Loading...
HomeMy WebLinkAbout2013-11-12 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL Special Meeting Council Chambers November 12, 2013 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 November 12, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 6:00-7:00 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and (James Keene, Pamela Antil, Lalo Perez, David Ramberg, Joe Saccio, Kathryn Shen, Sandra Blanch, Dania Torres Wong, Melissa Tronquet, Brenna Rowe, Molly Stump, Khashayar Alaee) Employee Organization: Service Employees International Union, (SEIU) Local 521 Authority: Government Code Section 54957.6(a) Agenda Changes, Additions and Deletions HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. 2 November 12, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. City Manager Comments 7:00-7:10 PM Council Member Questions, Comments and Announcements 7:10-7:20 PM Members of the public may not speak to the item(s) Oral Communications 7:20-7:35 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:35-7:40 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2. Approval of Construction Contract to D&M Traffic in the amount not to exceed $180,000 for Safe Routes to School Intersection Improvements at Various Locations 3. Recommendation that the City Council Adopt a Resolution Amending the City’s Renewable Energy Resources Procurement Plan in Compliance with the California Energy Commission's Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities 4. Approval of a Contract with Granite Construction Company in the Amount of $2,700,818 for the FY2014 Asphalt Paving Project, the 2nd of 2 Contracts in the FY 2014 Street Maintenance Program Project (CIP PE-86070) 5. Approval of Professional Services Contract with Coalfire Systems, Inc. for Information Security Risk Assessment in the Amount of $200,448 6. Second Reading of Ordinance of the Council of the City of Palo Alto Adding Chapter 9.64 (Regulation of Community Facilities) of Title 9 (Public Peace, Morals, and Safety) to include Section 9.64.010 – Use of Community Facilities Prohibited from 10:30pm to Sunrise (First Reading; September 30, 2013, PASSED: 5-1-1 Holman no, Berman abstaining, Kniss, Price absent) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:40-8:40 PM 7. Policy and Services Committee Recommends Adoption of an Ordinance to Add Chapter 16.61 to the Municipal Code to Establish a Public Art 3 November 12, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Program for Private Development; and Policy Direction to Initiate a Public Art Master Planning Process 8:40-8:45 PM 8. Public Hearing: Approval of a Mitigated Negative Declaration and Record of Land Use Action for an Architectural Review Approval for the Demolition of an Existing 7,000 square-foot, Two–story Commercial Building and the Construction of a four-story, 50-foot, Mixed-use Building with a New Floor Area of 15,000 square feet, Including a Non- appealed Variance to Encroach into the Required Seven-foot Special Setback along Hamilton Avenue and to Encroach into the Required Six- foot Special Setback along Ramona Street, on a Parcel Zoned CD- C(GF)(P) located at 240 Hamilton Avenue (STAFF REQUESTS THIS ITEM BE CONTINUED TO A DATE UNCERTAIN) 8:45-9:05 PM 9. Tefra Public Hearing Regarding Conduit Financing for the Gideon Hausner Jewish Day School Project Located at 450, 470, 490 And 560 San Antonio Road, Palo Alto, and Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement and Equipping of Various Educational Facilities and Certain Other Matters Relating Thereto Closed Session 9:05-11:30 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 10. CONFERENCE WITH CITY ATTORNEY Subject: Written liability claim against the City of Palo Alto by Chuck Fong & Grace Wood (Claim No. C12034) Authority: Government Code section 54956.9 11. CONFERENCE WITH CITY ATTORNEY Potential Litigation – One Matter Subject: Construction of the Mitchell Park Library and Community Center Authority: Government Code Section 54956.9 4 November 12, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 12. CONFERENCE WITH REAL PROPERTY NEGOTIATORS, CALIFORNIA, GOVERNMENT CODE SECTION 54956.8 Property: U.S. Post Office, 380 Hamilton Avenue, Palo Alto 94301 Agency Negotiators: James Keene, Lalo Perez, Hamid Ghaemmaghami, Joe Saccio, Hillary Gitelman, Aaron Aknin, Meg Monroe, Molly Stump, Cara Silver Negotiating Parties: City of Palo Alto and United States Post Office Under Negotiation: Purchase: Price and Terms of Payment 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 12, 2013 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Policy and Services Committee Meeting Cancellation 11/12/13 Regional Housing Mandate Committee Meeting 11/14/13 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set One City of Palo Alto (ID # 4226) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Safe Routes to School Improvements Title: Approval of Construction Contract to D&M Traffic in the amount not to exceed $180,000 for Safe Routes to School Intersection Improvements at Various Locations From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council authorize the City Manager or designee to execute a contract with D&M Traffic Services, Inc. (Attachment A) in a total amount not to exceed $180,000.00 for the Safe Routes to School Intersection Improvements project. Background The Palo Alto Safe Routes to School Program is a partnership between the City of Palo Alto, Palo Alto Unified School District (PAUSD) and local Parent Teacher Association (PTA) groups to help educate and encourage safe commuting habits for students. This is accomplished through in- class curriculum, engineering improvements, enforcement in the field and on-going evaluation measures to continually improve the program. In 2010 the City received a grant from the Valley Transportation Authority (VTA) – Vehicle Emissions Reductions Based at Schools (VERBS) program to develop Suggested Walking and Biking (Walk and Roll) maps for each of the 17 public schools within the PAUSD boundary including Gunn and Palo Alto High Schools. As part of the Walk and Roll map development process the City also identified near-term and long-term field improvements within both the City and PAUSD jurisdictions. The Safe Routes to School Intersection Improvements project includes community-identified areas of improvement to help improve locations where school- aged pedestrians cross streets. Improvements include, but are not limited to enhanced crosswalk markings, pedestrian warning signage, bike route stencils, etc., for the following schools: City of Palo Alto Page 2 Elementary: Barron Park, Duveneck, El Carmelo, Fairmeadow, Hoover, Juana Briones, Ohlone, Palo Verde, and Walter Hays Elementary Schools Middle: JLS and Terman Middle Schools High: Gunn High School Additional Safe Route to School Intersection Improvements projects will be developed and released as the Walk and Roll process for the additional schools are completed. The City released the current Safe Routes to School Intersection Improvements project for bidding and is recommending award of a construction project to D&M Traffic Services, the most responsive low-bid for the project. Summary of Land Use Action All work within the project is within public right-of-way, except for one signage improvement that is on the grounds of Palo Verde School. This signage improvement is near the edge of the public right-of-way, is intended to restrict vehicular movement on a City street. Both the Palo Verde School Administrators and PAUSD Staff have approvedthe sign installation. Summary of Key Issues The City released a Request for Quotation (RFQ) for the Safe Routes to School Intersection Improvements on September 10, 2013. The City received three quotations in response to the RFQ. The solicitation and selection process is outlined below. Quotation Description/Number Safe Routes to School Intersection Improvements Total Days to Respond to RFQ: 22 days Pre-proposal Meeting Date: None Number of Company Attendees at N/A City of Palo Alto Page 3 Pre-proposal Meeting Number of Quotations Received: 3 Quotations Received from: Location (City, State) Quote D&M Traffic Services, Inc. Santa Clara, CA $174,811.45 Central Striping Service, Inc. Rancho Cordova, CA $191,810.50 Chrisp Company Fremont, CA $398,947.74 Quotations were evaluated based primarily on cost to the City but the following additional criteria were also considered:  Qualifications and experience of the staff,  Quotation quality and completeness,  Response time and ability to perform the work, D&M Traffic Services, Inc. submitted the lowest bid. D&M Traffic Services has direct work experience in this area and has the experiences needed to complete the project. A contract value of $180,000 is recommended to allow for contingency and additional minor improvements if required. Policy Implications This project is consistent with key transportation goals in the City’s Comprehensive Plan, including “Goal T-3: Facilities, Services and Programs that Encourage and Promote Walking and Bicycling”, and “Goal 6: A High Level of Safety for Motorists, Pedestrians and Bicyclists on Palo Alto Streets”. Specific relevant policies include:  Policy T-14: Improve pedestrian and bicycle access to and between local destinations, including public facilities, schools, parks, open space, employment districts, shopping centers and multi-modal transit stations.  Policy T-39: To the extent allowed by law, continue to make safety the first priority of citywide transportation planning. Prioritize pedestrian, bicycle, and automobile safety over vehicle level-of-service at intersections.  Policy T-40: Continue to prioritize the safety and comfort of school children in street modification projects that affect school travel routes. City of Palo Alto Page 4 Resource Impact Funding for the Safe Routes to School Intersection Improvement project is included in the Capital Improvement Program project, PL-00026, Safe Routes to School. There is sufficient funding in the budget to cover the cost of the contract. Timeline The Safe Routes to School Intersection Improvement project includes improvements at 42 different intersections or locations around the City. Construction is anticipated to continue into Spring 2014. Environmental Review All of the proposed improvements within the project include roadway marking and signage improvements that are Categorically Exempt under CEQA Guidelines Section 15301. Attachments:  Attachment A: Contract with D&M Traffic Services (PDF) CITY OF PALO ALTO CONTRACT NO. C14150009 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the day of November, 2013, by and between the CITY O~' PALO ALTO, a caJlfornia Chartered Municipal Corporation ("CITY"), and D&M TRAFFIC SERVICES, INC. a Califuruia eorporatiOll, located at 845 Reed Street, Santa Clara, CA, 95050, Telephone (408)591-3180 ("CONTRACTOR"). In eonsideration ofthcir mutual covenants, the parties hereto agree as fullows: 1. SERVICES. CONTRACTOR shall provide or furnish the sen';,es ("Services") described in the Scope of Services, attru:hed as Exhibit A. 2. EXHIBITS. The following exhibits are attaehed to and made a part ofthis Agreement: IZI "A" -Scope of Services o "B" -Schedule of Performance IZI "C" -Compensation ~ liD" -Insurance Requirements COIITRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from November ,20 13to June 30, 2014 inclusive, subject to the provisions of Sections Q and V of the General Terms and Conditions. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR sbaH complete the Services within the term of this Agreement in a reasonably prompt alld 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 sball pay and CONTRACTOR agrees to accept as not to exceed compensation for the full performance oflhe Services and reimbursable expenses, if any: Pi A sum calculated in accordance with the ree schedule set furth in Exhibit C, not to exceed a total maximum compensation amount of One Hundred Eighty Thousand dollars (SI 80,000.00). CONTRACTOR agrees that it can perform the Services for an a.tllount not 10 exceed the total maximum compensation set furth above. Any hours worked or services perfonned by CONTRACTOR for which payment would result in a lotal exceeding the maximum amount of compensation set forth above for perfurmance of the Services shaU be at no cost to CITY. 6. COMPENSATION DURING ADDITIONAL TERMS. PI CONTRACTOR'S compensation rates fur each additioIll!1 term shall be the same as the original term. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: Jaime Rodrigues, Planning & Community Environment Dept.: Transportation Division, Telephone: (650) 329- 2136. Invoices shaH be submitted in arrears for Serviees perfurmed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set fonh in sections 1 through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CO:-ITRACTOR represeots and warrants that it baa the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual cbarged with the performance of the serviees under this Agreement has sufficient skill and experience and is duly licensed or eertified, to the extent such licensing or eertification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shaIl at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR sball be responsible for payment of all taxes, fees, contributions or charges xpplicable to the .onduet of CO:-ITRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance ofthe Services comply with all applicable federal, state and lo.allaws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR sball, 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 CO:-ITRACTOR's performance of the Services. CITY may decline to xpprove 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 perfurmance 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 perfurmed in a professional and workmanlike manner in accordance with generally aceepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, gnods 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 corrcet 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 Servic<>s or termination of this Agreement. I. MO:'iITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a Salsfru;tory manner and complies with the provlsions of this Agreement. J. CITY'S PROPERTY. Any reports, infurmation, data or other material (including copyright interests) developed, coUected, assembled, prepared, or caused to be prepared Ill1der 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 fur three (3) years ftom the date of final payment, CONTRACTOR', 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. !liO 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 IlJld 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 acceprable to the City's Risk Manager. The City's Risk Manager must approve deductible, 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 redueed in coverage or limits until after providing 30 days prior written notice oftbe 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 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 ftom 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 nther loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative .xpenses and defense costs, including, but not limited to reasonable attorney's rees, courts costs and costs of alternative dispute resolution), arising out o( or resulting in any way ftom or in conneetion with the performance ofthis 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 indemnity for liability arising ftom the sole negligence or willful misconduet of the CITY. The aceeptaoce of the Services by CITY shall not operate as a waiver of the right of indemnifieation. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON· DISCRIMINATION. As set furth 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 stalus, 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 Nondiserimilllltion Requirements and the penalties fur 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 eomply with such provisions, as applicable, before commencing and during the performanee of the Services. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notiee thereof to CONTRACTOR. If CONTRACTOR fuils to perform any of its material obligations under this Agreement,' in addition to all otlter remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. upon receipt of sueh notice of termination, CONTRACTOR shall immediately discontinue perfonnance. 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 tIte amount of aetual damage. if any, sustained by CITY due to Contractor's fililme to perfurm its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketehes, 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 tlteir successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transfurred 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, [n aceepting this Agreement, CO;>;TRACTOR 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 ofthis Contract. CONTRACTOR further covenants that, in the perfonnanee 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 filithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. 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 Agreemeot supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or wTitten. V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the Cityof 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 fur tIte fullowing 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 Contraet are no longer available. This Seetion shall take precedenee in the event of a confliet 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 Prefurred PlU'Chasing policies whieh are available at the City's Purchasing Department which are incorpornted by rererence 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 eomply with the following zero waste requirements: • All printed materials provided by Contractor to City generaled 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 EXHIBIT "A" SCOPE OF SERVICES SUMMARY OF WORK The work to be performed under this Contract shall consist of fumishing all tools, equipment, materials, supplies, and manufactured articles and for furnishing all transportation and services, including fuel, power, water, and essential communications, and for the performance of all labor, work, or other operations required for the fulfillment of the Contract in strict accordance with these SpecifICations and the Project Plans. The work shall be complete, and all work, materials, and services not expressly shown or called for in the Contract which may be necessary for the complete and proper construction of the Work in good faith shall be performed, furnished and installed by the Contractor, at no increase in cost to the City. WORK COVERED BY CONTRACT The work under this contract includes signing and striping, curb painting, and installing rubber islands at various locations in the City of Palo Alto, as per the Project Plans and these Specifications. I: NOTIFICATION OF RESIDENTS AND BUSINESSES PART 1 --GENERAL 1.01 DESCRIPTION A. WORK INCLUDED 1. "No Parking -Tow Away" signs shall be posted on a street in whiCh the work is to be performed in accordance with these Specifications. 2. Traffic Control per Section 01570. 3. "Driveway Closure Notice", shall be distributed only to those residences that may have their driveway access closed due to pavement repair work. PART 2 --PRODUCTS 2.01 "NO PARKING -TOW AWAY" SIGNS A. "No Parking -Tow Away" signs will be provided at the Pre-Construction meeting by the City for the Contractor to post. Work Description Notices are to be stapled to barricades at all times indicating type of work being executed by the Contractor. PART 3 --EXECUTION 3.01 DISTRIBUTION A. Dated "No Parking -Tow Away" signs shall be posted a minimum of 72 hours in advance of all work, which requires that cars not be parked in the construction area. The Contractor shall notify the CPA Police Department and the Project Engineer of this posting at the time of posting. The date and time of work shall be written on these signs in 1" high black letters with a 14" felt marker. These signs shall be placed on either barricades per these specifications or tied to street trees located near the curb and gutter, no higher than 3 feet from sidewalk. Nails or staples may not be used to attach the signs to the trees. All signs must be removed immediately after the specific Work has been completed and is ready for release to the public. Any cars which remain parked on the street in violation of the posted "No Parking Tow Away' sign shall be towed away under direction of the Palo Alto Police Department. The Contractor shall be responsible for notifying the Police Department at the Communications Dispatch Center at (650) 329-2413 of all vehiCles that are to be towed away. The owner of the towed vehicle may contact the Police Department at (650) 329-2406. If the "No Parking Tow Away" signs have not been posted for the required 72 hours and the car is towed, the Contractor shall be liable for the cost of towing. B. The Contractor shall call the Palo Alto Police Department Communications Dispatch Center and the Project Engineer, prior to the start of work each day, to report all street closures for that day. C. Posting of "No Parking -Tow Away Zone" signs: 1. Sign Posting -"No Parking -Tow Away Zone" a. All signs indicating a "No Parking -Tow Away" zone shall be: 1) posted a minimum of 72 hours in advance, 2) properly and completely filled out and initialed by the Contractor, 3) posted to the barricade ortied or taped to a tree, and 4) placed on both ends of the "No Parking" zone. b. The contractor shall commence worK the same day the "No Parking" signs are posted for. If the work does not commence on the date or dates noted, the contractor shall repost the "No Parking" signs which require a minimum of 72 hours advance notice. c. All signs and the barricades shall be removed the same day that the Work is completed. d. The "No Parking -Tow Away" signs (see above) will be provided by the City, and shall be ordered immediately after the Notice To Proceed is issued. e. The Palo Alto Police Department and the Project Engineer shall be notified of the "No Parking -Tow Away" zone, before the 72 hour period begins. 2. Use of Barricades All barricades shall be: a. Type II barricades, b. At intersections and at locations where a difference in grade exists, Type II barricades with properly working and maintained flashing lights shall be used. c. placed at intervals of no greater than 50 feet or as deemed appropriate by the Engineer, d. placed in the street or in the parkway as close to the street as possible where it is easily visible, and e. removed from the street the same day the work is completed. PART 4 MEASUREMENT AND PAYMENT 4.01 NOTIFY RESIDENTS AND BUSINESSES A. DESCRIPTION Work for this bid item shall include all the work necessary to post "No Parking - Tow Away" signs as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid as part of the Traffic Control lump sum bid item. Payment shall include full compensation for furnishing all labor, eqUipment, tools, and materials necessary to complete work in this section. II: PROJECT SCHEDUL.ING PART 1 GENERAL END OF SECTION A. This Section describes the scheduling procedures for the work in this project. PART 2 PRODUCTS (Not Required) PART 3 EXECUTION 3.01 WORK SCHEDULE A. The Contractor is required to provide the Engineer and Inspector an accurate schedule of construction activity at least two weeks in advance. This is critical since all the transit, public safety, medical emergency, and other agencies affected by the project need to be notified. The Contractor shall follow the overall progress schedule that indicates the critical path to prepare the weekly schedules. The schedules shall be submitted at each Weekly Project Meeting. The schedules should indicate the timing for the distribution of notices and posting of "No Parking -Tow Away' signs and all phases of construction planned for the ne)(! two weeks. B. The Contractor shall submit an updated baseline schedule attached to each month's progress payment invoice. All invoices will be held until this requirement is met to the satisfaction of the Engineer. C. The Contractor shall provide an updated two-week schedule at each weekly meeting showing work to be done and "No Parking" sign posting schedule. PART 4 --MEASUREMENT AND PAYMENT A. Payment for work required in this section shall be included in the prices paid for the various items of work involved. III: PROJECT MEETINGS PART 1 --GENERAL 1.01 DESCRIPTION: A. Work Included: END OF SECTION 1. Pre-Construction Conference. 2. Weekly Project Meetings. B. Related Work: 1. The Contractor's relations with his subcontractors and materials suppliers, and discussions relative thereto, are the Contractor's responsibility as described in the General Conditions and are not part of project meetings content. 1.02 QUALITY ASSURANCE: A. Persons designated by the Contractor to attend and participate in project meetings shall have all required authority to commit the Contractor to solutions as agreed upon in the project meetings. 1.03 SUBMITI ALS: A. To the maximum e)(!ent possible, advise the Engineer at least 24 hours in advance of the project meeting regarding all items to be added to the agenda. PART 2 -PRODUCTS (Not Required) PART 3 -EXECUTION 3.01 MEETING SCHEDULE: A. A Pre-construction conference will be held prior to the start of construction to discuss the scope of work and sequence of operations. The Contractor, together with the person to be designated as the Contractor's superintendent for the Work, shall be present at this meeting, In addition, the Contractor may request the attendance of other project supervisory personnel. B, At this Pre-construction meeting, the Contractor shall present: 1 , A detailed construction schedule indicating the posting and distribution of all notifications, and completion dates ofthe various stages of the work. 2. The proposed traffic control plans for any and all related multiple block closureS. Typical plans will not be accepted. 3. The proposed construction schedUle and scheduling with as little disruption to residents as possible. 4. The Contractor will not be allowed to proceed with construction until the above items are submitted in an acceptable form to the Engineer. B, Weekly Project Meetings: 1. The Engineer will conduct weekly project meetings throughout the construction period. The purpose of the weekly project meetings is to review progress and resolve problems th at might arise between the City and the Contractor relative to execution of the Work, 2. The Contractor shall provide an updated two-week schedule at each weekly project meeting indicating but not limited to the following information per street: proposed posting dates, tree trimming. 3. Work shall be stopped If a weekly schedule Is not provided to the City at the cost of the Contractor. 3.02 MEETING MINUTES A. The Contractor shall compile minutes of each project meeting and will distribute copies to the City, PART 4 -MEASUREMENT AND PAYMENT A. Payment for work required in this section shall be included in the prices paid for the various items of work involved. IV: TRAFFIC CONTROL PART 1 --GENERAL 1,01 WORK INCLUDED END OF SECTION A. Construction Parking Control B. Traffic Control Plans C. Traffic Control Devices (barricades, cones, signs, flashing arrow signs, etc.) D. Traffic Control Personnel E. Project Notification and Postings per Section 01030 1.02 SUBMITTALS A. Traffic Control Plans 1. A licensed or certified C·31 traffic control agency shall prepare the traffic control plans for each type of traffic control required in accordance with these project specifications and submit these plans for review by the City. 2. The Contractor shall submit all traffic control plans at or before the Pre- construction conference for review by the Engineer. Allow up to 14 days for review, revision, and approval of temporary traffic control plans before implementation. 3. The Contractor is required to submit a traffic control plan for each type of traffic control required for each street project. This plan shall be designed to maintain traffic circulation to abutting streets within the limits of the project. These plans should show the following: a. Signage and work area typical safety design for non-street closure situations (i.e.: pavement repair, patching); b. Signage and detour design for partial/full street closure situations c. Proposed detour routing. 4. These traffic plans are required to detail all construction situations planned on a given street project. If adjustment to tbese plans is required by the Resident Project Inspector or Engineer due to safety concerns, it shall be considered as conforming to the requirements of this Contract and is included in the lump sum price of this Bid Item. 5. All traffic control plans shall show a detailed layout of work areas and all traffic control devices required to control vehicular. pedestrian, and bicycle traffic. B. Signage Shop Drawings 1. Provide shop drewings for any notification or traffic signage to be fabricated or utilized for approval by the Engineer. SUbmit the shop drawings with the traffic control plans. PART 2 --PRODUCTS 2.01 CONES, DELINEATORS AND BARRICADES A. Cones, delineators and barricades used to direct traffic flow shall conform to Cattrans Standard Specifications, Sections 12-3.02, 3.04 and 12-3.10. They are to be in good condition and sufficiently clean so as to be easily visible to traffic. B. Type II and III barricades wHh working flashers shall be used in locations of grade changes, open pits, and at non-controlled traffic intersections. Type II non flashing barricades shall be used for posting of signs. C. At least one working flashing light must be installed on each barricade. Flashing lights must be maintained in good working order throughout the duration ofthe work. D. Crosswalk closing barricades shall be Type II with a 6" orange border at the base. The Contractor shall submit the method of securing this border to the base of the barricades to the Engineer for acceptance. 2.02 TRAFFIC CONTROL SIGNS A. Signs to be used for traffic control shall conform to the reqUirements of the California Manual on Uniform Traffic Control Devices (California MUTCD). B. Signs that are attached to existing poles shall not cause any damage to the poles when they are attached or removed. C. All of the hardware that is used when attaching signs to existing poles shall be completely removed from the poles when the signs are removed. D. If a construction sign is required in an area where it cannot be attached to an existing pole, it shall be attached to a pole that is connected to a moveable concrete block. The distance from the ground surface to the bottom of the sign shall be seven (7) feet. 2.03 FLASHING ARROW BOARDS A. Flashing arrow boards shall be Type A or Type II as described in the California MUTCD when identified for use on the traffic control plans. 2.04 TRAFFIC CONTROL CREW A. The Contractor shall provide a certified professional traffic control crew that is independent from the construction activity. This traffic control crew Shall be responsible to the Contractor for implementing the traffiC control measures detailed in this Contract. Traffic control crews are to be present at all times as per the traffic control plan. The crew is subject to the approval of the Engineer. PART 3 -EXECUTION 3.01 CONSTRUCTION PARKING CONTROL A. The Contractor's employees are subject to all parking regulations in effect in the City of Palo Alto. 3.02 GENERAL TRAFFIC CONTROL REQUIREMENTS A. Work must be completed by November 22, 2013. B. Refer to the Table below for permitted work hours and permitted hours for lane closures and/or sidewalk closures. Extended work and closure hours will not be permitted unless previously approved by the City Engineer. Extended work and closure hours will be approved on a case-by-case and Intersectlon-by- Intersection basis. Contractor shall maintain continuous safe passage for pedestrians and bicyclists at all times. Monday, Monday-Tuesday, Wednesday Friday Thursday, & Friday Work Hours Hours for Lane Closures and/or Sidewalk Closures Arterial and collector streets including: Middlefield Road, East Charleston Road, Embarcadero Road, 9AM-4PM 9AM-2PM i 9AM-1 PM Arastradero Road, Loma Verde Avenue, Coloraoo ! Avenue, East Meadow Drive, Newell Road, Los Robles Avenue, Amaranta Avenue, and Louis Road Loca I streets 9AM-6PM 9AM-2PM, 9AM-1 PM, 4PM-6PM 4PM-5PM C. All signs anO other warning devices shall be provided by the Contractor and shall .become his property after completion ofthe Contract. The cost of providing, installing and maintaining signs, lights, caution tape, delineatora, flares, all temporary striping, barricades and other facilities as directed by the Engineer for the convenience and direction of public traffic shall be included in the lump sum price for the Traffic Control Bid Item. D. The Contractor shall supply, place, and maintain all necessary traffic control devices during construction in accordance with the applicable requirements of the City of Palo Alto Traffic Control Manual, the California MUTeD, the Caltrans Standard Plans and Standard Specifications and the traffic control plans approved by the City. E. All signs and other warning devices shall be provided by the Contractor and shall become his property after completion of the Contract. The cost of providing, installing and maintaining signs, lights, caution tape, delineators, flares, all temporary striping, barricades and other facilHies as directed by the Engineer for the convenience and direction of public traffic shall be included in the lump sum price for the Traffic Control Bid Item. F. The Contractor shall conduct his operations and schedule cleanup so as to cause the least possible obstruction and inconvenience to traffic, pedestrians, bicyclists, and adjacent property owners. All work areas shall be swept clean at the end of the day's work and at other times when directed by the Engineer. A mobile street sweeper shall be used when directed by the Engineer, Dust shall be suppressed to the satisfaction of the Engineer, An additional street sweeper will be required along all arterial and collector roads during the project, G, The Contractor shall protect open excavations and trenches during construction with fences, non-skid type steel plates and railings, as required, together with signs, lights, and other warning devices sufficient to maintain safe pedestrian, bicycle and vehicular traffic to the satisfaction of the Engineer. H. Damage done by the Contractor during the course of his work to adjacent City or private property shall be replaced in kind, or as directed by the Engineer, at the Contractor's expense. This includes the repair of pavement, traffic loop detectors, striping, signs, markings, curb & gutter, etc. I. The Contractor shall remove all forms, debris, and undesirable material from the job site at the end of each work day. J. The Contractor shall not remove the barricades in the street at any given location until the asphalt concrete patching adjacent to the gutter or the overlay has been done and a hazard to bicycles, pedestrians and motorists no longer exists, K. The Contractor shall notify the abutting property owners of the construction work in accordance with Section 01030 of these Specifications. L Spillage resulting from hauling operations along or across any public traveled way shall be removed immediately by the Contractor at h is expense. M. Even during permitted sidewalk closure hours, the Contractor shall keep sidewalks open whenever possible. During sidewalk closures, an alternate pedestrian facility shall be provided forthe duration of the closure. N. Contractor shall maintain access to all driveways except when actually doing construction within the driveway boundaries, at which time partial access will be maintained unless alternate arrangements can be made with the property owners or tenants in advance. If the driveway to any garage or parking area is to be closed for construction work, this notice shall state the apprOximate time it will be reopened, The notice will be posted 72 hours in advance. The Contractor shall post "No Parking - Tow Away" signs as required. O. Each pedestrian crosswalk and/or ramp that, when crossed by construction excavation or demolition, is not accessible shall be provided with a safe pedestrian crossing platform. The Contractor shall submit the types of temporary ramps and temporary platforms for review and acceptance by the Engineer. P. Work shall. not restrict visibility of any traffic control device and or restrict visibility at intersections without stop signs, Q, Flashing arrow boards shall be used for lane reductions on all applicable streets (i.e. major collectors and arterials), R, City of Palo Alto Truck Routes for all hauling shall be used when possible. S. If complaints are received from the public regarding the performance of the traffic control measures, the Palo Alto Police Department will review the Contractor's operations. If the operations are determined to be unsafe and are not corrected after a warning by the Police Department, police personnel will take over the traffic control at the expense of the Contractor. T. The Contractor assumes sole and complete responsibility for the job and site conditions during the course of construction, including the safety of all persons and property. This requirement shall apply continuously 24 hours/day and shall not be limited to normal work hours. U. If traffiC is detoured to another street, it is the Contractor's responsibility to provide adequate control and signing through the detour route. 3.03 DETAILED TRAFFIC CONTROL REQUIREMENTS A. TYPES OF TRAFFIC CONTROL REQUIRED -The Contractor's traffic control plans shall contain provisions to maintain access for emergency vehicles at all times throughout the project. TYPE 1 --FULL STREET CLOSURE The street shall be closed to all traffic during the construction operation. The street shall be closed with cones or Type III barricades. Traffic control signs shall be placed in appropriate locations both at, and in advance of, the closure points, informing motorists that the stnset is closed and prohibiting all turns onto the street. This signage shall indicate the approximate time of the reopening of the street. There should also be signage to show an appropriate detour route for through traffic. TYPE 2 --% STREET CLOSURE, MAINTAIN ONE-WAY TRAFFIC, PROVIDE FLAGMEN The street shall remain partially open during the construction operation. The Contractor shall work on one side of the street at a time. The street shall be closed to traffic in one direction, leaving a minimum width of 11-feet open for traffic in the opposite direction. The Contractor shall provide at least one flagman to direct public traffic to detour routes. One side of the street shall be closed with cones or Type III barricades. Traffic control signs shall be placed in appropriate locations both at, and in advance of, the closure points, informing motorists that the street is closed and prohibiting all turns onto the closed portion of the street. The Contractor shall use cones to separate the remaining one-way traffic from the construction operation. TYPE 3 --PARTIAL STREET CLOSURE, MAINTAIN TWO-WAY TRAFFIC, PROVIDE FLAGMEN, ONE TRAFFIC LANE This type of traffic control may be used for partial closures extending either the full length or a portion of the length of a street. Street shall remain open during the construction operation. Part of the street shall be coned off, leaving a minimum width of 11-feet open for traffic. The Contractor shall rnaintein two-way traffiC on this street by utilizing at least two flagmen (on cul-de-sacs and closures less than 100 feet in length, one flagman will be acceptable). The flagmen shall allow one direction of traffic at a time to travel in the one remaining 11-foot lane. Traffic control signs shall be placed in appropriate locations both at, and in advance of, the closure points, informing motorists of any detour and the presence of the flagmen. The Contractor shall use cones to separate the traffic from the construction operation. TYPE 4 --PARTIAL STREET CLOSURE, MAINTAIN TWO-WAY TRAFFIC, PROVIDE TWO TRAFFIC LANES This type of traffic control may be used for partial closures extending either the full length or a portion of the length of a street Street shall remain open during construction operation. Part of the street shall be coned off, and two-way traffic shall be maintained at all times by dividing the remainder of the street into two 11'-wide (minimum width) traffic lanes and directing traffic onto the detour with appropriate cones and traffic control signs. Traffic control signs and reduced speed limit signs shall be placed in appropriate locations both at and in advance of the closure pOints, informing motorists of any detour and directing them to the proper lane. The Contractor shall use cones to separate the traffic from the construction operation. PART 4 -MEASUREMENT AND PAYMENT 4.01 TRAFFIC CONTROL, NOTIFICATION AND POSTINGS A. DESCRIPTION Work for this bid item includes all traffic control sign age, project signs, temporary striping and all project notifications and postings per Section 01030 as required in these specifications and in preparing the traffic control plans to be approved by the Engineer and providing all the traffic controls required for the project as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a lump sum basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to provide traffic control as required by these specifications including independent traffic control crew, barricades with flashers, traffic cones, signs, and traffic control plans. END OF SECTION V: SITE MAINTENANCE AND CLEANUP PART 1 --GENERAL 1.01 DESCRIPTION A. Work included: 1. Throughout the construction period, maintain the site in a standard of cleanliness as described in this Section. 2. Tie-out marking removal. B. Related Work: 1. Docurnents affecting work of this Section include, but are not necessarily limited to, the City of Palo Alto Standard SpeCifications and pertinent other Sections of these SpeCifications. 2. In addition to standards described in this Section, the Contractor shall comply with requirements for cleaning as described in pertinent other Sections of these Specifications. 1.02 QUALITY ASSURANCE A. A daily inspection, and more often if necessary, shall be conducted by the Engineer to verify that requirements for cleanliness are being met. B. In addition to the standards described in this Section, the Contractor shall comply with pertinent requirements of other governmental agencies having jurisdiction over this Work. PART 2 --PRODUCTS 2.01 CLEANING MATERIALS AND EQUIPMENT A. The Contractor shall provide required personnel, equipment, and materials needed to maintain the specified standard of cleanliness. PART 3 --EXECUTION 3.01 PROGRESS CLEANING A. General 1. Any stored items shall be placed in an orderly arrangement allowing maximum access, not impeding traffiC or drainage, and providing required protection of materials. 2. The accumulation of scrap, debris, waste material and other items not required for construction of the Work shall not occur. B. Site: 1. The Contractor shall inspect the site on a daily, and more often if necessary, basis and ensure that all scrap, debris, and waste material is removed. 2. The Contractor shall maintain the site in a neat and orderly condition at all times. 80th public and private areas shall be cleaned of all materials attributed to or involved in the Work on a daily basis. It is especially important for contractors perfonming concrete work to ensure that the site is left in a safe condition every day, especially from loose lumber and nails. 3. The Contractor shall use sandbags or other protective devices, approved by the Engineer, to prevent the discharge of construction debris, such as, soil, concrete, asphalt, and saw cut slurry, into the storm drains. Malerial that is stockpiled in the street shall be located no closer than ten feet from a catch basin and, during rainy weather, shall be covered with a waterproof covering. All loose malerial shall be swept up and removed from gutters at the end of each workday. 4. The Contractor shall remove all utility, striping tie-oul and USA marking on asphalt concrete pavement and P.C.C. curb & gutter, sidewalk, driveway and curb ramp. 5. The method of tie-out and USA marking removal shall be approved by the Engineer prior to commencement of the work. 3.02 FINAL CLEANING A. The Contractor shall ensure that all tools, surplus materials and soil, equipment, scrap. debris, and waste are removed from the project sites and storage area prior to the final inspection. If this has not been done satisfactorily in the Enginee~sestimation, the final progress payment and/or retention payment may be held up until it has been satisfactorily resolved. If the Contractor does not satisfactorily resolve this issue and it extends past the end of the contract time, the Contractor may be liable for liquidated damages. B. Site: 1. Unless otherwise specifically directed by the Engineer, clean paved areas on the site with a mobile street sweeper. 2. Completely remove resultant debris. C. SChedule final cleaning as approved by the Engineer to enable the City to accept completely clean Work. 3.03 DUST CONTROL A. The Contractor shall use all means as possibly feasible to reduce dust during the asphalt milling processes of this Contract. B. The Contractor will be required at the discretion of the Engineer to utilize vacuum sweepers to help alleviate dust from the project site in addition to utilizing additional applications of weter on the roadway prior to release of traffic. PART 4-MEASUREMENT AND PAYMENT A. Payment for work required in this section shall be included in the prices paid for the various items of work involved. END OF SECTION VI: SITE PREPARATIONITREE TRIMMING PART 1 --GENERAL 1.01. WORK INCLUDED A. Removal of vegetation including weeds, low and medium ground cover, shnubs and trees. B. Removal of tree roots. C. Trimming of tree branches 1.02 RELATED SECTIONS A. Section 01030 -Notification of Residents and Businesses B. Section 01710 -Site Maintenance and Cleanup PART 2 -PRODUCTS (not required) PART 3 -EXECUTION 3.01 SITE PREPARATION A. At locations shown on the project plans, trees or other vegetation that limit visibility of traffic control devices need to be trimmed. B. The Contractor will be assessed charges for any damage to City trees and foliage including, but not limited to, broken limbs and damaged trunks. Charges will be determined by the City Arborist. C. Pruning of Vegetation 1. When milling or overlay of a street is required, the Contractor shall prune vegetation 6 inches from edge of pavement 2. When curb and gutter, sidewalk, driveway and walkway replacement is required, the Contractor shall prune vegetation 6 inches from back of curb and gutter, sidewalk, driveway or walkway. D. Pruning of Tree Roots 1. If required, tree roots shall be removed to a depth of 24 inches below proposed top of adjacent curb grade. When tree roots are greater than 2 inches in diameter are encountered, the Contractor shall contact the City Arborist, prior to cutting, for a decision on treatment. 2. Root pruning method shall be approved by the Engineer. 3. Root pruning shall be by Vermeer saw or approved equal. Prior to their removal, roots shall be completely severed between work area and the tree. Tree roots shall not be torn or ripped by a backhoe or other by other means. All final root pruning cuts shall be a clean cut. 4. When demolition exposes roots two inches or greater in diameter, take care to preserve any and all roots not within the grading/excavation plane. Take all reasonable steps as directed to protect exposed roots to remain, such as covering with moistened soil or burlap to prevent drying of live roots. 5. If roots to be cut are within 12" of the vertical portion of the tree trunk, the Contractor shall contact the City Arborisl, prior 10 cutting, for a decision on treatment. 6. Contractor shall repair all utility and irriga~on lines damaged during root pruning at no cost to the City. All repairs must be done within seven {7l calendar days. E. Tree Branch Trimming 1. Where City street trees obstruct the Contractor's ability to perform the Work in this Contract, the Contractor shall be responsible for all trimming necessary to create clearance for construction operations. 2. When milling or overlay of a street is required, the Contractor shall trim tree branches that extend over the back of curb line to ensure a minimum clearance of 14 feet. 3. The trimming of these branches shall be performed by a certified (ISA) tree trimmer. 4. If a cut is to be made on the branch which is larger than 4 inches in diameter, the City Arborist must be notified prior to any cutting. 5. The schedule for tree trimming must be submitted to the CPA Arborist in addition to the CPA Public Works Inspector and the Engineer at least one week prior to commencing work. 6. The Contractor shall remove and dispose of all leaves, branches and debris generated as the result of the work at the end of every work day. F. During Construction 1. All trees that overhang the project site shall be protected from impact of any kind. 2. The Contractor shall be responsible for the repair or replacement of any publicly owned trees that are damaged during the course of construction, pursuant to Section 8.04.070 of the Palo Alto Municipal Code. 3. The following tree preservation measures apply to all trees to be retained: a. No storage of material, topSOil, vehicles or equipment shall be permitted within the tree enclosure area. b. The ground around the tree canopy area shall not be altered. PART 4 --MEASUREMENT AND PAYMENT A. Payment for work required in this section shall be included in the prices paid for various items of work involved. END OF SECTION VII: STRIPING, LEGENDS, MARKERS AND SIGNAGE,CURB PAINTING, AND RUBBER ISLANDS PART 1 --GENERAL 1.01 WORK INCLUDED A. Removal and Disposal of Yellow Thermoplastic and Yellow Painted Stripe B. Removal and Disposal of WhITe Themnoplastic and White Painted Stripe and Pavement Markings C. Cat track D. Installation of New Yellow and WhITe Pavement Striping and Pavement Markings E. Removal of Signage F. Installation of Signage G. Curb Painting H. Installation of Rubber ISlands 1.02 REFERENCES A. Caltrans Standard Specifications. B. Caltrans Standard Plans C. California Manual on Uniform Traffic Control Devices (California MUTCD) 1.03 QUALITY ASSURANCE A. Use adequate numbers of skilled workmen who are thoroughly trained and experienced in the necessary crafts and who are completely familiar with the specified requirements and the methods needed for proper perfomnance of the Work of this Section. B. All lane lines and striping shall confomn to the California MUTCD unless indicated otherwise on the project plans. 1.04 SUBMITTALS A. Within 14 calendar days after the Notice to Proceed, the Contractor shall submit: 1. Materials list of iterns proposed to be provided under this Section. 2. Manufacturer's recommended installation procedures which, when approved by the Engineer, will become the basis for accepting or rejecting actual installation procedures used on the work. B. The Contractor shall submit striping tie-out drawings at the pre- construction meeting. The tie-out drawings need to show the locations of all existing striping and at a legible scale and in legible writing for approval. C. The Contractor shall submit a written abatement work plan for removal, storage, and disposal of yellow themnoplastic and yellow painted traffic stripe and pavement markings to the Engineer for approval not less than thirty (30) days prior to the start of the removal operations. The work plan shall comply with all state regulations including the Contractor's Lead Compliance Program. Removal operations shall not be started until the Engineer has approved the work plan. PART 2 --PRODUCTS 2.01 THERMOPLASTIC MATERIAL A. The thermoplastic material and glass beads shall conform to the California Standard Specifications Section 84-2 except as noted below. S. The solid resin for the thermoplastic materials shall be "maleic-modified glycerol ester resin" (alkyd binder). This binder shall consist of a mixture of synthetic resins, at least one of which is solid at room temperature, and high boiling point plasticizers. At least one-third of the binder composition shall be solid maleic- mod Hied glycerol ester resin and shall be no less than 8 percent by weight of the entire material formulation. The binder shall not contain petroleum based hydrocarbon resins. 2.02 PAVEMENT MARKERS A. Reflective and non-reflective pavement markers shall conform to Section 85 of the California Standard Specification. B. Hot melt bituminous adhesive shall be used to cement pavement markers to the pavement. . PART 3 --EXECUTION 3.01 REMOVAL AND DISPOSAL OF YELLOW THERMOPLASTIC AND YELLOW PAINTED TRAFFIC STRIPE AND PAVEMENT MARKING A. Waste from removal of yellow thermoplastic and yellow painted traffic stripe and pavement marking contains lead chromate. The removed yellow thermoplastic and yellow paint shall be disposed of at a Class 1 disposal facility or a Class 2 disposal facility permitted by the Regional Water Quality COntrol Board in conformance with the requirements of the disposal facility operator. B. Prior to removing yellow thermoplastic and yellow traffic striping and pavement marking, personnel who have no prior training, shall complete safety training program provided by the Contractor that meets the requirements of Title 8, California Code of Regulations, Section 1532.1, "Lead," and the Contractor's Lead Compliance Program. C. Where grinding or other methods approved by the Engineer are used to remove yellow thermoplastic and yellow painted traffic stripe and pavement markings, the removed residue, including dust, shall be contained and collected immediately. Sweeping equipment shall not be used. D. Collection shall be by a high efficiency particulate air (HEPA) filter equipped vacuum attachment operated concurrently with the removal operations or other equally effective methods approved by the Engineer. 3.02 REMOVAL OF ALL OTHER THERMOPLASTIC AND PAINTED STRIPE AND PAVEMENT MARKING A. All methods of removal shall be reviewed and approved by the Engineer. B. The stripe and marking grinding shall be vacuumed for dust control. If the Contractor decides to sweep the grinding causing dust, the Engineer shall request that the Contractor use different methods of grinding removal. 3.03 PAVEMENT STRIPING AND PAVEMENT MARKINGS A. If existing striping and pavement markings are not shown on the project plans to be removed and are damaged due to the Contractor's activity, the Contractor shall notify the Engineer and the striping and pavement markings shall be' repaired or replaced, In kind, at the Contractor's expense. 8. Temporary traffic striping and legends shall be placed per the following general requirements: 1. All temporary stop bars and crosswalks shall be placed temporarily at a width of 12" using reflective white tape. C. Alignment lines shall be established by the application of cat tracks or dribble lines, the use of laser guidance devices or a combination of both, as detailed in Caltrans Specifications Section 84-1.01 through 1.03. D. The Contractor shall provide the Engineer a schedule of striping work at least one week in advance. Thermoplastic material shall be applied only to dry pavement surfaces and only when the pavement surface temperature is above 50 degree Fahrenheit. F. Pavement markers shall be placed in accordance with the California Standard Specifications, Section 85, and manufacturer's installation procedures. G. Thermoplastic material shall be applied in accordance with the California Standard Specifications, Section 84-2.04, and manufacturer's installation procedures. H. The Contractor must contact the CPA Utilities Department at (650) 496-6991 at least 3 working days prior to field marking of proposed bicycle loop detector stencils to have loops located in the field. I. Install precast wheel stops by driving not less than two ;;." diameter (min.) galvanized bars in predrilled holes in the concrete bumpers not less than 2' through the existing pavement into the earth. These bars shall be epoxied into place. J. Themnoplastic maferial shall be applied in a Single uniform layer by extrusion methods as per section 84-2.04 of the Caltrans Standard Specifications. K. The work described in this section shall include striping and pavement markings shown to be refreshed on the project plans. L. Contractor shall notify Engineer at least 48 hours prior to striping removal or placement to allow for adequate Inspection. Failure to do so may result in partial or reduced payment of striping bid Items. 3.04 REMOVAL OF SIGNAGE A. Contractor shall remove roadside signs at locations shown on the project plans. B. Where the project plans call for the removal of an existing sign post, the sign post removal shall include removal of the sign post footing and disposal and backfill of the remaining posthole with Portland cement concrete set flush with existing concrete. C. Existing roadside signs shall not be removed until replacement signs have been installed or until the existing signs are no longer required for the direction of public traffic, unless otherwise directed by the Engineer. D. Per the project plans, the Contractor shall return all existing and salvageable signs to the City of Palo Alto Municipal Service Center. 3.05 PROVIDE AND INSTALL SIGNAGE A. Contractor shall provide and install new signage per the project plans. B. Installation of a new sign post shall include coordination with U.S.A. Underground, the use of a core drill with a a-inch bit to cut through existing concrete, installation of a new 2-inch sign post, and the use of a portland cement to secure post and finishing to grade. Signs shall be installed so the bottom of the sign is a minimum of 7 feet from the sidewalk or existing grade. New sign post installations shall not use any pole risers to accommodate the new sign installation(s), unless otherwise stated on the project plans. C. For locations shown on the plans where new signs will be installed on existing sign posts and post risers are to be installed, addition of a riser shall include the threading of the existing sign post, installation of a coupling bracket, and pole extension to support the new sign. D. Unless stated otherwise on the project plans, the City of Palo Alto Standard Specifications, or these Specifications, the Contractor shall be responsible for providing all sign materials, including sign bracketing materials. Signs shall be installed with the sign hardware shown in Appendix A of these Specifications. E. Contractor shall notify Engineer as least 72 hours before start of work to allow time for Engineer to mark out sign locations in the field. F. Contractor shall provide and install red retrorefJective casings on sign posts with STOP signs at locations shown on the project plans. 3.06 PAINT RED CURB/EDGE OF PAVEMENT A. Contractor shall paint or refresh curbs and edges of pavement, at locations shown on the project plans, in conformance with the State Standard Specification Section 59-6. Paint material used for street curbs shall be Ennis Paint Company -Standard Dry paint, or approved equal, that meets Federal specification TT-P-1952B. 3.07 INSTALL CITY-FURNISHED RUBEBER ISLAND A. Contractor shall install City-furnished rubber island per the project plans. PART 4 --MEASUREMENT AND PAYMENT 4.01 REMOVE YELLOW STRIPING A. DESCRIPTION Work for this bid item shall include the removal of yellow pavement striping as shown on the project plans and as required in these Specifications, 8. