt and other construction materials that tend to volatilize into the atmosphere. Due to the negligible amount and short duration of these activities, all are considered to be less than significant, except the potential impacts from construction activities generating dust. Construction activities such as excavation and grading operations and construction vehicles driving over and wind blowing over exposed earth generate fugitive particulate matter that will affect local and regional air quality. The effects of these dust generating activities will be increased dustfall and locally elevated levels of PM10 downwind of construction activity. Construction dust also has the potential for creating a nuisance at nearby properties.3 If uncontrolled, dust generated by construction activities could be a significant impact. Any future project’s construction-related activities will be required to comply with BAAQMD and Palo Alto’s regulations, which include implementation of all feasible dust control measures. Compliance with these regulations will reduce construction impacts to 3 The word nuisance is used in this Initial Study to mean “annoying, unpleasant or obnoxious” and not in its legal sense. City of Palo Alto Housing Element 2015-2023 Page 19 Initial Study a level that is less than significant. Therefore, future projects will not conflict with any applicable air quality plans or expose any sensitive receptors to substantial pollutants. With regard to objectionable odors, neither construction activity nor the operation of housing units typically generates unusual odors. Mitigation Measures: None Required Conclusion: Increased density can result in increased traffic and consequent impacts on air quality. However, the areas proposed for higher density residential development are in already developed urban areas, so the new uses will be replacing uses which already generate traffic. In addition, a majority of the Housing Sites are located within one-half mile of major transit hubs (Caltrain) or other major transit routes such as El Camino Real. It is expected that any increase in density will be offset both by the fact that the new residential uses would replace existing uses and by the increased use of transit, thus reducing the potential impact on air quality. Future development resulting from implementation of the Housing Element will not result in significant long-term or local air quality impacts. (Less than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 20 Initial Study D. BIOLOGICAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? 1, 2, 5 X b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, including federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? 1,2 X c) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? 1, 2, 5 X d) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or as defined by the City of Palo Alto’s Tree Preservation Ordinance (Municipal Code Section 8.10)? 1, 2, 5 X e) Conflict with any applicable Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? 1, 2, 5 X DISCUSSION: The Comprehensive Plan Housing Element is a policy document that addresses housing need in the City; no actual development or rezoning/re-designation of land is proposed as part of the Housing Element. Therefore, its adoption would not, in itself, result in impacts on biological resources. The areas of Palo Alto identified for potential housing development are located within a fully developed urban settings that have very little native plant and animal life. There is no record of any rare, unique or endangered species of plants or animals in these areas. The potential development sites are surrounded by office, commercial and residential development with limited cover and foraging habitat for wildlife. City of Palo Alto Housing Element 2015-2023 Page 21 Initial Study Because the areas identified as Housing Sites have already been disturbed through urban development, no significant changes are anticipated in the diversity or number of species of plants or animals, or in the deterioration of existing wildlife habitat. Any trees present on potential development sites will be evaluated on a case-by-case basis. Any future project on a property which includes any trees that are a species identified as “protected” under the City’s municipal code will require review in accordance with the requirements of Chapter 8.10 of the Municipal Code, Tree Preservation and Management Regulations. Mitigation Measures: None Required Conclusion: The proposed Housing Element update will not result in any biological impacts. (No Impact) City of Palo Alto Housing Element 2015-2023 Page 22 Initial Study E. CULTURAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Directly or indirectly destroy a local cultural resource that is recognized by City Council resolution? 1, 11 X b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5? 1, 2 X c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? 1, 2 X d) Disturb any human remains, including those interred outside of formal cemeteries? 1, 2 X e) Adversely affect a historic resource listed or eligible for listing on the National and/or California Register, or listed on the City’s Historic Inventory? 1, 2, 11 X f) Eliminate important examples of major periods of California history or prehistory? 1 X DISCUSSION: Proposed site for future housing development have already been disturbed, therefore future projects are not anticipated to impact prehistoric or historic archaeological resources. There is no evidence of recorded historic and/or prehistoric archaeological resources on or near any of the Housing Sites. None of the sites is listed on the City of Palo Alto’s Historic Resources Inventory. Buried Prehistoric and Historic Resources: Based on relevant archaeological reports for the immediate area, adoption of the Housing Element and future housing development on selected sites should have no effect on archaeological resources. Although it is unlikely that buried cultural materials will be encountered, standard conditions for excavation activities will be applied to a potential project as described below. For all future projects, if during grading and construction activities, any archaeological or human remains are encountered, construction shall cease and a qualified archaeologist shall visit the site to address the find. The Santa Clara County Medical Examiner’s office shall be notified to provide proper direction on how to proceed. If any Native American resources are encountered during construction, construction shall cease immediately until a Native American descendant, appointed by the Native American Heritage Commission of the State of California, is able to evaluate the site and make further recommendations and be involved in mitigation planning. Mitigation Measures: None Required City of Palo Alto Housing Element 2015-2023 Page 23 Initial Study Conclusion: Since any sites proposed for development have already been disturbed, future projects are not anticipated to impact prehistoric or historic archaeological resources. The proposed project will not result in significant impacts to cultural resources. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 24 Initial Study F. GEOLOGY, SOILS, AND SEISMICITY Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. 5, 10 X ii) Strong seismic ground shaking? 1, 2, 5 X iii) Seismic-related ground failure, including liquefaction? 1, 2, 5 X iv) Landslides? 2, 5 X b) Result in substantial soil erosion or the loss of topsoil? 1, 5 X c) Result in substantial siltation? 1 X d) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? 1, 2, 5 X e) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? 1, 2, 5 X f) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? 1, 5 X g) Expose people or property to major geologic hazards that cannot be mitigated through the use of standard engineering design and seismic safety techniques? 1, 5 X DISCUSSION: Seismicity: The San Francisco Bay Area is one of the most seismically active regions in the United States. Generally, the City of Palo Alto will experience a range of weak to very violent shaking in the City of Palo Alto Housing Element 2015-2023 Page 25 Initial Study event of a major earthquake along the San Andreas or Hayward fault. Although hazards exist, development will not expose people or property to major geologic hazards that cannot be addressed through the use of standard engineering design and seismic safety techniques, as required by building codes. With proper engineering, new development is not expected to result in any significant adverse short or long-term impacts related to geology, soils, or seismicity. The major cause of damage during an earthquake is ground shaking, with frequency and amplitude of motion dependent on local geologic conditions. Sites on bedrock tend to have sharp, high frequency jolts with little amplitude, while sites on deep alluvium receive lower frequency shocks but suffer movement with high amplitude. Regional studies have suggested that the response of certain soils such as bay muds to earthquakes will also vary according to the depth of soil and the magnitude of the quake. Thus, ground accelerations of smaller quakes are magnified as much as three times over the underlying bedrock, whereas ground accelerations of a large quake (7.5 or more on the Richter scale) will be reduced to a value below that of the underlying bedrock. Landslides: The natural factors that promote landslides are steep slopes, poorly consolidated bedrock, and occasional heavy rainfall in hilly areas. All of the potential housing sites are on areas that are relatively flat. Liquefaction: Soil liquefaction is a condition where saturated granular soils near the ground surface undergo a substantial loss of strength during seismic events. Loose, water-saturated soils are transformed from a solid to a liquid state during ground shaking. Liquefaction can result in serious deformations. Soils most susceptible to liquefaction are loose, uniformly graded, saturated fine- grained sands that lie close to the ground surface. Portions of Palo Alto, including the University Avenue area, are identified on the State of California Seismic Hazard Zones Official Map, Palo Alto Quadrangle as being susceptible to liquefaction, and soils in the area have a moderate potential for expansion. The potential housing sites are located in areas with expansive soils and strong seismic ground shaking, and some of the sites may be subject to liquefaction. Any new construction will be required to meet current building code standards and, depending on project location and scope, may be required to prepare geologic reports to address potential geologic impacts associated with the development of the site, including ground shaking and liquefaction. Mitigation Measures: None Required Conclusion: Some areas of Palo Alto are impacted by geological constraints such as expansive soils and susceptibility to ground shaking. However, the areas proposed for new housing in the Housing Element update are primarily areas which are on level land and have previously been developed with urban uses. Any new construction will be required to comply with the current building code requirements and meet any geological and earthquake standards of the current code. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 26 Initial Study G. GREENHOUSE GAS EMISSIONS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? 1, 4 X b) Conflict with any applicable plan, policy or regulation of an agency adopted for the purpose of reducing the emissions of greenhouse gases? 1, 4 X DISCUSSION: BAAQMD’s approach to developing a threshold of significance for greenhouse gas (GHG) emissions is to identify the emissions level for which a project will not be expected to substantially conflict with existing California legislation adopted to reduce statewide GHG emissions needed to move the state toward climate stabilization. If a project will generate GHG emissions above the threshold level, it will contribute substantially to a cumulative impact, and will be considered significant. The thresholds of significance for operational-related GHG emissions are: • For land use development projects, the threshold is compliance with a qualified GHG reduction strategy; or annual emissions less than 1,100 metric tons per year (MT/yr) of CO2e; or 4.6 MT CO2e/SP/yr (residents + employees). Land use development projects include residential, commercial, industrial, and public land uses and facilities. • For stationary-source projects, the threshold is 10,000 metric tons per year (MT/yr) of CO2e. Stationary-source projects include land uses that would accommodate processes and equipment that emit GHG emissions and would require an Air District permit to operate. If annual emissions of operational-related GHGs exceed these levels, the proposed project would result in a cumulatively considerable contribution of GHG emissions and a cumulatively significant impact to global climate change. The BAAQMD has established project-level screening criteria to assist in the evaluation of impacts. If a project meets the screening criteria and is consistent with the methodology used to develop the screening criteria, then the project’s air quality impacts may be considered less than significant. Below are some screening level examples taken from the BAAQMD CEQA Air Quality Guidelines, 06/2010 (Table 1, Operational-Related Criteria Air Pollutant and Precursor Screening Level Sizes). City of Palo Alto Housing Element 2015-2023 Page 27 Initial Study Table 1 Operational-Related Criteria Air Pollutant and Precursor Screening Level Sizes Land Use Type Operational GHG Screening Size ** Single-family 56 du Apartment, low-rise 78 du Apartment, mid-rise 87 du Condo/townhouse, general 78 du City park 600 acres Day-care center 11,000 sf General office building 53,000 sf Medical office building 22,000 sf Office park 50,000 sf Quality restaurant 9,000 sf **If project size is => screening size, then it is considered potentially significant. State Housing Element law requires that each jurisdiction plan for the anticipated housing needs of the community. ABAG provides an estimate for the housing needs for the San Francisco Bay Area, which are assigned to each city and county through the RHNA process. The RHNA for each community represents the housing need that it must plan for during the 2015-2023 period for the Housing Element. The total allocation for Palo Alto is 1,988 housing units, which will serve the needs of all income levels from very low-income households to above moderate-income households. The City of Palo Alto has approved, permitted, or built 440 housing units since January 1, 2014 for the Housing Element planning period of 2015-2023. The housing need for the remainder of the planning period is 1,548 housing units. As a programmatic land use project, the standard threshold used for the proposed project is 4.6 CO2e/SP/yr. However, since no actual development or rezoning/re-designation of land is proposed as part of the Housing Element, its adoption and implementation would not, in itself, generate greenhouse gas emissions. Even calculating the full buildout of the units, it is not projected to exceed this threshold. Any future development project proposal that is submitted will be reviewed to analyze its impact on GHG emissions and the established thresholds of the BAAQMD. If a project does not meet the criteria established in the BAAQMD CEQA Guidelines, additional analysis will be required. If it is determined that a project’s impacts are significant, mitigation measures will be developed to reduce the air quality impacts to the extent feasible. As noted in the discussion regarding air quality, most of the identified Housing Sites are in areas that are fully developed, and are close to major transit hubs or along transit corridors. It is expected that any potential increase in traffic generation and air quality impacts associated with potential new residential development will be offset by the availability of transit hubs and corridors to accommodate some of the transportation needs of future residents. In addition, the Housing Element includes continuing policies and programs aimed at developing sustainable housing through green building incentives and requirements, conserving water and energy citywide, and reducing GHG gases through strategic connections between housing, employment and transit opportunities. Mitigation Measures: None Required Conclusion: The adoption of the Housing Element will not result in a significant impact on greenhouse gas emissions. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 28 Initial Study H. HAZARDS AND HAZARDOUS MATERIALS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Create a significant hazard to the public or the environment through the routing transport, use, or disposal of hazardous materials? 1 X b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? 1 X c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? 1 X d) Construct a school on a property that is subject to hazards from hazardous materials contamination, emissions or accidental release? 1 X e) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? 1, 2 X f) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? 1, 2 X g) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working the project area? 1 X h) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? 1, 2 X i) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? 1, 2, 9 X j) Create a significant hazard to the public or the environment from existing hazardous materials 1 X City of Palo Alto Housing Element 2015-2023 Page 29 Initial Study Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact contamination by exposing future occupants or users of the site to contamination in excess of soil and ground water cleanup goals developed for the site? DISCUSSION: Background Information: Hazardous materials encompass a wide range of substances, some of which are naturally occurring and some of which are man-made. Examples of hazardous materials include pesticides, herbicides, petroleum products, metals (e.g., lead, mercury, arsenic), asbestos, and chemical compounds used in manufacturing. Determining if such substances are present on or near project sites is important because exposure to hazardous materials above certain thresholds can result in adverse health effects on humans, as well as harm to plants and wildlife. Due to the fact that these substances have properties that, above certain thresholds, are toxic to humans and/or the ecosystem, multiple regulatory programs in place are designed to minimize the chance for unintended releases and/or exposures to occur. Other programs establish remediation requirements for sites where contamination has occurred. On-Site Sources of Contamination: Each potential development site will be evaluated at the time of development proposal. If sites are determined to contain contaminants, proper remediation will be required. Removal/remediation of contaminated soils will be addressed through standard conditions of approval and site-specific mitigation based on site investigation at the time of construction. With implementation of mitigation measure H-1 which requires site-specific evaluation prior to entitlement approval, impacts will be less than significant. Other Hazards: Portions of Palo Alto are located near areas subject to wildfires; however, the potential housing sites are not located in a fire threatened area, as they are all located in urban areas that do not have an urban/wildland interface. The Palo Alto Airport is located within the City boundaries. The Palo Alto Comprehensive Plan Amendment provides for City staff to review development proposals within the Airport Influence Area to ensure consistency with the guidelines of the Palo Alto Airport Comprehensive Land Use Plan, and when appropriate, refer development proposals to the Santa Clara County Airport Land Use Commission for review and comment. This review process provides for compliance with land use safety considerations on a project-by-project basis. None of the sites are located on a designated evacuation route. The uses proposed consist of residential units. The types of hazardous materials used, stored, or generated will consist of typical household cleaners, solvents, fuel waste oils etc. These materials are well regulated by federal and state laws. Mitigation Measure H-1: Prior to approval of entitlements for any future construction project that includes new residential development, the City shall determine whether the potential exists for site City of Palo Alto Housing Element 2015-2023 Page 30 Initial Study contamination based on City and State records. Where such potential is shown to exist, the City shall direct the applicant to conduct a Phase I Environmental Assessment prepared in accordance with ASTM Standard E-1527-00 (Standard Practice for Environmental Site Assessments), and to submit such report to the Planning Department. Appropriate mitigation may be required by the Planning Department should assessment find the site to be contaminated or otherwise hazardous. Conclusion: The proposed Housing Element update will not result in any hazardous materials impacts due to the nature of the uses proposed. (Less than Significant with Mitigation Incorporated) City of Palo Alto Housing Element 2015-2023 Page 31 Initial Study I. HYDROLOGY AND WATER QUALITY Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Violate any water quality standards or waste discharge requirements? 1, 2 X b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? 1, 2 X c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? 1, 2 X d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? 1, 2 X e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? 1, 2 X f) Otherwise substantially degrade water quality? 1, 2 X g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? 1, 2, 6 X h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? 6 X i) Expose people or structures to a significant risk of loss, injury or death involve flooding, including flooding as a result of the failure of a levee or dam or being located within a 100-year flood hazard area? 1, 2, 6 X j) Inundation by seiche, tsunami, or mudflow? 1, 2 X k) Result in stream bank instability? 1 X City of Palo Alto Housing Element 2015-2023 Page 32 Initial Study DISCUSSION: Hydrology and Flooding: According to the Federal Emergency Management Agency’s (FEMA) Flood Insurance Rate Map (FIRM), the potential project sites are not located within special flood hazard areas subject to inundation by a 100-year flood. Some sites are located in Zone X, areas subject to inundation by a 500-year flood. While there are locations within the City that are susceptible, the identified potential housing sites are not subject to inundation from a seiche, tsunami, or mudflow. Water Quality: The federal Clean Water Act and California’s Porter-Cologne Water Quality Control Act are the primary laws related to water quality. Regulations set forth by the USEPA and the State Water Resources Control Board have been developed to fulfill the requirements of this legislation. USEPA’s regulations include the National Pollutant Discharge Elimination System (NPDES) permit program, which controls sources that discharge pollutants into waters of the United States (e.g., streams, lakes, bays, etc.). These regulations are implemented at the regional level by water quality control boards, which for the Palo Alto area is the San Francisco Bay Regional Water Quality Control Board (RWQCB). Proposed projects are required to comply with Provision C.3 of the City’s NPDES permit and local policies and ordinances regarding urban runoff and water quality. In practical terms, the C.3 requirements seek to reduce water pollution by both reducing the volume of stormwater runoff and the amount of pollutants that are contained within the runoff. The methods used to achieve these objectives vary from site to site, but can include measures such as a reduction in impervious surfaces, onsite detention facilities, biofiltration swales, settlement/debris basins, etc. Drainage and Flooding: None of the potential housing sites is located within a 100-year flood hazard area. Therefore, implementation of the project will not result in people or structures being exposed to any significant flood risk. Stormwater: Construction activities on future development sites could temporarily generate dust, sediment, litter, oil, paint and other pollutants that could contaminate runoff from the site. All future development on Housing Sites will be required to comply with codes that address stormwater runoff control. Development projects are required to implement Best Management Practices (BMPs) for construction activities as specified by the California Storm Water Best Management Practices Handbook (CASQA, 2003) and/or the Manual of Standards for Erosion and Sediment Control Measures (ABAG, 1995). The BMPs include measures guiding the management and operation of construction sites to control and minimize the potential contribution of pollutants to storm runoff from these areas. These measures address procedures for controlling erosion and sedimentation and managing all aspects of the construction process to ensure control of potential water pollution sources. All development projects must comply with all City, state, and federal standards pertaining to stormwater run-off and water quality. Mitigation Measures: None Required City of Palo Alto Housing Element 2015-2023 Page 33 Initial Study Conclusion: The propose project will not result in substantial adverse flooding or drainage impacts. With implementation of Best Management Practices during construction of individual housing projects, water quality impacts will be less than significant. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 34 Initial Study J. LAND USE AND PLANNING Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Physically divide an established community? 1, 2 X b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? 1, 2, 3 X c) Conflict with any applicable habitat conservation plan or natural community conservation plan? 1, 2, 3 X d) Substantially adversely change the type or intensity of existing or planned land use in the area? 1, 2, 3 X e) Be incompatible with adjacent land uses or with the general character of the surrounding area, including density and building height? 1, 2, 3 X f) Conflict with established residential, recreational, educational, religious, or scientific uses of an area? 1, 2, 3 X g) Convert prime farmland, unique farmland, or farmland of statewide importance (farmland) to non-agricultural use? 1, 2, 3 X DISCUSSION: Setting: The potential housing sites are generally located within the University Avenue Downtown area, California Avenue Transit Neighborhood, El Camino Real Mixed Use Transit Corridor, San Antonio Avenue Mixed Use Corridor, South of Forest Area Coordinated Area Plan – Phase 2, and various sites in residential zoning districts with existing commercial uses. General (Comprehensive) Plan Land Use Designation: The Palo Alto Comprehensive Plan designates certain portions of the community for residential use and commercial/residential mixed use, and anticipates new residential growth within these areas. The existing Housing Element adopted in 2013 proposed the addition of up to 2,860 housing units to Palo Alto’s housing stock. During that construction cycle (2007 – 2014), 1,206 housing units were approved, permitted, or issued by 2012. The Housing Element update proposes to accommodate 1,988 housing units, based on ABAG’s RHNA process for Santa Clara County. As of January 1, 2014, Palo Alto had issued building permits City of Palo Alto Housing Element 2015-2023 Page 35 Initial Study for 440 housing units for the 2015-2023 planning period. The housing need for the remainder of the planning period is 1,548 units. The 2010 Census reported a total 28,216 total housing units in Palo Alto. The addition of 1,988 housing units from the 2015-2023 planning period, which will represent an increase of 7 percent, is not considered to be substantial. All of the new development will occur on sites currently planned for residential uses and reflected in regional plans for regional growth. Zoning Designations: The potential project sites are currently zoned for residential, commercial, and mixed use development and could develop with or without implementation of the updated Housing Element. No rezoning of any property is required to support the development of the planned new residential uses. To improve opportunities on existing residential sites, the following action programs are proposed in the updated Housing Element: H2.1.1 PROGRAM To encourage higher density residential development, consider amending the Zoning Code to allow high-density residential in mixed use projects in commercial areas within one-half mile of fixed rail stations and to allow limited exceptions to the 50-foot height limit for Housing Element Sites within one- quarter mile of fixed rail stations. H2.1.3 PROGRAM Amend the Zoning Code to increase the minimum density of the RM-15 Zoning District to at least eight dwelling units per acre consistent with the multi-family land use designation under the Comprehensive Plan. H2.1.4 PROGRAM Amend the Zoning Code to create zoning incentives that encourage the development of smaller, more affordable housing units, including units for seniors, such as reduced parking requirements for units less than 900 square feet and other flexible development standards. H2.2.3 PROGRAM Use coordinated area plans and other tools to develop regulations that support the development of housing above and among commercial uses. H3.1.1 PROGRAM Amend the City’s BMR (below market rate) ordinance to lower the BMR requirement threshold from projects of five or more units to three or more units and to modify the BMR rental section to be consistent with recent court rulings related to inclusionary rental housing. H3.1.7 PROGRAM Ensure that the Zoning Code permits innovative housing types, such as co- housing, and provides flexible development standards that will allow such housing to be built provided the character of the neighborhoods in which they are proposed to be located is maintained. H3.1.12 PROGRAM Amend the Zoning Code to provide additional incentives to developers who provide extremely-low income (ELI) housing units, above and beyond what is required by the Below Market Rate (BMR) program, such as reduced parking requirements for smaller units, reduced landscaping requirements and reduced fees. City of Palo Alto Housing Element 2015-2023 Page 36 Initial Study Land Use Compatibility: Land use conflicts can arise from two basic causes: 1) a new development or land use may cause impacts to persons or the physical environment in the vicinity of the project site or elsewhere or 2) conditions on or near the project site may have impacts on the persons or development introduced onto the site by the new project. Both of these circumstances are aspects of land use compatibility. Potential incompatibility may arise from placing a particular development or land use at an inappropriate location, or from some aspect of the project’s design or scope. Depending on the nature of the impact and its severity, land use compatibility conflict can range from minor irritation and nuisance to potentially significant effects on human health and safety. The discussion below distinguishes between potential impacts from the proposed adoption of the Housing Element upon people and the physical environment and potential impacts from a project’s surroundings upon the project itself. Impacts from a Potential Project: Any proposed housing project could change the character of a project site. The proposed housing sites are located in areas currently developed with residential or mixed commercial/residential uses. The zoning established for these districts provides development standards intended to provide for new development to have similar characteristics (such as mass, bulk, height and density) as the surrounding areas. Proposed development will occur in sites already zoned for housing and will follow the City’s standard procedures for review, including public notice, environmental review, and consideration of design and neighborhood context. The proposed sites could be developed in the future with or without the Housing Element Update. New residential development would be required to comply with all applicable plans and regulations including the Comprehensive Plan and the City’s Municipal Code. All development projects are subject to environmental review as appropriate in compliance with CEQA prior to approval. Project and site-specific concerns will be evaluated and addressed as development projects for specific sites are proposed. Therefore, land use compatibility impacts are not anticipated from any proposed housing project. Impacts to a Potential Project: Any proposed housing project will result in development on either a vacant or underutilized site. The proposed sites are expected to be developed in the future with or without the Housing Element Update. Because new development will comply with City codes and design regulations, proposed development will be compatible with both the existing and planned land uses. Some of the housing sites are adjacent to major roadways and public transit corridors. Appropriate analysis regarding noise and vibration at the time of a development proposal will be required. No on-going land use conflicts with adjacent uses are anticipated. Mitigation Measures: None Required Conclusion: The adoption of the Housing Element and subsequent development projects will not result in significant, adverse land use impacts. