HomeMy WebLinkAbout2015-02-23 City Council Agenda PacketCITY OF PALO ALTO
CITY COUNCIL
FEBRUARY 23, 2015
Special Meeting
Council Chambers
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 February 23, 2015
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DURING NORMAL BUSINESS HOURS.
PUBLIC COMMENT
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determined by the presiding officer. If you wish to address the Council on any issue that is on this
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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 6:00-6:30 PM
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1. CONFERENCE WITH CITY ATTORNEY/LEGAL COUNSEL ANTICIPATED LITIGATION (as
defendant/plaintiff)
Subject: Turner Construction – construction management services,
Mitchell Park Library and Community Center
Authority: California Government Code sections 54956.9(d)(2) and
54956.9(d)(4)
Special Orders of the Day 6:30-7:00 PM
2. Acknowledgement of Recipients of Mayor’s “Green Leader Business
Award"
3. Heart Across America Presentation
2 February 23, 2015
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DURING NORMAL BUSINESS HOURS.
Agenda Changes, Additions, and Deletions
City Manager Comments 7:00-7:10 PM
Oral Communications 7:10-7:25 PM
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
Minutes Approval 7:25-7:30 PM
November 10, 2014
November 17, 2014
Consent Calendar 7:30-7:35 PM
Items will be voted on in one motion unless removed from the calendar by three Council Members.
4. Adoption of a Resolution Amending Electric Rate Schedule E-1 TOU
(Residential Time-of-Use Rate Adjustment) to Extend its Term Through
December 31, 2017
5. Approval of Utilities Enterprise Fund Contract with Daleo, Inc. In The
Amount of $4,409,031 for Water Main Replacement Capital
Improvement Program WS-11000 Project 25 in University South and
the Leland Manor/Garland Subdivisions
6. Approval of a Contract with St Francis Electric in the Amount of
$274,290 for Traffic Signal Modifications at the Embarcadero Road &
Town and Country-Palo Alto High School Intersection
7. Approval of Continuation of Valet-Assist Services at Lot R for the
Remainder of FY2015 and Adoption of a Budget Amendment Ordinance
in the University Avenue Parking Permit Fund in the Amount of
$30,000
8. Approval of an Amendment to Contract C14153012 with Metropolitan
Planning Group for Planning Support Services Needed Due to
Unanticipated Staff Vacancies Adding $98,000 for a Not to Exceed
Amount of $150,000
9. Approval of Utilities Enterprise Fund Contract with Utility Tree Service,
Inc. (UTS), Not To Exceed $1,209,406 for the First Year and up to
3 February 23, 2015
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PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE.
DURING NORMAL BUSINESS HOURS.
$5,251,499 for Four Additional Years for the 2015 Power Line Clearing
Project
10. Appointment of 2015 Emergency Standby Council
11. Adoption of a Resolution Approving Interim Appointment of James
Lightbody to Chief Transportation Official Position Pursuant to
Government Code Section 21221(h)
12. Approval to Cast Ballot for Council Member Liz Kniss for Vice President
of the Peninsula Division Executive Committee of the League of
California Cities
Action Items
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.
7:35-9:30 PM
13. Appeal of Director of Planning and Community Environment’s
Individual Review Approval of a New Two-Story Home located at 3864
Corina Way (Continued from February 2, 2015)
9:30-9:45 PM
14. Policy and Services Committee Recommends the City Council Amend
Policy and Procedure 1-48/ASD (Procedure for Sale/Transfer of Surplus
City-Owned Real Property) to Address Unsolicited Offers and Provide
for Broad Marketing of City Lands Through Use of Electronic Media
Inter-Governmental Legislative Affairs
9:45-10:45 PM
15. Review and Approval of the Draft Legislative Program Manual and
Draft Semi-Annual Legislative Strategic Initiatives
Council Member Questions, Comments and Announcements
Members of the public may not speak to the item(s)
Adjournment
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
4 February 23, 2015
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
Special City Council Meeting February 17, 2015
Mayor State of the City Address February 18, 2015
Presentation by Peter Kageyama February 19, 2015
Special City Council Closed Session February 25, 2015
City School Committee Meeting February 26, 2015
Schedule of Meetings
Schedule of Meetings
Tentative Agenda
Tentative Agenda
Informational Report
Notice of Vacancies on the Human Relations Commission, the Public Art
Commission and the Utilities Advisory Commission
Public Letters to Council
Set One Set Two
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
February 23, 2015
The Honorable City Council
Palo Alto, California
Acknowledgement of Recipients of Mayor’s “Green Leader Business
Award"
There is no report associated with this item.
Department Head: Beth Minor, Acting City Clerk
Page 2
City of Palo Alto (ID # 5459)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Resolution Extending Time of Use Rate Pilot
Title: Adoption of a Resolution Amending Electric Rate Schedule E-1 TOU
(Residential Time-of-Use Rate Adjustment) to Extend its Term Through
December 31, 2017
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council adopt a resolution to amending Electric Rate Schedule E-1 TOU
(Residential Time-of-Use Rate Adjustment) to extend its term through December 31, 2017, in
order to cover the extended CustomerConnect Pilot Program term and post-program
evaluation period.
Executive Summary
The City of Palo Alto Utilities’ (CPAU’s) CustomerConnect Pilot Program, a voluntary residential
smart meter and time-of-use (TOU) pilot program, was intended to run until December 31,
2015. However, deployment of the smart meters for the program has taken longer than
planned and staff has decided to extend the pilot through the end of 2016. The proposed
resolution extends the E-1 TOU rate, which accompanies the program, through the end of 2017.
The extension will cover the entire pilot program period and additional transition time while
staff evaluates the pilot program data and determines whether to deploy advanced meters
more broadly.
Background
A TOU rate is an electric rate which charges customers different prices depending on the time
of day they use electricity. Electricity is typically more expensive during the day than at night.
A TOU rate passes those costs through to the customer, who then receives a price signal to
move electric use to a less expensive time of day whenever possible. These rates require
special metering. Smart meters are one type of meter that can accommodate these rates.
Smart meter technology is becoming more widely adopted throughout the electric industry.
CPAU is gaining experience with these technologies and rate structures. On December 10, 2012
Council approved the CustomerConnect Pilot Program, a smart meter and TOU rate pilot
City of Palo Alto Page 2
program (Staff Report 3330, Resolution 9302). A set of guidelines for selecting participants for
the pilot program and TOU rate was included as an attachment to that staff report (Subsection
D of Attachment C to Staff Report 3330). The TOU rate (Rate Schedule E-1 TOU) is set to expire
on March 31, 2015. The voluntary CustomerConnect program is designed for 300 customers to
have advanced meters, 150 of whom will be on the TOU rate. Staff will track the savings of
both customer groups to determine the impact on energy consumption.
Discussion
The original CustomerConnect program timeline called for twenty conventional TOU-capable
meters to be deployed before the smart meter deployment to test the TOU rate in the billing
system. This phase has been completed. The full deployment of the more advanced smart
meters (which are capable of delivering more detailed data than conventional meters), the
communications system and the customer portal was scheduled to be completed by December
2013. Due to vacancies in the electric meter shop and a slower than expected deployment of
the communications infrastructure for the advanced meters, this timeline has not been met.
While the meters have been deployed, the communications system and customer portal have
not been adequate to allow the pilot program to commence as planned. Staff now anticipates
the pilot program to be fully in place by March 2015 and to continue until December 2016.
The E-1 TOU rate is an integral part of the CustomerConnect Pilot Program. To facilitate the
updated timeline, the pilot E-1 TOU rate schedule needs to be extended until December 31,
2017. This timeline covers a full year more than the pilot program period because staff
anticipates that some customers may want to stay on the TOU rate while data from the pilot
program is being analyzed and decisions are being made about the future of the program.
Timeline
Staff anticipates full deployment of the pilot program’s advanced meters by March 2015, the
completion of the pilot program in December 2016, and the analysis of the data and discussion
of next steps in 2017. The Utilities Advisory Commission and Council will receive updates on
the program, and will have an early opportunity to discuss TOU rates as part of the electric cost
of service study staff is performing in 2015.
Resource Impact
Adoption of this resolution will not result in additional expenditure of staff resources beyond
those already approved for the pilot program.
Policy Implications
This implements existing Council Electric Vehicle Infrastructure policy to provide TOU rate
options to electric vehicle customers and is consistent with the Utilities Strategic Plan objective
to promote the efficient use of resources.
City of Palo Alto Page 3
Environmental Review
Adoption of a resolution extending the term, but not the underlying rates, of voluntary Rate
Schedule E-1 TOU is statutorily exempt from the California Environmental Quality Act (CEQA),
pursuant to California Code of Regulations Title 14, Chapter 3, Section 15273(a), because the
fees and charges in E-1 TOU are necessary to recover the cost of providing utility service under
the pilot program, and to meet operating expenses. After reviewing the reports presented, the
Council incorporates these documents herein and finds that sufficient evidence has been
presented setting forth with specificity the basis for this claim of CEQA exemption.
Attachments:
Attachment A: Resolution of the Council of the City of Palo Alto Amending Utility Electric
Rate Schedule E-1 TOU (Residential Time-of-Use Rate Adjustment) (PDF)
Attachment B: Amended Rate Schedule E-1 TOU effective March 1, 2015 (PDF)
ATTACHMENT A
* NOT YET APPROVED *
6053236 mf 150114
Resolution No. _____
Resolution of the Council of the City of Palo Alto Amending Electric Rate
Schedule E-1 TOU (Residential Time-of-Use Rate Adjustment) to Extend its
Applicability Through December 31, 2017
R E C I T A L S
A. On December 10, 2012, the City adopted a voluntary electric time of use rate
schedule that expires March 31, 2015 (Resolution 9302), and the Customer Connect Pilot Program,
which was scheduled to be completed in December 2014 (Staff Report ID#3330).
B. The Customer Connect Pilot Program timeline has been extended, and is now
anticipated to be completed by December 2016. The City wishes to extend the expiration of the
voluntary time of use rate schedule to December 31, 2017, one year after completion of the program.
The City intends that service to customers on the E-1 TOU rate prior to December 2014 continue
uninterrupted through December 31, 2017, or until such customers decline to continue taking service on
the E-1 TOU rate schedule.
The Council of the City of Palo Alto RESOLVES, as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule E-1 TOU (Residential Time-of-Use Rate Adjustment) is hereby amended as attached and
incorporated. Utility Rate Schedule E-1 TOU, as amended, shall become effective January 1, 2015.
SECTION 2. The Council finds that the fees and charges contained in the voluntary
electric rate schedule amended by this resolution are charges imposed for a specific government service
or product provided directly to the payor that are not provided to those not charged, and do not exceed
the reasonable costs to the City of providing the service or product.
//
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ATTACHMENT A
* NOT YET APPROVED *
6053236 mf 150114
SECTION 3. The Council finds that the adoption of this resolution extending the term,
but not the underlying rates, of voluntary electric rate schedule E-1 TOU is statutorily exempt from the
California Environmental Quality Act (CEQA), pursuant to California Code of Regulations Title 14, Chapter
3, Section 15273(a), because the fees and charges in E-1 TOU are necessary to recover the cost of
providing utility service under the pilot program, and to meet operating expenses. After reviewing the
reports presented, the Council incorporates these documents herein and finds that sufficient evidence
has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Sr. Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative
Services
RESIDENTIAL TIME OF USE RATE ADJUSTMENT
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 01-01-201301-01-2015
Sheet No E-1 TOU-1
A. APPLICABILITY:
This is a voluntary rate schedule that applies to separately metered single-family residential
dwellings receiving retail energy services from the City of Palo Alto Utilities (CPAU). Service
under this rate schedule will be provided in conjunction with all rates and charges shown on Rate
Schedules E-1 (Residential Electric Service) or E-1-G (Residential Green Power Electric
Service) if the customer has chosen participation in the Palo Alto Green program. Service under
this Schedule is limited to 150 meters and will terminate on December 31, 2017March 31, 2015.
Service under this rate is provided at the sole discretion of CPAU.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides electric service.
C. TIME OF DAY ADJUSTMENT:
The following adjustment factors will be applied based on the time of day the energy is delivered
and will be added to (or subtracted from) to the electric Unbundled Rates charges calculated
under the City’s regular residential electric schedules (E-1 or E-1-G).