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per linear foot basis, Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item, including the removal of existing raised pavement markers included in the State's traffic stripe details for the existing striping to be removed. 4,02 REMOVE WHITE STRIPING A. DESCRIPTION Work for this bid item shall include the removal of white pavement striping as shown on the project plans and as required in these Specifications, 8. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per linear foot basis. Payment shall include full compensation for furnishing all labor, eqUipment, tools, and materials necessary to complete the work for this bid item, including the removal of existing raised pavement markers included in the State's traffic stripe details for the existing striping to be removed, 4.03 REMOVE WHITE PAVEMENT MARKINGS A. DESCRIPTION Work for this bid item shall include the ramoval of existing white pavement markings as required in these Specifications, 8. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per square foot basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item, 4,04 REMOVE ROADSIDE SIGN AND POST A. DESCRIPTION Work for this bid item shall include the removal of roadside signs and existing sign posts as shown on the project plans and as required in these Specifications. 8, MEASUREMENT AND PAYMENT 8 This item shall be measured and paid on a per each basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item, including. the removal of the existing sign post footing and disposal and backfill of the remaining posthole with Portland cement concrete set flush with existing concrete. 4.05 REMOVE ROADSIDE SIGN A. DESCRIPTION Work for this bid item shall include the removal of roadside signs as shown on the project plans and as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per each basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4.06 THERMOPLASTIC STRIPING, YELLOW, 12 INCHES WIDE A. DESCRIPTION Work for this bid item shall include the placement of a 12 inch wide yellow thermoplastic stripe as required in these SpeCifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid 'on a per linear foot basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4.07 THERMOPLASTIC STRIPING, WHITE, 12 INCHES WIDE A. DESCRIPTION Work for this bid item shall include placement of a 12 inch wide white thennoplastic stripe as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per linear foot basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4.08 THERMOPLASTIC STRIPING, CAL TRANS (STATE) DETAILS 6, 21,28 A. DESCRIPTION Work for these bid items shall include placement of thermoplastic striping per the referenced Caltrans (State) Detail. B. MEASUREMENT AND PAYMENT These items shall be measured and paid on a per linear foot basis. Measurement of any pavement marker linear footege will include the 9 space between the stripes, Payment shall include full compensation for furnishing all labor, equipment, tools,and materials necessary to complete the work for this bid item, including raised pavement markers included as part of the Caltrans Detail. 4,09 PAINT RED CURB/EDGE OF PAVEMENT A DESCRIPTION Work for this bid item shall include painting existing curb or edge of pavement with red paint per the project plans and as required in these Specifications, B, MEASUREMENT AND PAYMENT This item shall be measured and paid on a per linear foot basis, Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item, 4,10 PAINT STREET ADDRESS NUMERALS ON CURB OR EDGE OF PAVEMENT A Payment for work required to paint street address numerals, per the project plans, on existing curb or edge of pavement, shall be included in the prices paid for the various items of work involved, 4,11 YELLOW AND WHITE PAVEMENT MARKINGS A DESCRIPTION Work for these bid items shall include the installation of pavement markings as shown on the project plans and as required in these Specifications, B. MEASUREMENT AND PAYMENT These items shall be measured and paid on a per square foot basis, Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4,12 INSTALL ROADSIDE SIGN AND SIGN POST A, DESCRIPTION Work for this bid item shall include the installation of roadside signs and sign posts as shown on the project plans and as required in these Specifications, B, MEASUREMENT AND PAYMENT This item shall be measured and paid on a per each basis, Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete, the work for this bid item, 4,13 INSTALL ROADSIDE SIGN A DESCRIPTION 10 Work for this bid item shall include the installation of roadside signs on existing and new sign posts as shown on the project plans and as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per each basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4.14 INSTALL RED RETRORELFECTIVE CASING ON SIGN POST A. DESCRIPTION Work for this bid item shall include the installation of red retroreflective casings on sign posts as shown on the project plans and as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per each basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 4.15 INSTALL CITY-FURNISHED RUBBER ISLAND A. DESCRIPTION Work for this bid item shall include the installation of City-furnished rubber island as shown on the project plans and as required in these Specifications. B. MEASUREMENT AND PAYMENT This item shall be measured and paid on a per each basis. Payment shall include full compensation for furnishing all labor, equipment, tools, and materials necessary to complete the work for this bid item. 11 EXHIBITC SCHEDULE OF FEES 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 One Hundred Eighty Thousand Dollars ($180,000.00). 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. RATE SCHEDULE ITE QTY. UNIT DESCRIPTION UNIT PRICE TOTAL PRICE M Provide necessary labor, equipment, materials and tools to 01 1 Lump provide traffic controt, including notifications/postings, per $59,400.00 $59,400.00 Sum the specifications. Linear Provide necessary labor, equipment, materials and tools to 02 926 foot remove yellow striping per the specifications $2.50 $2,315.00 Linear Provide necessary labor, equipment, materials and tools to 03 538 foot remove white striping per the specifications $2.50 $1,345.00 Provide necessary labor, eqUipment, materials and tools to 04 14 Each remove roadside sign and sign post per the specifications. $1.50 $2,100.00 Provide necessary labor, equipment, materials and tools to 05 114 Each remove roadside sign per the specifications .. $80. $9,120.00 Square Provide necessary labor, eqUipment, materials and tools to 06 515 foot remove white pavement markings per the specifications $2.50 $1,287.50 Linear Provide necessary labor, equipment, materials and tools to 07 9836 foot install 12" yellow striping per the specifications $2.95 29,016.20 Linear Provide necessary labor, equipment, materials and tools to 08 7770 foot install 12" white striping perthe specifications. $2.95 $22,921.50 Linear Provide necessary labor, eqUipment, materials and tools to 09 130 foot install State Detail 6 per the specifications $2.25 $292.50 Linear Provide necessary labor, eqUipment, materials and tools to $2.25 $4,425.75 10 1967 foot install State Detail 21 per the specifications Linear Provide necessary labor, equipment, materials and tools to $3.00 $150.00 11 50 foot install State Detail 28 per the specifications Linear Provide necessary labor, eqUipment, materials and tools to $1.00 $2398.00 12 2398 foot paint red curb/edge of pavement per the specifications Square Provide necessary labor, equipment, materials and tools to $5.00 $395.00 13 79 Foot install yellow pavement markings per the specifications. 12 . I I UNIT I ITE : QTY, : DESCRIPTION UNIT PRICE TOTAl PRICE M I I s Provide necessary labor, equipment materials and tools to $5,00 : $7,495,00 14 1499' Quar. Install white pavement markings per the specifications, I : Foot I ! : Provide necessary labor, equipment, materials and tools to $75,00 ' $13,725,00 ! 15 183 Each I Install sign per the specifications ! I I : Provide necessary labor, equipment, materials and tools to : $65,00 I $1,625,00 1 16 I 25 Each Install red retno-reflective casing on sign post per the I i specifications, i I I Provide necessary labor, eqUipment, materials and tools to 1$220.00 $12,320,00 I 17 56 Each Install sign and sign post per the specifications, ! 18 I Provide necessary labor, equipment, materials and tools to 1$850,00 $1,700.00 2 Each Install City-furnished rubber Island per the specifications. I 1 19 I Provide necessary labor, equipment materials and tools to $160,00 . $1280 I 8 Hour I provide tree trimming per the specifications, I 13 EXIllBITD INSURANCE REQUIREMENTS CONTRACTORS TO TIlE CITY OF PALO ALTO (CITY), AT TIlEIR SOLE EXPENSE" SHALL FOR TIlE TERM OF TIlE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN TIIE AMOUNTS FOR TIlE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPAI'<lES 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 WITII CITY'S INSURA'ICE REQUIREMENTS, AS SPECIFIED, BELOW' MINIMUM LWITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES , YES NO : YES l. OCCURRENCE AGGREGATE WORKER'S COMPENSATION STA1UTORY EMPWYER'S UABILITY i STATUTORY BODlL Y INJURY $1,000,000 81,000,000 GENERAL LL<illILITY, lNCLUDING PERSONAL lNJURY, BROAD PeRM PROPERTY DAMAGE $1,000,000 81,000,000 • PROPERTY DAMAGE BLANKET CON1RACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERlY $1,000,000 SI,OOO,OOO LIABILITY DA.MAGE COMBINED. , BODILY lNJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 AUTOMOBILE LTABlLITY, -EACH OCCURRENCE $1,000,000 $1,000,000 iNCLUDING ALL OWNED, HIRED, NON~Ow:-lED PROPERTY DAMAGE Sl,OOO,OOO $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 • $1,000,00~ DAMAGE COMBlNED PROFESSIONAL LIABILITY, I INCLUDING, ERRORB MID OMISSIONS, MALPRACTICE (WIlEN APPLICABLE), AND NEGLIGENT I PERFORMANCE ALL DAMAGES $1000 000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT. Irs 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, EMPWYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. INSURANCE COVERAGE MlJSTINCLUDE: A. A PROVISION FOR A WRITTEN TIIIRTY DAY ADV A'fCE r.;OTICE TO CITY OF CHA.'l"GE IN COVERAGE OR OF COVERAGE CA.'<CELLATIOK; AND B. A COKTRACTIJAL LIABILITY ENDORSEMEKT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMEKT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR AFPROV AL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, V.1TH RESPECT TO TIlE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" 12 A. PRIMARY COVERAGE WI1li RESPECT TO CLAIMS ARlSING OUT OF TIlE OPERATIONS OF TIlE NAMED INSURED, INSURANC'E AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDmONAL TO OR CONTRIBUTING \\-11M ANY OlliER INSURANCE CARRIED BY OR FOR TIlE BENEFIT OF TIlE ADDITIONAL INSUREDS. B. CROSS LIABILITY TIlE NAMING OF MORE 1HAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER TIlE POLlCY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF HlE INSURED AGAINST AN011lER, BUT HllS ENDORSEMENT, AND HlE NAMING OF MULTIPLF INSUREDS, SHALL NOT INCREASE 11lE TOTAL IJABlLlTY OF 11lE COMPANY UNDER TIllS POLICY. C. NOTICE OF CANCELLATION L IF TIlE POLlCY IS CANCELED BEFORE ITS EXPIRATION DATE EOR ANY REASON OlliER TIL<\}! TIlE NON·PA YMENT OF PREMIUM, TIlE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A 11IlRTY (30) DAY WRITTEN N011CE BEFORE TIlE EFFECTIVE DATE OFCA:'lCELLA TION .. 2. IF 11lE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR TIlE NON· PAYblENT OF PREMIUM, TIlE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE TIlE EFFECl1VE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCIIASING ArID COJl.'TRACT ADMINISTRA nON CITY OF PALO ALTO P.O. BOX 16250 PALOAL·ro,CA 94303 13 City of Palo Alto (ID # 4168) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Renewable Energy Procurement Program Update Title: Recommendation that the City Council Adopt a Resolution Amending the City’s Renewable Energy Resources Procurement Plan in Compliance with the California Energy Commission's Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities From: City Manager Lead Department: Utilities Recommendation Staff recommends that the Council of the City of Palo Alto adopt a resolution (Attachment A) amending the City of Palo Alto Electric Utility’s Renewable Energy Resources Procurement Plan consistent with the “Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities” (RPS Regulations), recently adopted by the California Energy Commission (CEC). Executive Summary Palo Alto has a Council-approved goal to provide 33% of the City’s electricity needs from renewable energy resources by 2015. The City’s goal exceeds California’s Renewable Portfolio Standard (RPS) mandate of 33% by 2020. Section 399.30 of California’s Public Utilities Code requires the City to formally adopt an RPS procurement plan that recognizes certain elements of the State’s RPS law. The Council first adopted the City’s electric utility Renewable Energy Resources Procurement Plan (RPS Procurement Plan) in December 2011, and since then, the CEC adopted new RPS regulations, effective October 1, 2013. Palo Alto must update its RPS Procurement Plan to reflect additional requirements in the CEC’s regulations. One of the key new provisions reflected in the proposed RPS Procurement Plan is a way to use the City’s early investments in renewable energy to count towards future compliance requirements. Staff requests that Council approve the amended RPS Procurement Plan (Attachment C) to comply with state law and CEC regulations. Adoption of the proposed plan does not preclude the City’s implementation of its more stringent RPS goals. City of Palo Alto Page 2 Background California’s RPS Policy History The State of California has an RPS program that is intended to increase the amount of electricity generated each year from eligible renewable energy resources. In 2002, Senate Bill (SB) 1078 established California's first RPS, which required investor owned utilities (IOUs) to generate at least 20% of their electric retail sales per year with eligible renewable energy resources by 2017. This objective was accelerated in 2006 under SB 107, which required IOUs to achieve the 20% target by 2010. While both of these laws applied specifically to IOUs, SB 1078 directed local publicly owned utilities (POUs)—such as Palo Alto—to implement and enforce an RPS that “recognizes the intent of the Legislature to encourage renewable resources, while taking into consideration the effect of the standard on rates, reliability, and financial resources and the goal of environmental improvement.” POU governing boards, including Palo Alto’s City Council, are granted discretion over the mix and costs of resources procured for their own RPS programs, and can also adopt more stringent standards. In April 2011 California’s Governor Brown signed SB 2 of the First Extraordinary Session (SB X1- 2), known as the California Renewable Energy Resources Act, into law, which extended California’s RPS mandate to 33% by 2020. In addition, this new RPS law applied to all electricity retailers (or load serving entities, LSEs) in the state—including POUs such as Palo Alto. SB X1-2 directed the CEC to adopt regulations specifying procedures for enforcement of a Renewables Portfolio Standards for POUs. After some delay, the CEC adopted its final RPS Regulations, which became effective October 1, 2013. The CEC RPS Regulations are provided in Attachment D. One of the key differences between SBX1-2 and the two previous state RPS laws is that the new law explicitly gives state regulators the authority to enforce the RPS mandate on POUs. Under SB 1078 and SB 107 the CEC was responsible only for certifying renewable facilities as eligible for the RPS and for developing a tracking and verification system to prevent the double- counting of renewable energy output. In contrast, SBX1-2 permits the California Air Resources Board (CARB) to impose financial penalties upon POUs for failure to comply with state RPS regulations. Palo Alto’s RPS Policy In March 2011, Council adopted Palo Alto’s current renewable resource portfolio standard as part of the updated Long-term Electric Acquisition Plan (LEAP) (Resolution 9152, Staff Report No. 1317). The relevant portion of the applicable LEAP Strategy #3 is as follows: City of Palo Alto Page 3 Renewable Portfolio Standard – Reduce the carbon intensity of the electric portfolio by acquiring renewable energy supplies by: A. Pursuing a target level of renewable purchases of 33% by 2015 with the following attributes:  The contracts for investment in renewable resources shall not exceed 30 years in term.  Pursue only renewable resources deemed to be eligible by the CEC.  Evaluate use of Renewable Energy Certificates (RECs) to meet RPS. B. Ensuring that the retail rate impact for renewable purchases does not exceed 0.5 ¢/kWh on average. Despite having adopted a more stringent goal than required by the state mandate, California’s Public Utilities Code requires the City to formally adopt an RPS procurement plan that recognizes certain elements of the State’s RPS law. Specifically, the City’s Plan must show how the City will achieve RPS procurement requirements for each compliance period. Council first adopted the City’s electric utility RPS Procurement Plan on December 12, 2011 (Resolution No. 9215, Staff Report No. 2225). The subject of this report is an update to Palo Alto’s RPS procurement plan to reflect the new requirements and provisions adopted in the CEC’s regulations. Included in the update is the City’s adoption of rules dealing with cost limitation, excess renewables procurement, the historic carryover of pre-2011 procurement, portfolio balance requirement reductions and delay of timely compliance. In December 2011, Council also adopted an enforcement plan for the RPS program, which may also be updated in the next few months, but is not the subject of this report Discussion RPS Procurement Plan Attachment C presents the proposed amended RPS Procurement Plan. The RPS Procurement Plan references the Public Utilities Code and CEC RPS Regulations but does not reproduce the regulatory language. The RPS Procurement Plan requires CPAU to procure a minimum quantity of electricity products from eligible renewable energy resources as a specified percentage of CPAU’s total kilowatt hours sold to its retail end-use customers. This quantity is measured during each of three compliance periods, and annually thereafter, to achieve the targets specified in SB X1-2 and the CEC’s RPS Regulations. In addition to establishing minimum procurement targets, the City’s RPS procurement plan includes the following elements: 1. Adopts the CEC’s definitions of the Procurement Content Categories (PCCO, PCC1, PCC2, and PCC3) for the different types of renewable energy as a function of when contracts City of Palo Alto Page 4 were executed, where the generation supply is located and how the renewable attributes are bundled with the energy generation; 2. Adopts the CEC’s limits on portfolio balance requirements in terms of the percentage of PCC1, PCC2, and PCC3 that can be contained in CPAU’s RPS portfolio. 3. Describes the process, calculation and criteria for using historic carryover, whereby historic carryover recognizes early investments in renewable energy by allowing pre- December 31, 2010 generation to count towards future compliance requirements under certain conditions; 4. Outlines procedures for applying excess renewable energy from one compliance period to a subsequent period; 5. Describes procedures allowing for a delay of timely compliance due to mitigating circumstances; 6. Allows for the adoption of cost limitations for procurement expenditures; 7. Allows for the reduction or relaxation of the portfolio balance requirements; 8. Summarizes external reporting requirements; and 9. Provides for an annual review of the plan. Attachment B highlights the changes made to the City’s original RPS Procurement Plan to reflect the changes and additions included in the CEC’s RPS Regulations effective October 1, 2013. Resource Impact Adoption of the proposed RPS Procurement Plan amendments is not expected to have an immediate impact on resources because Council has already adopted RPS goals that exceed the State mandates. Therefore, adoption of this RPS Procurement Plan does not add any further procurement requirements and it is unlikely the City will be out of compliance with California’s RPS program and subject to fines imposed by CARB. Policy Implications Adoption of an RPS Procurement Plan is required under California Public Utilities Code section 399.30. This does not prevent the City from setting and implementing more aggressive RPS targets, as it has already done. City of Palo Alto Page 5 Environmental Review Adoption of the RPS Procurement Plan does not meet the definition of a project pursuant to Public Resources Code Section 21080, subdivision (b)(8), thus no California Environmental Quality Act review is required. Attachments:  Attachment A: Resolution (PDF)  Attachment B: RPS Procurement Plan Redline (PDF)  Attachment C: RPS Procurement Plan November 2013 (PDF)  Attachment D: CEC RPS Regulations (PDF) * NOT YET APPROVED * 131101 dm 6051994 1 Resolution No. _________ Resolution of the Council of the City of Palo Alto Amending the City of Palo Alto’s Renewable Energy Resources Procurement Plan in Compliance with the California Energy Commission’s Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Utilities R E C I T A L S A. In April 2011, Governor Brown signed Senate Bill X1-2, the California Renewable Energy Resources Act, into law. B. Senate Bill X1-2 states that the intent of the Legislature is to increase the amount of electricity generated per year from eligible renewable resources to an amount that averages 20 percent of total electricity sold to retail customers in California by December 31, 2013, and at least 33 percent by December 31, 2020. C. Senate Bill X1-2 applies to local publicly owned utilities, including the City of Palo Alto acting by its Utilities Department (“CPAU”). D. The City’s Long-term Electric Acquisition Plan’s (“LEAP”) Objectives, Strategies, and Implementation Plan sets an RPS goal that requires 33 percent of City of Palo Alto’s electricity retail sales be served by eligible renewable energy resources by year-end 2015 (Resolution Number 9152). E. On December 12, 2011, the Council adopted Resolution Number 9215, approving the City’s Electric Utility Renewable Energy Resources Procurement Plan (“CPAU RPS Procurement Plan”), in compliance with Senate Bill X1-2. This action did not preclude Council’s implementation of the more aggressive Renewables Portfolio Standards it adopted earlier that year. F. Senate Bill X1-2 also directed the CEC to adopt regulations specifying procedures for enforcement of the Renewables Portfolio Standards for publicly owned utilities such as CPAU. The CEC subsequently developed and adopted their “Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities” (“CEC RPS Regulations”), effective October 1, 2013. G. The 2013 CEC RPS Regulations contain additional requirements, including specific formulae for calculating the RPS targets, content category definitions and reporting deadlines, which require a revision to the City’s RPS Procurement Plan. The CEC RPS Regulations also provide more optional compliance measures that have been included in the amended RPS Procurement Plan. * NOT YET APPROVED * 131101 dm 6051994 2 The Council for the City of Palo Alto RESOLVES as follows: SECTION 1. The Council hereby finds and declares: 1. Changes in law, reflected in Senate Bill X 1-2, require the City of Palo Alto to conform to California’s Renewable Energy Resources Program by increasing the amount of electricity generated from eligible renewable energy resources per year, so that amount equals at least 33% of total retail sales of electricity in California by year-end 2020. Though the requirements of the State’s RPS program are applicable to local publicly owned utilities, the Council as the local governing body is responsible for implementation of those requirements and the enforcement is delegated to the CEC and the California Air Resources Board. 2. The City must adopt the procurement requirements set forth in California Code of Regulations, Title 20, Division 2, Chapter 13, Sections 3200 ‐ 3208 and Title 20, Division 2, Chapter 2, Article 4, Section 1240 (“CEC RPS Regulations”). 3. The City adopts rules permitting CPAU to apply historic carryover due to CPAU’s early investment in renewable energy resources, to be applied to CPAU’s RPS procurement target for the compliance period ending December 31, 2013, or for any subsequent compliance period, according to the requirements set forth in section 3206 (a)(5) of the CEC’s RPS Regulations. 4. The City adopts rules permitting CPAU to apply excess procurement in one compliance period to subsequent compliance periods, according to the requirements set forth in section 3206 (a)(1) D. of the CEC’s RPS Regulations. 5. The City adopts rules regarding conditions that allow for a waiver of timely compliance and cost limitations, according to the requirements set forth in Public Utilities Code section 399.15 and the CEC’s RPS Regulations. 6. The City adopts rules permitting CPAU to reduce its portfolio balance requirements, according to the requirements set forth in section 3206 (a)(4) of the CEC’s RPS Regulations. 7. The City has provided at least 10 days’ advance notice to the public and the CEC regarding the proposed adoption of the City’s RPS Procurement Plan. SECTION 2. The Council approves the amendments to the City of Palo Alto Renewable Energy Resources Procurement Plan and its effective date of November 12, 2013. The City Manager or his designee, the Director of Utilities, shall review the CPAU RPS Procurement Plan annually in order to determine the City’s compliance with California’s RPS program, and shall comply with the reporting requirements as described in Section 3207 of the CEC’s RPS Regulations. * NOT YET APPROVED * 131101 dm 6051994 3 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 1 of 17 CITY OF PALO ALTO ELECTRIC UTILITY’S RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN Per SENATE BILL X1 2 Version 2 Last Revised: October 21, 2013 REVISION HISTORY Version Date Resolution Description 2 11/04/13 Updated to reflect adoption of final CEC regulations, effective 10/1/13, permitting the City to adopt rules for Excess Procurement, Compliance Delay, Cost Limitations, Portfolio Balancing Reductions, and Historic Carryover.. Removed sections that duplicated regulatory language and provided references in place. Other non-substantive language and document clean up. 1 12/12/11 9215 Original version per Senate Bill X1 2 requirements PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 2 of 17 INTRODUCTION: This document presents City of Palo Alto Utilities’ (CPAU) Renewable Energy Resources Procurement Plan, as required for compliance with Senate Bill (SB) X1 2.1 This legislation, which was enacted signed into law in the 2011-2012 First Extraordinary Session of the Legislature, modifies modified the state’s renewable portfolio standard (RPS) program and sets forth new RPS requirements applicable to publicly owned utilities (POUs). CPAU, as a publicly owned utilityPOU, is covered under the new legislationmust comply with SB X1 2. Pursuant to Public Utility Code § 399.30(a) each publicly owned utilityPOU must adopt and implement a renewable energy resources procurement plan (RPS Procurement Plan). SB X1 2 also directed the California Energy Commission's (CEC) to adopt regulations specifying procedures for enforcement of the Renewables Portfolio Standards for POUs. This Pprocurement Pplan replaces the RPS Procurement Plan approved by the Council of the City of Palo Alto (CPA Council) on December 12, 2011 (Resolution No. 9215, Staff Report No. 2225) and is consistent with the provisions set forth in the “Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities2” (CEC’s RPS Regulations), adopted by the CEC and effective October 1, 2013. In addition to the development of an RPS Procurement Plan, SBX1 2 requires publicly owned utilities to adopt and implement a separate program for the enforcement of the RPS Procurement Planthe CPAU enforcement program by January 1, 2012.3 City of Palo Alto’s enforcement program is not addressed in this document, but rather, in a separate report. CPAU’s RPS Procurement Plan, as reflected in Sections 1-13 below consists of: (1) A. Purpose of the plan; B. pPlan elements that are directly mandated by the legislationPlan Elements; (2) C. measures Measures that address each of the optional provisions set forth in §399.30(d) and RPS Regulations Ssection 3206; and (3) D. RPS reportingAdditional provisions. Where appropriate, this RPS Procurement Plan includes section citations to the legislationPublic Utilities Code (PUC) and the CEC’s RPS Regulations. 1 SB 2 1X (Simitian, Stats. 2011, ch.2011 1) was signed by California’s Governor on April 12, 2011, and made significant revisions to Public Utilities Code sections 399.11-399.32, the California Renewable Portfolio Standard Program. Various provisions of sections 399.11, et seq., were subsequently modified. 2 California Code of Regulations, Title 20, Division 2, Chapter 13, Sections 3200 ‐ 3208 and Title 20, Division 2, Chapter 2, Article 4, Section 1240. 3 Pursuant to § 399.30(e), POUs must adopt a “program for enforcement” of the RPS Procurement Plan on or before January 1, 2012, at a publicly noticed meeting with not less than 30 days prior notice given to the public. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 3 of 17 1A. PURPOSE (PUC § 399.30(a)) In order to fulfill unmet long-term generation resource needs, CPAU the CityCPA Council of the City of Palo Alto (the Council) shall adopts and implements this RPS Procurement Plan that requires the utility to procure a minimum quantity of electricity products from eligible renewable energy resources, including renewable energy credits, as a specified percentage of CPAU’s total kilowatt hours sold to its retail end-use customers, during each compliance period, to achieve the targets specified in SBX1 2 and the RPS Regulations. The CPA Council voluntarily adopted targets for CPAU that exceed those of SB X1 2 (Resolution 9152, Staff report No. 1317, March 2011). This RPS Procurement Plan establishes the framework for achieving the minimum requirements under SB X1 2 and the RPS Regulations, and does not include or preclude actions taken by CPAU to achieve the CPA Council’s goals. B. PLAN ELEMENTS CPAU will comply with the requirements for renewables procurement targets set forth in SBX1- 2 and the and consistent with the provisionsapplicable enforcement procedures codified in of the CEC’s RPS Regulations, including implementation of the following Plan Elements:. 1. Compliance Period Definitions CPAU adoptshas adopted the relevant compliance period definitions peridentified in PUC § 399.30(b). 2. Compliance Period Definitions CPAU shall meet or exceed the following procurement targets of renewable energy resources for each compliance period per PUC §§ 399.30(c)(1) and (2) and the CEC’s RPS Regulations:. Compliance Period 1 Target ≥ 20% × (CPAU Retail Sales2011_+ CPAU Retail Sales2012 + CPAU Retail Sales2013). Compliance Period 2* Target ≥ 20% × CPAU Retail Sales2014 + 20% × CPAU Retail Sales2015 + 25% × CPAU Retail Sales2016 Compliance Period 3* Target ≥ 27% × CPAU Retail Sales2017 + 29% × CPAU Retail Sales2018 + 31% × CPAU Retail Sales2019 + 33% × CPAU Retail Sales2020 Annually thereafter, CPAU shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail kilowatt hours sales * The annual procurement targets in Compliance periods 2 and 3 are soft targets. That is, by the end of each procurement period, CPAU’s RPS total for the period has to equal the sum of the annual targets, but the targets do not have to be achieved in any one year. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 4 of 17 3. Portfolio Content Categories (PCC) CPAU adopts the definitions for qualifying electric products and Portfolio Content Categories (PCC) per PUC § 399.16 andSections 3202 and 3203 of the CEC’s RPS Regulations. a. How CPAU Plans to Achieve its RPS Requirements per Section 3205(a)(1) of the CEC’s RPS Regulations CPAU’s RPS portfolio will include grandfathered contracts (commonly referred to as “PCC 0”), which are executed prior to June 1, 2010, and PCC 1 eligible resources, which are typically directly or dynamically connected to a California balancing authority. CPAU’s RPS portfolio may also include PCC 2 eligible resources that are scheduled into a California balancing authority, and PCC 3 eligible resources, which are typically unbundled renewable energy credits (RECs). CPAU shall determine to whichthe category to which each procured resource belongs. The grandfathered or PCC 0 resources are those electricity products defined in Section 3202(a)(2) of the CEC’s RPS Regulations that are procured pursuant to a contract or ownership agreement executed before June 1, 2010, and that count in full towards CPAU’s RPS procurement requirements. PCC 1, 2, and 3 resources are defined in Section 3203 of the CEC’s RPS Regulations. In its 2011 and 2012 RPS Compliance Report, CPAU listed a number of PCC 0 contracts. All of these contracts extend through the end of Compliance Period 3. All but one of the PCC 0 resources have achieved commercial operation, and the remaining resource is currently under construction and is expected to achieve commercial operation early 2014. CPAU anticipates being able to meet its RPS targets through Compliance Period 2 with its PCC 0 contracts. CPAU has currently executed four contracts for PCC 1 resources. The first, executed in 2012, has not yet commenced construction, but the contract specifies that the project must commence operation in 2014. The three others, executed in 2013, are contracted to commence operation in 2016. With these four PCC 1 resources, CPAU forecasts that its renewable energy supplies will be well in excess of Compliance Period 3 requirements. In addition, CPAU issued an RFP in the fall of 2013 for renewable power for terms ranging from 5 to 30 years from any resource that meets the CEC’s RPS eligibility criteria (with a strong preference for proposals that would qualify as PCC 1). PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 5 of 17 4. Portfolio Balancing Requirements Should any of CPAU’s existing contracts fail to achieve operation, such that additional resources must be acquired to meet the requirements contained in the CEC’s RPS Regulations, then CPAU shall meet the portfolio balancing requirements specifying the limits on quantities for PCC 1 and PCC 3 per PUC § 399.30(c)(3), §§ 399.16(c)(1) and (2). CPAU shall apply the formulae specified in Section 3204(c) of the CEC’s RPS Regulations to determine these portfolio balance requirements. 5. Reasonable Progress CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet its compliance period targets during intervening years per PUC §§ 399.30(c)(1) and (2). 2. Compliance Periods (§ 399.30(b)) A. Compliance Period 1: January 1, 2011, to December 31, 2013, inclusive. B. Compliance Period 2: January 1, 2014, to December 31, 2016, inclusive. C. Compliance Period 3: January 1, 2017, to December 31, 2020, inclusive. D. Annual Compliance Periods: Annually after 2020. 3. Procurement Targets of Renewable Energy Resources for Each Compliance Period (§§ 399.30(c)(1) and (2)) A. During Compliance Period 1, January 1, 2011 to December 31, 201, CPAU shall procure renewable energy resources equivalent to an average of at least twenty percent (20%) of retail sales B. By the end of Compliance Period 2, December 31, 2016, CPAU shall procure renewable energy resources equivalent to at least twenty-five percent (25%) of retail sales C. By the end of Compliance Period 3, December 31, 2020, CPAU shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail sales.-() D. Commencing on December 31, 2021, and annually thereafter, CPAU shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail sales. 4. Reasonable Progress Towards Meeting Compliance Period Targets During Intervening Years (§§ 399.30(c)(1) and (2)) PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 6 of 17 A. By December 31, 2014, CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the twenty-five percent (25%) RPS target by 2016. B. By December 31, 2015, CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the twenty-five percent (25%) RPS target by 2016. C. By December 31, 2017, CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. D. By December 31, 2018, CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. E. By December 31, 2019, CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. 5. Procurement Requirements – Definitions for Content Categories (§399.30(c)(3)) CPAU’s RPS Procurement Plan shall consist of procurement Content Categories that meet the criteria for the following eligible renewable energy resource electricity products: A. Content Category 1 (consistent with § 399.16(b)(1): Resources in this category shall either: (A) Have a first point of interconnection with a California balancing authority, have a first point of interconnection with distribution facilities used to serve end users within a California balancing authority area, or are scheduled from the eligible renewable energy resource into a California balancing authority without substituting electricity from another source. The use of another source to provide real-time ancillary services required to maintain an hourly or subhourly import schedule into a California balancing authority shall be permitted, but only the fraction of the schedule actually generated by the eligible renewable energy resource shall count toward this portfolio content category. (B) Have an agreement to dynamically transfer electricity to a California balancing authority. B. Content Category 2 (consistent with § 399.16(b)(2)): Resources in this category shall include firmed and shaped eligible renewable energy resource PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 7 of 17 electricity products providing incremental electricity and scheduled into a California balancing authority. C. Content Category 3 (consistent with § 399.16(b)(3)): Resources in this category shall include eligible renewable energy resource electricity products, or any fraction of the electricity generated, including unbundled renewable energy credits, that do not qualify under the criteria of Content Category 1 or Content Category 2. D. Grandfathered Resources (§ 399.16(d)): Any contract or ownership agreement originally executed prior to June 1, 2010, shall count in full towards the procurement requirements, if all of the following conditions are met: (1) The renewable energy resource was eligible under the rules in place as of the date when the contract was executed. (2) Any contract amendments or modifications occurring after June 1, 2010, do not increase the nameplate capacity or expected quantities of annual generation, or substitute a different renewable energy resource. (3) The duration of the contract may be extended if the original contract specified a procurement commitment of fifteen (15) or more years. (4) “Eligible renewable energy resource” means an electrical generating facility that meets the definition of a “renewable electrical generation facility” in Section 25741 of the Public Resources Code, subject to the following: . . . (C) A facility approved by the governing board of a local publicly owned electric utility prior to June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article, if the facility is a “renewable electrical generation facility” as defined in Section 25741 of the Public Resources Code. (§ 399.12(e)(1)(C). Resources procured prior to June 1, 2010 shall be counted for RPS compliance without regard to the limitations on the use of each portfolio Content Category as described in Section 6. 6. Procurement Requirements – Quantity for Content Categories (§ 399.30(c)(3), § 399.16(c)(1) and (2)) A. Compliance Period 1 Procurement Requirements: For Compliance Period 1, CPAU shall procure not less than fifty percent (50%) of the eligible renewable energy resource electricity products associated with contracts executed after PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 8 of 17 June 1, 2010 from Content Category 1, and not more than twenty-five percent (25%) from Content Category 3. B. Compliance Period 2 Procurement Requirements: For Compliance Period 2, CPAU shall procure not less than sixty-five percent (65%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than fifteen percent (15%) from Content Category 3. C. Compliance Period 3 Procurement Requirements: For Compliance Period 3, CPAU shall procure not less than seventy-five percent (75%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than ten percent (10%) from Content Category 3. D. Annual Procurement Requirements After 2020: Beginning in calendar year 2021 and annually thereafter, CPAU shall procure not less than seventy-five percent (75%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than ten percent (10%) from Content Category 3. C. OPTIONAL COMPLIANCE MEASURES As permitted by Section 3206(a) of the CEC’s RPS Regulations, CPA Council hereby adopts rules permitting the use of each the following five optional compliance measures included in the CEC’s RPS Regulations: Excess Procurement, Delay of Timely Compliance, Cost Limitations, Portfolio Balance Requirement Reduction, and Historic Carryover. historic carryover, excess procurement, delay of timely compliance, cost limitations, and portfolio balance requirement reduction. Delay of timely compliance, cost limitations, and portfolio balance requirement reduction will only be triggered by unexpected circumstances and upon review and approval by the CPA Council. e. Council Review. 71. Excess Procurement (PUC § 399.30(d)(1), §399.13(a)(4)(B)) a. Adoption of Excess Procurement Rules. The CPA Council has elected to adopt rules permitting CPAU to apply excess procurement in one compliance period to a subsequent compliance period, as described in Section 3206(a)(1) of the CEC’s RPS Regulations. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 9 of 17 b. Limitations of CPAU’s’ Use of Excess Procurement. At the CPA Council’s sole discretion, CPAU shall be allowed to apply excess procurement (Excess Procurement) from one compliance period to subsequent compliance periods as long as the following conditions are met: A 1a. CPAU may accumulate, beginning on January 1, 2011, Excess Procurement from one Compliance Period to be applied in any subsequent Compliance Period, including compliance years following 2020. B 2b. In calculating the quantity of Excess Procurement, CPAU shall deduct from actual procurement quantities, the total amount of procurement associated with contracts of less than ten (10) years in duration. C 3c. Eligible resources must be from Content Category 1 or Content Category 2 or Grandfathered Resources to be Excess Procurement. Resources from Content Category 3 will not count towards Excess Procurement. c. Excess Procurement Calculation. CPAU willshall calculate its Excess Procurement according to formulae in section 3206 (a)(1) D. of the CEC’s RPS Regulations. d. Council Review. CPAU’s use of the Excess Procurement to apply towards CPAU’s RPS procurement target in any compliance period will be reviewed by CPA Council during its annual review as per section D.3. of this RPS Procurement Plan. 82. Waiver Delay of Timely Compliance (§ 399.30(d)(2), § 399.15(b)(5)) Aa. Adoption of Delay of Timely Compliance Rules. The CPA Council has elected to adopt rules permitting CPAU’s Council to make a finding that conditions beyond CPAU’s control exist to delay timely compliance with RPS procurement requirements, as described in Section 3206(a)(2) of the CEC’s RPS Regulations. b. Delay of Timely Compliance Findings. The CPA Council may make a finding, based on sufficient evidence presented by CPAU staff, and as described in this Section 3, that is limited to one or more of the following causes of delay, and shall demonstrate that CPAU would have met its RPS procurement requirements but for the cause of the delay: Waiver of Timely Compliance: Pursuant to Public Utilities Code § 399.15 and § 399.30 and the CEC RPS Regulations, CPAU adopts the option of requesting the CPA Council’s approval to delay CPAU’s timely compliance with SB X1 2 and the CEC RPS Regulations in the event under conditions beyond CPAU’s control. Enforcement of timely compliance shall be waived if CPAU demonstrates to the PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 10 of 17 Council that any of the following conditions are beyond CPAU’s control, and will prevent timely compliance: (1.) Inadequate Transmission (§ 399.15(b)(5)(A)): i. There is inadequate transmission capacity to allow for sufficient electricity to be delivered from CPAU’s proposed eligible renewable energy resource projects using the current operational protocols of the California Independent System Operator (CAISO) Balancing Authority Area. In making its findings relative to the existence of this condition, CPAU’s deliberations shall include, but not be limited to the following: ii. If the CPA Council’s delay finding rests on circumstances related to CPAU’s transmission resources or transmission rights, the CPA Council may find that : (i) Whether a.) CPAU has undertaken, in a timely fashion, reasonable measures under its control and consistent with its obligations under local, state, and federal laws and regulations, to develop and construct new transmission lines or upgrades to existing lines intended to transmit electricity generated by eligible renewable energy resources, in light of its expectation for cost recovery. b.) CPAU has taken all reasonable operational measures to maximize cost-effective purchases of electricity from eligible renewable energy resources in advance of transmission availability.. In determining the reasonableness of a CPAU’s actions, CPAU shall consider its expectations for full-cost recovery for these transmission lines and upgrades, and (ii) Whether CPAU has taken all reasonable operational measures to maximize cost-effective deliveries of electricity from eligible renewable energy resources in advance of transmission availability. (2.) Permitting, interconnection, or other factors that delayed procurement or insufficient supply. (399.15(b)(5)(B)). i. Permitting, interconnection, or other circumstances have delayed procured eligible renewable energy resource projects, or there is an insufficient supply of eligible renewable energy resources available to CPAU. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 11 of 17 ii. In making its findings relative to the existence of this condition, CPA Council’s deliberations shall include, but not be limited to the following: (ia) Whether CPAU prudently managed portfolio risks, including, but not limited to, holding solicitations for RPS-eligible resources with outreach to market participants and relying on a sufficient number of viable projects; (iib) Whether CPAU sought to develop one of the following: its own eligible renewable energy resources, transmission to interconnect to eligible renewable energy resources, or energy storage used to integrate eligible renewable energy resources. (iiic) Whether CPAU procured an appropriate minimum margin of procurement above the minimum procurement level necessary to comply with the renewables portfolio standard to compensate for foreseeable delays or insufficient supply; (ivd) Whether CPAU has taken reasonable measures, under its control to procure cost-effective distributed generation and allowable unbundled renewable energy credits; (v) Whether any of CPAU’s existing and operating renewable energy resources suffers a force majeure event that causes the complete or partial destruction of the generator resource or significant damage to the generator resource thus necessitating an extended forced outage. (3.) Unanticipated curtailment to address needs of the balancing authority. (§ 399.15(b)(5)(C)). Bc. Procedures Upon Approving Waiver: In the event of a Waiver of Timely Compliance due to any of the factors set forth above, CPAU shall implement the following procedures: (1.) Establish additional reporting for intervening years to demonstrate that reasonable actions under the CPAU’s control are being taken (§399.15(b)(6)). (2.) Require a demonstration that all reasonable actions within the CPAU’s control have been taken to ensure compliance in order to grant the waiver (§ 399.15(b)(7)). PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 12 of 17 C. Prior Deficits: In no event shall deficits from prior compliance periods be added to future compliance periods (§ 399.15(b)(9)). 93. Cost Limitations for Expenditures (PUC § 399.30(d)(3), § 399.15(c)) Aa. Cost Limitations for Expenditures: Adoption of Delay of Cost Limitation RulesCost Limitations for Expenditures. The CPA Council has elected to adopt rules for cost limitations on the procurement expenditures used to comply with CPAU’s procurement requirements, as described in Section 3206(a)(3) of the CEC’s RPS Regulations. CPA CouncilCity of Palo Alto, at its sole discretion, may elect to establish new cost limitations for all eligible renewable energy resources used to comply with the renewables portfolio standard. Any suchThese cost limitation ruless will be developedare intended to be consistent with PUC §399.15(c). b. Considerations in Development of Cost Limitation Rules. In adopting cost limitation rules, the CPA Council has relied on the following: (1) In adopting new rules, CPA Council shall rely on 1). This Pprocurement Pplan; 2) as well as: 1) procurementProcurement expenditures that approximate the expected cost of building, owning, and operating eligible renewable energy resources; and 3) , and 2) theThe potential that some planned resource additions may be delayed or canceled; and 4) (2) In addition to sectionPUC §399.15(c), CPA Council may take into account Llocal and regional economic conditions and the ability of CPAU’s customers to afford produced or procured energy products. These economic conditions may include but are not limited to unemployment, wages, cost of living expenses, the housing market, and cost burden of other utility rates on the same customers. CPAThe CPA Council may also consider cost disparities between customer classes within Palo Alto, and between CPA customers and other POU and IOU customers in the region. dc. Cost Limitations. City of Palo Alto’s current RPS policy requires that CPAU pursue a target level of renewable purchases of 33% while “[e]nsuring that the retail rate impact for renewable purchases does not exceed 0.5 ¢/kWh on average”, i.e., the incremental cost of the renewable resource over and above current market prices for the estimated cost of an equivalent volume and shape of alternative non-RPS resources shall not exceedcause a retail rate impact in excess of 0.5 PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 13 of 17 ¢/kWh on average. This limit was first established by CPAthe CPA Council in October 2002 based on public input, and the goal of balancing resource reliability and cost considerations in the consideration of investment in renewable and energy efficiency resources. . City of Palo Alto ed. Actions to be Taken if Costs Exceed Adopted Cost Limitation. If costs are anticipated to exceed the cost limitations set by CPA Council, staff will present proposals to the City of Palo Alto’s Utilities Advisory Commission (UAC) to either reduce the RPS requirements or increase the cost limitation. Staff and UAC’s recommendations will then be taken to CPA Council for action. Sec. 3206(a)(3)(E) requires a list of actions to be taken if the projected costs exceed the cost limitation. It’s up to you what to include. I’d suggest starting with UAC/Council review of an approach presented by Staff. shall review the need for cost limitations as part of the annual review process described in Section 12. 4. Portfolio Balance Requirement Reduction a. Adoption of Portfolio Balance Requirement Reduction Rules. The CPA Council has elected to adopt rules that allow for the reduction of the portfolio balance requirement for PCC 1 for a specific compliance period, consistent with PUC Section 399.16(e), as described in Section 3206(a)(4) of the CEC’s RPS Regulations. b. Portfolio Balance Requirement Reduction Rules. CPAU may reduce the portfolio balance requirement for PCC1 for a specific compliance period, consistent with PUC §399.16 (e) and the following: 1. The need to reduce the portfolio balance requirements for PCC 1 must have resulted because of conditions beyond CPAU’s control, as provided in Section 3206(a)(2) of the CEC’s RPS Regulations. 2. CPAU may not reduce its portfolio balance requirement for PCC 1 below 65 percent for any compliance period after December 31, 2016. CPAU must comply with the requirements of section 3206 (a)(4) of the CEC’s RPS Regulations should it proceed with this option. 3. Any reduction in portfolio balance requirements for PCC 1 must be adopted at a publicly noticed meeting, providing at least 10 calendar days’ notice to the CEC, and include an updated renewable energy resources procurement plan detailing the portfolio balance requirement changes. CPAU must receive the CPA Council’s approval at a publicly noticed meeting to reduce its portfolio balance requirement. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 14 of 17 5. Historic Carryover a. Adoption of Historic Carryover Rules The CPA Council has elected to adopt rules to permit its use of Historic Carryover, as defined in Section 3206(a)(5) of the RPS Regulations, to meet its RPS procurement targets. Current calculations indicate that CPAU has Historic Carryover due to CPAU’s early investment in renewable energy resources. b. Historic Carryover Procurement Criteria CPAU’s use of Historic Carryover is subject to section 3206 (a)(5) of the CEC’s RPS Regulations, including the following: 1) Procurement generated before January 1, 2011 may be applied to CPAU’s RPS procurement target for the compliance period ending December 31, 2013, or for any subsequent compliance period; and 2) The procurement must also meet the criteria of Section 3202 (a)(2) of the CEC’s RPS Regulations; and 3) The procurement must be in excess of the sum of the 2004-2010 annual procurement targets defined in Section 3206(a)(5)(D) of the CEC’s RPS Regulations; and 4) The procurement cannot have been applied to the RPS of another state or to a voluntary claim. 5) The Historic Carryover must be procured pursuant to a contract or ownership agreement executed before June 1, 2010. 6) Both the Historic Carryover and the procurement applied to CPAU’s annual procurement targets must be from eligible renewable energy resources that were RPS-eligible under the rules in place for retail sellers at the time of execution of the contract or ownership agreement, except that the generation from such resources need not be tracked in the Western Renewable Energy Generation Information System. c. Historic Carryover Formula CPAU will calculate its Historic Carryover according to formulae in section 3206 (a)(5)C) and (D) of the CEC’s RPS Regulations. d. Historic Carryover Claims The number of RECs qualifying for Historic Carryover is dependent upon the acceptance by the CEC of CPAU’s applicable procurement claims for January 1, 2004 – December 31, 2010, which are due to the CEC within 90 calendar days after the effective date of the CEC’s RPS Regulations (October 30, 2013). The Historic Carryover submittal shall also include baseline calculations, annual procurement target calculations, and any other pertinent data. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 15 of 17 e. Council Review CPAU’s use of the Historic Carryover to apply towards CPAU’s RPS procurement target in any compliance period will be reviewed by CPA Council during its annual review as per section D.3. of this RPS Procurement Plan. D. ADDITIONAL PLAN COMPONENTS 101. Exclusive Control (PUC §399.30(mk)): In all matters regarding compliance with the RPS Procurement Plan, CPAU shall retain exclusive control and discretion over the following: Aa. The mix of eligible renewable energy resources procured by CPAU and those additional generation resources procured by CPAU for purposes of ensuring resource adequacy and reliability. Bb. The reasonable costs incurred by CPAU for eligible renewable energy resources owned by it. 112. Reporting (PUC § 399.30(f), § 399.30(g), § 399.30(l)) Aa. Deliberations on Procurement Plan (§399.30(f)): (1.) Public Notice: Annually, CPAU shall post notice of meetings if the Council of the City of Palo Alto (Council)CPA CPA Council will deliberate in public regarding this RPS Procurement Plan. (2.) Notice to the California Energy Commission (CEC): Contemporaneous with the posting of a notice for such a meeting, CPAU shall notify the CEC of the date, time and location of the meeting in order to enable the CEC to post the information on its Internet website. (3.) Documents and Materials Related to Procurement Status and Plans: When CPAU provides information to the CPA CPA Council related to its renewable energy resources procurement status and future plans, for the CPA CPA Council’s consideration at a noticed public meeting, CPAU shall make that information available to the public and shall provide the CEC with an electronic copy of the documents for posting on the CEC’s Internet website. Bb. Compliance Reporting (Section 3207 of the CEC RPS Regulations) (1) CPAU shall submit an annual report to the CEC by October 31, 2013 for 2011 and 2012 data, and by July 1 for each year thereafter. The reports PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 16 of 17 shall include the information specified in Section 3207(c) of the CEC RPS Regulations. (2) By July 1, 2014; July 1, 2017; July 1, 2021; and by July 1 of each year thereafter, CPAU shall submit to the CEC a compliance report that addresses the annual reporting requirements of the previous section and information for the preceding compliance period as specified in Section 3207(d) of the CEC RPS Regulations. Annual Report to CEC regarding Contract Execution (§399.30(g)) 1. Annually, CPAU shall submit a report to the CEC regarding procurement contracts executed during the prior year. 2. CPAU’s annual report to the CEC regarding contract execution shall include all of the following: a. A description of the eligible renewable energy resource, including the duration of the contract or electricity purchase agreement. b. A description and identification of the electrical generating facility providing the eligible renewable energy resource under the contract. c. An estimate of the percentage increase in CPAU’s total retail sales of electricity from eligible renewable energy resources that will result from the contract. C. Report to CEC and Customers (§399.30(l)) 1. Annually, CPAU shall provide a report to the CEC and customers regarding renewable resources. 