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 37 Initial Study K. MINERAL RESOURCES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? 1, 2 X b) Result in the loss of availability of a locally- important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? 1, 2 X DISCUSSION: The City of Palo Alto has been classified by the California Department of Conservation (DOC), California Geological Survey (CGS) as a Mineral Resource Zone 1 (MRZ-1). This designation signifies that there are no aggregate resources in the area. The CGS has not classified the City for other resources. There is no indication in the draft Comprehensive Plan Amendment that there are locally or regionally valuable mineral resources within the City of Palo Alto. Therefore, adoption of the Housing Element and subsequent residential development will not result in impacts to mineral resources. Mitigation Measures: None Required. Conclusion: The proposed adoption of the Housing Element will not result in impacts to known mineral resources. (No Impact) City of Palo Alto Housing Element 2015-2023 Page 38 Initial Study L. NOISE Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? 1, 2, 13 X b) Exposure of persons to or generation of excessive ground borne vibrations or ground borne noise levels? 1, 2, 13 X c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? 1, 2, 13 X d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? 1, 2, 13 X e) For a project located within an airport land use plan or, where such a plan has not been adopted, would the project expose people residing or working in the project area to excessive noise levels? 1 X f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? 1 X g) Cause the average 24 hour noise level (Ldn) to increase by 5.0 decibels (dB) or more in an existing residential area, even if the Ldn would remain below 60 dB? 1, 2 X h) Cause the Ldn to increase by 3.0 dB or more in an existing residential area, thereby causing the Ldn in the area to exceed 60 dB? 1, 2 X i) Cause an increase of 3.0 dB or more in an existing residential area where the Ldn currently exceeds 60 dB? 1 X j) Result in indoor noise levels for residential development to exceed an Ldn of 45 dB? 1 X k) Result in instantaneous noise levels of greater than 50 dB in bedrooms or 55 dB in other rooms in areas with an exterior Ldn of 60 dB or greater? 1 X l) Generate construction noise exceeding the daytime background Leq at sensitive receptors by 10 dBA or more? 1, 13 X City of Palo Alto Housing Element 2015-2023 Page 39 Initial Study DISCUSSION: Fundamentals of Sound and Environmental Noise Noise can be defined as unwanted sound. Sound (and therefore noise) consists of energy waves that people receive and interpret. Sound pressure levels are described in logarithmic units of ratios of sound pressures to a reference pressure, squared. These units are called bels. In order to provide a finer description of sound, a bel is subdivided into ten decibels, abbreviated dB. To account for the range of sound that human hearing perceives, a modified scale is utilized known as the A-weighted decibel (dBA). Since decibels are logarithmic units, sound pressure levels cannot be added or subtracted by ordinary arithmetic means. For example, if one automobile produces a sound pressure level of 70 dBA when it passes an observer, two cars passing simultaneously would not produce 140 dB. In fact, they would combine to produce 73 dBA. This same principle can be applied to other traffic quantities as well. In other words, doubling the traffic volume on a street or the speed of the traffic will increase the traffic noise level by 3 dBA. Conversely, halving the traffic volume or speed will reduce the traffic noise level by 3 dBA. A 3 dBA change in sound is the level where humans generally notice a barely perceptible change in sound and a 5 dBA change is generally readily perceptible.4 Noise consists of pitch, loudness, and duration; therefore, a variety of methods for measuring noise has been developed. According to the California General Plan Guidelines for Noise Elements, the following are common metrics for measuring noise:5 LEQ (Equivalent Energy Noise Level): The sound level corresponding to a steady-state sound level containing the same total energy as a time-varying signal over given sample periods. LEQ is typically computed over 1-, 8-, and 24-hour sample periods. CNEL (Community Noise Equivalent Level): The average equivalent A-weighted sound level during a 24-hour day, obtained after addition of five decibels to sound levels in the evening from 7:00 P.M. to 10:00 P.M. and after addition of ten decibels to sound levels in the night from 10:00 P.M. to 7:00 A.M.. LDN (Day-Night Average Level): The average equivalent A-weighted sound level during a 24- hour day, obtained after the addition of ten decibels to sound levels in the night after 10:00 P.M. and before 7:00 A.M.. CNEL and LDN are utilized for describing ambient noise levels because they account for all noise sources over an extended period of time and account for the heightened sensitivity of people to noise during the night. LEQ is better utilized for describing specific and consistent sources because of the shorter reference period. Fundamentals of Environmental Groundborne Vibration Vibration is sound radiated through the ground. The rumbling sound caused by the vibration of room surfaces is called groundborne noise. The ground motion caused by vibration is measured as particle velocity in inches per second, and in the U.S. is referenced as vibration decibels (VdB). 4 California Department of Transportation. Basics of Highway Noise: Technical Noise Supplement. November 2009. 5 California Governor’s Office of Planning and Research. General Plan Guidelines. 2003. City of Palo Alto Housing Element 2015-2023 Page 40 Initial Study The background vibration velocity level in residential and educational areas is usually around 50 VdB. The vibration velocity level threshold of perception for humans is approximately 65 VdB. A vibration velocity level of 75 VdB is the approximately dividing line between barely perceptible and distinctly perceptible levels for many people. Sources within buildings such as operation of mechanical equipment, movement of people, or the slamming of doors causes most perceptible indoor vibration. Typical outdoor sources of perceptible groundborne vibration are construction equipment, steel- wheeled trains, and traffic on rough roads. If a roadway is smooth, the groundborne vibration from traffic is rarely perceptible. The range of interest is from approximately 50 VdB, which is the typical background vibration velocity level, and 100 VdB, which is the general threshold where minor damage can occur in fragile buildings. The general human response to different levels of groundborne vibration velocity levels is described in Table 2 (Human Reaction to Vibration). Table 2 Human Reaction to Vibration Vibration Velocity Level Human Reaction 65 VdB Approximate threshold of perception for many people. 75 VdB Approximate dividing line between barely perceptible and distinctly perceptible. Many people find that transportation-related vibration at this level in unacceptable. 85 VdB Vibration acceptable only if there are an infrequent number of events per day. Source: Federal Transit Administration, Transit Noise and Vibration Impact Assessment, May 2006 Vibration is the movement of mass over time. It is described in terms of frequency and amplitude and unlike sound; there is no standard way of measuring and reporting amplitude. Vibration can be described in units of velocity (inches per second) or discussed in dB units to compress the range of numbers required to describe vibration. Vibration impacts to buildings are generally discussed in terms of peak particle velocity (PPV) that describes particle movement over time (in terms of physical displacement of mass). For purposes of this analysis, PPV will be used to describe all vibration for ease of reading and comparison. Vibration can impact people, structures, and sensitive equipment. The primary concern related to vibration and people is the potential to annoy those working and residing in the area. Vibration with high enough amplitudes can damage structures (such as crack plaster or destroy windows). Groundborne vibration can also disrupt the use of sensitive medical and scientific instruments such as electron microscopes. Common sources of vibration within communities include construction activities and railroads. Operation of the proposed facility does not include uses that cause vibration and there are no railroads in the project vicinity. Groundborne vibration generated by construction projects is usually highest during pile driving, rock blasting, soil compacting, jack-hammering, and demolition-related activities. Next to pile driving, grading activity has the greatest potential for vibration impacts if large bulldozers or large trucks are used. Residential units, once constructed, do not utilize machinery that would generate substantial amounts of vibration. However, the construction of future potential housing developments could utilize machinery that would generate substantial amounts of ground vibration because multiple-lot City of Palo Alto Housing Element 2015-2023 Page 41 Initial Study housing developments generally require mass grading. Construction of future development is not likely to require rock blasting considering the built-out character of the area or piling driving because the area is not subject to liquefaction hazards; however, jack hammering will also likely be required for demolition activities. Table 3 (Common Construction Vibration) summarizes vibration levels from common construction equipment. Impacts to structures can occur from 0.08 PPV to 2.00 PPV depending on the duration of the vibration and the age of the structure. Similarly, human annoyance to vibration can occur from 0.01 PPV to 2.00 PPV depending on the duration. Table 1 Common Construction Vibration Equipment PPV (in/sec at 25 ft.) Crack-and-Seat Operations 2.400 Vibratory Roller 0.210 Large Bulldozer 0.089 Caisson Drilling 0.089 Loaded Trucks 0.076 Jackhammer 0.035 Small Bulldozer 0.003 Source: California Department of Transportation 2004 The City of Palo Alto is highly impacted by noise from major traffic arteries, including the Bayshore Freeway (SR 101), Southern Pacific Railroad (including Caltrain service), El Camino Real and the Junipero Serra Freeway (SR 280), Palo Alto Airport of Santa Clara County, and other major traffic arteries throughout the community. Residential and public facilities (schools, parks, hospitals) land uses adjacent to the City’s major traffic arteries are highly impacted by noise with the area adjacent to Bayshore Freeway being impacted to the greatest degree. Noise in these areas immediately adjacent to the arterials may be unacceptable from both a hearing conservation and land use compatibility standpoint. Noise levels in commercial areas are generally acceptable except in those areas immediately adjacent to major traffic arteries The Palo Alto Comprehensive Plan Amendment provides for City staff to review development proposals within the Airport Influence Area to ensure consistency with the noise regulations and guidelines of the Palo Alto Comprehensive Land Use Plan. Staff reviews on an individual project basis will provide for compliance with noise/land use standards; impacts will be less than significant. Noise Exposure Impacts to a Potential Project: Many of the potential housing sites are located near the railroad tracks serving Caltrain commuter rail service and the Southern Pacific Railroad, San Antonio Avenue mixed use and transit corridor, and near El Camino Real, a major transportation corridor. Existing noise levels at these locations may exceed noise standards considered suitable for outdoor activities associated with residential development. State building code insulation standards require that noise insulation be provided to achieve indoor noise levels of 45 CNEL or lower. Although noise levels for an individual project may exceed the standards for outdoor public uses, project design can work to locate any areas for outdoor activities, such as play areas and common open City of Palo Alto Housing Element 2015-2023 Page 42 Initial Study space, away from the noise source or to shield those uses with walls. With appropriate project-level mitigation, it is not expected that a project will expose people to high levels of noise for any length of time that will cause a significant impact. Noise Impacts from Construction: Construction of individual housing projects will generate noise, and will temporarily increase noise levels at adjacent land uses. The significance of noise impacts during construction depends on the noise generated by various pieces of construction equipment, the timing and duration of noise generating activities, and the distance between construction noise sources and noise sensitive receptors. Construction activities generate considerable amounts of noise, especially during the construction of project infrastructure when heavy equipment is used. Typical hourly average construction generated noise levels are about 75 dBA to 80 dBA measured at a distance of 100 feet from the source during busy construction periods (e.g., earth moving equipment, impact tools, etc.). Construction generated noise levels drop off at a rate of about six dBA per doubling of distance between the source and receptor. Construction noise impacts are more significant when construction occurs during noise-sensitive times of the day (early morning, evening, or nighttime hours near residential uses), the construction occurs in areas immediately adjoining noise sensitive land uses, or when construction lasts extended periods of time. Construction activities could result in annoyances to existing uses adjacent to the project site. All development, including construction activities, must comply with the City’s Noise Ordinance (PAMC Chapter 9.10), which restricts the timing and overall noise levels associated with construction activity. Short-term temporary construction noise that complies with the Noise Ordinance will result in impacts that are expected to be less than significant. The proposed Housing Sites are located in established residential and mixed use commercial/residential districts near major transportation corridors, including railroads, El Camino Real, and San Antonio Avenue; the existing noise conditions are not quiet and with compliance with the City’s Noise Ordinance, the temporary construction activities will not create any new significant noise impacts. Mitigation Measures: None Required Conclusion: Because future projects will be required to comply with the City’s Noise Ordinance, possible noise impacts will be reduced to a less-than-significant level. (Less than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 43 Initial Study M. POPULATION AND HOUSING Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? 1, 2 X b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? 1, 2 X c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? 1, 2 X d) Create a substantial imbalance between employed residents and jobs? 1, 2 X e) Cumulatively exceed regional or local population projections? 1, 2 X DISCUSSION: Implementation of the Housing Element will allow for the development of up to 1,988 housing units on designated sites. Palo Alto currently has an imbalance between employed residents and jobs; there are 80,000 jobs and 30,404 employed residents, which results in 2.63 jobs per employed resident. According to the U.S. Census, the population of Palo Alto was 66,642 in 2013. ABAG’s 2013 Projections and Priorities Report projects that the population of Palo Alto will increase to approximately 73,700 people by the year 2025. Based on an average household size of 2.44 persons, the 1,988 additional units proposed in the Housing Element will accommodate the anticipated population growth. The additional housing in Palo Alto will induce population growth in the City and alter the City’s jobs/housing ratio, resulting in a jobs/housing ratio closer to 1.0, which will lessen the imbalance between employed residents and jobs, and will be a less than significant impact. A potential housing development project is not likely to displace housing or residents since the majority of identified housing sites are currently vacant or developed with underutilized commercial buildings. Mitigation Measures: None Required Conclusion: The proposed adoption of the Housing Element will not result in population or housing impacts. The potential impact on the jobs/housing balance is a positive one. (No Impact) City of Palo Alto Housing Element 2015-2023 Page 44 Initial Study N. PUBLIC SERVICES Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: a) Fire protection? 1 X b) Police protection? 1 X c) Schools? 1 X d) Parks? 1 X e) Other public facilities? 1 X DISCUSSION: The City of Palo Alto is a built-out community that can only add housing through infill development. Implementation of the Housing Element could result in an increase in the population of Palo Alto by approximately 4,851 persons (1,988 housing units at average household side 2.44 persons per housing unit, per the State Department of Finance). An increase in housing development will not adversely impact Police and Fire response times since Palo Alto is a built-out community, and new development will be in existing developed areas. The City of Palo Alto Police and Fire Departments will review proposed development on the identified sites prior to project approval to ensure that measures are incorporated into design and construction to provide for personal safety. The City of Palo Alto includes 29 neighborhood and district parks totaling approximately 190 acres. Potential projects could generate population growth in certain areas, resulting in the increased use of public park facilities in the City by new residents. The City aims to use the National Recreation and Park Association Standards as a guideline for locating and developing new parks. This requires the City and developers to meet the standard of providing two acres of developed parkland per 1,000 residents. Currently, the City is providing 2.85 acres of developed parkland per 1,000 residents which exceeds its requirements. In addition, Palo Alto’s Comprehensive Plan indicates the City will continue its efforts in improving park and recreational facilities in various goals and policies listed in the Community Services chapter. Potential projects could generate new students, resulting in an increase in school population or result in the need for new or modified school facilities. Palo Alto Unified School District (PAUSD) collects school impact fees on new residential and commercial construction within district boundaries. Any impact on the provision of school services is mitigated through the payment of development impact City of Palo Alto Housing Element 2015-2023 Page 45 Initial Study fees pursuant to the Leroy F. Green School Facilities Act. With payment of required fees, impact will be less than significant. The City of Palo Alto does not issue building permits for a project until PAUSD has certified that school impact fees have been paid. Therefore, any proposed development will contribute through payment of fees toward future construction of facilities to address the needs of increased school population. Mitigation Measures: None Required Conclusion: Implementation of the Housing Element and providing the potential for new housing units will not result in significant impacts to public facilities. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 46 Initial Study O. RECREATION Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? 1, 2 X b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? 1, 2 X DISCUSSION: The City of Palo Alto owns and operates 29 neighborhood and district parks that total approximately 190 acres. Neighborhood parks include small playgrounds for children and/or grass and landscape areas for playing or sitting, and a mix of active and passive recreational areas. District parks provide playing fields, picnic grounds, and community centers. The City’s recreational system is augmented by local school facilities, which are available to the general public. The City aims to use the National Recreation and Park Association Standards as a guideline for locating and developing new parks. This requires the City and developers to meet the standard of providing two acres of developed parkland per 1,000 residents. Currently, the City is providing 2.85 acres of developed parkland per 1,000 residents which exceeds its requirements. A Parks, Trail, Open Space, and Recreation Master Plan (Parks Master Plan) is currently being drafted by the City. The Parks Master Plan provides necessary analysis and review of Palo Alto’s parks and recreation system for long term impacts and needs and provides guidance regarding future renovations and capital improvement needs for parks, trails, open space, and recreation facilities. Additional housing could increase usage of nearby parks and recreation facilities. However, it is expected that the increase in population from any new housing units can be accommodated by the existing park and recreation facilities in Palo Alto. None of the proposed housing sites will displace any recreation facilities and will not have an impact on these facilities such that adverse physical effects would result. Mitigation Measures: None Required Conclusion: Implementation of the Housing Element will not result in significant impacts to parks and recreational facilities. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 47 Initial Study P. TRANSPORTATION AND TRAFFIC Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Exceed the capacity of the existing circulation system, based on an applicable measure of effectiveness (as designated in a general plan policy, ordinance, etc.), taking into account all relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? 1 X b) Conflict with an applicable congestion management program, including but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? 1 X c) Result in change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? 1 X d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? 1 X e) Result in inadequate emergency access? 1 X f) Result in inadequate parking capacity that impacts traffic circulation and air quality? 1 X g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., pedestrian, transit & bicycle facilities)? 1, 2, 5, 6 X h) Cause a local (City of Palo Alto) intersection to deteriorate below Level of Service (LOS) D and cause an increase in the average stopped delay for the critical movements by four seconds or more and the critical volume/capacity ratio (V/C) value to increase by 0.01 or more? 1, 5, 6 X i) Cause a local intersection already operating at LOS E or F to deteriorate in the average stopped delay for the critical movements by four seconds or more? 1, 5, 6 X City of Palo Alto Housing Element 2015-2023 Page 48 Initial Study Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact j) Cause a regional intersection to deteriorate from an LOS E or better to LOS F or cause critical movement delay at such an intersection already operating at LOS F to increase by four seconds or more and the critical V/C value to increase by 0.01 or more? 1, 5, 6 X k) Cause a freeway segment to operate at LOS F or contribute traffic in excess of 1% of segment capacity to a freeway segment already operating at LOS F? 1 X l) Cause any change in traffic that would increase the Traffic Infusion on Residential Environment (TIRE) index by 0.1 or more? 1, 5, 6 X m) Cause queuing impacts based on a comparative analysis between the design queue length and the available queue storage capacity? Queuing impacts include, but are not limited to, spillback queues at project access locations; queues at turn lanes at intersections that block through traffic; queues at lane drops; queues at one intersection that extend back to impact other intersections, and spillback queues on ramps. 1, 5, 6 X n) Impede the development or function of planned pedestrian or bicycle facilities? 1 X o) Impede the operation of a transit system as a result of congestion? 1 X p) Create an operational safety hazard? 1 X DISCUSSION: Existing Roadway Network: The potential project sites are located along or near El Camino Real, California Avenue, San Antonio Avenue, and University Avenue, as well as smaller collectors and minor arterial streets. Existing Transit Service: Transit service in the area includes local bus services provided by the Santa Clara Valley Transportation Authority (VTA), San Mateo County Transit District (SamTrans), train service from the Caltrain commuter rail line, as well as the Dumbarton Express, providing bus service from downtown Palo Alto across the Dumbarton Bridge to the Union City BART station, and the Stanford University Marguerite Shuttle between the Stanford campus and Palo Alto Caltrain station and Downtown Palo Alto. City of Palo Alto Housing Element 2015-2023 Page 49 Initial Study Existing Pedestrian and Bicycle Facilities: Pedestrian facilities include sidewalks, crosswalks, and pedestrian traffic signals. Pedestrian facilities are around all of the proposed housing sites. Bicycle facilities consist of dedicated paths (Class I), painted lanes (Class II), and signed routes (Class III). Bicycle paths are paved trails that are separate from roadways. Bicycle lanes are lanes on roadways designated for bicycle use by striping, pavement legends, and signs. Bicycle routes are roadways designated for bicycle use by signs only. Transportation Impacts: A proposed housing project could generate new trips to a site and in the area, depending on the previous use of the site. Traffic impacts will be evaluated at the project proposal stage. However, many proposed Opportunity Sites are located in public transit-oriented districts to encourage public transit usage and reduce individual vehicle trips. The project trip generation estimates are based on trip rates defined by the Institute of Transportation Engineers (ITE) Trip Generation (9th Edition). The land use code for “Residential Condominium/Townhouse (230)” was used to define the land use of the proposed Housing Element. Gross project trip generation (absent any discount of trips associated with existing uses) is summarized in Table 4 (Housing Element Trip Generation Summary) below. Table 4 Housing Element Trip Generation Summary AM Peak Hour PM Peak Hour Daily Housing Element Trips 875 1,034 10,340 Source: MIG | Hogle Ireland. July 2014 Based on the trip generations, new development on sites identified in the Housing Element is estimated to generate a total of 875 AM peak hour trips and 1,034 PM peak hour trips. Assuming that the PM peak hour trips are ten percent of daily trips for the area, the total daily trips generation from the Housing Element is 10,340. Sites identified in the Housing Element are located throughout the City, and as the above referenced theoretical trips would be spread throughout the City. Furthermore, because Housing Element sites already designated in the Comprehensive Plan for housing, trips associated with new housing development have already been analyzed and accounted for in association with the adopted land use plan. A chapter of the Comprehensive Plan (a policy document), the Housing Element addresses housing need in the City; no actual development or rezoning/re-designation of land is proposed as part of the Housing Element. Therefore, its adoption would not, in itself, generate new traffic. In addition, for future individual development projects, the City will determine if a traffic impact analysis is required as part of the City’s standard environmental review process and will determine potential future project-specific impacts to the circulation system. (The Housing Element itself, a policy document with no associated land use/zoning changes, will not result in any new impacts on the circulation system.) With implementation of mitigation measure T-1 which requires site-specific evaluation prior to entitlement approval, impacts will be less than significant. City of Palo Alto Housing Element 2015-2023 Page 50 Initial Study Infill housing development could potentially increase ridership of public transit, especially at those sites located near transit opportunities. Most of the sites are located near the two Caltrain stations (University and California Avenues) or along El Camino Real, a primary transit route. New projects will be required to install or upgrade pedestrian or bicycle facilities, where appropriate and based on City plans. These requirements will be evaluated at the project proposal stage. The potential housing sites are located along or near major transportation corridors. Emergency access will be provided to each housing site via existing or proposed public right-of-way. Emergency service providers will evaluate new projects at the project proposal stage. Mitigation Measure T-1: Prior to entitlement approval for new residential development projects, preparation of site-specific assessment of transportation and traffic impacts shall be conducted per the City’s standard environmental review process, as applicable. Appropriate mitigation shall be required by the Planning Department should assessment find project impacts. Conclusion: Any proposed project will be evaluated for transportation impacts at the time of submittal. Implementation of the Housing Element will not result in significant transportation impacts. (Potentially Significant Unless Mitigation Incorporated) City of Palo Alto Housing Element 2015-2023 Page 51 Initial Study Q. UTILITIES AND SERVICE SYSTEMS Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? 