Rates per kilowatt-hour (kWh)
Total
Summer Period
Peak + $0.0578
Mid-Peak $0.0000
Off-Peak - $0.0186
Winter Period
Peak $0.0035
Off-Peak - $0.0129
D. SPECIAL NOTES:
1. Calculation of Charges
This rate is an adjustment to the E-1 or E-1-G rate schedules. The Time of Day
Adjustment in Section C shows the discount or premium applied to energy electric
service based on the time of day such service is delivered. When calculating charges for
ATTACHMENT B
RESIDENTIAL TIME OF USE RATE ADJUSTMENT
UTILITY RATE SCHEDULE E-1 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 01-01-201301-01-2015
Sheet No E-1 TOU-2
electric service delivered during a billing period, charges will be calculated in a two step
process: first, charges under the E-1 or E-1-G rate will be calculated based on the total
consumption during that billing period, and second, the Time of Day Adjustment in
Section C will be calculated based on when that consumption occurred. The two
calculations will be added together to generate the electric charges for that billing period.
The actual bill is calculated based on the applicable rates discussed above and is then
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill
statement, the bill amount may be broken down into appropriate components as shown
above, as well as shown on Rate Schedules E-1 or E-1-G.
2. Definition of Time Periods
SUMMER PERIOD (Service from June 1 to September 30):
Peak: Nnoon to 6:00 p.m. Weekdays (Mon-Fri, except holidays)
Off-Peak: 11:00 p.m. to 6:00 a.m. Every day
Mid Peak: All other hours Every day
WINTER PERIOD (Service from October 1 to May 31):
Off-Peak: 11:00 p.m. to 6:00 a.m. Every day
Peak: 6:00 a.m. to 11:00 p.m. Every day
HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Year’s Day,
President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays
are legally observed.
SEASONAL RATE CHANGES: When the billing period includes use in both the
Summer and the Winter periods, the usage will be prorated based on the number of days
in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
{End}
City of Palo Alto (ID # 3801)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Water Main Replacement Project 25
Title: Approval of Utilities Enterprise Fund Contract with Daleo, Inc. In The
Amount of $4,409,031 for Water Main Replacement Capital Improvement
Program WS-11000 Project 25 in University South and the Leland
Manor/Garland Subdivisions
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with Daleo, Inc. (Attachment A) in a not to exceed amount of
$4,008,210 for Water Main Replacement Capital Improvement Program (CIP) WS-11000 (Water
Main Replacement (WMR) Project 25).
Staff also recommends that Council approve, and authorize the City Manager or his designee to
negotiate and execute one or more changes to the contract with Daleo, Inc. for related
additional but unforeseen work, which may develop during the project, the total value of which
shall not exceed $400,821.
Background
This project continues the City’s water main replacement program (that began in 1986) for the
cast iron pipe (CI) Pipe portion of the City’s water distribution system, along with replacement
of other aging mains of various size and material. As the City’s water distribution system ages,
existing CI Pipe water mains will begin to show signs of corrosion and/or become subject to
recurring breaks. In addition to CI Pipe, Asbestos Cement Pipe (ACP) is showing higher failure
rates. Using risk of failure analysis, staff has prioritized replacement of all water mains within
the distribution system. The water mains being replaced as part of this project (WMR 25) have
been prioritized by staff for replacement because, based on staff’s risk assessment, they pose a
greater risk of failure at this time.
Discussion
The scope of this contract includes installation of approximately 11,872 linear feet of new High
Density Polyethylene (HDPE) water mains, 225 new HDPE water services, 19 new fire hydrants
City of Palo Alto Page 2
and reconnection of 1 existing fire service within the City limits of Palo Alto. The project will
replace mains on Bret Harte Street (Embarcadero to Seale), Guinda Street (Middlefield to
Seale), Homer Avenue (Webster to Boyce), Mark Twain Street (Embarcadero to Seale), North
California (Webster to Middlefield), and Seale Avenue (Middlefield to Embarcadero); project
locations are shown on Attachment C. The term of this Agreement shall be from the date of its
full execution until 180 days after the Notice to Proceed (NTP) is issued to the contractor.
Replacing the water distribution system mains with HDPE pipe will eliminate leaks in the project
area, increase the reliability of the water distribution system, improve the quality of supplied
water, and increase the required flow and pressure for fire protection.
WMR 25 was originally solicited for bid in February 2014. At that time the City received three
(3) bids, all of which were approximately thirty-five percent (35%) above the engineer’s
estimate. In March 2014, the City rejected all bids due to excessive cost.
WMR 25 was rebid in July 2014 after making two revisions to the bid package (HDPE) pipe
requirements were revised to allow for black HDPE pipe with blue stripes in lieu of blue HDPE
pipe because it is more readily available. In this subsequent rebid, the City also removed the
sewer verification for water service crossbore requirements to lower the cost. In response to
the July 2014 solicitation, the City received two (2) bids, both of which were approximately
thirty percent (30%) above the engineer’s estimate. In August 2014, the City rejected all bids
due to insufficient funds.
Recognizing the two prior solicitations signaled changes in cost and availability in the current
bidding environment due to large demand of construction work in the Bay Area, staff further
reduced the proposed work scope in an effort to solicit bids that would stay within the project
budget, without compromising safety.
For the City’s December 2014 solicitation, staff: (1) removed two major segments of water main
replacement on Everett and Hawthorne Streets; and (2) eased HDPE installation requirements
without compromising safety or integrity of the water system. In response to this third
solication for WMR 25, the City received one (1) bid from Daleo, Inc. that is two percent (2%)
above the engineer’s estimate.
Bid Summary
Bid Name/Number Water Main Replacement Project 25, CIP WS-11000,
IFB Number 157253
Proposed Length of Project 180 calendar days
Number of Bids Mailed to Contractors 0 (electronic documents were available in CPA website)
Number of Bid Notices Emailed to
Contractors and Builder’s Exchanges
8
Total Days to Respond to Bid 23
Pre-Bid Meeting? Yes (Mandatory)
City of Palo Alto Page 3
Number of Company Attendees at
Pre-Bid Meeting
15
Number of Bids Received: 1
Bid Price Range $4,008,210
*Bid summary provided in Attachment B.
Staff has reviewed the submitted bid and recommends that the bid of $4,008,210 submitted by
Daleo, Inc. be accepted and that Daleo, Inc. be declared the lowest responsible bidder. The bid
is approximately two percent (2%) above the staff engineer's estimate of $3,926,170. Staff
believes that bid is higher than the engineer’s estimate due to recent increases in cost of
materials and labor for this type of work, and the fact that there is currently a large demand for
construction work in the Bay Area. Although the bid is slightly higher than the engineer’s
estimate, there are sufficient funds available to complete this work. The change order amount
of $400,821, which equals 10 percent of the total contract, is requested for additional
unforeseen work that may develop during the project.
Staff confirmed with the Contractor's State License Board that the contractor has an active
license on file. Staff checked references supplied by Daleo, Inc. for previous work performed
and found no significant complaints. In addition to this, Daleo, Inc. has contracted with the City
Utilities Department in the past for construction of Gas Main Replacement Projects.
Due to only one bid being received by the City for this project, staff contacted all contractors
that attended the mandatory pre-bid meeting to determine why they did not provide a bid. The
contractors stated that they already have a heavy workload, they don’t have the staff available,
and/or they didn’t have the required experience needed to bid the project.
Resource Impact
Funds for this capital project ($4,008,210) including the contingency amount of ($400,821) are
available in the Water Capital Improvement Program project Water Main Replacement (WMR)
Project 25 (WS-11000). Although the bid price is 2% above the engineer’s estimate for this
project, there are sufficient funds available to complete the work.
Policy Implications
The approval of this contract is consistent with existing City policies including the Council
approved Utilities Strategic Plan-Strategic Objectives: BP1. Ensure a reliable supply of utility
resources, BP2. Operate the utility systems safely, BP3. Replace infrastructure before the end of
its useful life, and PT.4 Investigate and adopt innovative technologies.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant
to Title 14 of the California Code of Regulations, section 15301 (b) repair, maintenance of
existing facilities and 15302 section (c) replacement or reconstruction of existing facilities.
Attachments:
City of Palo Alto Page 4
Attachment A: Contract (PDF)
Attachment B: WMR 25 Bid Summary (PDF)
Attachment C: WMR 25 Site Map (PDF)
CONSTRUCTION CONTRACT
Contract No. C15157253
City of Palo Alto
and
Daleo, Inc.
PROJECT
“Water Main Replacement 25 Project”
Invitation for Bid (IFB) Package 1 Rev. July 2012
CONSTRUCTION CONTRACT
ATTACHMENTA
CONSTRUCTION CONTRACT
TABLE OF CONTENTS
SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. .................... 5
1.1 Recitals .............................................................................................................. 5
1.2 Definitions .......................................................................................................... 5
SECTION 2. THE PROJECT……………………………………………………………………………… .............................. 5
SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. ......................... 5
3.1 List of Documents …………………………………………………………………………………………. ..... 5
3.2 Order of Precedence …………………………………………………………………………… ............... 6
SECTION 4. THE WORK ………………………………………………………………………………….............................. 7
SECTION 5. PROJECT TEAM ………………………………………………………………………….. ............................. 7
SECTION 6. TIME OF COMPLETION ………………………………………………………………….. .......................... 7
6.1 Time Is of Essence ....................................................................................... ……… 7
6.2 Commencement of Work .................................................................................... 7
6.3 Contract Time ..................................................................................................... 7
6.4 Liquidated Damages ........................................................................................... 7
6.4.1 Entitlement……………………………………………………………………………………………. 7
6.4.2 Daily Amount…………………………………………………………………………………………. 8
6.4.3 Exclusive Remedy………………………………………………………………………………….. 8
6.4.4 Other Remedies…………………………………………………………………………………... 8
6.5 Adjustments to Contract Time ......................................................................... … 8
SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 8
7.1 Contract Sum ……………………………………………………………………………………………………… 8
7.2 Full Compensation …………………………………………………………………………………………….. 9
7.3 Compensation for Extra or Deleted Work …………………………………………………………….9
7.3.1 Self Performed Work………………………………………………………………………………… 9
7.3.2 Subcontractors…………………………………………………………………………………………. 9
SECTION 8. STANDARD OF CARE .................................................................................................. 9
SECTION 9. INDEMNIFICATION .................................................................................................... 10
9.1 Hold Harmless…………………………………………………………………………………………………….. 10
9.2 Survival………………………………………………………………………………………………………………. 10
SECTION 10. NONDISCRIMINATION ............................................................................................. 10
SECTION 11. INSURANCE AND BONDS ......................................................................................... 10
Invitation for Bid (IFB) Package 2 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 12. PROHIBITION AGAINST TRANSFERS ......................................................................... 11
SECTION 13. NOTICES .................................................................................................................. 11
13.1 Method of Notice ………………………………………………………………………………………………..11
13.2 Notice Recipients ................................................................................................ 11
13.3 Change of Address .............................................................................................. 12
14.1 Resolution of Contract Disputes .......................................................................... 12
14.2 Resolution of Other Disputes .............................................................................. 12
14.2.1 Non-Contract Disputes ……………………………………………………………………………….12
14.2.2 Litigation, City Election ……………………………………………………...........................13
14.3 Submission of Contract Dispute …………………………………………………………………………..13
14.3.1 By Contractor …………………………………………………………………………………………. 13
14.3.2 By City ……………………………………………………………………………………………………. 13
14.4 Contract Dispute Resolution Process .............................................................. …… 13
14.4.1 Direct Negotiation………………………………………………………………………… ………….13
14.4.2 Deferral of Contract Disputes ………………………………………………………………… 14
14.4.3 Mediation ………………………………………………………………………………………………….14
14.4.4 Binding Arbitration ……………………………………………………………………………………15
14.5 Non-Waiver …………………………………………………………………………………………………………16
SECTION 15. DEFAULT ................................................................................................................. 16
15.1 Notice of Default ................................................................................................ 16
15.2 Opportunity to Cure Default ............................................................................... 16
SECTION 16. CITY'S RIGHTS AND REMEDIES ................................................................................. 16
16.1 Remedies Upon Default ...................................................................................... 16
16.1.1 Delete Certain Servic………………………………………………………...........................16
16.1.2 Perform and Withhold ……………………………………………………………………………. 16
16.1.3 Suspend The Construction Contract ………………………………………………………….16
16.1.4 Terminate the Construction Contract for Default ……………………………………..17
16.1.5 Invoke the Performance Bond ………………………………………………………………….17
16.1.6 Additional Provisions ……………………………………………………………………………….17
16.2 Delays by Sureties .............................................................................................. 17
16.3 Damages to City ................................................................................................. 17
16.3.1 For Contractor's Default …………………………………………………………………………..17
16.3.2 Compensation for Losses ………………………………………………………………………….17
16.5 Suspension by City for Convenience .................................................................... 18
16.6 Termination Without Cause ................................................................................ 18
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CONSTRUCTION CONTRACT
16.6.1 Compensation ………………………………………………………………………………………….18
16.6.2 Subcontractors …………………………………………………………………………………………18
16.7 Contractor’s Duties Upon Termination ................................................................ 19
SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES .................................................................. 19
17.1 Contractor’s Remedies ........................................................................................ 19
17.1.1 For Work Stoppage ………………………………………………………………………………….. 19
17.1.2 For City's Non-Payment …………………………………………………………………………… 19
17.2 Damages to Contractor ....................................................................................... 19
SECTION 18. ACCOUNTING RECORDS .......................................................................................... 19
18.1 Financial Management and City Access ......................................................... ……. 19
18.2 Compliance with City Requests ....................................................................... …. 20
SECTION 19. INDEPENDENT PARTIES ........................................................................................... 20
SECTION 20. NUISANCE ............................................................................................................... 20
SECTION 21. PERMITS AND LICENSES........................................................................................... 20
SECTION 22. WAIVER .................................................................................................................. 20
SECTION 23. GOVERNING LAW .................................................................................................... 20
SECTION 24. COMPLETE AGREEMENT .......................................................................................... 21
SECTION 25. SURVIVAL OF CONTRACT ......................................................................................... 21
SECTION 26. PREVAILING WAGES ................................................................................................ 21
SECTION 27. NON APPROPRIATION ............................................................................................. 21
SECTION 28. GOVERNMENTAL POWERS ...................................................................................... 21
SECTION 29. ATTORNEY FEES ...................................................................................................... 21
SECTION 30. COUNTERPARTS ...................................................................................................... 22
SECTION 31. SEVERABILITY .......................................................................................................... 22
Invitation for Bid (IFB) Package 4 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT entered into on 23rd day of February 2015 (“Execution Date”) by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and DALEO, INC.