2. CPAU’s annual report to the CEC regarding renewable resources shall include all of the following: a. Expenditures of public goods funds collected pursuant to Section 385 for eligible renewable energy resource development, including a description of programs, expenditures, and expected or actual results. b. The resource mix used to serve its customers by energy source. c. CPAU’s status in implementing the renewables portfolio standard pursuant to § 399.30(a) and CPAU’s progress toward attaining the standard following implementation of the RPS Procurement Plan. PALO ALTO’S RPS PROCUREMENT PLAN Effective 11-121-1213 Page 17 of 17 123. Annual Review CPAU’s RPS Procurement Plan shall be reviewed annually by the CPA Council in accordance with CPAU’s “RPS Enforcement Program.” 134. Plan Modifications/Amendments This RPS Procurement Plan may be modified or amended by an affirmative vote of the CPA Council during a public meeting. Any CPA Council action to modify or amend the plan must be publicly noticed in accordance with Section 11D.2.a. Effective Date: This plan shall be effective on January November 112, 20122013. APPROVED AND ADOPTED this _________ day of __________________, 20112013. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 1 of 11 CITY OF PALO ALTO ELECTRIC UTILITY’S RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN Version 2 Last Revised: October 21, 2013 REVISION HISTORY Version Date Resolution Description 2 11/04/13 Updated to reflect adoption of final CEC regulations, effective 10/1/13, permitting the City to adopt rules for Excess Procurement, Compliance Delay, Cost Limitations, Portfolio Balancing Reductions, and Historic Carryover. Removed sections that duplicated regulatory language and provided references in place. Other non-substantive language and document clean up. 1 12/12/11 9215 Original version per Senate Bill X1 2 requirements PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 2 of 11 INTRODUCTION: This document presents City of Palo Alto Utilities’ (CPAU) Renewable Energy Resources Procurement Plan, as required for compliance with Senate Bill (SB) X1 2.1 This legislation, which was signed into law in the 2011-2012 First Extraordinary Session of the Legislature, modified the state’s renewable portfolio standard (RPS) program and set forth RPS requirements applicable to publicly owned utilities (POUs). CPAU, as a POU, must comply with SB X12. Pursuant to Public Utility Code § 399.30(a) each POU must adopt and implement a renewable energy resources procurement plan (RPS Procurement Plan). SB X1 2 also directed the California Energy Commission (CEC) to adopt regulations specifying procedures for enforcement of the Renewables Portfolio Standards for POUs. This Procurement Plan replaces the RPS Procurement Plan approved by the Council of the City of Palo Alto (CPA Council) on December 12, 2011 (Resolution No. 9215, Staff Report No. 2225) and is consistent with the provisions set forth in the “Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities2” (CEC’s RPS Regulations), adopted by the CEC and effective October 1, 2013. CPAU’s RPS Procurement Plan consists of: A. Purpose of the plan; B. Plan Elements; C. Measures that address each of the optional provisions set forth in §399.30(d) and RPS Regulations Section 3206; and D. Additional provisions. Where appropriate, this RPS Procurement Plan includes section citations to the Public Utilities Code (PUC) and the CEC’s RPS Regulations. A. PURPOSE (PUC § 399.30(a)) In order to fulfill unmet long-term generation resource needs, the CPA Council adopts and implements this RPS Procurement Plan that requires the utility to procure a minimum quantity of electricity products from eligible renewable energy resources, including renewable energy credits, as a specified percentage of CPAU’s total kilowatt hours sold to its retail end-use customers, during each compliance period, to achieve the targets specified in SBX1 2 and the RPS Regulations. 1 SB 2 1X (2011 1) was signed by California’s Governor on April 12, 2011, and made significant revisions to Public Utilities Code sections 399.11-399.32, the California Renewable Portfolio Standard Program. Various provisions of sections 399.11, et seq., were subsequently modified. 2 California Code of Regulations, Title 20, Division 2, Chapter 13, Sections 3200 ‐ 3208 and Title 20, Division 2, Chapter 2, Article 4, Section 1240. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 3 of 11 The CPA Council voluntarily adopted targets for CPAU that exceed those of SB X1 2 (Resolution 9152, Staff report No. 1317, March 2011). This RPS Procurement Plan establishes the framework for achieving the minimum requirements under SB X1 2 and the RPS Regulations, and does not include or preclude actions taken by CPAU to achieve the CPA Council’s goals. B. PLAN ELEMENTS CPAU will comply with the requirements for renewables procurement targets set forth in SBX1- 2 and the applicable enforcement procedures codified in the CEC’s RPS Regulations, including implementation of the following Plan Elements: 1. Compliance Period Definitions CPAU has adopted the relevant compliance period definitions identified in PUC § 399.30(b). 2. Compliance Period Definitions CPAU shall meet or exceed the following procurement targets of renewable energy resources for each compliance period per PUC §§ 399.30(c)(1) and (2) and the CEC’s RPS Regulations: Compliance Period 1 Target ≥ 20% × (CPAU Retail Sales2011_+ CPAU Retail Sales2012 + CPAU Retail Sales2013). Compliance Period 2* Target ≥ 20% × CPAU Retail Sales2014 + 20% × CPAU Retail Sales2015 + 25% × CPAU Retail Sales2016 Compliance Period 3* Target ≥ 27% × CPAU Retail Sales2017 + 29% × CPAU Retail Sales2018 + 31% × CPAU Retail Sales2019 + 33% × CPAU Retail Sales2020 Annually thereafter, CPAU shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail kilowatt hours sales * The annual procurement targets in Compliance periods 2 and 3 are soft targets. That is, by the end of each procurement period, CPAU’s RPS total for the period has to equal the sum of the annual targets, but the targets do not have to be achieved in any one year. 3. Portfolio Content Categories (PCC) CPAU adopts the definitions for qualifying electric products and Portfolio Content Categories (PCC) per Sections 3202 and 3203 of the CEC’s RPS Regulations. a. How CPAU Plans to Achieve its RPS Requirements per Section 3205(a)(1) of the CEC’s RPS Regulations CPAU’s RPS portfolio will include grandfathered contracts (commonly referred to as “PCC 0”), which are executed prior to June 1, 2010, and PCC 1 eligible resources, which are typically directly or dynamically connected to a California balancing authority. CPAU’s RPS portfolio may also include PCC 2 PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 4 of 11 eligible resources that are scheduled into a California balancing authority, and PCC 3 eligible resources, which are typically unbundled renewable energy credits (RECs). CPAU shall determine the category to which each procured resource belongs. The grandfathered or PCC 0 resources are those electricity products defined in Section 3202(a)(2) of the CEC’s RPS Regulations that are procured pursuant to a contract or ownership agreement executed before June 1, 2010, and that count in full towards CPAU’s RPS procurement requirements. PCC 1, 2, and 3 resources are defined in Section 3203 of the CEC’s RPS Regulations. In its 2011 and 2012 RPS Compliance Report, CPAU listed a number of PCC 0 contracts. All of these contracts extend through the end of Compliance Period 3. All but one of the PCC 0 resources have achieved commercial operation, and the remaining resource is currently under construction and is expected to achieve commercial operation early 2014. CPAU anticipates being able to meet its RPS targets through Compliance Period 2 with its PCC 0 contracts. CPAU has currently executed four contracts for PCC 1 resources. The first, executed in 2012, has not yet commenced construction, but the contract specifies that the project must commence operation in 2014. The three others, executed in 2013, are contracted to commence operation in 2016. With these four PCC 1 resources, CPAU forecasts that its renewable energy supplies will be well in excess of Compliance Period 3 requirements. In addition, CPAU issued an RFP in the fall of 2013 for renewable power for terms ranging from 5 to 30 years from any resource that meets the CEC’s RPS eligibility criteria (with a strong preference for proposals that would qualify as PCC 1). 4. Portfolio Balancing Requirements Should any of CPAU’s existing contracts fail to achieve operation, such that additional resources must be acquired to meet the requirements contained in the CEC’s RPS Regulations, then CPAU shall meet the portfolio balancing requirements specifying the limits on quantities for PCC 1 and PCC 3 per PUC § 399.30(c)(3), §§ 399.16(c)(1) and (2). CPAU shall apply the formulae specified in Section 3204(c) of the CEC’s RPS Regulations to determine these portfolio balance requirements. 5. Reasonable Progress CPAU shall demonstrate that it is making reasonable progress towards ensuring that it shall meet its compliance period targets during intervening years per PUC §§ 399.30(c)(1) and (2). PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 5 of 11 C. OPTIONAL COMPLIANCE MEASURES As permitted by Section 3206(a) of the CEC’s RPS Regulations, CPA Council hereby adopts rules permitting the use of each the following five optional compliance measures included in the CEC’s RPS Regulations: Excess Procurement, Delay of Timely Compliance, Cost Limitations, Portfolio Balance Requirement Reduction, and Historic Carryover. 1. Excess Procurement (PUC § 399.30(d)(1), §399.13(a)(4)(B)) a. Adoption of Excess Procurement Rules The CPA Council has elected to adopt rules permitting CPAU to apply excess procurement in one compliance period to a subsequent compliance period, as described in Section 3206(a)(1) of the CEC’s RPS Regulations. b. Limitations of CPAU’s’ Use of Excess Procurement CPAU shall be allowed to apply Excess Procurement from one compliance period to subsequent compliance periods as long as the following conditions are met: 1. CPAU may accumulate, beginning on January 1, 2011, Excess Procurement from one Compliance Period to be applied in any subsequent Compliance Period, including compliance years following 2020 2. In calculating the quantity of Excess Procurement, CPAU shall deduct from actual procurement quantities, the total amount of procurement associated with contracts of less than ten (10) years in duration. 3. Eligible resources must be from Content Category 1 or Content Category 2 or Grandfathered Resources to be Excess Procurement. Resources from Content Category 3 will not count towards Excess Procurement. c. Excess Procurement Calculation CPAU shall calculate its Excess Procurement according to formulae in section 3206 (a)(1) D. of the CEC’s RPS Regulations. d. Council Review CPAU’s use of the Excess Procurement to apply towards CPAU’s RPS procurement target in any compliance period will be reviewed by CPA Council during its annual review as per section D.3. of this RPS Procurement Plan. 2. Delay of Timely Compliance (§ 399.30(d)(2), § 399.15(b)(5)) a. Adoption of Delay of Timely Compliance Rules The CPA Council has elected to adopt rules permitting CPAU’s Council to make a finding that conditions beyond CPAU’s control exist to delay timely compliance with RPS procurement requirements, as described in Section 3206(a)(2) of the CEC’s RPS Regulations. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 6 of 11 b. Delay of Timely Compliance Findings The CPA Council may make a finding, based on sufficient evidence presented by CPAU staff, and as described in this Section 3, that is limited to one or more of the following causes of delay, and shall demonstrate that CPAU would have met its RPS procurement requirements but for the cause of the delay: (1) Inadequate Transmission i. There is inadequate transmission capacity to allow for sufficient electricity to be delivered from CPAU’s proposed eligible renewable energy resource projects using the current operational protocols of the California Independent System Operator (CAISO) Balancing Authority Area. ii. If the CPA Council’s delay finding rests on circumstances related to CPAU’s transmission resources or transmission rights, the CPA Council may find that : a.) CPAU has undertaken, in a timely fashion, reasonable measures under its control and consistent with its obligations under local, state, and federal laws and regulations, to develop and construct new transmission lines or upgrades to existing lines intended to transmit electricity generated by eligible renewable energy resources, in light of its expectation for cost recovery. b.) CPAU has taken all reasonable operational measures to maximize cost-effective purchases of electricity from eligible renewable energy resources in advance of transmission availability. (2) Permitting, interconnection, or other factors that delayed procurement or insufficient supply. i. Permitting, interconnection, or other circumstances have delayed procured eligible renewable energy resource projects, or there is an insufficient supply of eligible renewable energy resources available to CPAU. ii. In making its findings relative to the existence of this condition, CPA Council’s deliberations shall include, but not be limited to the following: a) Whether CPAU prudently managed portfolio risks, including, but not limited to, holding solicitations for RPS-eligible resources with outreach to market participants and relying on a sufficient number of viable projects; b) Whether CPAU sought to develop its own eligible renewable energy resources, transmission to interconnect to PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 7 of 11 eligible renewable energy resources, or energy storage used to integrate eligible renewable energy resources. c) Whether CPAU procured an appropriate minimum margin of procurement above the minimum procurement level necessary to comply with the renewables portfolio standard to compensate for foreseeable delays or insufficient supply; d) Whether CPAU has taken reasonable measures, under its control to procure cost-effective distributed generation and allowable unbundled renewable energy credits; (3) Unanticipated curtailment to address needs of the balancing authority. c. Procedures Upon Approving Waiver: In the event of a Waiver of Timely Compliance due to any of the factors set forth above, CPAU shall implement the following procedures: (1) Establish additional reporting for intervening years to demonstrate that reasonable actions under the CPAU’s control are being taken (§399.15(b)(6)). (2) Require a demonstration that all reasonable actions within the CPAU’s control have been taken to ensure compliance in order to grant the waiver (§ 399.15(b)(7)). 3. Cost Limitations for Expenditures (PUC § 399.30(d)(3), § 399.15(c)) a. Cost Limitations for Expenditures The CPA Council has elected to adopt rules for cost limitations on the procurement expenditures used to comply with CPAU’s procurement requirements, as described in Section 3206(a)(3) of the CEC’s RPS Regulations. These cost limitation rules are intended to be consistent with PUC §399.15(c). b. Considerations in Development of Cost Limitation Rules In adopting cost limitation rules, the CPA Council has relied on the following: 1) This Procurement Plan; 2) Procurement expenditures that approximate the expected cost of building, owning, and operating eligible renewable energy resources; 3) The potential that some planned resource additions may be delayed or canceled; and 4) Local and regional economic conditions and the ability of CPAU’s customers to afford produced or procured energy products. These economic conditions may include but are not limited to unemployment, wages, cost of living expenses, the housing market, and cost burden of other utility rates on the same customers. The CPA Council may also PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 8 of 11 consider cost disparities between customer classes within Palo Alto, and between CPA customers and other POU and IOU customers in the region. c. Cost Limitations City of Palo Alto’s current RPS policy requires that CPAU pursue a target level of renewable purchases of 33% while “[e]nsuring that the retail rate impact for renewable purchases does not exceed 0.5 ¢/kWh on average”, i.e., the incremental cost of the renewable resource over and above the estimated cost of an equivalent volume and shape of alternative non-RPS resources shall not cause a retail rate impact in excess of 0.5 ¢/kWh on average. This limit was first established by the CPA Council in October 2002 based on public input, and the goal of balancing resource reliability and cost considerations in the consideration of investment in renewable and energy efficiency resources. d. Actions to be Taken if Costs Exceed Adopted Cost Limitation If costs are anticipated to exceed the cost limitations set by CPA Council, staff will present proposals to the City of Palo Alto’s Utilities Advisory Commission (UAC) to either reduce the RPS requirements or increase the cost limitation. Staff and UAC’s recommendations will then be taken to CPA Council for action. 4. Portfolio Balance Requirement Reduction a. Adoption of Portfolio Balance Requirement Reduction Rules The CPA Council has elected to adopt rules that allow for the reduction of the portfolio balance requirement for PCC 1 for a specific compliance period, consistent with PUC Section 399.16(e), as described in Section 3206(a)(4) of the CEC’s RPS Regulations. b. Portfolio Balance Requirement Reduction Rules CPAU may reduce the portfolio balance requirement for PCC1 for a specific compliance period, consistent with PUC §399.16 (e) and the following: 1. The need to reduce the portfolio balance requirements for PCC 1 must have resulted because of conditions beyond CPAU’s control, as provided in Section 3206(a)(2) of the CEC’s RPS Regulations. 2. CPAU may not reduce its portfolio balance requirement for PCC 1 below 65 percent for any compliance period after December 31, 2016. 3. Any reduction in portfolio balance requirements for PCC 1 must be adopted at a publicly noticed meeting, providing at least 10 calendar days’ notice to the CEC, and include an updated renewable energy resources procurement plan detailing the portfolio balance requirement changes. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 9 of 11 5. Historic Carryover a. Adoption of Historic Carryover Rules The CPA Council has elected to adopt rules to permit its use of Historic Carryover, as defined in Section 3206(a)(5) of the RPS Regulations, to meet its RPS procurement targets. Current calculations indicate that CPAU has Historic Carryover due to CPAU’s early investment in renewable energy resources. b. Historic Carryover Procurement Criteria CPAU’s use of Historic Carryover is subject to section 3206 (a)(5) of the CEC’s RPS Regulations, including the following: 1) Procurement generated before January 1, 2011 may be applied to CPAU’s RPS procurement target for the compliance period ending December 31, 2013, or for any subsequent compliance period; and 2) The procurement must also meet the criteria of Section 3202 (a)(2) of the CEC’s RPS Regulations; and 3) The procurement must be in excess of the sum of the 2004-2010 annual procurement targets defined in Section 3206(a)(5)(D) of the CEC’s RPS Regulations; and 4) The procurement cannot have been applied to the RPS of another state or to a voluntary claim. 5) The Historic Carryover must be procured pursuant to a contract or ownership agreement executed before June 1, 2010. 6) Both the Historic Carryover and the procurement applied to CPAU’s annual procurement targets must be from eligible renewable energy resources that were RPS-eligible under the rules in place for retail sellers at the time of execution of the contract or ownership agreement, except that the generation from such resources need not be tracked in the Western Renewable Energy Generation Information System. c. Historic Carryover Formula CPAU will calculate its Historic Carryover according to formulae in section 3206 (a)(5)C) and (D) of the CEC’s RPS Regulations. d. Historic Carryover Claims The number of RECs qualifying for Historic Carryover is dependent upon the acceptance by the CEC of CPAU’s applicable procurement claims for January 1, 2004 – December 31, 2010, which are due to the CEC within 90 calendar days after the effective date of the CEC’s RPS Regulations (October 30, 2013). The Historic Carryover submittal shall also include baseline calculations, annual procurement target calculations, and any other pertinent data. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 10 of 11 e. Council Review CPAU’s use of the Historic Carryover to apply towards CPAU’s RPS procurement target in any compliance period will be reviewed by CPA Council during its annual review as per section D.3. of this RPS Procurement Plan. D. ADDITIONAL PLAN COMPONENTS 1. Exclusive Control (PUC §399.30(k)): In all matters regarding compliance with the RPS Procurement Plan, CPAU shall retain exclusive control and discretion over the following: a. The mix of eligible renewable energy resources procured by CPAU and those additional generation resources procured by CPAU for purposes of ensuring resource adequacy and reliability. b. The reasonable costs incurred by CPAU for eligible renewable energy resources owned by it. 2. Reporting (PUC § 399.30(f), § 399.30(g), § 399.30(l)) a. Deliberations on Procurement Plan (§399.30(f)): (1) Public Notice: Annually, CPAU shall post notice of meetings if the CPA Council will deliberate in public regarding this RPS Procurement Plan. (2) Notice to the California Energy Commission (CEC): Contemporaneous with the posting of a notice for such a meeting, CPAU shall notify the CEC of the date, time and location of the meeting in order to enable the CEC to post the information on its Internet website. (3) Documents and Materials Related to Procurement Status and Plans: When CPAU provides information to the CPA Council related to its renewable energy resources procurement status and future plans, for the CPA Council’s consideration at a noticed public meeting, CPAU shall make that information available to the public and shall provide the CEC with an electronic copy of the documents for posting on the CEC’s Internet website. b. Compliance Reporting (Section 3207 of the CEC RPS Regulations) (1) CPAU shall submit an annual report to the CEC by October 31, 2013 for 2011 and 2012 data, and by July 1 for each year thereafter. The reports shall include the information specified in Section 3207(c) of the CEC RPS Regulations. PALO ALTO’S RPS PROCUREMENT PLAN Effective 1-12-13 Page 11 of 11 (2) By July 1, 2014; July 1, 2017; July 1, 2021; and by July 1 of each year thereafter, CPAU shall submit to the CEC a compliance report that addresses the annual reporting requirements of the previous section and information for the preceding compliance period as specified in Section 3207(d) of the CEC RPS Regulations. 3. Annual Review CPAU’s RPS Procurement Plan shall be reviewed annually by the CPA Council in accordance with CPAU’s “RPS Enforcement Program.” 4. Plan Modifications/Amendments This RPS Procurement Plan may be modified or amended by an affirmative vote of the CPA Council during a public meeting. Any CPA Council action to modify or amend the plan must be publicly noticed in accordance with Section D.2.a. Effective Date: This plan shall be effective on November 12, 2013. APPROVED AND ADOPTED this _________ day of __________________, 2013.   California Energy Commission  ADOPTED REGULATIONS  APPROVED BY THE OFFICE OF ADMINISTRATIVE LAW    ENFORCEMENT PROCEDURES FOR THE  RENEWABLES PORTFOLIO STANDARD  FOR LOCAL PUBLICLY OWNED  ELECTRIC UTILITIES  California Code of Regulations,  Title 20, Division 2, Chapter 13, Sections 3200 ‐ 3208 Title 20, Division 2, Chapter 2, Article 4, Section 1240        CALIFORNIA  ENERGY COMMISSION  Edmund G. Brown Jr., Governor    AUGUST 2013 CEC‐300‐2013‐002‐CMF      CALIFORNIA ENERGY COMMISSION  Robert B. Weisenmiller, Ph.D. Chair Commissioners Karen Douglas, J.D. Andrew McAllister David Hochschild Janea A. Scott Emily Chisholm Lorraine Gonzalez Angela Gould Primary Author(s) Kate Zocchetti Acting Office Manager Renewable Energy Office Suzanne Korosec Deputy Director Renewable Energy Division Robert P. Oglesby Executive Director   California Code of Regulations Title 20. Public Utilities and Energy Division 2. State Energy Resources Conservation and Development Commission Chapter 13. Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities (Sections 3200 through 3208) ____________________________________________________________________________ Chapter 13. Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities 0BSection 3200 – Scope The regulations in this chapter implement enforcement procedures for the Renewables Portfolio  Standard for local publicly owned electric utilities established in Article 16 (commencing with  section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code.     NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Section 399.30, Public Utilities Code.  1BSection 3201 – Definitions The following definitions apply to this chapter:  (a) “Annual procurement target” means the amount of procurement that a POU must meet for  a particular year for the purposes of calculating historic carryover.  (b) “Balancing authority” means a balancing authority as defined in Public Utilities Code  section 399.12 (b).    (c) “Balancing authority area” means a balancing authority area as defined in Public Utilities  Code section 399.12 (c).  (d) “Baseline” means the initial RPS procurement of a POU that will form the basis of that  POU’s annual procurement targets.  (e) “Bundled” means an electricity product that, when procured by the POU claiming the  electricity product to satisfy its RPS procurement requirements, includes both the electricity  and the associated renewable energy credits from an eligible renewable energy resource.  (f) “California balancing authority” means a balancing authority primarily located in  California with more than 50 percent of its end‐use electric load physically located within  the political boundaries of California. This includes balancing authority areas operated by  the California Independent System Operator Corporation, Los Angeles Department of  Water and Power, Balancing Authority of Northern California, Imperial Irrigation District,  and Turlock Irrigation District.  (g) “Commission” means the State Energy Resources Conservation and Development  Commission, commonly known as the California Energy Commission.  1  (h) “Compliance period” means the compliance period as defined in Public Utilities Code  section 399.30 (c).   (i) “Compliance report” means the report that each POU files with the Commission by July 1 of  the calendar year following the end of a compliance period as specified in section 3207.  (j) “Electricity product” means either:  (1) Electricity and the associated renewable energy credit generated by an eligible  renewable energy resource.  (2)   An unbundled renewable energy credit.  (k) “Eligible renewable energy resource” means an electrical generating facility that the  Commission has determined meets the definition of a ʺrenewable electrical generation  facilityʺ in section 399.12 (e) of the Public Utilities Code, including a facility satisfying the  criteria of section 399.12.5 of the Public Utilities Code, and has certified as an RPS‐certified  facility.  (l) “Executive Director” means the Executive Director of the Commission, or his or her  designee.  (m) “Historic carryover” means a POU’s procurement that satisfies the following criteria: 1) the  procurement is for electricity and the associated renewable energy credit generated in 2004‐ 2010 by an eligible renewable energy resource that met the Commission’s RPS eligibility  requirements in effect when the original procurement contract or ownership agreement was  executed by the POU, 2) the original contract or ownership agreement was executed by the  POU prior to June 1, 2010, and 3) the procurement is in excess of the sum of the 2004 – 2010  annual procurement targets defined in section 3206 (a)(5)(D) and was not applied to the RPS  of another state or to a voluntary claim.   (n) “Megawatt‐hour” or “MWh” means a unit of energy equivalent to one megawatt of  electricity supplied for one hour.    (o) “NERC e‐Tag” means an electronic record that contains the details of a transaction to  transfer energy from a source point to a sink where the energy is scheduled for transmission  across one or more balancing authority area boundaries.  For purposes of this definition,  “source point” refers to the generation source of the energy, and “sink” refers to the  balancing authority in which the electric load is located.  (p) “Ownership agreement” includes:   (1) An agreement between a POU and a third party to acquire or develop an electrical  generation facility or    (2) If the POU built and owns the electrical generation facility and therefore has no such  agreement with a third party, the arrangement by which the POU built the facility, in  which case the date of the arrangement for the purposes of section 3202(a) is the  commercial operation date of the facility.   2  (q) “Portfolio balance requirement” refers to the portfolio content category minimum and  maximum requirements defined in Public Utilities Code section 399.16.  (r) “Portfolio content category” refers to one of three categories of electricity products procured  from an eligible renewable energy resource, as specified in section 3203.   (s) “POU” or “Local publicly owned electric utility” means a local publicly owned electric  utility as defined by Public Utilities Code section 224.3.  (t) “Procure” means to acquire electricity products from eligible renewable energy resources,  either directly from the eligible renewable energy resource or from a third party, through  executed contracts or ownership agreements.   (u) “Renewable electrical generation facility” means a facility as defined in Public Resources  Code section 25741(a).   (v) “Renewable energy credit” or “REC” means a certificate of proof, as defined in Public  Utilities Code section 399.12 (h), associated with the generation of electricity from an eligible  renewable energy resource.   (w) “Renewables Portfolio Standard” or “RPS” has the same meaning as defined in Public  Utilities Code section 399.12 (i).  (x) “RPS‐certified facility” means a facility that the Commission has certified as being eligible  for the RPS pursuant to the Commission’s RPS Guidelines, or that the Commission has  granted limited RPS certification in place for the duration of that facility’s contract or  ownership agreement term pursuant to the Commission’s RPS Guidelines.   (y) “RPS Guidelines” means the guidelines adopted by the Commission pursuant to Public  Resources Code section 25747 (a) to implement the RPS.    (z) ”RPS procurement requirements” refers to both the portfolio balance requirement and the  RPS procurement target with which a POU must comply.  (aa) ”RPS procurement target” means the specified percentage of retail sales that a POU must  procure of electricity products from eligible renewable energy resources for each  compliance period as defined in Public Utilities Code section 399.30 (c). For POUs that meet  the criteria listed in Public Utilities Code section 399.30 (j), the procurement target is the  annual specified percentage of the portion of electricity demand not met by the POU’s  qualifying hydroelectric generation, or the soft target for that year, whichever is less, that  must be procured from eligible renewable energy resources.  (bb) “Retail sales” means sales of electricity by a POU to end‐use customers and their tenants,  measured in MWh. This does not include energy consumption by a POU, electricity used by  a POU for water pumping, or electricity produced for onsite consumption (self‐generation).  (cc) “Retire” means to claim a renewable energy credit in the tracking system established by the  Commission pursuant to Public Utilities Code section 399.25 (c) and thereby commit the  renewable energy credit to be used for compliance with the RPS.    3  (dd) “Soft target” means an amount equivalent to the percentage of retail sales for a single year  within a compliance period that is used to calculate the RPS procurement target for that  compliance period. For example, the soft target for 2014 is equal to 20 percent of retail sales  for that year.  (ee) “Unbundled REC” means a REC from an eligible renewable energy resource that is not  procured as part of the same contract or ownership agreement with the underlying energy  from that eligible renewable energy resource; this includes RECs that were originally  procured as a bundled product but were subsequently resold separately from the  underlying energy.  (ff) “Western Electricity Coordinating Council” or “WECC” means the electricity coordinating  council as defined in Public Utilities Code section 399.12 (k).  WECC is part of the North  American Electric Reliability Corporation and the regional entity responsible for  coordinating and promoting bulk electric system reliability in the Western Interconnection  serving all or part of the 14 western states and portions of Mexico (in northern Baja  California) and Canada (in British Columbia and Alberta).  (gg) “Western Renewable Energy Generation Information System” or “WREGIS” refers to the  independent, renewable energy tracking system implemented for the region covered by the  Western Electricity Coordinating Council.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 25741 and 25747, Public Resources Code; and section  399.30, Public Utilities Code.  2BSection 3202 – Qualifying Electricity Products  (a) For an electricity product to be used for compliance toward the RPS procurement  requirements specified in section 3204, the electricity product must meet one of the  following requirements:  (1) The electricity product is procured pursuant to a contract or ownership agreement  executed on or after June 1, 2010.  (A) Procurement must be classified into a portfolio content category in accordance with  section 3203.  (B) Procurement will be included in the calculation of the portfolio balance requirements  as defined in section 3204 (c), unless the procurement is retired by a POU that meets  the criteria of section 3204 (a)(7), 3204 (a)(8), or 3204 (a)(9).  (2) The electricity product is procured pursuant to a contract or ownership agreement  executed before June 1, 2010, and the electricity product is associated with generation  from an eligible renewable energy resource that met the Commission’s RPS eligibility  requirements that were in effect when the original procurement contract or ownership  agreement was executed by the POU.  4  (A) Except as provided in paragraphs (B) and (C), the electricity product shall count in  full toward the RPS procurement requirements, subject to the following:  1. If the associated REC is retired within 36 months of the date the electricity  product is generated, the electricity product will count toward the RPS  procurement targets as defined in section 3204 (a).  2. The electricity product will not be classified within a portfolio content category  and will not count toward the requirements of section 3204 (c).  3.  Electricity products associated with contracts of less than 10 years will not be  subtracted when calculating excess procurement in accordance with section    3206 (a).  (B) If contract amendments or modifications after June 1, 2010, increase nameplate  capacity or expected quantities of annual generation, increase the term of the  contract except as provided in 3202 (a)(2)(C), or substitute a different eligible  renewable energy resource, only the MWhs or resources procured prior to  June 1, 2010, shall count in full toward the RPS procurement targets. The remaining  procurement must be classified into a portfolio content category and follow the  portfolio balance requirements in accordance with section 3204 (c).   (C) The term of such procurement contract may be extended if the initial term of the  contract specified a procurement commitment of 15 years or more.  (3) The electricity product is procured pursuant to a contract or ownership agreement  executed before June 1, 2010, but the eligible renewable energy resource did not meet the  Commission’s RPS eligibility requirements when the original procurement contract or  ownership agreement was executed by the POU.  (A) Procurement must be classified into a portfolio content category in accordance with  section 3203.  (B) Procurement will not be included in the calculation of portfolio balance  requirements in section 3204 (c).   (b)  If any electricity products procured pursuant to a contract or ownership agreement  executed prior to June 1, 2010, are resold on or after June 1, 2010, and the resale is not  explicitly included in the original contract or ownership agreement terms, the electricity  products must be classified in a portfolio content category and follow the portfolio balance  requirements of section 3204 (c), unless the procurement is retired by a POU that meets the  criteria of section 3204 (a)(7), section 3204 (a)(8) or 3204 (a)(9).   (c)  A POU may not use a REC associated with electricity products to meet its RPS procurement  requirements unless it is retired within 36 months from the initial month of the generation  of the associated electricity. For example, a POU can retire a REC associated with electricity  generated in February 2011 no later than February 28, 2014, to claim the REC toward the  POU’s RPS procurement requirements. RECs may not be retired for purposes of the RPS  5  procurement requirements of a compliance period if that compliance period begins after the  date of retirement.   (d) A POU may not use a REC to meet its RPS procurement requirements for a compliance  period that precedes the date of generation of the electricity associated with that REC. For  example, a POU may not retire a REC associated with electricity generated in April 2014 to  meet its RPS procurement requirements for the 2011‐2013 compliance period.  (e) A POU may not use a REC to meet its RPS procurement requirements for a compliance  period that precedes the date the POU procured that REC. For example, a POU may not  retire a REC associated with electricity generated in November 2013 that the POU procured  in February 2014 to meet its RPS procurement requirements for the 2011‐2013 compliance  period.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 399.13, 399.16, 399.21, and 399.30, Public Utilities  Code.  3BSection 3203 – Portfolio Content Categories  (a) Portfolio Content Category 1  (1) Portfolio Content Category 1 electricity products must be procured bundled to be  classified as Portfolio Content Category 1, and the POU may not resell the underlying  electricity from the electricity product back to the eligible renewable energy resource  from which the electricity product was procured. The electricity products must be  generated by an eligible renewable energy resource that is interconnected to a  transmission network within the WECC service territory. For purposes of this section  3203, the first point of interconnection to the WECC transmission grid is the substation  or other facility where generation tie lines from the eligible renewable energy resource  interconnect to the network transmission grid. Portfolio Content Category 1 electricity  products must also meet one of the following criteria:  (A) Electricity products must be generated by an eligible renewable energy resource that  has its first point of interconnection within the metered boundaries of a California  balancing authority area.      (B) Electricity products must be generated by an eligible renewable energy resource that  has its first point of interconnection to an electricity distribution system used to serve  end users within the metered boundaries of a California balancing authority area.   For purposes of this section 3203, the first point of interconnection to an electricity  distribution system is within the service area boundaries of a utility distribution  company.   (C) Electricity products from the eligible renewable energy resource with a first point of  interconnection outside the metered boundaries of a California balancing authority  must be scheduled into a California balancing authority without substituting  6  electricity from another source.  For purposes of this section 3203, electricity  generated by the eligible renewable energy resource must be scheduled into a  California balancing authority on an hourly or subhourly basis, and the POU’s  governing board or other authority, as delegated by the POU governing board, must  have approved an agreement, before the electricity is generated, to schedule the  electricity from the eligible renewable energy resource into the California balancing  authority on an hourly or subhourly basis. If there is a difference between the  amount of electricity generated within an hour and the amount of electricity  scheduled into a California balancing authority within that same hour, only the  lesser of the two amounts shall be classified as Portfolio Content Category 1.  (D) Electricity products must be subject to an agreement between a California balancing  authority and the balancing authority in which the eligible renewable energy  resource is located, executed before the product is generated, to dynamically transfer  electricity from the eligible renewable energy resource into the California balancing  authority area.  (2) Electricity products originally qualifying in Portfolio Content Category 1 and resold  must meet the following criteria to remain in Portfolio Content Category 1:  (A) The original contract for procurement of the electricity products meets one of the  criteria in section 3203 (a)(1)(A) – (D).  (B) The resale contract transfers only electricity and RECs that have not yet been  generated prior to the effective date of the resale contract.  (C) The electricity and associated RECs must be transferred by the resale contract to the  ultimate buyer, and the electricity must be transferred in real time.  (D) For those electricity products that satisfy section 3203 (a)(1)(C), the original hourly or  subhourly schedule is maintained, and the criteria of section 3203 (a)(2)(A) – (C) are  met.  (3) Electricity products originally qualifying in Portfolio Content Category 1 and resold that  do not meet the criteria of section 3203 (a)(2)(A) – (D) shall not be counted in Portfolio  Content Category 1.   (b)  Portfolio Content Category 2  (1) Portfolio Content Category 2 electricity products must be generated by an eligible  renewable energy resource that is interconnected to a transmission network within the  WECC service territory, and the electricity must be matched with incremental electricity  that is scheduled into a California balancing authority.  (2) Portfolio Content Category 2 electricity products must be procured bundled and must  meet all of the following criteria:   (A) The first point of interconnection to the WECC transmission grid for both the eligible  renewable energy resource and the resource providing the incremental electricity  7  must be located outside the metered boundaries of a California balancing authority  area.   (B) The incremental electricity used to match the electricity from the eligible renewable  energy resource must be incremental to the POU. For purposes of this section 3203,  “incremental electricity” means electricity that is generated by a resource located  outside the metered boundaries of a California balancing authority area and that is  not in the portfolio of the POU claiming the electricity products for RPS compliance  prior to the date the contract or ownership agreement for the electricity products  from the eligible renewable energy resource, with which the incremental electricity is  being matched, is executed by the POU or other authority, as delegated by the POU  governing board.  (C) The contract or ownership agreement for the incremental electricity is executed by  the governing board or other authority, as delegated by the POU governing board, at  the same time or after the contract or ownership agreement for the electricity  products from the eligible renewable energy resource is executed.  (D) The incremental electricity must be scheduled into the California balancing authority  within the same calendar year as the electricity from the eligible renewable energy  resource is generated.  (E) The electricity from the eligible renewable energy resource must be available to be  procured by the POU and may not be sold back to that resource.  (3) Electricity products originally qualifying in Portfolio Content Category 2 and resold  must meet the following criteria to remain in Portfolio Content Category 2:  (A) The original contract for procurement of the electricity products meets the criteria of  section 3203 (b)(2)(A) – (E).   (B) The resale contract transfers only electricity and RECs that have not yet been  generated prior to the effective date of the resale contract.  (C) The resale contract transfers the original arrangement for incremental electricity,  including the source and quantity for the incremental electricity.   (D) The resale contract retains the scheduling of the incremental electricity into the  California balancing authority as set out in the original transaction.  (E) The transaction provides incremental electricity for the POU claiming the transaction  for RPS compliance.  (F) The incremental electricity is scheduled into the California balancing authority.  (4) Electricity products originally qualifying in Portfolio Content Category 2 and resold that  do not meet the criteria above must be counted in Portfolio Content Category 3.   (c)  Portfolio Content Category 3  (1) All unbundled renewable energy credits and other electricity products procured from  eligible renewable energy resources located within the WECC transmission grid that do  8  not meet the requirements of either Portfolio Content Category 1 or Portfolio Content  Category 2 fall within Portfolio Content Category 3.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 399.16 and 399.30, Public Utilities Code.  4BSection 3204 – RPS Procurement Requirements (a) RPS procurement targets for each compliance period:  (1)  For the compliance period beginning January 1, 2011, and ending December 31, 2013, a  POU shall demonstrate it has procured electricity products sufficient to meet or exceed  an average of 20 percent of its retail sales over the three calendar years in the compliance  period.  The numerical expression of this requirement is:    (EP2011 + EP2012 + EP2013)  ≥ 0.20  (RS2011 + RS2012 + RS2013)    EPX = Electricity products retired for the specified year X; this may include excess procurement  and historic carryover that the POU has chosen to apply to the compliance period containing  year X    RSX = Total retail sales made by the POU for the specified year X     No POU may apply Portfolio Content Category 3 RECs in excess of the maximum limit  calculated in 3204 (c)(5) toward its RPS procurement target for this period.  (2)  For the compliance period beginning January 1, 2014, and ending December 31, 2016, a  POU shall demonstrate it has procured electricity products within that period sufficient  to meet or exceed the sum of 20 percent of its 2014 retail sales, 20 percent of its 2015  retail sales, and 25 percent of its 2016 retail sales.   The numerical expression of this  requirement is:    EP2014 + EP2015 + EP2016 ≥ 0.20(RS2014) + 0.20(RS2015) + 0.25(RS2016)     No POU may apply Portfolio Content Category 3 RECs in excess of the maximum limit  calculated in 3204 (c)(6) toward its RPS procurement target for this period.  (3)  For the compliance period beginning January 1, 2017, and ending December 31, 2020, a  POU shall demonstrate it has procured electricity products within that period sufficient  to meet or exceed the sum of 27 percent of its 2017 retail sales, 29 percent of its 2018  retail sales, 31 percent of its 2019 retail sales, and 33 percent of its 2020 retail sales. The  numerical expression of this requirement is:    9  (EP2017 + EP2018 + EP2019 + EP2020) ≥ 0.27(RS2017) + 0.29(RS2018) + 0.31(RS2019) + 0.33(RS2020)     No POU may apply Portfolio Content Category 3 RECs in excess of the maximum limit  calculated in 3204 (c)(7) toward its RPS procurement target for this period.  (4)  For the calendar year ending December 31, 2021, and each calendar year thereafter, a  POU shall procure electricity products sufficient to meet or exceed 33 percent of its retail  sales by the end of that year. No POU may apply Portfolio Content Category 3 RECs in  excess of the maximum limit calculated in 3204 (c)(8) toward its RPS procurement target  for the calendar year ending December 31, 2021, or for any calendar year thereafter.  (5)  For a POU that is a joint powers authority of districts established pursuant to state law  on or before January 1, 2005, that furnishes electric services other than to residential  customers, and is formed pursuant to the Irrigation District Law (Division 11  [commencing with section 20500] of the Water Code), the percentage of total retail sales,  upon which the RPS procurement targets in section 3204 (a)(1)‐(4) are calculated, shall be  based on that POU’s average annual retail sales over the seven years preceding the end  of each year within that compliance period. (For example, for the compliance period  ending December 31, 2013, the retail sales for 2011 shall equal the average annual retail  sales for January 1, 2005 – December 31, 2011, the retail sales for 2012 shall equal the  average annual retail sales for January 1, 2006 – December 31, 2012, and the retail sales  for 2013 shall equal the average annual retail sales for January 1, 2007 – December 31,  2013.) If the POU has not furnished electric service for the seven years preceding the end  of a compliance period, then the calculation shall be based on average annual retail sales  over the number of completed years during which the authority has provided electric  service.  (6) Notwithstanding section 3204 (a)(1) – (4) or section 3204 (c)(1)‐(9), a POU that meets the  criteria listed in Public Utilities Code section 399.30 (g) shall be deemed to be in  compliance with this section.    (A) A POU shall demonstrate that it meets the criteria listed in section 399.30 (g) by  providing the Commission documentation showing the POU receives all of its  electricity pursuant to a preference right adopted and authorized by the United  States Congress pursuant to section 4 of the Trinity River Division Act of August  12, 1955 (Public Law 84‐386). The documentation shall include a copy of any  written notice filed with the United States Secretary of the Interior or the Western  Area Power Administration declaring the POU’s intent to exercise its preference  rights under the Trinity River Diversion Act and any integrated resource plan filed  with the Western Area Power Administration confirming the POU’s election to  receive all of its electricity pursuant to its preference rights, and any updates or  amendments to those written notices and integrated resource plans. The POU shall  initially submit documentation to the Commission within 30 calendar days of the  effective date of these regulations. Thereafter, the POU shall submit to the  Commission a copy of any new or updated written notices or integrated resource  plans filed with the United States Secretary of the Interior or the Western Area  10  Power Administration. Copies of such notices and plans shall be submitted to the  Commission within 30 calendar days of the date the notices and plans are filed  with the United States Secretary of the Interior or the Western Area Power  Administration. The Commission may request additional documentation if  necessary to determine whether the POU meets the criteria listed in Public Utilities  Code section 399.30 (g).  (7)  Notwithstanding section 3204 (a)(1) – (4) or section 3204 (c)(1)‐(9), a POU that meets the  criteria listed in Public Utilities Code section 399.30 (j) shall be deemed to be in  compliance with this section 3204 for a given calendar year if all of the POU’s electricity  demand in that calendar year is satisfied with its qualifying hydroelectric generation or  if the POU meets the requirements of paragraph (D).    (A) For purposes of this section 3204 (a)(7), “qualifying hydroelectric generation” is  generation from a facility that meets the following criteria:  1.  The facility is located within the state.  2.  The facility is owned and operated by the POU.  3. The facility is a hydroelectric facility but does not meet the definition of a  renewable electrical generation facility and is not RPS‐certified based on the  definition of a renewable electrical generation facility.  (B) For purposes of this section 3204 (a)(7), “electricity demand” means consumption of  electricity by all end‐use customers and their tenants, including but not limited to  the POU itself, measured in MWh.  (C) A POU shall demonstrate that it meets the criteria listed in Public Utilities Code  section 399.30 (j) by providing the Commission documentation showing the POU  received at least an average of 67 percent of its electricity demand in the seven years  preceding each compliance period from qualifying hydroelectric generation.  The  POU shall initially submit documentation for the seven years immediately preceding  January 1, 2011, within 30 calendar days of the effective date of these regulations.  New documentation shall be submitted within 90 calendar days of the end of each  compliance period.  (D) If a POU meeting the criteria listed in Public Utilities Code section 399.30 (j) has  electricity demand unsatisfied by its qualifying hydroelectric generation in any given  year, the POU shall procure electricity products equal to the lesser of the following:   1. The portion of the POU’s electricity demand unsatisfied by the POU’s qualifying  hydroelectric generation.  2. The soft target listed in section 3204 (a)(1) – (4) corresponding to the year during  which the POU’s qualifying hydroelectric generation was insufficient to meet its  annual electricity demand.   (8) A POU that meets the criteria of Public Utilities Code section 399.30 (h) shall not be  subject to the requirements in section 3204 (c)(1)‐(9). A POU shall demonstrate that it  11  meets the criteria listed in Public Utilities Code section 399.30 (h) by providing the  Commission documentation showing the POU was in existence on or before January 1,  2009, that it provides retail electric service to 15,000 or fewer customer accounts in  California, and that it is interconnected to a balancing authority primarily located  outside California but within the WECC.  (9) A POU that meets the criteria of Public Utilities Code section 399.18 shall not be subject  to the requirements in section 3204 (c)(1)‐(9). A POU shall demonstrate that it meets  these criteria by providing the Commission documentation showing that the POU is a  successor to an electrical corporation that had 1,000 or fewer customer accounts in  California as of January 1, 2010, and was not interconnected to any transmission system  or to the Independent System Operator as of January 1, 2010.  (b)  RPS procurement requirements deficits incurred by a POU in any compliance period shall  not be added to the RPS procurement requirements of the POU in a future compliance  period.  (c)  In meeting the RPS procurement targets as defined in section 3204 (a), each POU shall also  be subject to the following portfolio balance requirements:  (1)  For the compliance period beginning January 1, 2011, and ending December 31, 2013,  not less than 50 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 1 specified in section 3203 (a).    The numerical expression of this requirement is:    PCC12011‐2013 ≥ 0.50 × (POST2011‐2013)    PCC1X = Electricity products retired and applied to the RPS procurement target for compliance  period X that must meet the criteria of section 3202 (a)(1) and the definition of Portfolio  Content Category 1 specified in section 3203 (a)    POSTX = Portion of electricity products procured pursuant to a contract or ownership agreement  executed on or after June 1, 2010, that is retired and applied  toward the RPS procurement  target for compliance period X    (2) For the compliance period beginning January 1, 2014, and ending December 31, 2016, not  less than 65 percent of electricity products that meet the criteria of section 3202 (a)(1) and  credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 1 specified in section 3203 (a).    The numerical expression of this requirement is:    PCC12014‐2016 ≥ 0.65 × (POST2014‐2016)    12  (3)  For the compliance period beginning January 1, 2017, and ending December 31, 2020,  not less than 75 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 1 specified in section 3203 (a).     The numerical expression of this requirement is:    PCC12017‐2020 ≥ 0.75 × (POST2017‐2020)    (4) For the calendar year ending December 31, 2021, and each calendar year thereafter, not  less than 75 percent of electricity products that meet the criteria of section 3202 (a)(1) and  credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 1 specified in section 3203 (a).    The numerical expression of this requirement is:    PCC1Y ≥ 0.75 × (POSTY)    PCC1Y = Electricity products retired and applied toward the RPS procurement target for  compliance year Y that must meet the criteria of section 3202 (a)(1) and the definition of  Portfolio Content Category 1 specified in section 3203 (a)    POSTY = Portion of electricity products procured pursuant to a contract or ownership agreement  executed on or after June 1, 2010, that is retired and applied toward the RPS procurement  target for compliance year Y    (5)  For the compliance period beginning January 1, 2011, and ending December 31, 2013, no  more than 25 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 3 specified in section 3203 (c).    The numerical expression of this requirement is:    PCC32011‐2013 ≤ 0.25 × (POST2011‐2013)    PCC3X = Electricity products retired and applied toward the RPS procurement target for  compliance period X that must meet the criteria of section 3202 (a)(1) and the definition of  Portfolio Content Category 3 specified in section 3203 (c)    (6)  For the compliance period beginning January 1, 2014, and ending December 31, 2016, no  more than 15 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 3 specified in section 3203 (c).  13    The numerical expression of this requirement is:    PCC32014‐2016 ≤ 0.15 × (POST2014‐2016)    (7)  For the compliance period beginning January 1, 2017, and ending December 31, 2020, no  more than 10 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 3 specified in section 3203 (c).    The numerical expression of this requirement is:    PCC32017‐2020 ≤ 0.10 × (POST2017‐2020)    (8)  For the calendar year ending December 31, 2021, and each calendar year thereafter, no  more than 10 percent of electricity products that meet the criteria of section 3202 (a)(1)  and credited toward the RPS procurement target shall meet the definition of Portfolio  Content Category 3 specified in section 3203 (c).    