1 X b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? 1 X c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? 1 X d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? 1 X e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has inadequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? 1 X f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? 1 X g) Comply with federal, state, and local statutes and regulations related to solid waste? 1 X h) Result in a substantial physical deterioration of a public facility due to increased use as a result of the project? 1 X DISCUSSION: The City of Palo Alto Utilities Department provides water and sewer services, as well as gas and electric service. The City also provides refuse service and manages the local storm drain system through the Public Works Department. Any proposed housing project will be served by existing utilities in place in the area and will be required to provide appropriately sized and designed lateral connections. Also, as may be required by the Capital Improvement Plan or other facilities plans, fair-share fees for backbone system improvements will be paid. The City of Palo Alto is substantially built out, and public facilities in place are adequate to serve existing and proposed development identified in the Housing Element. City of Palo Alto Housing Element 2015-2023 Page 52 Initial Study The Palo Alto Urban Water Management Plan indicates the total water consumption in the City will remain somewhat consistent from its current levels of 11,236 acre feet (AF) per year in 2010 to 15,969 AF per year by the end of 2030. This forecast includes an expected 17% increase in total number of population growth.13 Most of the housing sites are now developed with other uses, and it is anticipated that there will be no significant increase in the demand on existing utilities and service systems or impacts to these services. Mitigation Measures: None Required Conclusion: Implementation of the Housing Element will not exceed the capacity of existing utilities and service systems that serve the community. (Less Than Significant Impact) City of Palo Alto Housing Element 2015-2023 Page 53 Initial Study R. MANDATORY FINDINGS OF SIGNIFICANCE Issues and Supporting Information Resources Would the project: Sources Potentially Significant Issues Potentially Significant Unless Mitigation Incorporated Less Than Significant Impact No Impact a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? 1 - 13 X b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? 1 - 13 X c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 1 - 13 X DISCUSSION: The proposed project involves the adoption of the City’s Comprehensive Plan Housing Element, which guides future housing development through policy measures. No specific development projects would occur as a result of the Housing Element; and no redesignation/rezoning of land is proposed. Therefore, adoption of the Housing Element, in itself, would not result in cumulative impacts. Furthermore, cumulative impacts associated with future housing development have been evaluated at a program level in the 1998 Comprehensive Plan EIR, since no changes to land use designations are proposed. Since the Housing Element is consistent with the Comprehensive Plan; therefore, adopting and implementing the Housing Element would not create new cumulative impacts or increase the significance of cumulative impacts identified in the Comprehensive Plan EIR. With the implementation of policies in place and avoidance measures required by the City of Palo Alto and other agencies as described in the specific sections of this report (refer to Environmental Checklist and Discussion of Impacts), on pages 13 through 52 of this Initial Study, implementation of the Housing Element will not result in significant environmental impacts. City of Palo Alto Housing Element 2015-2023 Page 54 Initial Study The results of the preceding analysis indicate that the proposed project will have less than significant impacts upon sensitive biological, historical, archaeological, paleontological resources, cumulative impacts, or adverse effects on human beings. Since the project will not authorize any development plan, redevelopment of any existing sites, or construction of new infrastructure, and will not change existing City land use policy regarding locations or intensities of development, it will not result in any significant impacts. Mitigation Measures: None required. Conclusion: Each potential future housing development project will be evaluated with regard to the mandatory findings of significance. The implementation of the Housing Element is not expected to have impacts that are cumulatively considerable. (Less Than Significant Cumulative Impact) City of Palo Alto Housing Element 2015-2023 Page 55 Initial Study SOURCE REFERENCES 1. CEQA Guidelines – Environmental Thresholds in Appendix G Palo Alto Comprehensive Plan, 1998-2010 2. Palo Alto Municipal Code, Title 18 – Zoning Ordinance 3. Bay Area Air Quality Management District, CEQA Guidelines, updated May, 2012 4. California Department of Conservation, Geologic Map of the San Francisco-San Jose Quadrangle, 1990. 5. Federal Emergency Management Agency, Flood Insurance Rate Map, Community Panel Nos. 06085 C0010H, C0015H, C0016H, C0017H, C0018H, C0019H, C0030H, C0036H, C0038H, C0180H and C0185H, May 18, 2009 6. Association of Bay Area Governments, Dam Failure Inundation Hazard Map for Palo Alto/Stanford, 1995. http://www.abag.ca.gov/cgi-bin/pickdamx.pl 7. Association of Bay Area Governments, Projections 2013, December 2013 8. Association of Bay Area Governments (ABAG), Wildfire Hazard Maps and Information, November 2004 9. Alquist-Priolo Earthquake Fault Zoning Map 10. Palo Alto Historic Resources Inventory 11. State of California, Seismic Hazard Zones Palo Alto Quadrangle Official Map, October 18, 2006 12. Palo Alto Municipal Code, Section 9.10 – Noise Ordinance 13. City of Palo Alto Utilities, 2010 Urban Water Management Plan, June 2011 City of Palo Alto Housing Element 2015-2023 Page 56 Initial Study DETERMINATION On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. X I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a “potentially significant impact” or “potentially significant unless mitigated” impact on the environment, but at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. ___________________________________ _________________________ Tim Wong, Housing Coordinator Date City of Palo Alto City of Palo Alto Housing Element 2015-2023 Page 57 Initial Study This Page Intentionally Left Blank City of Palo Alto Housing Element 2015-2023 Page 58 Initial Study SUMMARY OF MITIGATION MEASURES H-1 Prior to approval of entitlements for any future construction project that includes new residential development, the City shall determine whether the potential exists for site contamination based on City and State records. Where such potential is shown to exist, the City shall direct the applicant to conduct a Phase I Environmental Assessment prepared in accordance with ASTM Standard E- 1527-00 (Standard Practice for Environmental Site Assessments), and to submit such report to the Planning Department. Appropriate mitigation shall be required by the Planning Department should assessment find the site to be contaminated or otherwise hazardous. T-1 Prior to entitlement approval for new residential development projects, preparation of site-specific assessment of transportation and traffic impacts shall be conducted per the City’s standard environmental review process, as applicable. Appropriate mitigation shall be required by the Planning Department should assessment find project impacts. City of Palo Alto Housing Element 2015-2023 Page 59 Initial Study 1 2015-2023 Housing Element Mitigation Monitoring and Reporting Plan Mitigation Measures Responsibility Timing 1. Prior to approval of entitlements for any future construction project that includes new residential development, the City shall determine whether the potential exists for site contamination based on City and State records. Where such potential is shown to exist, the City shall direct the applicant to conduct a Phase I Environmental Assessment prepared in accordance with ASTM Standard E-1527-00 (Standard Practice for Environmental Site Assessments), and to submit such report to the Planning Department. Appropriate mitigation shall be required by the Planning Department should assessment find the site to be contaminated or otherwise hazardous. City of Palo Alto Department of Planning and Community Environment If necessary, Phase I Report to be submitted and reviewed during permit application review 2. Prior to entitlement approval for new residential development projects, preparation of site- specific assessment of transportation and traffic impacts shall be conducted per the City’s standard environmental review process, as applicable. Appropriate mitigation shall be required by the Planning Department should assessment find project impacts. City of Palo Alto Department of Planning and Community Environment If necessary, Traffic Study to be submitted and reviewed during permit application review ATTACHMENT E ATTACHMENT F Mr. Tim Wong/City of Palo Alto October 7, 2014 Page2 be supported with appropriate documentation. 3. Average Daily Traffic, AM and PM peak hour volumes and levels of service (LOS) on all roadways where potentially significant impacts may occur, including crossroads and controlled intersections for existing, existing plus project, cumulative and cumulative plus project scenarios. Calculation of cumulative traffic volumes should consider all traffic- generating developments, both existing and future, that would affect study area roadways and intersections. The analysis should clearly identify the project's contribution to area traffic and any degradation to existing and cumulative LOS. Caltrans' LOS threshold, which is the transition between LOS C and D, and is explained in detail in the TIS Guide, should be applied to all State facilities. 4. Schematic illustration of traffic conditions including the project site and study area roadways, trip distribution percentages and volumes as well as intersection geometrics (i.e., lane ~, configurations) for the scenarios described above. 5. The project site building potential as identified in the General Plan. The project's consistency with both the Circulation Element of the General Plan and the Congestion Management Agency's Congestion Management Plan should be evaluated. 6. Identification of mitigation for any roadway mainline section or intersection with insufficient capacity to maintain an acceptable LOS with the addition of project-related and/or cumulative traffic. Lead Agency As the lead agency, the City of Palo Alto (City) is responsible for all project mitigation, including any needed improvements to State highways. The project's fair share contribution, financing, scheduling, implementation responsibilities and lead agency monitoring should be fully discussed for all proposed mitigation measures. Vehicle Trip Reduction Caltrans commends the City for its ongoing progress in locating needed housing, jobs and neighborhood services near major mass transit centers, with connecting streets configured to facilitate walking and biking. By doing so, the City promotes mass transit use and reducing regional vehicle miles traveled and traffic impacts on the State highways. We also commend and encourage the City to continue developing Travel Demand Management (TDM) policies to promote usage of nearby public transit lines and reduce vehicle trips on the State Highway System. These policies could include further lowering parking ratios, car-sharing programs, bicycle parking and showers for residents, and providing transit passes to residents, among others. Doing so will encourage active transportation, reduce vehicle miles traveled and lessen future traffic impacts on the state highways. We recommend that the City refer to, "Reforming Parking Policies to Support Smart Growth," an MTC study funded by the Department, for sample parking ratios and strategies that support compact growth and Transit Oriented Development "Provide a safe, sustainable, integrated and efficient transportation system to enhance California's economy and livability" Mr. Tim Wong/City of Palo Alto October 7, 2014 Page 3 (http://www.mtc.ca.gov/planning/smart_growth/parking/parking_seminar/Toolbox- Handbook. pdf). In addition, please ensure secondary impacts on pedestrians and bicyclists resulting from any traffic impact mitigation measures are analyzed. The analysis should describe any pedestrian and bicycle mitigation measures and safety countermeasures that would in turn be needed as a means of maintaining and improving access to transit facilities and reducing vehicle trips and traffic impacts on State highways. CEQA Streamlining Local jurisdictions and land use development infill project proponents should and are encouraged to coordinate and consult early with Caltrans District Local Development-Intergovernmental Review (LD-IGR) office on any land use proposal that is within 500 feet of state transportation facilities to enable consideration of the potential site specific drainage, visual, access, and operational safety impacts. Even if cumulative impacts were addressed in a prior environmental clearance document there may be direct impacts of concern with this proposal. A CEQA exemption is still an adequate environmental clearance as long as any necessary mitigation features are included as part of the project. Encroachment Permit Please be advised that any work or traffic control that en~roaches onto the State ROW requires an encroachment permit that is issued by Caltrans. To apply, a completed encroachment permit application, environmental documentation, and five ( 5) sets of plans clearly indicating State ROW must be submitted to: David Salladay, District Office Chief, Office of Permits, California Department of Transportation, District 4, P.O. Box 23660, Oakland, CA 94623-0660. Traffic- related mitigation measures should be incorporated into the construction plans prior to the encroachment permit process. See this website for more information: http://www.dot.ca.gov/hq/traffops/ developserv/permits. Should you have any questions regarding this letter, please contact Brian Brandert of my staff at (510) 286-5505 or brian.brandert@dot.ca.gov. Sincerely, ~v ERIK ALM, AICP District Branch Chief Local Development -Intergovernmental Review c: Scott Morgan, State Clearinghouse "Provide a safe, sustainable, integrated and efficient transportation system to enhance California's economy and livability" STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION 320 WEST 4TH STREET, SUITE 500 LOS ANGELES, CA 90013 (213) 576-7083 October 7, 2014 Mr. Tim Wong City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Dear Mr. Wong: EDMUND G. BROWN JR., Governor SUBJECT: SCH 2014092020 Palo Alto (Santa Clara) Housing Element 2015-2012 -DMND The California Public Utilities Commission (Commission) has jurisdiction over the safety of highway-rail crossings (crossings) in California. The California Public Utilities Code requires Commission approval for the construction or alteration of crossings and grants the Commission exclusive power on the design, alteration, and closure of crossings in California. The Commission Rail Crossings Engineering Branch (RCEB) is in receipt of the draft Mitigated Negative Declaration (DMND) for the proposed City of Palo Alto (City) Housing Element 2015-2023 Project. The project area includes active railroad tracks. RCEB recommends that the City add language to the Housing Element so that any future development adjacent to or near the railroad/light rail right-of-way (ROW) is planned with the safety of the rail corridor in mind. New developments may increase traffic volumes not only on streets and at intersections, but also at at-grade crossings. This includes considering pedestrian circulation patterns or destinations with respect to railroad ROW and compliance with the Americans with Disabilities Act. Mitigation measures to consider include, but are not limited to, the planning for grade separations for major thoroughfares, improvements to existing at-grade crossings due to increase in traffic volumes, and continuous vandal resistant fencing or other appropriate barriers to limit the access of trespassers onto the railroad ROW. If you have any questions in this matter, please contact me at (213) 576-7076, ykc@cpuc.ca.gov. Sincerely, ~ ~~-·:,;~ --;::;7/ --/-~ /~-- Ken Chiang, P.E. Utilities Engineer Rail. Crossings Engineering Branch Safety and Enforcement Division C: State Clearinghouse Attachment G Public Comment Carnahan, David From: Sent: To: Subject: Attachments: QIJY ®f PALO ALTO. CA €HY G'LERK'S Or:PICE Ellen Forbes <eforbes820@att.net> 14 NOV -3 AH If!: 45 Monday, November 03, 2014 10:43 AM Council, City LWVPA letter for Nov. 10 Council Packet Let to City Co re Housing Element deadline.doc Thank you for getting this letter concerning the City's Housing Element to the Council members for their Nov. 10 meeting. Regards, Ellen Forbes, President League of Women Voters of Palo Alto City of Palo Alto (ID # 5170) City Council Staff Report Report Type: Action Items Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: Letter of Intent - Junior Museum & Zoo Title: Approval of Letter of Intent for Construction and Operation of the New Junior Museum and Zoo Building by the Friends of the Junior Museum and Zoo in 2019 From: City Manager Lead Department: Community Services Recommendation Staff recommends a) Council’s approval of a Letter of Intent (Attachment A), by which the City and the Friends of the Palo Alto Junior Museum and Zoo (JMZ) will collaborate to develop agreements for the building of a new and enhanced Junior Museum and Zoo facility, and the operation of the new facility for up to 40 years. b) Staff seeks the Council’s guidance and approval on the guiding negotiation principles, noted on page 4 below. Background The Friends of the Palo Alto Junior Museum and Zoo (Friends) have played an integral role in the support and operation of the Palo Alto Junior Museum and Zoo (JMZ) since 1962. From 1962 through 1990, the Friends were referred to as the Junior Museum and Zoo Associates. In 2002, the Friends approached the City to create a public-private partnership with the intention of raising the capital improvement funds required to completely renovate the JMZ facility (CMR 442:02). In February 2007, a Council Colleague’s memo from then Vice-Mayor Klein and Council Members Beecham and Mossar requested that staff work with the Friends to explore the possibility of a new public/nonprofit partnership that would strengthen the ties between the City and the Friends. Council approved an Agreement for Mutual Cooperation and Support with the Friends of the Palo Alto Junior Museum & Zoo (the Agreement) in November 2007 (CMR 443:07), an agreement extension in January 1 2013 (CMR #3395), and a Second Agreement in December City of Palo Alto Page 2 2013 (CMR #4258) (Attachment B). The current Mutual Cooperation and Support Agreement allows the Friends to use the JMZ facility to benefit the City through the Friends’ support of the operations, education-related programs, and activities and opportunities offered by or within the JMZ facility. The public-private partnership between the City and the Friends was strengthened via the written agreement, because it provided the Friends with a greater opportunity to play a role in planning and decision-making processes, which has led to increased outside funding for the JMZ facility. The Agreement enabled the Friends’ board members and staff to work in a more integrated way with the City, for example, by (a) including the JMZ manager as an ex-officio member of the Friends’ Board; (b) the Council providing a liaison to the Friends’ Board, (currently Council Member Berman); and (c) other City staff working in unison with the Friends’ staff to realize mutual goals. Final responsibility for the planning and operation of the JMZ facility continued to lie with the City, but the Friends participated with a higher level of engagement in planning and implementing JMZ activities than in the past. The inadequacies of the current JMZ facility were documented in several reports. The 1997 Adamson Associates Infrastructure Management Study Report stated that the Junior Museum & Zoo was overdue for a major renovation. It was recommended that the building be scheduled for a seismic upgrade in 1998-99 and that the entire facility be upgraded during this work. The estimated the cost in 1998 dollars of upgrades to bring the facility into mechanical and code compliance was priced at $733,000. (The mechanical systems were upgraded around 2004 and the roof was replaced in 2011.) In 2002, a Feasibility Study was conducted by MKThink Team, a consultant hired by the Friends. The Study recognized the conditions of visitor overcrowding at the JMZ facility and carefully evaluated the existing building and site for areas of efficiency and opportunity. Through a gap analysis study, the consultant determined that the program space demands (such as staff offices, classrooms, events and gathering areas) exceed existing JMZ facility accommodations and capacity. The building systems were found to be substandard and to not meet certain code requirements, and the overall coherence and presence of the JMZ facility was also deemed poor. In December 2011, the Blue Ribbon Infrastructure Task Force’s Final Report, identified “Catch Up” (deferred maintenance) in 2011 dollars for the Junior Museum & Zoo at $221,000. They also reported that they did not include Friends funding as part of their recommendation: City of Palo Alto Page 3 “In Palo Alto, donations from Community members have financed construction or improvements at Lucie Stern Community Center, the Junior Museum, the Arts Center, Lytton Plaza, the libraries, and various athletic and recreation facilities. Although some projects in the catch-up or future new & replacement categories could attract friends co-funding, the Commission did not find reasonable evidence to include friends funding as part of our recommendations.” In a 2013, a Fundraising Feasibility Study, conducted by March Partners and funded by the Friends, showed that survey respondents overwhelmingly concluded that the rebuilding of the JMZ facility would be essential to the ongoing contribution of the Museum to the community and to JMZ visitors. In 2014, the Friends completed a conceptual strategic plan and cost estimate to rebuild the JMZ facility. The Friends have been assessing public interest in the construction project (the Project) through a fundraising campaign and evaluating the feasibility of funding the construction of a new building through private contributions and grants. The City and the Friends are interested in undertaking and completing the Project in accordance with two agreements subject to mutually acceptable terms and conditions, where the City would maintain ownership of the facility and Friends would operate the facility. The Letter of Intent (the Letter) is intended to facilitate discussion of the key contract terms and conditions relating to the Project, and it requests that the City and the Friends endeavor to negotiate and finalize such agreements within the next twelve months. Discussion The Letter recognizes that the City and the Friends (the Parties) wish to collaborate in regard to the Project that would result in the complete rebuilding of the JMZ facility, as well as the operation of the JMZ for 40 years after completion of the Project. The City and the Friends anticipate the costs of the operation of the newly designed JMZ facility will exceed the current City budget appropriations for the JMZ. Further, the City desires to stabilize and reduce long-term its financial support for the JMZ’s operations. The Parties are interested in undertaking and completing the Project as well as the long- term operation of the newly built facility in accordance with two or more agreements subject to mutually acceptable terms and conditions. The Parties will endeavor to City of Palo Alto Page 4 negotiate and finalize the drafting of the following agreements over the next twelve (12) months, as practicable: 1) An agreement pertaining to the design and construction of the Project. This design/construction agreement would, for a period of time, grant the Friends a license or permission for access to, and the non-exclusive use and possession of, the Project area of the site (including within Rinconada Park), in order that the Friends may develop this area in order to improve, replace, and rebuild the JMZ to provide enhanced levels of service to the existing Palo Alto community. 2) An operations and management services agreement with a term of up to 40 years that will address, among other items, the adequacy of financial resources to be made available in order to facilitate the successful operation of the remodeled JMZ facility. This operations/management services agreement will address the appropriate operating constraints and public benefits. Staff is requesting Council’s direction to staff to negotiate these agreements with the following guiding negotiation principles in mind: 1. Delineate methods for appropriate public and City input to programs and services; 2. Oversight and cooperation of the construction project; 3. Establish a long-term structure for financial and programmatic oversight of the operations; 4. Stabilize and reduce long-term the City’s financial support for the JMZ’s operation; 5. Outline the possible transition of the operation of the facility to the City at time of lease expiration; and 6. Endeavor to complete negotiations within 12 months. Both agreements will be subject to the approval of the Palo Alto City Council and the approval as to form by the Palo Alto City Attorney. Before construction of new facilities, Council will be required to adopt a Park Improvement Ordinance in regard to the Project for any portion of the Project that will be constructed within Rinconada Park, as required by the City Charter and the Palo Alto Municipal Code. Such a Park Improvement Ordinance would be consistent with the draft Rinconada Park Long Range Plan. Upon the Friends’ acceptance of this Letter, the Friends will continue to raise funds for, design and prepare construction documents for, and obtain a construction contractor for the Project. All design and construction work will be reviewed by one or more of the City of Palo Alto Page 5 City’s Departments of Community Services, Development Services, Planning and Community Environment, Utilities, and Public Works, and then reviewed and approved, as appropriate by the City’s Boards and Commissions, including, but not limited to, the Architectural Review Board, the Parks and Recreation Commission, Planning Commission and the City Council. Under the terms of this Letter of Intent the Friends will be required to obtain and maintain all required City permits and other authorizations and furnish or caused to be furnish any financial and non-financial security, during the construction, as appropriate, and upon request, to the City, including, but not limited to, insurance, indemnity, lien waivers, performance and payment bonds and covenants. The Friends will continue to undertake a community outreach and fund-raising program to garner the community’s input and support for the Project. The City will provide reasonable staff support and other assistance, upon request, to the Friends in connection with the execution of the Project. The Friends must pay certain Project permit-related fees and charges that are due and payable to the City’s General Fund and also pay all utility services rates, fees and charges that are due and payable to the City’s Utilities Enterprise Fund in connection with the construction, operation and management of the Project. Resource Impact No additional City resources will be required beyond staff participation, review and oversight of the Project at this time. If the City’s staff and Friends’ staff reach agreement on the key terms and conditions of these agreements, then as part of Council’s approval of these agreements, any resource impacts will be identified for Council’s review and approval. The Friends will be responsible for raising the required funds for the Project and for advocating for the JMZ facility in the community and provide leadership support through their Board of Directors. Policy Implications The Letter is not intended to be a binding contract between the Parties with respect to the Project. It is intended to facilitate discussion of the key terms and conditions of the agreements concerning the Project and is only an expression of the basis on which the Parties would enter into the agreements regarding the Project. The City requests the Friends’ acknowledgement of this letter in order that the City may develop the key terms and conditions of the draft agreements concerning the Project. City of Palo Alto Page 6 Environmental Review The approval of the Letter of Intent does not qualify as a ‘project’ under the California Environmental Quality Act (CEQA), California Public Resources Code section 21065 and the CEQA guidelines, Title 14, section 15378, therefore, no environmental assessment is required at this time. This Project will be reviewed under the California Environmental Quality Act as part of the