("Contractor"), is made with reference to the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the laws of the State of
California with the power to carry on its business as it is now being conducted under the statutes of the
State of California and the Charter of City.
B. Contractor is a corporation duly organized and in good standing in the State of California,
Contractor’s License Number 458944. Contractor represents that it is duly licensed by the State of
California and has the background, knowledge, experience and expertise to perform the obligations set
forth in this Construction Contract.
C. On November 26, 2014, City issued an Invitation for Bids (IFB) 157253 to contractors for the
“Water Main Replacement 25 Project” (“Project”). In response to the IFB, Contractor submitted a bid.
D. City and Contractor desire to enter into this Construction Contract for the Project, and other
services as identified in the Bid Documents for the Project upon the following terms and conditions.
NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is mutually agreed by and between the undersigned parties as follows:
SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.
1.1 Recitals.
All of the recitals are incorporated herein by reference.
1.2 Definitions.
Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the
General Conditions. If there is a conflict between the definitions in this Construction Contract and
in the General Conditions, the definitions in this Construction Contract shall prevail.
SECTION 2 THE PROJECT.
The Project is the construction of the “Water Main Replacement 25 Project” ("Project").
SECTION 3 THE CONTRACT DOCUMENTS.
3.1 List of Documents.
The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist
of the following documents which are on file with the Purchasing Division and are hereby incorporated by
reference.
1) Change Orders
2) Field Change Orders
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CONSTRUCTION CONTRACT
3) Contract
4) Project Plans and Drawings
5) Technical Specifications
6) Special Provisions
7) Notice Inviting Bids
8) Instructions to Bidders
9) General Conditions
10) Bidding Addenda
11) Invitation for Bids
12) Contractor's Bid/Non-Collusion Affidavit
13) Reports listed in the Bidding Documents
14) Public Works Department’s Standard Drawings and Specifications dated 2007 and
updated from time to time
15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005
and updated from time to time
16) City of Palo Alto Traffic Control Requirements
17) City of Palo Alto Truck Route Map and Regulations
18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre-
Qualification Checklist (if applicable)
19) Performance and Payment Bonds
20) Insurance Forms
3.2 Order of Precedence.
For the purposes of construing, interpreting and resolving inconsistencies between and among the
provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the
preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City
shall have the sole power to decide which document or provision shall govern as may be in the best
interests of the City.
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CONSTRUCTION CONTRACT
SECTION 4 THE WORK.
The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other
things necessary for Contractor to perform its obligations and complete the Project, including, without
limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable
Code Requirements.
SECTION 5 PROJECT TEAM.
In addition to Contractor, City has retained, or may retain, consultants and contractors to provide
professional and technical consultation for the design and construction of the Project. The Project requires
that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of
the Project Team and other contractors retained by City to construct other portions of the Project.
SECTION 6 TIME OF COMPLETION.
6.1 Time Is of Essence.
Time is of the essence with respect to all time limits set forth in the Contract Documents.
6.2 Commencement of Work.
Contractor shall commence the Work on the date specified in City’s Notice to Proceed.
6.3 Contract Time.
Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be
completed not later than one hundred eighty (180) calendar days from issuance date of the City’s
Notice to Proceed.
6.4 Liquidated Damages.
6.4.1 Entitlement.
City and Contractor acknowledge and agree that if Contractor fails to fully and
satisfactorily complete the Work within the Contract Time, City will suffer, as a result of
Contractor’s failure, substantial damages which are both extremely difficult and
impracticable to ascertain. Such damages may include, but are not limited to:
(i) Loss of public confidence in City and its contractors and consultants.
(ii) Loss of public use of public facilities.
(iii) Extended disruption to public.
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CONSTRUCTION CONTRACT
6.4.2 Daily Amount.
City and Contractor have reasonably endeavored, but failed, to ascertain the actual
damage that City will incur if Contractor fails to achieve Substantial Completion of the
entire Work within the Contract Time. Therefore, the parties agree that in addition to all
other damages to which City may be entitled other than delay damages, in the event
Contractor shall fail to achieve Substantial Completion of the entire Work within the
Contract Time, Contractor shall pay City as liquidated damages the amount of $500 per
day for each Day occurring after the expiration of the Contract Time until Contractor
achieves Substantial Completion of the entire Work. The liquidated damages amount is
not a penalty but considered to be a reasonable estimate of the amount of damages City
will suffer by delay in completion of the Work.
6.4.3 Exclusive Remedy.
City and Contractor acknowledge and agree that this liquidated damages provision shall
be City’s only remedy for delay damages caused by Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.4.4 Other Remedies.
City is entitled to any and all available legal and equitable remedies City may have where
City’s Losses are caused by any reason other than Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.5 Adjustments to Contract Time.
The Contract Time may only be adjusted for time extensions approved by City and agreed to by
Change Order executed by City and Contractor in accordance with the requirements of the
Contract Documents.
SECTION 7 COMPENSATION TO CONTRACTOR.
7.1 Contract Sum.
Contractor shall be compensated for satisfactory completion of the Work in compliance with the
Contract Documents in the Not to Exceed amount of Four Million Eight Thousand Two Hundred
Ten Dollars ($4,008,210).
Invitation for Bid (IFB) Package 8 Rev. July 2012
CONSTRUCTION CONTRACT
7.2 Full Compensation.
The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor
and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover
all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen
difficulties or obstructions which may arise or be encountered in performance of the Work until
its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to
suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change
Orders issued, executed and satisfactorily performed in accordance with the requirements of the
Contract Documents.
7.3 Compensation for Extra or Deleted Work.
The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving
Extra Work or Deleted Work based on one or more of the following methods to be selected by
City:
1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor,
which unit prices shall be deemed to include Contractor Markup and
Subcontractor/Sub-subcontractor Markups permitted by this Section.
2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable
Costs and Contractor Markup and Subcontractor Markup computed in accordance
with this Section.
3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups
applicable to such Extra Work computed in accordance with this Section.
Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full
amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is
attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors
and Sub-subcontractors, of every Tier. When using this payment methodology, Contractor
Markup and Subcontractor/Sub-subcontractor Markups, which shall not be compounded, shall be
computed as follows:
7.3.1 Markup Self-Performed Work.
10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by Contractor with its own forces.
7.3.2 Markup for Work Performed by Subcontractors.
15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by a first Tier Subcontractor.
SECTION 8 STANDARD OF CARE.
Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised
personnel. All services performed in connection with this Construction Contract shall be performed in a
manner consistent with the standard of care under California law applicable to those who specialize in
providing such services for projects of the type, scope and complexity of the Project.
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CONSTRUCTION CONTRACT
SECTION 9 INDEMNIFICATION.
9.1 Hold Harmless.
To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its
City Council, boards and commissions, officers, agents, employees, representatives and volunteers
(hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City,
from and against any and all Losses arising directly or indirectly from, or in any manner relating to
any of, the following:
(i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub-
subcontractors, of any tier;
(ii) Performance or nonperformance by Contractor or its Subcontractors or Sub-
subcontractors of any tier, of any of the obligations under the Contract Documents;
(iii) The construction activities of Contractor or its Subcontractors or Sub-subcontractors, of
any tier, either on the Site or on other properties;
(iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or
Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and
(v) Any personal injury, property damage or economic loss to third persons associated with
the performance or nonperformance by Contractor or its Subcontractors or Sub-
subcontractors of any tier, of the Work.
However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses
resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor
shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract
Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor
against City or any other Indemnitee.
9.2 Survival.
The provisions of Section 9 shall survive the termination of this Construction Contract.
SECTION 10 NONDISCRIMINATION.
As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of
this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial status, weight or height of such person. Contractor acknowledges that it has read and understands
the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and will comply with all requirements of Section
2.30.510 pertaining to nondiscrimination in employment.
SECTION 11 INSURANCE AND BONDS.
On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance
and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.
Failure to do so shall be deemed a material breach of this Construction Contract.
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CONSTRUCTION CONTRACT
SECTION 12 PROHIBITION AGAINST TRANSFERS.
City is entering into this Construction Contract based upon the stated experience and qualifications of the
Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign,
hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by
operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or
transfer without said consent shall be null and void.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of
Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor
is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of
Contractor, shall be construed as an assignment of this Construction Contract. Control means more than
fifty percent (50%) of the voting power of the corporation or other entity.
SECTION 13 NOTICES.
13.1 Method of Notice.
All notices, demands, requests or approvals to be given under this Construction Contract shall be given in
writing and shall be deemed served on the earlier of the following:
(i) On the date delivered if delivered personally;
(ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and
addressed as hereinafter provided;
(iii) On the date sent if sent by facsimile transmission;
(iv) On the date sent if delivered by electronic mail; or
(v) On the date it is accepted or rejected if sent by certified mail.
13.2 Notice Recipients.
All notices, demands or requests (including, without limitation, Claims) from Contractor to City
shall include the Project name and the number of this Construction Contract and shall be
addressed to City at:
To City: City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to: City of Palo Alto
Public Works Administration
250 Hamilton Avenue
Palo Alto, CA 94301
Attn:
Or
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CONSTRUCTION CONTRACT
City of Palo Alto
Utilities Engineering
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Maria Ezrina / Jennifer Cioffi
In addition, copies of all Claims by Contractor under this Construction Contract shall be provided
to the following:
Palo Alto City Attorney’s Office
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, California 94303
All Claims shall be delivered personally or sent by certified mail.
All notices, demands, requests or approvals from City to Contractor shall be addressed to:
Daleo, Inc
7190 Forest Street
Gilroy, CA 95020
13.3 Change of Address.
In the event of any change of address, the moving party shall notify the other party of the change
of address in writing. Each party may, by written notice only, add, delete or replace any
individuals to whom and addresses to which notice shall be provided.
SECTION 14 DISPUTE RESOLUTION.
14.1 Resolution of Contract Disputes.
Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section
14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial
court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set
forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such
Contract Disputes.
14.2 Resolution of Other Disputes.
14.2.1 Non-Contract Disputes.
Contract Disputes shall not include any of the following:
(i) Penalties or forfeitures prescribed by statute or regulation imposed by a
governmental agency;
(ii) Third party tort claims for personal injury, property damage or death relating to
any Work performed by Contractor or its Subcontractors or Sub-subcontractors
of any tier;
(iii) False claims liability under California Government Code Section 12650, et. seq.;
(iv) Defects in the Work first discovered by City after Final Payment by City to
Contractor;
(v) Stop notices; or
(vi) The right of City to specific performance or injunctive relief to compel
performance of any provision of the Contract Documents.
