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HomeMy WebLinkAbout2003-11-17 City Council (4)TO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE:NOVEMBER 17, 2003 CMR:519:03 SUBJECT:~OPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO APPLY FOR A GRANT AND EXECUTE AN AGREEMENT WITH THE CALIFORNIA COASTAL COMMISSION FOR A GRANT FOR THE ACQUISITION OF THE PENINSULA OPEN SPACE TRUST ARASTRADERO PROPERTY, AND ASSOCIATED ACTIONS NECESSARY FOR RAISING MATCHING FUNDS RECOMMENDATION Staff recommends that Council approve the attached resolution to: ¯ Authorize the submittal of a grant application to the CaliforniaState Coastal Commission for $1,800,000 for the acquisition of the 13-acre Peninsula Open Space Trust (POST) Arastradero Property. Authorize the City Manager or his designee, as the person responsible for the administration of the grant, including certifications and any amendments, on behalf of the City. Authorize the City Manager to seek a no-interest, five-year loan in the amount of up to $1,000,000 from the Coastal Commission to satisfy part of the City’s matching contribution requirement. Staff also recolmnends that Council authorize the Mayor to: ¯ Contact State legislators to request specified funding in the State of California budget from the 2002 Resources Bond Act (Proposition 40) for the acquisition of the POST property. Contact Santa Clara County Supervisors to request pass-through funding from the 2002 Resources Bond Act (Proposition 40) Per Capita grant program for the acquisition of the POST property. BACKGROUND The Arastradero Preserve extends from the western .boundary of Stanford University, to the eastern edge of the City-owned Foothills Park, and from the northern town limit of CMR:519:03 Page 1 of 4 Los Altos Hills to John Marthens Lane. The Preserve was purchased in 1979 as the result of an inverse condemnation lawsuit against the City of Palo Alto brought by Arastra LTD. One 13-acre in-holding of land along Arastradero Road not belonging to Arastra LTD remained privately held by Jacqueline Bressler until the property was purchased in October 2002 at a bankruptcy auction by the Peninsula Open Space Trust for $3,560,000. The parcel was purchased by POST with the intent of preventing the parcel from being developed. The Peninsula Open Space Trust is a non-profit land trust corporation dedicated to "preserving the beauty, character and diversity of the San Francisco Peninsula" through land conservation. Since its inception in 1977, POST has protected more than 50,000 acres of open space land on the Peninsula. Land purchased by POST is generally repurchased by the Midpeninsula Regional Open Space District, Santa Clara County Parks or local jurisdictions. The California State Coastal Commission through the Coastal Conservancy provides grant funds to acquire, preserve and protect lands of the San Francisco Bay estuary and the associated watershed and habitat. Although the POST Arastradero Property is nearly four miles inland from the Bay, the property is considered prime watershed at the headwaters of Matadero, Los Trancos and San Francisquito Creeks, and as such, worthy for conserving as open space land. The Coastal Conservancy will consider a grant application for $1,800,000, or half of the cost of aquiring the property. The balance of funds needed for the City’s match may come from a combination of a no-interest loan from the Coastal Commission for up to $1,000,000; impact fees; funds from other State Resource Bond Act programs; fund raising; or other grant programs for habitat protection. Per Capita Grant Funds In March 2002, California voters approved Proposition 40, the Resources Bond Act. This act is intended to revive state stewardship of natural resources by investing in neighborhood and regional parks and open spaces, and clean water protection. This program is administered by the California Department of Parks and Recreation. Funds are provided to cities, counties, eligible districts and regional park districts based on the population found within the boundaries of these jurisdictions. The jurisdiction may decide how these funds are used. Per capita funds, amounting to $288,000, can be spent on any appropriate park or recreational project of the City’s choice. Staff is considering the most appropriate use for these particular funds, which may include the development of new soccer fields at Greer and E1 Camino Parks or the enhancement of the ’South of Forest Street’ Park. Santa Clara County will receive $3,456,000 in non-restricted grant funds from this same program. It is possible for the City of Palo Alto, as a municipal government, to seek a "pass-through" CMR:519:03 Page 2 of 4 grant from Santa Clara County for land acquisition or improvement .of recreational facilities. DISCUSSION The 13-acre POST Arastradero Property is highly desirable to the City of Palo Alto for purchase not only because it would preserve this in-holding in the center of the Preserve as open space, but because it is important riparian habitat that could support a multitude of wild bird and animal species. Another key benefit from acquiring this property would be that a popular recreational trail that leads from the Preserve parking lot to Arastradero Lake could be re-routed away from more environmentally sensitive habitat and along a shorter gently sloping path that would provide better access for physically limited park visitors. POST has offered the City of Palo Alto the opportunity to purchase the Arastradero Property for $3,560,000, the same price it paid for the property. POST will give the City of Palo Alto until October 2005 to purchase the property. If the City is unable or unwilling to