Rinconada Park Master Plan. The draft Master Plan for Rinconada Park, including the Junior Museum & Zoo Project, must be reviewed in accordance with the California Environmental Quality Act. A separate request for approval of a contract for environmental review services and funding is scheduled to be considered by Council this fall. The request will include funding by the Friends for the JMZ Project portion of the environmental review. Attachments:  Attachment A - Letter of Intent (PDF)  Attachment B - Agreement with the Friends JMZ Mutual Cooperation and Support (PDF) October 10, 2014 Aletha Coleman, President Friends of the Palo Alto Junior Museum & Zoo 1451 Middlefield Road Palo Alto, CA 94310 RE: Rebuilding of the Junior Museum & Zoo at Rinconada Park Dear Ms. Coleman: The City of Palo Alto (the "City") and the Friends of the Palo Alto Junior Museum and Zoo (the "Friends") (previously known as the Junior Museum and Zoo Associates) (each a "Party" and collectively, the "Parties") have enjoyed a long-standing relationship since 1962. In 2013, the Parties entered into a new Mutual Cooperation and Support Agreement for a term of up to six years, as it pertains to the Junior Museum and Zoo. This Support Agreement allows the Friends to use the JMZ to the benefit of the JMZ's patrons and provides for the Friends' support of the operations, education-related programs, and activities. The City and the Friends now wish to collaborate in regard to a construction project (the "Project") that would result in the complete rebuilding of the existing Junior Museum and Zoo facility ("JMZ") as well as the Friends' operation of the JMZ for 40 years after completion of the Project. The Project will be located within the boundaries of Rinconada Park, Palo Alto, as depicted in the Draft Rinconada Park Master Plan . . The City does not have sufficient funds to rebuild the existing JMZ facility and the Parties anticipate that the costs of the operation of the newly designed JMZ facility will exceed the current City's budget appropriations for the JMZ. The City desires to stabilize and reduce on a long-term basis its financial support for the JMZ's operation and the Friends seek financial support from the City in the initial years of the operation of the rebuilt facility. The Parties envision that the JMZ's mission, core programs, and services would be enhanced with a strong public-private partnership between the Parties, comprised of excellent communication and mutual understanding. The Parties are interested in undertaking and completing the Project in accordance with two or more agreements subject to mutually acceptable terms and conditions. The Parties will endeavor to negotiate and finalize the drafting of the following agreements over the next twelve (12) months, as practicable: Aletha Coleman, President Letter of Interest October XX, 2014 Page 2 of3 Project Design and Construction Agreement This design/construction agreement would, for a period of time, grant the Friends a license or permission for access to, and the non-exclusive use and possession of, the Project's construction site (including within Rinconada Park), in order that the Friends may develop this area in order to improve, replace, and rebuild the JMZ to provide enhanced levels of service to the Palo Alto community and JMZ visitors. Operations and Management Services Agreement This operations/management services agreement will address, among other items, the methods for appropriate public input to programs and services, the structure for financial and programmatic oversight of the operations, the adequacy of financial resources to facilitate the successful operation of the new facility, and the transition of the operation of the facility to the Friends and then possibly back to the City after the expiration of the agreement with the Friends. As part of the development of this operations/management services agreement, the Friends will prepare detailed financial pro form as with underlying assumptions and an operational plan which support the successful operation ofthe new JMZ facility. This agreement will address the appropriate operating constraints and public benefits. Both agreements will be subject to the approval of the Palo Alto City Council and the approval as to form by the Palo Alto City Attorney. The Council will be required to adopt a park improvement ordinance in regard to the Project for any portion of the Project that will be constructed within Rinconada Park, as required by the City Charter and the Palo Alto Municipal Code. Upon the Friend's acceptance of this letter, the Friends will continue raising funds for the design and construction of the JMZ facility as well as operating reserves for the operation of the facility and prepare construction documents and an operational plan. The Friends will undertake a community outreach and fundraising program to garner the community's input and support for the Project. The Friends will be required to obtain and maintain all required City permits and other authorizations and furnish or caused to be furnish any financial and non-financial security, during the construction, as appropriate, and upon request, to the City, including, but not limited to insurance, indemnity, lien waivers, performance and payment bonds and covenants. All design and construction work will be reviewed by one or more of the City's Departments of Community Services, Planning and Community Environment, Development Services, Utilities, and Public Works, and then reviewed and approved, as appropriate by the City's boards and commissions, including, but not limited to, the Architectural Review Board, the Parks and Recreation Commission, the Planning and Transportation Commission and the City Council. The City will provide reasonable staff support and other assistance, upon request, to the Friends in connection with the execution of the Project. Aletha Coleman, President Letter of Interest October XX, 2014 Page 3 of3 This letter is not intended to be a binding contract between the Parties with respect to the Project. It is intended to facilitate discussion of the key contract terms and conditions of the two agreements relating to the Project, and it is only an expression of the basis, on which the Parties would enter into the agreements regarding the Project. The City requests the Friends' acknowledgement of this letter below in order that the City may proceed to develop with the Friends the key terms and conditions ofthe two draft agreements concerning the Project. Once these key terms and conditions have been identified, the City will undertake to draft the final agreements that will be mutually acceptable to the parties. Sincerely, James Keene City Manager Copies to: Greg Betts, Director, Community Services Mike Sartor, Director, Public Works Lalo Perez, Director, Administrative Services Rhyena Halpern, Assistant Director, Community Services Grant Kolling, Senior Asst. City Attorney Walter C. Rossmann, Director, Office of Management and Budget John Aikin, Manager, Junior Museum & Zoo The Friends of the Palo Alto Junior Museum & Zoo hereby acknowledge a mutual interest in developing appropriate agreements between the Parties to complete the Project conditions described above. ~,U~~ f'-Aletha Coleman, President Friends of the Palo Alto Junior Museum & Zoo Date 131120 dm 00710304A 1 Contract No. _______________          AGREEMENT BETWEEN THE CITY OF PALO ALTO AND    THE FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO    FOR MUTUAL COOPERATION AND SUPPORT              Dated as of _______________________, 2013       131120 dm 00710304A 2 TABLE OF CONTENTS      Section Description        Page         1  Term; Extension; Termination     4    2  Responsibilities of the Parties      4    3  General License to the Friends     6    4  Insurance        6    5  Indemnity        8    6  Waiver         9    7  No Property Rights       9    8  Assignment        9    9  Independent Contractor      10    10  Nondiscrimination       10    11  Notices        10    12  Miscellaneous        11      Exhibit “A” Insurance Requirements    Exhibit “B” Certification of Nondiscrimination         131120 dm 00710304A 3 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE  FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO  FOR MUTUAL COOPERATION AND SUPPORT                   This MUTUAL COOPERATION AND SUPPORT AGREEMENT (the “Agreement”),  dated, for convenience, ____________________, 2013 (the “Effective Date”), is entered into by  and between the CITY OF PALO ALTO, a California chartered municipal corporation (the "City"),  and the FRIENDS OF THE PALO ALTO JUNIOR MUSEUM AND ZOO, a California public benefit  corporation organized under the California Nonprofit Public Benefit Corporation Law (the  "Friends") (individually, a “Party” and, collectively, the “Parties”), in reference to the following  facts and circumstances:     RECITALS:     1. The City owns and operates the Junior Museum (the “Museum”) and Zoo  (collectively, the “JMZ"), located at 1451 Middlefield Road, Palo Alto, CA 94301.  The JMZ is a  program of the City’s Community Services Department (the “Department”) and exists within  the Department’s Arts and Sciences division.       2. The Friends have assisted the City’s JMZ staff in supporting and advocating on  behalf of JMZ operations, programs and activities over the past thirty‐eight years.  The Friends  intend to benefit the City and the Palo Alto community by providing certain services, which the  Parties intend to be rendered in accordance with the general scope of the City’s policy on  Public/Private Partnerships.  By this Agreement, the Friends will, at the direction of the City  Manager, or designee, and through the use of both City and/or Department employees and  JMZ staff‐supervised and unpaid community volunteers, support the operations‐ and  education‐related programs, activities and opportunities offered by or within the JMZ.     3. The Parties wish to more closely collaborate and mutually cooperate and  support each other in the future, to improve, enhance and sustain the capacity of the JMZ to  develop and provide educational opportunities and related services to the Palo Alto  community.     4. The Parties entered into a Mutual Cooperation and Support Agreement in 2007  for a three‐year term with an option to extend for an additional three‐year term.  By an  Amendment No. One to Agreement, the Parties extended the agreement for the additional  three‐year term.  The Parties desire to renew the 2007 Agreement on the same terms and  conditions.     AGREEMENT:     NOW, THEREFORE, in consideration of the foregoing recitals and the following  131120 dm 00710304A 4 covenants, terms, conditions and provisions of this Agreement, the Parties agree:     SECTION 1. TERM; EXTENSION; TERMINATION    1.1 This Agreement will commence on the Effective Date, and the initial term is  three (3) years (the “Term”), unless it is earlier terminated by a Party as herein provided.     1.2 The Term may be extended by the Parties for one (1) additional term of three (3)  years (the “Extension Term”); provided, however, the City may require the City Council’s  approval of the Extension Term.     1.3 A Party may terminate for convenience this Agreement, in whole or in part, by  giving the other Party no less than ninety (90) days’ prior written notice.    1.4 This Agreement is subject to the fiscal provisions of the Charter of the City of  Palo Alto and the Palo Alto Municipal Code (the “PAMC”).  This Agreement will terminate  without penalty: (A) at the end of any fiscal year in the event that funds are not appropriated  for the JMZ program for the following fiscal year; or (B) at any time within a fiscal year in the  event that funds are appropriated for a portion of the fiscal year and funds for this Agreement  are no longer available.  This Section 1.4 will take precedence in the event of a conflict with any  other covenant, term, condition or provision of this Agreement and the Exhibits. Nothing in this  Section 1.4 is intended to affect the Friends’ rights and remedies as may be available under  applicable laws.     SECTION 2. RESPONSIBILITIES OF THE PARTIES     2.1 The responsibilities of the City will include the following:     A. The management of the JMZ facilities, programs and the City’s staff employees,  including any and all City‐hired contractors, subcontractors, consultants and volunteers.  The  City will hire, supervise, evaluate and otherwise exercise supervision and control of its  employees.  The City may permit the Friends’ duly authorized representatives to participate in  the interview process for the hiring of a manager of the JMZ (the “JMZ Manager”);       B. The feeding, care and maintenance of the JMZ wildlife residents and basic  maintenance and repair of the JMZ facilities as well as the furnishing of internal and external  landscaping and utility services to the JMZ;       C. The selection of one or more individuals to serve as the City’s liaison(s) to the  Friends’ board of directors and/or any board committees (the “Board”), including (1) a Council  Member, if any, who will serve as the official liaison of the City to the Board, and (2) the JMZ  Manager, whose duties may include providing assistance to the Friends, including the Board, in  selected fundraising activities, as may be directed or approved by the City Manager, or  131120 dm 00710304A 5 designee;    D. The review of all community‐related activities that the Friends may propose for  inclusion in the JMZ programs.  All activities of the Friends will be pre‐approved by the JMZ  Manager, or designee;    E. Develop and provide educational programs relating to JMZ and supervise  community volunteers in connection therewith;     F. Manage the JMZ collections and supervise the accessioning, deaccessioning,  cataloging, and conservation of the JMZ permanent collection in accordance with City,  Department, Museum, state, and federal laws and applicable professional standards; and     G. Any other obligation(s) that the City, Department or the Museum may undertake  in accordance with this Agreement, upon reasonable notice to the Friends; provided, however,  any such undertaking will be memorialized, in writing, by an amendment to this Agreement, in  order that such undertaking will be binding upon the City.      2.2 The responsibilities of the Friends will include the following:    A. The supervision and management of its directors, officers, employees,  volunteers, contractors, subcontractors and consultants, while they, and each of them, are  performing obligations on behalf of the Friends pursuant to this Agreement;    B. The rendering of assistance to the JMZ Manager (through the Board and/or  staff), at the JMZ Manager’s request, including voluntary attendance and contribution at staff  meetings of the JMZ Manager;    C. The provision and staffing of programs to educate the public about the JMZ and  its programs and amenities, and the mobilization of volunteers for JMZ projects and programs;    D. The development and implementation of a development plan for the JMZ (the  “Friends Plan”), that is consistent with the JMZ strategic plan, referred to in Section 2.3(A), and  the annual work plan(s), referred to in Section 2.3(B).  The Development Plan will include donor  acknowledgment and activities consistent with City policies and practices; and    E. The rendering of other services beyond those spelled out in the annual JMZ Plan  and related to the preservation, protection and enhancement of the JMZ, will be approved, in  writing, by the JMZ Manager.     2.3 The responsibilities of the Parties will include the following:    A. Under the direction of the JMZ Manager, develop a long‐term strategic plan to  131120 dm 00710304A 6 enhance and improve the vision of the JMZ (the “Strategic Plan”);    B. Under the direction of the JMZ Manager and consistent with the Strategic Plan,  develop an annual work plan (the “JMZ Plan”), and, on an annual basis, effective July 1 of each  year, establish program, budget, fundraising and administrative and operational priorities and  activities for each fiscal year of operations. The JMZ Plan will delineate the rights and  obligations of the Parties and identify each Party’s duly authorized representative. The JMZ Plan  will include, without limitation, specific cash handling procedures to be followed by the Parties  and the dispute resolution procedures for informally resolving differences of opinion of each  Party regarding the substance and/or implementation of the JMZ Plan; and     C. In regard to the JMZ Plan, the Parties will review, on a quarterly basis, the status  of reaching and/or exceeding the goals of the JMZ Plan, including budget goals. The Parties will  evaluate, annually, the JMZ Plan.    2.4 The responsibility of either Party or the Parties in regard to any capital  improvement project (“CIP”) for the JMZ will not be established by this Agreement.  The Parties  agree to reserve for future consideration any existing or future CIP for the JMZ, including the  scope of a capital fundraising program and the responsibilities of each Party in regard to  thereto.  The provision of any CIP may be addressed by amendment to this Agreement or by  separate instrument, as determined by the Parties.     2.5 To the extent this Section 2 does not specifically identify the Party who will be  primarily responsible for any action or decision in regard to the JMZ, the Parties agree that the  City will be the party to assume all rights and obligations in connection with such decision.     SECTION 3. GENERAL LICENSE TO THE FRIENDS     3.1 The City hereby grants the Friends, its directors, officers, employees, contractors,  subcontractors and consultants a nonexclusive license to enter upon and use the JMZ facilities  in connection with the Friends’ execution of its individual and/or joint responsibilities  established by the JMZ Plan, including, but not limited to, organizing small group meetings and  large group/community meetings and events at the JMZ, such as fundraising events, programs,  and tours of the JMZ facilities, and using the office space afforded to the Friends for their use at  the JMZ facilities in connection with this Agreement. Any use of the JMZ facilities will be  approved by the JMZ Manager in regards to program scheduling, space availability, and the  functionality of shared JMZ spaces for staff use. The City will provide to the employees of the  Friends security card access to the JMZ; any additional cards will be approved by the JMZ  Manager, upon request, in writing.     SECTION 4. INSURANCE    4.1  As of the Effective Date, the Friends, at its sole cost and expense, will obtain and  131120 dm 00710304A 7 maintain the following insurance coverage, and as further described in Exhibit “A,” acceptable  to the City’s insurance risk manager (the “Risk Manager”) in full force and effect during the  Term, insuring not only the Friends but, with the exception of worker’s compensation and  employer’s liability insurance, naming the City as an additional insured, concerning the Friends’  participation under this Agreement.    POLICY                    MINIMUM LIMITS OF LIABILITY    A. WORKER’S   COMPENSATION  Statutory    B. COMPREHENSIVE    Bodily Injury $1,000,000 ea. person    AUTOMOBILE    LIABILITY    Property Damage  $1,000,000 each person,        including owned, hired, and non‐owned        automobiles    C. COMPREHENSIVE  Bodily Injury  $1,000,000 each person,    GENERAL    $1,000,000 each occurrence,    LIABILITY    $1,000,000 aggregate   including products,  Property Damage $1,000,000 each occurrence &  completed operations,  Personal Injury  $1,000,000 each occurrence,        broad form contractual, and personal injury.    4.2 Any deductibles or self‐insured retentions must be declared to and approved by  the Risk Manager.  At the City’s option, the insurer will reduce or eliminate such deductibles or  self‐insured retentions as respects the City. The Friends’ insurance will be carried in full force  and effect on or before the Effective Date.  Every insurance policy required by this Agreement  will contain the following or substantially similar clauses:    A. "This insurance shall not be canceled, limited in scope of coverage or  nonrenewed until after thirty (30) days written notice has been given to: City of  Palo Alto/Junior Museum and Zoo Manager, P.O. Box 10250, Palo Alto, CA  94303".    B. "All rights of subrogation are hereby waived against the City of Palo Alto and the  members of the City Council and elective or appointive officers or employees,  when acting within the scope of their employment or appointment."     C. "The City of Palo Alto is added as an additional insured as respects operations of  the named insured at or from the JMZ."  131120 dm 00710304A 8   D. "It is agreed that any insurance maintained by the City of Palo Alto will apply in  excess of, and not contribute to, insurance provided by this policy."     4.3 Evidence of Insurance Coverage and/or Changes will be, as follows:    A. Certificate of Insurance.  The Friends agree to deposit with the JMZ Manager  before the effective date of this Agreement, certificates of insurance necessary  to satisfy the City that the insurance provisions of this Agreement have been  complied with, and to ensure that such insurance is kept in effect, with the  certificates on deposit with the City, during the Term.  Should the Friends fail to  provide evidence of such required coverage at least three (3) days prior to the  expiration of any existing insurance coverage, the City may purchase such  insurance, on behalf of and at the sole expense of the Friends, to provide an  additional six‐month period of coverage.    B. Review of Coverage.  The City will retain the right, at any time, to review the  coverage, form, and amount of the insurance required hereby.  If, in the opinion  of the Risk Manager, the insurance provisions in this Agreement do not provide  adequate protection for the City and for members of the public using the JMZ,  the City Manager, or designee, may require an amount to provide adequate  protection as determined by the Risk Manager. The City's requirements shall be  reasonable and shall be designed to assure protection from and against the kind  and extent of risk which exists at the time a change in insurance is required.    C. Changes in Coverage. The City Manager, or designee, will notify the Friends, in  writing, of any change(s) in the insurance requirements; if the Friends does not  deposit copies of acceptable insurance policies (or certificates) with the City, to  the attention of the Risk Manager,  incorporating such changes within sixty (60)  days of receipt of such notice, or in the event the Friends fail to ensure that the  required insurance coverage is maintained in effect, the City may terminate this  Agreement in accordance with Section 1.       D. No Limit of Liability.  The procuring of such required policy or policies of  insurance will not be construed to limit the Friends’ liability hereunder or to  fulfill the indemnification provision and requirements of this Agreement.   Notwithstanding the policy or policies of insurance, the Friends will be obligated  for the full and total amount of any damage, injury, or loss caused by or  connected with this Agreement, with the Friends’ use of the JMZ.     E. Acceptability of Insurers. Insurance shall be placed with insurers with a current  A.M. Best’s rating of no less than A:X.    131120 dm 00710304A 9  SECTION 5. INDEMNITY    5.1 Except as provided under Section 5.2, the Friends hereby waive all claims,  liability and recourse against the City, including the right of contribution for loss or damage of  or to persons or property arising from, growing out of, or in any way connected with or related  to this Agreement.  The Friends will protect, indemnify, hold harmless and defend the City, its  officials, officers, employees, representatives and agents, from and against any and all claims,  losses, liability, demands, damages, costs, expenses or attorneys' fees, caused by or arising out  of the Friends’ negligent acts or omissions, or willful misconduct, in the performance or  nonperformance of its obligations under the covenants, terms, conditions and provisions of this  Agreement.  The preceding sentence notwithstanding, no personal liability will attach to any  Board member under the provisions of this Section 5 for any negligent action or inaction. In the  event the City is named as co‐defendant, the Friends will notify, in writing, the City, to the  attention of the City’s City Attorney (the “City Attorney”), of such fact and it will represent the  City in such legal action, unless the City undertakes to represent itself as co‐defendant in such  legal action, in which event the Friends will pay to the CITY its reasonable litigation costs and  expenses, including reasonable attorneys' fees.    5.2 The City will protect, indemnify, hold harmless and defend the Friends, its  directors. officers, employees and agents, against any and all claims, losses, liability, demands,  damages, costs, expenses or attorneys' fees arising out of the City's negligent performance or  nonperformance of its obligations under the terms of this Agreement.    SECTION  6. WAIVER     6.1 The waiver by either Party of any breach or violation of any covenant, term, or  condition of this Agreement or of the provisions of the PAMC or other City law, rule or  regulation, will not be deemed to be a waiver of any such covenant, term, condition, or  provision or of any subsequent breach or violation of the same or any other covenant, term,  condition, or provision. The subsequent acceptance by either Party of any consideration which  may become due or payable hereunder will not be deemed to be a waiver of any preceding  breach or violation by the other Party      SECTION 7. NO PROPERTY RIGHTS     7.1 The Parties agree that this Agreement will not confer any property right upon  the Friends, its directors, officers, employees, volunteers, contractors, subcontractors or  consultants.  Any work performed for the benefit of the JMZ and any improvements placed or  constructed at the JMZ will conform to the City’s standards and approved by the City Manager,  or designee, and will, upon acceptance, become the property of the City.     SECTION 8. ASSIGNMENT    131120 dm 00710304A 10  8.1 Neither Party may assign, transfer, or convey this Agreement or any interest that  it may have in this Agreement without the other Party’s express consent or approval.  Any  attempted assignment without the required consent or approval will be void and will confer no  right, title, or interest in or to this Agreement, or part thereof.  In the event of an unauthorized  assignment, at the option of the Party not making the assignment, this Agreement may be  terminated upon reasonable notice to the Party making the assignment.       SECTION 9. INDEPENDENT CONTRACTOR     9.1 In the exercise of its rights and responsibilities under this Agreement, the Friends  act at all times as an independent contractor and not as an employee of the City.  Nothing in  this Agreement will be construed to establish a partnership, joint venture, group, pool,  syndicate or agency between the Parties.  No provision contained herein will be construed as  authorizing or empowering either Party to assume or create any obligation or responsibility  whatsoever, express or implied, on behalf, or in the name of, the other Party in any manner, or  to make any representation, warranty or commitment on behalf of the other Party.  In no event  will either Party be liable for (a) any loss incurred by the other Party in the course of its  performance hereunder, or (b) any debts, obligations or liabilities of the other Party, whether  due or to become due.     SECTION 10. NONDISCRIMINATION     10.1 The PAMC prohibits discrimination in the employment of any individual under  this Agreement because of race, skin color, gender, age, religion, disability, national origin,  ancestry, sexual orientation, housing status, marital status, familial status, weight or height of  that person. The Foundation acknowledges that it has read and understands the provisions of  PAMC Chapter 2.30 relating to nondiscrimination in employment and the penalties for  violations thereof, and it agrees to comply with all requirements of PAMC Chapter 2.30  pertaining to nondiscrimination in employment, including the completion, execution and  submission to the City of the Certification of Nondiscrimination, as described in Exhibit “B.”     SECTION 11. NOTICES     11.1 Any notice, request, consent or approval by a Party that  is required to be  furnished by this Agreement, will be given, in writing, and delivered by personal service, the  United States Postal Service, mailed, first class, postage prepaid, or by facsimile transmission, to  the following:    To CITY:     To FRIENDS:    City Clerk     Executive Director  City of Palo Alto    Friends of the Palo Alto Junior  P.O. Box 10250    Museum and Zoo  131120 dm 00710304A 11 Palo Alto, CA 94303    1451 Middlefield Road        Palo Alto, CA 94303‐4303  with a copy to:  Manager, Junior Museum and Zoo  City of Palo Alto  P.O. Box 10250  Palo Alto, CA 94303     SECTION 12. MISCELLANEOUS    12.1 This Agreement will be governed by and construed in accordance with the laws  of the State of California and the Charter of the City of Palo Alto and the Palo Alto Municipal  Code.  The Parties will comply with all applicable federal, state and local laws in the exercise of  their rights and the performance of their obligations under this Agreement.      12.2 All covenants, terms, conditions, and provisions of this Agreement, whether  covenants or conditions, will be deemed to be both covenants and conditions.     12.3 This Agreement represents the entire agreement between the Parties and  supersedes all prior negotiations, representations and contracts, written or oral.  This  Agreement may be amended by an instrument, in writing, signed by the Parties.  This  Agreement may be executed in any number of counterparts, each of which will be an original,  but all of which together will constitute one and the same instrument.    12.4 All exhibits referred to in this Agreement are by such references incorporated in  this Agreement and made a part hereof.  The following exhibits are (or will be) made a part of  this Agreement:     Exhibit “A” ‐ Insurance Requirements   Exhibit “B” – Certification of Nondiscrimination.    12.5 At the request of the City, the Friends will furnish to the City Attorney for the  City’s review and approval copies of its articles of organization, operating agreement, and other  information relating to its organization status.     12.6 The Parties agree that the normal rule of construction to the effect that any  ambiguity is to be resolved against the drafting party will not be employed in the interpretation  of this Agreement, the Exhibits, or any amendment thereto.    