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CONSTRUCTION CONTRACT
14.2.2 Litigation, City Election.
Matters that do not constitute Contract Disputes shall be resolved by way of an action
filed in the Superior Court of the State of California, County of Santa Clara, and shall not
be subject to the Contract Dispute Resolution Process. However, the City reserves the
right, in its sole and absolute discretion, to treat such disputes as Contract Disputes.
Upon written notice by City of its election as provided in the preceding sentence, such
dispute shall be submitted by the parties and finally decided pursuant to the Contract
Dispute Resolution Process in the manner as required for Contract Disputes, including,
without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final
determination until after Final Completion of the Work.
14.3 Submission of Contract Dispute.
14.3.1 By Contractor.
Contractors may commence the Contract Dispute Resolution Process upon City's written
response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the
General Conditions. Contractor shall submit a written Statement of Contract Dispute (as
set forth below) to City within seven (7) Days after City rejects all or a portion of
Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a
timely manner shall result in City’s decision by City on the Claim becoming final and
binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of
perjury and shall state with specificity the events or circumstances giving rise to the
Contract Dispute, the dates of their occurrence and the asserted effect on the Contract
Sum and the Contract Time. The Statement of Contract Dispute shall include adequate
supporting data to substantiate the disputed Claim. Adequate supporting data for a
Contract Dispute relating to an adjustment of the Contract Time shall include both of the
following:
(i) All of the scheduling data required to be submitted by Contractor under the
Contract Documents to obtain extensions of time and adjustments to the
Contract Time and
(ii) A detailed, event-by-event description of the impact of each event on
completion of Work. Adequate data to support a Statement of Contract Dispute
involving an adjustment of the Contract Sum must include both of the following:
(a) A detailed cost breakdown and
(b) Supporting cost data in such form and including such information and
other supporting data as required under the Contract Documents for
submission of Change Order Requests and Claims.
14.3.2 By City.
City's right to commence the Contract Dispute Resolution Process shall arise at any time
following City's actual discovery of the circumstances giving rise to the Contract Dispute.
City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor.
A Statement of Contract Dispute submitted by City shall state the events or
circumstances giving rise to the Contract Dispute, the dates of their occurrence and the
damages or other relief claimed by City as a result of such events.
14.4 Contract Dispute Resolution Process.
The parties shall utilize each of the following steps in the Contract Dispute Resolution
Process in the sequence they appear below. Each party shall participate fully and in good
faith in each step in the Contract Dispute Resolution Process, and good faith effort shall
be a condition precedent to the right of each party to proceed to the next step in the
process.
14.4.1 Direct Negotiations.
Designated representatives of City and Contractor shall meet as soon as possible (but not
later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good
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CONSTRUCTION CONTRACT
faith effort to negotiate a resolution to the Contract Dispute. Each party shall be
represented in such negotiations by an authorized representative with full knowledge of
the details of the Claims or defenses being asserted by such party in the negotiations,
and with full authority to resolve such Contract Dispute then and there, subject only to
City’s obligation to obtain administrative and/or City Council approval of any agreed
settlement or resolution. If the Contract Dispute involves the assertion of a right or claim
by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn
being asserted by Contractor against City (“Pass-Through Claim”), then the Subcontractor
or Sub-Subcontractor shall also have a representative attend the negotiations, with the
same authority and knowledge as described above. Upon completion of the meeting, if
the Contract Dispute is not resolved, the parties may either continue the negotiations or
any party may declare negotiations ended. All discussions that occur during such
negotiations and all documents prepared solely for the purpose of such negotiations shall
be confidential and privileged pursuant to California Evidence Code Sections 1119 and
1152.
14.4.2 Deferral of Contract Disputes.
Following the completion of the negotiations required by Paragraph 14.4.1, all
unresolved Contract Disputes shall be deferred pending Final Completion of the Project,
subject to City’s right, in its sole and absolute discretion, to require that the Contract
Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that
have been deferred until Final Completion shall be consolidated within a reasonable time
after Final Completion and thereafter pursued to resolution pursuant to this Contract
Dispute Resolution Process. The parties can continue informal negotiations of Contract
Disputes; provided, however, that such informal negotiations shall not be alter the
provisions of the Agreement deferring final determination and resolution of unresolved
Contract Disputes until after Final Completion.
14.4.3 Mediation.
If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph
14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a
mutually acceptable third party mediator.
.1 Qualifications of Mediator. The parties shall endeavor to select a mediator who
is a retired judge or an attorney with at least five (5) years of experience in
public works construction contract law and in mediating public works
construction disputes. In addition, the mediator shall have at least twenty (20)
hours of formal training in mediation skills.
.2 Submission to Mediation and Selection of Mediator. The party initiating
mediation of a Contract Dispute shall provide written notice to the other party
of its decision to mediate. In the event the parties are unable to agree upon a
mediator within fifteen (15) Days after the receipt of such written notice, then
the parties shall submit the matter to the American Arbitration Association
(AAA) at its San Francisco Regional Office for selection of a mediator in
accordance with the AAA Construction Industry Mediation Rules.
.3 Mediation Process. The location of the mediation shall be at the offices of City.
The costs of mediation shall be shared equally by both parties. The mediator
shall provide an independent assessment on the merits of the Contract Dispute
and recommendations for resolution. All discussions that occur during the
mediation and all documents prepared solely for the purpose of the mediation
shall be confidential and privileged pursuant to California Evidence Code
Sections 1119 and 1152.
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CONSTRUCTION CONTRACT
14.4.4 Binding Arbitration.
If the Contract Dispute is not resolved by mediation, then any party may submit the
Contract Dispute for final and binding arbitration pursuant to the provisions of California
Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be
final and may be entered as a judgment by any court of competent jurisdiction. Such
arbitration shall be conducted in accordance with the following:
.1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in
arbitration in accordance with the regulations promulgated pursuant to
California Public Contract Code Section 10240.5.
.2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties.
The arbitrator shall be a retired judge or an attorney with at least five (5) years
of experience in public works construction contract law and in arbitrating public
works construction disputes. In addition, the arbitrator shall have at least
twenty (20) hours of formal training in arbitration skills. In the event the parties
cannot agree upon an arbitrator, the provisions of California Public Contract
Code Section 10240.3 shall be followed in selecting an arbitrator possessing the
qualifications required herein.
.3 Hearing Days and Location. Arbitration hearings shall be held at the offices of
City and shall, except for good cause shown to and determined by the arbitrator,
be conducted on consecutive business days, without interruption or
continuance.
.4 Hearing Delays. Arbitration hearings shall not be delayed except upon good
cause shown.
.5 Recording Hearings. All hearings to receive evidence shall be recorded by a
certified stenographic reporter, with the costs thereof borne equally by City and
Contractor and allocated by the arbitrator in the final award.
.6 Limitation of Depositions. The parties may conduct discovery in accordance
with the provisions of section 10240.11 of the Public Contract Code; provided,
however, that depositions shall be limited to both of the following:
(i) Ten (10) percipient witnesses for each party and 5 expert witnesses per
party.
Upon a showing of good cause, the arbitrator may increase the number of
permitted depositions. An individual who is both percipient and expert shall, for
purposes of applying the foregoing numerical limitation only, be deemed an
expert. Expert reports shall be exchanged prior to receipt of evidence, in
accordance with the direction of the arbitrator, and expert reports (including
initial and rebuttal reports) not so submitted shall not be admissible as
evidence.
.7 Authority of the Arbitrator. The arbitrator shall have the authority to hear
dispositive motions and issue interim orders and interim or executory awards.
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.8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a
jury trial with respect to any Contract Dispute that is subject to binding
arbitration in accordance with the provisions of this Paragraph 14.4.4.
Contractor shall include this provision in its contracts with its Subcontractors
who provide any portion of the Work.
14.5 Non-Waiver.
Participation in the Contract Dispute Resolution Process shall not waive, release or compromise
any defense of City, including, without limitation, any defense based on the assertion that the
rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by
Contractor due to Contractor’s failure to comply with the Contract Documents, including, without
limitation, Contractor’s failure to comply with any time periods for providing notice of requests
for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting
documentation of Claims.
SECTION 15 DEFAULT.
15.1 Notice of Default.
In the event that City determines, in its sole discretion, that Contractor has failed or refused to
perform any of the obligations set forth in the Contract Documents, or is in breach of any
provision of the Contract Documents, City may give written notice of default to Contractor in the
manner specified for the giving of notices in the Construction Contract.
15.2 Opportunity to Cure Default.
Except for emergencies, Contractor shall cure any default in performance of its obligations under
the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)
after receipt of written notice. However, if the breach cannot be reasonably cured within such
time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as
City may reasonably require) and will diligently and continuously prosecute such cure to
completion within a reasonable time, which shall in no event be later than ten (10) Days after
receipt of such written notice.
SECTION 16 CITY'S RIGHTS AND REMEDIES.
16.1 Remedies Upon Default.
If Contractor fails to cure any default of this Construction Contract within the time period set forth
above in Section 15, then City may pursue any remedies available under law or equity, including,
without limitation, the following:
16.1.1 Delete Certain Services.
City may, without terminating the Construction Contract, delete certain portions of the Work,
reserving to itself all rights to Losses related thereto.
16.1.2 Perform and Withhold.
City may, without terminating the Construction Contract, engage others to perform the Work or
portion of the Work that has not been adequately performed by Contractor and withhold the cost
thereof to City from future payments to Contractor, reserving to itself all rights to Losses related
thereto.
16.1.3 Suspend The Construction Contract.
City may, without terminating the Construction Contract and reserving to itself all rights to Losses
related thereto, suspend all or any portion of this Construction Contract for as long a period of
time as City determines, in its sole discretion, appropriate, in which event City shall have no
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CONSTRUCTION CONTRACT
obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor
for damages if City directs Contractor to resume Work.
16.1.4 Terminate the Construction Contract for Default.
City shall have the right to terminate this Construction Contract, in whole or in part, upon the
failure of Contractor to promptly cure any default as required by Section 15. City’s election to
terminate the Construction Contract for default shall be communicated by giving Contractor a
written notice of termination in the manner specified for the giving of notices in the Construction
Contract. Any notice of termination given to Contractor by City shall be effective immediately,
unless otherwise provided therein.
16.1.5 Invoke the Performance Bond.
City may, with or without terminating the Construction Contract and reserving to itself all rights to
Losses related thereto, exercise its rights under the Performance Bond.
16.1.6 Additional Provisions.
All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in
addition to those rights and remedies available in law or in equity. Designation in the Contract
Documents of certain breaches as material shall not waive the City’s authority to designate other
breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the
City from terminating the Agreement for breaches that are not material. City’s determination of
whether there has been noncompliance with the Construction Contract so as to warrant exercise
by City of its rights and remedies for default under the Construction Contract, shall be binding on
all parties. No termination or action taken by City after such termination shall prejudice any other
rights or remedies of City provided by law or equity or by the Contract Documents upon such
termination; and City may proceed against Contractor to recover all liquidated damages and
Losses suffered by City.
16.2 Delays by Sureties.
Without limiting to any of City’s other rights or remedies, City has the right to suspend the
performance of the Work by Contractor’s sureties in the event of any of the following:
(i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure
full compliance with the Construction Contract within the Contract Time;
(ii) The sureties’ abandonment of the Work;
(iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably
delaying the Work;
(iv) The sureties’ violation of any terms of the Construction Contract;
(v) The sureties’ failure to perform according to the Contract Documents; or
(vi) The sureties’ failure to follow City’s instructions for completion of the Work within the
Contract Time.
16.3 Damages to City.
16.3.1 For Contractor's Default.
City will be entitled to recovery of all Losses under law or equity in the event of
Contractor’s default under the Contract Documents.
16.3.2 Compensation for Losses.
In the event that City's Losses arise from Contractor’s default under the Contract Documents, City
shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the
Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be
deducted from the amounts withheld. Should the amount withheld exceed the amount deducted,
the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the
Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the
difference and shall promptly remit same to City.
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CONSTRUCTION CONTRACT
16.4 Suspension by City for Convenience.
City may, at any time and from time to time, without cause, order Contractor, in writing, to
suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an
aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as
a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s
expense, comply with the order and take all reasonable steps to minimize costs allocable to the
Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if
any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered
by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume
and continue with the Work. A Change Order will be issued to cover any adjustments of the
Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order
shall not be the exclusive method for City to stop the Work.
16.5 Termination Without Cause.
City may, at its sole discretion and without cause, terminate this Construction Contract in part or
in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under
this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such
termination and Contractor waives any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect or incidental damages of any kind resulting from termination without cause.