The numerical expression of this requirement is:    PCC3Y ≤ 0.10 × (POSTY)    PCC3Y = Electricity products retired and applied toward the RPS procurement target for  compliance year Y that must meet the criteria of section 3202 (a)(1) and the definition of  Portfolio Content Category 3 specified in section 3203 (c)    (9) Except as otherwise required by section 3204 (c), electricity products meeting the  definition of Portfolio Content Category 2 specified in section 3203 (b) may be used to  meet RPS procurement requirements.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 399.13, 399.16 and 399.30, Public Utilities Code.  5BSection 3205 – Procurement Plans and Enforcement Programs  (a) Renewable Energy Resources Procurement Plan  (1)  Within 60 calendar days of the effective date of these regulations, each POU shall adopt  a renewable energy resources procurement plan detailing how the POU will achieve its  RPS procurement requirements for each compliance period. The renewable energy  resources procurement plan, and any revisions or updates to the plan, shall be  submitted to the Commission within 30 calendar days of adoption. A POU that has  previously adopted a renewable resources procurement plan before the effective date of  14  these regulations does not need to adopt a new renewable energy resources  procurement plan and submit the plan to the Commission if no changes are made to the  plan after the effective date of these regulations.  (2) A POU that meets the criteria listed in Public Utilities Code section 399.30 (j) shall adopt  a renewable energy resources procurement plan detailing how the POU will achieve its  RPS targets annually. The renewable energy resources procurement plan shall  additionally provide a forecast of the qualifying hydroelectric generation expected to  meet the POU’s forecasted annual electricity demand. The renewable energy resources  procurement plan, and any revisions or updates to the plan, shall be submitted to the  Commission within 30 calendar days of adoption.  (3) Each POU shall provide the following notice regarding new or updated renewable  energy resources procurement plans:   (A) The POU shall post notice, in accordance with Chapter 9 (commencing with section  54950) of Part 1 of Division 2 of Title 5 of the Government Code, whenever its  governing board will deliberate in public on its renewable energy resources  procurement plan.   (B) Contemporaneous with the posting of the notice of a public meeting to consider the  renewable energy resources procurement plan, the POU shall notify the Commission  of the date, time, and location of the public meeting to consider the procurement  plan. This requirement is satisfied if the POU provides the Commission with the  uniform resource locator (URL) that directly links to the notice for the public  meeting. Alternatively, an e‐mail with information on the public meeting in Portable  Document Format (PDF) may also be provided to the Commission.   (C) The POU must notify the Commission if any URL provided by the POU pursuant to  this section 3205 no longer contains the correct link, and the POU must send the  Commission a corrected URL that links to the information or a PDF containing the  information as soon as it becomes available.  (b) Enforcement Program  (1) As of January 1, 2012, each POU shall have adopted an enforcement program detailing  actions the POU will take if the POU determines that it will not meet its RPS  procurement requirements in accordance with section 3204. The enforcement program,  and any revisions or updates to the program, shall be submitted to the Commission  within 30 calendar days of adoption.  (2) Each POU shall provide notice regarding new or updated enforcement programs. The  enforcement program must be adopted at a publicly noticed meeting offering all  interested parties an opportunity to comment.   (A) No less than 30 calendar days notice shall be given to the public of any meeting  held for purposes of adopting the enforcement program.  15  (B) If the enforcement program is modified or amended, no less than 10 calendar days  notice shall be given to the public before any meeting is held to make a  substantive change to the enforcement program.   (3) Contemporaneous with the posting of the notice of a public meeting to consider the  enforcement program, the POU shall notify the Commission of the date, time, and  location of the public meeting to consider the enforcement program. This requirement is  satisfied if the POU provides the Commission with the URL that directly links to the  notice for the public meeting. Alternatively, an e‐mail with information on the public  meeting in PDF may also be provided to the Commission.   (4) The POU must notify the Commission if any URL provided by the POU pursuant to this  section 3205 no longer contains the correct link, and the POU must send the Commission  a corrected URL that links to the information or a PDF containing the information as  soon as it becomes available.  (c) If a POU distributes information to its governing board related to its renewable energy  resources procurement status or future procurement plans or enforcement programs, for the  governing board’s consideration at a public meeting, the POU shall make all that  information available to the public at the same time it is distributed to its governing board  and shall provide an electronic copy of that information to the Commission for posting on  the Commission’s website.    (1) This requirement is satisfied if the POU provides to the Commission the URL that  directly links to the documents or information regarding other manners of access to the  documents. Alternatively, an e‐mail with the information in PDF may also be provided  to the Commission.    (2) The POU must notify the Commission if any URL provided by the POU pursuant to this  section 3205 no longer contains the correct link, and the POU must send the Commission  a corrected URL that links to the information or a PDF containing the information as  soon as it becomes available.  (d) Notwithstanding section 3205 (a) – (c), a POU that meets the criteria listed in Public Utilities  Code section 399.30 (g) is not required to provide the Commission with a renewable energy  resources procurement plan, enforcement program, or public notice or information  concerning any such procurement plans or enforcement programs.   NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 399.30, Public Utilities Code.  6BSection 3206 – Optional Compliance Measures (a) In meeting its RPS procurement requirements, the governing board of a POU may adopt at  a noticed public meeting any of the following measures:  (1) Excess procurement  16  (A) A POU may adopt rules permitting the POU to apply excess procurement in one  compliance period to a subsequent compliance period, as specified in paragraphs   (B) – (D) and subject to the following limitations:   1. Electricity products that meet the criteria of section 3202 (a)(1) or section 3202  (a)(3), and are classified in Portfolio Content Category 3 may not be counted  as excess procurement.   2. Electricity products that meet the criteria of section 3202 (a)(1) and that  exceed the maximum limit for Portfolio Content Category 3, as specified in  section 3204 (c), must be subtracted from the calculation of excess  procurement.  3.  Electricity products procured under contracts of less than 10 years in  duration shall be subtracted from the calculation of excess procurement,  unless the electricity product meets the criteria in section 3202 (a)(2).  (B) A POU that opts to allow the application of excess procurement as part of its  renewable energy resources procurement plan or enforcement program may begin  accruing excess procurement no earlier than January 1, 2011.   (C) Electricity products qualifying as excess procurement may be applied toward any  future compliance periods, including compliance years following 2020.   (D) Excess procurement shall be calculated as follows:  1. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2013, is:    Excess Procurement = (EP2011-2013) – (RPS2011-2013 + S32011-2013 + STC2011-2013)   EPX = Electricity products retired and applied toward the RPS procurement target  for the compliance period X    RPSX = The RPS procurement target calculated in section 3204 (a) for compliance  period X    S3X = Retired PCC 3 RECs that meet the criteria of section 3202 (a)(1)   in excess of the maximum calculated in section 3204 (c) for compliance period X    STCX = All electricity products that meet the criteria of section 3202 (a)(1) or section  3202 (a)(3), are associated with contracts less than 10 years in duration, and are  retired and applied toward the RPS procurement target for compliance period X    2. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2016, is:    17  Excess Procurement = (EP2014-2016) – (RPS2014-2016 + S32014-2016 + STC2014-2016)   3. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2020, is:    Excess Procurement = (EP2017-2020) – (RPS2017-2020 + S32017-2020 + STC2017-2020)   4. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2021, and each annual compliance  period thereafter is:    Excess Procurement = (EPY) – (RPSY+ S3Y + STCY)   EPY =Electricity products retired and applied toward the RPS procurement target for  the compliance year Y    RPSY = The RPS procurement target calculated in section 3204 (a) for compliance  year Y    S3Y = Retired PCC 3 RECs that meet the criteria of section 3202 (a)(1) in excess of  the maximum calculated in section 3204 (c) for compliance year Y    STCY = All electricity products that meet the criteria of section 3202 (a)(1) or section  3202 (a)(3), are associated with contracts less than 10 years in duration, and are  retired and applied toward the RPS procurement target for compliance year Y    (E) Notwithstanding section 3206 (a)(1)(A)‐(D), a POU that meets the criteria of section  3204 (a)(8) or section 3204 (a)(9) may adopt rules permitting the POU to apply excess  procurement in one compliance period to a subsequent compliance period, subject to  the following limitations.  1. Unbundled RECs that do not meet the criteria of section 3202 (a)(2) may not  be counted as excess procurement. Electricity products that exceed the  maximum limit for unbundled RECs specified in paragraph 5 must be  subtracted from the calculation of excess procurement.  2.  Electricity products procured under contracts of less than 10 years in  duration shall be subtracted from the calculation of excess procurement,  unless the electricity product meets the criteria in section 3202 (a)(2).  3. A POU that opts to allow the application of excess procurement as part of its  renewable energy resources procurement plan or enforcement program may  begin accruing excess procurement no earlier than January 1, 2011.  4. Electricity products qualifying as excess procurement may be applied toward  any future compliance periods, including compliance years following 2020.  18  5. Excess procurement shall be calculated as follows:  i. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2013, is:    E   xcess Procurement = (EP2011-2013) – (RPS2011-2013 + UR2011-2013 + STC2011-2013)  UR2011‐2013 = Unbundled RECs that do not meet the criteria of section 3202 (a)(2)  and are retired and applied toward the RPS procurement target for  compliance period ending December 31, 2013, that exceed an amount equal  to 25 percent of the electricity products that meet the criteria of section 3202  (a)(1) and are retired and applied toward the RPS procurement target.    ii. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2016, is:    Excess Procurement = (EP2014-2016) – (RPS2014-2016 + UR2014-2016 + STC2014-2016) UR2014‐2016 = Unbundled RECs that do not meet the criteria of section 3202 (a)(2)  and are retired and applied toward the RPS procurement target for  compliance period ending December 31, 2016, that exceed an amount equal  to 15 percent of the electricity products that meet the criteria of section 3202  (a)(1) and are retired and applied toward the RPS procurement target.    iii. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2020, is:    Excess Procurement = (EP2017-2020) – (RPS2017-2020 + UR2017-2020 + STC2017-2020)    UR2017‐2020 = Unbundled RECs that do not meet the criteria of section 3202 (a)(2)  and are retired and applied toward the RPS procurement target for  compliance period ending December 31, 2020, that exceed an amount equal  to 10 percent of the electricity products that meet the criteria of section 3202  (a)(1) and are retired and applied toward the RPS procurement target.    iv. The numerical expression of the excess procurement permitted for the  compliance period ending December 31, 2021, and each annual  compliance period thereafter is:    Excess Procurement = (EPY) – (RPSY + URY + STCY)   URY = Unbundled RECs that do not meet the criteria of section 3202 (a)(2) and  are retired and applied toward the RPS procurement target for compliance  19  year Y that exceed an amount equal to 10 percent of the electricity products  that meet the criteria of section 3202 (a)(1) and are retired and applied  toward the RPS procurement target.    (2) Delay of timely compliance  (A) A POU may adopt rules permitting the POU to make a finding that conditions  beyond the control of the POU exist to delay the timely compliance with RPS  procurement requirements, as defined in section 3204. Such a finding shall be limited  to one or more of the following causes for delay and shall demonstrate that the POU  would have met its RPS procurement requirements but for the cause of delay:  1. There is inadequate transmission capacity to allow sufficient electricity to be  delivered from eligible renewable energy resources, or proposed eligible  renewable energy resource projects, to the extent applicable, using the current  operational protocols of the balancing authority in which the POU operates. A  POU that owns transmission or has transmission rights may find that:  i. The POU has undertaken all reasonable measures under its control and  consistent with its obligations under local, state, and federal laws and  regulations to develop and construct new transmission lines or upgrades to  existing lines intended to transmit electricity generated by eligible renewable  energy resources, in light of its expectation for cost recovery.  ii. The POU has taken all reasonable operational measures to maximize cost‐ effective purchases of electricity from eligible renewable energy resources in  advance of transmission availability.  2. Permitting, interconnection, or other circumstances have delayed procured  eligible renewable energy resource projects, or there is an insufficient supply of  eligible renewable energy resources available to the POU. The POU must also  find that:  i. The POU prudently managed portfolio risks, including, but not limited  to, holding solicitations for RPS‐eligible resources with outreach to  market participants and relying on a sufficient number of viable projects  to achieve RPS procurement requirements.  ii. The POU sought to develop either its own eligible renewable energy  resources, transmission to interconnect to eligible renewable energy  resources, or energy storage used to integrate eligible renewable energy  resources.  iii. The POU procured an appropriate minimum margin of procurement  above the level necessary to comply with the RPS to compensate for  foreseeable delays or insufficient supply.  20  iv. The POU had taken reasonable measures to procure cost‐effective  distributed generation and allowable unbundled RECs.  3. Unanticipated curtailment of eligible renewable energy resources was necessary  to address the needs of a balancing authority.  (3) Cost limitations  (A) A POU may adopt rules for cost limitations on the procurement expenditures used  to comply with its RPS procurement requirements.   (B) Such cost limitation rules shall ensure that:  1. The limitation is set at a level that prevents disproportionate rate impacts.  2. The costs of all procurement credited toward achieving the RPS are counted  toward the limitation.  3. Procurement expenditures do not include any indirect expenses including,  without limitation, imbalance energy charges, sale of excess energy, decreased  generation from existing resources, transmission upgrades, or the costs  associated with relicensing any POU‐owned hydroelectric facilities.  (C) In adopting cost limitation rules, the POU shall rely on all of the following:  1. The most recent renewables energy resources procurement plan.  2. Procurement expenditures that approximate the expected cost of building,  owning, and operating eligible renewable energy resources.  3. The potential that some planned resource additions may be delayed or canceled.  (D) When applying procurement expenditures under an adopted cost limitation rule, the  POU shall apply only those types of procurement expenditures that are permitted  under the adopted cost limitation rule.  (E) Adopted cost limitation rules shall include planned actions to be taken in the event  the projected cost of meeting the RPS procurement requirements exceeds the cost  limitation.  (4) Portfolio balance requirement reduction  (A) A POU may adopt rules that allow for the reduction of the portfolio balance  requirement for Portfolio Content Category 1 for a specific compliance period  consistent with Public Utilities Code section 399.16 (e).  (B) The need to reduce the portfolio balance requirements for Portfolio Content  Category 1 must have resulted because of conditions beyond the control of the POU  as provided in section 3206 (a)(2).  (C) A reduction of the portfolio balance requirement for Portfolio Content Category 1  below 65 percent for any compliance period after December 31, 2016, will not be  considered consistent with Public Utilities Code section 399.16 (e).  21  (D) A POU that reduces its portfolio balance requirements for Portfolio Content  Category 1 must adopt these changes at a publicly noticed meeting, providing at  least 10 calendar days advance notice to the Commission, and must include this  information in an updated renewable energy resources procurement plan submitted  to the Commission. The notice to consider the portfolio balance requirement  reduction and the procurement plan must include the following information:  1. The compliance period for which the reduction may be adopted.  2. The level to which the POU has reduced the requirement.  3. The reason or reasons the POU has proposed for adopting the reduction.  4. An explanation of how the needed reduction resulted from conditions beyond  the control of the POU as provided in section 3206 (a)(2).  (5) Historic Carryover  (A) A POU may adopt rules that allow for procurement generated before  January 1, 2011, that meets the criteria of section 3202 (a)(2), that is in excess of the  sum of the 2004 – 2010 annual procurement targets defined in section 3206 (a)(5)(D)  and that was not applied to the RPS of another state or to a voluntary claim, to be  applied to the POU’s RPS procurement target for the compliance period ending  December 31, 2013, or for any subsequent compliance period.   (B) The historic carryover must be procured pursuant to a contract or ownership  agreement executed before June 1, 2010. Both the historic carryover and the  procurement applied to the POU’s annual procurement targets must be from eligible  renewable energy resources that were RPS‐eligible under the rules in place for retail  sellers at the time of execution of the contract or ownership agreement, except that  the generation from such resources need not be tracked in the Western Renewable  Energy Generation Information System. If the contract or ownership agreement is  executed prior to April 21, 2004, the procurement must be from resources that were  RPS‐eligible under the rules in the RPS Guidelines in place as of April 21, 2004.  (C) Historic carryover shall be calculated by subtracting procurement generated  between January 1, 2004, and December 31, 2010, in an amount that is equal to the  sum of the 2004 – 2010 annual procurement targets defined in section 3206 (a)(5)(D)  and the amount of procurement that was sold, claimed for a voluntary program, or  claimed for compliance with the RPS of another state, from the total procurement  generated during that same period. If a POU was not in existence as of  January 1, 2004, historic carryover shall be calculated based on procurement  generated between the first full calendar year during which the POU became  operational and December 31, 2010.  (D) The RPS compliance obligation used to calculate a POU’s historic carryover shall be  based on the following:  22  1. A baseline of an amount equal to 2001 procurement divided by 2001 total retail  sales, multiplied by 2003 total retail sales, plus 1 percent of 2001 total retail sales  (or, if the POU was not in existence in 2001, “2001” in this calculation shall be  replaced by the first full calendar year in which the POU was operational, and  “2003” in this calculation shall be replaced by the second full calendar year after  which the POU was operational). The numerical expression of the baseline is:    Baseline = (EP2001 ÷ RS2001) × RS2003 + (0.01 × RS2001)    EPX = Electricity products procured and retired and applied toward the RPS  procurement target for the specified year X    RSX = Total retail sales made by the POU for the specified year X    2. Annual procurement targets for 2004‐2010 that are equal to the lesser of 20  percent of the previous year’s retail sales or 1 percent of the previous year’s retail  sales greater than the annual procurement target for the previous year. The  POU’s annual procurement target for 2004 shall be equal to the lesser of 20  percent of 2003 retail sales or the baseline plus 1 percent of 2003 total retail sales,  and the annual procurement target for 2010 shall be an amount equal to 20  percent of 2010 total retail sales. For POUs that were not in existence in 2001,  “2003” in this calculation shall be replaced by the second full calendar year after  which the POU became operational, and “2004” in this calculation shall be  replaced by the third full calendar year after which the POU became operational.  (E)  A POU that adopts rules allowing for the use of historic carryover shall submit all  applicable procurement claims for January 1, 2004 – December 31, 2010 (or the date  on which the POU became operational through December 31, 2010), baseline  calculations, annual procurement target calculations, and any other pertinent  documentation to the Commission within 90 calendar days after the effective date of  these regulations. All applicable procurement claims must be retired and reported to  the Commission within 90 calendar days after the effective date of these regulations  to qualify as historic carryover.  (b) Rules adopted under this section 3206 shall be in place and described in a POU’s renewable  energy resources procurement plan or enforcement program for a given compliance period  if the POU intends to rely on these rules to satisfy or delay its RPS procurement  requirements. The Commission may, when hearing a complaint against a POU under  section 1240, consider the date of adoption of any rules adopted pursuant to this section that  the POU relied upon to satisfy or delay its RPS procurement requirements.  (c) Any rule or rule revision adopted under this section 3206 shall be submitted to the  Commission within 30 calendar days after adoption. The rule or rule revision shall be  submitted along with all reports, analyses, findings, and any other information upon which  the POU relied in adopting the rule or rule revision.  23  (d) A POU may request the Executive Director of the Commission to review any rule or rule  revision adopted under this section 3206 to determine its consistency with the requirements  of Public Utilities Code section 399.30.  The Executive Director shall make a determination,  to the extent reasonably possible, within 120 days of receipt of a complete request for  review.  A complete request for review shall include the rule or rule revision and all reports,  analyses, findings, and any other information upon which the POU relied in adopting the  rule or rule revision.  The Executive Director may request additional information from the  POU or solicit information from the public to make a determination.  Failure of the  Executive Director to make such determination within 120 days of receipt of the complete  request for review shall not be deemed a determination that such rule or rule revision is  consistent with the requirements of Public Utilities Code section 399.30.  (e) In determining a POU’s compliance with the RPS procurement requirements, the  Commission will not consider the application of any rule or rule revision adopted by a POU  under this section 3206 that the Commission determines does not comply with Public  Utilities Code section 399.30, these regulations, or any applicable order or decision adopted  by the Commission pertaining to the RPS.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Sections 399.13, 399.15, 399.16 and 399.30, Public Utilities  Code.  7BSection 3207 – Compliance Reporting for POUs (a) Each POU shall submit the following reports to the Commission as required by this section.   (b) Within 90 calendar days after the effective date of these regulations, any POU that has  adopted rules allowing for historic carryover, in accordance with section 3206 (a)(5), shall  submit documentation to the Commission including all applicable procurement claims by  RPS‐certified facility and generation month for January 1, 2004 – December 31, 2010 (or the  date on which the POU became operational through December 31, 2010), baseline  calculations used to determine the amount of historic carryover claimed, annual  procurement target calculations for 2004‐2010, and any other pertinent documentation  necessary.  (c) By September 1, 2013, or 30 calendar days after the effective date of these regulations,  whichever is later, and by July 1 of each year thereafter, each POU shall submit an annual  report to the Commission that includes the information in paragraphs (1) ‐ (4) below for the  prior calendar year. The report submitted in 2013 shall include information required by  paragraphs (1)‐(4) below for both the 2011 and 2012 calendar years. The format for the  annual report shall be specified by the Commission, but the information contained in the  annual report may be combined with other existing reports that contain the same  information and are also supplied to the Commission. If the annual report refers to  information provided to the Commission through existing reports, the annual report shall  24  reference the information by identifying the name, submittal date, and page number of the  existing report.  (1) POU identifying information, including:   (A) POU name, contact name, mailing address, phone number, and e‐mail address.  (B) Year the POU was established.  (C) Number of end‐use retail customer accounts in California.  (2) RPS annual progress information for the prior calendar year, including:   (A) Amount of total retail sales to end‐use customers, in MWh, and projected retail sales  for the current compliance period.  (B) Amount of procured electricity products retired, in MWh.  (C) WREGIS compliance report for procurement claims in the prior calendar year.  For  any procurement claims not tracked through WREGIS as permitted by the RPS  Guidelines, the POU shall report procurement claims using the interim tracking  system established by the Commission prior to the implementation of WREGIS.    (D) An initial, nonbinding classification of retired electricity products qualifying for each  portfolio content category or qualifying to count in full in accordance with section  3202 (a)(2).  (E) A description of each of the eligible renewable energy resources with which the POU  has executed contracts or ownership agreements during the prior year, including but  not limited to the contracted amount of MWh, the contracted amount of MWh as a  percentage of retail sales, resource fuel type, the execution date of the procurement  contract or ownership agreement, the duration of the procurement contract or  ownership agreement, a summary of the procurement contract or ownership  agreement, the operational status of the resource, the date the resource came on‐line,  the date the resource came on‐line using a renewable fuel or technology, if different,  the date on which procurement of electricity products begins, if different, RPS  certification status, the county, state, and country in which the resource is located,  and a summary of the resource names and identification numbers.  (F) Documentation demonstrating the portfolio content category classification claimed  for procured electricity products. This documentation may include interconnection  agreements, NERC e‐Tag data, scheduling agreements, firming and shaping  agreements, and electricity product contract information.  (G) An explanation of any public goods funds collected for eligible renewable energy  resource development, including a description of programs, expenditures, and  expected or actual results.  (H) A description of any identified issues that occurred that have the potential to delay  the POU’s timely compliance with the RPS procurement requirements defined in  section 3204, and planned actions to minimize the delay of timely compliance. Such  25  issues may include, but are not limited to, inadequate transmission to allow for  procurement to be delivered from eligible renewable energy resources, permitting,  interconnection, or other circumstances that have delayed the procurement from  eligible renewable energy resources, unanticipated curtailment of a contracted or  owned eligible renewable energy resource, and higher‐than‐expected costs for the  procurement or development of eligible renewable energy resources.   (I) An attestation, signed by an authorized agent of the POU, affirming that the  information provided in the report is true and correct.  (3) Actions taken by the POU demonstrating reasonable progress toward meeting its RPS  procurement requirements. The information reported shall include, but not be limited  to, a discussion of the following actions taken by the POU during the prior calendar  year:  (A) Solicitations released to solicit bid for contracts to procure electricity products from  eligible renewable energy resources to satisfy the POU’s RPS procurement  requirements.  (B) Solicitations released to solicit bid for ownership agreements for eligible renewable  energy resources to satisfy the POU’s RPS procurement requirements.  (C) Actions taken to develop eligible renewable energy resources to satisfy the POU’s  RPS procurement requirements, including initiating environmental studies,  completing environmental studies, acquiring interests in land for facility siting or  transmission, filing applications for facility or transmission siting permits, and  receiving approval for facility or transmission siting permits.  (D) Interconnection requests filed for eligible renewable energy resources to satisfy the  POU’s RPS procurement requirements.  (E) Interconnection agreements negotiated and executed for eligible renewable energy  resources to satisfy the POU’s RPS procurement requirements.  (F) Transmission‐related agreements negotiated and executed to transmit electricity  products procured from eligible renewable energy resources to satisfy the POU’s  RPS procurement requirements.  (G) Other planning activities to procure electricity products from eligible renewable  energy resources.  (4) In addition to the information specified in subparagraphs (c)(3)(A) – (G), the POU shall  include a description of all actions planned by the POU in the current calendar year to  demonstrate progress toward achieving the POU’s RPS procurement requirements.  The  description of actions planned shall include, but not be limited to, a discussion of  activities specified in subparagraphs (c)(3)(A) – (G).  (d) By July 1, 2014; July 1, 2017; July 1, 2021; and by July 1 of each year thereafter, each POU  shall submit to the Commission a compliance report that addresses the reporting  26  requirements of section 3207 (c) and the following information for the preceding compliance  period:   (1) Classification per RPS‐certified facility of the amount of procurement qualifying for each  portfolio content category and procurement that shall count in full in accordance with  section 3202 (a)(2).  (2) The POU’s RPS procurement target for the compliance period, in MWh.  (3) The amount of excess procurement, in MWh, from previous compliance periods, if any,  and historic carryover, if any, that the POU is applying to the compliance period.  (4) The amount of procurement retired, in MWh, that the POU wishes to claim toward the  RPS procurement target for calculating the portfolio balance requirements.  (5) The amount of excess procurement, in MWh, for the compliance period, if any, that may  be applied toward future compliance periods, as determined by applying the calculation  in section 3206 (a)(1)(D) or section 3206 (a)(1)(E), as applicable.  (6) If a POU’s compliance report indicates that the POU’s RPS procurement requirements  were not met, the POU shall provide documentation to justify the application of any  optional compliance measures adopted by the POU in accordance with section 3206. The  documentation shall include all reports, analyses, proposed findings, and any other  information upon which the POU relied in applying the measure. The POU shall also  submit an updated enforcement program and/or procurement plan that includes a  schedule identifying potential sources of electricity products currently available or  anticipated to be available in the future for meeting the POU’s shortfall.  (A) If a POU applies adopted cost limitation measures, the POU shall report that cost  limitation to the Commission in dollars spent during the compliance period. The  POU shall also provide the Commission with an estimate of the total cost for the  POU to procure sufficient electricity products to meet its RPS procurement  requirements for the preceding compliance period. The POU shall additionally  report on actions taken in response to RPS procurement expenditures meeting or  exceeding the cost limitation.  (e) Notwithstanding section 3207 (a) – (d), a POU that meets the criteria listed in Public Utilities  Code section 399.30 (g) shall submit to the Commission documentation as specified in  section 3204 (a)(6).   (f) In addition to the applicable reporting requirements in section 3207 (a) – (d), a POU that  meets the criteria listed in Public Utilities Code section 399.30 (j) shall annually submit to the  Commission, by the deadline for annual reports specified in section 3207 (c), documentation  demonstrating that the POU provides electric services to a local government that is both a  city and county of the state, that the POU receives greater than 67 percent of its electricity  sources to meet its electricity demands on an annual basis from qualified hydroelectric  facilities as defined in section 3204 (a)(7). The Commission may request additional  documentation if necessary to determine whether the POU meets the criteria listed in Public  27  Utilities Code section 399.30 (j). A POU that meets the criteria listed in Public Utilities Code  section 399.30 (j) must additionally submit its total electricity demand and documentation of  its annual qualifying hydroelectric generation, and provide evidence that any electricity  demands unsatisfied by its qualifying hydroelectric generation in any given year are met  with procurement from eligible renewable energy resources, including renewable energy  credits.  (g) Incorrect and incomplete reports.   (1)  If the Executive Director determines a report submitted by a POU pursuant to this  section is incorrect or incomplete, he or she shall issue a written notice to the POU  specifying what information is missing or needs to be corrected in the report.  If a POU  submits the missing or correct information to the Commission within ten (10) business  days of receipt of such notice, the POU’s initial failure to submit a complete and correct  report shall not be processed as a separate violation under these regulations.  Written  notices issued pursuant to this subdivision may include e‐mail or other written  communications.   (2)  A POU may request an extension of time to submit the missing or correct report  information specified in the written notice issued by the Executive Director.  Such a  request for an extension of time must be received by the Commission no later than the  date the missing or correct information is due to the Commission. The Executive  Director shall act on a request for an extension of time within five business days after it  is received by the Commission and may grant an extension of time of up to 30 calendar  days from the date the missing or correct report information is due under the written  notice if he or she finds that there is good cause for an extension. The POU’s initial  failure to submit a complete and correct report shall not be deemed a separate violation  under these regulations if the Commission receives the complete or correct report  information by the date specified in the extension. In determining whether good cause  exists for purposes of this subdivision, the Executive Director may consider, without  limitation, the following factors:   (A) Whether the POU was diligent in gathering the information necessary to submit a  complete and correct report to the Commission and preparing the report for  submission by the due date.  (B) Whether there were circumstances beyond the control of the POU that prevented the  POU from gathering and producing a complete and correct report to the  Commission by the due date.   (C) Whether the extension of time is likely to enable the POU to submit a complete and  correct report by the extended due date.   NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30  and 9508, Public Utilities Code.  Reference: Section 25747, Public Resources Code; and sections  399.13, 399.15, 399.16, 399.30, 9507 and 9508, Public Utilities Code.  28  8B Section 3208 – Enforcement (a) Any complaint against a POU pertaining to the enforcement of a RPS requirement, or any  regulation, order, or decision adopted by the Commission pertaining to the RPS, shall be  filed in accordance with Title 20, section 1240 of the California Code of Regulations.  (b) A complaint may be issued for a POU’s failure to comply with any of the requirements in  these regulations, including, but not limited to any of the following:   (1) Failure to meet an RPS procurement target as specified in subdivision (a) of section  3204 for reasons other than the POU’s adopted cost limitations and/or delay of timely  compliance rules which the Commission determines comport with the RPS  requirements as specified in subdivisions (a)(2) and (3) of section 3206  (2) Failure to meet a Portfolio Content Category 1 portfolio balance requirement as  specified in subdivision (c) of section 3204 for reasons other than the POU’s adopted  cost limitation and/or delay of timely compliance rules which the Commission  determines comport with the RPS requirements as specified in subdivisions (a)(2) and  (3) of section 3206  (3) Failure to adopt an RPS procurement plan, enforcement program or plan, or provide  notice, disclosure, or other information to the Commission and public as specified in  section 3205  (4) Failure to submit a complete annual, compliance, or other report, or other  documentation or information as specified by section 3207.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Section 399.30, Public Utilities Code.     29  California Code of Regulations Title 20. Public Utilities and Energy Division 2. State Energy Resources Conservation and Development Commission Chapter 2. Rules of Practice and Procedures Article 4.Complaints and Investigations (Section 1240) ____________________________________________________________________________ 9BSection 1240 – Renewables Portfolio Standard Enforcement (a) Notwithstanding anything in this article to the contrary, the following shall apply to any  complaint pertaining to a Renewables Portfolio Standard requirement, or any regulation,  order, or decision adopted by the Commission pertaining to the Renewables Portfolio  Standard, for local publicly owned electric utilities.  (b) Complaints  (1) No complaint for the failure of a local publicly owned electric utility to meet a  Renewables Portfolio Standard requirement, or any regulation, order, or decision  adopted by the Commission pertaining to the Renewables Portfolio Standard for local  publicly owned electric utilities, may be filed by any person or entity listed in section  1231, except Commission staff.  (2) A complaint for the failure of a local publicly owned electric utility to meet a  requirement of the Renewables Portfolio Standard, or any regulation, order, or decision  adopted by the Commission pertaining to the Renewables Portfolio Standard for local  publicly owned electric utilities, shall include, but not be limited to, the following:  (A)  A statement of facts upon which the complaint is based.  (B)  A statement indicating the statute, regulation, order, or decision upon which the  complaint is based.  (C)  The action the Commission is requested to take.  (D)  The authority for the Commission to take such action.  (3) A declaration under penalty of perjury shall not be required for the filing of a complaint  under this section 1240.  (c)  Any person or entity may participate in a proceeding filed under this section but shall not  be entitled to intervene or otherwise become a party to the proceeding. Participation  includes the ability to provide oral and written comments in the proceeding.  (d) Answer  (1)  The local publicly owned electric utility shall file an answer with the Chief Counsel  within 45 calendar days after service of the complaint.  In addition to those matters set  30  out in section 1233 (b), the answer shall include all data, reports, analyses, and any other  information deemed relevant by the local publicly owned electric utility to any claims,  allegations, or defenses made in the answer. The answer may also include information  deemed relevant by the local publicly owned electric utility to support findings of fact  regarding any mitigating factors related to any alleged violation.   (2)  In the event that the local publicly owned electric utility includes in the answer any  confidential business information, trade secrets, or other information sought to be  withheld from public disclosure, respondent shall submit such information in a separate  filing, under seal, at the time the local publicly owned electric utility files the answer.  The information shall be submitted to the Executive Director along with a complete  request for confidential designation in accordance with section 2505.  (e) Response  (1) Commission staff may file with the Chief Counsel a response to the answer no later than  15 calendar days after receipt of the answer.  The response shall be served upon the local  publicly owned electric utility upon filing.   (2) In the event that Commission staff files a response under (e)(1), the local publicly owned  electric utility may file with the Chief Counsel a reply to such response no later than 10  calendar days from receipt of such response.  The reply shall be served upon  Commission staff upon filing.  (f) Hearing  (1) A hearing on the complaint shall be scheduled to commence no sooner than 30 calendar  days after the filing of a staff response pursuant to subdivision (e) of this section.  (2) A notice of hearing on the complaint shall be provided in accordance with section 1234  (b).  Such notice shall be provided no later than 30 calendar days after the last filing is  made.   (3) The hearing may be scheduled before the full Commission, a committee designated by  the Commission, or a hearing officer assigned by the Chair at the request of the  committee as provided in section 1205.    (4) If the hearing is not held before the full Commission, the proposed decision set out in  section 1235 shall be forwarded to the full Commission, to the extent reasonably  possible, no later than 45 calendar days after the hearing has been concluded.  If the  hearing is held before the full Commission, to the extent reasonably possible, the  Commission shall publish its decision within 45 calendar days after the hearing has been  concluded.  (g)  The decision of the full Commission shall be a final decision.  There is no right of  reconsideration of a final decision issued under this section 1240. The decision will include  all findings, including findings regarding mitigating and aggravating factors, upon which  the Air Resources Board may rely in assessing a penalty against a local publicly owned  electric utility pursuant to Public Utilities Code section 399.30, subdivisions (l) and (m).  31  32  (h)  Referral  (1)  No sooner than five days after the time for filing a petition for writ of mandate in  accordance with Public Resources Code section 25901 has passed, Commission staff  shall forward a notice of violation, based on the final decision of the full Commission,  together with the record of proceedings, to the Air Resources Board for determination of  a penalty.  The record of proceedings shall include all filings made in the course of the  proceedings, the transcripts of the hearing and any exhibits used during the course of  that hearing, and any correspondence between the respondent and the Commission  pertaining to the proceedings.  (2)  If a petition for writ of mandate is filed by respondent, Commission staff shall not  forward the notice of violation to the Air Resources Board until the matter is fully and  finally determined.  In the event a petition for writ of mandate is filed by respondent,  the record of proceedings shall also include all filings made by all parties in the action  and any appeals thereof.    NOTE: Authority cited: Sections 25213 and 25218 (e), Public Resources Code; and section 399.30,  Public Utilities Code.  Reference: Section 399.30, Public Utilities Code.  City of Palo Alto (ID # 4158) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Contract for FY 2014 Asphalt Paving Project Title: Approval of a Contract with Granite Construction Company in the Amount of $2,700,818 for the FY2014 Asphalt Paving Project, the 2nd of 2 Contracts in the FY 2014 Street Maintenance Program Project (CIP PE-86070) From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with Granite Construction Company (Attachment A) in an amount not to exceed $2,700,818 for the Palo Alto FY 2014 Asphalt Paving Project Capital Improvement Project PE-86070 and PL-04010; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Granite Construction Company for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $270,082. Background The Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing and reconstruction of various city streets on an annual basis. The candidate streets are surveyed biannually by Public Works Engineering staff and then rated by a computerized City of Palo Alto Page 2 pavement maintenance management system (PMMS). This contract is the 2nd of 2 contracts for the FY 2014 streets program. All streets have been coordinated with the City’s Utilities Department and the Planning and Community Environment Department’s Transportation Division to minimize cutting newly resurfaced streets. Extensive public outreach will be conducted before and during the construction phase to inform the community step by step throughout the process, including flyers sent to adjacent residences and businesses, and notices posted on Nextdoor and the City’s website. In addition, staff will interface with the Palo Alto Downtown Business and Profession Association, neighborhood associations, and other organizations and business as appropriate. Discussion Project Description Staff is recommending approval of the 2nd of 2 street resurfacing contracts to be implemented this fiscal year as part of an enhanced program to increase the condition of Palo Alto’s streets. This project’s $2,700,818 expenditure for 705,000 square feet of improvements is estimated to raise the City’s Pavement Condition Index (PCI) by approximately 1.4 points. Palo Alto has a goal of raising the citywide average PCI to 85, representing very good or excellent conditions, by 2019. The City’s 2012 year end PCI was 77. This project includes repaving nine (9) lane miles of streets (705,000 square feet) of new asphalt. Additionally, the project scope includes more than 41,000 square feet of concrete road base repair and 7,000 lineal feet of new curb and gutter. The list of streets being resurfaced in this project is included as Attachment C. Additionally, maps of the FY 2014 street maintenance work and the 5-year plan for street repaving are available at www.cityofpaloalto.org/streets. Forest Avenue will be receiving 10 continuous blocks of pavement restoration from Ramona Street to Lincoln Avenue. Palo Alto Avenue from Alma Street to Bryant Street will receive surface treatments as well as green bike lanes as part of the new striping plan developed by the Planning and Community Environment City of Palo Alto Page 3 Department’s Transportation Division to enhance the bike boulevards. This project also includes repaving more than 50% of the Southgate neighborhood in coordination with the Southgate Neighborhood Storm Drain Capital Improvement Project, SD-10101. Bid Process On September 20, 2013, a notice inviting formal bids (IFB) for the Palo Alto FY2014 Asphalt Paving Project was posted at City Hall and was sent to 14 builder’s exchanges and 23 contractors. The bidding period was 26 calendar days. Bids were received from eight contractors on October 15, 2013 as listed on the attached Bid Summary (Attachment B). Summary of Bid Process Bid Name/Number Palo Alto FY 2014 Asphalt Paving Project Proposed Length of Project 150 calendar days Number of Bid Packages Sent to Contractors 23 Number of Bid Packages Sent to Builder’s Exchanges 14 Total Days to Respond to Bid 26 Pre-Bid Meeting? No Number of Bids Received: 8 Bid Price Range (base bid only) From a low of $2,219,993 to a high of $2,940,103 Bids ranged from a high of $2,940,103 to a low bid of $2,219,993 and ranged from 29% above to 3% below the engineer’s estimate of $2,285,479. Staff has reviewed all bids submitted and recommends that the base bid and Add Alternates 1 and 2 totaling $2,700,818 submitted by Granite Construction Company be accepted and that Granite Construction Company be declared the lowest responsible bidder. The change order amount of $270,082, which equals City of Palo Alto Page 4 ten percent of the total contract, is requested for related, additional, but unforeseen work which may develop during the project. Staff reviewed other similar projects performed by the lowest responsible bidder, Granite Construction Company including past paving projects performed for the City. There were no significant complaints with their previous work. Staff also checked with the Contractor's State License Board and found that the contractor has an active license on file. Resource Impact Funding for the Palo Alto FY2014 Asphalt Paving Project is available in Capital Improvement Program (CIP) Projects PE-86070 Street Resurfacing Program and CIP Project PL-04010 Bicycle & Pedestrian Transportation Plan Implementation Project. The funding allocation is as follows: Funding Source Contract Contingency Total Encumbrance 1 PE-86070 $ 2,654,978 $ 265,498 $ 2,920,476 2 PL-04010 $ 45,840 $ 4,584 $ 50,424 Totals $ 2,700,818 $ 270,082 $ 2,970,900 Policy Implications This project is in conformance with the City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. City of Palo Alto Page 5 Environmental Review Street resurfacing projects are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. Attachments:  A - Contract (PDF)  B - Bid Summary (PDF)  C - Street List (PDF) InvitationforBid(IFB)Package 1 Rev.July2012 CONSTRUCTIONCONTRACT CONSTRUCTIONCONTRACT ContractNo.C14151905 CityofPaloAlto and GraniteConstructionCompany PROJECT FY2014AsphaltPavingProject InvitationforBid(IFB)Package 2 Rev.July2012 CONSTRUCTIONCONTRACT CONSTRUCTIONCONTRACT TABLEOFCONTENTS SECTION1.INCORPORATIONOFRECITALS ANDDEFINITIONS………………………………......................5 1.1 Recitals ................................................................................................................ 5 1.2 Definitions ........................................................................................................... 5 SECTION2.THEPROJECT………………………………………………………………………………..............................5 SECTION3.THECONTRACT DOCUMENTS…………………………………………………………..........................5 3.1ListofDocuments…………………………………………………………………………………………......5 3.2OrderofPrecedence ……………………………………………………………………………................6 SECTION4.THEWORK …………………………………………………………………………………..............................7 SECTION5.PROJECTTEAM …………………………………………………………………………...............................7 SECTION6.TIMEOFCOMPLETION …………………………………………………………………............................7 6.1 TimeIsof Essence ........................................................................................……… 7 6.2 Commencementof Work..................................................................................... 7 6.3 ContractTime ....................................................................................................... 7 6.4 LiquidatedDamages ............................................................................................. 7 6.4.1 Entitlement…………………………………………………………………………………………….7 6.4.2 DailyAmount………………………………………………………………………………………….8 6.4.3 ExclusiveRemedy…………………………………………………………………………………..8 6.4.4 OtherRemedies…………………………………………………………………………………...8 6.5 AdjustmentstoContract Time...........................................................................… 8 SECTION7.COMPENSATIONTOCONTRACTOR………………………………………………………………………...8 7.1 ContractSum………………………………………………………………………………………………………1 7.2 FullCompensation……………………………………………………………………………………………..9 7.3 CompensationforExtraorDeletedWork…………………………………………………………….9 7.3.1 SelfPerformedWork…………………………………………………………………………………9 7.3.2 Subcontractors………………………………………………………………………………………….9 SECTION8.STANDARDO FCARE...................................................................................................9 SECTION9.INDEMNIFICATION......................................................................................................10 9.1 HoldHarmless……………………………………………………………………………………………………..10 9.2 Survival……………………………………………………………………………………………………………….10 SECTION10.NONDISCRIMINATION ..............................................................................................10 SECTION11.INSURANCEAND BONDS..........................................................................................10 InvitationforBid(IFB)Package 3 Rev.July2012 CONSTRUCTIONCONTRACT SECTION12.PROHIBITION AGAINSTTRANSFERS ..........................................................................11 SECTION13.NOTICES....................................................................................................................11 13.1 MethodofNotice………………………………………………………………………………………………..11 13.2 NoticeReci pients.................................................................................................11 13.3 ChangeofAddress ............................................................................................... 12 14.1 ResolutionofContract Disputes........................................................................... 12 14.2 ResolutionofOther Disputes............................................................................... 12 14.2.1 NonContractDisputes……………………………………………………………………………….12 14.2.2 Litigation,CityElection……………………………………………………...........................13 14.3 SubmissionofContractDispute…………………………………………………………………………..13 14.3.1 ByContractor………………………………………………………………………………………….13 14.3.2 ByCity…………………………………………………………………………………………………….13 14.4 ContractDisputeResolution Process...............................................................…… 13 14.4.1 DirectNegotiation…………………………………………………………………………………….13 14.4.2 DeferralofContractDisputes…………………………………………………………………14 14.4.3 Mediation………………………………………………………………………………………………….14 14.4.4 BindingArbitration……………………………………………………………………………………15 14.5 NonWaiver…………………………………………………………………………………………………………16 SECTION15.DEFAULT ...................................................................................................................16 15.1 NoticeofDefa ult.................................................................................................. 16 15.2 OpportunitytoCure Default................................................................................ 16 SECTION16.CITY'SRIGHTS ANDREMEDIES ..................................................................................16 16.1 RemediesUponDefault ....................................................................................... 16 16.1.1 DeleteCertainServic………………………………………………………...........................16 16.1.2 PerformandWithhold…………………………………………………………………………….16 16.1.3 SuspendTheConstructionContract………………………………………………………….16 16.1.4 TerminatetheConstructionContractforDefault……………………………………..17 16.1.5 InvokethePerformanceBond………………………………………………………………….17 16.1.6 AdditionalProvisions……………………………………………………………………………….17 16.2 DelaysbySureties ................................................................................................ 17 16.3 DamagestoCity ................................................................................................... 17 16.3.1 ForContractor'sDefault…………………………………………………………………………..17 16.3.2 CompensationforLosses………………………………………………………………………….17 16.5 SuspensionbyCityfor Convenience ..................................................................... 18 16.6 TerminationWithout Cause................................................................................. 18 InvitationforBid(IFB)Package 4 Rev.July2012 CONSTRUCTIONCONTRACT 16.6.1 Compensation………………………………………………………………………………………….18 16.6.2 Subcontractors…………………………………………………………………………………………18 16.7 Contractor’sDutiesUponTermination ................................................................. 19 SECTION17.CONTRACTOR'SRIGHTSAND REMEDIES ...................................................................19 17.1 Contractor’sRemedies ......................................................................................... 19 17.1.1 ForWorkStoppage…………………………………………………………………………………..19 17.1.2 ForCity'sNonPayment……………………………………………………………………………19 17.2 DamagestoContractor ........................................................................................ 19 SECTION18.ACCOUNTING RECORDS............................................................................................19 18.1 FinancialManagementandCity Access..........................................................……. 19 18.2 CompliancewithCityR equests........................................................................…. 