12.7 In the event that an action is brought, the Parties agree that trial of such action  will be vested exclusively in the state courts of California or in the United States District Court  for the Northern District of California in the County of Santa Clara, State of California.    131120 dm 00710304A 12 12.8 The prevailing Party in any action brought to enforce the provisions of this  Agreement may recover its reasonable costs and attorneys' fees expended in connection with  that action.    12.9 If a court of competent jurisdiction finds or rules that any provision of this  Agreement, the Exhibits, or any amendment thereto, is void or unenforceable, the unaffected  provisions of this Agreement, the Exhibits, or any amendment thereto, will remain in full force  and effect.    12.10 The term “day” means a calendar day, unless a “business day” is specified; for  the purposes of this Agreement, “business day” excludes any “Regular Holiday” or “Other  Special Day” referred to in PAMC Section 2.08.100 or any Friday that is considered a ‘9/80’ day,  when the City does not require employees, electing to work nine (9) business days in a ten‐ business days biweekly period, to work on such days.     IN WITNESS WHEREOF, the Parties by their duly authorized representatives have  executed this Agreement on the Effective Date.      APPROVED AS TO FORM:    CITY OF PALO ALTO      ___________ __________    _________________________  Senior Asst. City Attorney    City Manager      APPROVED: FRIENDS OF THE PALO ALTO JUNIOR MUSEUM  AND ZOO      __________________________  ______________________________  Director of Administrative Services  Member      ______________________________  ______________________________  Director of Community Services  Member            ______________________________        Member       131120 dm 00710304A 13 EXHIBIT “A”  INSURANCE REQUIREMENTS      131120 dm 00710304A 14 EXHIBIT “B”  CERTIFICATION OF NONDISCRIMINATION              City of Palo Alto (ID # 5249) City Council Staff Report Report Type: Action Items Meeting Date: 11/10/2014 Summary Title: Our Palo Alto Communications and Outreach contract Title: Approval of a Two-Year Contract with Flint Strategies For a Communications and Outreach Contract to Support the Our Palo Alto Initiative and the Planning and Community Environment Department at a Cost Not to Exceed $175,000 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council approve and authorize the City Manager or his designee to execute contract C15154961 with Flint Strategies in an amount not to exceed $175,000 for a two-year period to provide consulting services for communication and outreach support for the Our Palo Alto initiative and the Department of Planning & Community Environment. Executive Summary This two-year contract is intended to support the Our Palo Alto initiative and improve communication between the Department of Planning & Community Environment (PCE) and members of our community. The Our Palo Alto initiative envisions community dialogue around important ideas and projects (actions), as well as larger planning efforts like the Comprehensive Plan Update. The selected consultant will support this initiative by assisting staff with event coordination and community engagement using a variety of techniques. Recognizing that the Our Palo Alto initiative will only have lasting benefits if it increases staff’s capacity to engage with members of the community, the selected consultant will also work with staff of PCE to improve public noticing and the department’s regular e-newsletter and website, expand the department’s use of open data and 21st century communication tools, and grow staff expertise regarding in- person and on-line communication. On June 16, 2014 (Staff Report 4899), the City Council adopted the Fiscal Year 2015 Operating Budget, including one-time funding of $175,000 in the Planning and Community Environment Department’s Fiscal Year 2015 Operating udget for Our Palo !lto communications and City of Palo Alto Page 1 outreach consulting. Background & Summary of Key Issues On February 3, 2014 (Staff Report 4353), the City Council approved the conceptual framework for Our Palo Alto. Our Palo Alto is intended to engage the community in a community conversation about ideas, actions, and a design for the future. Earlier this year, the City held a number of community events and conversations focused on topics such as Palo !lto’s demographics, housing affordability, growth management strategies, alternative futures, and more. Each event has been supported through multiple community outreach and communication channels including social media, online civic engagement tools and e- newsletter updates. The City requires professional services to assist and continue to build on these efforts. As noted above, the Our Palo Alto initiative will result in sustained engagement and participation in planning efforts if it increases the capacity of the ity’s Department of Planning & Community Environment (PCE) to share information, invite comments, and listen and act on community input. The selected contractor will work the ity’s ommunication Officer and PE to build staff expertise, develop communication strategies that share data and information as a routine part of the Department’s work, and prepare outreach materials specific to the Department’s programs. Staff issued a Request for Proposals (RFP) on June 24, 2014 seeking proposals from professionals with experience and expertise related to communications and community engagement. The RFP requested that proposals include demonstrable experience with social media, public noticing, proactive engagement, and working collaboratively to anticipate high profile issues. Five proposals were received and evaluated. The three proposals with the highest scores were invited to participate in panel interview. Each firm presented information about their experience and then addressed panel questions. Based on the interviews and the original proposals, final evaluations were completed and Flint Strategies received the highest score. Resource Impact The contract will be for two years in an amount not to exceed $175,000. The Fiscal Year 2015 Operating Budget included a one-time appropriation of $175,000 for this purpose. No additional funding is needed. Attachments:  Attachment A: Contract with Flint Strategies(PDF)  Attachment B: Flint Contract Response to CM October 27 Comments (DOCX) City of Palo Alto Page 2 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. C15154961 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND FLINT STRATEGIES FOR PROFESSIONAL SERVICES This Agreement is entered into on this 28th day of October, 2014, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and FLINT STRATEGIES, a California corporation, located at 533 Grove Street, Half moon Bay, CA. 94019, Telephone (650)455-1201 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to implement a communications strategy (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through October 27, 2016 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of Professional Services Rev. Feb. 2014 1 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed One Hundred Seventy Five Thousand Dollars ($175,000.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY Professional Services Rev. Feb. 2014 2 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY’s stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Kendall Flint as the Principal & Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s project manager is Claudia Keith, City Manager’s Office, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone (650) 329-2607. The project manager will be CONSULTANT’s Professional Services Rev. Feb. 2014 3 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. Professional Services Rev. Feb. 2014 4 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the Professional Services Rev. Feb. 2014 5 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. Professional Services Rev. Feb. 2014 6 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Consultant shall comply with the following zero waste requirements: x All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. x Goods purchased by Consultant on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. x Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 25. MISCELLANEOUS PROVISIONS. Professional Services Rev. Feb. 2014 7 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized Professional Services Rev. Feb. 2014 8 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 representatives executed this Agreement on the date first above written. CITY OF PALO ALTO FLINT STRATEGIES  APPROVED AS TO FORM: Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS Professional Services Rev. Feb. 2014 9 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 EXHIBIT “A” SCOPE OF SERVICES Introduction In April 2014, the City of Palo Alto (CITY) officially launched Our Palo Alto, a civic engagement and community outreach effort focused on creating opportunities for conversations about issues and ideas – beyond City Hall. CITY has helped to facilitate workshops, community meetings, a speaker series, online conversations via social media, and even a coffee chat. All of these activities and conversations have generated ideas, connections, solutions and a lot of community interaction and engagement. Our Palo Alto is also meant to engage the broader community in the discussion around the update to CITY’s comprehensive plan. Related to this effort, CITY has held a number of community events and conversations focused on topics including Palo Alto’s future demographics, housing affordability, growth management strategies, alternative futures and more. In addition to in person attendance, each event has been supported through multiple community outreach and communication channels including social media, online civic engagement tools and enewsletter updates. The totality of these efforts has been enhanced and increased community feedback, input and participation, and the CITY requires professional services of the CONSULTANT to assist and continue to build on these efforts. In the long term, Our Palo Alto will result in sustained engagement and participation in planning efforts if it increases the capacity of the City’s Department of Planning and Community Environment to share information, invite comments, and listen and act on community input. As a result, the CONSULTANT will work directly with the Planning and Community Environment Department to build staff expertise, develop communication strategies that share data and information as a routine part of the Department’s work, and prepare outreach materials specific to their programs and projects. Project Scope CONSULTANT will work with CITY to provide high quality and effective communications related to the activities of the Planning and Community Environment Department (PCE) and Our Palo Alto. CONSULTANT will work with CITY to support and enhance its community outreach related to the update of the Comprehensive Plan to broaden and deepen civic engagement in the process. CONSULTANT shall be onsite, as required. CITY and CONSULTANT will agree on tasks prior to proceeding. Upon direction, tasks may include, but not be limited to the following: 1. Working closely with City staff in the Planning and Community Environment Department and the Chief Communications Officer, review existing communications Professional Services Rev. Feb. 2014 10 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 plans and materials used by the department and develop and implement a communications strategy to improve all forms of current communication, exploring new types of communication available to CITY. 2. Attend committee meetings, organization meetings, community meetings, community events, breakfasts, luncheons, or dinners. CONSULTANT attendance will be to listen, answer questions, and provide information about the CITY’s activities. This may include working on evenings and weekends. 3. Respond to information requests from the general public. 4. Prepare written information such as fact sheets, e-newsletters, web pages, news stories, notices, and surveys. 5. Develop or assist in the development of educational materials and briefing documents on current issues to ensure the quality and consistency of information provided to the public. This may include distilling complex and technical information into easily readable and understandable copy and preparing press releases and notifications related to CITY meetings and projects. 6. Work with and support CITY staff to implement and institutionalize improved and consistent communications and outreach throughout the department. 7. Maintain and update an outreach binder with contact and background information about each community meeting attended. CONSULTANT will draft brief reports highlighting issues/questions discussed at each meeting. Professional Services Rev. Feb. 2014 11 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone by the date specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion No. of Days/Weeks From NTP 1. Tasks as specified in EXHIBIT “A” TBD Professional Services Rev. Feb. 2014 12 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $175,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $100.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Professional Services Rev. Feb. 2014 13 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 EXHIBIT “C-1” HOURLY RATE SCHEDULE Kendall Flint, Principal $140 per hour Steve Flint, Senior Planner $125 per hour Graphic Services $75 per hour Administrative Support $45 per hour Professional Services Rev Feb. 2014 14 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET PROPERTY DAMAGE $1,000,000 $1,000,000 CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING -EACH OCCURRENCE $1,000,000 $1,000,000 ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY Professional Services Rev Feb. 2014 15 DocuSign Envelope ID: BA94C87D-9DE1-42A2-89C3-85BEBB1C6822 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Professional Services Rev Feb. 2014 16 Certificate of Completion Envelope Number: BA94C87D9DE142A289C385BEBB1C6822 Status: Completed Subject: Please DocuSign this document: C15154961 Community Outreach Contract.pdf Source Envelope: Document Pages: 16 Signatures: 1 Envelope Originator: Certificate Pages: 4 Initials: 0 Chris Anastole AutoNav: Enabled 250 Hamilton Ave EnvelopeId Stamping: Enabled Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original Holder: Chris Anastole Location: DocuSign 10/6/2014 2:34:25 PM PT chris.anastole@cityofpaloalto.org Signer Events Signature Timestamp Kendall Flint Sent: 10/6/2014 2:37:20 PM PT kendall@flintstrategies.com Viewed: 10/7/2014 6:04:28 AM PT Principal Signed: 10/10/2014 5:24:52 AM PT Security Level: Email, Account Authentication (None) Using IP Address: 166.137.95.238 Electronic Record and Signature Disclosure: Accepted: 10/10/2014 5:23:52 AM PT ID: c9d33c94-0725-4cba-aa14-add983225e73 In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Robin Ellner Sent: 10/10/2014 5:24:54 AM PT robin.ellner@cityofpaloalto.org Viewed: 10/14/2014 7:57:51 AM PT Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/10/2014 5:24:54 AM PT Certified Delivered Security Checked 10/10/2014 5:24:54 AM PT Signing Complete Security Checked 10/10/2014 5:24:54 AM PT Completed Security Checked 10/10/2014 5:24:54 AM PT Electronic Record and Signature Disclosure      CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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Attachment B Response to October 27, 2014 Councilmember Questions The City Manager received Councilmembers’ questions on October 27 and since this item was continued to the November 10th hearing date, staff is providing a written response below: Q1: What has this company done previously for PA and what was the response to their involvement, esp from the community? A1: This firm has not done any other work for the city, although staff has worked with the principal before, and is confident the company can successfully complete the scope of work. Q2: Have the other Our PA contractors collaborated with Flint previously and/or were they offered input into selection of the contractor? A2: The RFP was sent to the individual who helped staff coordinate the first few Our Palo Alto events as well as ten other firms. The RFP was also publicly available in keeping with City procedures and policies. We received five proposals which were evaluated by a panel of staff, and selected the top three proposals for interviews. Q3: What role did the Community Task Force have in selection and how will Flint and the Task Force integrate efforts? A3: The Leadership Group that was appointed to help with community engagement for the Comprehensive Plan Update was not involved in selecting the contractor. The Comprehensive Plan consultant, Placeworks, is expected to support the engagement ideas developed by the Leadership Group. Flint will be available if needed to provide assistance, but will primarily be focused on other components of the Our Palo Alto initiative. Q4: What is the role of our in house PR staff in relation to this undertaking and what is the need compared to the in-house capabilities? A4: The City has one Chief Communications Officer to support the City Manager, City Council, and a wide range of outreach and communication efforts by various departments. The Communications Officer currently has one hourly staff person and limited consultant support. Several departments (e.g. Utilities, Police) also have in house communications expertise; the Planning Department does not. The proposed contract would increase the City’s overall capacity by supporting the Chief Communications Officer in broadening and deepening outreach to the community and planning events as part of the Our Palo Alto initiative, and would work with the Planning Department to improve communication and transparency regarding planning and transportation projects. Q5: How does the proposed $175k relate to the next highest proposal in terms of $? A5: Proposals were submitted with an hourly rate. We received five proposals. Flint was one of three finalists interviewed. One of the finalists (D&A) had rates as high as 42% higher than Flint. The other finalist had rates as high as 3.5% higher than Flint. Q6: In referring to the staff report 4899 of June 16, 2014 it does not seem to relate to this Item. Please clarify. A6: The reference to staff report 4899 is to the adoption of the fiscal year 2015 operating budget which included funding of $175,000 in the Planning Department budget for Our Palo Alto. City of Palo Alto (ID # 5261) City Council Staff Report Report Type: Action Items Meeting Date: 11/10/2014 City of Palo Alto Page 1 Summary Title: City Hall Remodel Review Title: Review of City Hall Remodel Project (Continued From October 20, 2014) From: City Manager Lead Department: City Manager At the August 4, 2014 Council meeting, several Council Members asked to add a review of the City Hall remodel project as a follow-up to previous Council action. On June 16, 2014 Council approved the construction contract and Budget Amendment Ordinance to continue work on the City Hall remodel project. Attached is the June 16, 2014 staff report (Attachment A). Staff will be prepared to make a presentation and update Council on the project’s progress and answer any questions. Attachments:  Attachment: Attachment A - Staff Report 4754 (PDF) City of Palo Alto (ID # 4754) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/16/2014 City of Palo Alto Page 1 Summary Title: City Hall Remodel Contract Title: Approval of a Construction Contract with D.L. Falk Construction, Inc. in the Amount of $2,718,350, Approval of Amendment Number 2 to Contract No. C12144101 with WMB Architects, Inc. in the Amount of $141,565 for a Not-to-Exceed Amount of $426,256 for the City Hall Remodel Project PE- 12017, and Adoption of a Budget Amendment Ordinance for Fiscal Year 2014 to Provide an Additional Appropriation in the Amount of $1,607,109 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached contract with D.L. Falk Construction, Inc.in the amount of $2,718,350 (Attachment A) for the City Hall Remodel Capital Improvement Program Project PE-12017; 2.Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with D.L. Falk Construction, Inc.for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed a ten percent contingency of $271,835; 3.Approve and authorize the City Manager or his designee to execute the attached amendment to Contract C12144101 with WMB Architects, Inc. (Attachment B) in the amount of $141,565 for construction administration services for the City Hall Remodel Project (Capital Improvement Program Project PE-12017), adding $128,695 to basic services and adding $12,870 City of Palo Alto Page 2 for additional services for a total contract amount not-to-exceed $426,256; and 4.Approve the attached Budget Amendment Ordinance (BAO) in the amount of $1,607,109 (Attachment C) for construction to selected areas on the first floor, mezzanine, and second floor of City Hall. Background Palo Alto City Hall opened 44 years ago in 1970. Although the building has recently undergone a thorough mechanical, electrical, and exterior refurbishment under the Civic Center Infrastructure Upgrade Project (PF-01002), some of the interior areas remain functionally inadequate and aesthetically dated. Specifically, there are several public meeting and gathering areas that hinder effective interaction between the community and city staff and Council due to small seating capability and technical limitations. In particular, the Council Conference Room has a limited seating capacity, has outdated architectural treatments and furnishings, and lacks modern amenities such as flexible seating, efficient lighting,and technological resources for audio-visual presentations. Staff has identified the need for additional building elements similar to the Council Conference Room for the first floor of City Hall, and included them in the scope of this comprehensive project. These include a more welcoming and accommodating lobby area; a new community conference room with a capacity to seat 55 to better serve larger Council Committee and Commission meetings, and several areas for efficient use of space for enhanced customer services for residents. Additionally, the elevator cabs have worn-out wall and floor finishes, harsh lighting, and inadequate building information and directional signage. There is also a significant need to improve the signage and other wayfinding information at the various building entrances and on the first floor of City Hall in order to assist members of the public with finding the staff members and services that can meet their needs. During the project design, the goal of the first floor renovation was broadened in scope to achieve a more open atmosphere to encourage public participation and community access to City Hall. The final plan also includes moving the Utilities City of Palo Alto Page 3 Department’s customer service counter from the second floor to the lobby area to be located near the Revenue Collections customer service counter.The People Strategy & Operations conference room behind the Council Chambers would then become a new,larger conference room that could also be used for Council and staff sessions and the current (very inadequate) Council Conference Room would be transformed into a staff training and multi-use room. To relocate People Strategy & Operations (PSO)out of the lobby level, a number of other staff reconfigurations and relocations are necessary. PSO would be consolidated on the mezzanine level by relocating the Information Technology (IT) Department staff currently using the space. The IT Department will be consolidated on the second floor using more densely configured desks in an open floor plan similar to what many high tech firms use. They will also expand into the portion of the second floor vacated by the Utilities Department’s customer service counter staff that will move to the first floor. The plan accomplishes the goal of consolidating customer service functions on the first floor and providing improved public spaces to promote public involvement. In addition, PSO and IT staff are currently split between different floors. Following construction,they will each be located together on their respective floors, improving employee interaction and increasing efficiency. Additional aspects of the project include reconfiguration of the existing restrooms serving the Council to conform to Americans with Disabilities Act (ADA) accessibility requirements. The kitchenette serving evening Council meetings will also be relocated. Since the project will include extensive carpeting on much of the first floor, mezzanine and second floor, staff combined the new carpeting and the reupholstery of the seating for the Council Chambers. Council Chamber carpeting is funded through CIP PF-11001. Open government and technology are the key principles for this project. The new community conference room and renovated public spaces have been designed for better interaction and public engagement. The rooms will be equipped with broadcast media capabilities, including multiple LCD screens, High Definition cameras, and wall-mounted speakers. Flexibility is also a key theme of the design. The rooms will allow multiple table and chair configurations. Most importantly, for very large events, the proposed glass partition separating the lobby from the City of Palo Alto Page 4 new community conference room can be opened and folded away to allow even greater space flexibility. The project will also coordinate with a new interactive digital media public art element to be installed on the main lobby wall facing the main building entry doors. An open call to new media artists was recently conducted by the Community Services Department (CSD). Their call for artists resulted in 104 responses that were narrowed to 29 by a selection panel that included staff and Public Art Commissioners. Further selection panels brought the field down to 5, then to 3, and now a final artist selection is nearly complete. CSD will bring the artist’s contract and full details of the proposed digital art piece for Council approval in late summer. A portion of the funding for the artist is included in the attached Budget Amendment Ordinance. Wayfinding and building signage aspects of the overall project are also still in final design stages. Exterior signage is expected to be reviewed by the Architectural Review Board (ARB) this summer. Following ARB approval, an invitation for bids (IFB) will be issued to procure the services of a specialty signage fabrication and installation contractor. Discussion Scope Overview The scope of work for the attached construction contract includes: 1)Main Lobby remodel including coordination with an interactive digital media public art element; 2)Enhance the lobby area heating, ventilation, and air conditioning (HVAC) system in order to handle the increased loads from the new community meeting room and the new digital art installation; 3)Restore the terrazzo floor of the main lobby; 4)Convert existing PSO conference room into a new Council Conference Room; 5)Convert existing Council Conference Room into a new Training and Multi- purpose Meeting Room for staff and the public; 6)Create a new Community Meeting Room beside the Main Lobby; 7)Install broadcast media capabilities for all the new lobby-level meeting spaces, including multiple LCD screens, High Definition cameras, and wall- mounted speakers; City of Palo Alto Page 5 8)Modify the lobby payment counter to match the new architectural style of the lobby and provide a lower ledge for writing checks and signing forms; 9)Convert the Revenue Services offices into new Utilities Customer Service counter and offices; 10)Reconfigure and renovate mezzanine level offices (PSO and Purchasing); 11)Reconfigure and renovate second floor offices (IT and Utilities); 12)New carpeting and new bench upholstery for Council Chambers; and 13)Remodel the three (3)building elevator cabs. The building will remain occupied during the course of the project. Work will be scheduled to keep systems operational during working hours and to minimize the impacts of construction on staff and the public. There may be some temporary relocation of department staff to accommodate construction. The entire PSO Department will temporarily relocate to Cubberley Community Center Room H-5 for the duration of the project. This move will provide space in the building for other temporary office relocations that are necessary for construction. Bid Process Notices inviting formal bids for the City Hall Remodel Project were posted at City Hall and sent to 32 contractors on April 18, 2014. The bidding period was 19 days. Bids were received from one qualified contractor on May 6, 2014. Summary of Bid Process Bid Name/Number City Hall Remodel Project –IFB 153838 Proposed Length of Project 225 calendar days Number of Bid Packages Mailed to Contractors 32 Number of Builder’s Exchanges receiving Bid Packages 0 Total Days to Respond to Bid 19 Pre-Bid Meeting April 23, 2014 Number of Company Attendees at Pre-Bid Meeting 10 firms attended of which 5 were General Contractors and 5 were Subcontractors Number of Bids Received: 1 Base Bid Price Range $2,664,000 City of Palo Alto Page 6 *The submitted bid form from D.L. Falk is provided as Attachment D. Staff reviewed the bid submitted and recommends that D.L. Falk Construction be declared the lowest responsible bidder. Staff recommends that the City award the Base Bid ($2,664,000) plus Add Alternates 1 through 6 ($54,350)for a total contract award amount of $2,718,350. The base bid is approximately 19% above the construction cost estimate for the scope of work included. Staff believes that the busy local construction industry has resulted in higher prices and the higher bid is still reasonable for the complex nature of this project. Staff also inquired as to why other contractors did not submit bids. Smaller firms indicated that bonds for projects over $1.5 million are difficult to obtain. One firm that worked on City Hall previously indicated they no longer bid on public projects. Another unionized firm indicated they did not think they could prepare a competitive bid for a non-prevailing wage project. Others said the project did not fit their schedule. A contingency amount of $271,835 equal to 10 percent of the total contract is requested for unforeseen conditions which may be discovered during construction. With renovation of an existing facility, there is a high likelihood of additional required repairs or system replacement triggered by the base construction. In addition, due to the time constraints placed upon the contractors to complete their work during off hours, the majority of change orders will be billed at a premium rate for night or weekend work. Staff confirmed with the Contractor’s