16.5.1 Compensation.
Following such termination and within forty-five (45) Days after receipt of a billing from
Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the
following to Contractor as Contractor’s sole compensation for performance of the Work :
.1 For Work Performed. The amount of the Contract Sum allocable to the portion
of the Work properly performed by Contractor as of the date of termination,
less sums previously paid to Contractor.
.2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors and
Sub-subcontractors for:
(i) Demobilizing and
(ii) Administering the close-out of its participation in the Project (including,
without limitation, all billing and accounting functions, not including
attorney or expert fees) for a period of no longer than thirty (30) Days
after receipt of the notice of termination.
.3 For Fabricated Items. Previously unpaid cost of any items delivered to the
Project Site which were fabricated for subsequent incorporation in the Work.
16.5.2 Subcontractors.
Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts
permitting termination for convenience by Contractor on terms that are consistent with this
Construction Contract and that afford no greater rights of recovery against Contractor than are
afforded to Contractor against City under this Section.
Invitation for Bid (IFB) Package 18 Rev. July 2012
CONSTRUCTION CONTRACT
16.6 Contractor’s Duties Upon Termination.
Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the
notice directs otherwise, do the following:
(i) Immediately discontinue the Work to the extent specified in the notice;
(ii) Place no further orders or subcontracts for materials, equipment, services or facilities,
except as may be necessary for completion of such portion of the Work that is not
discontinued;
(iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the
notice of termination, of all subcontracts, purchase orders and contracts that are
outstanding, including, without limitation, the terms of the original price, any changes,
payments, balance owing, the status of the portion of the Work covered and a copy of
the subcontract, purchase order or contract and any written changes, amendments or
modifications thereto, together with such other information as City may determine
necessary in order to decide whether to accept assignment of or request Contractor to
terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions
thereof, that City elects to accept by assignment and cancel, on the most favorable terms
reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,
that City does not elect to accept by assignment; and
(v) Thereafter do only such Work as may be necessary to preserve and protect Work already
in progress and to protect materials, plants, and equipment on the Project Site or in
transit thereto.
SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES.
17.1 Contractor’s Remedies.
Contractor may terminate this Construction Contract only upon the occurrence of one of the
following:
17.1.1 For Work Stoppage.
The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any
Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of
an order of a court or other public authority other than City having jurisdiction or due to an act of
government, such as a declaration of a national emergency making material unavailable. This
provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension
notice issued either for cause or for convenience.
17.1.2 For City's Non-Payment.
If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of
notice from Contractor, Contractor may terminate the Construction Contract (30) days following a
second notice to City of Contractor’s intention to terminate the Construction Contract.
17.2 Damages to Contractor.
In the event of termination for cause by Contractor, City shall pay Contractor the sums provided
for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive
compensation and agrees to waive any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect and incidental damages, of any kind.
SECTION 18 ACCOUNTING RECORDS.
18.1 Financial Management and City Access.
Contractor shall keep full and detailed accounts and exercise such controls as may be necessary
for proper financial management under this Construction Contract in accordance with generally
Invitation for Bid (IFB) Package 19 Rev. July 2012
CONSTRUCTION CONTRACT
accepted accounting principles and practices. City and City's accountants during normal business
hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports,
ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase
orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these
documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution
of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by
law.
18.2 Compliance with City Requests.
Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition
precedent to filing or maintenance of any legal action or proceeding by Contractor against City
and to Contractor's right to receive further payments under the Contract Documents. City many
enforce Contractor’s obligation to provide access to City of its business and other records referred
to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent
mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such
court, without the necessity of oral testimony.
SECTION 19 INDEPENDENT PARTIES.
Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’
of the other party. City, its officers or employees shall have no control over the conduct of Contractor or
its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.
SECTION 20 NUISANCE.
Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in
connection in the performance of services under this Construction Contract.
SECTION 21 PERMITS AND LICENSES.
Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall
provide, procure and pay for all licenses, permits, and fees, required by the City or other government
jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses
for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation
shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set
forth in the licenses or permits issued by other agencies.
SECTION 22 WAIVER.
A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition
contained herein, whether of the same or a different character.
SECTION 23 GOVERNING LAW.
This Construction Contract shall be construed in accordance with and governed by the laws of the State of
California.
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CONSTRUCTION CONTRACT
SECTION 24 COMPLETE AGREEMENT.
This Agreement represents the entire and integrated agreement between the parties and supersedes all
prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended
only by a written instrument, which is signed by the parties.
SECTION 25 SURVIVAL OF CONTRACT.
The provisions of the Construction Contract which by their nature survive termination of the Construction
Contract or Final Completion, including, without limitation, all warranties, indemnities, payment
obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect
after Final Completion or any termination of the Construction Contract.
SECTION 26 PREVAILING WAGES.
This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in
the performance and implementation of the Project, because the City, pursuant to its authority as a
chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City
invokes the exemption from the state prevailing wage requirement for this Project and declares that the
Project is funded one hundred percent (100%) by the City of Palo Alto.
Or
The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the
California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.
Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has
obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work
in this locality for each craft, classification, or type of worker needed to execute the contract for this
Project from the Director of the Department of Industrial Relations. Copies of these rates may be obtained
at cost at the Purchasing office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage
rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum.
Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor
Code.
SECTION 27 NON APPROPRIATION.
This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto
Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds
for this Construction Contract are no longer available. This section shall take precedence in the event of a
conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 28 AUTHORITY.
The individuals executing this Agreement represent and warrant that they have the legal capacity and
authority to do so on behalf of their respective legal entities.
SECTION 29 ATTORNEY FEES.
Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the
claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2,
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CONSTRUCTION CONTRACT
the prevailing party in any action brought to enforce the provision of this Agreement may recover its
reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be
entitled to recover an amount equal to the fair market value of legal services provided by attorneys
employed by it as well as any attorney’s’ fees paid to third parties.
SECTION 30 COUNTERPARTS
This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,
constitute a single binding agreement.
SECTION 31 SEVERABILITY.
In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not be affected.
IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the
date and year first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
___________________________
Senior Deputy City Attorney
DALEO, INC.
By:___________________________
Name:_________________________
Title:________________________
22
Invitation for Bid (IFB) Package Rev. July 2012
CONSTRUCTION CONTRACT
CITY OF PALO ALTO
BID SUMMARY Attachment B
WATER MAIN REPLACEMENT PROJECT 25; CIP WS-11000, IFB 157253 Bid Date: 12/23/2014
Item Quantity Unit Description Unit Extended Unit Extended
No.Price ($) Price ($) Price ($) Price ($)
BASE BID
1 90 LF Install 16" DI pipe by open cut method $330.00 $29,700.00 $1,068.00 $96,120.00
2 730 LF Install 16" HDPE pipe by HDD or open cut method $320.00 $233,600.00 $307.00 $224,110.00
3 50 LF Install 12" DI pipe by open cut method $290.00 $14,500.00 $851.00 $42,550.00
4 50 LF Install 12" HDPE pipe by HDD or open cut method $280.00 $14,000.00 $932.00 $46,600.00
5 1,891 LF Install 10" HDPE pipe by HDD or open cut method $250.00 $472,750.00 $247.75 $468,495.25
6 50 LF Install 8" DI pipe by open cut method $260.00 $13,000.00 $586.00 $29,300.00
7 7,971 LF Install 8" HDPE pipe by HDD or open cut method $220.00 $1,753,620.00 $151.70 $1,209,200.70
8 174 Each Install 2" HDPE services (single meter) by HDD or open cut method $2,500.00 $435,000.00 $3,428.00 $596,472.00
9 50 Each Install 2" HDPE services (two meters) by HDD or open cut method $2,600.00 $130,000.00 $4,327.00 $216,350.00
10 1 Each Install 2" HDPE service (three or four meters) by HDD or open cut method $3,000.00 $3,000.00 $5,500.00 $5,500.00
11 15 Each Install 6" fire hydrant assembly lines by HDD or open cut method $8,000.00 $120,000.00 $11,100.00 $166,500.00
12 15 Each Abandon existing fire hydrant assemblies $1,000.00 $15,000.00 $850.00 $12,750.00
13 4 Each Install 6" fire hydrant assembly lines w/ blow-off by HDD or open cut meth $10,000.00 $40,000.00 $11,100.00 $44,400.00
14 1 Each Reconnect existing 2" PVC main with 4" HDPE at the P/L (Homer Avenue $5,500.00 $5,500.00 $7,500.00 $7,500.00
15 8 Each Perform 6" water main tie-in/abandonment $5,000.00 $40,000.00 $9,750.00 $78,000.00
16 9 Each Perform 8" water main tie-in/abandonment $6,500.00 $58,500.00 $11,030.00 $99,270.00
17 7 Each Perform 12" water main tie-in/abandonment $10,000.00 $70,000.00 $14,435.00 $101,045.00
18 6 Each Perform 16" water main tie-in/abandonment $12,000.00 $72,000.00 $17,955.00 $107,730.00
19 10 Each Install 6" linestoppers $7,500.00 $75,000.00 $7,700.00 $77,000.00
20 3 Each Install 8" linestoppers $8,500.00 $25,500.00 $8,850.00 $26,550.00
21 5 Each Install 12" linestopper $12,000.00 $60,000.00 $12,000.00 $60,000.00
22 6 Each Install 16" linestoppers $15,000.00 $90,000.00 $20,000.00 $120,000.00
23 6 Each Install 1" air/vacuum valve combo $3,000.00 $18,000.00 $5,200.00 $31,200.00
24 3 Each Install 2" air/vacuum valve combo $4,000.00 $12,000.00 $5,800.00 $17,400.00
25 600 LF Remove existing 6" ACP water main (Homer Avenue) $30.00 $18,000.00 $33.00 $19,800.00
26 3 Each Temporary 1" service reconnect (Homer Avenue) $1,400.00 $4,200.00 $3,000.00 $9,000.00
27 3 Each Temporary 2" service reconnect (Homer Avenue) $1,900.00 $5,700.00 $3,750.00 $11,250.00
28 1 Lump Sum Perform GPS survey $21,000.00 $21,000.00 $34,320.00 $34,320.00
Total of Base Bid (Items 1 through 28 only, with all applicable taxes included) $3,849,570.00 $3,958,412.95
B: ADD ALTERNATE BID
29 150 CY Recycle asphalt w/ Petro Mat $25.00 $3,750.00 $5.00 $750.00
30 300 LF Perform removal of the existing pipe $30.00 $9,000.00 $30.00 $9,000.00
31 12 Each Replace water meter boxes for 1" meters $200.00 $2,400.00 $300.00 $3,600.00
32 5 Each Replace water meter boxes for 2" meters $300.00 $1,500.00 $500.00 $2,500.00
33 12 Each Exchange 5/8" or 1" water meters $200.00 $2,400.00 $150.00 $1,800.00
34 12 Each Exchange 1-1/2" or 2" water meters $250.00 $3,000.00 $250.00 $3,000.00
35 50 SF Install additional pavement (Concrete) $15.00 $750.00 $5.00 $250.00
36 50 SF Install additional pavement (Asphalt Concrete) $15.00 $750.00 $6.00 $300.00
37 50 LF Install curb $17.00 $850.00 $10.00 $500.00
38 50 LF Install gutter $17.00 $850.00 $10.00 $500.00
39 50 SF Install sidewalk $15.00 $750.00 $6.00 $300.00
40 35,000 Inch Install additional pavement (thickness) $1.00 $35,000.00 $0.20 $7,000.00
41 25,000 Inch Saw cut additional pavement (thickness) $0.15 $3,750.00 $0.25 $6,250.00
42 50 SF Perform additional sawcutting $2.00 $100.00 $0.95 $47.50
43 500 SF Install slurry seal $2.00 $1,000.00 $2.50 $1,250.00
44 50 Each Abandon existing valves $110.00 $5,500.00 $110.00 $5,500.00
45 50 Each Abandon unused meter boxes $75.00 $3,750.00 $45.00 $2,250.00
46 10 Ton Disposal of excavated soils at Class 1 landfill $100.00 $1,000.00 $300.00 $3,000.00
47 10 Ton Disposal of excavated soils at Class 2 landfill $50.00 $500.00 $200.00 $2,000.00
Total of Add Alternate Bid (Items 29 through 47 only, with all applicable taxes included) $76,600.00 $49,797.50
Grand Total - Base Bid and Add Alternate Bid (items 01 through 47, with all applicable taxes included)$3,926,170.00 $4,008,210.45
BID SUMMARY ENGINEER'S ESTIMATE Daleo Inc.