purchase the property, the parcel will be offered for open sale. Staff has developed an application for a $1,800,000 grant from the Coastal Conservancy. As part of the grant application, the City will need to identify the funding sources that will make up the matching (50%) funds required for the acquisition. RESOURCE IMPACT Work covered by the grant application has been included in the work program for Community Services staff. Approval of the grant will not affect other scheduled park or community facility projects or their completion timelines. The acquisition of this property will not significantly increase Open Space Division operational expenses because the property is completely surrounded by the Arastradero Preserve and can be easily monitored by existing staff from adjoining trails and roads. The Coastal Conservancy grant will require a 50% match from the City of Palo Alto. Staff is actively pursuing a number of viable methods to raise the balance of approximately $1,800,000 needed to acquire the property. With Council approval, these methods will include: An application from the Coastal Commission for a no-interest, five-year loan in the amount of $1,000,000 that could be repaid by park impact fees ¯An application to the Oak Woodland Conservation grant program for $200,000 ¯An application to the Habitat Conservation Grant program for $50,000 ¯A partnership with Santa Clara County for pass-through per capita funding CMR:519:03 Page 3 of 4 ¯A specified funding allocation in the California State budget (from 2002 Resource Bond Act funds) ¯Private donations ¯Foundation grants POLICY IMPLICATIONS These recommendations are consistent with existing City policy and furthers Policy N-2 of the Natural Environment element of the Comprehensive Plan in that it seeks to acquire land to be conserved as open space. ENVIRONMENTAL REVIEW The application for a grant for land acquisition is considered an action exempt under Section 15307 of the California Environmental Quality Act; therefore, no environmental assessment is needed at this time. Environmental review will be conducted prior to the adoption of any conservation plan for the property. ATTACHMENTS Attachment A:Resolution Authorizing the Filing of Application to the State of California Coastal Commission for the Coastal Conservancy for land acquisition funding PREPARED BY: GREG BETTS Superintendent, Open Space & Sciences DEPARTMENT HEAD: ~-.._.~. PAUL T. THILTGEN~¢~~-~ // Director of Community Se"r~i - " CITY MANAGER APPROVAL’." ................... WILY nA ON Assistant City Manager CMR:519:03 Page 4 of 4 NOT YET APPROVED P~ESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE CITY MANAGER TO SUBMIT A GRANT APPLICATION TO AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA STATE COASTAL CONSERVANCY FOR FUNDS WHICH THE CITY INTENDS TO EXPEND ON ACQUISITION OF THE 13-ACRE ARASTRADERO PROPERTY OWNED BY THE PENINSULA OPEN SPACE TRUST (POST) WHEREAS,the California State Coastal Conservancy~ provides grant funds to acquire, preserve and protect lands of the San Francisco Bay Estuary and the associated watershed; and WHEREAS, the California State Coastal Conservancy accepts, annually, grant applications for projects that preserve and protect marsh habitat and watershed lands around the bay; and WHEREAS, the City of Palo Alto wishes to submit a grant application for a grant in the amount of $1,800,000.00 to reimburse the City for funds that are proposed to be expended to acquire from the Peninsula Open Space Trust for open space purposes a 13-acre parcel of land known as the Arastradero Property. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as fol!ows: SECTION i. The Council hereby authorizes the City Manager to execute and file a grant application on behalf of the City of Palo Alto with the California State Coastal Conservancy in order that the City may be reimbursed for funds which the City proposes to expend on acquisition of the Arastradero Property. SECTION 2. The Council hereby designates the City Manager or his designee as the person responsible for the administration of the grant application and, if awarded, the grant agreement. SECTION 3. The City Council hereby approves the terms and conditions of the form grant agreement attached hereto as Attachment !, and hereby authorizes the City Manager or his designee to execute on behalf of the City of Palo Alto a grant agreement with the California State Coastal Conservancy, substantially in the form attached hereto as Attachment i, and 031112 sm 0100153 NOT YET APPROVED any other documents that may be required in connection with the grant for acquisition of the Arastradero Property SECTION 4. The Council finds that the adoption of this resolution, which authorizes the submittal of a grant application and execution of a grant agreement and related documents in connection with the acquisition of the Arastradero Property, is exempt from the requirements of the California Environmental Quality Act as an acquisition of open space land (CEQA Guidelines section 15307). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: City Attorney Mayor City Manager Director of Community Services Director of Administrative Services 031 ] 12 sm 0100153 Grantee’s full, legal name: City of Palo Alto Address: 1451 Middlefield Road Palo Alto, CA 94301 Phone No.: (650) 617-3112 Name of Contact: Title of Contact: Taxpayer ID Number 94-6000389 SCOPE OF AGREEMENT Pursuant to Chapter 4.5 of Division 21 of the California Public Resources Code, the State Coastal Conservancy ("the Conservancy’’) hereby grants to City of Palo Alto (°’the grantee") a sum not to exceed dollars ($00), subject to the terms and conditions of this agreement. These funds shall be used by the grantee for land acquisition of a 13-acre parcel located in Palo Alto known as the POST Arastradero Property adjacent to the Arastradero Preserve ("the project"). The grantee shall carry out the project in accordance with this agreement, site-specific plans and a budget to be approved by the Executive Officer of the Conservancy ("the Executive Officer") pursuant to this agreement. The grantee shall provide any funds beyond those ~anted under this agreement which are needed to complete the project (acquisition). ATTACHMENT i CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT AND ADDITIONAL GRANT CONDITIONS The grantee shall not commence the project and the Conservancy shall not be obligated to disburse any funds under this agreement unless and until the following conditions precedent have been met: 1.A resolution has been adopted by the City Council of the grantee authorizing the execution of this agreement and approving its terms and conditions 2.The Executive Officer has approved in writing: a. The plans for acquisition of the property. b. All contractors that the grantee intends to employ in connection with the project. The grantee must provide written evidence to the Conservancy that each contractor has complied with the bonding requirements described in the "BONDING" section of this agreement. 3. Written evidence has been provided to the Conservancy: a.That all permits and approvals necessary to the completion of the project under applicable local, state and federal laws and regulations have been obtained. b.That the grantee has provided for liability insurance and an additional insured endorsement, or is self-insured, as described in the "LIABILITY" section of this agreement. 4.Additionally, no funds shall be disbursed under this agreement until the grantee has provided the Executive Officer with evidence that all other public funds needed to implement and complete the project are available. TERM OF AGREEMENT This agreement shall be deemed executed and effective when signed by both parties and received in the offices of the Conservancy together with the resolution described in the "conditions precedent to commencement of project acquisition and disbursement and additional grant conditions." An authorized representative of the grantee shal! sign the first page of the originals of this agreement in ink. This agreement shalt run from its effective date through October 3 I, 2006 ("the termination date") unless otherwise terminated or amended as provided in this agreement. However, all work shall be completed by October 31, 2005 ("the completion date"). The grantee shall submit a final Request for Disbursement no later than November 30, 2005. ("the final invoice date"). AUTHORIZATION The signature of the Executive Officer of the Conservancy on this agreement certifies that at its meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit __. This agreement is executed pursuant to that authorization. This agreement is funded through two CALFED Bay-Delta Program (CALFED) grants to the Conservancy: 1) a grant through CALFED of Federal (United States Fish and Wildlife Service ("USFWS")) funds; and 2) a second grant through CALFED of State (California Department of Natural Resources) funds. Standard Provisions SITE-SPECIFIC PLANS AND WORK PROGRAM Prior to initiating the project, the grantee shall submit the following to the Executive Officer for review and written approva! of its consistency with this agreement: 1.Site-specific plans, including mitigation and monitoring measures, for the acquisition of the property. 2.A detailed project budget. The project budget shall describe all labor and materials costs to be incurred to complete the acquisition of the property. For each project component, the project budget shall list all intended funding sources, including the Conservancy’s grant, the grantee’s contribution and all other sources of monies, materials, or labor. The site-specific plans and detailed budget shall have the same effect as if included in the text of this agreement. However, the site-specific plans and budget may be modified without amendment of this agreement upon the grantee’s submission of modified site-specific plans and budget and the Executive Officer’s written approval of it. If this agreement and the site-specific plans and budget are inconsistent, the agreement shall control. The grantee shall carry out the project in accordance with the approved site-specific plans and . budget. BONDING If the grantee intends to use any contractor(s) on any portion of the project to be funded under this agreement, the project shall not begin until each such contractor has furnished a performance bond in favor oft.he grantee, in the fo!lowing amounts: for faithful performance, one hundred percent (100%) of the contract value; and for labor and materials, one hundred percent (100%) of the contract value. This requirement shall not apply to any contract for less than $20,000. Any bond furnished pursuant to this section shall be executed by an admitted corporate surety insurer licensed in the State of California. COSTS AND DISBURSEMENTS Upon determination by the Conservancy that all "conditions precedent to commencement of project acquisition and disbursement and additional grant conditions" have been fully met, the Conservancy shall disburse to the grantee, in accordance with the approved project budget, a total amount not to exceed the amount of this grant, as follows: Disbursements shall be made on the basis of costs incurred to date, less ten percent, upon satisfactory progress in accordance with the approved work program and upon the grantee’s submission of a "Request for