State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found that their projects were similar to this project and were completed to the satisfaction of the owners. WMB Contract –Construction Administration The contract amendment with the design architect, WMB Architects (Attachment B) will provide for the architect’s general construction administration oversight during project work. As the designer of record, WMB Architects will respond to design questions and issues raised by the contractor, attend meetings at the job site,make construction observations, review material submittals, and assist in the preparation of the record documents at the completion of City of Palo Alto Page 7 construction. The contract also includes work related to wayfinding signage design for the exterior and interior areas of the City Hall complex. The signage fabrication and installation will be let as a separate invitation for bid (IFB) to be awarded to a specialty contractor in late summer or early fall. Timeline The construction of the architectural upgrades to City Hall are to be completed in four phases. The first phase encompases the majority of the work for the first floor and the duration is anticipated to be ninety days. The subsequent three remaining phases at forty-five days each will be used for work on the mezzanine level and second floors. Note that some construction in the first floor lobby may be delayed towards the end of the project to keep the current Council Conference Room available for meetings during Phase 1 and to allow for construction to include a new public art display on the large lobby wall near the main building entrance. Resource Impact Funding for this project has been allocated in several capital projects, including: City Hall First Floor Renovations (PE-12017), Facility Interior Finishes Replacement (PF-02022), and Council Chambers Carpet (PF-11001). Remaining funding from the Civic Center Infrastructure Upgrade project (PF-01002) will also be used for the project. All of these projects are budgeted in the Capital Improvement Fund, which receives the majority of its funding from the annual General Fund transfer. As referenced earlier in the staff report, the bids for the project came in higher than previously estimated as a result of the local construction environment, the public art element, and changes in scope. In order to complete the project, a Budget Amendment Ordinance (BAO) is required. The Budget Amendment Ordinance recommended as part of this report would increase the City Hall First Floor Renovations project by $1,607,109. This increase would allow for the construction contract, contingency, design fees, wayfinding systems construction, furniture, temporary office space, permit fees, architectural construction administration, and a portion of the public art costs. Offsetting the increased costs would be transfers from various funding sources, resulting in no reduction to the Infrastructure Reserve. The transfers from other funding sources, which will recover each fund’s respective fair share of the costs, will enable a return of City of Palo Alto Page 8 funds to the Infrastructure Reserve upon completion of the project. In determining the amounts and funding sources for the BAO, staff carefully reviewed the bid and the work units benefitting from the work. A concerted effort has been made to align the cost of the project to the benefitting department/fund. For example, the cost of renovating the space to meet the functional requirements of the Utilities Department will be charged to the Utility Funds. Similarly, the cost of improving the Information Technology Department’s space will be charged to the Technology Fund, while the cost of improving the Administrative Services and People Strategies and Operations Departments will be charged to the Capital Improvement Fund. Much of the work involves improvements to common areas. The common area costs can be divided into two categories: the first floor community room and improvements to the rest of the facility that do not primarily benefit one exclusive department. As part of the BAO, the cost of the new community room is recommended to be charged to the Community Center Development Impact Fee Fund. The remaining common areas are charged to the Capital Improvement Fund, with the City’s various Enterprise Funds paying a share proportionate to their anticipated utilization of space in City Hall. It should be noted that after accounting for the transfers from the various Utility Funds, Technology Fund, and the Community Center Development Impact Fee Fund, some portion of the funding in the Capital Improvement Fund is expected to be returned to the Infrastructure Reserve. A summary of the funding sources, as well as anticipated uses, is included in the table on the following page. Summary of Project Funding Existing Funding Source (from Capital Improvement Fund) Amount allocated City Hall First Floor Renovations (PE-12017)$2,183,733 Facility Interior Finishes Replacement (PF-02022)$380,000 Council Chambers Carpet (PF-11001)$80,000 Civic Center Infrastructure Upgrade (PF-01002)$61,643 Total Current Funding $2,705,376 City of Palo Alto Page 9 Funding Source (BAO)Amount allocated Transfer from Community Center Development Impact Fee Fund $686,298 Transfer from Electric Fund $133,687 Transfer from Gas Fund $133,687 Transfer from Wastewater Collection Fund $133,687 Transfer from Water Fund $133,687 Transfer from Fiber Optics Fund $133,687 Transfer from Technology Fund $499,335 Total New Funding $1,854,068 Total Project Funding $4,559,444 Summary of Project Expenditures Construction Contract $2,718,350 Contract Contingency (10%)$271,835 Design Fees $278,285 Architectural Construction Administration $141,565 Public Art $150,000 Furniture $300,000 Wayfinding Systems Construction $307,450 Other $145,000 Total Project Expenditures $4,312,485 Anticipated Return to Infrastructure Reserve $246,959 Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review This project is categorically exempt from California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary. Attachments: ·A -D.L. Falk Construction Contract (PDF) City of Palo Alto Page 10 ·B -WMB Architects Contract Amendment No. 2 (PDF) ·C -BAO -City Hall Remodel (DOC) ·D -D.L. Falk Bid Form (PDF)     Invitation for Bid (IFB) Package  1 Rev. January 2014  CONSTRUCTION CONTRACT                      CONSTRUCTION CONTRACT    Contract No. C14153838        City of Palo Alto    And    D.L. Falk Construction, Inc.    PROJECT  City Hall Remodel Project         Invitation for Bid (IFB) Package  2 Rev. January 2014  CONSTRUCTION CONTRACT    CONSTRUCTION CONTRACT  TABLE OF CONTENTS    SECTION 1  INCORPORATION OF RECITALS AND DEFINITIONS. ......................................................... 5  1.1 Recitals. ................................................................................................................................................... 5  1.2 Definitions. ............................................................................................................................................ 5  SECTION 2  THE PROJECT. .................................................................................................................... 5  SECTION 3  THE CONTRACT DOCUMENTS. ......................................................................................... 6  SECTION 4  CONTRACTOR’S DUTY. ...................................................................................................... 7  SECTION 5  PROJECT TEAM. ................................................................................................................. 7  6.1 Time Is of Essence. .............................................................................................................................. 7  6.2 Commencement of Work. ................................................................................................................ 7  6.3 Contract Time. ...................................................................................................................................... 7  6.4 Liquidated Damages. .......................................................................................................................... 8  6.4.1       Other Remedies. ....................................................................................................... 8    6.5 Adjustments to Contract Time. ....................................................................................................... 8  SECTION 7  COMPENSATION TO CONTRACTOR. ................................................................................ 8  7.1 Contract Sum. ....................................................................................................................................... 8  7.2 Full Compensation. ............................................................................................................................. 8  SECTION 8  STANDARD OF CARE. ........................................................................................................ 9  SECTION 9  INDEMNIFICATION. ........................................................................................................... 9  9.1 Hold Harmless. ..................................................................................................................................... 9  9.2 Survival. .................................................................................................................................................. 9  SECTION 10  NONDISCRIMINATION. ................................................................................................... 9  SECTION 11  INSURANCE AND BONDS. ............................................................................................... 9  SECTION 12  PROHIBITION AGAINST TRANSFERS............................................................................... 10  SECTION 13 NOTICES ……………………………………………………………………………………………………………………. 10  13.1 Method of Notice ………………………………………………………………………………………………………………10  13.2 Notice Recipents ……………………………………………………………………………………………………………….10  13.3 Change of Address. ........................................................................................................................... 11  SECTION 14  DEFAULT. ......................................................................................................................... 11      Invitation for Bid (IFB) Package  3 Rev. January 2014  CONSTRUCTION CONTRACT    14.1 Notice of Default. .............................................................................................................................. 11  14.2 Opportunity to Cure Default. ........................................................................................................ 11  SECTION 15  CITY'S RIGHTS AND REMEDIES. ...................................................................................... 12  15.1 Remedies Upon Default. ................................................................................................................. 12  15.1.1   Delete Certain Services. .......................................................................................... 12  15.1.2   Perform and Withhold. ........................................................................................... 12  15.1.3   Suspend The Construction Contract. .................................................................... 12  15.1.5   Invoke the Performance Bond. .............................................................................. 12  15.1.6   Additional Provisions. ............................................................................................. 12    15.2 Delays by Sureties. ............................................................................................................................ 12  15.3 Damages to City. ................................................................................................................................ 13  15.3.1   For Contractor's Default. ........................................................................................ 13  15.3.2   Compensation for Losses. ...................................................................................... 13    15.4 Suspension by City ............................................................................................................................ 13   15.4.1  Suspension for Convenience. .......................................................................................... 13  15.5 Termination Without Cause. ......................................................................................................... 14  15.5.1   Compensation. ......................................................................................................... 14  15.5.2   Subcontractors. ........................................................................................................ 14  15.6 Contractor’s Duties Upon Termination. ..................................................................................... 14  SECTION 16  CONTRACTOR'S RIGHTS AND REMEDIES. ...................................................................... 15  16.1 Contractor’s Remedies. ................................................................................................................... 15  16.1.1   For Work Stoppage. ................................................................................................. 15  16.1.2   For City's Non‐Payment. ......................................................................................... 15    16.2 Damages to Contractor. .................................................................................................................. 15  SECTION 17  ACCOUNTING RECORDS. ................................................................................................ 15  17.1 Financial Management and City Access. ................................................................................... 15  17.2 Compliance with City Requests. ................................................................................................... 16  SECTION 18  INDEPENDENT PARTIES. ................................................................................................. 16  SECTION 19  NUISANCE. ...................................................................................................................... 16  SECTION 20  PERMITS AND LICENSES. ................................................................................................ 16  SECTION 21  WAIVER. .......................................................................................................................... 16  SECTION 22  GOVERNING LAW AND VENUE. ...................................................................................... 16      Invitation for Bid (IFB) Package  4 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 23  COMPLETE AGREEMENT. ................................................................................................ 17  SECTION 24  SURVIVAL OF CONTRACT. ............................................................................................... 17  SECTION 25  PREVAILING WAGES. ...................................................................................................... 17  SECTION 26  NON APPROPRIATION. ................................................................................................... 17  SECTION 27  AUTHORITY. .................................................................................................................... 17  SECTION 28  COUNTERPARTS .............................................................................................................. 18  SECTION 29  SEVERABILITY. ................................................................................................................. 18  SECTION 30  STATUTORY AND REGULATORY REFERENCES . ............................................................. 18  SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. ................................................................ 18                     Invitation for Bid (IFB) Package  5 Rev. January 2014  CONSTRUCTION CONTRACT    CONSTRUCTION CONTRACT    THIS CONSTRUCTION CONTRACT entered into on June 5, 2014 (“Execution Date”) by and between the CITY  OF PALO ALTO, a California chartered municipal corporation ("City"), and D.L. Falk Construction, Inc.  ("Contractor"), is made with reference to the following:    R E C I T A L S:    A. City is a municipal corporation duly organized and validly existing under the laws of the State of  California with the power to carry on its business as it is now being conducted under the statutes of the  State of California and the Charter of City.    B. Contractor is a California Corporation duly organized and in good standing in the State of  California, Contractor’s License Number 683837. Contractor represents that it is duly licensed by the State  of California and has the background, knowledge, experience and expertise to perform the obligations set  forth in this Construction Contract.    C. On April 18, 2014, City issued an Invitation for Bids (IFB) to contractors for the City Hall Remodel  Project (“Project”).  In response to the IFB, Contractor submitted a Bid.    D. City and Contractor desire to enter into this Construction Contract for the Project, and other  services as identified in the Contract Documents for the Project upon the following terms and conditions.    NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth  and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, it is mutually agreed by and between the undersigned parties as follows:    SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.    1.1 Recitals.    All of the recitals are incorporated herein by reference.    1.2 Definitions.    Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the  General Conditions.  If there is a conflict between the definitions in this Construction Contract and  in the General Conditions, the definitions in this Construction Contract shall prevail.  SECTION 2 THE PROJECT.    The Project is the City Hall Remodel Project, located at 250 Hamilton Avenue, Palo Alto, CA. 94301  ("Project").        Invitation for Bid (IFB) Package  6 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 3 THE CONTRACT DOCUMENTS.    3.1  List of Documents.  The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist  of the following documents which are on file with the Purchasing Division and are hereby incorporated by  reference.       1) Change Orders    2) Field Orders    3) Contract    4) Bidding Addenda    5) Special Provisions    6) General Conditions    7)    Project Plans and Drawings    8)    Technical Specifications    9) Instructions to Bidders    10) Invitation for Bids    11) Contractor's Bid/Non‐Collusion Affidavit    12)   Reports listed in the Contract Documents    13)   Public Works Department’s Standard Drawings and Specifications (most current version at  time of Bid)    14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current  version at time of Bid)    15)  City of Palo Alto Traffic Control Requirements    16)  City of Palo Alto Truck Route Map and Regulations    17) Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐ Qualification Checklist (if applicable)    18) Performance and Payment Bonds    3.2  Order of Precedence.    For the purposes of construing, interpreting and resolving inconsistencies between and among the  provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the  preceding section.  If a claimed inconsistency cannot be resolved through the order of precedence, the City      Invitation for Bid (IFB) Package  7 Rev. January 2014  CONSTRUCTION CONTRACT    shall have the sole power to decide which document or provision shall govern as may be in the best  interests of the City.  SECTION 4 CONTRACTOR’S DUTY.    Contractor agrees to perform all of the Work required for the Project, as specified in the Contract  Documents, all of which are fully incorporated herein.  Contractor shall provide, furnish, and supply all  things necessary and incidental  for the timely performance and completion of the Work, including, but not  limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless  otherwise specified in the Contract Documents.  Contractor also agrees to use its best efforts to complete  the Work in a professional and expeditious manner and to meet or exceed the performance standards  required by the Contract Documents.  SECTION 5 PROJECT TEAM.    In addition to Contractor, City has retained, or may retain, consultants and contractors to provide  professional and technical consultation for the design and construction of the Project.  The Contract  requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other  members of the Project Team and other contractors retained by City to construct other portions of the  Project.    SECTION 6 TIME OF COMPLETION.    6.1 Time Is of Essence.    Time is of the essence with respect to all time limits set forth in the Contract Documents.    6.2 Commencement of Work.    Contractor shall commence the Work on the date specified in City’s Notice to Proceed.       6.3 Contract Time.    Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be  completed    not later than      .   within 225  calendar days () after the commencement date specified in City’s Notice to  Proceed.    By executing this Construction Contract, Contractor expressly waives any claim for delayed early  completion.      Invitation for Bid (IFB) Package  8 Rev. January 2014  CONSTRUCTION CONTRACT    6.4 Liquidated Damages.  Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial  Completion of the entire Work within the Contract Time, including any approved extensions  thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in  achieving Substantial Completion, based on the amount of Five Hundred dollars ($500.00) per  day, or as otherwise specified in the Special Provisions. Liquidated damages may also be  separately assessed for failure to meet milestones specified elsewhere in the Contract  Documents, regardless of impact on the time for achieving Substantial Completion.  The  assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of  the amount of damages City will suffer by delay in completion of the Work.  The City is entitled to  setoff the amount of liquidated damages assessed against any payments otherwise due to  Contractor, including, but not limited to, setoff against release of retention.  If the total amount of  liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to  recover the balance from Contractor or its sureties.  Occupancy or use of the Project in whole or in  part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess  liquidated damages.    6.4.1 Other Remedies.    City is entitled to any and all available legal and equitable remedies City may have where City’s  Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion  of the entire Work within the Contract Time.    6.5 Adjustments to Contract Time.    The Contract Time may only be adjusted for time extensions approved by City and memorialized  in a Change Order approved in accordance with the requirements of the Contract Documents.  SECTION 7 COMPENSATION TO CONTRACTOR.     7.1 Contract Sum.    Contractor shall be compensated for satisfactory completion of the Work in compliance with the  Contract Documents the Contract Sum of two million seven hundred eighteen three hundred fifty  Dollars ($2,718,350).      [This amount includes the Base Bid of $2,664,000 and Additive Alternates 1 for  $7,800, Additive Alternate 2 for $13,400, Additive Alternate 3 for $5,050,  Additive Alternate 4 for $3,000, Additive Alternate 5 for $17,200, and Additive  Alternate 6 for $7,900.]    7.2 Full Compensation.    The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor  and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all  Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties  or obstructions which may arise or be encountered in performance of the Work until its Acceptance by  City, all risks connected with the Work, and any and all expenses incurred due to suspension or  discontinuance of the Work, except as expressly provided herein.  The Contract Sum may only be adjusted  for Change Orders approved in accordance with the requirements of the Contract Documents.           Invitation for Bid (IFB) Package  9 Rev. January 2014  CONSTRUCTION CONTRACT      SECTION 8 STANDARD OF CARE.    Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised  personnel.  All services performed in connection with this Construction Contract shall be performed in a  manner consistent with the standard of care under California law applicable to those who specialize in  providing such services for projects of the type, scope and complexity of the Project.     SECTION 9 INDEMNIFICATION.    9.1 Hold Harmless.    To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its  City Council, boards and commissions, officers, agents, employees, representatives and volunteers  (hereinafter individually referred to as an “Indemnitee” and collectively referred to as  "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss,  damage, claims, expenses (including, without limitation, attorney fees, expert witness fees,  paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every  nature arising out of or in connection with the acts or omissions of Contractor, its employees,  Subcontractors, representatives, or agents, in performing the Work or its failure to comply with  any of its obligations under the Contract, except such Liability caused by the active negligence,  sole negligence, or willful misconduct of an Indemnitee.  Contractor shall pay City for any costs  City incurs to enforce this provision.  Except as provided in Section 9.2 below, nothing in the  Contract Documents shall be construed to give rise to any implied right of indemnity in favor of  Contractor against City or any other Indemnitee.    Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of  any third‐party claim relating to the Contract.    9.2 Survival.    The provisions of Section 9 shall survive the termination of this Construction Contract.    SECTION 10 NONDISCRIMINATION.    As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of  this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,  gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,  familial status, weight or height of such person. Contractor acknowledges that it has read and understands  the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination  Requirements and the penalties for violation thereof, and will comply with all requirements of Section  2.30.510 pertaining to nondiscrimination in employment.    SECTION 11 INSURANCE AND BONDS.    Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with  evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all  requirements in Article 11 of the General Conditions.          Invitation for Bid (IFB) Package  10 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 12 PROHIBITION AGAINST TRANSFERS.    City is entering into this Construction Contract in reliance upon the stated experience and qualifications of  the Contractor and its Subcontractors set forth in Contractor’s Bid.  Accordingly, Contractor shall not  assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by  operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or  transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract  and grounds for default in addition to any other legal or equitable remedy available to the City.    The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of  Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor  is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of  Contractor, shall be construed as an assignment of this Construction Contract. Control means more than  fifty percent (50%) of the voting power of the corporation or other entity.     SECTION 13 NOTICES.    13.1 Method of Notice.    All notices, demands, requests or approvals to be given under this Construction Contract shall be given in  writing and shall be deemed served on the earlier of the following:  (i) On the date delivered if delivered personally;  (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and   addressed as hereinafter provided;   (iii) On the date sent if sent by facsimile transmission;   (iv) On the date sent if delivered by electronic mail; or   (v) On the date it is accepted or rejected if sent by certified mail.     13.2 Notice Recipients.     All notices, demands or requests (including, without limitation, Change Order Requests and  Claims) from Contractor to City shall include the Project name and the number of this  Construction Contract and shall be addressed to City at:      To City:  City of Palo Alto     City Clerk     250 Hamilton Avenue     P.O. Box 10250     Palo Alto, CA 94303     Copy to:   City of Palo Alto     Public Works Administration     250 Hamilton Avenue     Palo Alto, CA 94301     Attn: Matt Raschke        AND    [Include Construction Manager, If Applicable.]       City of Palo Alto     Utilities Engineering     250 Hamilton Avenue      Invitation for Bid (IFB) Package  11 Rev. January 2014  CONSTRUCTION CONTRACT       Palo Alto, CA 94301     Attn:             In addition, copies of all Claims by Contractor under this Construction Contract shall be provided  to the following:    Palo Alto City Attorney’s Office  250 Hamilton Avenue  P.O. Box 10250  Palo Alto, California 94303       All Claims shall be delivered personally or sent by certified mail.    All notices, demands, requests or approvals from City to Contractor shall be addressed to:    D.L. Falk Construction, Inc.  3526 Investment Blvd.  Hayward, CA 94545  Attn: David L. Falk      13.3 Change of Address.    In advance of any change of address, Contractor shall notify City of the change of address in  writing.  Each party may, by written notice only, add, delete or replace any individuals to whom  and addresses to which notice shall be provided.    SECTION 14 DEFAULT.    14.1 Notice of Default.    In the event that City determines, in its sole discretion, that Contractor has failed or refused to  perform any of the obligations set forth in the Contract Documents, or is in breach of any  provision of the Contract Documents, City may give written notice of default to Contractor in the  manner specified for the giving of notices in the Construction Contract, with a copy to  Contractor’s performance bond surety.    14.2 Opportunity to Cure Default.  Except for emergencies, Contractor shall cure any default in performance of its obligations under  the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)  after receipt of written notice. However, if the breach cannot be reasonably cured within such  time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as  City may reasonably require) and will diligently and continuously prosecute such cure to  completion within a reasonable time, which shall in no event be later than ten (10) Days after  receipt of such written notice.        