20 SECTION19.INDEPENDEN TPARTIES.............................................................................................2 0 SECTION20.NUISANCE.................................................................................................................20 SECTION21.PERMITS ANDLICENSES............................................................................................2 0 SECTION22.WAIVER....................................................................................................................20 SECTION23.GOVERNING LAW.....................................................................................................20 SECTION24.COMPLETE AGREEMENT...........................................................................................21 SECTION25.SURVIVALO FCONTRACT ..........................................................................................21 SECTION26.PREVAILING WAGES..................................................................................................21 SECTION27.NON APPROPRIATION..............................................................................................21 SECTION28.GOVERNMENTAL POWERS........................................................................................21 SECTION29.ATTORNEY FEES........................................................................................................21 SECTION30.COUNTERPARTS........................................................................................................22 SECTION31.SEVERABILITY...........................................................................................................22 InvitationforBid(IFB)Package 5Rev.July2012 CONSTRUCTIONCONTRACT CONSTRUCTIONCONTRACT THISCONSTRUCTIONCONTRACTenteredintoonNovember12,20 13(“ExecutionDate”)byandbetween the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and GRANITE CONSTRUCTIONCOMPANY("Contractor"),is madewithreferencetothefollowing: RECITALS: A. Cityisamunicipalcorporationdulyorganized andvalidlyexistingunderthelawsoftheStateof Californiawiththepowertocarryonitsbusinessasiti snowbeingconductedunderthestatutesofthe StateofCaliforniaandtheCharterofCity. B. Contractorisa CaliforniaCorporationdulyorganizedandin goodstandingintheStateofCa, Contractor’sLicenseNumber89.Contracto rrepresentsthatitisdulylicensed bytheStateofCaliforniaand hasthebackground,knowledge,experienceand expertisetoperformtheobligationssetforthinthis ConstructionContract. C. OnSeptember 20,2013,City issuedanInvitationforBids(IFB)t ocontractorsfortheFy2014 AsphaltPavingProject(“Project”).Inresponset otheIFB,Contractorsubmittedabid. D. CityandContractordesiretoenterinto thisConstructionContractfortheProject,andother servicesasidentifiedintheBidDocumentsfortheProjectuponthefollowingtermsandconditions. NOWTHEREFORE,inconsiderationofthemutual promisesandundertakings hereinaftersetforth andforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhicharehereby acknowledged,itismutuallyagreedbyand betweentheundersignedpartiesas follows: SECTION1 INCORPORATIONOFRECITALSANDDEFINITIONS. 1.1 Recitals. Alloftherecitalsare incorporatedhereinbyreference. 1.2 Definitions. CapitalizedtermsshallhavethemeaningssetforthinthisConstructionContractand/orinthe GeneralConditions.IfthereisaconflictbetweenthedefinitionsinthisConstructionContractand intheGeneralConditions,thedefinitionsin thisConstructionContractshallprevail. SECTION2 THEPROJECT. TheProjectistheconstructionoftheFY2014AsphaltPavingProject("Project"). SECTION3 THECONTRACTDOCUMENTS. 3.1 ListofDocuments. TheContractDocuments(sometimescollectivelyreferredtoas“Agreement”or“BidDocuments”)consist ofthefollowingdocumentswhichareonfilewith thePurchasingDivisionandareherebyincorporatedby reference. 1) ChangeOrders 2) FieldChangeOrders InvitationforBid(IFB)Package 6Rev.July2012 CONSTRUCTIONCONTRACT 3) Contract 4) ProjectPlansandDrawings 5) TechnicalSpecifications 6) SpecialProvisions 7) NoticeInvitingBids 8) InstructionstoBidders 9) GeneralConditions 10) BiddingAddenda 11) InvitationforBids 12) Contractor'sBid/NonCollusionAffidavit 13) Reportslistedinthe BiddingDocuments 14) Public WorksDepartment’sStandardDrawingsand Specificationsdated2007 and updatedfromtimetotime 15) UtilitiesDepartment’sWater,Gas,Wastewater,ElectricUtilitiesStandardsdated2005 andupdatedfromtimetotime 16) CityofPaloAltoTraffic ControlRequirements 17) CityofPaloAltoTruck RouteMapandRegulations 18) Notice Inviting PreQualification Statements, PreQualification Statement, and Pre QualificationChecklist(ifapplicable) 19) PerformanceandPaymentBonds 20) InsuranceForms 3.2 OrderofPrecedence. Forthepurposesofconstruing,interpretingand resolvinginconsistenciesbetweenandamongthe provisionsofthisContract,theContractDocumentsshallhavetheorderofpr ecedenceassetforthinthe precedingsection.Ifaclaimedinconsistencycannotberesolved throughtheorderofprecedence,theCity shallhavethesolepowertodecide whichdocumentorprovisionshall governasmaybeinthebest interestsoftheCity. InvitationforBid(IFB)Package 7Rev.July2012 CONSTRUCTIONCONTRACT SECTION4 THEWORK. TheWorkincludesalllabor,materials,equipment,services,permits,fees,licensesandtaxes,andallother thingsnecessaryforContractortoperformitsobligationsandcompletetheProject,including,without limitation,anyChangesapprovedbyCity,inaccordance withtheContractDocumentsandallApplicable CodeRequirements. SECTION5 PROJECT TEAM. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professionalandtechnicalconsultationforthedesignandconstructionoftheProject.TheProjectrequires thatContractoroperateefficiently,effectivelyandcooperativelywithCityaswellasallothermembersof theProjectTeamand othercontractorsretainedbyCitytoconstructotherportionsoftheProject. SECTION6 TIMEOFCOMPLETION. 6.1 TimeIsofEssence. Timeisoftheessencewithrespecttoallt imelimitssetforthin theContractDocuments. 6.2 CommencementofWork. ContractorshallcommencetheWorkonthedatespecifiedinCity’sNoticetoProceed. 6.3 ContractTime. Workhereundershallbeginonthedate specifiedontheCity’sNoticetoProceedandshallbe completed notlaterthan . withinOneHundredFifty calendardays(150)afterthecommencementdatespecifiedin City’s NoticetoProceed. 6.4 LiquidatedDamages. 6.4.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorilycompletetheWorkwithintheContractTime,Citywillsuffer,asaresult of Contractor’s failure, substantial damages which are both extremely difficult and impracticabletoascertain.Such damagesmayinclude,bu tarenotlimitedto: (i) LossofpublicconfidenceinCit yanditscontractorsandconsultants. (ii) Lossofpublicuseofpublicfacilities. (iii) Extendeddisruptiontopublic. InvitationforBid(IFB)Package 8Rev.July2012 CONSTRUCTIONCONTRACT 6.4.2 DailyAmount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damagethatCitywillincurifContractorfailstoachieveSubstantialCompletionofthe entireWorkwithintheContractTime.Therefore,thepartiesagreethatinadditiontoall otherdamagestowhich Citymaybeentitledotherthandelaydamages,intheevent ContractorshallfailtoachieveSubstantialCompletionoftheentireWorkwithinthe ContractTime,ContractorshallpayCityasliquidated damagestheamountof$500per dayforeachDayoccurringaftertheexpirationoftheContractTimeuntilContractor achievesSubstantialCompletionoftheentireWork.Theliquidateddamagesamountis notapenaltybutconsideredtobeareasonableestimateoftheamountofdamagesCity willsufferbydelayincompletionoftheWork. 6.4.3 ExclusiveRemedy. CityandContractoracknowledgeandagreethatthisliquidated damagesprovisionshall be City’s only remedy for delay damages caused by Contractor’s failure to achieve SubstantialCompletionoftheentireWorkwithintheContractTime. 6.4.4 OtherRemedies. Cityisentitledtoanyandallavailablelegal andequitableremediesCitymayhavewhere City’s Losses are caused by any reason other than Contractor’s failure to achieve SubstantialCompletionoftheentireWorkwithintheContractTime. 6.5 Adjustmentst oContractTime. TheContractTimemayonlybeadjustedfortimeextensionsapprovedbyCityandagreedtoby Change Order executed by City and Contractor in accordance with the requirements of the ContractDocuments. SECTION7 COMPENSATIONTOCONTRACTOR. InvitationforBid(IFB)Package 1Rev.July2012 CONSTRUCTIONCONTRACT 7.1 ContractSum. ContractorshallbecompensatedforsatisfactorycompletionoftheWorkincompliancewiththe ContractDocumentstheContractSumofTwo MillionSevenHundredThousandEighthundred andEighteenDollars($2,700,818). [ThisamountincludestheBaseBidandAddAlternates1and2.] // // InvitationforBid(IFB)Package 9Rev.July2012 CONSTRUCTIONCONTRACT 7.2 FullCompensation. TheContractSumshallbefullcompensationto ContractorforallWorkprovidedbyContractor and,exceptasotherwiseexpresslypermittedbythetermsoftheContractDocuments,shallcover allLossesarisingoutofthenatureo ftheWorkorfromtheactsoftheelementsoranyunforeseen difficultiesorobstructionswhichmayariseorbeencounteredinperformanceoftheWorkuntil itsAcceptancebyCity,allrisksconnectedwith theWork,andanyandallexpensesincurreddueto suspensionordiscontinuanceoftheWork.TheContractSummayonlybeadjustedforChange Ordersissued,executedandsatisfactorilyperformedinaccordancewiththerequirementsofthe ContractDocuments. 7.3 CompensationforExtraorDeletedWork. TheContractSumshallbeadjusted(eitherbyadditiono rcredit)forChangesintheWorkinvolving ExtraWorkorDeletedWorkbasedononeor moreofthefollowingmethodstobeselectedby City: 1.UnitpricesstatedintheContractDocumentsoragreeduponbyCityandContractor, which unit prices shall be deemed to include Contractor Markup and Subcontractor/SubsubcontractorMarku pspermittedbythisSection. 2.Alumpsumagreedupon byCityandContractor,basedontheestimatedAllowable Costs and Contractor Markup and Subcontractor Markup computed in accordance withthisSection. 3.Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups applicabletosuchExtraWorkcomputedin accordancewiththisSection. ContractorMarkupandSubcontractor/Subsubcontractor Markupssetforthhereinarethefull amountofcompensationtobeaddedforExtraWorko rtobesubtractedforDeletedWorkthatis attributabletooverhead(directandindirect)andprofitofContractorandofitsSubcontractors and Subsubcontractors, of every Tier. When using this payment methodology, Contractor MarkupandSubcontractor/SubsubcontractorMarkups,whichshallnotbecompounded,shallbe computedasfollows: 7.3.1 MarkupSelfPerformedWork. 10%oftheAllowableCostsforthatportionoftheExtraWorkorDeletedWorktobe performedbyContractorwithitsownforces. 7.3.2 MarkupforWorkPerformed bySubcontractors. 15%oftheAllowableCostsforthatportionoftheExtraWorkorDeletedWorktobe performedbyafirstTierSubcontractor. SECTION8 STANDARDOFCARE. Contractor agrees that the Work shall be performed by qualified, experienced and wellsupervised personnel.AllservicesperformedinconnectionwiththisConstructionContractshallbeperformedina mannerconsistentwiththestandardofcareunderCalifornialawapplicabletothosewhospecializein providingsuchservicesforprojectsofthe type,scopeandcomplexityoftheProject. InvitationforBid(IFB)Package 10Rev.July2012 CONSTRUCTIONCONTRACT SECTION9 INDEMNIFICATION. 9.1 HoldHarmless. Tothefullestextentallowedbylaw,Contractorwilldefend,indemnify,andholdharmlessCity,its CityCouncil,boardsandcommissions,officers,agents,employees,representativesandvolunteers (hereinaftercollectivelyreferredtoas"Indemnitees"),throughlegalcounselacceptabletoCity, fromandagainstanyandallLossesarising directlyorindirectlyfrom,orinanymannerrelatingto anyof,thefollowing: (i) PerformanceornonperformanceoftheWorkbyContractororitsSubcontractorsorSub subcontractors,ofanytier; (ii) Performance or nonperformance by Contractor or its Subcontractors or Sub subcontractorsofanytier,ofanyofthe obligationsundertheContractDocuments; (iii) TheconstructionactivitiesofContractororitsSubcontractorsorSubsubcontractors,of anytier,eitherontheSiteo ronotherproperties; (iv) ThepaymentornonpaymentbyContractortoanyofitsemployees,Subcontractorsor Subsubcontractorsofanytier,forWorkperformed onorofftheSitefortheProject;and (v) Anypersonalinjury,propertydamageoreconomiclosstothirdpersonsassociatedwith the performance or nonperformance by Contractor or its Subcontractors or Sub subcontractorsofanytier,oftheWork. However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses resultingfromthesoleoractivenegligenceorwillfulmisconductoftheIndemnitee.Contractor shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract DocumentsshallbeconstruedtogiverisetoanyimpliedrightofindemnityinfavorofContractor againstCityoranyotherIndemnitee. 9.2 Survival. TheprovisionsofSection9shallsurvive theterminationofthisConstructionContract. SECTION10 NONDISCRIMINATION. AssetforthinPaloAltoMunicipalCodesection2.30.510,Contractorcertifiesthatintheperformanceof thisAgreement,itshallnotdiscriminateintheemploymentofanypersonbecauseoftherace,skincolor, gender,age,religion,disability,nationalorigin,ancestry,sexualorientation,housingstatus,maritalstatus, familialstatus,weightorheightofsuchperson.Contractoracknowledgesthatithasreadandunderstands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirementsandthepenaltiesforviolationthereof,andwillcomplywithallrequirementsofSection 2.30.510pertainingtonondiscriminationinemployment. SECTION 11 INSURANCEANDBONDS. OnorbeforetheExecutionDate,ContractorshallprovideCitywithevidencethatithasobtainedinsurance andPerformanceandPaymentBondssatisfyingallrequirements inArticle11oftheGeneralConditions. FailuretodososhallbedeemedamaterialbreachofthisConstructionContract. InvitationforBid(IFB)Package 11Rev.July2012 CONSTRUCTIONCONTRACT SECTION12 PROHIBITIONAGAINSTTRANSFERS. CityisenteringintothisConstructionContractbaseduponthestatedexperienceandqualificationsofthe ContractoranditssubcontractorssetforthinContractor’sBid.Accordingly,Contractorshallnotassign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operationoflaworotherwisewithoutthepriorwrittenconse ntofCity.Anyassignment,hypothecationor transferwithoutsaidconsentshallbenullandvoid. Thesale,assignment,transferorotherdispositionofanyoftheissuedandoutstandingcapitalstockof ContractororofanygeneralpartnerorjointventurerorsyndicatememberofContractor,iftheContractor is a partnership or joint venture or syndicate or cotenancy shall result in changing the control of Contractor,shallbeconstruedasanassignmentofthisConstructionContract.Controlmeansmorethan fiftypercent(50%)ofthevotingpowerofthecorporationorotherentity. SECTION 13 NOTICES. 13.1 MethodofNotice. Allnotices,demands,requestsorapprovalstobegivenunderthisConstructionContractshallbegivenin writingandshallbedeemedservedo ntheearlierofthefollowing: (i) Onthedatedeliveredifdeliveredpersonally; (ii) Onthethirdbusinessdayafterthedeposit thereofintheUnitedStatesmail,postageprepaid,and addressedashereinafterprovided; (iii) Onthedatesentifsentbyfacsimiletransmission; (iv) Onthedatesentifdelivered byelectronicmail;or (v) Onthedateitisacceptedorr ejectedifsentbycertifiedmail. 13.2 Notice Recipients. Allnotices,demandsorrequests(including,withoutlimitation,Claims)fromContractortoCity shall include the Project name and the number of this Construction Contract and shall be addressedtoCityat: ToCity: CityofPaloAlto CityClerk 250HamiltonAvenue P.O.Box 10250 PaloAlto,CA94303 Copyto:CityofPaloAlto PublicWorksAdministration 250HamiltonAvenue PaloAlto,CA94301 Attn:HollyBoyd Or InvitationforBid(IFB)Package 12Rev.July2012 CONSTRUCTIONCONTRACT CityofPaloAlto UtilitiesEngineering 250HamiltonAvenue PaloAlto,CA94301 Attn: Inaddition,copiesofallClaimsbyContractorunderthisConstructionContractshallbeprovided tothefollowing: PaloAltoCityAttorney’sOffice 250HamiltonAvenue P.O.Box10250 PaloAlto,California94303 AllClaimsshallbedeliveredpersonallyorsentbycertifiedmail. Allnotices,demands,requestsorapprovalsfromCity toContractorshallbeaddressedto: GraniteConstructionCompany 585W.BeachStreet Watsonville,Ca95077 Attn:BarbaraJacob 13.3 ChangeofAddress. Intheeventofanychange ofaddress,themovingpartyshallnotifytheotherpartyofthechange of address in writing. Each party may, by written notice only, add, delete or replace any individualstowhomandaddressesto whichnoticeshallbeprovided. SECTION14 DISPUTERESOLUTION. 14.1 ResolutionofContractDisputes. ContractDisputesshallberesolvedbythepartiesinaccordancewiththeprovisionsofthisSection 14,inlieuofanyandallrightsunderthelawthat eitherpartyhaveitsrightsadjudgedbyatrial courtorjury.AllContractDisputesshallbe subjecttotheContractDisputeResolutionProcessset forthinthisSection14,which shallbetheexclusive recourse of Contractor and City for such ContractDisputes. 14.2 ResolutionofOtherDisputes. 14.2.1 NonContractDisputes. ContractDisputesshallnotincludeanyofthefollowing: (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmentalagency; (ii) Thirdpartytortclaimsforpersonalinjury,propertydamageordeathrelatingto anyWorkperformedbyContractororitsSubcontractorsorSubsubcontractors ofanytier; (iii) Falseclaimsliabilityunder CaliforniaGovernmentCodeSect ion12650,et.seq.; (iv)Defects in the Work first discovered by City after Final Payment by City to Contractor; (v) Stopnotices;or (vi) The right of City to specific performance or injunctive relief to compel performanceofanyprovisionoftheContractDocuments. InvitationforBid(IFB)Package 13Rev.July2012 CONSTRUCTIONCONTRACT 14.2.2 Litigation,CityElection. MattersthatdonotconstituteContractDisputesshallberesolvedbywayofanaction filedintheSuperiorCourtoftheStateofCalifornia,CountyofSantaClara,andshallnot besubjecttotheContractDisputeResolutionProcess.However,theCityreserves the right,initssoleandabsolutediscretion,totreatsuchdisputesasContractDisputes. UponwrittennoticebyCityofitselectionasprovidedintheprecedingsentence,such disputeshallbesubmittedbythepartiesandfinallydecidedpursuanttotheContract DisputeResolutionProcessinthemannerasrequiredforContractDisputes,including, without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final determinationuntilafterFinalCompletionoftheWork. 14.3 Submissionof ContractDispute. 14.3.1 ByContractor. ContractorsmaycommencetheContractDisputeResolutionProcessuponCity'swritten responsedenyingallorpart ofaClaimpursuanttoParagraph4.2.9or4.2.10ofthe GeneralConditions.ContractorshallsubmitawrittenStatementofContractDispute(as set forth below) to City within seven (7) Days after City rejects all or a portion of Contractor'sClaim.FailurebyContractortosubmititsStatementofContract Disputeina timelymannershallresultinCity’sdecisionbyCityontheClaimbecomingfinaland binding.Contractor’sStatementofContractDisputeshallbesignedunderpenaltyof perjuryandshallstatewithspecificitytheeventsorcircumstancesgivingrisetothe ContractDispute,thedatesoftheir occurrenceandtheassertedeffectontheContract SumandtheContractTime.TheStatementofContractDisputeshallincludeadequate supportingdatatosubstantiatethedisputedClaim.Adequatesupportingdatafora ContractDisputerelatingtoanadjustmentoftheContractTimeshallincludebothofthe following: (i) All oftheschedulingdatarequiredtobesubmittedbyContractorunderthe Contract Documents to obtain extensions of time and adjustments to the ContractTimeand (ii) A detailed, eventbyevent description of the impact of each event on completionofWork.AdequatedatatosupportaStatementofContractDispute involvinganadjustmentoftheContractSummustincludebothofthefollowing: (a) Adetailedcostbreakdownand (b) Supportingcostdatainsuch formandincludingsuchinformationand othersupportingdataasrequiredundertheContractDocumentsfor submissionofChange OrderRequestsand Claims. 14.3.2 ByCity. City'srighttocommencetheContractDisputeResolutionProcessshallariseatanytime followingCity'sactualdiscoveryofthecircumstancesgivingrisetotheContractDispute. CityassertsContractDisputesinresponsetoaContractDisputeassertedbyContractor. A Statement of Contract Dispute submitted by City shall state the events or circumstancesgivingrisetotheContractDispute,thedatesoftheiroccurrenceandthe damagesorotherreliefclaimedbyCityasaresultofsuchevents. 14.4 ContractDisputeResolutionProcess. Thepartiesshallutilizeeachofthefollowingstepsinthe ContractDisputeResolution Processinthesequencetheyappearbelow.Eachpartyshallparticipatefullyandingood faithineachstepintheContractDisputeResolutionProcess,andgoodfaitheffortshall beaconditionprecedenttotherightofeachpartytoproceedtothenextstepinthe process. 14.4.1 DirectNegotiations. DesignatedrepresentativesofCityandContractorshallmeetassoonaspossible(butnot laterthanten(10)Daysafterreceiptof theStatementofContractDispute)inagood InvitationforBid(IFB)Package 14Rev.July2012 CONSTRUCTIONCONTRACT faith effort to negotiate a resolution to the Contract Dispute. Each party shall be representedinsuchnegotiationsbyanauthorizedrepresentativewithfullknowledgeof thedetailsoftheClaimsordefensesbeingassertedbysuchpartyinthenegotiations, andwithfullauthoritytoresolvesuch ContractDisputethenandthere,subjectonlyto City’s obligation to obtain administrative and/or City Council approval of any agreed settlementorresolution.IftheContractDisputeinvolvestheassertionofarightorclaim byaSubcontractororSubsubcontractor,ofany tier,againstContractorthatisinturn beingassertedbyContractoragainstCity(“PassThroughClaim”),thentheSubcontractor orSubSubcontractorshallalsohavearepresentativeattendthenegotiations,withthe sameauthorityandknowledgeasdescribed above.Uponcompletionofthemeeting,if theContractDisputeisnotresolved,thepartiesmayeithercontinuethenegotiationsor any party may declare negotiations ended. All discussions that occur during such negotiationsandalldocumentspreparedsolelyfor thepurposeofsuchnegotiationsshall beconfidentialandprivilegedpursuanttoCaliforniaEvidenceCodeSections1119and 1152. 14.4.2 DeferralofContractDisputes. Following the completion of the negotiations required by Paragraph 14.4.1, all unresolvedContractDisputesshallbedeferredpendingFinalCompletionoftheProject, subjecttoCity’sright,initssoleandabsolutediscretion,torequirethattheContract DisputeResolutionProcessproceedpriortoFinalCompletion.AllContractDisputesthat havebeendeferreduntilFinalCompletionshall beconsolidatedwithinareasonabletime afterFinalCompletionandthereafterpursuedtoresolutionpursuanttothisContract DisputeResolutionProcess.ThepartiescancontinueinformalnegotiationsofContract Disputes; provided, however, that such informal negotiations shall not be alter the provisionsoftheAgreementdeferringfinaldeterminationandresolution ofunresolved ContractDisputesuntilafterFinalCompletion. 14.4.3 Mediation. If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 14.4.1,thepartiesshallsubmittheContractDisputetononbindingmediationbeforea mutuallyacceptablethirdpartymediator. .1 QualificationsofMediator.Thepartiesshallendeavortoselect amediatorwho isaretiredjudgeoranattorneywithatleastfive(5)yearsofexperiencein public works construction contract law and in mediating public works constructiondisputes.Inaddition,themediatorshallhaveatleasttwenty(20) hoursofformaltraininginmediationskills. .2 Submission to Mediation and Selection of Mediator.The party initiating mediationofaContractDisputeshallprovidewrittennoticetotheotherparty ofitsdecisiontomediate.Intheeventthepartiesareunabletoagreeupona mediatorwithinfifteen(15)Daysafterthereceiptofsuchwrittennotice,then the parties shall submit the matter to the American Arbitration Association (AAA) at its San Francisco Regional Office for selection of a mediator in accordancewiththeAAACo nstructionIndustryMediationRules. .3 MediationProcess.ThelocationofthemediationshallbeattheofficesofCity. Thecostsof mediationshallbesharedequallybybothparties.Themediator shallprovideanindependentassessmentonthemeritsoftheContractDispute and recommendations for resolution. All discussions that occur during the mediationandalldocumentspreparedsolelyforthepurposeofthemediation shall be confidential and privileged pursuant to California Evidence Code Sections1119and1152. InvitationforBid(IFB)Package 15Rev.July2012 CONSTRUCTIONCONTRACT 14.4.4 Bind ingArbitration. IftheContractDisputeisnotresolvedbymediation,thenanypartymaysubmitthe ContractDisputeforfinalandbindingarbitrationpursuanttotheprovisionsofCalifornia PublicContractCodeSections10240,etseq.Theawardofthearbitratorthereinshallbe finalandmaybeenteredasajudgmentbyanycourtofcompetentjurisdiction.Such arbitrationshallbeconductedina ccordancewiththefollowing: .1 ArbitrationInitiation.Thearbitrationshallbeinitiatedbyfilingacomplaintin arbitration in accordance with the regulations promulgated pursuant to CaliforniaPublicContractCodeSection10240.5. .2 QualificationsoftheArbitrator.Thearbitratorshallbeapprovedbyallparties. Thearbitratorshallbearetiredjudgeoranattorneywithatleastfive(5)years ofexperienceinpublicworksconstructioncontractlawandinarbitratingpublic works construction disputes. In addition, the arbitrator shall have at least twenty(20)hoursofformaltraininginarbitrationskills.Intheeventtheparties cannotagreeuponanarbitrator,theprovisionsofCaliforniaPublicContract CodeSection10240.3shallbefollowedinselectinganarbitratorpossessingthe qualificationsrequiredherein. .3 HearingDaysandLocation.Arbitrationhearingsshall beheldattheofficesof Cityandshall,exceptforgoodcauseshowntoanddeterminedbythearbitrator, be conducted on consecutive business days, without interruption or continuance. .4 HearingDelays.Arbitrationhearingsshallnotbedelayedexceptupongood causeshown. .5 RecordingHearings.Allhearingsto receiveevidenceshallberecordedbya certifiedstenographicreporter,withthecoststhereofborneequallybyCityand Contractorandallocatedbythearbitratorinthefinalaward. .6 LimitationofDepositions.Thepartiesmayconductdiscoveryinaccordance withtheprovisionsofsection10240.11ofthePublicContract Code;provided, however,thatdepositionsshallbelimited tobothofthefollowing: (i) Ten(10)percipientwitnessesforeachpartyand5expertwitnessesper party. Upon a showing of good cause, the arbitrator may increase the number of permitteddepositions.Anindividualwhoisbothpercipientand expertshall,for purposesofapplyingtheforegoingnumericallimitationonly,bedeemedan expert. Expert reports shall be exchanged prior to receipt of evidence, in accordancewiththedirectionofthearbitrator,andexpertreports(including initial and rebuttal reports) not so submitted shall not be admissible as evidence. .7 AuthorityoftheArbitrator.Thearbitratorshallhavetheauthoritytohear dispositivemotionsandissueinterimordersandinterimorexecutoryawards. InvitationforBid(IFB)Package 16Rev.July2012 CONSTRUCTIONCONTRACT .8 WaiverofJuryTrial.ContractorandCityeachvoluntarilywaivesitsrighttoa jury trial with respect to any Cont ract Dispute that is subject to binding arbitration in accordance with the provisions of this Paragraph 14.4.4. Contractorshallincludethisprovisioninitscontractswithits Subcontractors whoprovideanyportionoftheWork. 14.5 NonWaiver. ParticipationintheContractDisputeResolutionProcessshallnotwaive,releaseorcompromise anydefenseofCity,including,withoutlimitation,anydefensebasedontheassertionthatthe rightsorClaimsofContractorthatarethebasisofaContractDisputewerepreviouslywaivedby ContractorduetoContractor’sfailuretocomplywith theContractDocuments,including,without limitation,Contractor’sfailuretocomplywithanytimeperiodsforprovidingnoticeofrequests foradjustmentsoftheContractSumorContractTimeorforsubmissionofClaimsorsupporting documentationofClaims. SECTION15 DEFAULT. 15.1 NoticeofDefault. IntheeventthatCitydetermines,initssolediscretion,thatContractorhasfailedorrefusedto perform any of the obligations set forth in the Contr act Documents, or is in breach of any provisionoftheContractDocuments,City maygivewrittennoticeofdefault toContractorinthe mannerspecifiedforthegivingofnoticesintheConstructionContract. 15.2 OpportunitytoCureDefault. Exceptforemergencies,Contractorshallcureanydefaultinperformanceofitsobligationsunder theContractDocumentswithintwo(2)Days(or suchshortertimeasCitymayreasonablyrequire) afterreceiptofwrittennotice.However,ifthebreachcannotbereasonablycuredwithinsuch time,Contractorwillcommencetocurethebreachwithintwo(2)Days(orsuchshortertimeas City may reasonably require) and will diligently and continuously prosecute such cure to completionwithinareasonabletime,whichshallinnoeventbelaterthanten(10)Daysafter receiptofsuchwrittennotice. SECTION16 CITY'SRIGHTSANDREMEDIES. 16.1 Remedies UponDefault. IfContractorfailstocureanydefaultofthis ConstructionContractwithinthetimeperiodsetforth aboveinSection15,thenCitymaypursueanyremediesavailableunderlaworequity,including, withoutlimitation,thefollowing: 16.1.1 DeleteCertainServices. Citymay,withoutterminatingthe ConstructionContract,deletecertainportionsoftheWork, reservingtoitselfallrightstoLossesrelatedthereto. 16.1.2 PerformandWithhold. Citymay,withoutterminatingtheConstructionContract,engageotherstoperformtheWorkor portionoftheWorkthathasnotbeenadequatelyperformedbyContractorandwithholdthe cost thereoftoCityfromfuturepaymentstoContractor,reservingtoitselfallrightstoLossesrelated thereto. 16.1.3 SuspendThe ConstructionContract. Citymay,withoutterminatingtheConstructionCo ntractandreservingtoitselfallrightstoLosses relatedthereto,suspendalloranyportionofthisConstructionContract foraslongaperiodof timeasCitydetermines,initssolediscretion,appropriate,inwhicheventCityshallhaveno InvitationforBid(IFB)Package 17Rev.July2012 CONSTRUCTIONCONTRACT obligationtoadjusttheContractSumorContractTime,andshallhavenoliabilitytoContractor fordamagesifCitydirectsContractortoresumeWork. 16.1.4 TerminatetheConstru ctionContractforDefault. CityshallhavetherighttoterminatethisConstructionContract,inwholeorinpart,upon the failureofContractortopromptlycureanydefaultasrequiredbySection15.City’selectionto terminatetheConstructionContractfordefaultshallbecommunicatedbygivingContractora writtennoticeofterminationinthemannerspecifiedforthegivingofnoticesintheConstruction Contract.AnynoticeofterminationgiventoContractorbyCityshallbeeffectiveimmediately, unlessotherwiseprovidedtherein. 16.1.5 Invoke thePerformanceBond. Citymay,withorwithoutterminatingtheConstructionContractandreservingtoitselfallrightsto Lossesrelatedthereto,exerciseitsrightsu nderthePerformanceBond. 16.1.6 AdditionalProvisions. Allof City’srightsandremediesunderthisConstructionCon tractarecumulative,andshallbein additiontothoserightsandremediesavailableinlaworinequity.DesignationintheContract DocumentsofcertainbreachesasmaterialshallnotwaivetheCity’sauthoritytodesignateother breachesasmaterialnorlimit City’srighttoterminatetheConstructionContract,orpreventthe CityfromterminatingtheAgreementforbreachesthatarenotmaterial.City’sdeterminationof whethertherehasbeennoncompliancewiththeConstructionContractsoastowarrantexercise byCityofitsrightsandremediesfor defaultundertheConstructionContract,shallbebindingon allparties.Noterminationoractionta kenbyCityaftersuchtermination shallprejudiceanyother rightsorremediesofCityprovidedbylaworequityorbytheContractDocumentsuponsuch termination; and City may proceed against Contractor to recover all liquidated damages and LossessufferedbyCity. 16.2 DelaysbySureties. Without limiting to any of City’s other rights or remedies, City has the right to suspend the performanceoftheWorkb yContractor’ssuretiesintheeventofanyofthefollowing: (i) Thesureties’failuretobeginWorkwithinareasonable timeinsuchmannerastoinsure fullcompliancewiththeConstruction ContractwithintheContractTime; (ii) Thesureties’abandonmentoftheWork; (iii) IfatanytimeCityisoftheopinionthesureties’Workisunnecessarilyorunreasonably delayingtheWork; (iv) Thesureties’violationofanyterms oftheConstructionContract; (v) Thesureties’failuretoperformaccordingtotheContractDocuments;or (vi) Thesureties’failuretofollowCity’sinstructionsforcompletionoftheWorkwithinthe ContractTime. 16.3 DamagestoCity. 16.3.1 ForContractor'sDefault. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’sdefaultundertheContractDocuments. 16.3.2 CompensationforLosses. IntheeventthatCity'sLossesarisefromContractor’sdefaultundertheContractDocuments,City shallbeentitledtowithholdmoniesotherwisepayabletoContractoruntilFinalCompletionofthe Project.IfCityincursLossesduetoContractor’sdefault,thentheamountofLossesshallbe deductedfromtheamountswithheld.Shouldthe amountwithheldexceedtheamountdeducted, thebalancewillbepaidtoContractororitsdesigneeuponFinalCompletionoftheProject.Ifthe LossesincurredbyCityexceedtheamountwithheld,ContractorshallbeliabletoCityforthe differenceandshallpromptlyremitsametoCity. InvitationforBid(IFB)Package 18Rev.July2012 CONSTRUCTIONCONTRACT 16.4 SuspensionbyCityforConvenience. Citymay,atanytimeandfromtimetotime,withoutcause,orderContractor,inwriting,to suspend,delay,orinterrupttheWorkinwholeorinpartforsuchperiodoftime,uptoan aggregateoffiftypercent(50%)of theContractTime.Theordershallbespecificallyidentifiedas a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense,complywiththeorderandtakeallreasonablestepstominimizecostsallocabletothe WorkcoveredbytheSuspensionOrder.Durin gtheSuspensionorextensionoftheSuspension,if any,CityshalleithercanceltheSuspensionOrderor,byChangeOrder,deletetheWorkcovered bytheSuspensionOrder.IfaSuspensionOrderiscanceledorexpires,Contractorshallresume andcontinuewiththeWork.AChangeOrderwillbeissuedtocoveranyadjustmentsofthe ContractSumortheContractTimenecessarilycausedbysuchsuspension.A SuspensionOrder shallnotbetheexclusivemethodfor CitytostoptheWork. 16.5 Termination WithoutCause. Citymay,atitssolediscretionandwithoutcause,terminatethisConstructionContractinpartor in wholebygivingthirty(30)DayswrittennoticetoContractor.Thecompensationallowedunder this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such terminationandContractorwaivesanyclaimforothercompensationorLosses,including,butnot limitedto,lossofanticipatedprofits,lossofrevenue,lost opportunity,orotherconsequential, direct,indirectorincidentaldamagesofanykindresultingfromterminationwithoutcause. 16.5.1 Compensation. Following such termination and within fortyfive (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the followingto ContractorasContractor’ssolecompensation forperformanceoftheWork: .1 ForWorkPerformed.TheamountoftheContractSumallocabletotheportion oftheWorkproperlyperformedbyContractorasofthedateoftermination, lesssumspreviouslypaidtoContractor. .2 ForCloseoutCosts.ReasonablecostsofContractoranditsSubcontractorsand Subsubcontractorsfor: (i) Demobilizingand (ii) AdministeringthecloseoutofitsparticipationintheProject(including, withoutlimitation,allbillingandaccountingfunctions,notincluding attorneyorexpertfees)foraperiodofnolongerthanthirty(30)Days afterreceipt ofthenoticeoftermination. .3 For Fabricated Items.Previously unpaid cost of any items delivered to the ProjectSitewhichwerefabricated forsubsequentincorporationintheWork. 16.5.2 Subcon tractors. Contractorshallincludeprovisionsinallofitssubcontrac ts,purchaseordersandothercontracts permitting termination for convenience by Contractor on terms that are consistent with this ConstructionContractandthataffordnogreaterrightsofrecoveryagainstContractorthanare affordedtoContractoragainst CityunderthisSection. InvitationforBid(IFB)Package 19Rev.July2012 CONSTRUCTIONCONTRACT 16.6 Contractor’sDutiesUponTermination. Uponreceiptofanoticeofterminationfordefaultorforconvenience,Contractorshall,unlessthe noticedirectsotherwise,dothefollowing: (i) ImmediatelydiscontinuetheWorktoth eextentspecifiedinthenotice; (ii) Placenofurtherordersorsubcontractsformaterials,equipment,servicesorfacilities, except as may benecessary for completion of such portion of theWork that isnot discontinued; (iii) ProvidetoCityadescription,inwritingnolaterthanfifteen(15)daysafterreceiptofthe notice of termination, of all subcontracts, purchase orders and contracts that are outstanding,including,withoutlimitation,thetermsoftheoriginalprice,anychanges, payments,balanceowing,thestatusoftheportionoftheWorkcoveredandacopyof thesubcontract,purchaseorderorcontractandanywrittenchanges,amendmentsor modifications thereto, together with such other information as City may determine necessaryinordertodecidewhethertoacceptassignmentoforrequestContractorto terminatethesubcontract,purchaseorderorcontract; (iv) PromptlyassigntoCitythosesubcontracts,purchaseordersorcontracts,orportions thereof,thatCityelectstoacceptbyassignmentandcancel,onthemostfavorableterms reasonablypossible,allsubcontracts,purchaseordersorcontracts,orportionsthereof, thatCitydoesnotelect toacceptbyassignment;and (v) ThereafterdoonlysuchWorkasmaybenecessarytopreserveandprotectWorkalready inprogressandtoprotectmaterials,plants,andequipmentontheProjectSiteor in transitthereto. SECTION17 CONTRACTOR'SRIGHTSANDREMEDIES. 17.1 Contractor’sRem edies. ContractormayterminatethisConstructionContractonlyupontheoccurrenceofoneofthe following: 17.1.1 ForWorkStoppage. TheWorkisstoppedforsixty(60)consecutiveDays,throughnoactorfaultofContractor,any Subcontractor,oranyemployeeoragentofContractororanySubcontractor,duetoissuanceof anorderofacourtorotherpublicauthorityotherthanCityhavingjurisdictionorduetoanactof government,suchasadeclarationofanationalemergencymakingmaterialunavailable.This provisionshallnotapplytoanyworkstoppageresultingfromtheCity’sissuanceofasuspension noticeissuedeitherforcauseorforconvenience. 17.1.2 ForCity'sNonPayment. IfCitydoesnotmakepayContractorundisputedsumswithinninety(90)Daysafterreceiptof noticefromContractor,ContractormayterminatetheConstructionContract(30)daysfollowinga secondnoticetoCityof Contractor’sintentiontoterminatetheConstructionContract. 17.2 DamagestoContractor. IntheeventofterminationforcausebyContractor,CityshallpayContractorthesumsprovided forinParagraph16.5.1above.Contractoragreestoacceptsuchsumsasitssoleandexclusive compensationandagreestowaiveanyclaim forothercompensationorLosses,including,butnot limitedto,lossofanticipatedprofits,lossof revenue,lostopportunity,orotherconsequential, direct,indirectandincidentaldamages,ofanykind. SECTION18 ACCOUNTINGRECORDS. 18.1 FinancialManagementandCityAccess. Contractorshallkeepfullanddetailedaccountsandexercisesuchcontrolsasmaybenecessary forproperfinancialmanagementunderthisConstructionContractinaccordancewithgenerally InvitationforBid(IFB)Package 20Rev.July2012 CONSTRUCTIONCONTRACT acceptedaccountingprinciplesandpractices.CityandCity'saccountantsduringnormalbusiness hours,mayinspect,auditandcopyContractor's records,books,estimates,takeoffs,costreports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders,vouchers,memorandaandotherdatarelatingtothisProject.Contractorshallretainthese documentsforaperiodofthree(3)yearsafterthelaterof(i)finalpaymentor(ii)finalresolution ofallContractDisputesandotherdisputes,or(iii)forsuchlongerperiodasmayberequiredby law. 18.2 CompliancewithCityRequests. Contractor'scompliancewithanyrequestbyCitypursuanttothisSection18shallbeacondition precedenttofilingormaintenanceofanylegalactionorproceedingbyContractoragainstCity andtoContractor'srighttoreceivefurtherpaymentsundertheContractDocuments.Citymany enforceContractor’sobligationtoprovideaccesstoCityofitsbusinessandotherrecordsreferred toinSection18.1forinspectionorcopyingbyissuanceofawritoraprovisionalorpermanent mandatoryinjunctionbyacourtofcompetentjurisdictionbasedonaffidavitssubmittedtosuch court,withoutthenecessityoforaltestimony. SECTION19 INDEPENDENTPARTIES. Eachpartyisactinginitsinde pendentcapacityandnotasagents,employees,partners,orjointventures’ oftheotherparty.City,itsofficersoremployeesshallhavenocontrolovertheconductofContractoror itsrespectiveagents,employees,subconsultants,o rsubcontractors,exceptashereinsetforth. SECTION20 NUISANCE. Contractorshallnotmaintain,commit,norpermitthemaintenanceorcommissionofanynuisancein connectionintheperformanceofservices underthisConstructionContract. SECTION21 PERMITSANDLICENSES. ExceptasotherwiseprovidedintheSpecialProvisionsandTechnicalSpecifications,TheContractorshall provide,procureandpayforalllicenses,permits,andfees,requiredbytheCityorothergovernment jurisdictionsoragenciesnecessarytocarryoutandcompletetheWork.Paymentofallcostsandexpenses forsuch licenses,permits,andfeesshallbeincludedinone ormoreBiditems.Noothercompensation shallbepaidtotheContractorfortheseitemsorfor delayscausedbynonCityinspectorsorconditionsset forthinthelicensesorpermitsissuedbyotheragencies. SECTION22 WAIVER. Awaiverbyeitherpartyofanybreachofanyterm,covenant,orconditioncontainedhereinshallnotbe deemedtobeawaiverofanysubsequentbreachof thesameoranyotherterm,covenant,orcondition containedherein,whetherofthesameoradifferentcharacter. SECTION23 GOVERNINGLAW. ThisConstructionContractshallbeconstruedinaccordancewithandgovernedbythelawsoftheStateof California. InvitationforBid(IFB)Package 21Rev.July2012 CONSTRUCTIONCONTRACT SECTION24 COMPLETEAGREEMENT. ThisAgreementrepresentstheentireandintegratedagreementbetweenthepartiesandsupersedesall priornegotiations,representations,andcontracts,eitherwrittenororal.ThisAgreementmaybeamended onlybyawritteninstrument,which issignedbytheparties. SECTION25 SURVIVALOFCONTRACT. TheprovisionsoftheConstructionContractwhichbytheirnaturesurviveterminationoftheConstruction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations,andCity’srighttoauditContractor’sbooksandrecords,shallremaininfullforceandeffect afterFinalCompletionoranyterminationof theConstructionContract. SECTION26 PREVAILINGWAGES. ThisProjectisnotsubjecttoprevailingwages.TheContractorisnotrequiredtopayprevailingwagesin the performance and implementation of the Project, because the City, pursuant to its authority as a charteredcity,hasadoptedResolutionNo.5981exemptingtheCityfromprevailingwages.TheCity invokes theexemptionfromthestateprevailingwagerequirementforthisProjectanddeclaresthatthe Projectisfundedone hundredpercent(100%)bytheCityofPaloAlto. Or TheContractorisrequiredtopaygeneralprevailingwagesasdefinedinSubchapter3,Title8ofthe CaliforniaCodeofRegulationsandSection16000etseq.andSection1773.1oftheCaliforniaLaborCode. PursuanttotheprovisionsofSection1773oftheLaborCod eoftheStateofCalifornia,theCityCouncilhas obtainedthegeneralprevailingrateofperdiemwagesand thegeneralrateforholidayandovertimework inthislocalityforeachcraft,classification,ortypeofworkerneededtoexecutethecontractforthis ProjectfromtheDirectoroftheDepartmentofIndustrialRelations.Copiesoftheseratesmaybeobtained atcostatthePurchasingofficeoftheCityofPaloAlto.Contractorshallprovideacopyofprevailingwage ratestoanystafforsubcontractorhired,andshallpaytheadoptedprevailingwageratesasaminimum. ContractorshallcomplywiththeprovisionsofSections1775,1776,1777.5,1810,and1813oftheLabor Code. SECTION27 NONAPPROPRIATION. ThisAgreementissubjecttothefiscalprovisionsoftheCharteroftheCityofPaloAltoandthePaloAlto MunicipalCode.ThisAgreementwillterminatewithoutanypenalty(a)attheendofanyfiscalyearinthe eventthattheCitydoesnotappropriatefundsforthe followingfiscalyearforthisevent,or(b)atanytime withinafiscalyearintheeventthatfundsareonlyappropriatedforaportionofthefiscalyearandfunds forthisConstructionContractarenolongeravailable.Thissectionshalltakeprecedenceintheeventofa conflictwithanyothercovenant,term,condition,orprovisionof thisAgreement. SECTION28 AUTHORITY. TheindividualsexecutingthisAgreementrepresentand warrantthattheyhavethelegalcapacityand authoritytodosoonbehalfoftheirrespectivelegalentities. SECTION29 ATTORNEYFEES. EachPartyshallbearitsowncosts,includingattorney’sfeesthroughthecompletionofmediation.Ifthe claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2, 22 InvitationforBid(IFB)Package Rev.July2012 CONSTRUCTIONCONTRACT theprevailingpartyinanyactionbroughttoenforcetheprovisionofthisAgreementmayrecoverits reasonablecostsandattorney’sfeesex pendedinconnectionwiththatact ion.Theprevailingpartyshallbe entitled to recover an amount equal to the fair market value of legal services provided byattorneys employedbyitaswellasanyattorne y’s’feespaidtothirdparties. SECTION30 COUNTERPARTS ThisAgreementmaybesignedinmultiplecounterparts,whichshall,whenexecutedbyalltheparties, constituteasinglebindingagreement. SECTION31 SEVERABILITY. IncaseaprovisionofthisConstructionContractisheldtobeinvalid,illegalorunenforceable,thevalidity, legalityandenforceabilityoftheremainingprovisionsshallnotbeaffected. INWITNESSWHEREOF,thepartieshave causedthisConstructionContracttobeexecutedthe dateandyearfirstabovewritten. CITYOFPALOALTO ____________________________ PurchasingManager CityManager APPROVEDASTOFORM: ___________________________ SeniorAsst.CityAttorney APPROVED: ___________________________ PublicWorksDirector CONTRACTOR GRANITECONSTRUCTIONCOMPANY By:___________________________ Name:_________________________ Title:________________________ ATTACHMENT B IFB 151905 FY14 ASPHALT PAVING PROJECT Solicited: 49 = 14 Exchanges, 35 Contractors Received: 08 Bids RGW Construction $2940103 Road Reconstructors $2695931 Granite Construction $2219994 (Low Bid) Graniterock $2665777 MCK Services $2658341 G.Bortolotto $2582681 Interstate Grading $2823093 O’Grady Paving $2670128 Awarding bid summary next page… FY 14 ASPHALT PAVING PROJECT BID SUMMARY ITEM #BASE BID DESCRIPTION QUANTITY UNITS 1 Asphalt ConcreteOverlay, 1/2" max, Type A 7,144 TON 96.00$ 685,824.00$ 104.000$ 742,976.00$ 103.00$ 735,832.00$ 101.50$ 725,116.00$ 105.00$ 750,120.00$ 100.00$ 714,400.00$ 2 PCC Base Repair 30,890 SF 12.00$ 370,680.00$ 12.00$ 370,680.00$ 12.00$ 370,680.00$ 18.00$ 556,020.00$ 18.50$ 571,465.00$ 18.00$ 556,020.00$ 3 AC Base Repair, 6" depth 373 TON 135.00$ 50,355.00$ 125.00$ 46,625.00$ 212.00$ 79,076.00$ 160.00$ 59,680.00$ 160.00$ 59,680.00$ 173.00$ 64,529.00$ 4 AC leveling Course 525 TON 135.00$ 70,875.00$ 89.00$ 46,725.00$ 120.00$ 63,000.00$ 121.50$ 63,787.50$ 135.00$ 70,875.00$ 116.00$ 60,900.00$ 5 AC Milling 499,550 SF 0.45$ 224,797.50$ 0.30$ 149,865.00$ 0.41$ 204,815.50$ 0.40$ 199,820.00$ 0.45$ 224,797.50$ 0.28$ 139,874.00$ 6 Interlayer membrane 25,109 LF 3.50$ 87,881.50$ 1.85$ 46,451.65$ 5.00$ 125,545.00$ 2.00$ 50,218.00$ 2.00$ 50,218.00$ 2.00$ 50,218.00$ 7 Crack Sealant 55,850 LF 0.75$ 41,887.50$ 0.39$ 21,781.50$ 0.50$ 27,925.00$ 0.47$ 26,249.50$ 1.00$ 55,850.00$ 0.48$ 26,808.00$ 8 Adjust utility box to grade 103 EA 280.00$ 28,840.00$ 420.00$ 43,260.00$ 600.00$ 61,800.00$ 410.00$ 42,230.00$ 350.00$ 36,050.00$ 410.00$ 42,230.00$ 9 Pothole 56 EA 250.00$ 14,000.00$ 130.00$ 7,280.00$ 1,000.00$ 56,000.00$ 145.00$ 8,120.00$ 200.00$ 11,200.00$ 77.00$ 4,312.00$ 10 Adjust manhole to grade 67 EA 380.00$ 25,460.00$ 730.00$ 48,910.00$ 700.00$ 46,900.00$ 715.00$ 47,905.00$ 400.00$ 26,800.00$ 750.00$ 50,250.00$ 11 Remove and Replace Type A Vertical Curb and Gutter, 1' pan 2,523 LF 29.00$ 73,167.00$ 30.00$ 75,690.00$ 40.00$ 100,920.00$ 40.00$ 100,920.00$ 38.00$ 95,874.00$ 44.00$ 111,012.00$ 12 Remove and Replace Type A Vertical Curb and Gutter, 1.5' pan 82 LF 45.00$ 3,690.00$ 70.00$ 5,740.00$ 50.00$ 4,100.00$ 52.00$ 4,264.00$ 52.00$ 4,264.00$ 68.00$ 5,576.00$ 13 Remove and Replace Type A Vertical Curb and Gutter, 2' pan 674 LF 45.00$ 30,330.00$ 57.00$ 38,418.00$ 40.00$ 26,960.00$ 46.00$ 31,004.00$ 46.00$ 31,004.00$ 56.00$ 37,744.00$ 14 Remove and Replace Type A Vertical Curb and Gutter, 3' pan 186 LF 48.00$ 8,928.00$ 71.00$ 13,206.00$ 50.00$ 9,300.00$ 62.00$ 11,532.00$ 62.00$ 11,532.00$ 70.00$ 13,020.00$ 15 Remove and Replace Type B Rolled Curb and Gutter, 3' pan 100 LF 49.00$ 4,900.00$ 76.00$ 7,600.00$ 75.00$ 7,500.00$ 62.00$ 6,200.00$ 62.00$ 6,200.00$ 74.00$ 7,400.00$ 16 Remove and replace concrete driveway 12,784 SF 10.00$ 127,840.00$ 9.50$ 121,448.00$ 11.00$ 140,624.00$ 15.00$ 191,760.00$ 14.50$ 185,368.00$ 14.00$ 178,976.00$ 17 Remove and replace concrete sidewalk 7,520 SF 9.00$ 67,680.00$ 8.00$ 60,160.00$ 10.00$ 75,200.00$ 10.50$ 78,960.00$ 10.00$ 75,200.00$ 9.25$ 69,560.00$ 18 4' Concrete Valley gutter 114 LF 70.00$ 7,980.00$ 112.00$ 12,768.00$ 60.00$ 6,840.00$ 95.00$ 10,830.00$ 95.00$ 10,830.00$ 110.00$ 12,540.00$ 19 Demolish and remove existing concrete 285 SF 7.00$ 1,995.00$ 8.00$ 2,280.00$ 7.00$ 1,995.00$ 5.00$ 1,425.00$ 5.00$ 1,425.00$ 8.00$ 2,280.00$ 20 City standard curb ramp, typical 27 EA 1,850.00$ 49,950.00$ 2,435.00$ 65,745.00$ 2,500.00$ 67,500.00$ 2,400.00$ 64,800.00$ 2,200.00$ 59,400.00$ 2,400.00$ 64,800.00$ 21 Install detectable warning surface 23 EA 330.00$ 7,590.00$ 525.00$ 12,075.00$ 400.00$ 9,200.00$ 350.00$ 8,050.00$ 350.00$ 8,050.00$ 500.00$ 11,500.00$ 22 Install Traffic Signal Detector Loops 1,600 SF 11.00$ 17,600.00$ 5.00$ 8,000.00$ 7.00$ 11,200.00$ 5.00$ 8,000.00$ 4.50$ 7,200.00$ 24.00$ 38,400.00$ 23 Reset Catch Basin 13 EA 1,500.00$ 19,500.00$ 1,050.00$ 13,650.00$ 1,000.00$ 13,000.00$ 1,200.00$ 15,600.00$ 1,200.00$ 15,600.00$ 1,000.00$ 13,000.00$ 24 Recycle Inert Construction Material 8,157 TON 3.00$ 24,471.00$ 2.50$ 20,392.50$ 2.00$ 16,314.00$ 2.50$ 20,392.50$ 3.00$ 24,471.00$ 5.00$ 40,785.00$ 25 Remove and replace Speed Hump/Table 8 EA 4,000.00$ 32,000.00$ 2,800.00$ 22,400.00$ 4,000.00$ 32,000.00$ 6,000.00$ 48,000.00$ 2,000.00$ 16,000.00$ 2,700.00$ 21,600.00$ 26 Install chevrons on Speed Hump/table 16 EA 250.00$ 4,000.00$ 340.00$ 5,440.00$ 350.00$ 5,600.00$ 335.00$ 5,360.00$ 335.00$ 5,360.00$ 350.00$ 5,600.00$ 27 Remove and replace blue pavement marker 33 EA 25.00$ 825.00$ 26.00$ 858.00$ 30.00$ 990.00$ 25.00$ 825.00$ 25.00$ 825.00$ 26.00$ 858.00$ 28 Thermoplastic Striping, Detail 2 1,600 LF 3.00$ 4,800.00$ 1.00$ 1,600.00$ 2.00$ 3,200.00$ 1.00$ 1,600.00$ 1.00$ 1,600.00$ 1.03$ 1,648.00$ 29 Thermoplastic Striping, Curb Paint 280 LF 3.00$ 840.00$ 4.00$ 1,120.00$ 5.00$ 1,400.00$ 4.00$ 1,120.00$ 4.00$ 1,120.00$ 4.25$ 1,190.00$ 30 Thermoplastic Striping, Detail 21 500 LF 5.00$ 2,500.00$ 1.25$ 625.00$ 2.00$ 1,000.00$ 1.20$ 600.00$ 1.20$ 600.00$ 1.25$ 625.00$ 31 Thermoplastic Striping, Detail 6 1,275 LF 5.00$ 6,375.00$ 1.05$ 1,338.75$ 2.00$ 2,550.00$ 1.00$ 1,275.00$ 1.00$ 1,275.00$ 1.00$ 1,275.00$ 32 Thermoplastic Striping, Detail 38A 200 LF 3.00$ 600.00$ 1.25$ 250.00$ 2.00$ 400.00$ 1.20$ 240.00$ 1.20$ 240.00$ 1.25$ 250.00$ 33 Thermoplastic Striping, Detail 39/39A 3,800 LF 1.50$ 5,700.00$ 0.90$ 3,420.00$ 1.00$ 3,800.00$ 0.90$ 3,420.00$ 0.90$ 3,420.00$ 1.00$ 3,800.00$ 34 4" White parking stalls 6,025 LF 2.50$ 15,062.50$ 0.70$ 4,217.50$ 1.00$ 6,025.00$ 0.70$ 4,217.50$ 0.70$ 4,217.50$ 1.00$ 6,025.00$ 35 Thermoplastic Striping, 12" yellow 400 LF 3.00$ 1,200.00$ 4.00$ 1,600.00$ 5.00$ 2,000.00$ 4.00$ 1,600.00$ 4.00$ 1,600.00$ 4.25$ 1,700.00$ 36 Thermoplastic Striping, 12" white 1,285 LF 3.00$ 3,855.00$ 4.00$ 5,140.00$ 4.00$ 5,140.00$ 4.00$ 5,140.00$ 4.00$ 5,140.00$ 4.00$ 5,140.00$ 37 Thermoplastic Legends 246 EA 50.00$ 12,300.00$ 23.00$ 5,658.00$ 25.00$ 6,150.00$ 22.50$ 5,535.00$ 22.50$ 5,535.00$ 23.00$ 5,658.00$ 38 Traffic Control 1 LS 58,000.00$ 58,000.00$ 93,000.00$ 93,000.00$ 150,000.00$ 150,000.00$ 135,000.00$ 135,000.00$ 160,000.00$ 160,000.00$ 314,000.00$ 314,000.00$ 39 Trim Street Trees (50 hours max)50 HR 224.00$ 11,200.00$ 180.00$ 9,000.00$ 200.00$ 10,000.00$ 360.00$ 18,000.00$ 180.00$ 9,000.00$ 180.00$ 9,000.00$ 40 Project Notifications 1 LS 7,000.00$ 7,000.00$ 3,100.00$ 3,100.00$ 15,000.00$ 15,000.00$ 13,000.00$ 13,000.00$ 2,500.00$ 2,500.00$ 150,000.00$ 150,000.00$ 41 Planter Area Conform 1 LS 1,000.00$ 1,000.00$ 1,500.00$ 1,500.00$ 7,000.00$ 7,000.00$ 5,000.00$ 5,000.00$ 10,000.00$ 10,000.00$ 12,000.00$ 12,000.00$ 42 Misc Transportation Improvements 1 LS 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 43 Utility Tie Out Drawings 1 LS 2,000.00$ 2,000.00$ 2,500.00$ 2,500.00$ 7,000.00$ 7,000.00$ 1,000.00$ 1,000.00$ 2,500.00$ 2,500.00$ 7,000.00$ 7,000.00$ 44 Castileja Bike Blvd Striping 1 LS 15,000.00$ 15,000.00$ 19,500.00$ 19,500.00$ 20,000.00$ 20,000.00$ 19,525.00$ 19,525.00$ 19,528.00$ 19,528.00$ 21,000.00$ 21,000.00$ 45 Encina Avenue Improvements 1 LS 5,000.00$ 5,000.00$ 6,000.00$ 6,000.00$ 2,000.00$ 2,000.00$ 5,000.00$ 5,000.00$ 2,000.00$ 2,000.00$ 5,600.00$ 5,600.00$ BASE BID TOTAL 2,285,479.00$ 2,219,993.90$ 2,593,481.50$ 2,658,341.00$ 2,695,934.00$ 2,940,103.00$ ITEM #ADD ALT # 1 SOUTHGATE PAVING QUANTITY UNITS 1 Asphalt concrete overlay (AC) 1,634 TON 96.00$ 156,864.00$ 105.00$ 171,570.00$ 110.00$ 179,740.00$ 101.50$ 165,851.00$ 105.00$ 171,570.00$ 110.00$ 179,740.00$ 2 Asphalt Concrete milling 119,400 SF 0.45$ 53,730.00$ 0.30$ 35,820.00$ 0.41$ 48,954.00$ 0.40$ 47,760.00$ 0.40$ 47,760.00$ 0.50$ 59,700.00$ 3 Interlayer membrane 5,970 LF 3.50$ 20,895.00$ 2.40$ 14,328.00$ 5.00$ 29,850.00$ 2.00$ 11,940.00$ 2.00$ 11,940.00$ 2.00$ 11,940.00$ 4 Crack Sealant 11,940 LF 0.75$ 8,955.00$ 0.39$ 4,656.60$ 1.00$ 11,940.00$ 1.00$ 11,940.00$ 0.50$ 5,970.00$ 1.00$ 11,940.00$ 5 Pothole 28 Ea 250.00$ 7,000.00$ 140.00$ 3,920.00$ 1,000.00$ 28,000.00$ 145.00$ 4,060.00$ 250.00$ 7,000.00$ 77.00$ 2,156.00$ 6 Adjust Utility Box to grade 36 EA 280.00$ 10,080.00$ 415.00$ 14,940.00$ 500.00$ 18,000.00$ 410.00$ 14,760.00$ 350.00$ 12,600.00$ 575.00$ 20,700.00$ 7 Adjust Manhole to grade 4 EA 380.00$ 1,520.00$ 725.00$ 2,900.00$ 700.00$ 2,800.00$ 715.00$ 2,860.00$ 400.00$ 1,600.00$ 750.00$ 3,000.00$ 8 Recycle inert construction material, 1,634 TON 3.00$ 4,902.00$ 3.90$ 6,372.60$ 2.00$ 3,268.00$ 2.50$ 4,085.00$ 3.00$ 4,902.00$ 5.00$ 8,170.00$ 9 Remove and replace blue pavement markers 14 EA 25.00$ 350.00$ 25.00$ 350.00$ 30.00$ 420.00$ 25.00$ 350.00$ 25.00$ 350.00$ 29.00$ 406.00$ 10 Curb Paint 140 LF 3.00$ 420.00$ 4.00$ 560.00$ 5.00$ 700.00$ 4.00$ 560.00$ 4.00$ 560.00$ 5.00$ 700.00$ 11 Thermoplastic Striping, 12” White 275 LF 3.00$ 825.00$ 4.00$ 1,100.00$ 5.00$ 1,375.00$ 4.00$ 1,100.00$ 4.00$ 1,100.00$ 5.00$ 1,375.00$ 12 Thermoplastic legend or symbol 48 EA 50.00$ 2,400.00$ 23.00$ 1,104.00$ 25.00$ 1,200.00$ 22.50$ 1,080.00$ 22.50$ 1,080.00$ 26.00$ 1,248.00$ 13 Traffic Control 1 LS 29,400.00$ 29,400.00$ 30,000.00$ 30,000.00$ 39,000.00$ 39,000.00$ 50,000.00$ 50,000.00$ 30,000.00$ 30,000.00$ 112,000.00$ 112,000.00$ 14 Tree Trimming (20 hours max)20 HRS 224.00$ 4,480.00$ 180.00$ 3,600.00$ 200.00$ 4,000.00$ 360.00$ 7,200.00$ 180.00$ 3,600.00$ 180.00$ 3,600.00$ 15 Notices 1 LS 3,500.00$ 3,500.00$ 1,300.00$ 1,300.00$ 5,000.00$ 5,000.00$ 3,500.00$ 3,500.00$ 2,000.00$ 2,000.00$ 13,000.00$ 13,000.00$ 16 Utility Tie Out Drawings 1 LS 1,000.00$ 1,000.00$ 1,200.00$ 1,200.00$ 5,000.00$ 5,000.00$ 750.00$ 750.00$ 2,000.00$ 2,000.00$ 3,600.00$ 3,600.00$ ADD ALTERNATE # 1 TOTAL 306,321.00$ 293,721.20$ 379,247.00$ 327,796.00$ 304,032.00$ 433,275.00$ ITEM #ADD ALT # 2 SANTA RITA QUANTITY UNITS 1 Asphalt concrete overlay (AC) 426 TON 96.00$ 40,896.00$ 120.000$ 51,120.00$ 100.00$ 42,600.00$ 140.00$ 59,640.00$ 140.00$ 59,640.00$ 116.00$ 49,416.00$ 2 Portland Cement Concrete (PCC) Base Repair, 6” depth 4,500 SF 12.00$ 54,000.00$ 10.00$ 45,000.00$ 14.00$ 63,000.00$ 17.00$ 76,500.00$ 18.50$ 83,250.00$ 26.00$ 117,000.00$ 3 Asphalt Concrete milling 32,000 SF 0.45$ 14,400.00$ 0.40$ 12,800.00$ 0.50$ 16,000.00$ 0.50$ 16,000.00$ 0.50$ 16,000.00$ 0.50$ 16,000.00$ 4 Interlayer membrane 1,500 LF 3.50$ 5,250.00$ 2.40$ 3,600.00$ 5.00$ 7,500.00$ 2.00$ 3,000.00$ 2.00$ 3,000.00$ 2.60$ 3,900.00$ 5 Crack Sealant 7,000 LF 0.75$ 5,250.00$ 0.39$ 2,730.00$ 1.00$ 7,000.00$ 1.00$ 7,000.00$ 1.00$ 7,000.00$ 1.00$ 7,000.00$ 6 Reset utility Box 6 EA 280.00$ 1,680.00$ 415.00$ 2,490.00$ 500.00$ 3,000.00$ 410.00$ 2,460.00$ 350.00$ 2,100.00$ 575.00$ 3,450.00$ 7 Pothole 4 EA 250.00$ 1,000.00$ 450.00$ 1,800.00$ 2,000.00$ 8,000.00$ 145.00$ 580.00$ 250.00$ 1,000.00$ 77.00$ 308.00$ 8 Reset Manhole 4 EA 380.00$ 1,520.00$ 725.00$ 2,900.00$ 700.00$ 2,800.00$ 715.00$ 2,860.00$ 500.00$ 2,000.00$ 750.00$ 3,000.00$ 9 Remove and replace Type A Curb and Gutter, 1’ pan 300 LF 29.00$ 8,700.00$ 45.00$ 13,500.00$ 40.00$ 12,000.00$ 40.00$ 12,000.00$ 38.00$ 11,400.00$ 48.00$ 14,400.00$ 10 Remove and replace concrete driveway 1,000 SF 10.00$ 10,000.00$ 14.00$ 14,000.00$ 14.00$ 14,000.00$ 15.00$ 15,000.00$ 14.50$ 14,500.00$ 14.00$ 14,000.00$ 11 Remove and replace concrete sidewalk 700 SF 9.00$ 6,300.00$ 9.25$ 6,475.00$ 14.00$ 9,800.00$ 10.50$ 7,350.00$ 10.00$ 7,000.00$ 12.00$ 8,400.00$ 12 City standard curb ramp, typical 4 EA 1,850.00$ 7,400.00$ 2,400.00$ 9,600.00$ 3,000.00$ 12,000.00$ 2,400.00$ 9,600.00$ 2,200.00$ 8,800.00$ 4,700.00$ 18,800.00$ 13 Install detectable warning surface 4 EA 330.00$ 1,320.00$ 500.00$ 2,000.00$ 500.00$ 2,000.00$ 400.00$ 1,600.00$ 400.00$ 1,600.00$ 1,400.00$ 5,600.00$ 14 Reset catch basin 2 EA 1,500.00$ 3,000.00$ 1,020.00$ 2,040.00$ 3,000.00$ 6,000.00$ 1,200.00$ 2,400.00$ 1,200.00$ 2,400.00$ 1,500.00$ 3,000.00$ 15 Recycle inert construction material 505 TON 3.00$ 1,515.00$ 4.00$ 2,020.00$ 3.00$ 1,515.00$ 2.50$ 1,262.50$ 3.00$ 1,515.00$ 5.00$ 2,525.00$ 16 Remove and replace blue pavement markers 2 EA 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 17 Thermoplastic Striping, 12” White 80 LF 3.00$ 240.00$ 4.00$ 320.00$ 5.00$ 400.00$ 4.00$ 320.00$ 4.00$ 320.00$ 5.00$ 400.00$ 18 Thermoplastic legend or symbol 16 EA 50.00$ 800.00$ 23.00$ 368.00$ 25.00$ 400.00$ 22.50$ 360.00$ 22.50$ 360.00$ 27.00$ 432.00$ 19 Traffic Control 1 LS 4,200.00$ 4,200.00$ 10,000.00$ 10,000.00$ 20,000.00$ 20,000.00$ 15,000.00$ 15,000.00$ 20,000.00$ 20,000.00$ 125,000.00$ 125,000.00$ 20 Tree Trimming 8 HR 224.00$ 1,792.00$ 180.00$ 1,440.00$ 300.00$ 2,400.00$ 360.00$ 2,880.00$ 180.00$ 1,440.00$ 180.00$ 1,440.00$ 21 Notification of business and residents 1 LS 500.00$ 500.00$ 600.00$ 600.00$ 7,000.00$ 7,000.00$ 2,000.00$ 2,000.00$ 1,000.00$ 1,000.00$ 20,000.00$ 20,000.00$ 22 Planter Area Conform 1 LS 1,000.00$ 1,000.00$ 2,000.00$ 2,000.00$ 7,000.00$ 7,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 3,800.00$ 3,800.00$ 23 Utility Tie Out Drawings 1 LS 500.00$ 500.00$ 250.00$ 250.00$ 5,000.00$ 5,000.00$ 100.00$ 100.00$ 2,000.00$ 2,000.00$ 3,600.00$ 3,600.00$ ADD ALTERNATE # 2 TOTAL 171,313.00$ 187,103.00$ 249,475.00$ 242,962.50$ 251,375.00$ 421,531.00$ ITEM #ADD ALT # 3: SENECA/MAPLE QUANTITY UNITS 1 Asphalt concrete overlay (AC) 319 TON 96.00$ 30,624.00$ 133.000$ 42,427.00$ 100.00$ 31,900.00$ 160.00$ 51,040.00$ 150.00$ 47,850.00$ 125.00$ 39,875.00$ 2 Portland Cement Concrete (PCC) Base Repair, 6” depth 3,600 SF 12.00$ 43,200.00$ 10.00$ 36,000.00$ 14.00$ 50,400.00$ 18.00$ 64,800.00$ 18.50$ 66,600.00$ 25.00$ 90,000.00$ 3 Asphalt Concrete milling 23,500 SF 0.45$ 10,575.00$ 0.55$ 12,925.00$ 0.50$ 11,750.00$ 0.65$ 15,275.00$ 0.70$ 16,450.00$ 0.60$ 14,100.00$ 4 Interlayer membrane 1,500 LF 3.50$ 5,250.00$ 2.40$ 3,600.00$ 5.00$ 7,500.00$ 4.00$ 6,000.00$ 2.00$ 3,000.00$ 3.00$ 4,500.00$ 5 Crack Sealant 3,000 LF 0.75$ 2,250.00$ 0.39$ 1,170.00$ 2.00$ 6,000.00$ 1.00$ 3,000.00$ 1.00$ 3,000.00$ 1.00$ 3,000.00$ 6 Reset utility Box 5 EA 280.00$ 1,400.00$ 415.00$ 2,075.00$ 700.00$ 3,500.00$ 410.00$ 2,050.00$ 350.00$ 1,750.00$ 575.00$ 2,875.00$ 7 Pothole 4 EA 250.00$ 1,000.00$ 450.00$ 1,800.00$ 2,000.00$ 8,000.00$ 145.00$ 580.00$ 250.00$ 1,000.00$ 77.00$ 308.00$ 8 Reset Manhole 3 EA 380.00$ 1,140.00$ 725.00$ 2,175.00$ 700.00$ 2,100.00$ 715.00$ 2,145.00$ 500.00$ 1,500.00$ 750.00$ 2,250.00$ 9 Remove and replace Type A Curb and Gutter, 1’ pan 500 LF 29.00$ 14,500.00$ 45.00$ 22,500.00$ 40.00$ 20,000.00$ 40.00$ 20,000.00$ 38.00$ 19,000.00$ 51.00$ 25,500.00$ 10 Remove and replace concrete driveway 1,200 SF 10.00$ 12,000.00$ 14.00$ 16,800.00$ 14.00$ 16,800.00$ 10.00$ 12,000.00$ 14.50$ 17,400.00$ 15.00$ 18,000.00$ 11 Remove and replace concrete sidewalk 590 SF 9.00$ 5,310.00$ 9.25$ 5,457.50$ 12.00$ 7,080.00$ 10.50$ 6,195.00$ 10.00$ 5,900.00$ 12.00$ 7,080.00$ 12 Brick Conform 2,000 SF 10.00$ 20,000.00$ 30.50$ 61,000.00$ 14.00$ 28,000.00$ 15.00$ 30,000.00$ 7.50$ 15,000.00$ 13.00$ 26,000.00$ 13 City standard curb ramp, typical 2 EA 1,850.00$ 3,700.00$ 2,450.00$ 4,900.00$ 3,000.00$ 6,000.00$ 2,400.00$ 4,800.00$ 2,200.00$ 4,400.00$ 5,000.00$ 10,000.00$ 14 Install detectable warning surface 3 EA 330.00$ 990.00$ 500.00$ 1,500.00$ 500.00$ 1,500.00$ 400.00$ 1,200.00$ 400.00$ 1,200.00$ 1,500.00$ 4,500.00$ 15 Reset catch basin 1 EA 1,500.00$ 1,500.00$ 1,020.00$ 1,020.00$ 3,000.00$ 3,000.00$ 1,200.00$ 1,200.00$ 1,200.00$ 1,200.00$ 1,500.00$ 1,500.00$ 16 Recycle inert construction material 422 TON 3.00$ 1,266.00$ 3.90$ 1,645.80$ 3.00$ 1,266.00$ 5.00$ 2,110.00$ 3.00$ 1,266.00$ 5.00$ 2,110.00$ 17 Remove and replace blue pavement markers 2 EA 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 18 Curb paint 20 LF 3.00$ 60.00$ 4.00$ 80.00$ 5.00$ 100.00$ 4.00$ 80.00$ 4.00$ 80.00$ 5.00$ 100.00$ 19 Thermoplastic Striping, 12” White 60 LF 3.00$ 180.00$ 4.00$ 240.00$ 5.00$ 300.00$ 4.00$ 240.00$ 4.00$ 240.00$ 5.00$ 300.00$ 20 Thermoplastic legend or symbol 12 EA 50.00$ 600.00$ 23.00$ 276.00$ 30.00$ 360.00$ 22.50$ 270.00$ 22.50$ 270.00$ 27.00$ 324.00$ 21 Traffic Control 1 LS 4,200.00$ 4,200.00$ 10,000.00$ 10,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 25,000.00$ 25,000.00$ 125,000.00$ 125,000.00$ 22 Tree Trimming 8 HR 224.00$ 1,792.00$ 180.00$ 1,440.00$ 300.00$ 2,400.00$ 360.00$ 2,880.00$ 180.00$ 1,440.00$ 180.00$ 1,440.00$ 23 Notification of business and residents 1 LS 500.00$ 500.00$ 1,100.00$ 1,100.00$ 7,000.00$ 7,000.00$ 2,500.00$ 2,500.00$ 1,000.00$ 1,000.00$ 31,000.00$ 31,000.00$ 24 Planter Area Conform 1 LS 1,000.00$ 1,000.00$ 2,000.00$ 2,000.00$ 5,000.00$ 5,000.00$ 3,500.00$ 3,500.00$ 5,000.00$ 5,000.00$ 5,800.00$ 5,800.00$ 25 Utility Tie Out Drawings 1 LS 500.00$ 500.00$ 300.00$ 300.00$ 5,000.00$ 5,000.00$ 100.00$ 100.00$ 1,000.00$ 1,000.00$ 18,000.00$ 18,000.00$ ADD ALTERNATE # 3 TOTAL 163,587.00$ 232,481.30$ 240,016.00$ 247,015.00$ 240,596.00$ 433,622.00$ Base Bid Total 2,285,479.00$ Base Bid Total 2,219,993.90$ Base Bid Total 2,593,481.50$ Base Bid Total 2,658,341.00$ Base Bid Total 2,695,934.00$ Base Bid Total 2,940,103.00$ Add Alt #1 306,321.00$ Add Alt #1 293,721.20$ Add Alt #1 379,247.00$ Add Alt #1 327,796.00$ Add Alt #1 304,032.00$ Add Alt #1 433,275.00$ Add Alt #2 171,313.00$ Add Alt #2 187,103.00$ Add Alt #2 249,475.00$ Add Alt #2 242,962.50$ Add Alt #2 251,375.00$ Add Alt #2 421,531.00$ Add Alt #3 163,587.00$ Add Alt #3 232,481.30$ Add Alt #3 240,016.00$ Add Alt #3 247,015.00$ Add Alt #3 240,596.00$ Add Alt #3 433,622.00$ Grand Total: 2,926,700.00$ Grand Total: 2,933,299.40$ Grand Total: 3,462,219.50$ Grand Total: 3,476,114.50$ Grand Total: 3,491,937.00$ Grand Total: 4,228,531.00$ ROAD RECONSTRUCTORS RGW GRANITE CONSTRUCTION G. BORTOLOTTO & CO, INC.MCK SERVICES ROAD RECONSTRUCTORS RGW GRANITE CONSTRUCTION G. BORTOLOTTO & CO, INC.MCK SERVICES ROAD RECONSTRUCTORS RGW GRANITE CONSTRUCTION MCK SERVICESG. BORTOLOTTO & CO, INC. GRANITE CONSTRUCTION G. BORTOLOTTO & CO, INC.MCK SERVICES ROAD RECONSTRUCTORS RGW ENGINEER'S ESTIMATE ENGINEER'S ESTIMATE ENGINEER'S ESTIMATE GRANITE CONSTRUCTION G. BORTOLOTTO & CO, INC.MCK SERVICES ENGINEER'S ESTIMATE ENGINEER'S ESTIMATE ROAD RECONSTRUCTORS RGW FY 14 ASPHALT PAVING PROJECT BID SUMMARY ITEM #BASE BID DESCRIPTION QUANTITY UNITS 1 Asphalt ConcreteOverlay, 1/2" max, Type A 7,144 TON 2 PCC Base Repair 30,890 SF 3 AC Base Repair, 6" depth 373 TON 4 AC leveling Course 525 TON 5 AC Milling 499,550 SF 6 Interlayer membrane 25,109 LF 7 Crack Sealant 55,850 LF 8 Adjust utility box to grade 103 EA 9 Pothole 56 EA 10 Adjust manhole to grade 67 EA 11 Remove and Replace Type A Vertical Curb and Gutter, 1' pan 2,523 LF 12 Remove and Replace Type A Vertical Curb and Gutter, 1.5' pan 82 LF 13 Remove and Replace Type A Vertical Curb and Gutter, 2' pan 674 LF 14 Remove and Replace Type A Vertical Curb and Gutter, 3' pan 186 LF 15 Remove and Replace Type B Rolled Curb and Gutter, 3' pan 100 LF 16 Remove and replace concrete driveway 12,784 SF 17 Remove and replace concrete sidewalk 7,520 SF 18 4' Concrete Valley gutter 114 LF 19 Demolish and remove existing concrete 285 SF 20 City standard curb ramp, typical 27 EA 21 Install detectable warning surface 23 EA 22 Install Traffic Signal Detector Loops 1,600 SF 23 Reset Catch Basin 13 EA 24 Recycle Inert Construction Material 8,157 TON 25 Remove and replace Speed Hump/Table 8 EA 26 Install chevrons on Speed Hump/table 16 EA 27 Remove and replace blue pavement marker 33 EA 28 Thermoplastic Striping, Detail 2 1,600 LF 29 Thermoplastic Striping, Curb Paint 280 LF 30 Thermoplastic Striping, Detail 21 500 LF 31 Thermoplastic Striping, Detail 6 1,275 LF 32 Thermoplastic Striping, Detail 38A 200 LF 33 Thermoplastic Striping, Detail 39/39A 3,800 LF 34 4" White parking stalls 6,025 LF 35 Thermoplastic Striping, 12" yellow 400 LF 36 Thermoplastic Striping, 12" white 1,285 LF 37 Thermoplastic Legends 246 EA 38 Traffic Control 1 LS 39 Trim Street Trees (50 hours max)50 HR 40 Project Notifications 1 LS 41 Planter Area Conform 1 LS 42 Misc Transportation Improvements 1 LS 43 Utility Tie Out Drawings 1 LS 44 Castileja Bike Blvd Striping 1 LS 45 Encina Avenue Improvements 1 LS BASE BID TOTAL ITEM #ADD ALT # 1 SOUTHGATE PAVING QUANTITY UNITS 1 Asphalt concrete overlay (AC) 1,634 TON 2 Asphalt Concrete milling 119,400 SF 3 Interlayer membrane 5,970 LF 4 Crack Sealant 11,940 LF 5 Pothole 28 Ea 6 Adjust Utility Box to grade 36 EA 7 Adjust Manhole to grade 4 EA 8 Recycle inert construction material, 1,634 TON 9 Remove and replace blue pavement markers 14 EA 10 Curb Paint 140 LF 11 Thermoplastic Striping, 12” White 275 LF 12 Thermoplastic legend or symbol 48 EA 13 Traffic Control 1 LS 14 Tree Trimming (20 hours max)20 HRS 15 Notices 1 LS 16 Utility Tie Out Drawings 1 LS ADD ALTERNATE # 1 TOTAL ITEM #ADD ALT # 2 SANTA RITA QUANTITY UNITS 1 Asphalt concrete overlay (AC) 426 TON 2 Portland Cement Concrete (PCC) Base Repair, 6” depth 4,500 SF 3 Asphalt Concrete milling 32,000 SF 4 Interlayer membrane 1,500 LF 5 Crack Sealant 7,000 LF 6 Reset utility Box 6 EA 7 Pothole 4 EA 8 Reset Manhole 4 EA 9 Remove and replace Type A Curb and Gutter, 1’ pan 300 LF 10 Remove and replace concrete driveway 1,000 SF 11 Remove and replace concrete sidewalk 700 SF 12 City standard curb ramp, typical 4 EA 13 Install detectable warning surface 4 EA 14 Reset catch basin 2 EA 15 Recycle inert construction material 505 TON 16 Remove and replace blue pavement markers 2 EA 17 Thermoplastic Striping, 12” White 80 LF 18 Thermoplastic legend or symbol 16 EA 19 Traffic Control 1 LS 20 Tree Trimming 8 HR 21 Notification of business and residents 1 LS 22 Planter Area Conform 1 LS 23 Utility Tie Out Drawings 1 LS ADD ALTERNATE # 2 TOTAL ITEM #ADD ALT # 3: SENECA/MAPLE QUANTITY UNITS 1 Asphalt concrete overlay (AC) 319 TON 2 Portland Cement Concrete (PCC) Base Repair, 6” depth 3,600 SF 3 Asphalt Concrete milling 23,500 SF 4 Interlayer membrane 1,500 LF 5 Crack Sealant 3,000 LF 6 Reset utility Box 5 EA 7 Pothole 4 EA 8 Reset Manhole 3 EA 9 Remove and replace Type A Curb and Gutter, 1’ pan 500 LF 10 Remove and replace concrete driveway 1,200 SF 11 Remove and replace concrete sidewalk 590 SF 12 Brick Conform 2,000 SF 13 City standard curb ramp, typical 2 EA 14 Install detectable warning surface 3 EA 15 Reset catch basin 1 EA 16 Recycle inert construction material 422 TON 17 Remove and replace blue pavement markers 2 EA 18 Curb paint 20 LF 19 Thermoplastic Striping, 12” White 60 LF 20 Thermoplastic legend or symbol 12 EA 21 Traffic Control 1 LS 22 Tree Trimming 8 HR 23 Notification of business and residents 1 LS 24 Planter Area Conform 1 LS 25 Utility Tie Out Drawings 1 LS ADD ALTERNATE # 3 TOTAL 105.00$ 750,120.00$ 105.00$ 750,120.00$ 99.00$ 707,256.00$ 18.00$ 556,020.00$ 15.00$ 463,350.00$ 20.00$ 617,800.00$ 145.00$ 54,085.00$ 200.00$ 74,600.00$ 170.00$ 63,410.00$ 125.00$ 65,625.00$ 150.00$ 78,750.00$ 115.00$ 60,375.00$ 0.30$ 149,865.00$ 0.50$ 249,775.00$ 0.33$ 164,851.50$ 1.70$ 42,685.30$ 2.50$ 62,772.50$ 3.00$ 75,327.00$ 0.39$ 21,781.50$ 0.40$ 22,340.00$ 0.50$ 27,925.00$ 410.00$ 42,230.00$ 400.00$ 41,200.00$ 350.00$ 36,050.00$ 245.00$ 13,720.00$ 250.00$ 14,000.00$ 500.00$ 28,000.00$ 715.00$ 47,905.00$ 700.00$ 46,900.00$ 400.00$ 26,800.00$ 44.00$ 111,012.00$ 48.00$ 121,104.00$ 47.00$ 118,581.00$ 67.75$ 5,555.50$ 31.00$ 2,542.00$ 70.00$ 5,740.00$ 55.45$ 37,373.30$ 56.00$ 37,744.00$ 58.00$ 39,092.00$ 69.65$ 12,954.90$ 73.00$ 13,578.00$ 73.00$ 13,578.00$ 74.00$ 7,400.00$ 70.00$ 7,000.00$ 78.00$ 7,800.00$ 13.72$ 175,396.48$ 18.00$ 230,112.00$ 15.00$ 191,760.00$ 9.00$ 67,680.00$ 13.00$ 97,760.00$ 10.00$ 75,200.00$ 109.00$ 12,426.00$ 118.00$ 13,452.00$ 116.00$ 13,224.00$ 7.50$ 2,137.50$ 6.00$ 1,710.00$ 8.00$ 2,280.00$ 2,386.00$ 64,422.00$ 3,100.00$ 83,700.00$ 2,500.00$ 67,500.00$ 500.00$ 11,500.00$ 550.00$ 12,650.00$ 550.00$ 12,650.00$ 5.00$ 8,000.00$ 5.00$ 8,000.00$ 20.00$ 32,000.00$ 1,000.00$ 13,000.00$ 2,200.00$ 28,600.00$ 1,200.00$ 15,600.00$ 11.00$ 89,727.00$ 6.50$ 53,020.50$ 3.00$ 24,471.00$ 4,568.00$ 36,544.00$ 3,800.00$ 30,400.00$ 5,000.00$ 40,000.00$ 335.00$ 5,360.00$ 350.00$ 5,600.00$ 350.00$ 5,600.00$ 25.00$ 825.00$ 25.00$ 825.00$ 30.00$ 990.00$ 1.00$ 1,600.00$ 1.10$ 1,760.00$ 1.10$ 1,760.00$ 4.00$ 1,120.00$ 4.40$ 1,232.00$ 5.00$ 1,400.00$ 1.20$ 600.00$ 1.30$ 650.00$ 1.30$ 650.00$ 1.00$ 1,275.00$ 1.10$ 1,402.50$ 1.10$ 1,402.50$ 1.20$ 240.00$ 1.30$ 260.00$ 1.30$ 260.00$ 0.90$ 3,420.00$ 1.00$ 3,800.00$ 1.00$ 3,800.00$ 0.70$ 4,217.50$ 0.80$ 4,820.00$ 0.80$ 4,820.00$ 4.00$ 1,600.00$ 4.40$ 1,760.00$ 5.00$ 2,000.00$ 4.00$ 5,140.00$ 4.40$ 5,654.00$ 5.00$ 6,425.00$ 22.50$ 5,535.00$ 25.00$ 6,150.00$ 25.00$ 6,150.00$ 143,154.00$ 143,154.00$ 116,000.00$ 116,000.00$ 80,000.00$ 80,000.00$ 180.00$ 9,000.00$ 500.00$ 25,000.00$ 200.00$ 10,000.00$ 10,500.00$ 10,500.