Disbursement" form, which shall be submitted no more frequently than monthly but no less frequently than quarterly. Disbursement of the ten percent withheld shall be made as follows: I. Project Completion. Any remaining amount of the ten percent withheld shall be disbursed to the grantee upon the grantee’s satisfactory completion of the project and compliance with the applicable requirements of the "PROJECT OR SITE COMPLETION" section of this agreement, and upon the Conservancy’s acceptance of the project. The grantee shall request disbursements by filing with the Conservancy fully executed "Request for Disbursement" forms (available from the Conservancy). The grantee shall include in the forms its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred, of all work done for which disbursement is requested. The forms shall also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement. The forms shall be signed by an authorized representative of the grantee. Each form shall be accompanied by any receipts and supporting invoices or other source documents from contractors that the grantee engaged to complete any portion of the project fundedunder this agreement, and by written substantiation of completion of the portion of the project for which disbursement is requested. With each form, the grantee shall submit a supporting progress report summarizing the current status of the project and comparing it to the status required by the work program (budget, timeline, tasks, etc.). In the event that the grantee seeks disbursement of 10% withheld with respect to completed work on a specific site or Sub-site, the grantee shall also submit documentation that all such work has been satisfactorily completed by providing site- specific information as required for the "final report" under the "PROJECT OR SITE COMPLETION" section of this agreement. . Failure to fully execute and submit a Request for Disbursement form, including attachment of supporting documents, will relieve the Conservancy of its obligation to disburse funds to the grantee unless and until all deficiencies are rectified. EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS The grantee shall expend funds in the manner described in the approved project budget. The allocation of the Conservancy’s total grant among the items in the project budget may vary by as much as ten percent without approval by the Executive Officer. Any difference of more than ten percent must be approved in writing by the Executive Officer. The Conservancy may withhold payment for changes in particular budget items which exceed the amount allocated in the project budget by more than ten percent and which have not received the approva! required above. The total amount of this grant may not be increased except by amendment to this agreement. Any increase in the funding for any particular budget item shall mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement. Additional Payment Provisions: The grantee shall submit invoices to the Conservancy no less frequently than quarterly. Each original invoice shall be accompanied by all supporting documentation and with all required deliverables (including quarterly reports) and with documentation of completion of tasks or satisfactory progress toward completion. Rights in Data: All data and information obtained produced by the contractor under this agreement shall be in the public domain. Grantee shall not sell or grant rights to a third party who intends to sell such product as a profit-making venture. Grantee shall have the fight to disclose, disseminate and use, in whole or in part, any final form data and information received, collected, and/or developed under this Agreement, subject to inclusion of appropriate acknowledgment of credit to the State Resources Agency, the CALFED Program and the Conservancy (collectively "the Project Partners") for their financial support. Grantee must obtain prior approval from the Conservancy to use draft data, which shall be subject to CALFED approval. Permission to use draft data will not be unreasonably withheld. The Project Partners will not disseminate draft data, but may make draft data available to the public upon request with an explanation that the data have not been finalized. Acknowledgment of Credit: The grantee shall include appropriate acknowledgment of credit to the Project Partners for their financial support when using any data and/or information developed under this agreement. Standard of Professionalism: The grantee sha!l conduct all work consistent with the professional standards of the industry and type of work being performed under this agreement. Conflict of Interest: The grantee shah comply with all applicable State laws and rules pertaining to conflict of interest, including but not limited to, Government Code section 1090 and Public Contract Code sections 10365.5, 10410, and 10411. PROJECT OR SITE COMPLETION Within thirty days of completion of the project or within 30 days of acquisition of the property title, the grantee shall supply the Conservancy with evidence of completion by submitting a fin!l report which includes: 1. A final report documenting the completion of the project or acquisition of the property title. 