Invitation for Bid (IFB) Package  12 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 15 CITY'S RIGHTS AND REMEDIES.    15.1 Remedies Upon Default.    If Contractor fails to cure any default of this Construction Contract within the time period set forth  above in Section 14, then City may pursue any remedies available under law or equity, including,  without limitation, the following:    15.1.1 Delete Certain Services.    City may, without terminating the Construction Contract, delete certain portions of the Work,  reserving to itself all rights to Losses related thereto.    15.1.2 Perform and Withhold.    City may, without terminating the Construction Contract, engage others to perform the Work or  portion of the Work that has not been adequately performed by Contractor and withhold the cost  thereof to City from future payments to Contractor, reserving to itself all rights to Losses related  thereto.    15.1.3 Suspend The Construction Contract.    City may, without terminating the Construction Contract and reserving to itself all rights to Losses  related thereto, suspend all or any portion of this Construction Contract for as long a period of  time as City determines, in its sole discretion, appropriate, in which event City shall have no  obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor  for damages if City directs Contractor to resume Work.    15.1.4 Terminate the Construction Contract for Default.    City shall have the right to terminate this Construction Contract, in whole or in part, upon the  failure of Contractor to promptly cure any default as required by Section 14.  City’s election to  terminate the Construction Contract for default shall be communicated by giving Contractor a  written notice of termination in the manner specified for the giving of notices in the Construction  Contract.  Any notice of termination given to Contractor by City shall be effective immediately,  unless otherwise provided therein.    15.1.5 Invoke the Performance Bond.    City may, with or without terminating the Construction Contract and reserving to itself all rights to  Losses related thereto, exercise its rights under the Performance Bond.    15.1.6 Additional Provisions.    All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in  addition to those rights and remedies available in law or in equity.  Designation in the Contract  Documents of certain breaches as material shall not waive the City’s authority to designate other  breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the  City from terminating the Agreement for breaches that are not material.  City’s determination of  whether there has been noncompliance with the Construction Contract so as to warrant exercise  by City of its rights and remedies for default under the Construction Contract, shall be binding on  all parties.  No termination or action taken by City after such termination shall prejudice any other  rights or remedies of City provided by law or equity or by the Contract Documents upon such  termination; and City may proceed against Contractor to recover all liquidated damages and  Losses suffered by City.    15.2 Delays by Sureties.          Invitation for Bid (IFB) Package  13 Rev. January 2014  CONSTRUCTION CONTRACT    Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange  for completion of the Work in accordance with the Performance Bond, within seven (7) calendar  days from the date of the notice of termination, Contractor’s surety shall be deemed to have  waived its right to complete the Work under the Contract, and City may immediately make  arrangements for the completion of the Work through use of its own forces, by hiring a  replacement contractor, or by any other means that City determines advisable under the  circumstances.  Contractor and its surety shall be jointly and severally liable for any additional cost  incurred by City to complete the Work following termination.  In addition, City shall have the right  to use any materials, supplies, and equipment belonging to Contractor and located at the  Worksite for the purposes of completing the remaining Work.    15.3 Damages to City.    15.3.1 For Contractor's Default.    City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s  default under the Contract Documents.     15.3.2 Compensation for Losses.   In the event that City's Losses arise from Contractor’s default under the Contract Documents, City  shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor.   If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the  difference and shall promptly remit same to City.    15.4 Suspension by City      15.4.1 Suspension for Convenience.    City may, at any time and from time to time, without cause, order Contractor, in writing, to  suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an  aggregate of fifty percent (50%) of the Contract Time.  The order shall be specifically identified as  a Suspension Order by City.  Upon receipt of a Suspension Order, Contractor shall, at City’s  expense, comply with the order and take all reasonable steps to minimize costs allocable to the  Work covered by the Suspension Order.  During the Suspension or extension of the Suspension, if  any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered  by the Suspension Order.  If a Suspension Order is canceled or expires, Contractor shall resume  and continue with the Work.  A Change Order will be issued to cover any adjustments of the  Contract Sum or the Contract Time necessarily caused by such suspension.    A Suspension Order  shall not be the exclusive method for City to stop the Work.    15.4.2 Suspension for Cause.  In addition to all other remedies available to City, if Contractor fails to perform or correct work in  accordance with the Contract Documents, City may immediately order the Work, or any portion  thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction.   Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension  occasioned by Contractor’s failure to comply with the Contract Documents.  City’s right to  suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend  the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of  the Contract Documents.      Invitation for Bid (IFB) Package  14 Rev. January 2014  CONSTRUCTION CONTRACT    15.5 Termination Without Cause.    City may, at its sole discretion and without cause, terminate this Construction Contract in part or  in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s  expense, comply with the notice and take all reasonable steps to minimize costs to close out and  demobilize.  The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole  and exclusive compensation for such termination and Contractor waives any claim for other  compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue,  lost opportunity, or other consequential, direct, indirect or incidental damages of any kind  resulting from termination without cause.  Termination pursuant to this provision does not relieve  Contractor or its sureties from any of their obligations for Losses arising from or related to the  Work performed by Contractor.     15.5.1 Compensation.    Following such termination and within forty‐five (45) Days after receipt of a billing from  Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the  following to Contractor as Contractor’s sole compensation for performance of the Work :    .1 For Work Performed.  The amount of the Contract Sum allocable to the portion of the  Work properly performed by Contractor as of the date of termination, less sums previously paid to  Contractor.    .2 For Close‐out Costs.  Reasonable costs of Contractor and its Subcontractors:  (i) Demobilizing and  (ii) Administering the close‐out of its participation in the Project (including, without  limitation, all billing and accounting functions, not including attorney or expert fees) for a  period of no longer than thirty (30) Days after receipt of the notice of termination.    .3 For Fabricated Items.  Previously unpaid cost of any items delivered to the Project Site  which were fabricated for subsequent incorporation in the Work.    .4 Profit Allowance.    An allowance for profit calculated as four percent (4%) of the sum of  the above items, provided Contractor can prove a likelihood that it would have made a profit if  the Construction Contract had not been terminated.    15.5.2 Subcontractors.      Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts  permitting termination for convenience by Contractor on terms that are consistent with this  Construction Contract and that afford no greater rights of recovery against Contractor than are  afforded to Contractor against City under this Section.    15.6 Contractor’s Duties Upon Termination.    Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the  notice directs otherwise, do the following:  (i) Immediately discontinue the Work to the extent specified in the notice;  (ii) Place no further orders or subcontracts for materials, equipment, services or facilities,  except as may be necessary for completion of such portion of the Work that is not  discontinued;  (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the  notice of termination, of all subcontracts, purchase orders and contracts that are  outstanding, including, without limitation, the terms of the original price, any changes,  payments, balance owing, the status of the portion of the Work covered and a copy of      Invitation for Bid (IFB) Package  15 Rev. January 2014  CONSTRUCTION CONTRACT    the subcontract, purchase order or contract and any written changes, amendments or  modifications thereto, together with such other information as City may determine  necessary in order to decide whether to accept assignment of or request Contractor to  terminate the subcontract, purchase order or contract;  (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions  thereof, that City elects to accept by assignment and cancel, on the most favorable terms  reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,  that City does not elect to accept by assignment; and  (v) Thereafter do only such Work as may be necessary to preserve and protect Work already  in progress and to protect materials, plants, and equipment on the Project Site or in  transit thereto.  Upon termination, whether for cause or for convenience, the provisions of the Contract  Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees,  submittals of as‐built drawings, instructions, or manuals, or other such rights and obligations  arising prior to the termination date.    SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES.    16.1 Contractor’s Remedies.    Contractor may terminate this Construction Contract only upon the occurrence of one of the  following:    16.1.1 For Work Stoppage.     The Work is stopped for sixty (60) consecutive Days, through no act or fault of  Contractor, any  Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of  an order of a court or other public authority other than City having jurisdiction or due to an act of  government, such as a declaration of a national emergency making material unavailable.  This  provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension  notice issued either for cause or for convenience.    16.1.2 For City's Non‐Payment.     If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of  notice from Contractor, Contractor may terminate the Construction Contract (30) days following a  second notice to City of Contractor’s intention to terminate the Construction Contract.    16.2 Damages to Contractor.   In the event of termination for cause by Contractor, City shall pay Contractor the sums provided  for in Paragraph 15.5.1 above.  Contractor agrees to accept such sums as its sole and exclusive  compensation and agrees to waive any claim for other compensation or Losses, including, but not  limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,  direct, indirect and incidental damages, of any kind.  SECTION 17 ACCOUNTING RECORDS.    17.1 Financial Management and City Access.    Contractor shall keep full and detailed accounts and exercise such controls as may be necessary  for proper financial management under this Construction Contract in accordance with generally  accepted accounting principles and practices. City and City's accountants  during normal business  hours, may  inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports,  ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase      Invitation for Bid (IFB) Package  16 Rev. January 2014  CONSTRUCTION CONTRACT    orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these  documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution  of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by  law.    17.2 Compliance with City Requests.    Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition  precedent to filing or maintenance of any legal action or proceeding by Contractor against City  and to Contractor's right to receive further payments under the Contract Documents.  City many  enforce Contractor’s obligation to provide access to City of its business and other records referred  to in Section 17.1 for inspection or copying by  issuance of a writ or a provisional or permanent  mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such  court, without the necessity of oral testimony.    SECTION 18 INDEPENDENT PARTIES.    Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’  of the other party.  City, its officers or employees shall have no control over the conduct of Contractor or  its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.    SECTION 19 NUISANCE.    Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in  connection in the performance of services under this Construction Contract.    SECTION 20 PERMITS AND LICENSES.    Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall  provide, procure and pay for all licenses, permits, and fees, required by the City or other government  jurisdictions or agencies necessary to carry out and complete the Work.  Payment of all costs and expenses  for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation  shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set  forth in the licenses or permits issued by other agencies.    SECTION 21 WAIVER.    A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be  deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition  contained herein, whether of the same or a different character.    SECTION 22 GOVERNING LAW AND VENUE.    This Construction Contract shall be construed in accordance with and governed by the laws of the State of  California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no  other place.        Invitation for Bid (IFB) Package  17 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 23 COMPLETE AGREEMENT.    This Agreement represents the entire and integrated agreement between the parties and supersedes all  prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended  only by a written instrument, which is signed by the parties.  SECTION 24 SURVIVAL OF CONTRACT.    The provisions of the Construction Contract which by their nature survive termination of the Construction  Contract or Final Completion, including, without limitation, all warranties, indemnities, payment  obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect  after Final Completion or any termination of the Construction Contract.  SECTION 25 PREVAILING WAGES.          This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in  the performance and implementation of the Project, because the City, pursuant to its authority as a  chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages.  The City  invokes the exemption from the state prevailing wage requirement for this Project and declares that the  Project is funded one hundred percent (100%) by the City of Palo Alto.  This Project remains subject to all  other applicable provisions of the California Labor Code and regulations promulgated thereunder.    Or     The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the  California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.   Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has  obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work  in this locality for each craft, classification, or type of worker needed to execute the contract for this  Project from the Director of the Department of Industrial Relations.  Copies of these rates may be obtained  at the Purchasing Office of the City of Palo Alto.  Contractor shall provide a copy of prevailing wage rates to  any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a  minimum.  Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of  the Labor Code.  SECTION 26 NON APPROPRIATION.    This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto  Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the  event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time  within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds  for this Construction Contract are no longer available.  This section shall take precedence in the event of a  conflict with any other covenant, term, condition, or provision of this Agreement.   SECTION 27 AUTHORITY.    The individuals executing this Agreement represent and warrant that they have the legal capacity and  authority to do so on behalf of their respective legal entities.        Invitation for Bid (IFB) Package  18 Rev. January 2014  CONSTRUCTION CONTRACT    SECTION 28 COUNTERPARTS    This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,  constitute a single binding agreement.  SECTION 29 SEVERABILITY.    In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,  legality and enforceability of the remaining provisions shall not be affected.    SECTION 30 STATUTORY AND REGULATORY REFERENCES.      With respect to any amendments to any statutes or regulations referenced in these Contract Documents,  the reference is deemed to be the version in effect on the date that the Contract was awarded by City,  unless otherwise required by law.    SECTION 31 WORKERS’ COMPENSATION CERTIFICATION.      Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: “I am aware  of the provisions of Section 3700 of the Labor Code which require every employer to be insured against  liability for workers’ compensation or to undertake self‐insurance in accordance with the provisions of that  code, and I will comply with such provisions before commencing the performance of the Work on this  Contract.”    IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the   date and year first above written.         CITY OF PALO ALTO    ____________________________   Purchasing Manager   City Manager      APPROVED AS TO FORM:    ____________________________  Senior Asst. City Attorney    APPROVED:    ____________________________  Public Works Director      D. L. Falk Construction, Inc.    By:___________________________    Name:__David L. Falk____________    Title:____President _____________    Date: _________________________        AMENDMENT NO.2 TO CONTRACT NO. C12144101 BETWEEN THE CITY OF PALO ALTO AND WMB ARCHITECTS, INC. This Amendment No.2 ("Amendment") to Contract No. C12144101 ("Contract") is entered into and made effective on June _,2014, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and WMB Architects, Inc., a California Corporation, located at 5757 Pacific Avenue, Suite 226, Stockton, CA 95207, ("CONSULTANT"). RECIT ALS WHEREAS, the Contract was entered into between the parties for the provision of professional design services relating to the City Hall Remodel Project ("Project"); and WHEREAS, on September 16, 2013, the parties amended the Contract to add $105,974 of compensation for a total Contract amount not to exceed $284,691; and WHEREAS, the parties seek by this Amendment No.2 to increase the scope of services, schedule of performance, and compensation; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section A of RECITALS is hereby amended to read as follows: "A. CITY intends to implement the City Hall Renovation Project ("Project") and desires to engage a consultant to provide professional architectural design services and construction administration services for architectural upgrades in connection with the Project ("Services")." SECTION 2. Section 4 of the Contract, NOT TO EXCEED COMPENSATION, Paragraph 1, is hereby amended to read as follows: "The compensation to be paid to CONSULT ANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Three Hundred Eighty-Seven Thousand Five Hundred Five Dollars [$387,505.00]. In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed Four Hundred Twenty-Six Thousand Two Hundred Fifty·Six Dollars [$426,256.00]. The applicable rates and schedule of payment are set out in Exhibit "C-2", entitled "CONSTRUCTION ADMINISTRATION FEE SCHEDULE", which is attached to and make a part of this Agreement." 1 Revision April 28, 2014 SECTION 4. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit "A" entitled "Scope of Work". b. Exhibit "B" entitled "Schedule". c. Exhibit "C" entitled "Compensation". SECTION 5. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO WMB Architects, Inc. City Manager ::!!:~ APPROVED AS TO FORM: Title: nZW/ectOr Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": SCOPE OF PROJECT TIME SCHEDULE COMPENSATION SCHEDULE 2 Revision Apli12S, 2014 EXHIBIT “A” - SCOPE OF WORK CONTRACT C12144101 - AMENDMENT No. 2 CIP PROJECT PE-12017 Task 1: City Hall Lobby Design Modifications The Lobby is intended to serve as a space that welcomes members of the public to the building and helps direct them to their destination within City Hall. The Lobby should also be modified to better accommodate the display of public art and to create opportunities for small, informal gatherings of staff and the public. A) Transform the Lobby into an attractive and welcoming space to display public art and facilitate gatherings and events. B) Remove the current furniture and cabinets. C) Refinish walls and design an improved display mounting system to create a more attractive, functional, and safe environment for the display of artwork. D) Establish lighting conducive to displaying art, both on walls and freestanding that allows for safe, easy, and efficient bulb replacement. E) Establish signage and an electronic information kiosk to provide wayfinding information to the public. F) Create paths for foot traffic through the lobby which create protected spaces conducive to small gatherings. G) Design and select furniture and carpets which create space for gatherings & meetings. H) Consider changes to ceiling fixtures to modernize the lobby’s appearance. Task 2: City Hall Council Conference Room Design Modifications The Council Conference Room is intended to serve as a less formal, more intimate meeting space for the Finance Committee and Policy & Services Committee of the City Council, various advisory Boards and Commissions, public gatherings, and to host larger staff meetings. A) Transform the Council Conference Room into a more modern and usable space which will more readily accommodate the multitude of departments and Committees, Boards, and Commissions that utilize the area. B) Explore opportunities to enlarge the existing area via the removal of the existing east wall and incorporation of the adjoining corridor into a larger and more usable meeting space. A structural analysis for this portion of the design will be required. C) Provide room layout and seating arrangements that will improve the interface between Contract C12144101 Amendment No. 2 Page 3 Committee/Board/Commission members and audience members during public meetings. D) Provide flexible room layout and seating arrangements to accommodate a larger number of occupants during public meetings, public multi-media presentations, and staff meetings. E) Design a more modern method for effective presentation delivery to accommodate conferences and public presentations via electronic media. Seating arrangements will be critical to allow for easy viewing of the material presented by both board/commission members as well as audience members. F) Modernize the area utilizing newly-designed lighting, wall coverings, flooring, and furniture. Task 3: City Hall Human Resources Conference Room Design Modifications The Human Resources Conference Room serves as one of the larger staff meeting rooms in City Hall and is used by the City Council for private discussion during closed sessions. A) Transform the Human Resources Conference Room into a more modern and usable space which will more readily accommodate the multitude of departments that utilize the area. B) Design a more modern method for effective presentation delivery to accommodate conferences and small department presentations via electronic media. C) Modernize the area utilizing newly-designed lighting, wall coverings, flooring, and furniture. Task 4: City Hall Wayfinding Design Modifications Existing directional signage in City Hall is sparse and inadequate. The proposed wayfinding modifications should provide a simple, attractive, uniform, intuitive system of signage and other directional elements to assist members of the public to locate the service provider within City Hall that can address their needs and to find their vehicle upon returning to the garage. A) Integrate the signage and an electronic information kiosk from Task 1 into a programmatic and unified City Hall signage program that will readily direct members of the public to service locations throughout the various departments on all levels of City Hall (including the Police Wing); including paths of travel from the exterior of the building. B) Improve signage on the building exterior to direct members of the public to the Police Department offices on Forest Avenue. Coordinate the new signage with the signage on the Downtown Library across the street. C) Provide an easy means of identifying parking locations in the underground City Hall Garage which will readily assist customers in relocating their vehicle. D) Incorporate signage to direct customers from the parking garage to the location of an information kiosk on the First Floor. E) Provide signage and terminology that assists the customer to readily locate the service provider Contract C12144101 Amendment No. 2 Page 4 within City Hall that can address their needs. Integrate service descriptions with department names into unified naming conventions. F) Coordinate the design of informational signage in the elevator lobbies with ongoing efforts by the City Manager’s Office to integrate photographs evocative of the services provided on each floor of the building with the accompanying signage. Task 5: City Hall Way Elevator Cabs Refurbishment A) Upgrade and modernize interior cab panels, including all sides, doors, flooring, and ceiling. B) Provide a more energy-efficient lighting system that will provide softer, more diffused illumination. C) Modernize the signage direction/display systems. Integrate same with Task 4, Wayfinding. D) Enhance the appearance of exterior door panels. Possibilities include integration with Task 4, Wayfinding, as well as including artistic concepts that correlate with department themes associated with that individual floor level. B. SCOPE OF SERVICES 1. Study Phase City Hall is an occupied building and will remain so during the entire design process and through the completion of construction. The Consultant will be responsible for surveying all the various departments and end-users that will be utilizing the areas of refurbishment to effectively address their desired needs and concerns. The study shall identify strategies and alternatives that will provide maximum benefit to endusers and optimize the functionality and usefulness of the work spaces. The analysis and resulting recommendation shall take into account both feasibility and economics. The Consultant shall work with the City’s Project Manager to develop the survey strategy, identify the existing conditions and needs, and develop recommended modifications to meet the critical needs. Consultant shall identify implementation methodologies for the renovation to assist in accommodating existing occupants. Relocation alternatives, rebuilding on a “fast-track” basis, and other alternatives proposed by Consultant shall be considered during this phase to accomplish the work with the least cost and/or minimum disruption to the occupants. Consultant shall present the study with alternates and recommendations to the Project Manager and appropriate departmental managers in the affected work areas for review and comment. Once a decision on approach, alternates, and recommendations is made by the City, the next phase of the project shall commence. 