City of Palo Alto (ID # 5533)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Embarcadero Rd & Town Country Intersection Improvements
Contract
Title: Approval of a Contract with St Francis Electric in the Amount of
$274,290 for Traffic Signal Modifications at the Embarcadero Road & Town
and Country-Palo Alto High School Intersection
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council:
1. Approve, and authorize the City Manager or his designee to execute, the attached
construction contract with St Francis Electric (Attachment A) in an amount not to exceed
$249,354 for Traffic Signal Modifications at the Embarcadero Road & Town and Country-
Palo Alto High School Intersection. (Capital Improvement Program Project PL-15001,
Embarcadero Road Corridor Improvements); and
2. Authorize the City Manager or his designee to negotiate and execute one or more
change orders to the contract with St Francis Electric for related, additional but
unforeseen work which may develop during the project, the total value of which shall
not exceed $24,936.
Background
The Embarcadero Road corridor provides direct east-west connections between Highway 101
and Stanford University for visitors to the city and supports local travel with connections to
Town & Country, Palo Alto High School, Palo Alto Medical Foundation, and El Camino Real. The
segment of Embarcadero Road between High Street and El Camino Real has been an area of
community concern for many years with three closely spaced traffic signals within 750-FT of
one another at El Camino Real (Caltrans-maintained), the driveways serving Town & Country
and Palo Alto High School, and Trader Joe’s Market.
In 2013 the City initiated a preliminary planning study to provide near-term improvements
City of Palo Alto Page 2
along this section of Embarcadero Road and to set in motion a focused and community-driven
Concept Plan Line study process for final improvements. As part of the FY 2015 Capital
Improvement Program the City initiated a design phase to modify the two Palo Alto maintained
traffic signals at Town & Country-Palo Alto High School and the Trader Joe’s Market. The City
initiated an Invitation for Bids in December 2014 for the project and received six (6) bids in
response to the solicitation. The City is recommending award of a construction contract to St
Francis Electric for the project in the amount of $274,290, including a 10% contingency. The
City anticipates a six month construction period to allow for the procurement of traffic signal
pole standards for the project and to accommodate a more conservative construction schedule
that will provide flexibility to accommodate the Town & Country retail operations and Palo Alto
High School activities.
Summary of Key Issues
Traffic Signal Operations
The two Palo Alto maintained traffic signals at Embarcadero Road & Town and Country-Paly and
Embarcadero Road & Trader Joe’s Market currently operate independently of one another. A
third traffic signal immediately west at El Camino Real maintained by the California Department
of Transportation – Caltrans also operates independently. These three traffic signals are
located within 750 feet of one another and due to a lack of traffic signal coordination between
the traffic signals the result is inefficient operations along Embarcadero Road. The Trader Joe’s
Market traffic signal includes a pedestrian crossing across Embarcadero Road and was last
modified in 2008 to provide traffic signal controls for the right turn only movement exiting
Trader Joe’s Market. The Town & Country-Paly traffic signal also received modifications in 2008
focused primarily on median island installations at each driveway approach and replacement of
traffic signal pole standards.
The preliminary planning study conducted by TJKM Transportation Consultants in 2013 includes
the following near-term recommendations:
Remove the Trader Joe’s Market – Right Turn Only traffic signal and replace with stop
control signage
Modify the Embarcadero Road and Town & Country-Paly and Embarcadero Road &
Trader Joe’s Market traffic signal facilities to operate as one traffic signal through the
use of a single traffic signal controller
Modify roadway markings on Embarcadero Road to lengthen the westbound left turn
storage into the Paly Driveway and coordinate with Town & Country to provide a
dedicated left turn lane exiting the shopping center
The Trader Joe’s Market – Right Turn Only traffic signal results in inefficient operations of the
market driveway because motorists either move beyond the marked intersection limit lines
bypassing benefits offered from the traffic signal during commute hours or motorists queue up
traffic in the parking lot. Removal of the Trader Joe’s Market – Right Turn Only traffic signal
City of Palo Alto Page 3
controllers will turn the intersection into a Right Turn Only movement which motorists can
execute during gaps in traffic on Embarcadero Road. Existing roadway geometry provides a
merge zone on Embarcadero Road for driveway traffic to enter safely onto westbound
Embarcadero Road.
Removal of the Trader Joe’s Market traffic signal facilities leaves only the pedestrian controls at
the intersection. During the commute and the noontime hours pedestrian activity at the
intersection exacerbates Embarcadero Road traffic conditions because motorists are often
forced to stop at each of the three intersections as they progress through the corridor.
Combining at least the two Palo Alto-maintained traffic signals will help to ensure
synchronization along Embarcadero Road by controlling the opportunities when pedestrians
can stop traffic and synchronizing those gap opportunities with driveway movements from
Town & Country and Palo Alto High School. During the design phase, additional efficiencies
were identified and introduced into the project including new Right Turn arrow controls that
allow egress traffic from the Town & Country Shopping Center while left turns by vehicles
entering the shopping center are being served.
The following simplified traffic signal phasing diagram depicts the operation of the combined
traffic signal facilities and how during each cycle, each side of the intersection will operate in
relation to the other.
Staff did approach the Town & Country Shopping Center administration, Ellis Partners,
regarding interest in modifying their driveway approach to provide a third dedicated left turn
lane to maximize storage of the driveway but they opted to wait until the larger planning phase
was initiated so that further traffic analysis could take place then and to allow the proposed
near-term improvements to take effect. Ellis Partners did agree to work with the City during
construction to allow for roadway marking modifications to provide the dedicated right turn
lane exiting the Town & Country shopping center.
Additional improvements proposed as part of this project include improvements to the Paly
driveway. Currently, the Paly driveway has very tight radius returns that require motorists to
exit the driveway completely prior to turning right onto Embarcadero to head east towards
Highway 101; this results in inefficiencies during the morning commute causing the Paly
driveway to queue since longer gaps in traffic on Embarcadero Road are required to allow
City of Palo Alto Page 4
motorists to exit the driveway. The project proposes to provide a wider 25-FT radius on the
southeast corner of the driveway requiring replacement of the traffic signal pole standards on
that corner and the removal of one existing tree to allow for a bicycle entry ramp to connect to
the sidewalk trail. A new traffic signal cabinet and intersection rewiring are also part of the
project.
Invitation for Bids (IFB) No. 157158A Process
The City released an IFB for the Embarcadero Road Improvements – Traffic Signal Modification
Project in December. Bids were due on December 23, 2014. A total of 6 bids were received
and are summarized in the following table:
IFB No. 157158A Bid Results
Embarcadero Road Improvements – Traffic Signal Modification
No. Contractor Bid Price
1 St Francis Electric $249,354
2 W Bradley Electric $251,679
3 Columbia Electric $272,821
4 Rosendin $313,346
5 Phoenix Electric $314,000
6 Tennyson Electric $343,850
The City verified St Francis Electric’s contractor license and checked project references. The
company is in good standing with the State of California and references, including the San
Francisco International Airport and City of San Jose, noted positive experiences with the
company. A 10% contingency in the amount of $24,936 is recommended on top of the St
Francis Electric low bid for a total contract award of $274,290.
Concept Plan Line Study
The City has a pending Request for Proposals (RFP) to bring on a consultant team to study the
next phase of Embarcadero Road improvements between High Street and El Camino Real. The
community-driven process will include options to widen Embarcadero Road between the Town
& Country-Paly Driveway and El Camino Real, south into the Paly campus, to allow for
installation of two westbound left turn lanes. The study will also focus on bicycle-pedestrian
connections which may include removal of the existing pedestrian crossing in front of Trader
Joe’s Market. This Concept Plan Line Study will also include development of a Project Study
Report (PSR) with Caltrain to identify new intersection improvements at El Camino Real. The
City has active PSR discussions with Caltrans for improvements at El Camino Real & Churchill
Avenue, introducing opportunities to extend the treatments already in place at El Camino Real
& Stanford Avenue north towards Embarcadero Road.
Policy Implications
The following Comprehensive Plan goals and policies support the implementation of the traffic
signal modifications at the Embarcadero Road and Town & Country-Paly intersection:
City of Palo Alto Page 5
Goal T-4: An efficient roadway network for all users
Policy T-29: Make effective use of the traffic-carrying ability of Palo Alto’s major street
network without compromising the need of pedestrians and bicyclists also using
this network.
Resource Impact
The Capital Improvement Program (CIP) PL-15001, Embarcadero Road Corridor Improvements,
includes funding for this project.
Timeline
The City anticipates a conservative six months construction phase for the project to allow
procurement of traffic signal pole standards and traffic signal cabinets which are traditionally
long-lead time materials. The longer construction period also allows for shorter construction
windows during daytime operations to avoid traffic impacts from the popular Town & Country
shopping plaza and Paly.
Environmental Review
The proposed project involves a minor modification to an existing intersection and is
categorically exempt from review under the California Environmental Quality Act (CEQA).
Courtesy Copies
Dean Robinson, Ellis Partners
Glenn “Max” McGee, Superintendent PAUSD
Kim Diorio, Palo Alto High School Principal
Attachments:
Attachment A: Contract with St Francis Electric Inc. for Embarcadero Road
Improvements (PDF)
Invitation for Bid (IFB) Package 1 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
Contract No. C15157158
City of Palo Alto
and
St. Francis Electric, Inc.
PROJECT
“Embarcadero Road Improvements Traffic Signal
Modification”
Invitation for Bid (IFB) Package 2 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
TABLE OF CONTENTS
SECTION 1. INCORPORATION OF RECITALS AND DEFINITIONS……………………………….. .................... 5
1.1 Recitals .............................................................................................................. 5
1.2 Definitions .......................................................................................................... 5
SECTION 2. THE PROJECT……………………………………………………………………………… .............................. 5
SECTION 3. THE CONTRACT DOCUMENTS…………………………………………………………. ......................... 5
3.1 List of Documents …………………………………………………………………………………………. ..... 5
3.2 Order of Precedence …………………………………………………………………………… ............... 6
SECTION 4. THE WORK ………………………………………………………………………………….............................. 6
SECTION 5. PROJECT TEAM ………………………………………………………………………….. ............................. 7
SECTION 6. TIME OF COMPLETION ………………………………………………………………….. .......................... 7
6.1 Time Is of Essence ....................................................................................... ……… 7
6.2 Commencement of Work .................................................................................... 7
6.3 Contract Time ..................................................................................................... 7
6.4 Liquidated Damages ........................................................................................... 7
6.4.1 Entitlement……………………………………………………………………………………………. 7
6.4.2 Daily Amount…………………………………………………………………………………………. 10
6.4.3 Exclusive Remedy………………………………………………………………………………….. 10
6.4.4 Other Remedies…………………………………………………………………………………... 10
6.5 Adjustments to Contract Time ......................................................................... … 10
SECTION 7. COMPENSATION TO CONTRACTOR………………………………………………………………………... 10
7.1 Contract Sum ……………………………………………………………………………………………………… 10
7.2 Full Compensation …………………………………………………………………………………………….. 10
7.3 Compensation for Extra or Deleted Work …………………………………………………………….10
7.3.1 Self Performed Work………………………………………………………………………………… 11
7.3.2 Subcontractors…………………………………………………………………………………………. 11
SECTION 8. STANDARD OF CARE ..................................................................................................