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 500.00$ 500.00$ 20,000.00$ 20,000.00$ 100.00$ 100.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 1,000.00$ 1,000.00$ 2,000.00$ 2,000.00$ 10,000.00$ 10,000.00$ 19,525.00$ 19,525.00$ 21,000.00$ 21,000.00$ 21,000.00$ 21,000.00$ 2,000.00$ 2,000.00$ 5,000.00$ 5,000.00$ 2,500.00$ 2,500.00$ 2,665,776.98$ 2,823,093.50$ 2,681,128.00$ 108.00$ 176,472.00$ 105.00$ 171,570.00$ 99.00$ 161,766.00$ 0.40$ 47,760.00$ 0.65$ 77,610.00$ 0.33$ 39,402.00$ 2.10$ 12,537.00$ 2.50$ 14,925.00$ 3.00$ 17,910.00$ 0.39$ 4,656.60$ 0.45$ 5,373.00$ 0.50$ 5,970.00$ 245.00$ 6,860.00$ 350.00$ 9,800.00$ 500.00$ 14,000.00$ 410.00$ 14,760.00$ 500.00$ 18,000.00$ 350.00$ 12,600.00$ 715.00$ 2,860.00$ 800.00$ 3,200.00$ 400.00$ 1,600.00$ 12.50$ 20,425.00$ 6.50$ 10,621.00$ 3.00$ 4,902.00$ 25.00$ 350.00$ 25.00$ 350.00$ 30.00$ 420.00$ 4.00$ 560.00$ 4.40$ 616.00$ 5.00$ 700.00$ 4.00$ 1,100.00$ 4.40$ 1,210.00$ 5.00$ 1,375.00$ 22.50$ 1,080.00$ 25.00$ 1,200.00$ 25.00$ 1,200.00$ 16,400.00$ 16,400.00$ 15,000.00$ 15,000.00$ 6,000.00$ 6,000.00$ 180.00$ 3,600.00$ 500.00$ 10,000.00$ 200.00$ 4,000.00$ 7,900.00$ 7,900.00$ 1,000.00$ 1,000.00$ 2,000.00$ 2,000.00$ 750.00$ 750.00$ 1,500.00$ 1,500.00$ 2,000.00$ 2,000.00$ 318,070.60$ 341,975.00$ 275,845.00$ 135.00$ 57,510.00$ 125.00$ 53,250.00$ 99.00$ 42,174.00$ 18.22$ 81,990.00$ 15.00$ 67,500.00$ 20.00$ 90,000.00$ 0.45$ 14,400.00$ 0.80$ 25,600.00$ 0.33$ 10,560.00$ 2.83$ 4,245.00$ 2.50$ 3,750.00$ 3.00$ 4,500.00$ 0.39$ 2,730.00$ 0.45$ 3,150.00$ 0.50$ 3,500.00$ 410.00$ 2,460.00$ 500.00$ 3,000.00$ 350.00$ 2,100.00$ 218.00$ 872.00$ 350.00$ 1,400.00$ 500.00$ 2,000.00$ 715.00$ 2,860.00$ 800.00$ 3,200.00$ 400.00$ 1,600.00$ 44.67$ 13,401.00$ 48.00$ 14,400.00$ 48.00$ 14,400.00$ 13.93$ 13,930.00$ 19.00$ 19,000.00$ 15.00$ 15,000.00$ 9.20$ 6,440.00$ 13.00$ 9,100.00$ 10.00$ 7,000.00$ 2,386.00$ 9,544.00$ 3,100.00$ 12,400.00$ 2,500.00$ 10,000.00$ 500.00$ 2,000.00$ 550.00$ 2,200.00$ 550.00$ 2,200.00$ 1,000.00$ 2,000.00$ 2,200.00$ 4,400.00$ 1,200.00$ 2,400.00$ 9.00$ 4,545.00$ 6.50$ 3,282.50$ 3.00$ 1,515.00$ 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 4.00$ 320.00$ 4.40$ 352.00$ 5.00$ 400.00$ 22.50$ 360.00$ 25.00$ 400.00$ 5.00$ 80.00$ 18,176.00$ 18,176.00$ 12,000.00$ 12,000.00$ 6,000.00$ 6,000.00$ 180.00$ 1,440.00$ 500.00$ 4,000.00$ 200.00$ 1,600.00$ 5,500.00$ 5,500.00$ 500.00$ 500.00$ 2,000.00$ 2,000.00$ 1,535.00$ 1,535.00$ 10,000.00$ 10,000.00$ 100.00$ 100.00$ 100.00$ 100.00$ 250.00$ 250.00$ 2,000.00$ 2,000.00$ 246,408.00$ 253,184.50$ 221,189.00$ 151.00$ 48,169.00$ 140.00$ 44,660.00$ 99.00$ 31,581.00$ 17.95$ 64,620.00$ 15.00$ 54,000.00$ 20.00$ 72,000.00$ 0.54$ 12,690.00$ 0.80$ 18,800.00$ 0.33$ 7,755.00$ 2.83$ 4,245.00$ 2.50$ 3,750.00$ 3.00$ 4,500.00$ 0.39$ 1,170.00$ 0.45$ 1,350.00$ 0.50$ 1,500.00$ 410.00$ 2,050.00$ 500.00$ 2,500.00$ 350.00$ 1,750.00$ 225.00$ 900.00$ 350.00$ 1,400.00$ 500.00$ 2,000.00$ 715.00$ 2,145.00$ 800.00$ 2,400.00$ 400.00$ 1,200.00$ 44.00$ 22,000.00$ 47.00$ 23,500.00$ 48.00$ 24,000.00$ 13.72$ 16,464.00$ 19.00$ 22,800.00$ 15.00$ 18,000.00$ 9.00$ 5,310.00$ 13.00$ 7,670.00$ 10.00$ 5,900.00$ 30.00$ 60,000.00$ 23.00$ 46,000.00$ 33.00$ 66,000.00$ 2,386.00$ 4,772.00$ 3,100.00$ 6,200.00$ 2,500.00$ 5,000.00$ 500.00$ 1,500.00$ 550.00$ 1,650.00$ 550.00$ 1,650.00$ 1,000.00$ 1,000.00$ 2,200.00$ 2,200.00$ 1,200.00$ 1,200.00$ 8.00$ 3,376.00$ 6.00$ 2,532.00$ 3.00$ 1,266.00$ 25.00$ 50.00$ 25.00$ 50.00$ 30.00$ 60.00$ 4.00$ 80.00$ 4.40$ 88.00$ 5.00$ 100.00$ 4.00$ 240.00$ 4.40$ 264.00$ 5.00$ 300.00$ 22.50$ 270.00$ 25.00$ 300.00$ 25.00$ 300.00$ 25,573.00$ 25,573.00$ 15,000.00$ 15,000.00$ 6,000.00$ 6,000.00$ 180.00$ 1,440.00$ 500.00$ 4,000.00$ 200.00$ 1,600.00$ 5,500.00$ 5,500.00$ 500.00$ 500.00$ 2,000.00$ 2,000.00$ 1,535.00$ 1,535.00$ 5,000.00$ 5,000.00$ 100.00$ 100.00$ 100.00$ 100.00$ 250.00$ 250.00$ 2,000.00$ 2,000.00$ 285,199.00$ 266,864.00$ 257,762.00$ Base Bid Total 2,665,776.98$ Base Bid Total 2,823,093.50$ Base Bid Total 2,681,128.00$ Add Alt #1 318,070.60$ Add Alt #1 341,975.00$ Add Alt #1 275,845.00$ Add Alt #2 246,408.00$ Add Alt #2 253,184.50$ Add Alt #2 221,189.00$ Add Alt #3 285,199.00$ Add Alt #3 266,864.00$ Add Alt #3 257,762.00$ Grand Total: 3,515,454.58$ Grand Total: 3,685,117.00$ Grand Total: 3,435,924.00$ OGRADY OGRADY PAVEX INTERSTATE OGRADY PAVEX INTERSTATE OGRADY PAVEX INTERSTATE OGRADY PAVEX INTERSTATE PAVEX INTERSTATE ATTACHMENT C STREET FROM TO 1 Forest Avenue Ramona Street Bryant Street 2 Forest Avenue Bryant Street Gilman Street 3 Forest Avenue Gilman Street Waverely Street 4 Forest Avenue Waverely Street Cowper Street 5 Forest Avenue Cowper Street Webster Street 6 Forest Avenue Webster Street Middlefield Road 7 Forest Avenue Middlefield Road Guinda Street 8 Forest Avenue Guinda Street Seneca Street 9 Forest Avenue Seneca Street Hale Avenue 10 Forest Avenue Hale Avenue Forest Court 11 Forest Avenue Forest Court Lincoln Avenue 12 Forest Court Forest Avenue End 13 Hamilton Avenue Lincoln Avenue Crescent Drive 14 Hamilton Avenue Crescent Drive Center Drive 15 High Street Hamilton Avenue Forest Avenue 16 High Street Forest Avenue Homer Avenue 17 High Street Homer Avenue Channing Avenue 18 E. Meadow Drive Waverley Street Cowper Street 19 E. Meadow Drive Cowper Street Middlefield Road 20 Old Trace Road Arastradero Road Mockingbird lane 21 Old Trace Road Mockingbird lane Old Trace Court 22 Old Trace Road Old Trace Court End 23 Old Trace Court Old Trace Road End 24 Palo Alto Avenue Alma Street Emerson Street 25 Palo Alto Avenue Emerson Street Bryant Street 26 Palo Alto Avenue Fulton Street Everett Avenue 27 Palo Alto Avenue Everett Avenue Guinda Street 28 Robb Road Manuela Avenue End 29 Pepper Avenue El Camino Real Ash Street 30 Castilleja Avenue Churchill Avenue Manzanita Avenue 31 Castilleja Avenue Manzanita Avenue Miramonte Avenue 32 Castilleja Avenue Miramonte Avenue Seqouia Avenue 33 Castilleja Avenue Seqouia Avenue Mariposa Avenue 34 Castilleja Avenue Mariposa Avenue Park Blvd. 35 Escobita Avenue Miramonte Avenue Seqouia Avenue 36 Madrono Avenue Miramonte Avenue Seqouia Avenue 37 Miramonte Street Portola Avenue Madrono Avenue 38 Miramonte Street Madrono Avenue Escobita Avenue 39 Miramonte Street Escobita Avenue Castilleja Avenue 40 Portola Avenue Miramonte Avenue Seqouia Avenue 41 Sequoia Avenue Portola Avenue Madrono Avenue 42 Sequoia Avenue Madrono Avenue Escobita Avenue 43 Sequoia Avenue Escobita Avenue Castilleja Avenue 44 Santa Rita Avenue Bryant Street Waverely Street 45 Santa Rita Avenue Waverly Street Cowper Street FY14 Asphalt Paving Project Street List City of Palo Alto (ID # 3981) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Information Security Risk Assessment Title: Approval of Professional Services Contract with Coalfire Systems, Inc. for Information Security Risk Assessment in the Amount of $200,448 From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve the award of a Professional Services contract in an amount not to exceed $200,448 to Coalfire Systems, Inc. (Coalfire) for Information Security Risk Assessment (ISRA) services. Executive Summary The City of Palo Alto seeks the services of Coalfire to conduct comprehensive risks assessments on critical IT infrastructure and services, and to provide detailed reports and remediation guidance that is prioritized based on the City’s ability and resources available to address security gaps and vulnerabilities. Background Under the leadership of the Chief Information Officer (CIO), the City of Palo Alto is executing its 3-year technology strategy (July 2012 – June 2015). A priority and core component of the IT strategy is to ensure that the City addresses gaps in information security and ensures a long-term, appropriately secure information environment. In addition to hiring its first-ever information security manager, the City is pursuing several essential projects to meet information security needs. The work proposed in this CMR is a major step towards executing the 3-year technology strategy and further protecting the City and its information assets. The Information Security Steering Committee (ISSC) of the City of Palo Alto has approved an initiative to implement ISO 27001 (Information Security Management City of Palo Alto Page 2 System) framework at the City, which requires a formal ISRA to be conducted, in conjunction with ISO 31000 (Risk Management Principles and Guidelines) and ISO 31010 (Risk Management and Risk Assessment Techniques). Discussion The City faces the challenge of ensuring it has correctly evaluated risks to information and systems supporting its business and establishing controls to protect against dynamic cyber threats while also ensuring the smooth flow of ongoing business operations. In addition, it is the City’s intention to comply with security and regulatory compliance requirements. The information security risk assessment will support the City to comply with security and regulatory compliance requirements. Upon the completion of the RFP process, the City has selected Coalfire Systems, Inc. to conduct the ISRA. Coalfire understands the City’s needs and proposed a 12 week project plan. As North America’s largest, independent IT Security Governance, Risk and Compliance (GRC) firm, Coalfire’s methodology has been validated by more than 1,500 projects completed annually nationwide and abroad, focused exclusively on IT audit ISRA. Summary of City Bid Process Proposed Duration of Project To be completed by June 30, 2014 Number of Solicitations Emailed 10 Total Days to Respond 20 Business Days Number of Responses Received: 5 Number of Vendors Interviewed: 3 Vendor Selected Coalfire Systems, Inc. Reference Please see attached file for more information (ISRA CMR Reference.pdf) Resource Impact This project will be funded in the Information Technology Disaster Recovery capital City of Palo Alto Page 3 improvement project (CIP TE-01012). No additional resources are required at this time to support the Information Security Risk Assessment. Environmental Review Approval of these contracts do not constitute a project under the California Environmental Quality Act (CEQA); therefore, no Environmental Assessment is required. Attachments:  ISRA CMR Reference (PDF)  S14150215 - Coalfire Systems Inc Signed Final (PDF) Reference: Information Security Risk Assessment Supplier Inputs Process Outputs Cycle Time  Coalfire System, Inc. As North America’s largest, independent IT Security Governance, Risk and Compliance (GRC) firm, Coalfire’s methodology has been validated by more than 1,500 projects completed annually nationwide and abroad. Since 2001, the company have been a vendor neutral and platform agnostic firm focused exclusively on IT audit and compliance to the exclusion of other IT security product related services.  Coalfire, execute more than 1,000 projects annually.  Coalfire has approximately 150 delivery resources; two (2) dozen in California.  Coalfire is a Thought leadership in new and emerging technologies and implications on security (mobile devices, virtualization, encryption strategies, etc.)  Coalfire’s unique perspective on the cyber- security threat and risk landscape; supporting end-clients in fortifying, while contributing to national/federal mitigation and risk management strategies.  Coalfire is AICPA Certified and Approved Audit and Assertion firm. Information Security Risk Assessment (ISRA) will be conducted on the following major area:  IT Infrastructure  Tier 1 IT Services that have direct impact on Public Safety and/or Security  Tier 2 IT Services that have indirect impact on Public Safety and/or Security Tools and Techniques  Risk Management Process using ISO/IEC 27001, 27005, 31000 and 31010 standards  Risk Assessment Steps using NIST 800-30 methods  COBIT - Framework for IT management and governance; created by ISACA  PCI DSS - Framework for the protection of cardholder data for entities that store, process or transmit cardholder data  NeXpose - Network discovery and vulnerability assessment tool by Rapid7  Acunetix - Web Application Vulnerability assessment tool  Metasploit - Open Source exploitation framework to compile and execute exploit code  NMAP - Open source utility for network exploration and security auditing  NetSparker - Web application vulnerability assessment tool  BurpSuite Pro - Web Application proxy and exploitation utility  Tenable Nessus - Network discovery and vulnerability assessment tool  AppDetective PRO - Top rated database scanning tool  WAP Testing - Kismet, KisMAC, WEPcrack, Network Stumbler Example of Project Activities  External and Internal Network Vulnerability Assessment  External and Internal Penetration Testing  Secure Internet Gateway Assessment  Wireless Network Risk Assessment  Data Privacy Risk Assessment  Server Hardening Assessment  Web Application Services Risk Assessment  Network Architecture Review  IT Policies, Standards and Guideline Assessment  DNS Server Risk Assessment  Network Access Control Assessment  Application and Services Access Control Assessment  Database Access Control Assessment  Database Vulnerability/Security Assessment  Servers Security Assessment  Datacenter Physical Security Assessment  War Dialing  Social Engineering  Risk assessment reports will include the systematic articulation of the magnitude of risks (risk analysis) and the process of comparing the estimated risks against risk criteria to determine the significance of the risks (risk evaluation).  The risk assessment report will include guided remediation around which risk must be managed along with risk treatment plan and appropriate controls/countermeasures to manage the risk  The risk treatment plan should include minimum three (3) different solution to manage each risk, including i) cost of each solution ii) advantages and disadvantages of each solution iii) speed/flexibility of implementation/integration with the City’s environment.  Month 1, Nov 2013, Completion of the Infrastructure Assessment  Month 2, Dec 2013, Completion of the Tier 1 Services Assessment  Month 3, Jan 2014, Completion of the Tier 2 Services Assessment  Month 4, Feb 2014, Delivery of the Reports and Guided Remediation  Month 5 to 8, Mar to Jun 2014, the City’s executive management will develop a strategy to implement the guided remediation. CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY November 12, 2013 The Honorable City Council Palo Alto, California Second Reading of Ordinance of the Council of the City of Palo Alto Adding Chapter 9.64 (Regulation of Community Facilities) of Title 9 (Public Peace, Morals, and Safety) to include Section 9.64.010 – Use of Community Facilities Prohibited from 10:30pm to Sunrise (First Reading; September 30, 2013, PASSED: 5-1-1 Holman no, Berman abstaining, Kniss, Price absent) Staff Recommendation On September 30, 2013, the Council adopted the attached Community Facilities Closure Ordinance (Ordinance No. 5209), adding Section 9.61.020 to the Palo Alto Municipal Code – Overnight Use of Community Facilities Prohibited. A final version of the Ordinance No. 5215 is now before Council on second reading. Note that a minor amendment to the Ordinance has been to correct the section citation to the Palo Alto Municipal Code – 9.64.010. The final ordinance is attached hereto as Attachment A. ATTACHMENTS:  Attachment A - Community Facilities Closure Ordinance (PDF) Department Head: City Attorney, Page 2 1 ORDINANCE NO. 5215 Ordinance of the Council of the City of Palo Alto Adding Chapter 9.64 (Regulation of Community Facilities) of Title 9 (Public Peace, Morals, and Safety) to include Section 9.64.010 – Use of Community Facilities Prohibited from 10:30pm to Sunrise The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) The City Council hereby updates Title 9 of the Palo Alto Municipal Code to provide for overnight closure of public libraries, community centers, theaters, interpretive buildings, the Art Center and Civic Center Plaza is essential to maintain and promote the public health, safety and welfare, to provide for the continued effective management of public property, and to provide for the continued enjoyment and accessibility of public property by all Palo Alto residents and the public at large; and (b) The overnight use of public libraries, community centers, theaters, interpretive buildings, the Art Center and Civic Center Plaza causes the City to incur increased costs for policing, maintenance, sanitation, garbage removal, animal control, and other problems which may arise; and (c) The overnight use of public libraries, community centers, theaters, interpretive buildings, the Art Center and Civic Center Plaza hinders public access to the services provided at those facilities; and (d) Public libraries, community centers, theaters, interpretive buildings, the Art Center and Civic Center Plaza are not intended for overnight use, during hours when the grounds are unstaffed and unmonitored, which creates a risk to the health, safety, and welfare of those persons on the grounds, as well as the public at large. SECTION 2. Section 9.64.010 (Use of Community Facilities Prohibited from 10:30pm to Sunrise) of Chapter 9.64 (Regulation of Community Facilities) of Title 9 (Public Peace, Morals, Safety) of the Palo Alto Municipal Code is hereby added to read as follows: “9.64.010 Use of Community Facilities Prohibited from 10:30pm to Sunrise No person shall use, remain in or enter any Community Facilities between 10:30pm and sunrise, other than a duly authorized city employee or persons participating in city-sponsored activities or other activities for which the city has provided written permission to utilize the grounds beyond the closing time, provided however that 2 the additional closure of specific facilities during portions of the day or the year may be specified by the City Manager or his or her designee. For the purposes of this chapter, “Community Facilities” means all buildings and premises of City of Palo Alto Libraries, the Cubberley Community Center, Lucie Stern Community Center, Children's Theatre, Community Theatre, Junior Museum & Zoo, Mitchell Park Community Center and Field House, Art Center, Peers Park Field House, Lucy Evans Baylands Nature Interpretive Center, Pearson Arastradero Preserve Gateway Center, Foothills Park Interpretive Center, and Civic Center Plaza, (as defined in Municipal Code Section 9.60.020(b)), but not any land dedicated for park use.” SECTION 3. This ordinance shall be effective on the thirty-first day after the date of its adoption. Upon the effective date of this ordinance, the prior version of the Community Facilities Closure Ordinance (Ordinance No. 5209), adding Section 9.61.020 to the Palo Alto Municipal Code – Overnight Use of Community Facilities Prohibited, is hereby repealed and shall be of no further force and effect. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Services City of Palo Alto (ID # 4240) City Council Staff Report Report Type: Action Items Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Public Art in Private Development Title: Policy and Services Committee Recommendation of Adoption of an Ordinance to Add Chapter 16.61 to the Municipal Code to Establish a Public Art Program for Private Development; and Policy Direction to Initiate a Public Art Master Planning Process From: City Manager Lead Department: Community Services Recommendation The Policy and Services Committee and staff recommend that Council adopt an ordinance amending the Palo Alto Municipal Code to add Chapter 16.61 (“Public Art for Private Developments”) for the purpose of establishing a public art requirement for new commercial and residential developments at the level of 1% of construction valuation. The Committee further recommends providing policy direction that staff should engage the community in a Public Art Master Planning Process, and should return to Council at a later date with a staffing proposal to support enhanced art programs and services. Executive Summary In April 2013 pursuant to a Colleagues Memo, Council directed staff to expand the City’s Percent for Art policy to include private development in Palo Alto. Accordingly, staff researched and prepared a recommendation that was presented to the Policy and Services Committee October 8, 2013 in staff report # 4138 (Attachment B). In that report, staff proposed the following:  A recommended public art program for private developments, based on the intersection of best practices in other similar cities, informed by discussions with local developers.  A draft ordinance establishing the private development art requirement and other key provisions.  A proposal to increase the capacity of the Public Art program staff in order to successfully manage its growth and support enhanced programs. City of Palo Alto Page 2 The Policy and Services Committee unanimously referred the Public Art in Private Development recommendation to Council for adoption (Attachment C) with the following directions:  Update the matrix of percent for art programs to only include public art in private development and add some budget information where available.  Add examples of transit agencies with percent for art programs  Clarify what costs are not included in the percent for art The additional research information requested by members of Policy and Services Committee can be found in Attachment D. Staff is now transmitting the proposed ordinance for public art in private development for adoption by the Council. Background Summary of Research on Public Art Programs for Private Developments Staff researched the growing national trend of including private developments in public art ordinances, with special focus on California cities of comparable size and/or proximal geographic location. Research revealed the following (For full report, see public art in private development chart, Attachment D):  In California alone, approximately 50 cities have a public art policy for private development. Some of those in the Bay Area include Sunnyvale, San Mateo, Alameda, Berkeley, Dublin, Emeryville, Livermore, Walnut Creek, and San Francisco.  Almost all of the cities with private development art programs offer an option for the developer to pay fees to a Public Art Fund in lieu of providing art on-site. Fees are used for other Public Art acquisitions and programming. Some cities create incentives to developers to choose the in-lieu fee option, by lowering the dollar amount required.  In most cities, Public Art Commissions exercised review and approval of public art, but building owners retained the ownership and maintenance responsibilities for the artwork. When the property is sold, the artwork is sold along with the property.  Most cities recommend that the developer hire an art consultant to guide the art selection and fabrication process. Some offer these services through Public Art Program staff at a comparable rate.  Many cities require public art for projects with construction cost of between $200,000 and $500,000 and above.  Some cities have exemptions for houses of worship, nonprofits, low income housing or hospitals. However, few projects are given exemptions and some cities such as Walnut Creek and Pasadena offer no exemptions at all.  Most cities refrain from issuing a Certificate of Occupancy until the public art requirement has been fulfilled. City of Palo Alto Page 3  Most cities require the artwork be visible or accessible to the public at least 8 hours a day during the work week.  A majority of cities have a Public Art Master Plan to guide art consultants in choosing artworks in keeping with the chosen priorities of that community, as well as to assist staff in the use of Public Art funds. Staff and Public Art Commissioners have contacted developers in Palo Alto to assess their level of support for an expanded Public Art program. Private developers appear to have a basic level of support. Various developers offered the following suggestions:  Ensure that the City articulates and follows a clearly outlined process  Consider capping art expenditures for large projects  Offer an option to pay fees in lieu of providing art on site  Allow developers to have a voice in what is placed on their property  Draft contracts with artists in such a way to allow developers flexibility should conditions at the site change  Emphasize larger and more impactful artwork for off-site art  Consider a broad definition of art that might include artist designed benches, doorways, drain spouts, and other utilitarian elements. Discussion Recommended Elements of a Public Art Program for Private Developments: Purpose and Goals Public Art is any large scale work sited in public spaces. Public art can be funded and owned by the public sector (like the City of Palo Alto) or the private sector (such as commercial property owners, hospitals and hotels). The Public Art Program for Private Developments is intended to enhance the built environment in Palo Alto and create a sense of place and civic pride, enabling the City to physically reflect its intrinsic creativity and innovative spirit. Adding public art to private development and supporting a broader public art program will enrich the built environment for residents and visitors alike, spawn art projects that can enhance a development project or corporation’s image, and stimulate cultural tourism and economic development. Staff understands the subjective nature of public art and that there will be a variety of styles and forms of expression that may occasionally cause controversy. It is expected that the resulting artworks will be visible from public areas, streets and sidewalks, thus enriching the diversity of creative expression in Palo Alto. City of Palo Alto Page 4 The Public Art Program for Private Developments will be supported by Municipal Code provision (see ordinance, Attachment A), and implementing policies to be drafted to carry out the Council’s programmatic direction. Qualifying Projects The requirement will apply to any new commercial development, addition or reconstruction requiring Architectural Review Board review that is (a) over 10,000 square feet, and (b) has a construction valuation of $200,000 or more. Architectural drawings, plans, fees, required studies and “soft costs” for a project are not counted in the valuation threshold. The requirement will also apply to residential projects of five units or more. Exemptions The following development projects are exempt from the public art requirement:  Houses of worship  Historic preservation sites  Affordable housing projects  Housing of four units or less  Repair or reconstruction of structures damaged by flood, fire, wind, earthquake or other calamity  Seismic retrofit projects Clarifications regarding exemptions:  Exempt projects can choose to opt-in to the public art program  Stanford property within City limits is not exempt  Hospitals are not exempt Calculation of the Art Requirement Projects meeting the program qualifications will be required to set aside 1% of the estimated Construction Valuation that is submitted at the time of entitlements, as part of the planning entitlement process, with conditions of approval due prior to building permit issuance. Project costs over $100M (with that number subject to adjustment upward through an inflationary formula) should be assessed at .9%. Requirements for On-Site Art Artwork may be commissioned on-site. On-site art should be visible or accessible to the public at least 40 hours per calendar week. City of Palo Alto Page 5 If artwork is being commissioned on-site, developers will meet with the Public Art Program Manager within 60 days of the developers’ initial consultation with the Planning Department (See Flow Chart Attachment E). The consultation must happen before public hearings with the Architectural Review Board or Planning and Transportation Commission are held, and prior to Planning Director or Council approvals of Planning entitlements. To ensure the best possible coordination and communication, developers choosing to commission artwork on-site are encouraged to contract with one of the City’s public art project managers (City staff or City-recommended consultant) to facilitate the entire process of commissioning public art, including the artist selection, design proposal, contract and financial management, fabrication and installation of the artwork. Typically, fees for public art project management and administration are approximately 20% of the total public art budget. The City will charge 20% of the public art budget for on-site Public Art Project Management. For on-site artwork that the City does not project manage, then 5% of the art budget will be allocated to the Public Art Fund to offset Public Art administrative and review costs. All designs for public art must be reviewed by the Public Art Commission prior to fabrication. The developer’s Project Manager for the public art (whether contractor or City staff) must work closely with the City staff to ensure that initial and final reviews by the Public Art Commission are completed in a timely fashion. The artwork locations and information will be submitted with the Architectural Review Board submittal documents, but the approval of the artwork will fall within the jurisdiction of the Public Art Commission. The artwork must be completely installed and verified by staff prior to issuance of the certificate of occupancy. Developer’s Option to Pay Fees in Lieu of Providing Art On-Site The developer may elect, at his or her option, to pay a fee into the Public Art Fund in lieu of providing on-site art. The fee will be calculated at 1% of the estimated Construction Valuation that is submitted at the time of entitlements, as part of the planning entitlement process, with conditions of approval due prior to building permit issuance. Projects with a public art allocation under $15,000 are encouraged to submit the funds to the Public Art Fund. Should the developer choose to pay into the ‘in-lieu’ Public Art Fund, the in lieu fees will be transferred to Public Art Fund, which may be aggregated to create larger, more impactful projects such as gateways and high traffic spaces; community based art projects; rotating exhibitions of temporary public art; and other creative place-making events. If the developer chooses the in-lieu option, no initial meeting is required within 60 days of submission of the application. In-lieu payments for art, however, must be received prior to issuance of Building Permits. Criteria for Eligible Art and Artists Staff anticipates that artworks by a diverse pool of local, regional, national and internationally renowned artists will contribute to the cultural fabric of Palo Alto. In order to integrate the art City of Palo Alto Page 6 as much as possible into the construction project, it is critical to have the selected artist on board with the project design team as early in the process as possible. The program is best supported by artists with demonstrated past experience in successful public art projects that respond to the site and community. With the assistance of the City’s public art project manager, developers should review proposed artists based upon their proposed art concept, but also on education, exhibition history and previous work. The developer’s Project Manager for the public art (whether contractor or City’s public art project manager) will work with the Public Art program to devise the best method of artist selection for that particular project or site(s) and present the selection methods, budget and all applicable materials to the City’s Public Art Manager for review by the Public Art Commission. Selection methods include open competition, limited competition or direct commission of a specific artist, based on their unique qualifications. Contracts and payments will be negotiated between the Developer and the artist. Artists’ fees are typically 15-25% of the overall art budget, with the remainder for the cost of fabricating and installing the artwork, as well as project management and administration. Developers are responsible for contractual relationships with selected artists, including provisions relating to artists’ rights. Copies of the contracts, payment schedules and budgets will need to be submitted to the Public Art Manager for review prior to the project presentation to the Public Art Commission. Ownership/Maintenance/Removal The artwork is commissioned by the developer and thus is owned and maintained by the developer. The City will have the right to include the artwork on public art virtual or physical tours, as long as such a tour would not impede normal business. If the property is sold, the ownership of the artwork will be transferred with the property, along with the maintenance responsibilities. If a building owner wishes to sell, de-accession or remove artwork from a site, the owner must notify the City a minimum of 90 days before removing the work. The owner must receive prior approval from the Public Art Commission. The developer will be required to replace the sold or de-accessioned artwork with an alternative work of equivalent or greater value, as determined by the Public Art Commission, in current dollars. In the alternative, at the developer’s election, the developer could choose to pay fees in lieu of replacing on-sight art, at a reasonable rate equivalent to the cost of replacing the art in current dollars, as determined by the Public Art Commission. Eligible Expenses for Public Art Funds The Public Art program is receptive to a broad range of styles and media in the arts. Only original, artist-designed and produced unique artworks are considered. Pre-fabricated or mass produced works are not acceptable. The artist typically may not be an employee or have a City of Palo Alto Page 7 current business interest or be a relative of the architect, project manager, anyone on the art selection panel, landscape architect or hold that title him/herself. Eligible expenses for Developer commissioned art projects include:  Sculpture, painting, new media art, light and sound installation, and other original, site specific artworks  Artist-designed amenities (such as streetscapes, paving treatments, lighting treatments, benches, way-finding, water features, etc.)  If artwork is part of a limited edition series, the series must be no larger than 20.  Structural elements to mount, display or secure the artwork  Professional fees for the artist  Additional labor and contracted services required for the production and installation of the work.  Any required permit or certificate fees related to the artwork  Artist’s operating expenses related to the project  Transportation and installation costs for the artwork  Identification plaque installed on site (required) Ineligible costs for Developer commissioned and owned art projects:  Mass produced “art objects”, such as play equipment, fountains or statuary objects.  Reproductions, by mechanical or other means, of original works of art, except in the cases of film, video, photography, printmaking or other media arts.  Decorative, ornamental or functional elements that are designed by the building architect as opposed to an artist commissioned for this purpose.  Landscape architecture or gardening except where these elements are designed by the artist or are integral to the work of art.  Services or utilities required to operate or maintain the artwork over time. The final artwork and identification plaque must be installed and confirmed in accordance to plan, prior to the issuance of the Certificate of Occupancy. The plaque must include, but is not limited to, name of artwork, name of artist, medium, size, City of Palo Alto and be in compliance with Americans with Disabilities Act regulations. Use of Public Art Funds and Project Management fees The Fund shall be used for City-owned art or to support project and/or collection management efforts of the public art program. The funds may be used for the following types of expenses:  Acquisition and installation of temporary or permanent works of art in public places,  Publicly accessible exhibitions of art,  Community based public art events, City of Palo Alto Page 8  Project and collection management expenses associated with the Public Art Program, limited to 20% of Public Art Funds Outside of the normal budget process, staff will submit accounting annually to the Council to report how the funds were spent and the plans to spend them for the following year. Staff will provide a report evaluating the program to Council within the first two years of the inclusion of private developers in public art requirement. Creating Vision and Buy-In Through a Public Art Master Planning Process Following best practices in Public Art, a comprehensive Public Art Master Plan is needed to guide the vision and implementation of the future of public art in Palo Alto. We wish to engage the community in multiple discussions and design charettes on the vision of art in public places in Palo Alto and the range of projects that are appropriate and desirable for this community, as well as relevant issues like conservation, collection management, trends in the fields of architecture and public art. The Public Art Master Planning process has been very successful in other communities wishing to grow a responsive and successful public art program. By bridging the desires of the residents with inspiring artists, the process enriches and highlights the cultural fabric of a community. The Public Art Master Plan will engage the community in deciding which types of art opportunities are priorities within Palo Alto in the public realm. The resulting Public Art Master Plan will be an important resource for the City, art consultants and private developers. Upon Council approval of the Public Art Program for Private Development, staff will initiate a Public Art Master Plan process, using a consultant, to work with the public to create a long-term vision for public art in Palo Alto. Budgetary Issues According to internal Planning Department data, an approximate forecast of future private development projects over the next three years total a conservative estimated valuation of $275,000,000, excluding Tenant Improvement (TI) projects. This figure is based on conservative estimations from the Planning Department, confirmed at the time of application for a Building permit. Staff expects to exempt current projects in the pipeline that have effective entitlement approvals or final building permits, which will also bring the number down. If many of those projects are realized and meet the public art requirements, they could bring in as much as $2,000,000 for art projects over the next three years. A modest amount of those funds could be used to offset operational costs. Since ascertaining valuation of future development projects is at best a guestimate at this point in time, staff has compiled a snapshot of the last three years in order to determine a baseline: As demonstrated in Attachment F, there has been a significant increase in private development projects between 2011 and 2013, which would have identified approximately $2.5 Million for public art for that three year period. It is also important to note that the tenant improvement City of Palo Alto Page 9 projects, or remodels, are not captured in the future projections, although they are reflected in the past three years of building permits. Thus, the $275,000,000 estimate for the next three years is low, allowing for unpredictable economic shifts and the time needed for the public art allocations to accumulate. We estimate that the new ordinance may generate as much as $2,000,000 for public art in the first three years of implementation. Of that amount, we estimate that at least $200,000 could be available to offset operational expenses associated with running the program. Municipal Ordinance and Public Art Projects Palo Alto has a municipal percent for art policy, which requires one percent of City capital improvement projects to be used for public art. In contrast to the resources that can potentially be generated through a private development percent for art program, the current projection of municipal percent for art projects in the next three years includes $150,000 divided between six identified projects. The art budgets for these projects range from $1,000 to $81,000. There are currently other potential projects that could add to the public art budget, but they have not yet earmarked funds for percent for art. In order for the City’s public art program to foster meaningful creative placemaking - integrating the work of creative professionals, arts organizations and artists into our public spaces in collaboration with the community - the City policy should be amended to provide for earlier identification of municipal percent for art projects and pooling of funds from small projects. The staff plans on returning to Policy and Services with an updated municipal policy in 2014. Resource Impact Building Structural Capacity Like all public art programs, project management demands a significant amount of staff time- whether CIP construction projects, conservation or maintenance projects. Those demands mixed with the need for expertise in visual arts, working with artists and the community selection process, and the inherent problems associated with public art projects, plus supporting a Commission, require a dedicated leader and manager with a high level of expertise in the field. Currently the Program is staffed by one half-time employee (management specialist) and one program support staff member. The Assistant Director of Community Services/ Director of Arts & Sciences also provides approximately 25% of her time to the program. Due to the demands of the current workload and the additional staffing resources anticipated to support an expanded program, staff plans to evaluate staffing needs and may bring forward recommendations as part of the FY2015 budget process based on the analysis of spending on City of Palo Alto Page 10 staff, maintenance, project management, capital improvement needs, and in-lieu art program revenue estimates. The additional contract managers needed to carry the workload associated with the public art in private development ordinance is planned to be offset by the project management fees acquired by the 1% public art allocation. Approximate Timeline  Fall-Winter 2013 – Ordinance, and basic plan for public art in private development approved by City Council.  Winter/Spring 2014 - Refinement of Documents for Developers, creation of pool of qualified artists and consultants, projects subject to the policy are identified.  Summer 2014 – RFQ for Strategic Cultural Plan and Public Art Master Plan created and released. Staff returns to Policy and Services Committee to refine Municipal Percent for Art Policy and align it with approved Private Ordinance  Fall-Winter 2014 – Public Art Master Planning Process begins  Spring-Summer 2015 - Adoption of Public Art Master Plan by PAC, and made available to public, art consultants and developers. Report back to Council on progress to date, proposed changes, and evaluation. Impact Palo Alto, like our neighboring communities, struggles with land use issues, zoning and development. It becomes increasingly difficult for each City to differentiate our City from another as similar developments move into each community. Finding a balance between our economic development needs and the soul of our community is a creative challenge. Palo Alto wants to preserve its sense of its own history and destiny. By implementing percent for art into our development process now, Palo Alto can ensure that we can preserve our cultural and artistic heritage and create new ways to express ourselves as a community. In the first five years of passing this ordinance, Palo Alto will be able to engage the community in creating a Public Art Master Plan, and begin to see the first qualifying private projects become implemented and installed. The next five years will see the implementation of significant, landmark artwork and a steady stream of projects incorporated into private development. At this stage, the presence of the private development percent for art program will become visibly apparent and a vibrant sense of place will emerge in its physical and cultural landscape. More frequent temporary public artworks and related events will become part of Palo Alto’s regular cultural programming. By ten to fifteen years from the implementation of the ordinance, public art will be fully integrated into all areas of the City, from creative bike racks and wayfinding to destination artworks. Palo Alto will be regarded for its innovation, its engaged community, its environmental commitment and its outstanding public art. The long range implications of expanding the public art policy to include private developments will need to be evaluated within 24 months in order to gauge the full impacts to the budget, staffing and maintenance funds. Because it is difficult to determine from the initial permit process how many projects will actually come to fruition or in what timeframe, estimating the City of Palo Alto Page 11 total dollar impacts at this time is difficult to accurately predict. It is expected that the dollar amounts will ebb and flow from year to year, and need to be managed conservatively. Policy Implications The expansion of art exhibitions into the public realm is consistent with Community Services section policy C-23, “Explore a way to expand the space available in the community for art exhibitions, classes and other cultural activities.” This process is consistent with policy G-2 of the Governance section, “Use advisory bodies and ad hoc committees to assist City Staff and the City Council on policy issues”. Attachments:  : Attachment A: Ordinance to Establish a Public Art Program for Private Development (PDF)  : Attachment B: Report #4138 (DOC)  : Attachment C: 10-08-13 P&S Working Minutes (DOC)  : Attachment D: Pubic Art in Private Development CA 2012-13 (XLS)  : Attachment E: Process Flow Chart (DOCX)  : Attachment F: Budget Based on Last Three years of Building Records (DOCX) NOT YET APPROVED 131107 sh 0140096 1 ORDINANCE NO. _____ Ordinance of the Council of the City of Palo Alto Amending the Municipal Code to add Chapter 16.61 (Public Art for Private Developments) The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Purpose. The City Council finds and declares that: (a) A robust public art program fosters economic development, creates vital public spaces, and promotes general health and welfare by contributing to a more desirable community in which to live, work and recreate. Well-conceived and executed works of art that are integrated into their sites and accessible to the public enhance the value of development projects, create greater interest in leased space, promote cultural tourism, create a sense of place and make a lasting a visible contribution to the intellectual, emotional and creative life of the community at large, thereby helping to mitigate the impacts of development. The experience of public art makes public areas of buildings and grounds more inviting and engaging. (b) To ensure that public art is present and sustained throughout the community, it is necessary to require that private development projects in the City of Palo Alto provide public art on site or, alternatively, contribute to a public art fund so that public art can be established elsewhere in the community. (c) The purpose of this Chapter is to establish a public art requirement for private developments and to authorize the City Manager to establish regulations and guidelines to effectuate the intent of this Chapter. SECTION 2. The Palo Alto Municipal Code is amended to add Chapter 16.61 “Public Art for Private Developments”. SECTION 3. The Palo Alto Municipal Code is amended to add Section 16.61.010 “Definitions”. 