2. Conceptual Design Consultant’s second phase shall be to prepare a preliminary design with estimated construction costs for the City’s review. Consultant shall evaluate all parameters and observations in preparing a conceptual design to accomplish the City’s objectives as outlined in the four tasks described above. A proposed methodology for completing the renovations during time periods of least impact to the functions of the departments will be proposed; along with refining the full scope of the project. Consultant shall provide conceptual (30%) drawings for review and approval and shall attend Contract C12144101 Amendment No. 2 Page 5 meetings with City staff to describe and discuss the elements of the conceptual design. Consultant shall provide a preliminary engineer’s estimate of the construction contract cost for City review at the 30% design stage to aid the City in determining the final scope of work. 3. Construction Documents In the third phase, Consultant shall prepare the construction documents, including plans, technical specifications, an engineer’s estimate, and a preliminary construction schedule which minimizes disruptions to building occupants. Consultant shall prepare the final construction documents for all components defined in the Conceptual Design. Plans and specifications shall be presented to the City at 60% and 90% completion for review and comment. An engineer’s estimate shall be prepared at the 90% design stage. Consultant shall assist the City in obtaining all building permits, and other permits as applicable, required for implementation of the work. 4. Bid and Construction Phase The Consultant shall provide assistance to City staff (e.g. pre-bid meeting with prospective bidders, issuance of addenda, etc.) during the bidding phase of the project. Upon award of a construction contract to a general contractor, the City will negotiate with the Consultant an appropriate scope of work for construction phase services to be provided (e.g. assistance with Requests for Information, review of contractor submittals, review of change order requests, periodic site inspections, preparation of record drawings, etc.). Construction phase services will be added to the Consultant’s contract at the City’s discretion via a contract amendment. C. PROJECT ELEMENTS Preparation Work • City will provide any available existing plans for the City Hall work spaces to be modified during this project. • Consultant will meet with City representatives to develop a schedule for the work. Some tasks will hold a higher priority and may need to be fast tracked in comparison to some of the other tasks. Site Assessment • Consultant will conduct site visits. • Consultant will review and evaluate all available information and determine procedure for acquiring any necessary additional information. Equipment Evaluation • Consultant will evaluate existing lighting for anticipated needs. • Consultant will suggest possible audio/visual equipment to satisfy requirements. Economic Analysis and Feasibility • Consultant will recommend equipment based on functionality and cost. Contract C12144101 Amendment No. 2 Page 6 WORK PLAN ARCHITECTURAL AND ENGINEERING TASK LIST TASK 1: INVESTIGATION PHASE Subtask 1.1 On-site review of existing building documents. Subtask 1.2 On-site verification and measurement of lobby, elevator lobbies and conference rooms, mezzanine and second floor. Subtask 1.3 On-site photographing of existing building areas. Subtask 1.4 CADD input of base floor plans, reflected ceiling plans and interior elevations. Subtask 1.5 CADD input of parking levels and site plan for wayfinding. TASK 2: NEEDS ASSESSMENT PHASE Subtask 2.1 Prepare program survey forms Subtask 2.2 On-site meetings with departmental end-user groups to establish needs for conference spaces and lobby areas Subtask 2.3 On-site meetings with departmental end-user groups to establish needs for wayfinding. Subtask 2.4 Summarize in written and graphic format the needs assessment information. Subtask 2.5 Meet with Project Manager, Project Engineer to review needs assessment data. Subtask 2.6 Working with Project Manager and Project Engineer, refine needs assessment and set priorities. Subtask 2.7 Prepare final Needs Assessment document that will serve as the basis for the design Subtask 2.8 Meet with design team to review completed needs assessment document. TASK 3: CONCEPT DESIGN DEVELOMENT PHASE Subtask 3.1 Utilizing the approved Final Needs Assessment, design team will develop concept design solutions that meet the criteria set forth in the Final Needs Assessment. Design concepts to be illustrated by floor plan(s), reflected ceiling plans, 3 dimensional sketches, interior finish materials samples, AV concepts and modifications to building electrical and mechanical systems Subtask 3.2 Develop concept budget estimates for design options. Subtask 3.3 Meet with City’s Project Manager to review concept design/cost estimates. Subtask 3.4 Prepare base floor plans, reflected ceiling plans and interior elevations of existing conditions. Subtask 3.5 Per Project Managers Direction, Present concept design to City Staff for review and input. Subtask 3.6 Refine concept design documentation and budget estimate incorporating City input. Subtask 3.7 Prepare Concept Design package (30%) for City review and approval. TASK 4: CONSTRUCTION DOCUMENTS PHASE Subtask 4.1 Based on approved concept design and budget, develop construction documents (including plans, specifications, calculations and budget estimate) for plan review, permitting and bidding. Prepare City review packages at 60% and 90%. Subtask 4.2 60% document review meeting with Project Manager and Project Engineer. Subtask 4.3 90% document review meeting with Project Manager and Project Engineer. Subtask 4.4 In-house peer review of documents. Contract C12144101 Amendment No. 2 Page 7 Subtask 4.5 Prepare 100% construction document submittal package. Subtask 4.6 Review meeting with Project Manager and Project Engineer of final construction document package. TASK 5: PLAN REVIEW | PERMITTING PHASE Subtask 5.1 Assist City in submittal of construction documents package for plan review for building permit. Subtask 5.2 Make revisions to construction documents to address plan review comments. Subtask 5.3 Assist City in re-submittal of construction documents package incorporating plan review comments. TASK 6: BIDDING PHASE Subtask 6.1 Provide assistance to City staff during bid process including: attendance at pre-bid meeting, assist City in responding to bid questions, and issue addenda as required. Subtask 6.2 Assist City in review of submitted bids. TASK 7: CONSTRUCTION ADMINISTRATION PHASE (Amendment No. 2) Subtask 7.1 Twenty-four (24) Weekly Construction site meetings with architect (assume 6 months construction timeframe). Subtask 7.2 Six (6) monthly Site visits for mechanical, electrical and audio visual engineers. Subtask 7.3 Process and document as required General Contractor’s Requests for Information (RFI’s). Subtask 7.4 Process product submittals and shop drawings. Subtask 7.5 Review and evaluate substitutions to products and equipment submitted by the General Contractor. Subtask 7.6 General Contractor payment request and progressive lien waiver review. Sub-contractor lien waiver documentation and verification responsibility of the General Contractor. Subtask 7.7 Punch-list site at substantial completion. Develop punch list of items for correction. Follow-up evaluation of punch list items at final completion. Subtask 7.8 Review of General Contractor’s Operations and Maintenance Manual and warranties. Subtask 7.9 Perform project closeout activities and prepare final record plan set from contractor markups. Contract C12144101 Amendment No. 2 Page 8 WORK PLAN WAYFINDING TASKS PARAGRAPH 5.4 SCOPE OF WORK | WORK PLAN PROPOSAL SCOPE OF WORK The Square Peg Proven Project Approach and Design Process Square Peg employs a proven project process and design approach based on a well defined schedule of evaluation, progress and milestone review meetings with the Client and the Design team. The checks and balances built in the this highly collaborative process ensures that the • Vision and goals are clearly understood at the onset of the project • Pertinent information is collected and analyzed • Design work is concepted and refined based on multiple reviews by the Client and Design Team • Documentation is subjected to multiple reviews • One or more of the key sign types are prototyped prior to final production for Client and Design Team approval. • Construction administration and installation oversight services ensure continuity and control throughout the entire process. Square Peg will thoroughly review the existing signing, study circulation etc in preparation to develop a new wayfinding and signing program. The new program will address the following: 1. Integrate the signage and an electronic information kiosk from Task 1 into a programmatic and unified City Hall signage program that will readily direct members of the public to service locations throughout the various departments on all levels of City Hall (including the Police Wing); including paths of travel from the exterior of the building. 2. Improve signage on the building exterior to direct members of the public to the Police Department offices on Forest Avenue. Coordinate the new signage with the signage on the Downtown Library across the street. 3. Provide an easy means of identifying parking locations in the underground City Hall Garage which will readily assist customers in relocating their vehicle. 4. Incorporate signage to direct customers from the parking garage to the location of an information kiosk on the First Floor. 5. Provide signage and terminology that assists the customer to readily locate the service provider within City Hall that can address their needs. Integrate service descriptions with department names into unified naming conventions. 6. Coordinate the design of informational signage in the elevator lobbies with ongoing efforts by the City Manager’s Office to integrate photographs evocative of the services provided on each floor of the building with the accompanying signage. Contract C12144101 Amendment No. 2 Page 9 Based on the scope outline from the RFP and past experience with similar projects we anticipate the scope of signs to include, but is not limited to: Based on the scope outline from the RFP and information gained at the interview with the City, we anticipate the scope of signs may include, but is not limited to: SITE SIGNING  Project/Building Identity Signing  Parking Garage Entrance ID Sign  Directional Signing  Accessibility Signing  Signing at Entry Doors  Entrance ID Signing  Pedestrian Directional & Information Signing  Building Entry Identification Graphics at Entry Doors (Address, HC Accessibility, No Smoking, etc.)  Emergency Assembly Area Signing  Building Address PARKING  Parking Entry ID  Clearance Bar  Vehicular Directional Signing  Pedestrian Directional Signing  Column and Core Graphics  Misc Room ID Signing INTERIOR SIGNING  Orientation Directory/Information Display or Kiosk (Static / Dynamic) - Main Lobby - Secondary Entry Lobbies - Elevator Lobbies at Upper Levels  Floor Level ID in Elevator Lobbies  Floor Level Directories and/or Orientation Maps  Directional Signing  Changeable Displays for Daily Events, Information, etc ( Digital System and/or Static)  Service Window Signing ( Digital System and/or Static)  Informational Signing in Elevator Cabs ( Digital System and/or Static) NOTE: The design process for signing will be closely coordinated with WMB Architects and GB Engineers to insure a well integrated design solution. Contract C12144101 Amendment No. 2 Page 10 Square Peg will explore and incorporate technology as potential solutions at multiple locations throughout the project. A combination of design, cost and evaluation of benefits will be provided to the client with regard to proposed technology solutions as a means to inform the design decisions and approvals. SCOPE EXCLUSIONS Items that are specifically excluded from the scope of work include:  Signing for Non Public Areas such as office areas and back of house: Room Identification Signing Department/Area Identification Office ID Workstation ID Conference Room ID Misc Room ID Back of House Room ID Evacuation Maps at Elevators, Stairs and Exits  Preparation of building floor plans for use in sign location plans. It is assumed that the client will provide SPD with building plans for use in preparation of sign location plans and documents.  Logo design  Print & Amenity design  Sculptures / Feature pieces  Content Design of Digital Media for Digital Displays. Note: SPD can provide content solutions as additional service if requested, or recommend other means of creating and/or obtaining content. Should any of these items be required Square Peg Design can provide them as an additional service. PHASE 1 WAYFINDING STRATEGY AND SCHEMATIC DESIGN During this phase of work, SPD will meet with the Client and consultants to review the project goals, existing design concepts, program criteria, and design influences. This phase shall include, but not limited to, the following tasks and design work: 1. Meet with Client and consultants to review the project goals, existing design concepts, program criteria, design influences etc. 2. Conduct wayfinding survey to determine overall signage strategy. Systematically study pedestrian and vehicular traffic flow as it relates to ingress, egress and circulation within the development. 3. Conduct appropriate research on potential design influences, available technologies, materials and finishes. 4. Collect all relevant data available for the Project to include: -Architectural plans and drawings -Existing design themes and details -Details of architectural elements Contract C12144101 Amendment No. 2 Page 11 5. Prepare preliminary programming for sign locations and message schedules. 6. Confirm required sign types and environmental graphic elements. 7. Review of municipality and authorities regulations. 8. Produce three (3) design concepts for physical form and scale of signage including proposed materials, finishes, colors. 9. Coordinate design concepts with the architecture and lighting. 10. Based on design concepts and proposed sign quantities, prepare implementation budgets for review and discussion with client. 11. Present Schematic Design Concepts, budgets and phasing options for comment and approval. MEETINGS 1. Kickoff Meeting 2. Interim Meetings with City Staff and Design Team as needed for coordination 3. Schematic Design presentation PHASE DELIVERABLES 1. Schematic drawing package showing three (3) signage concepts 2. Preliminary power, data and structural requirements. 3. Preliminary sign location plans and phasing options 4. Preliminary implementation budgets. PHASE ACTION REQUIRED BY CLIENT Client review, comment, selection of one Schematic design direction and final approval of all phase deliverables to proceed into Phase 2. PHASE 2 DESIGN DEVELOPMENT Based on the approved Schematic Design direction from Phase 1, Square Peg will develop and apply the approved design direction to all remaining sign types. The following is expected during this phase of work: 1. Develop the approved Schematic Design per comments from Phase 1 and apply to all remaining sign types. 2. Coordinate all sign sizes, locations, power and structural requirements with the Design Team and project Consultants. 3. Refine and finalize signing typography, icons, materials and finishes 4. Prepare sign message schedules listing all proposed sign types and message copy. 5. Prepare Design Development presentation 6. Present developed materials for approval MEETINGS 1. Interim design coordination with the city and design consultants as needed 2. Present Final Design Contract C12144101 Amendment No. 2 Page 12 PHASE DELIVERABLES 1. Design Development drawings for all sign types. 2. Sign location plans and message schedule(s) for all required sign types. 3. Power, data and structural requirements per sign type 4. Sign implementation budget. 5. Material samples as necessary for review. PHASE ACTION REQUIRED BY CLIENT Client review, comment and final approval of all phase deliverables to proceed into Phase 3. PHASE 3 DOCUMENTATION The purpose of Phase 3 is to provide design intent documentation and technical detailing sufficient in detail to facilitate tendering and fabrication by a qualified sign fabricator. The Documentation Phase shall include, but not limited to, the following: 1. Prepare design intent documentation drawings sufficient in detail to facilitate bidding and fabrication by a qualified sign fabricator. 2. Coordinate all sign sizes, locations, power and structural requirements with the design team. 3. Document design details for all sign types. 4. Specify and document signing colors, illumination and materials. 5. Write performance specifications for all signing colors, illumination, materials and installation as required. 6. Finalize typography. 7. Finalize sign location plans and message schedules. 8. Produce final set of documentation drawings for signing and graphic elements. MEETINGS 1. Coordination with the city and design consultants as required PHASE DELIVERABLE At the completion of the Documentation Phase, we will deliver Final Documents to the Client. Documents shall include, but not limited to, the following deliverables and presentation materials: 1. Design Intent documentation sufficient in detail to facilitate tendering and fabrication by a qualified sign fabricator. 2. Specifications 3. Final sign location plans and message schedule(s) for all required sign types. Contract C12144101 Amendment No. 2 Page 13 Documents will be issued as follows: 1. Design documentation drawings for signing elements in Illustrator CS4 on Mac OS X platform: CD and three (3) hard copies, Tabloid format 2. Location Plans - CAD 2010, CD and three (3) hard copies 3. Message Schedule - Filemaker: CD and three (3) hard copies PHASE 4 CONSTRUCTION ADMINISTRATION The purpose of Phase 4 is to provide Construction Administration services for the Exterior, Parking and Interior Signing. To insure the design intent and desired quality of fabrication is achieved, SPD will coordinate with the selected fabricator through the submittal, fabrication and installation phases of work to answer questions, provide details and information. SPD will also review submittals, installation and a final inspection of the completed installation. Tasks to included: 1. Review, comment and approval of shop drawings, materials, mock-ups and samples. 2. Review Prototypes and Samples. 3. Provide details and sketches to clarify design intent. 4. Coordinate with the fabricator on Site regarding sign locations. 5. Up to four (4) site visits. 6. Respond to requests made by fabricator for clarification of Contract Documents. 7. Inspect final Installations and prepare punchlist of items for correction. 8. Follow-up evaluation of punch list items at final completion. 9. Perform project closeout activities and prepare final record plan set from contractor markups. Contract C12144101 Amendment No. 2 Page 14 WMB ARCHITECTS Contract C12144101 - Amendment No. 2 Exhibit "B" - Project Schedule City Hall Remodel A M J J A S O N D J F M A M J J A S O N D J Program Confirmation Design Development Construction Documents Plan Review Bidding Construction Co n t r a c t R e v i s i o n 2013 2014 2015 Co n t r a c t R e v i s i o n EXHIBIT “C” COMPENSATION CONTRACT C12144101 - AMENDMENT No. 2 The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as EXHIBIT “C-1” up to the not-to-exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in EXHIBIT “A” (“Scope of Work”) and reimbursable expenses shall not exceed Three Hundred Eighty- Seven Thousand Five Hundred Five Dollars [$387,505.00]. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed Four Hundred Twenty-Six Thousand Two Hundred Fifty-Six Dollars [$426,256.00]. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s project manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed Three Hundred Eighty-Seven Thousand Five Hundred Five Dollars [$387,505.00] and the total compensation for Additional Services does not exceed Thirty-Eight Thousand Seven Hundred Fifty-One Dollars [$38,751.00]. Attachment C ORDINANCE NO.XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2014 TO PROVIDE ADDITIONAL APPROPRIATION OF $1,607,109 IN THE FIRST FLOOR RENOVATIONS PROJECT (PE-12017), BUDGETED IN THE CAPITAL IMPROVEMENT FUND, FOR ENHANCEMENTS TO CITY HALL, RESULTING IN NO IMPACT TO THE INFRASTRUCTURE RESERVE. A SERIES OF TRANSFERS INTO THE CAPITAL IMPROVEMENT FUND WILL OFFSET THE INCREASED BUDGET AMOUNT, INCLUDING: $686,298 FROM THE COMMUNITY CENTER DEVELOPMENT IMPACT FEE FUND, $499,335 FROM THE TECHNOLOGY FUND, AND $668,437 FROM THE UTILITIES ADMINISTRATION FUND. THE TRANSFERS FROM THE COMMUNITY CENTER DEVELOPMENT IMPACT FEE FUND ($696,298), TECHNOLOGY FUND ($517,962), AND UTILITIES ADMINISTRATION FUND ($685,121) WILL BE OFFSET BY DECREASES TO THE FUND BALANCES TO EACH RESPECTIVE FUND. THESE TRANSFERS FROM OTHER FUNDS WILL ALLOW FOR AN INCREASE TO THE INFRASTRUCTURE RESERVE IN THE AMOUNT OF $246,961. The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 10, 2013 did adopt a budget for Fiscal Year 2014; and B.At the time the 2014 Adopted Budget was being considered by the City Council, the costs associated with the First Floor Renovation project were not known; and C. The project will provide for enhancements to City Hall in order to allow for better civic engagement. Improvements include: a remodel to the main lobby, including coordination with a new digital public art element; an enhancement to the heating, ventilation, and air conditioning (HVAC) system in the lobby area in order to handle the increased loads from the new community meeting room and digital art installation; a restoration to the terrazzo floor of the main lobby; conversion of the existing People Strategy and Operations conference room to a new City Council conference room; conversion of the existing City Council conference room to a new training and multipurpose meeting room; creation of a new community meeting room beside the main lobby; installation of broadcast media capabilities for all the new lobby-level meeting spaces; modification of the lobby payment counter to match the new architectural style of the lobby and provide a lower ledge for writing checks and signing forms; conversion of the Revenue Services offices into new Utilities Customer Service counter and offices; reconfiguration and renovation of mezzanine level offices; reconfiguration and renovation of second floor offices; new carpeting and bench upholstery for City Council chambers; and remodeling the three building elevator cabs. D.In April 2014, the City posted a notice inviting formal bids (IFB) for the project, with a bidding period of nineteen calendar days; and E. Bids were received from one qualified contractor on May 6, 2014 with a base bid of $2,664,000, plus add alternates of $54,350, bringing the total bid to $2,718,350. This bid amount is 19% higher than the construction cost estimate, indicative of the busy local construction climate. F. Staff recommends that the bid of $2,718,350 submitted by D.L. Falk Construction, Inc. be declared the lowest responsible and responsive bid; and G. A contingency amount of $271,835, equal to ten percent of the total base bid contract amount, is requested for related, additional, but unforeseen work which may develop during the project. SECTION 2.The sum of One Million Six Hundred Seven Thousand One Hundred and Nine Dollars is hereby appropriated for the City Hall First Floor Remodel Project. To offset the increased a portion of the increased costs in the Capital Improvement Fund, a series of transfers are recommended, including Six Hundred Eighty Six Thousand Two Hundred Ninety Eight Dollars from the Community Center Development Impact Fee Fund, One hundred thirty three thousand six hundred eighty seven dollars from the Electric Fund, One hundred thirty three thousand six hundred eighty seven dollars from the Gas Fund, One hundred thirty three thousand six hundred eighty seven dollars from the Wastewater Collection Fund, One hundred thirty three thousand six hundred eighty seven dollars from the Water Fund, One hundred thirty three thousand six hundred eighty seven dollars from the Fiber Optics Fund, and four hundred ninety nine thousand three hundred and thirty five dollars from the Technology Fund. The transfers in from the various funds would be offset by reductions to each respective funds ending fund balance. Finally, as a result of the transfers in to the Capital Improvement Fund from the various funds, the Infrastructure Reserve can be increased by two hundred forty six thousand nine hundred sixty one dollars. SECTION 4. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 5.The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Director of Public Works Director of Administrative Services " ---------- City Council/City Manager City of Palo Alto Palo Alto, California BID FORM (Revised per Addendum No.1) Name of Company D.L. Falk Construction Inc. In response to this Invitation For Bids (IFB), the undersigned, as Bidder, declares that the only persons or parties interested in this Bid as principals are those named herein; that this Bid is made without collusion with any other person, firm or corporation; that the Bidder has carefully examined the location of the proposed work and the plans and specifications herein referred to; and that the Bidder proposes and agrees, if this Bid is accepted, ~o contract with the City of Palo Alto (City), to provide all' necessary materials, equipment, tools, apparatus, and other means of transport services, and to do all the Work and comply with all the specified requirements in this IFB, in the manner herein prescribed and for the prices stated in the following Bid: Project Title: CITY HALL REMODEL A: Base Bid: Provide all labor, equipment material, transportation and applicable taxes, profit, insurance, bonds and other overhead to perform the Work in accordance with the Project Plans and Technical Specifications, herein: BID APPROX UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM ITEM (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE QUANTI PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) TV 1. 1 LS Upgrade the aesthetic and functionality of the Council $ fPC I~ Conference Room, Human Resources Conference Room, Lobby Area, Mezzanine, Level 2, and Elevator Cabs at Palo 1\"" I Alto City Hall. rv~ . ~'V~ 2. 1 lS Moving Allowance $70,000 $70,000 0 Base Bid Total (item 1 and 2) $ cfJ 1.\1 (Total in words: -It-Jo ~1'~·f2V1. t A~[~ ~;Jr-&IAL ~~ \b\J ~/K (\..-\ II II II II ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 3 OF 6 B: Additive Alternate Bid: Provide all labor, equipment material, transportation and applicable taxes, profit, insurance, bonds and other overhead to perform the Work in accordance with the Project Plans and Technical Specifications, herein: -BID APPRO UNIT ITEM X.QTY. 1. 1 LS 2. 1 .LS 1 LS 4. 1 LS s. 1 LS DESCRIPTION, WITH UNIT PRICE IN WORDS .' ..... _.-'" -UNlt·--'TOTAL ITEM (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) Community Meeting Room: Upgrade AV01-Allow $ $ multiple video camera feeds to be displayed on LCD screens, i.e. Camera #1 may be displayed on LCD #1 while Camera #2 is displayed on LCD #2. Routing will be achieved 1/ 'boo 7, Sera via intuitive controls on Community Meeting Room touch panel display. . ~e,J P/of\ .\{...ov.'.J,ilrl.J e.;\~"'( h .... ,,~( e! (Unit Price in Words) Lobby: Upgrade AV02 -Allow each LCD screen to show separate sources (in addition to ability to send one source scaled across the entire LCD screen array). Routing to individual displays will be achieved via intuitive controls on associated touch panel display. Lobby: Upgrade AV03 -One LCD screen (at ADA-compliant height) shall be touch-capable, and allow users to access way-finding information on.theLCD screen array. For example, if a user would like directions to the Flexible Meeting Space, they may use the touch-enabled LCD screen to get directions to the room from their current location. LiVv +t-.~\I\.V\!. C\ C\-'I' (Unif Price in Words) Conference Room: Upgrade AV04 -Allow multiple video camera feeds to be displayed on LCD screens, i.e. Camera #1 may be displayed on LCD #1 while Camera #2 is displayed on LCD #2. Routing will be achieved via intuitive controls on Conference Room touch panel display. (Unit Price in Words) ~l «.. ~~cl Flexible Meeting Space: Upgrade AVOS -Include (2) Panasonic AW-HE60S cameras on ceiling for routing to recording hardware in Council Chambers Control Room. Allow either camera feed to be displayed on LCD screen in room (Unit Price in "r,ords) , l I~'\IJ.AI .n -W\.O\,\,~\/\U-\-wo llA.vt.4.,« t! $ $ $ $ (O~O ~DC-O , .. ,..J) $ $ ., I CJOO $ $ ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 4 OF6 BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) 6. 1 LS Expand existing AMAG Security Access Control System to $ $ include Doors No: 107.1, 109.1, 126.1, 122.1, 122.2, 123.1, MOS.l, Mo6.1 and.20S.1. 1,~OO +~OO &)tJufN\. ~ lztNifl. A tIlilft-l kJ.'lt-J.. Additive Alternate Bid Total (item 1 through 6) $ (Total in words: 6~~¥ ~\W' ~tA~~ lctL ~JctJ cJhf ) :;4 Ii:> 'fiV C: Deductive Alternate Bid Total: Provide all labor, equipment material, transportation and applicable taxes, profit, insurance, bonds and other overhead to perform the Work in accordance with the Project Plans and Technical Specifications, herein: BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PRICE PRICE PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) 1. 1 LS Delete Elevator Interiors Package $ $ ~-1S' i\~~l--1r k Ib",~ C'"'-I ~~!h! ~~~ ~Ve.., ~~~1S' (Unit rice in words) 'b't-, 2. 1 LS Delete AV @ Entry Wall including power, data and $ $ monitors refer to Sheet AV2.1, Note 1 ':00 e.ttv tiN ~~s,."J. eir;tt-~~V\cLftJ e::\~~'f 'J(o~~O ~ q,\ol ( nit Price in Words) 3. 1 LS Delete metal panels at entry surrounding restroom core. $ $ As shown on sheet A 2.4. On lieu of install 5/8" gyp board over th e specified new furring. Tape, texture and paint (n) t;DO gyp board. ~1~oO ~Chl ~l> ~""c"tAMJ t;\It hl.lMclH~ e;1.1 (Unit Price in Words) 4. 1 LS Delete decorative glazing at doors to Community Meeting $ $ Room (refer to door schedule Sheet A 8.1) and replace with X" clear tempered glazing. 0° \6D ~ ... t ~ ~~ I)ttt.. "'~~u" \ " \" (Unit Price in Words) S. 1 LS Delete Folding walls at Community Meeting Room, replace $ $ with fixed anodized aluminum frame storefront system 00 00 ~~i:~nst:;~:rrf<::ed Cl-ea 'II\J ~ 1\;\ I (Unit Price in Words) ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 5 OF 6 BID APPRO UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS UNIT TOTAL ITEM ITEM X.QTY. (EACH BID ITEM SHALL INCLUDE ALL APPlicABLE TAXES, PRICE PRICE PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) 6. 1 LS Delete Drinking Fountain Replacement with Water Filling $ $ stations on Floor level A, 1, 2, 3, 4, 5, 6, and 7. See Sheet P.01Note P of General Plumbing Notes. .. qOb ,\00 ~i '\:)I sttc ~,a-V'l-J "".V\t U(-eJ (~nit Price iti or s)· ~lP' ~l 7. 1 LS Delete all work associated with Finance Department $ $ counter including casework, decorative glazing and terrazzo floor infill as shown on sheets D2.1,A2.1, A2.4 and L{"I .. P .;..",0 Ani r.",(vy -S~\C ~S~ ~w '-t~tJ. ~v..hl yIJ 1 I.\,tp\ (Unit Price in Words) 8. 1 LS Delete all work in City Council Chambers as shown of Sheet $ $ A1D.l-CC, including installation of new carpeting and ~tP reupholster of existing bench style seating. 0° ~~~"'" f1.,vw~~ M~ ~ ~ i,() \ 'h01 ( nit Price in Words) 9. 1 LS In lieu of replacing suspended ceiling systems as specified $ $ on the Mezzanine and Second Floor levels, maintain existing suspended grid system as currently installed. Modify existing grid system as required to accommodate 'lr 0 1/0 new specified fixtures and mechanical diffusers. Replace 7~ ceiling' tiles with specified tiles. Refer to sheet A 9.2 ~~ ~t.t-~\II.<"~ e.Aj"-\-",IAI"-ar~! +-wev--~I (Unit Price in Words) Deductive Alternate Bid Total (items 1 through 9) $ (Total in words: ) 4~11n~ ~\.W ~ ~f~" .h.J& ./-L.IL~ J ,u,u.t. l. ..J "...,~ .u.. ;,-1.,'1/ t:.a "tlf!... D. Addenda During the Bid process there may be changes to the Contract Documents, which would require an issuance of an addendum or addenda. City disclaims any and all liability for loss, or damage to any Bidder who does not receive any addendum issued by City in connection with this IFB. Any Bidder in submitting a Bid is deemed to waive any and all claims and demands Bidder may have against City on account of the failure of delivery of any such addendum to Bidder. Any and all addenda issued by City shall be deemed included in this IFB, and the provisions and instructions therein contained shall be incorporated to any Bid su bmitted by Bidder. To assure that all Bidders have received each addendum, the following acknowledgment and sign-off is required. Failure to acknowledge receipt of an addendum/addenda may be considered an irregularity in the Bid: ADDENDUM NO. ONE TO CITY OF PALO ALTO IFB 153838 PAGE 6 OF6