11
SECTION 9. INDEMNIFICATION .................................................................................................... 11
9.1 Hold Harmless…………………………………………………………………………………………………….. 11
9.2 Survival………………………………………………………………………………………………………………. 12
SECTION 10. NONDISCRIMINATION ............................................................................................. 12
SECTION 11. INSURANCE AND BONDS ......................................................................................... 12
Invitation for Bid (IFB) Package 3 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 12. PROHIBITION AGAINST TRANSFERS ......................................................................... 12
SECTION 13. NOTICES .................................................................................................................. 12
13.1 Method of Notice ………………………………………………………………………………………………..12
13.2 Notice Recipients ................................................................................................ 12
13.3 Change of Address .............................................................................................. 13
14.1 Resolution of Contract Disputes .......................................................................... 13
14.2 Resolution of Other Disputes .............................................................................. 14
14.2.1 Non-Contract Disputes ……………………………………………………………………………….14
14.2.2 Litigation, City Election ……………………………………………………...........................14
14.3 Submission of Contract Dispute …………………………………………………………………………..14
14.3.1 By Contractor …………………………………………………………………………………………. 14
14.3.2 By City ……………………………………………………………………………………………………. 15
14.4 Contract Dispute Resolution Process .............................................................. …… 15
14.4.1 Direct Negotiation………………………………………………………………………… ………….15
14.4.2 Deferral of Contract Disputes ………………………………………………………………… 15
14.4.3 Mediation ………………………………………………………………………………………………….15
14.4.4 Binding Arbitration ……………………………………………………………………………………16
14.5 Non-Waiver …………………………………………………………………………………………………………17
SECTION 15. DEFAULT ................................................................................................................. 17
15.1 Notice of Default ................................................................................................ 17
15.2 Opportunity to Cure Default ............................................................................... 17
SECTION 16. CITY'S RIGHTS AND REMEDIES ................................................................................. 18
16.1 Remedies Upon Default ...................................................................................... 18
16.1.1 Delete Certain Servic………………………………………………………...........................18
16.1.2 Perform and Withhold ……………………………………………………………………………. 18
16.1.3 Suspend The Construction Contract ………………………………………………………….18
16.1.4 Terminate the Construction Contract for Default ……………………………………..18
16.1.5 Invoke the Performance Bond ………………………………………………………………….18
16.1.6 Additional Provisions ……………………………………………………………………………….18
16.2 Delays by Sureties .............................................................................................. 19
16.3 Damages to City ................................................................................................. 19
16.3.1 For Contractor's Default …………………………………………………………………………..19
16.3.2 Compensation for Losses ………………………………………………………………………….19
16.5 Suspension by City for Convenience .................................................................... 19
16.6 Termination Without Cause ................................................................................ 19
Invitation for Bid (IFB) Package 4 Rev. July 2012
CONSTRUCTION CONTRACT
16.6.1 Compensation ………………………………………………………………………………………….19
16.6.2 Subcontractors …………………………………………………………………………………………20
16.7 Contractor’s Duties Upon Termination ................................................................ 20
SECTION 17. CONTRACTOR'S RIGHTS AND REMEDIES .................................................................. 20
17.1 Contractor’s Remedies ........................................................................................ 20
17.1.1 For Work Stoppage ………………………………………………………………………………….. 21
17.1.2 For City's Non-Payment …………………………………………………………………………… 21
17.2 Damages to Contractor ....................................................................................... 21
SECTION 18. ACCOUNTING RECORDS .......................................................................................... 21
18.1 Financial Management and City Access ......................................................... ……. 21
18.2 Compliance with City Requests ....................................................................... …. 22
SECTION 19. INDEPENDENT PARTIES ........................................................................................... 22
SECTION 20. NUISANCE ............................................................................................................... 22
SECTION 21. PERMITS AND LICENSES........................................................................................... 22
SECTION 22. WAIVER .................................................................................................................. 22
SECTION 23. GOVERNING LAW .................................................................................................... 22
SECTION 24. COMPLETE AGREEMENT .......................................................................................... 22
SECTION 25. SURVIVAL OF CONTRACT ......................................................................................... 22
SECTION 26. PREVAILING WAGES ................................................................................................ 23
SECTION 27. NON APPROPRIATION ............................................................................................. 23
SECTION 28. GOVERNMENTAL POWERS ...................................................................................... 23
SECTION 29. ATTORNEY FEES ...................................................................................................... 23
SECTION 30. COUNTERPARTS ...................................................................................................... 24
SECTION 31. SEVERABILITY .......................................................................................................... 24
Invitation for Bid (IFB) Package 5 Rev. July 2012
CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT entered into on February 23, 2015 (“Execution Date”) by and between
the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and ST. FRANCIS ELECTRIC,
INC. ("Contractor"), is made with reference to the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the laws of the State of
California with the power to carry on its business as it is now being conducted under the statutes of the
State of California and the Charter of City.
B. Contractor is a corporation duly organized and in good standing in the State of California,
Contractor’s License Number 335324. Contractor represents that it is duly licensed by the State of
California and has the background, knowledge, experience and expertise to perform the obligations set
forth in this Construction Contract.
C. On December 11, 2014, City issued an Invitation for Bids (IFB) to contractors for the Embarcadero
Road Improvements Traffic Signal Modification (“Project”). In response to the IFB, Contractor submitted a
bid.
D. City and Contractor desire to enter into this Construction Contract for the Project, and other
services as identified in the Bid Documents for the Project upon the following terms and conditions.
NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is mutually agreed by and between the undersigned parties as follows:
SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.
1.1 Recitals.
All of the recitals are incorporated herein by reference.
1.2 Definitions.
Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the
General Conditions. If there is a conflict between the definitions in this Construction Contract and
in the General Conditions, the definitions in this Construction Contract shall prevail.
SECTION 2 THE PROJECT.
The Project is the construction of the Embarcadero Road Improvements Traffic Signal Modification
("Project").
SECTION 3 THE CONTRACT DOCUMENTS.
3.1 List of Documents.
The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist
of the following documents which are on file with the Purchasing Division and are hereby incorporated by
reference.
1) Change Orders
Invitation for Bid (IFB) Package 6 Rev. July 2012
CONSTRUCTION CONTRACT
2) Field Change Orders
3) Contract
4) Project Plans and Drawings
5) Technical Specifications
6) Special Provisions
7) Notice Inviting Bids
8) Instructions to Bidders
9) General Conditions
10) Bidding Addenda
11) Invitation for Bids
12) Contractor's Bid/Non-Collusion Affidavit
13) Reports listed in the Bidding Documents
14) Public Works Department’s Standard Drawings and Specifications dated 2007 and
updated from time to time
15) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards dated 2005
and updated from time to time
16) City of Palo Alto Traffic Control Requirements
17) City of Palo Alto Truck Route Map and Regulations
18) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre-
Qualification Checklist (if applicable)
19) Performance and Payment Bonds
20) Insurance Forms
3.2 Order of Precedence.
For the purposes of construing, interpreting and resolving inconsistencies between and among the
provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the
preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City
shall have the sole power to decide which document or provision shall govern as may be in the best
interests of the City.
SECTION 4 THE WORK.
The Work includes all labor, materials, equipment, services, permits, fees, licenses and taxes, and all other
things necessary for Contractor to perform its obligations and complete the Project, including, without
Invitation for Bid (IFB) Package 7 Rev. July 2012
CONSTRUCTION CONTRACT
limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable
Code Requirements.
SECTION 5 PROJECT TEAM.
In addition to Contractor, City has retained, or may retain, consultants and contractors to provide
professional and technical consultation for the design and construction of the Project. The Project requires
that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of
the Project Team and other contractors retained by City to construct other portions of the Project.
SECTION 6 TIME OF COMPLETION.
6.1 Time Is of Essence.
Time is of the essence with respect to all time limits set forth in the Contract Documents.
6.2 Commencement of Work.
Contractor shall commence the Work on the date specified in City’s Notice to Proceed.
6.3 Contract Time.
Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be
completed
Within One Hundred Fifty calendar days (150) after the commencement date specified in
City’s Notice to Proceed.
6.4 Liquidated Damages.
6.4.1 Entitlement.
City and Contractor acknowledge and agree that if Contractor fails to fully and
satisfactorily complete the Work within the Contract Time, City will suffer, as a result of
Contractor’s failure, substantial damages which are both extremely difficult and
impracticable to ascertain. Such damages may include, but are not limited to:
(i) Loss of public confidence in City and its contractors and consultants.
(ii) Loss of public use of public facilities.
(iii) Extended disruption to public.
Invitation for Bid (IFB) Package 10 Rev. July 2012
CONSTRUCTION CONTRACT
6.4.2 Daily Amount.
City and Contractor have reasonably endeavored, but failed, to ascertain the actual
damage that City will incur if Contractor fails to achieve Substantial Completion of the
entire Work within the Contract Time. Therefore, the parties agree that in addition to all
other damages to which City may be entitled other than delay damages, in the event
Contractor shall fail to achieve Substantial Completion of the entire Work within the
Contract Time, Contractor shall pay City as liquidated damages the amount of $500.00
per day for each Day occurring after the expiration of the Contract Time until Contractor
achieves Substantial Completion of the entire Work. The liquidated damages amount is
not a penalty but considered to be a reasonable estimate of the amount of damages City
will suffer by delay in completion of the Work.
6.4.3 Exclusive Remedy.
City and Contractor acknowledge and agree that this liquidated damages provision shall
be City’s only remedy for delay damages caused by Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.4.4 Other Remedies.
City is entitled to any and all available legal and equitable remedies City may have where
City’s Losses are caused by any reason other than Contractor’s failure to achieve
Substantial Completion of the entire Work within the Contract Time.
6.5 Adjustments to Contract Time.
The Contract Time may only be adjusted for time extensions approved by City and agreed to by
Change Order executed by City and Contractor in accordance with the requirements of the
Contract Documents.
SECTION 7 COMPENSATION TO CONTRACTOR.
7.1 Contract Sum.
Contractor shall be compensated for satisfactory completion of the Work in compliance with the
Contract Documents the Contract Sum of Two Hundred Forty Nine Thousand Three Hundred Fifty
Four Dollars ($249,354.00).
7.2 Full Compensation.
The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor
and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover
all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen
difficulties or obstructions which may arise or be encountered in performance of the Work until
its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to
suspension or discontinuance of the Work. The Contract Sum may only be adjusted for Change
Orders issued, executed and satisfactorily performed in accordance with the requirements of the
Contract Documents.
7.3 Compensation for Extra or Deleted Work.
The Contract Sum shall be adjusted (either by addition or credit) for Changes in the Work involving
Extra Work or Deleted Work based on one or more of the following methods to be selected by
City:
1. Unit prices stated in the Contract Documents or agreed upon by City and Contractor,
which unit prices shall be deemed to include Contractor Markup and
Subcontractor/Sub-subcontractor Markups permitted by this Section.
Invitation for Bid (IFB) Package 11 Rev. July 2012
CONSTRUCTION CONTRACT
2. A lump sum agreed upon by City and Contractor, based on the estimated Allowable
Costs and Contractor Markup and Subcontractor Markup computed in accordance
with this Section.
3. Contractor’s Allowable Costs, plus Contractor Markup and Subcontractor Markups
applicable to such Extra Work computed in accordance with this Section.
Contractor Markup and Subcontractor/Sub-subcontractor Markups set forth herein are the full
amount of compensation to be added for Extra Work or to be subtracted for Deleted Work that is
attributable to overhead (direct and indirect) and profit of Contractor and of its Subcontractors
and Sub-subcontractors, of every Tier. When using this payment methodology, Contractor
Markup and Subcontractor/Sub-subcontractor Markups, which shall not be compounded, shall be
computed as follows:
7.3.1 Markup Self-Performed Work.
10% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by Contractor with its own forces.
7.3.2 Markup for Work Performed by Subcontractors.
15% of the Allowable Costs for that portion of the Extra Work or Deleted Work to be
performed by a first Tier Subcontractor.
SECTION 8 STANDARD OF CARE.
Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised
personnel. All services performed in connection with this Construction Contract shall be performed in a
manner consistent with the standard of care under California law applicable to those who specialize in
providing such services for projects of the type, scope and complexity of the Project.
SECTION 9 INDEMNIFICATION.
9.1 Hold Harmless.
To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its
City Council, boards and commissions, officers, agents, employees, representatives and volunteers
(hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to City,
from and against any and all Losses arising directly or indirectly from, or in any manner relating to
any of, the following:
(i) Performance or nonperformance of the Work by Contractor or its Subcontractors or Sub-
subcontractors, of any tier;
(ii) Performance or nonperformance by Contractor or its Subcontractors or Sub-
subcontractors of any tier, of any of the obligations under the Contract Documents;
(iii) The construction activities of Contractor or its Subcontractors or Sub-subcontractors, of
any tier, either on the Site or on other properties;
(iv) The payment or nonpayment by Contractor to any of its employees, Subcontractors or
Sub-subcontractors of any tier, for Work performed on or off the Site for the Project; and
(v) Any personal injury, property damage or economic loss to third persons associated with
the performance or nonperformance by Contractor or its Subcontractors or Sub-
subcontractors of any tier, of the Work.
However, nothing herein shall obligate Contractor to indemnify any Indemnitee for Losses
resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor
shall pay City for any costs City incurs to enforce this provision. Nothing in the Contract
Invitation for Bid (IFB) Package 12 Rev. July 2012
CONSTRUCTION CONTRACT
Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor
against City or any other Indemnitee.
9.2 Survival.
The provisions of Section 9 shall survive the termination of this Construction Contract.
SECTION 10 NONDISCRIMINATION.
As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of
this Agreement, it shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status,
familial status, weight or height of such person. Contractor acknowledges that it has read and understands
the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and will comply with all requirements of Section
2.30.510 pertaining to nondiscrimination in employment.