16.61.010 Definitions For the purposes of this Chapter, the following definitions shall apply: “Affordable Housing Developments” means a project where 100% of the units are affordable to a “moderate,” “low” or “very low” income household, as those terms are defined by the California Department of Housing and Community Development, as applicable to Santa Clara County. “Art” or “Work of Art” means original artist-designed and produced unique works in any of a variety of styles and forms. NOT YET APPROVED 131107 sh 0140096 2 “Artist” means a practitioner of the creative arts, generally recognized as such by critics and peers, with a body of work including commissions, exhibitions, sales, publications, and collections. For the purposes of this Chapter, “artist” shall not include: (i) persons primarily working in the professional fields of architecture, engineering, design or landscaping; (ii) an employee or relative of the development project architect, landscape architect, engineer or project manager; (iii) any person with a business interest in a development project or with respect to individuals or entities serving as project architects, landscape architects, engineers or project managers; or (iv) a relative of or anyone with a financial interest with respect to an individual or entity serving on an art selection panel for the development project. “Developer” means a person or entity that is financially and legally responsible for the planning, development and construction of any development project covered by this Chapter. The developer may or may not also be the project owner. “Development Project” means any commercial or residential development described in Section 16.61.40 (a). “Historic Renovation” means a Development Project involving preservation of a historic resource listed on or eligible for listing on the California Register of Historical Resources, where such preservation follows the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstruction Historic Buildings or the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. “Public Art” means a work of art that is visible or accessible to the public for a minimum of 40 hours per week. Public art is generally large-scale and may include sculpture, painting, installations, photography, video, works of light or sound, or any other work or project determined by the Public Art Commission to satisfy the intent of this Chapter, provided, however, that none of the following shall be considered public art for the purposes of satisfying the requirements of this Chapter: (i) Objects that are mass produced of standard design, such as banners, signs, playground equipment, benches, statuary, street or sidewalk barriers, or fountains; (ii) Reproduction, by mechanical or other means, of original works of art, except as incorporated into film, video, photography, printmaking or other derivative works as approved by the Public Art Commission; (iii) Decorative, architectural, or functional elements that are designed by the building architect or landscape architect as opposed to an artist commissioned for this purpose; or NOT YET APPROVED 131107 sh 0140096 3 (iv) Landscape architecture or gardening, except where these elements are designed by an artist and are an integral part of a work of art. “Public Art Commission” means the Commission established by Chapter 2.18 of the Municipal Code. SECTION 4. The Palo Alto Municipal Code is amended to add Section 16.61.020 “Application”: 16.61.020 Application (a) This Chapter shall apply to all new commercial developments (including mixed use projects), including new construction, remodels, additions and reconstruction that (i) have a floor area of 10,000 square feet or more, and (ii) have a construction value of $200,000 or more, exclusive of costs for architecture, design, engineering and required studies; and all new residential projects of five or more units. (b) Notwithstanding subsection (a) above, this Chapter shall not apply to: i. Buildings or structures primarily used for religious worship; ii. Historic renovations; iii. Affordable housing developments; iv. Municipal facilities; v. Repair or reconstruction of structures damaged by flood, fire, wind, earthquake or other disaster; vi. Seismic retrofit projects; or vii. Any project exempted by federal or state law. (c) In mixed use projects, those portions of projects excluded from application of this Chapter under subsection (b) shall be subtracted from the project for purposes of determination of applicability under subsection (a), above, and from construction valuation under Section 16.61.040 and 16.61.090. SECTION 5. The Palo Alto Municipal Code is amended to add Section 16.61.030 “Public Art Requirement for Private Developments”: 16.61.030 Public Art Requirement for Private Developments Before a certificate of occupancy is issued for any development project subject to this Chapter, the developer shall participate in the construction or installation of on-site public art under Section 16.61.040, or, at the developer’s option, make a contribution to the Public Art Fund in lieu of providing on-site art, as provided in Section 16.61.090. NOT YET APPROVED 131107 sh 0140096 4 SECTION 6. The Palo Alto Municipal Code is amended to add Section 16.61.040 “On-Site Public Art”: 16.61.040 On-Site Public Art (a) A developer may satisfy the requirements of this Chapter by constructing or installing on-site public art valued at 1% of the first $100 million construction valuation, adjusted as described in subsection (b) below, and .9% of construction valuation for valuation in excess of $100 million. For purposes of budgeting and planning for on-site art, an initial estimate of the art contribution shall be calculated based on estimated construction valuation at the time of application for entitlements. The arts contribution shall be finally determined based on the construction valuation determined at the time the building permit is issued. (b) Beginning in FY 2015 and annually thereafter, the Director of Planning and Community Development shall adjust the ceiling for 1% valuation as set forth in subsection (a) above to reflect increases in the Consumer Price Index for All Urban Consumers. (c) If the market value of the on-site public art is greater than the art contribution provided in Subsection 16.61.040(a), the City shall have no obligation to refund the excess amount. If expenditures do not utilize the entire amount provided in 16.61.040(a), the remainder shall be deposited into the Public Art Fund. SECTION 7. The Palo Alto Municipal Code is amended to add Section 16.61.050 “Eligible Expenditures for On-Site Public Art Projects”: 16.61.050 Eligible Expenditures for On-Site Public Art Projects The public art contribution for on-site installation may be expended only on costs associated with the selection, acquisition, purchase, commissioning, design, fabrication, placement, installation or exhibition of the public art, and project management and administrative costs not to exceed 20% of the total budget. Eligible expenditures include: (a) Artist fees; (b) Labor of assistants, materials, and contracted services required for design, fabrication, engineering and installation of the public art; (c) Any required permit or certificate fees and reasonable business and legal costs directly related to the public art; (d) Reasonable art consultant fees, as established in regulations or guidelines approved by the City Manager to implement this Section; NOT YET APPROVED 131107 sh 0140096 5 (e) Communication, utilities, insurance and other indirect costs associated with the creation but not the operation of the public art; (f) Transportation of the public art to the site; (g) Preparation of the site specifically required for the public art, such as fabrication of platforms or pedestals; (h) Installation of the public art; (i) Mountings, anchorages, containments or other materials necessary for installation of the public art; (j) Public art project management and administration, in an amount not to exceed 20% of the total art contribution; and (k) A plaque or plaques identifying the public art. SECTION 8. The Palo Alto Municipal Code is amended to add Section 16.61.060 “Ineligible Expenditures for On-Site Public Art Projects”: 16.61.060 Ineligible Expenditures for On-Site Public Art Projects Expenditures that are ineligible to be counted toward the on-site public art contribution include: (a) Labor of assistants, materials, and contracted services not required for design, fabrication, engineering and installation of the public art; (b) Promotional materials or activities for the artist, the public art, the development project, the developer or other parties involved in the development project; (c) Opening, dedication or other costs of events for the public art, artist, developer or development; (d) Services, materials, utilities or other expenses association with the ongoing operation or maintenance of the public art; and (e) Land costs or any other costs associated with the development that are not part of and solely attributable to the public art. // // NOT YET APPROVED 131107 sh 0140096 6 SECTION 9. The Palo Alto Municipal Code is amended to add Section 16.61.070 “Process for Planning and Approval of On-Site Public Art”: 16.61.070 Process for Planning and Approval of On-Site Public Art (a) Application and Planning. Within 60 days of initial application for permitting or other discretionary approval, the developer shall consult with the Public Art program staff regarding a plan for meeting the requirements of this Chapter. This consultation must be complete before the development project is calendared for consideration by a public body, including the Architectural Review Board, Planning & Transportation Commission or City Council, and before the Director of Planning and Community Environment issues any approvals with respect to the project. (b) Public Art Commission Review and Approval. If the developer elects to comply with this Chapter by providing on-site art, the developer’s public art plan must be presented to the Public Art Commission. The plan should include the process by which the art and artist will be selected while ensuring that no single artist be commissioned for more than 3 public art in private development projects within Palo Alto, the type of art proposed, a plan to integrate the art into the site, and a proposed budget and schedule of payments. The Public Art Commission shall render a decision whether the proposed public art plan conforms to the requirements and intent of this Chapter within 90 days of submission of a complete application, as determined by the Director of Planning and Community Environment, in consultation with the Public Art program staff. The developer shall not enter into contracts or make expenditures until the Public Arts Commission approves the on-site art plan. In addition, before initiating fabrication and installation of the on-site art, the developer shall return to the Public Art Commission for final approval of the artist and the proposed public art. The Public Art Commission shall render a decision within 60 days of submission of a complete proposal, as determined by the Director of Planning and Community Environment, in consultation with the Public Art program staff. No building permit may issue until the Public Art Commission issues the approvals required under this subsection. SECTION 10. The Palo Alto Municipal Code is amended to add Section 16.61.080 “Additional Requirements for On-Site Public Art”: 16.61.080 Additional Requirements for On-Site Public Art (a) Plaque. The public art shall be identified by a plaque that meets the standards in use by the City at the time of installation of the public art. (b) Ownership and Maintenance. All on-site public art shall remain the property of the property owner or the property owner’s successor in interest. The property owner shall retain the obligation to provide all necessary maintenance to preserve the public art in good condition. Immediately upon installation and continuously thereafter, the developer and the property owner shall maintain the public art and shall promptly perform all NOT YET APPROVED 131107 sh 0140096 7 necessary repairs and maintenance to the satisfaction of the City. The obligation to maintain and preserve the public art includes the obligation to take reasonable steps to protect the public art against destruction, damage or modification. (c) Location and Relocation of Public Art. Except as provided herein, the public art must remain at the development in the location approved by the Public Art Commission. A property owner may petition the Public Art Commission to relocate the public art within the development project. When and if the development project is sold, the public art must remain at the development and may not be claimed as the property of the seller or removed from the site. If the development is to be demolished, the owner must relocate the public art to another publicly accessible permanent location approved in advance by the Public Art Commission. (d) Removal and Replacement of Public Art. If the owner desires to deaccession, sell or remove the art from the site, the owner shall give prior notice to the City by providing written notice to the Public Art program staff no less than 90 days before the intended action. The owner must receive prior approval from the Public Art Commission. The developer will be required to replace the sold or de-accessioned artwork with an alternative work of equivalent or greater value, as determined by the Public Art Commission, in current dollars. In the alternative, the developer may elect to pay fees in lieu of replacing on-site art, at a reasonable rate equivalent to the cost of replacing the art in current dollars, as determined by the Public Art Commission. (e) Statutory and Contractual Rights of Artists. The owner is solely responsible for complying with all statutory and contractual rights of the artist, including rights under the California Preservation of Works of Art Act, the federal Visual Artists’ Rights Act, and any other applicable law. (f) Covenant; Recordation. The property owner shall record against the property a declaration of covenants, conditions and restrictions, in favor of the City, and in a form approved by the City Attorney. The declaration shall include (i) the owner’s obligation to provide all necessary maintenance of the public art, including preservation and restoration of the public art, in good condition, to the reasonable satisfaction of the City, and to protect the public art against destruction or damage; (ii) the owner’s obligation to ensure that the public art is accessible to the public as required by this Chapter; and (iii) any other terms reasonably necessary to implement this Chapter. (g) Inspection; Remedies. The City shall have the right to inspect the public art, on reasonable notice, to ensure compliance with this Chapter. Failure to maintain the public art as required by this Section is hereby declared to be a public nuisance. The City may remedy the public nuisance and may pursue additional remedies to obtain compliance with this Chapter. In addition to all other remedies provided by law, in the event the owner fails to maintain the public art, on reasonable notice the City may perform all necessary repairs and NOT YET APPROVED 131107 sh 0140096 8 maintenance, or may secure insurance or other needed services, and the costs thereof shall become a lien against the real property. SECTION 11. The Palo Alto Municipal Code is amended to add Section 16.61.090 “Developer’s Option to Pay Fees to Public Art Fund In-Lieu of Providing On-Site Art”: 16.61.090 Developer’s Option to Pay Fees to Public Art Fund In-Lieu of Providing On-Site Art In lieu of installation of on-site public art, the developer may elect to make a monetary contribution to the Palo Alto Public Arts Fund. The amount of the contribution shall be the cost of the public art required by Section 16.61.040. A developer who elects to satisfy the requirements of this Chapter through a contribution to the Fund must complete the payment in-lieu prior to the issuance of any building permit for the development project. SECTION 12. The Palo Alto Municipal Code is amended to add Section 16.61.100 “Inspection and Final Approval.” 16.61.100 Inspection and Final Approval. Before a Certificate of Occupancy is issued for the development project, the City shall inspect and confirm that either: (i) public art has been installed as required by the Public Art Commission approvals and to the satisfaction of the Director of Planning and Community Environment, in consultation with the Public Art program staff; or (ii) in-lieu contributions have been paid in full. In addition, before a Certificate of Occupancy is issued, the City shall confirm that the developer has executed and recorded a covenant as required by Section 16.61.080(f). SECTION 13. The Palo Alto Municipal Code is amended to add Section 16.61.110 “Public Art Fund”: 16.61.110 Public Art Fund There shall be a fund entitled “Public Art Fund” to account for in-lieu contributions made under Section 16.61.090. This fund and the interest thereon shall be maintained by the Chief Financial Officer according to standard governmental accounting requirements. The Public Art Fund shall be reserved for the design, acquisition, commission and installation of new works of art and art experiences in Palo Alto, or for such other equivalent artistic purposes approved by the Public Art Commission. Funds may be used for project management and administration costs associated with acquisition of new works, not to exceed 20% of the project budget, and for the repair, maintenance, conservation and insurance of those works. Art works acquired through the Public Art Fund shall be owned by the City of Palo Alto and generally made accessible to the public. NOT YET APPROVED 131107 sh 0140096 9 SECTION 14. The Palo Alto Municipal Code is amended to add Section 16.61.120 “Regulations”: 16.61.120 Regulations The City Manager, or his or her designee, is authorized to adopt administrative regulations, procedures or guidelines that are consistent with and that further the terms and requirements of this Chapter. SECTION 15. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 16. Implementation. This ordinance shall be effective on the thirty- first day after the date of its adoption and shall immediately apply to all development projects that have not yet received final land use entitlements. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ___________________________ Director of Community Services ___________________________ Director of Administrative Services Recommendation Staff recommends that the Policy and Services Committee recommend that Council: 1. Approve a Public Art Program for Private Developments, including adopting an ordinance establishing art requirements and other key provisions (Attachment C). 2. Direct staff and the Public Arts Commission to engage the public in a Public Art Master Plan process that will guide public arts acquisitions and programming under the Public Art Program. 3. Direct staff to evaluate and bring forward recommendations regarding Public Art staffing, maintenance, project management, capital improvement needs and revenue estimates as part of the FY 2015 Proposed Budget document. 4. Direct staff to return to the Committee in 2014 with recommendations to update the municipal percent for art policy that applies to City capital improvement projects. Executive Summary In April 2013, Council directed staff to expand the City’s percent for art policy to include private development in Palo Alto (See Colleagues Memo of April 8, 2013, and Meeting Minutes- Attachment A). The key objectives outlined in the April Council action were:  Reflect the creative and vibrant community that lives, works, and visits here.  Encourage a variety of art experiences to enhance the visual landscape of our city.  Offset the collection maintenance and public art project management costs to the general fund, eventually resulting in a more self-sustaining public art program. Accordingly, staff proposes in this report:  A recommended public art program for private developments, based on the intersection of best practices in other similar cities, informed by discussions with local developers.  A draft ordinance establishing the private development art requirement and other key provisions.  A proposal to increase the capacity of the Public Art program staff in order to successfully manage its growth and support enhanced programs. Staff proposes to return to Policy and Services in 2014 with recommendations to update the policy governing the municipal percent for art program that applies to City capital improvement projects. Background Summary of Research on Public Art Programs for Private Developments Staff researched the growing national trend of including private developments in public art ordinances, with special focus on California cities of comparable size and/or proximal geographic location. Research revealed the following (For full report, see Percent for Art Programs Grid Attachment B):  In California alone, more than 48 cities have a public art policy for private development. Some of those in the Bay Area include Sunnyvale, San Mateo, Alameda, Berkeley, Dublin, Emeryville, Livermore, Walnut Creek, and San Francisco.  Almost all of the cities with private development art programs offer an option for the developer to pay fees to a Public Art Fund in lieu of providing art on site. Fees are used for other Public Art acquisitions and programming. Some cities create incentives to developers to choose the in-lieu fee option, by lowering the dollar amount required.  In most cities, Public Art Commissions exercised review and approval of public art, but building owners retained the ownership and maintenance responsibilities for the artwork. When the property is sold, the artwork is sold along with the property.  Most cities recommend that the developer hire an art consultant to guide the art selection and fabrication process. Some offer these services through Public Art Program staff at a comparable rate.  Many cities require public art for projects with construction cost of between $200,000 and $500,000 and above.  Some cities have exemptions for houses of worship, nonprofits, low income housing or hospitals. However, few projects are given exemptions and some cities such as Walnut Creek and Pasadena offer no exemptions at all.  Most cities refrain from issuing a Certificate of Occupancy until the public art requirement has been fulfilled.  Most cities require the artwork be visible or accessible to the public at least 8 hours a day during the work week.  A majority of cities have a Public Art Master Plan to guide art consultants in choosing artworks in keeping with the chosen priorities of that community, as well as to assist staff in the use of Public Art funds. Staff and Public Art Commissioners have contacted developers in Palo Alto to assess their level of support for an expanded Public Art program. Private developers appear to have a basic level of support. Various developers offered the following suggestions:  Ensure that the City articulates and follows a clearly outlined process  Consider capping art expenditures for large projects  Offer an option to pay fees in lieu of providing art on site  Allow developers to have a voice in what is placed on their property  Draft contracts with artists that allow developers flexibility should conditions at the site change  Emphasize larger and more impactful artwork for off-site art  Consider a broad definition of art that might include artist designed benches, doorways, drain spouts, and other utilitarian elements. Discussion Recommended Elements of a Public Art Program for Private Developments: Purpose and Goals Public Art is any large scale work sited in public spaces. Public art can be funded and owned by the public sector (like the City of Palo Alto) or the private sector (such as commercial property owners, hospitals and hotels). The Public Art Program for Private Developments is intended to enhance the built environment in Palo Alto and create a sense of place and civic pride, enabling the City to physically reflect its intrinsic creativity and innovative spirit. Adding public art to private development and supporting a broader public art program will enrich the built environment for residents and visitors alike, spawn art projects that can enhance a development project or corporation’s image, and stimulate cultural tourism and economic development. It is expected that the resulting artworks will be visible from public areas, streets and sidewalks, thus enriching the diversity of creative expression in Palo Alto. The Public Art Program for Private Developments will be supported by Municipal Code provision (see draft ordinance, Attachment C), and implementing policies to be drafted to carry out the Council’s programmatic direction. Qualifying Projects The requirement will apply to any new commercial development, addition or reconstruction that is (a) over 10,000 square feet, and (b) has a valuation of $200,000 or more. Architectural drawings and required studies for a project are not counted in the valuation threshold. The requirement will also apply to residential projects of five units or more. Exemptions The following development projects are exempt from the public art requirement:  Houses of worship  Historic preservation sites  Affordable housing projects  Housing of four units or less  PAUSD projects  Repair or reconstruction of structures damaged by flood, fire, wind, earthquake or other calamity  Seismic retrofit projects Clarifications regarding exemptions:  Exempt projects can choose to opt in to the public art program  Stanford property within City limits is not exempt  Hospitals are not exempt Calculation of the Art Requirement Projects meeting the program qualifications will be required to set aside 1% of the estimated Construction Valuation that is submitted at the time of entitlements, as part of the planning entitlement process, with conditions of approval due prior to building permit application. Project costs over $100M (with that number subject to adjustment upward through an inflationary formula) should be assessed at .9%. Requirements for On-Site Art Artwork may be commissioned on site. On-site art should be visible or accessible to the public at least 40 hours per calendar week. If artwork is being commissioned on site, developers will meet with the Public Art Program Manager within 60 days of the developers’ initial consultation with the Planning Dept. (See Flow Chart Attachment D.) This consultation must happen before public hearings with the Architectural Review Board or Planning and Transportation Commission are held, and prior to Planning Director or Council approvals of Planning entitlements. To ensure the best possible coordination and communication, developers choosing to commission artwork on-site are encouraged to contract with one of the City’s public art project managers (City staff or City-recommended consultant) to facilitate the entire process of commissioning public art, including the artist selection, design proposal, contract and financial management, fabrication and installation of the artwork. Typically, fees for public art project management and administration are approximately 20% of the total public art budget. The City will charge 20% of the public art budget for on-site Public Art Project Management. For on-site artwork that the City does not project manage, then 5% of the art budget will be allocated to the Public Art Fund to offset Public Art Administrative costs. All designs for public art must be reviewed by the Public Art Commission prior to fabrication. The developer’s Project Manager for the public art (whether contractor or City staff) must work closely with the City staff to ensure that initial and final reviews by the Public Art Commission are completed in a timely fashion. The artwork locations and information will be submitted with the Architectural Review Board submittal documents, but the approval of the artwork will fall within the jurisdiction of the Public Art Commission. The artwork must be completely installed and verified by staff prior to issuance of the certificate of occupancy. Developer’s Option to Pay Fees in Lieu of Providing Art On-Site The developer may elect, at his or her option, to pay a fee into the Public Art Fund in lieu of providing on-site art. The fee will be calculated at .95% of the estimated Construction Valuation that is submitted at the time of entitlements, as part of the planning entitlement process, with conditions of approval due prior to building permit application. Projects with a public art allocation under $15,000 are encouraged to submit the funds to the Public Art Fund. Should the developer choose to pay into the ‘in-lieu’ Public Art Fund, the in lieu fees will be transferred to Public Art Fund, which may be aggregated to create larger, more impactful projects such as gateways and high traffic spaces; community based art projects; rotating exhibitions of temporary public art; and other creative place-making events. If the developer chooses the in-lieu option, no initial meeting is required within 60 days of submission of the application. In-lieu payments for art, however, must be received prior to issuance of Building Permits. Criteria for Eligible Art and Artists Staff anticipates that artworks by a diverse pool of local, regional, national and internationally renowned artists will contribute to the cultural fabric of Palo Alto. In order to integrate the art as much as possible into the construction project, it is critical to have the selected artist on board with the project design team as early in the process as possible. The program is best supported by artists with demonstrated past experience in successful public art projects that respond to the site and community. With the assistance of the City’s public art project manager, developers should review proposed artists based upon their proposed art concept, but also on education, exhibition history and previous work. The developer’s Project Manager for the public art (whether contractor or City’s public art project manager) will work with the Public Art program to devise the best method of artist selection for that particular project or site(s) and present the selection methods, budget and all applicable materials to the City’s Public Art Manager for review by the Public Art Commission. Selection methods include open competition, limited competition or direct commission of a specific artist, based on their unique qualifications. Contracts and payments will be negotiated between the Developer and the artist. Artists’ fees are typically 15-25% of the overall art budget, with the remainder for the cost of fabricating and installing the artwork, as well as project management and administration. Developers are responsible for contractual relationships with selected artists, including provisions relating to artists’ rights. Copies of the contracts, payment schedules and budgets will need to be submitted to the Public Art Manager for review prior to the project presentation to the Public Art Commission. Ownership/Maintenance/Removal The artwork is commissioned by the developer and thus is owned and maintained by the developer. The City will have the right to include the artwork on public art virtual or physical tours, as long as such a tour would not impede normal business. If the property is sold, the ownership of the artwork will be transferred with the property, along with the maintenance responsibilities. If a building owner wishes to sell, de-accession or remove artwork from a site, the owner must notify the City a minimum of 90 days before removing the work. The owner must receive prior approval from the Public Art Commission. The developer will be required to replace the sold or de-accessioned artwork with an alternative work of equivalent or greater value, as determined by the Public Art Commission, in current dollars. In the alternative, at the developer’s election, the developer could choose to pay fees in lieu of replacing on-sight art, at a reasonable rate equivalent to the cost of replacing the art in current dollars, as determined by the Public Art Commission. Eligible Expenses for Public Art Funds The Public Art program is receptive to a broad range of styles and media in the arts. Only original, artist-designed and produced unique artworks are considered. Pre-fabricated or mass produced works are not acceptable. The artist typically may not be an employee or have a current business interest or be a relative of the architect, project manager, anyone on the art selection panel, landscape architect or hold that title him/herself. Eligible expenses include:  Sculpture, painting, new media art, light and sound installation, and other original, site specific artworks  Artist-designed amenities (such as streetscapes, paving treatments, lighting treatments, benches, way-finding, water features, etc.)  If artwork is part of a limited edition series, the series must be no larger than 20.  Structural elements to mount, display or secure the artwork  Professional fees for the artist  Additional labor and contracted services required for the production and installation of the work.  Any required permit or certificate fees related to the artwork  Artist’s operating expenses related to the project  Transportation and installation costs for the artwork  Identification plaque installed on site (required) Ineligible Costs:  Mass produced “art objects”, such as play equipment, fountains or statuary objects.  Reproductions, by mechanical or other means, of original works of art, except in the cases of film, video, photography, printmaking or other media arts.  Decorative, ornamental or functional elements that are designed by the building architect as opposed to an artist commissioned for this purpose.  Landscape architecture or gardening except where these elements are designed by the artist or are integral to the work of art.  Services or utilities required to operate or maintain the artwork over time. The final artwork and identification plaque must be installed and confirmed in accordance to plan, prior to the issuance of the Certificate of Occupancy may be issued. The plaque must include, but is not limited to, name of artwork, name of artist, medium, size, City of Palo Alto and be in compliance with Americans with Disabilities Act regulations. Use of Public Art Funds and Project Management fees The Fund shall be used for City-owned art or to support project and/or collection management efforts of the public art program. The funds may be used for the following types of expenses:  Acquisition and installation of temporary or permanent works of art in public places,  Publicly accessible exhibition of art,  Community based public art events,  Project and collection management expenses associated with the Public Art Program, limited to 20% of Public Art Funds Outside of the normal budget process, staff will submit accounting annually to the Council to report how the funds were spent and the plans to spend them for the following year. Staff will provide a report evaluating the program to Council within the first two years of the inclusion of private developers in public art requirement. Creating Vision and Buy-In Through a Public Art Master Planning Process Following best practices in Public Art, a comprehensive Public Art Master Plan is needed to guide the vision and implementation of the future of public art in Palo Alto. We wish to engage the community in multiple discussions and design charettes on the vision of art in public places in Palo Alto and the range of projects that are appropriate and desirable for this community, as well as relevant issues like conservation, collection management, trends in the fields of architecture and public art. The Public Art Master Planning process has been very successful in other communities wishing to grow a responsive and successful public art program. By bridging the desires of the residents with inspiring artists, the process enriches and highlights the cultural fabric of a community. The Public Art Master Plan will engage the community in deciding which types of art opportunities are priorities within Palo Alto in the public realm. The resulting Public Art Master Plan will be an important resource for the City, art consultants and private developers. Upon Council approval of the Public Art Program for Private Development, staff will initiate a Public Art Master Plan process, using a consultant, to work with the public to create a long-term vision for public art in Palo Alto. Budgetary Issues According to internal Planning Dept. data, an approximate forecast of future private development projects over the next three years total a conservative estimated valuation of $275,000,000, excluding Tenant Improvement (TI) projects. This figure is based on conservative estimations from the Planning Department, confirmed at the time of application for a Building permit. Staff expects to exempt current projects in the pipeline that have received their final building permits, which will also bring the number down. If many of those projects are realized and meet the public art requirements, they could bring in as much as $2,000,000 for art projects. A modest amount of those funds could be used to offset operational costs. Since ascertaining valuation of future development projects is at best a guestimate at this point in time, staff has compiled a snapshot of the last three years in order to determine a baseline: FY2013 EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range 1% Percent for Art Budget Range 20% of 1% Ops Fee Range Est. Commercial Additions: $12,485,000 $124,850 $24,970 Est. New Mixed Use Commercial: $17,325,000 $173,000 $34,600 Est. New Commercial Buildings: Up to $ 154,062,637 Up to $1,500,000 Up to $300,000 Est. Commercial Remodels: $51,750,000 $517,500 $ 103,500 Total Job Value Range 1% Percent for Art Budget Range 20% of 1% Ops Fee Range $235,622,637 $2,356,226 $471,245 _____________________________________________________________________________ FY 2012– EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range Percent for Art Budget Range Administrative Fee Range Est. Commercial Additions: $32,278,000 $322,780 $64,556 Est. New Mixed Use Commercial: $8,141,750 $ 81,417 $ 16,283 Est. New Commercial Buildings: $ 88,115,400 $881,154 $176,230 Est. Commercial Remodels: $75,265,500 $752,655 $150,531 Total Job Value Range Percent for Art Budget Range Administrative Fee Range $ 203,800,650 $2,038,006 $ 407,601 FY 2011– EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range Percent for Art Budget Administrative Fee Est. Commercial Additions: $2,174,627 $21,746 $ 4,349 Est. New Mixed Use Commercial: $9,818,382 $ 98,100 $ 19,600 New Commercial Buildings: $ 0 $0 $0 Commercial Remodels: $21,887,492 $218,866 $43,773 Total Job Value Range Percent for Art Budget Administrative Fee $ 33,880,501 $338,712 $67,722 As demonstrated above, there has been a huge increase in private development projects between 2011 and 2013, which would have identified approximately $2.5million for public art for that three year period. It is also important to note that the tenant improvement projects, or remodels, are not captured in the future projections below, although they are reflected in the past three years of building permits above. Thus, the $275,000,000 estimate for the next three years is low, allowing for unpredictable economic shifts and the time needed for the public art allocations to accumulate. We estimate that the new ordinance may generate as much as $2,000,000 for public art in the first three years of implementation. Of that amount, we estimate that at least $200,000 could be available to offset operational expenses associated with running the program. Municipal Ordinance and Public Art Projects Palo Alto has a municipal percent for art policy, which requires one percent of City capital improvement projects to be used for public art. In contrast to the resources that can potentially be generated through a private development percent for art program, the current projection of municipal percent for art projects in the next three years includes $150,000 divided between six identified projects. The art budgets for these projects range from $1,000 to $81,000. There are currently other potential projects that could add to the public art budget, but they have not yet earmarked funds for percent for art. In order for the City’s public art program to foster meaningful creative placemaking -integrating the work of creative professionals, arts organizations and artists into our public spaces in collaboration with the community - the City policy should be amended to provide for earlier identification of municipal percent for art projects and pooling of funds from small projects. The staff anticipates returning to Policy and Services with an updated municipal policy in 2014. Resource Impact Building Structural Capacity Like all public art programs, project management demands a lot of staff time- whether CIP construction projects, conservation or maintenance projects. Those demands mixed with the need for expertise in visual arts, working with artists and the community selection process, and the inherent problems associated with public art projects, plus supporting a commission, require a dedicated leader and manager with a high level of expertise in the field. Currently the Program is staffed by one half-time employee (management specialist) and one program support staff member. The Assistant Director of Community Services/ Director of Arts & Sciences also provides approximately 25% of her time to the program. Due to the demands of the current workload and the additional staffing resources anticipated to support an expanded program, staff plans to evaluate staffing needs and bring forward recommendations as part of the FY2015 budget process based on the analysis of spending on staff, maintenance, project management, capital improvement needs, and in-lieu art program revenue estimates. Approximate Timeline  Fall-Winter 2013 – Ordinance, policy, budget and basic plan approved by City Council.  Spring 2014 - Refinement of Documents for Developers, creation of pool of qualified artists and consultants, projects subject to the policy are identified.  Summer 2014 – RFQ for Strategic Cultural Plan and Public Art Master Plan created and released  Fall-Winter 2014 – Planning Process begins  Spring-Summer 2015 - Adoption of Public Art Master Plan by PAC, and made available to public, art consultants and developers. Report back to Council on progress to date, proposed changes, and evaluation. Impact Palo Alto, like our neighboring communities, struggles with land use issues, zoning and development. It becomes increasingly difficult for each of us to differentiate our City from another as similar developments move into each community. Finding a balance between our economic development needs and the soul of our community is a creative challenge. Palo Alto wants to preserve its sense of its own history and destiny. By implementing percent for art into our development process now, Palo Alto can ensure that we can preserve our cultural and artistic heritage and create new ways to express ourselves as a community. In the first five years of passing this ordinance, Palo Alto will be able to engage the community in creating a Public Art Master Plan, and begin to see the first qualifying private projects become implemented and installed. The next five years will see the implementation of significant, landmark artwork and a steady stream of projects incorporated into private development. At this stage, the presence of the private development percent for art program will become visibly apparent and a vibrant sense of place will emerge in its physical and cultural landscape. More frequent temporary public artworks and related events will become part of Palo Alto’s regular cultural programming. By ten to fifteen years from the implementation of the ordinance, public art will be fully integrated into all areas of the City, from creative bike racks and wayfinding to destination artworks. Palo Alto will be known for its innovation, its engaged community, its environmental commitment and its outstanding public art. The long range implications of expanding the public art policy to include private developments will need to be evaluated within 24 months in order to gauge the full impacts to the budget, staffing and maintenance funds. Because it is difficult to determine from the initial permit process how many projects will actually come to fruition or in what timeframe, estimating the total dollar impacts at this time is difficult. It is expected that the dollar amounts will ebb and flow from year to year and need to be managed conservatively. Policy Implications The expansion of art exhibitions into the public realm is consistent with Community Services section policy C-23, “Explore a way to expand the space available in the community for art exhibitions, classes and other cultural activities.” This process is consistent with policy G-2 of the Governance section, “Use advisory bodies and ad hoc committees to assist City Staff and the City Council on policy issues”. POLICY AND SERVICES COMMITTEE WORKING MINUTES Page 1 of 10 Special Meeting October 8, 2013 Chairperson Kniss called the meeting to order at 6:12 P.M. in the Council Conference Room, 250 Hamilton Avenue, Palo Alto, California. Present: Holman, Klein, Kniss (Chair), Price Absent: Oral Communications None Agenda Items 1. (Former Agenda Item Number 2) Provide Direction Regarding Proposed Public Art Program for Private Developments, Public Art Master Planning Process, and Staffing Plan to Support Public Art Programs. Chair Kniss announced that Agenda Item 2 would be heard first, followed by Agenda Item 1. Rhyena Halpern, Assistant Director of Community Services said the intent of including public art in private development was to reflect the creative and vibrant community, to enhance the visual landscape of the City, and to increase identity and civic pride. Staff researched 70 cities with public art programs to find out how they work with private developers. She noted that there were 48 cities in California that had a public art policy that included private development and said that many cities had an ‘in-lieu’ option for developers, which was to be discussed later. Elise DeMarzo, Management Specialist for the Community Services Department said the qualifying projects must have a commercial development addition or reconstruction over 10,000 square feet, and have a minimum construction value of $200,000; the data for the projects of the past three years did not affect non-franchise business owners. Developers that met the 10,000 square foot requirement and the budget threshold; they WORKING MINUTES Page 2 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 could choose to either commission the artwork or pay the in-lieu fee for the art. She said Staff would assist developers by recommending artists, consultants, and project management assistance, along with advice about best practices in public art. Kathleen Kavanaugh, Public Art Commissioner supported the One Percent for Art Memo. Throughout her career she interviewed developers that spent their time developing real estate in the construction environment. The developer and the artist worked very closely, due to important nuances that needed consideration in art projects. She observed that establishing goals and guidelines for collaboration beforehand helped the success of the final artwork. Chair Kniss asked if the in-lieu option presented a problem. Ms. Kavanaugh remarked that the artwork was traditionally incorporated into the projects she worked on; she was not involved in any in-lieu projects. Council Member Holman asked about in-lieu funding set-aside for a new Staff position. Ms. Halpern recommended up to 20 percent of in-lieu funds to be used for staffing. Staff intended on coming back to address the Fiscal Year (FY) 2015 Staffing Needs. Council Member Holman said the economy was good at the time but the staffing need was ongoing and plans were in place. Ms. Stump clarified that Staff was recommending reimbursement of actual costs up to 20 percent. Staff wanted to focus in on acquiring new art with the use of the fees, along with the project and administrative costs that were used in association with the actual cost of up to 20 percent. The 20 percent was intended for reimbursement of Staff time actually spent in association with the acquiring new pieces of art. Council Member Holman asked if one percent of funds could be used to restore existing artwork on a site that was not required to be maintained. Ms. Stump said there was no clear guidance on that area because it included maintenance on Palo Alto’s existing public art collection. The funds discussed were not meant for restoring or maintaining existing artwork, they were attributed to new artwork. WORKING MINUTES Page 3 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 Council Member Holman clarified that she was discussing the restoration of private development artwork. Ms. Stump remarked that the draft Ordinance said if a developer chose to have artwork on their premises, they would be held responsible for maintenance. She added that if maintenance was needed on private premise artwork, there was a process through the Public Art Commission to receive approval for funding. Council Member Holman clarified that Ms. Stump was talking about new artwork. Ms. Stump said yes and that the drafted Ordinance was prospective. That meant having the Ordinance drafted so that it limited the City’s ability to tax. This was an exception to strict rules regarding impact fees, and was not approved by the people or had not gone through the general proceedings requirements of the City. She clarified she was talking about artwork that dealt with regulatory issues, a newly developed site that required artwork. Developers had the option of paying in-lieu fees; those were funds used to acquire artwork that the City owned, maintained, and used for project management and maintenance. Ms. Halpern added some of the Greg Brown murals were in the Cities collection. The number one challenge with public artwork was the maintenance and conservation of artwork, which was an obligation of the artwork owner. Council Member Holman clarified there was a Greg Brown mural on a public building at the Post Office. She said that some definitions in the Staff Report were not complete. Additionally, in connection with “Finding” and “Purpose” in the Staff Report, she asked if Staff considered adding a “Sense of Place” section to the Ordinance. Ms. Halpern said Staff could add that. Council Member Price said looking at various examples of artwork showed how artwork can change a person’s experience, she added that the issue of a long-term cultural Art Plan was common and showed the basis for a well done Art Program. She also mentioned the significance of how art should have an impact. Many cities had artwork that did not make the types of statements they ought to make. Some of the procedures and techniques transit authorities used in determining artist eligibility and processes in this regard were useful. She remarked on the recognition and fluctuation of resources that came in and how contracting out Staff time and costs were all WORKING MINUTES Page 4 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 helpful suggestions. She wanted Staff to come back with an overall Staffing Plan, including financials, and to embed in the Plan how Palo Alto was able to offer the consulting services to the private sector developer. Ms. Halpern clarified that Staff could be project managers on those private projects or, as needed, they could be contractors. If that did not work, Staff utilized an approved pool of contractors for projects. This allowed the Public Art Program to grow with the market. She said she would go over the Staff Report for clarity on that subject. Council Member Price remarked that she looked forward to the community process as it moved toward the master planning. Ms. Halpern thought impact was the reason there was so much success with the in-lieu option because it was possible to pool funds to make impactful work. She noted that municipalities did not have construction projects and thought the recommendations in the Staff Report were a good way to address that issue in the community. Council Member Klein thought that at the range of the economic cycle, the suggestions Staff offered made a lot of sense. The chart in the Staff Report was useful but the suggestions were limiting because it needed to show the rates that all of the cities charged with regard to the private development aspect. His reasoning behind this was some cities charged more or maybe less than one percent. Chair Kniss clarified that the Policy and Services Committee (Committee) was requesting a sub-chart be made showing all the public art in private development programs before this Item went before the full Council and to have the percentages separately identified in a chart. Council Member Klein agreed and suggested showing what cities were charging on the chart. With regard to exemptions, he was thinking of entities that were excludable, such as private schools. He said there were many private schools in Palo Alto and asked if they were subject to the Ordinance at hand. He asked if Staff wanted to put private schools in a different category. Ms. DeMarzo said she did not notice that private schools were called out for exemptions in her research. She noted that a lot of schools voluntarily brought artwork into their campuses. Council Member Klein remarked there were some private schools that were involved and said there was a lighter touch with regard to private schools. WORKING MINUTES Page 5 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 He wondered why Palo Alto Unified School District (PAUSD) was mentioned with regard to exemptions, since the City did not have any control over them. Ms. Stump wanted to look into that area some more and restated the Ordinance was still in the draft format. Council Member Klein suggested deleting PAUSD from the Ordinance because it could raise political sensitivities for no good reason. Ms. Stump said Staff would take look at that. Council Member Klein asked if, in regard to in-lieu fees, once the developer paid the money to the City, if the City was limited to using the funds toward new projects; he wanted to know how that would be tracked. Ms. Stump said Staff needed to have good accounting on the fund and thought the funds were limited to new projects. The question of public art and in-lieu fees was discussed in the California Supreme Court in the Ehrlich case against Culver City because Culver City was not at one percent; that was possibly where the one percent came from. The court ruled that one percent was a permissible general land-use regulation similar to set-back requirements. The developers challenge was that the fee was an unsupported impact fee. The question was open until the court determined an outcome. The fee needed to be available to the developer’s discretion and needed to be in-lieu to make it closely aligned with the artwork on the building itself. Council Member Klein asked if a smaller developer had to pay one percent, then whatever the City decided to do with that money, like combine it with other smaller payments, would make it more impactful. If tracking the money very carefully was needed, he thought it would create an accounting burden on the Staff. He illustrated an example of a person that spent 1/5 of an hour working on a project that came from a fund of one percent. Ms. Halpern said tracking multiple projects was done by assigning a figure for phases of a project. For example, if there was a $10,000 public artwork project, and there was a selection phase, a fabrication phase, and an instillation phase, Staff tracked the hours in phases. Council Member Klein clarified that he was talking about how a Staff person’s time was divided up during the day if they were not able to use new money for the older artwork. Putting artwork in three phases did not apply to the difference between existing artwork and new artwork. WORKING MINUTES Page 6 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 Ms. DeMarzo noted that Staff in other cities accounted for public art in private development by carefully tracking their time. Ms. Halpern noted Staff was working with Office of Management and Budget (OMB) to ensure Staff was using proper accountability. Ms. Stump said Staff was working with Administrative Services Department as well and there were various standardized methodologies recommended. Greg Betts, Director of Community Services noted that the Committee was familiar with contributions given from a number of different grant programs. Staff assigned different accounting codes per grant so that when the City was audited, it was possible for anyone to see how Staff’s time was divided up. Council Member Klein asked how old the Ehrlich vs. Culver City was. Ms. Stump said she would have to research for more information. Council Member Klein asked if one percent was a restriction and if it was a legal problem if Palo Alto went to 1.25 percent. There was a city listed in the Staff Report at two percent. Ms. Stump remarked that there were several cities that were at two percent. She did not think it was an absolute requirement to stay at one percent and if Council wanted to add another quarter of a percent, she would look into it. Ms. Halpern wanted more input from the Committee on incentivizing the in- lieu option by lowering the one percent to .95 percent. Council Member Klein said he had seen the idea before, in Below Market Rate housing for example. He thought a reduction of that size was not much incentive. He added developers always come in higher than estimated and that might discourage private developers. He thought incentive needed to a lot lower to be a good incentive. Chair Kniss thought One Percent for Art was a good sounding name and thought comparing cities like Santa Monica could be different because they do more development than Palo Alto. The in-lieu costs versus the actual artwork was a balancing act between the like or dislike of a presentation. Art was always going to be relative, and there was always going to be a discussion of who chooses the artwork and weighing different variables, like where the art was going to be situated. WORKING MINUTES Page 7 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 Council Member Klein thought it would be good for Staff to pick out a number of cities, like Santa Monica, to see what their budget was. He did not recommend the City Council be involved in matters of taste. He advocated for public art to be experimental. Chair Kniss said there was intentionally not an appeal to the City Council process woven into this discussion. Council Member Price wanted to discuss exemptions. She noted some affordable housing projects that distinguished between elements produced by an artist, versus art by an architect. She thought it was important to pursue those kinds of projects because affordable housing projects needed artistic enhancement. Additionally she questioned the Staff Report portion that asked developers to assess their level of support; the point that talked about draft contracts with artists that allowed developers flexibility should conditions at the site changed was of interest to her. She wanted to know if it was that there were changes to the site plan, or were there budget modifications being discussed; she wanted to know if there were any examples of what draft contracts with artists looked like. Ms. DeMarzo clarified that developers were considering moving artwork either within the site or off site; one developer said this offered more flexibility for him for the future. Council Member Price wanted clarification on the deaccession, or potential moving of artwork. For example, if a company were to move in the future, she asked if the language for the conditions of approval ensured that the artwork was maintained. Ms. DeMarzo remarked that the artwork was to remain with the building if the building was sold. If the developer decided on deaccession of artwork, the developer needed to notify the City and go through city policies. Council Member Price suggested that Staff add a few transit agencies before going to Council. Ms. Halpern remarked that many transit agencies decided on artwork that could withstand the public space. Council Member Holman noted an inconsistency in the Ordinance regarding the Public Art Requirement for Public Developments and a certificate of occupancy; but she appreciated that being in the Ordinance. She noted a WORKING MINUTES Page 8 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 conflict in the Staff Report regarding payment of in-lieu fees prior to the issuance of building permits. Ms. Stump said Staff was still working on the details of when the Art Program would be integrated with the City standard. Council Member Holman was concerned about art enhancement versus what was important to the project and how the artwork would be integrated into the development of the project. She remarked that the in-lieu fee was a challenging issue and emphasized finding ways to collaborate with the public because a review process was needed for the success of the program. The Ordinance listed exclusive architectural design and study, it did mention permitting fees; she suggested the term “soft costs” be used. She agreed with Council Member Klein that the 95 percent was not incentive enough for developers and liked the sound of One Percent for Art, but was happy calling it Percent for Art. Chair Kniss remarked that developers offered the same suggestions. MOTION: Council Member Price moved, seconded by Council Member Klein to recommend the City Council review and adopt the Staff recommendation: 1. Approve a Public Art Program for Private Developments, including adopting an Ordinance establishing art requirements and other key provisions (Attachment C). 2. Direct Staff and the Public Arts Commission to engage the public in a Public Art Master Plan process that will guide public arts acquisitions and programming under the Public Art Program. 