2. In the case of a final report, a fully executed final "Request for Disbursement" form. Within thirty days of grantee’s compliance with this paragraph, the Conservancy shall determine whether the project has been satisfactorily completed. If the Conservancy determines that the project has been satisfactorily completed, the Conservancy shall issue to the grantee a letter of acceptance of the project. The project shall be deemed complete as of the date of the letter of acceptance. EARLY TERMINATION AND FAILURE TO PERFORM Prior to the completion of the project, either party may terminate this agreement for any reason by providing the other party with seven days notice in writing. If the Conservancy terminates the agreement prior to the completion of the project, the grantee shall take all reasonable measures to prevent further costs to the Conservancy under this agreement, and the Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate, but only up to the undisbursed balance of funding authorized in this agreement. If the grantee fails to complete the project in accordance with this agreement, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee shall be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph shall not be deemed to limit any other remedies the Conservancy may have for breach of this agreement. LIABILITY The grantee shall be responsible for, indemnify and save harmless the Conservancy, its officers, agents and employees from any and all liabilities, claims, demands, damages or costs resulting from, growing out of, or in any way connected with or incident to this agreement, except for active negligence of the Conservancy, its officers, agents or employees. The duty of the grantee to indemnify and save harmless includes the duty to defend as set forth in Civil Code Section 2778. This agreement supersedes the grantee’s right as a public entity to indemnity (see Gov. Code Sect!on 895.2) and contribution (see Gov. Code Section 895.6) as set forth in Gov. Code Section 895.4.] The grantee waives any and all fights to any type of express or implied indemnity or fight of contribution from the State, its officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement. Throughout the term of this agreement, the grantee shall maintain self-insurance for personal injury and property damage liability assumed by the grantee under this agreement. Nothing in this agreement is intended to create in the public or in any member of it rights as a third party beneficiary under this agreement. AUDITS/ACCOUNTING/RECORDS The grantee shall maintain financial accounts, documents, and records (collectively, "records") relating to this agreement, in accordance with the guidelines of "Generally Accepted Accounting Practices" ("GAAP") published by the American Institute of Certified Public Accountants. The records shall include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, and disbursement of all funds related to the [implementation of the project, and the use, management, operation and maintenance of the real property. Time and effort reports are also required. The grantee shall maintain adequate supporting records in a manner that permits tracing from the request for disbursement forms to the accounting records and to the supporting documentation. Additionally, the Conservancy or its agents may review, obtain, and copy al! records relating to performance of the agreement. The grantee shall provide the Conservancy or its agents with any relevant inf6rmation requested and shall permit the Conservancy or its agents access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining Compliance with this agreement and any applicable laws and regulations. The grantee shall retain the required records for a minimum of tlxee years following the later of iS_hal disbursement by the Conservancy, and the final year to which the particular records pertain. The records shall be subject to examination and audit by the Conservancy and the.Bureau of State Audits during the retention periods. If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors. The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement. NONDISCRIMINATION During the performance of this agreement, the grantee and its contractors shall not unlawfully discriminate against, harass, or allow harassment against any employee or applicant for employment because of sex, race, religion, color, national origin, ancestry, disability, medical condition, marital status, age (over 40) or denial of family-car~ leave, medical-care leave, or pregnancy disability leave. The grantee and its contractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. The grantee and its contractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12900 et seq.) and the applicable regulations (California Code of Regulations Title 2, Section 7285.0 et seq.). The regulations of the Fair Employment and Housing Commission regarding Contractor Nondiscrimination and Compliance (Chapter 5 of Division 4 of Title 2 of the California Code of Regulations), are incorporated into this agreement. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. This nondiscrimination clause shall be included in all contracts and subcontracts entered into to perform work provided for under this agreement. INDEPENDENT CAPACITY The grantee, and the agents and employees of grantee, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California. ASSIGNMENT Without the written consent of the State, this agreement is not assignable by the grantee in whole or in part. TIMELINESS Time is of the essence in this agreement. EXECUTIVE OFFICER’S DESIGNEE The Executive Officer shall designate a Conservancy project manager who shall have authority to act on behalf of the Executive Officer with respect to this agreement. The Executive Officer shall notify the grantee of the designation in writing. Except as expressly provided in this agreement, no changes in this agreement shall be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement shall be binding on any of the parties. LOCUS This agreement is deemed to be entered into in the County of Alameda. GRANTEE Signature Date Print or type name Title