3. Direct Staff to evaluate and bring forward recommendations regarding Public Art staffing, maintenance, project management, capital improvement needs and revenue estimates as part of the FY 2015 Proposed Budget document. 4. Direct Staff to return to the Committee in 2014 with recommendations to update the municipal percent for art policy that applies to City capital improvement projects. Council Member Price looked forward to the discussion of this topic at the Council level. Council Member Holman asked how Staff was going to decide on the percentage. WORKING MINUTES Page 9 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 Ms. Halpern said Staff would eliminate the incentive and keep it at one percent; the in-lieu option was enough of an incentive. Council Member Holman remarked that the Committee discussed making the percentage higher. Ms. Halpern wanted to table this discussion for when they came back to the Committee. Council Member Holman warned that once the percentage was in place, it would be hard to revise. Ms. Stump stated that the Committees input was helpful and observed that the Council and the Committee wanted a few options for the next discussion in terms of the size of the art contribution. She noted that Staff, the City Manager, and the Community Services Director needed to think about presenting some options for next time. She remarked that whatever Council wanted to do with the private contribution should be mirrored with the Cities own contribution. Council Member Holman supported the program and suggested adding to the Ordinance that art contribute to a safer environment. She noted collaboration with other communities and wanted that mentioned in the Ordinance. Ms. Halpern said Staff had a list of five Agenda Items they wanted to bring back to the Committee and community collaboration was one of those Items. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to eliminate the .95 percent developer in-lieu fee. Council Member Klein emphasized these were the Committee’s recommendations. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to leave it at one percent. Chair Kniss commented that Staff leave the one percent and not enable an appeal option for the program. She clarified that the art would be obtained by the property owner. MOTION PASSED: 4-0 WORKING MINUTES Page 10 of 10 Policy & Services Committee Special Meeting Working Minutes 10/8/13 Chair Kniss requested this Item not go on the Consent Calendar. PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Agoura Hills pop. 20,330 Planning and Community Development, City Cultural Arts Council Public and private development 1. A building with a floor area greater than or equal to thirty thousand (30,000) square feet. 2. The alteration or repair of fifty (50%) percent or more of the floor area of such building; 3. Any building that is part of the development of a subdivision of forty (40) or more lots. 1. The minimum allocation for art in public places - 1% of the building valuation. 2. The Developer can opt to pay all or a portion of the minimum allocation into the Art in Public Places Fund 1.25% of the building valuation. In both cases building valuation is computed using the latest building valuation data as set forth by the International Conference of Building Officials (ICBO). 1. The Agoura Hills Code of Ordinances; 2. All projects shall have (i) either receive approval from the Art in Public Places Committee, or (ii) paid a fee to the Art in Public Places Fund. Alameda pop. 74,774 Community Development 0 staff currently Public and private development 1. Commercial, industrial, municipal or residential projects that create 5 or more residential units with building development costs of $250,000 or more 2. Remodels with construction value equal to or more than 50% of replacement cost of building 1% of building development costs, or Program allocation payable in-lieu 1. Public art program on hold 2. Approvals by Public Art Commission Alhambra pop. 83,089 Development and Building Depatment, Arts and Cultural Events Committee Staff Public and private development All new residential development of more than five units, and all commercial, industrial, and public building development projects, with a building valuation exceeding $500,000 as well as any remodeling project with a valuation exceeding $250,000.00 shall be obligated to contribute to the city’s Art in Public Places program. The amount of contribution shall be a percentage of the total building valuation for the development which shall, in most cases, be computed using the latest building valuation data as set forth by the International Conference of Building Officials (ICBO). Contribution obligation can be satisfied in one of the following four ways: 1. Payment in cash of the contribution amount directly to the Art Fund. 2. Donation of an approved art work, equal to or exceeding the value of the contribution amount. 3. Installation of an approved art work, equal to or exceeding the value of the contribution amount. 4. Design of the development in such a manner that it satisfies the contribution obligation pursuant to Chapter 23.81.140 of the Art in Public Places Program, “Architecture as Art.” 12/18/2012 Page 1 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Azusa pop. Economic and Community Development Department, Private development (no requirement for public development) 1. Commercial and industrial development or residential projects of Eight dwelling units or more, with a total building project valuation of $500,000 or more, are required to select, purchase and install permanent outdoor art at the development site, accessible and visible to the general public from public streets. 2. All attached and detached additions to an existing commercial or industrial building, with a valuation (for the addition) $500,000 or more shall also comply with the program. 1% of the total building construction valuation; The maximum Art Allocation per project will be set at $50,000; 1. The developer is responsible for selecting the artist(s) and artwork, provided both meet the program criteria. The Art in Public Places Advisory Committee shall consider each artist and proposed artwork on a case-by-case basis. 2. The developer may opt to pay the Art in Public Places fee established by separate resolution of the city council. Fees collected shall be deposited in the art in public places fund, and will be used to provide art in public places elsewhere in the city. Baldwin Park pop. 75,390 Planning Division Public and private development 1. All new residential development of more than four units, and all commercial, industrial and public development projects, with a building valuation exceeding $50,000. 2. All remodeling of existing residential buildings of more than four units, existing commercial, industrial and public buildings when such remodeling has a valuation exceeding $50,000.00 excluding earthquake rehabilitation. 1% of the total building valuation for an applicable project, excluding land acquisition and off-site improvement costs. 1. Reviewed by the Cultural Affairs Commission 2. Aprovals by the Community Cevelopment Director Bellflower pop. 76,616 Planning Division, Community Development Public and private development 1. All commercial/industrial development projects where the project cost exceeds $250,000, and residential projects of more than 2 lots or units, including single family residential structures, condominiums, apartments, townhouses or other dwelling units, where the project cost exceeds $500,000.00 1% or more of the project cost by acquiring and installing art in a public place or in the vicinity of the project site, as approved by the City Council; or In lieu the developer may make a contribution in an amount equal 1% of the project cost to the Public Arts Fund. 1. Revenue and Finance, Chapter 3.32 (Public Arts Ordinance) 12/18/2012 Page 2 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Beverly Hills pop. 34,358 Community Services 3 FT staff as needed funded by general fund Private development (no requirement for public development) 1. Any new commercial, industrial or mixed use building 2. Reconstruction within any 12 month period where exterior changes exceed $5,000 and total exceeds $500,000 (Renovations exempt if requirement has already been met) 1% of total construction cost between $500,000-$1 million 1.5% of total construction cost over $1 million, or In lieu payment of 90% of the value acceptable 1. Approvals by Fine Art Commission; City Council reviews denials only 2. Admin costs are not tracked 3. Some general fund money may be used for annual maintenance Brea pop. 39,883 Community Services 1 PT staff (15 hrs/wk) funded by general fund Private development (no requirement for public development) 1. Improvements to commercial, industrial or residential structures; or 2. Commercial, industrial or residential projects with 5 dwellings or more with total building valuation of $1.5 million 1% of total building valuation (For projects with multi-level parking structures, the area of one floor will be excluded from the total building valuation) Over 160 artworks in the collection. In the past minimun number of commissions per year - 4; Maximum number of commissions - 10. Average 1% contribution per project - $15,000 - $40,000. amounting to $45,000 - $120,000 up to $150,000-$400,000 per year. City of Brea Art in Public Places Policy Manual (Jan 2013) 1. Approvals by Art in Public Places Committee 2. Admin costs are not tracked 3. No other funding from general fund. Burbank pop. 104,092 Park, Recreation & Community Services 1 FT + 1 PT staff as needed funded by general fund Public and private development 1. Commercial or industrial projects with building valuation higher than $500,000 2. Multifamily residential projects with building valuation higher than $1.5 million 3. Public capital improvement projects over $500,000 not exempt by legal restrictions or City Council 4. Remodels or additions where building valuation is increased by more than 50% 1% of total project cost for first $15 million, plus (if applicable) .75% of total project cost for portion between $15-25 million, plus (if applicable) .50% of total project cost for portion equal to or in excess of $25 million (if applicable), or Minimum allocation payable to in-lieu 1. Parking garages excluded from TPC calculation 2. Approvals by Arts in Public Places Committee and also City Council for public projects 3. Admin costs are not tracked 4. No other funding from general fund Calabasas pop. 23,058 Community Services Department Private development (no requirement for public development) 1. Any contruction or reconstruction of commercial buildings within city limits is assessed a fee for acquisition of artwork based on the total building valuation. 1% of the total building valuation. The maximum fee per project is $150,000.00. 1. Developer can select and submit artists; 2. Reviews by the Art in Public Places Advisory Committee; Approved by the City Council. 12/18/2012 Page 3 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Cathedral City pop. 51,200 Building Department, Community Development Private development (no requirement for public development) 1. All new commercial and industrial use projects over 15,000 square feet of gross floor area. 2. Remodeling, repair or reconstruction of existing commercial and industrial use property, interior or exterior, where the building permit value exceeds $100,000.00 in changes to the building, excluding landscaping and “acts of God.” 1% of the total project valuation; In lieu of acquiring and installing an art work, applicants may contribute an amount equal to 1% of 90% of the total project valuation to the “art in public places fund”. Additionally, the Public Art in Cathedral City has a number of projects sponsored by the public art fund as well as private donations. Cerritos pop. 49,041 Community Development Department Private development (no requirement for public development) 1. All new development projects, including parking structures, residential developments of four units or more, and commercial and industrial development projects with a building valuation or valuations exceeding $250,000 in the aggregate. 2. Projects involving modifications and additions to existing nonresidential buildings, including parking structures or commercial or industrial buildings when such remodeling has a project valuation exceeding $250,000. 1. Payment of an art fee in the amount of 1% of the building permit valuation to the City’s Art in Public Places program, not to exceed four hundred fifty thousand dollars, ($450,000.00); 2. Donation of an art work for art placement approved by the city council, and which has a minimum value of 1% of the value of the proposed project development, not to exceed $450,000; or 3. Placement of art work on the development site approved by the city council, and which shall have a minimum value of 1%of the value of the proposed project development, not to exceed $450,000; or 4. A combination of the above subject to the approval of the city council. Approved by the City Council. 2. On a case-by-case basis architecture may be considered as art. 12/18/2012 Page 4 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Chico pop. 86,290 City Manager's Office 1 FT staff @ 25% funded by general fund Public projects (private development projects are encouraged to participate in a voluntary program) Eligible capital projects with a cost of $200,000 or more 1% of total project cost, or Funds payable to in-lieu 1. Approved by a committee and Arts Commission. Members of the committee depend on the project and how it is funded 2. Admin costs are tracked and billed for capital projects 3. Additional general funds for Community Organization Funding program. Artist mini grants of $2,000 for small projects. Budget was $83,000 for 2011-12 Claremont pop. 34,926 Human Services Public and private development 1. Public capital improvement projects, except street, right-of-way, sewer, and rainage projects, with a building permit valuation of $100,000 or greater; 2. Private development projects including subdivisions, development projects, and remodeling and modifications to existing development projects The minimum allocation for acquisition of artwork shall be based on a percentage ranging from 1/2% to 1% of the project’s total building permit valuation of between $100,000 and $200,000. Applicants for projects for which there is no minimum allocation for acquisition of artwork are encouraged to voluntarily participate in the program. Developer selects, purchases and installs the artwork on its site; or if using an alternative location the artwork should be approved by the Architectural Commission and the owner of the property on which the artwork is to be placed. Culver City pop. 39,165 Cultural Affairs 1 FT staff as needed funded by enterprise fund (transportation) Public and private development For Private Development: 1. New residential development of more than 4 units over $500,000 2. Commercial, industrial and public building development projects over $500,000 3. Rehabilitations/renovations over $250,000 (improvements by new tenants are subject to requirement if threshold is met) 1% of total building cost, excluding land acquisition and off-site improvement costs, or 1% payable to in-lieu, or 1% donation of artwork to the City 1. Building architecture (or component thereof) can be considered art to fulfill requirement with approval 2. Approvals by Cultural Affairs Commission 3. No other funding from general fund 12/18/2012 Page 5 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Downey pop. 111,772 Community Services Department Public and private development For Private Development: 1. Commercial buildings with a building valuation of $500,000 or greater, or residential projects consisting of more than 4 units with a building valuation of $500,000 or greater. 1% of total building valuation of $500,000 or greater. The maximum fee per project is $150,000. Where the installation of art is impractical or inaccessible, the developer will contribute the assessed fees to the Art in Public Places Fund; or Placement of public art, the value of which shall be greater than or equal to the fee, on the project site. The developer is responsible for selecting the artist(s) and artwork, provided both meet the program criteria. The City has a list of art consultants and resource guides with artist listings available for developers. Dublin pop. 46,572 Parks & Community Services 1 FT staff as needed funded by general fund Private development (no requirement for public development) 1. New non-residential development 2. New residential development projects over 20 units (Additions and remodels not included) .5% of building valuation (excluding land), or .5% in-lieu contribution for non- residential buildings more than 50,000 square feet and residential projects over 20 units, or .45% in-lieu contribution for non- residential buildings less than 50,000 square feet 1. Program run in conjunction with Dublin Fine Arts Foundation which commissions pieces with city funds. More than 50 pieces in city collection 2. Some CIP projects receive public art funded by general fund 3. Admin costs are not tracked El Monte pop. 115,965 Economic Development Department Private development (no requirement for public development) 1. Commercial or industrial projects which incur project costs totaling more than $500,000, and 2. Development projects involving new construction of four (4) or more residential dwelling units. 1% of the total project cost 1% in lieu contribution 1. Reviewed by the Art Coordibnator and the Advisory Committee; Approved by the City Council. 12/18/2012 Page 6 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Escondido pop. 143,911 Planning Department Private development (no requirement for public development) 1. All commercial and industrial projects which incur project costs totaling more than $ 500,000; 2. Development projects involving new constuction of 4 or more residential dwelling units. Art fee of $0.30/sq.ft of building area except tenant improvements with no added building area; the first 1800 sq. ft. of any structure; residential additions. 1. Proposals reviewed by the Art Coordibnator and the public art partnership panel; Approved by the City Council. 2. Developer can choose to donate art approved by the public art partnership panel and have a minimum value determined by city council resolution. Emeryville pop. 10,214 Economic Development & Housing 2 staff as needed funded by general fund Public and private development 1. Public building developments and public projects with building costs over $300,000 2. Private building developments and renovations (including new tenant improvements) with building costs over $300,000 (not including residential units) 1.5% of building development cost for public developments 1% of building development cost for private developments, or In-lieu contribution acceptable 1. Approvals by staff for private development and Public Art Committee and City Council for public projects 2. If artwork is less than program allocation, applicant will pay difference to the Public Art Fund 3. Admin costs are not tracked 4. No other funding from general fund Fresno (County and City) pop. 501,362 Fresno Arts Council (County) / Historic Preservation Public and private development Any new development in county and city (no triggers)1% of total project cost using county valuation. City may offer a 20% deviation of valuation in exchange for public art 1. Fresno Arts Council administers selection with input from city, property owner and panel jurors 2. FAC totally funded by developers. No city/county staff time Glendale pop. 191,719 Community Development Department Public and private development For Private Development projects: 1. New buildings and structures, or to the alteration or repair of buildings or structures valued at $500,000 or more as determined by the Building Official. 2. Projects located in the commercial and mixed-use zones. Does not apply to Industrial or Residential zones. 2% of the project value, or In-lieu payment equals 1% of the project value. 1. Approvals by the Design Review authority upon recommendation from the Arts and Culture Commission or other body designated by City Council. 12/18/2012 Page 7 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Inglewood pop. 109,673 Parks, Recreation & Community Services Private development (no requirement for public development) New nonresidential private structures and/or other nonresidential projects that equal or exceed $250,000 1% of total project valuation 1% of total project valuation in lieu Laguna Beach pop. 23,069 Cultural Arts Department 1 FT staff funded by general fund Public and private development 1. Any new commercial, industrial or residential developments of more than 4 units/lots 2. Remodeling of existing commercial, industrial or residential property, over $225,000 in expenditures (includes new tenant improvements) 3. Parks and public works projects or structures over $225,000 in expenditures 1% of total project valuation or 1.25% of total project valuation in lieu 1. Approved by Arts Commission and City Council. If located in the downtown area, Planning Commission must approve location 2. Admin costs are not tracked Livermore pop. 82,039 Community Development (2 FT staff as needed funded by general fund) Public and private development 1. City public works construction or remodel projects (does not include pipeline, power line, or landscape renovation projects or mechanical, structural or seismic upgrades) 2. New commercial, industrial and residential development over 4 units including renovations and remodels (does not include repairs due to calamity, seismic retrofits, residential remodeling or commercial alterations) 3. Additions to existing industrial/commercial buildings with contruction area over 25% of the original square footage of the building 1% of original estimated construction cost for public works projects .33% of construction costs for private development 1. Approved by Arts Commission and City Council 2. Urban Mural Art Program, May Grants, and scholarships for high school students are paid with in-lieu funds 3. The public art must remain on the project site for not less than 30 years. If property is redeveloped, the new project shall meet all art requirements or pay in-lieu fee 4. Program sunsets on 10/01/14 unless otherwise extended by City Council 12/18/2012 Page 8 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Long Beach pop. 462,257 The Arts Council for Long Beach, the Department of Public Art & Design Public and private development Construction, land and parking costs, for either public or private developments beginning at $250,000 1. All projects between $250,000 and $10 million deposit the 1% obligation into the ACLB’s Public Art Fund for general enhancement of the City’s public cultural resources in redevelopment project areas. 2. Projects with a total development cost in excess of $10 million are required to allocate 1% of the total development costs, 85% to on-site public art programs (which may include art works, cultural programming, or cultural facilities), 15% deposited into the ACLB’s Public Art Fund. 3. Projects that include historically designated buildings and landmarks participate based on total development costs as for other development projects. Developers’ plans must be presented to and approved by the ACLB’s Advisory Committee for Public Art. 1. Percent for Public Art Program (2006) for publicly and privately projects. Los Angeles pop. 3,857,799 Department of Cultural Affairs, Public Art Division Public and private development (the Public Works Improvements Arts Program (PWIAP, Percent-for-Public- Art or Public % for Art), the Private Arts Development Fee Program (ADF), the Murals Program, and the City’s Art Collection For Private Development projects: Commercial or industrial buildings with the total value of all construction or work for which the permit is issued is $500,000 or more is required to pay an arts fee, the amount of which will be calculated by the Department of Building & Safety 1. For an office or research and development building the fee is $1.57 per sq ft. 2. All retail establishments pay an arts fee of $1.31 per sq. ft. 3. For a manufacturing building the arts fee is $ 0.51 per sq. ft. 4. For a warehouse building the arts fee is $0.39 per sq. ft. 5. For a hotel building, the arts fee is $0.52 per sq. ft. Additionally, the developer may provide services and community amenities for cultural and artistic purposes in proposed development project which may be credited against the requirement of the payment of an Art Development Fee. 12/18/2012 Page 9 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Lynwood pop. 69,772 Community Development Department, Housing Services Public and private development Commercial or industrial developments, with a total project cost in excess of $100,000 and residential developments, including single-family homes, with a total project cost in excess of $100,000. Project applicants may provide an artwork in a public place on or in the vicinity of the project site, subject to approval by at least three-fifths (3/5) of the entire body of the city council. The cost or value of such artwork shall not be less than the amount of the in-lieu contribution of one and one half percent (1.5%) that would otherwise be made. In the event that the 1.5% of the total project cost exceeds the value or cost of the artwork, the applicant shall pay the difference between the artwork and the 1.5% fee. In lieu of providing an artwork, project applicants shall contribute funds to the art in public place fund equal to 1.5% of the total project cost, unless otherwise provided by the city council. Monrovia pop. 36,590 Public Places Committee Private development (no requirement for public development) Residential development projects involving five or more dwelling units with a project cost in excess of $1 million, and commercial, industrial, office or other non-residential development projects having a project cost in excess of $1 million 1% of the project cost; At the option of the developer, 50% of an in-lieu art fee may be deposited in the Library Improvement Fund, which shall be utilized to acquire, construct or make capital improvements to the Monrovia pubic library facilities. Additionally, the developer can donate a public artwork to the city. Mountain View pop. 75,235 Community Development 2 FT staff as needed funded by general fund Public projects and Precise Plan areas 1. Public projects of $1 million or more (does not include street overlays, etc) 1% of construction budget for public projects 1. Admin policy for public projects; not ordinance 2. Private projects within Precise Plan areas looked at on a case by case basis 3. Funding for public art from general fund for special circumstances only 4. Admin costs are not tracked 12/18/2012 Page 10 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Napa pop. 77,867 Community Development 1 FT staff as needed funded by general fund Public and private development 1. Private, new construction or renovation or remodel, including new tenant improvements in any shell building, over $250,000 (tenants of large commercial projects exempt if art requirement has already been met) 2. City projects over $250,000 excluding underground public works projects, utility facilities with exception of buildings, streets, sidewalks or tree planting 1% of construction cost, excluding residential portion of mixed use projects 1. Private projects approved by reviewing body with final design review authority for project 2. City projects approved by Public Art Steering Committee 3. Admin costs are tracked and billed to private projects 4. Arts Council of Napa Valley sponsors Napa ARTwalk, year-long installations of public sculpture on First Street 5. Public Art Master Plan underway Novato pop. 52,456 Parks, Recreation & Community Services (for public projects) Community Development (for private development) 2 FT staff as needed funded by general fund Public and private development 1. Construction or alteration of a nonresidential building or addition of floor area of an existing building 2. Residential development of 5 or more units (Does not apply to accessory dwelling units and renovations, remodels or additions to existing residences or residential portion of a mixed use project less than 4 units or affordable housing components of residential and nonresidential projects) .33% of the construction cost of the completed development project or .5% of the construction cost in-lieu for nonresidential development or .33% of the construction cost in-lieu for residential development (Developer may pay difference between cost of art installed and the appropriate percentage of the construction cost upon approval) 1. Policy for public projects, no ordinance. Some projects can be exempted 2. DRC reviews private projects; Recreation, Cultural & Community Services Commission reviews public projects 3. Some admin costs billed to private projects but none for public projects 4. Remodels/renovations resulting in an increase of gross square footage not exempt even if art requirement already met Palm Desert pop. 49,561 Public Art Department 2 FT staff funded by Art in Public Places fund Public and private development 1. All individual residential units over $100,000 2. All other residential development including two or more single family dwellings being built concurrently in the same tract by the same owner or contractor 3. All commercial development 4. All public facilities .25% of total building valuation in excess of $100,000 for individual residential units .25% of total building valuation for all other residential development .50% of total valuation for commercial development excluding land acquisition and off-site improvement costs 1% of total building valuation for public facilities, or Program allocation payable in-lieu 1. If artwork is less than program allocation, applicant will also pay difference to in-lieu fund 2. Approvals by Art in Public Places Commission and City Council 3. Admin costs are billed to the Art in Public Places fund 12/18/2012 Page 11 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Palm Springs pop. 44,552 Community and Economic Development, Public Art Division Private development (no requirement for public development) New commercial and industrial works of construction, and remodel or construction of existing commercial or industrial property; New residential subdivisions or developments of two or more over $100,000. 1/2% of the building cost for commercial and industrial construction projects; 1/4% for new residential subdivisions or developments of two or more units Public art requirement may be met as follows: Approved placement of artwork in outdoor areas of the private property in a manner satisfactory to the Public Arts Commission valued at an amount equal to the program allocation. Payment of in-lieu art fees to the City for deposit into the Public Arts Fund in an amount equal to the program allocation. Posting of a financial security in the amount equal to the acquisition and installation costs of an approved artwork, in the form approved by the City Attorney. Acceptance by the Public Arts Commission of a donation of an approved artwork. Pasadena pop. 138,101 Cultural Affairs 2 FTE's funded by general fund and .75 FTE funded by public art fund Public and private development 1. New construction, renovation (tenant improvements excluded unless renovation results in addition of square footage and is over $500,000), multi-family residential, commercial or mixed-use projects over $500,000 in the Downtown Old Pasadena Redevelopment or Northwest Community Plan areas 2. Industrial development over $500,000 in Northwest Pasadena 3. New commercial, industrial or mixed use projects of 25,000 square feet or more within the City of Pasadena 4. New construction, renovation or remodeling of municipal buildings and structures over $250,000, not including exclusively internal projects not accessible to the public or staff 1% of building valuation for private development 1% of actual construction cost excluding architectural, engineering and admin costs, costs for fees and permits and indirect costs for CIP projects, or Program mandate payable in-lieu acceptable 1. For private projects over $500,000 in Old Pasadena and Downtown Redevelopment Area, 25% of the amount goes to City's Cultural Trust fund and 75% to the on site art project. For all other locations, new private projects 25,000 square feet or larger, 20% of the amount goes to Cultural Trust fund and 80% allocated to public art 2. Approvals by Arts & Culture Commission 3. Admin costs are not tracked 4. No other funding for public art 12/18/2012 Page 12 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Petaluma pop. 57,941 Community Development Public and private development Any private or public construction or reconstruction projects in the following zoning districts. Mixed Use (MU1A, MU1B, MU1C, and MU2); Commercial 1(C1); Commercial 2 (C2); Industrial (I); Business Park (BP); Planned Unit district (PUD) and Planned Community District (PCD), except residential PUD’s and PCD’s, but including mixed use; T-5 and T-6 Zones, except projects that are entirely residential, but including mixed use; and any City Zoning district for any public construction project. 1% of the construction cost for a private or public project, including all administrative costs borne by the City Payment of the full amount of the public art in-lieu fee; or, Written proof to the Community Development Department of a contractual agreement to commission or purchase and install the required public artwork on the subject development site and a written acknowledgement by the project artist and the owner or developer, in a form approved by the City Pomona pop. 149,058 Planning Division Public acquisitions, donations and private development For Private Development: 1. New commercial, institutional, and industrial development with a building valuation of $750,000 or more; 2. New residential development with 10 or more units, whether detached single-family residences, condominiums, apartments, townhouses or other dwelling units. 3. Interior and exterior remodeling, repair, modifications, reconstruction, and additions to existing commercial and industrial property where the total building valuation for the project is $750,000 or more; 4. Interior and exterior remodeling, repair modifications, reconstruction, and additions to existing residential property of 10 units or more where the total building valuation is $750,000 or more. 5. Infrastructure improvements including telecommunications, natural resource development, and delivery systems valued at $3 million or more 1% of the construction costs of projects; Alternately, an in-lieu fee in the same amount may be paid to the City for the proposed project. Art in Public Places Program Policies and Guidelines Manual (2011) 12/18/2012 Page 13 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes San Diego pop. 1,326,179 Commission for Arts & Culture 1FT staff funded by Transit Occupancy Tax Public and private development 1. Private, non-residential projects over $6 million, not including churches, hospitals or schools, or any industrial or commercial development not accessible to the public due to national security or safety reasons 2. CIP projects over $250,000 including construction of any building, park, median, bridge, trail, parking facility or above-grade utility with public access or visibility 1% of building permit valuation for private development, or Payment of .5% in lieu of art 2% of eligible project funds for CIP projects (Only the portion attributed to the commercial or industrial component shall be used to calculate the obligation for mixed-use projects) 1. Council policy for public projects; not ordinance 2. Approvals by Public Art Committee and Commission for Arts and Culture 3. Admin costs are not tracked 4. No other funding from general fund San Francisco pop. 825,863 Arts Commission Public and private development For Private Development: Non-Residential Development Projects with: 1. Public open space requirements greater than 1,499 square feet but less than 3,000 square feet that provide ground floor open space shall provide on-site public art of a value equivalent to the Public Art Fee up to a value of $500,000. 2. Public open space requirements greater than or equal to 3,000 square feet that provide ground floor open space shall provide on-site public art of a value equivalent to the Public Art Fee up to a value of $750,000. Residential Development Projects: 1. Project sponsor may elect to use 100% of the Public Art Fee to provide on-site public artwork. 2. As of the effective date of Ordinance No. 62-12, for a project that has not received its first construction document, the project sponsor may pay the Public Art Fee for deposit in the Public Artwork Trust Fund. 3. As of the effective date of Ordinance No. 62-12, for a project that has not received its first construction document, the project sponsor may elect to expend a portion of the Public Art Fee for the acquisition of on-site public artwork and deposit the remaining balance of the Public Art Fee into the Public Artwork Trust Fund 1% of the construction cost of the building or addition. In any case where the Public Art Fee requirement exceeds the amount required on-site, the project sponsor shall elect one of the following options to fulfill any requirements imposed as a condition of approval: a) to expend the remainder of the Public Art Fee on-site, b) to deposit the remainder of the Public Art Fee into the Public Artwork Trust Fund, or c) to expend a portion of the remainder on-site and deposit the rest into the Public Artwork Trust Fund 12/18/2012 Page 14 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes San Jose pop. 967,487 Economic Development CIP projects and some eligible private developments City CIP projects 1% of construction cost, including engineering and design fees, and land if city acquisition for project 2% for former redevelopment districts 1. Public Art subcommittee oversees selection, acquisition, placement and maintenance 2. Update PAMP 2007, Public Art NEXT!, defines proactive goals San Luis Obispo pop. 45,525 Parks & Recreation 1 FT as needed + 1 PT funded by general fund Public and private development 1. All eligible CIP projects including parks, plazas, creek improvements, flood protection projects, bridges, streets, sidewalks, bikeways, trails, parking facilities or similar public facilities. Does not include utility or underground projects 2. New non-residential development or remodels over $100,000, excluding construction, repair or alterations to meet city mandated seismic rehabilitation or fire lateral replacement or individual tenant improvements 1% of project construction cost not including land acquisition, design, operation or maintenance costs for CIP projects .5% of total construction cost in excess of $100,000 not to exceed $50,000 for non-residential development, or In-lieu payment acceptable 1. Approvals by Cultural Heritage Committee, Planning Commission and/or Park & Recreation Commission or Mass Transportation Committee as appropriate; Architectural Review Commission and City Council San Mateo pop. 98,391 Community Development 1 FT staff as needed funded by multiple funds within CDD Private development (no requirement for public development) Commercial development and multi-family projects over $3 million, including reconstruction projects over 50% of replacement value of existing building based upon construction costs at time of project approval .5% of total building valuation excluding land acquisition and off-site improvement costs, or Program allocation payable in-lieu 1. If artwork is less than program allocation, applicant will also pay difference to Art in Public Places fund 2. Approvals by Civic Arts Committee. City Council also approves public projects from in-lieu funds 3. Admin costs are not tracked San Ramon pop. 73,333 Parks & Community Services 2 FT staff as needed funded by general fund Private development (no requirement for public development) Any new office or commercial development No specific dollar amount; proposed art should be commensurate with scope and size of project 1. Condition of approval for permit; no ordinance 2. $30,000 allocated annually to a park project funded by the Beautification Fund (paid by developers) 3. Approvals by Arts Advisory Committee and Parks and Community Services Commission and by City Council for projects over $50,000 12/18/2012 Page 15 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Santa Fe Springs pop. 16,223 Library and Cultural Services Private development (no requirement for public development) 1. New residential, commercial, or industrial development having total project costs of $300,000 or more 2. Expansion, remodeling of, or tenant improvements to existing buildings when any such work has a building permit valuation of $300,000 or more. 1% of the total project costs excluding land. In- lieu payment to the Heritage Artwork in Public Places Fund equals 1% of the total Project Costs excluding land. 1. The developer acquires and installs artwork in a public place on or in the vicinity of the project site as approved by the City Council. 2. Alternately the developer may provide artwork in a public place not on the developer’s property, subject to approval by the City Council. This may be permitted if the City Council and the developer agree that installing the artwork on the developer’s property would not achieve the purposes of the Heritage Artwork in Public Places Program. Santa Monica pop. 90,377 Community & Cultural Services Department 1 FT staff funded by general fund Public and private development 1. Commercial development with new gross floor area of 7,500 square feet or more 2. Commercial remodels/tenant improvements of 25,000 square feet or more 3. Residential projects over 4 units 4. Eligible capital project including remodels or renovations of any building, park, sidewalk, street, parking facility, utility or decorative structure 2% of average square foot cost of construction for commercial development 1% of total budget for capital projects, or 1% of average square foot cost of construction in-lieu 1. Approvals by Arts Commission or Public Art Committee if designated by Commission. 2. Admin costs are tracked and billed to projects 3. No other funding from general fund 12/18/2012 Page 16 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Santa Rosa pop. 167,815 Community Development Department Private development (no requirement for public development) Any commercial development project (excluding industrial) in excess of $500,000 valuation 1% of value of the project, or In-lieu payment acceptable. Ordinanace adopted in 2006. In lieu contributions: FY07/08 - $19,355.00 FY08/09 - $112,000.00 FY09/10 - $124,303.00 FY10/11 - $114,105.00 FY11/12 - $83,880.00 FY12/13 - $69,000.00 Art fees total since 2007: $523,000.00 Art on Site since 2007 - Total $512,306.00 (17 artwork commissioned) Approvals by the Director of Recreation and ParksSunnyvale pop. 142,287 Department of Library & Community Services 1 FT staff as needed funded by general fund Public and private development 1. Non-residential development or expansion projects 2. Eligible publicly funded projects over $1 million or renovation projects over $100,000, excluding underground or utility projects, streets, sidewalks, landscaping or traffic improvements 1% of construction cost for private development 1% of project valuation for public projects, or In-lieu payment acceptable 1. Approvals by Arts Commission and City Council 2. Admin costs are not tracked 3. No other funding for public art West Hollywood pop. 34,650 Economic Development 2 FT staff as needed + 2 PT (approx 20 hrs/week) funded by general fund Private development (no requirement for public development) New development or alteration/repair that increases total gross floor area and is over $200,000. Existing buildings that are remodeled with a construction cost greater than or equal to 50% of the replacement cost of the building 1% of value of the project, or In-lieu payment acceptable 1. No ordinance but City places public art in public projects voluntarily 2. Approvals by Arts & Cultural Affairs Commission 3. Admin costs are not tracked Westlake Village pop. 8,270 Planning Department Private development (no requirement for public development) Commercial , industrial, office or other nonresidential development projects with a calculated value of at least one hundred thousand dollars $100,000 1% of the project value Payment of an in-lieu are fee in the amount of 1.25% of the project value If the value of the public artwork approved by the City Council is less than 1% of the project value, then the difference is paid to the art in public places fund. 12/18/2012 Page 17 PUBLIC ART SURVEY City Department Funding Parameters Valuation Notes Walnut Creek pop. 66,584 Arts, Recreation & Community Services 1 FT + 1 PT staff as needed funded by general fund Public and private development All city construction projects more than 15,000 square feet or over $750,000 construction cost Construction or alteration of a nonresidential building over 15,000 square feet 1% of construction cost for city projects .5% of construction cost for nonresidential building between 15,000 and 25,000 square feet, or 1% of construction cost for projects over 25,000 square feet, or In-lieu payment acceptable 1. Approvals by Arts Commission and Design Review Commission 2. Admin costs are not tracked 3. No other funding for public art 12/18/2012 Page 18 Process for Percent for Art in Private Development that go through Planning Initial Entitlement Meeting with Planning Developer notified of percent for art requirement. An estimated art budget is calculated based on the estimated construction valuation of the project. 1% of that valuation will provide the initial estimate for the art budget. If the art budget is over $15,000 and the Developer chooses to commission art on site: Planning Notifies Public Art Manager of Project and Developer must meet with Public Art Manager early in entitlement review process. In that meeting, Developer will be given more information on the process, sample contracts and lists of approved art consultants. If Public Art budget is under $15,000 or the Developer chooses the in lieu option: Developer pays into Public Art Trust and receives a letter from the Public Art Office confirming completion of Percent for Art requirement. No further action required until building permit application. Initial Review by Public Art Commission – Developer must present the plan to integrate public art into the development, including the process by which the art will be selected and types of art that may be suitable on site. Gain input from PAC. Final Approval by Public Art Commission of the selected artist and artwork for the site. This must occur prior to application for Building Permit. Building Permit Application must show completion of percent for art requirement by payment to Trust or final approval from PAC. If percent for art value is higher than what was estimated at Entitlement phase, then the difference in funds will be paid to the Trust. When final inspection for the Certificate of Occupancy is completed, public art staff must confirm that artwork was installed as approved by PAC prior to C of O issuance. FY2013 EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range 1% Percent for Art Budget Range 20% of 1% Ops Fee Range Est. Commercial Additions: $12,485,000 $124,850 $24,970 Est. New Mixed Use Commercial: $17,325,000 $173,000 $34,600 Est. New Commercial Buildings: Up to $ 154,062,637 Up to $1,500,000 Up to $300,000 Est. Commercial Remodels: $51,750,000 $517,500 $ 103,500 Total Job Value Range 1% Percent for Art Budget Range 20% of 1% Ops Fee Range $235,622,637 $2,356,226 $471,245 _____________________________________________________________________________ FY 2012– EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range Percent for Art Budget Range Administrative Fee Range Est. Commercial Additions: $32,278,000 $322,780 $64,556 Est. New Mixed Use Commercial: $8,141,750 $ 81,417 $ 16,283 Est. New Commercial Buildings: $ 88,115,400 $881,154 $176,230 Est. Commercial Remodels: $75,265,500 $752,655 $150,531 Total Job Value Range Percent for Art Budget Range Administrative Fee Range $ 203,800,650 $2,038,006 $ 407,601 FY 2011– EST. PRIVATE DEVELOPMENT PROJECTS ELIGIBLE FOR PUBLIC ART ORDINANCE Total Job Value Range Percent for Art Budget Administrative Fee Est. Commercial Additions: $2,174,627 $21,746 $ 4,349 Est. New Mixed Use Commercial: $9,818,382 $ 98,100 $ 19,600 New Commercial Buildings: $ 0 $0 $0 Commercial Remodels: $21,887,492 $218,866 $43,773 Total Job Value Range Percent for Art Budget Administrative Fee $ 33,880,501 $338,712 $67,722 City of Palo Alto (ID # 4264) City Council Staff Report Report Type: Action Items Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: 240 Hamilton Avenue Appeal Title: Public Hearing: Approval of a Mitigated Negative Declaration and Record of Land Use Action for an Architectural Review Approval for the Demolition of an Existing 7,000 square-foot, Two–story Commercial Building and the Construction of a four-story, 50-foot, Mixed-use Building with a New Floor Area of 15,000 square feet, Including a Non-appealed Variance to Encroach into the Required Seven-foot Special Setback along Hamilton Avenue and to Encroach into the Required Six-foot Special Setback along Ramona Street, on a Parcel Zoned CD-C(GF)(P) located at 240 Hamilton Avenue (STAFF REQUESTS THIS ITEM BE CONTINUED TO A DATE UNCERTAIN) From: City Manager Lead Department: Planning & Transportation Commission Staff requests this item be continued to a date uncertain. City of Palo Alto (ID # 4213) City Council Staff Report Report Type: Action Items Meeting Date: 11/12/2013 City of Palo Alto Page 1 Summary Title: Public Hearing: TEFRA Request; Adopt a Resolution Approving the issuance of the Bonds by the CMFA Title: Tefra Hearing Regarding Conduit Financing for the Gideon Hausner Jewish Day School Project Located at 450, 470, 490 And 560 San Antonio Road, Palo Alto, and Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement and Equipping of Various Educational Facilities and Certain Other Matters Relating Thereto From: City Manager Lead Department: Administrative Services Recommendation 1) Conduct a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA) and the Internal Revenue Code of 1986, as amended (Code); and 2) Adopt a resolution (Attachment A) approving the issuance of the bonds by the California Municipal Finance Authority (CMFA) for the benefit of Gideon Hausner Jewish Day School, Inc. Executive Summary Gideon Hausner Jewish Day School, Inc., requested that CMFA serve as the municipal issuer of tax exempt revenue bonds in an aggregate principal amount not to exceed $14,000,000. Proceeds will be used to redeem previously issued bonds and to reimburse the School for prior capital costs. To issue these bonds under federal law (TEFRA) and the Internal Revenue Service Code, elected representatives of the host government must conduct a public hearing and approve issuance of the bonds. Since the Gideon Hausner School facilities are located on San Antonio Road within City limits, the School and CMFA have requested this hearing. The bond issuance is the sole responsibility of the Gideon Hausner Jewish Day School, Inc. and the City of Palo Alto will have no financial, legal, moral obligation, liability or responsibility for repayment of the bonds. City of Palo Alto Page 2 Background Gideon Hausner Jewish Day School, Inc. requested that the CMFA serve as the municipal issuer of bonds for the Gideon Hausner Jewish Day School project in an aggregate principal amount not to exceed $14,000,000 of tax exempt revenue bonds. Proceeds from the issuance of the bonds will be used to: redeeming in full the California Municipal Finance Authority Variable Rate Demand Revenue Bonds (Gideon Hausner Jewish Day School) Series 2008; (2) paying and/or reimbursing the School for the costs of constructing, improving, renovating, furnishing and/or equipping of educational facilities and related administrative and support facilities at the School's campus located at 450, 470, 490 and 560 San Antonio Road, Palo Alto, California 94306, including but not limited to the demolition of pre-existing buildings and construction of additional educational facilities, including but not limited to a full size gymnasium, a performing arts facility and multipurpose facilities; and (3) paying costs of issuance with respect to the Loan (collectively, the “Project”). The Project will be owned and operated by the Corporation. In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of Palo Alto must conduct a public hearing (TEFRA Hearing), providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the project. Prior to the hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA hearing, an “applicable elected representative” of the governmental unit hosting the proposed project must provide its approval of the issuance of the bonds for the financing of the project. Discussion Since the facilities to be financed with the proceeds of the CMFA’s debt are located within the jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA hearing and adopt a resolution (Attachment A) that approves both the issuance of bonds by the CMFA for the benefit of Gideon Hausner Jewish Day School. As cited in the published notice of October 25, 2013 in the San Jose Mercury News and the Palo Alto Weekly, the public hearing is simply an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the debt and the nature or location of the facility to be financed; however, there is no formal obligation on the part of the borrower or the Council to respond to any specific comments made during the hearing or submitted in writing. The financing includes, but is not limited to, financing acquisition, construction, improvement, and equipping of educational facilities and certain other matters relating thereto located at 450, 470, 490 and 560 San Antonio Road, Palo Alto, California 94306. City of Palo Alto Page 3 The CMFA is a joint exercise of powers authority that the City became a member of on April 14, 2008. The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members executing such agreement. The bonds to be issued by the CMFA for the project will be the sole responsibility of the borrower, and the City of Palo Alto will have no financial, legal, moral obligation, liability or responsibility for the project or the repayment of the bonds for the financing of the project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City of Palo Alto or the State of California but are to be paid for solely from funds provided by the borrower. The City is in no way exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA does not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the bonds will be required. Based on the benefits of the project to the Palo Alto community and the lack of any financial obligations on the part of the City, staff recommends that Council approve the attached resolution. Resource Impact As stated, the City will incur no financial obligation from approval of the recommendations. Gideon Hausner Jewish Day School, Inc. is requesting authority to issue up to $14 million in bonds through the CMFA. The City will receive a fee for its services when the bonds are issued. The City would receive approximately $7,000 if the par amount of the bonds issued is $14 million. Policy Implications Actions recommended in this report are consistent with Council’s prior actions in supporting non-profit financings under TEFRA. Environmental Review Action on this item does not constitute a project under Section 21065 of the Public Resources Code. Attachments:  Attachment A: Resolution Gideon Hausner Jewish Day School TEFRA (PDF) NOT YET APPROVED 131029 jb 0131150 Resolution No. _____ Resolution of the City Council of the City of Palo Alto Approving the Issuance of Tax- Exempt Obligations of the California Municipal Finance Authority in an Aggregate Principal Amount Not To Exceed $14,000,000 for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement and Equipping of Various Educational Facilities and Certain Other Matters Relating Thereto A. Gideon Hausner Jewish Day School, a California nonprofit religious corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “School”), has requested that the California Municipal Finance Authority (the “Authority”) participate in the issuance of one or more series of tax exempt loans in an aggregate principal amount not to exceed $14,000,000 (collectively, the “Loan”) for the purposes of (1) redeeming in full the California Municipal Finance Authority Variable Rate Demand Revenue Bonds (Gideon Hausner Jewish Day School) Series 2008; (2) paying and/or reimbursing the School for the costs of constructing, improving, renovating, furnishing and/or equipping of educational facilities and related administrative and support facilities at the School's campus located at 450, 470, 490 and 560 San Antonio Road, Palo Alto, California 94306, including but not limited to the demolition of pre-existing buildings and construction of additional educational facilities, including but not limited to a full size gymnasium, a performing arts facility and multipurpose facilities; and (3) paying costs of issuance with respect to the Loan (collectively, the “Project”). B. Pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the “Code”), the issuance of the Loan by the Authority must be approved by the City because the Project is to be located within the territorial limits of the City. C. The City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Loan under Section 147(f) of the Code. D. The Authority has requested that the City Council approve the issuance of the Loan by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City. E. Pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Loan, and now desires to approve the issuance of the Loan by the Authority. The City Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The City Council hereby approves the issuance of the Loan by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Loan by the Authority for the purposes of: (a) Section 147(f) of the Code, by the applicable elected representative of the governmental unit having jurisdiction over the area in 131029 jb 0131150 which the Project is to be located, in accordance with said Section 147(f), and (b) Section 4 of the Agreement. SECTION 2. The issuance of the Loan shall be subject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to repayment or administration of the Loan. SECTION 3. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing with respect to the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary with respect to the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. SECTION 4. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. SECTION 5. This resolution shall take effect immediately upon its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ___________________________ Senior Assistant City Attorney City Manager or Designee ___________________________ Director of Administrative Services