SECTION 11 INSURANCE AND BONDS.
On or before the Execution Date, Contractor shall provide City with evidence that it has obtained insurance
and Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.
Failure to do so shall be deemed a material breach of this Construction Contract.
SECTION 12 PROHIBITION AGAINST TRANSFERS.
City is entering into this Construction Contract based upon the stated experience and qualifications of the
Contractor and its subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign,
hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by
operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or
transfer without said consent shall be null and void.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of
Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor
is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of
Contractor, shall be construed as an assignment of this Construction Contract. Control means more than
fifty percent (50%) of the voting power of the corporation or other entity.
SECTION 13 NOTICES.
13.1 Method of Notice.
All notices, demands, requests or approvals to be given under this Construction Contract shall be given in
writing and shall be deemed served on the earlier of the following:
(i) On the date delivered if delivered personally;
(ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and
addressed as hereinafter provided;
(iii) On the date sent if sent by facsimile transmission;
(iv) On the date sent if delivered by electronic mail; or
(v) On the date it is accepted or rejected if sent by certified mail.
13.2 Notice Recipients.
Invitation for Bid (IFB) Package 13 Rev. July 2012
CONSTRUCTION CONTRACT
All notices, demands or requests (including, without limitation, Claims) from Contractor to City
shall include the Project name and the number of this Construction Contract and shall be
addressed to City at:
To City: City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to: City of Palo Alto
Transportation Division
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Shahla Yasdy
In addition, copies of all Claims by Contractor under this Construction Contract shall be provided
to the following:
Palo Alto City Attorney’s Office
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, California 94303
All Claims shall be delivered personally or sent by certified mail.
All notices, demands, requests or approvals from City to Contractor shall be addressed to:
St. Francis Electric, Inc.
975 Carden Street
San Leandro, CA 94577
Attn: Mr. Andrew Amador, Vice President
13.3 Change of Address.
In the event of any change of address, the moving party shall notify the other party of the change
of address in writing. Each party may, by written notice only, add, delete or replace any
individuals to whom and addresses to which notice shall be provided.
SECTION 14 DISPUTE RESOLUTION.
14.1 Resolution of Contract Disputes.
Contract Disputes shall be resolved by the parties in accordance with the provisions of this Section
14, in lieu of any and all rights under the law that either party have its rights adjudged by a trial
court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution Process set
forth in this Section 14, which shall be the exclusive recourse of Contractor and City for such
Contract Disputes.
Invitation for Bid (IFB) Package 14 Rev. July 2012
CONSTRUCTION CONTRACT
14.2 Resolution of Other Disputes.
14.2.1 Non-Contract Disputes.
Contract Disputes shall not include any of the following:
(i) Penalties or forfeitures prescribed by statute or regulation imposed by a
governmental agency;
(ii) Third party tort claims for personal injury, property damage or death relating to
any Work performed by Contractor or its Subcontractors or Sub-subcontractors
of any tier;
(iii) False claims liability under California Government Code Section 12650, et. seq.;
(iv) Defects in the Work first discovered by City after Final Payment by City to
Contractor;
(v) Stop notices; or
(vi) The right of City to specific performance or injunctive relief to compel
performance of any provision of the Contract Documents.
14.2.2 Litigation, City Election.
Matters that do not constitute Contract Disputes shall be resolved by way of an action
filed in the Superior Court of the State of California, County of Santa Clara, and shall not
be subject to the Contract Dispute Resolution Process. However, the City reserves the
right, in its sole and absolute discretion, to treat such disputes as Contract Disputes.
Upon written notice by City of its election as provided in the preceding sentence, such
dispute shall be submitted by the parties and finally decided pursuant to the Contract
Dispute Resolution Process in the manner as required for Contract Disputes, including,
without limitation, City’s right under Paragraph 14.4.2 to defer resolution and final
determination until after Final Completion of the Work.
14.3 Submission of Contract Dispute.
14.3.1 By Contractor.
Contractors may commence the Contract Dispute Resolution Process upon City's written
response denying all or part of a Claim pursuant to Paragraph 4.2.9 or 4.2.10 of the
General Conditions. Contractor shall submit a written Statement of Contract Dispute (as
set forth below) to City within seven (7) Days after City rejects all or a portion of
Contractor's Claim. Failure by Contractor to submit its Statement of Contract Dispute in a
timely manner shall result in City’s decision by City on the Claim becoming final and
binding. Contractor’s Statement of Contract Dispute shall be signed under penalty of
perjury and shall state with specificity the events or circumstances giving rise to the
Contract Dispute, the dates of their occurrence and the asserted effect on the Contract
Sum and the Contract Time. The Statement of Contract Dispute shall include adequate
supporting data to substantiate the disputed Claim. Adequate supporting data for a
Contract Dispute relating to an adjustment of the Contract Time shall include both of the
following:
(i) All of the scheduling data required to be submitted by Contractor under the
Contract Documents to obtain extensions of time and adjustments to the
Contract Time and
(ii) A detailed, event-by-event description of the impact of each event on
completion of Work. Adequate data to support a Statement of Contract Dispute
involving an adjustment of the Contract Sum must include both of the following:
(a) A detailed cost breakdown and
(b) Supporting cost data in such form and including such information and
other supporting data as required under the Contract Documents for
submission of Change Order Requests and Claims.
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CONSTRUCTION CONTRACT
14.3.2 By City.
City's right to commence the Contract Dispute Resolution Process shall arise at any time
following City's actual discovery of the circumstances giving rise to the Contract Dispute.
City asserts Contract Disputes in response to a Contract Dispute asserted by Contractor.
A Statement of Contract Dispute submitted by City shall state the events or
circumstances giving rise to the Contract Dispute, the dates of their occurrence and the
damages or other relief claimed by City as a result of such events.
14.4 Contract Dispute Resolution Process.
The parties shall utilize each of the following steps in the Contract Dispute Resolution
Process in the sequence they appear below. Each party shall participate fully and in good
faith in each step in the Contract Dispute Resolution Process, and good faith effort shall
be a condition precedent to the right of each party to proceed to the next step in the
process.
14.4.1 Direct Negotiations.
Designated representatives of City and Contractor shall meet as soon as possible (but not
later than ten (10) Days after receipt of the Statement of Contract Dispute) in a good
faith effort to negotiate a resolution to the Contract Dispute. Each party shall be
represented in such negotiations by an authorized representative with full knowledge of
the details of the Claims or defenses being asserted by such party in the negotiations,
and with full authority to resolve such Contract Dispute then and there, subject only to
City’s obligation to obtain administrative and/or City Council approval of any agreed
settlement or resolution. If the Contract Dispute involves the assertion of a right or claim
by a Subcontractor or Sub-subcontractor, of any tier, against Contractor that is in turn
being asserted by Contractor against City (“Pass-Through Claim”), then the Subcontractor
or Sub-Subcontractor shall also have a representative attend the negotiations, with the
same authority and knowledge as described above. Upon completion of the meeting, if
the Contract Dispute is not resolved, the parties may either continue the negotiations or
any party may declare negotiations ended. All discussions that occur during such
negotiations and all documents prepared solely for the purpose of such negotiations shall
be confidential and privileged pursuant to California Evidence Code Sections 1119 and
1152.
14.4.2 Deferral of Contract Disputes.
Following the completion of the negotiations required by Paragraph 14.4.1, all
unresolved Contract Disputes shall be deferred pending Final Completion of the Project,
subject to City’s right, in its sole and absolute discretion, to require that the Contract
Dispute Resolution Process proceed prior to Final Completion. All Contract Disputes that
have been deferred until Final Completion shall be consolidated within a reasonable time
after Final Completion and thereafter pursued to resolution pursuant to this Contract
Dispute Resolution Process. The parties can continue informal negotiations of Contract
Disputes; provided, however, that such informal negotiations shall not be alter the
provisions of the Agreement deferring final determination and resolution of unresolved
Contract Disputes until after Final Completion.
14.4.3 Mediation.
If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph
14.4.1, the parties shall submit the Contract Dispute to non-binding mediation before a
mutually acceptable third party mediator.
Invitation for Bid (IFB) Package 16 Rev. July 2012
CONSTRUCTION CONTRACT
.1 Qualifications of Mediator. The parties shall endeavor to select a mediator who
is a retired judge or an attorney with at least five (5) years of experience in
public works construction contract law and in mediating public works
construction disputes. In addition, the mediator shall have at least twenty (20)
hours of formal training in mediation skills.
.2 Submission to Mediation and Selection of Mediator. The party initiating
mediation of a Contract Dispute shall provide written notice to the other party
of its decision to mediate. In the event the parties are unable to agree upon a
mediator within fifteen (15) Days after the receipt of such written notice, then
the parties shall submit the matter to the American Arbitration Association
(AAA) at its San Francisco Regional Office for selection of a mediator in
accordance with the AAA Construction Industry Mediation Rules.
.3 Mediation Process. The location of the mediation shall be at the offices of City.
The costs of mediation shall be shared equally by both parties. The mediator
shall provide an independent assessment on the merits of the Contract Dispute
and recommendations for resolution. All discussions that occur during the
mediation and all documents prepared solely for the purpose of the mediation
shall be confidential and privileged pursuant to California Evidence Code
Sections 1119 and 1152.
14.4.4 Binding Arbitration.
If the Contract Dispute is not resolved by mediation, then any party may submit the
Contract Dispute for final and binding arbitration pursuant to the provisions of California
Public Contract Code Sections 10240, et seq. The award of the arbitrator therein shall be
final and may be entered as a judgment by any court of competent jurisdiction. Such
arbitration shall be conducted in accordance with the following:
.1 Arbitration Initiation. The arbitration shall be initiated by filing a complaint in
arbitration in accordance with the regulations promulgated pursuant to
California Public Contract Code Section 10240.5.
.2 Qualifications of the Arbitrator. The arbitrator shall be approved by all parties.
The arbitrator shall be a retired judge or an attorney with at least five (5) years
of experience in public works construction contract law and in arbitrating public
works construction disputes. In addition, the arbitrator shall have at least
twenty (20) hours of formal training in arbitration skills. In the event the parties
cannot agree upon an arbitrator, the provisions of California Public Contract
Code Section 10240.3 shall be followed in selecting an arbitrator possessing the
qualifications required herein.
.3 Hearing Days and Location. Arbitration hearings shall be held at the offices of
City and shall, except for good cause shown to and determined by the arbitrator,
be conducted on consecutive business days, without interruption or
continuance.
.4 Hearing Delays. Arbitration hearings shall not be delayed except upon good
cause shown.
.5 Recording Hearings. All hearings to receive evidence shall be recorded by a
certified stenographic reporter, with the costs thereof borne equally by City and
Contractor and allocated by the arbitrator in the final award.
Invitation for Bid (IFB) Package 17 Rev. July 2012
CONSTRUCTION CONTRACT
.6 Limitation of Depositions. The parties may conduct discovery in accordance
with the provisions of section 10240.11 of the Public Contract Code; provided,
however, that depositions shall be limited to both of the following:
(i) Ten (10) percipient witnesses for each party and 5 expert witnesses per
party.
Upon a showing of good cause, the arbitrator may increase the number of
permitted depositions. An individual who is both percipient and expert shall, for
purposes of applying the foregoing numerical limitation only, be deemed an
expert. Expert reports shall be exchanged prior to receipt of evidence, in
accordance with the direction of the arbitrator, and expert reports (including
initial and rebuttal reports) not so submitted shall not be admissible as
evidence.
.7 Authority of the Arbitrator. The arbitrator shall have the authority to hear
dispositive motions and issue interim orders and interim or executory awards.
.8 Waiver of Jury Trial. Contractor and City each voluntarily waives its right to a
jury trial with respect to any Contract Dispute that is subject to binding
arbitration in accordance with the provisions of this Paragraph 14.4.4.
Contractor shall include this provision in its contracts with its Subcontractors
who provide any portion of the Work.
14.5 Non-Waiver.
Participation in the Contract Dispute Resolution Process shall not waive, release or compromise
any defense of City, including, without limitation, any defense based on the assertion that the
rights or Claims of Contractor that are the basis of a Contract Dispute were previously waived by
Contractor due to Contractor’s failure to comply with the Contract Documents, including, without
limitation, Contractor’s failure to comply with any time periods for providing notice of requests
for adjustments of the Contract Sum or Contract Time or for submission of Claims or supporting
documentation of Claims.
SECTION 15 DEFAULT.
15.1 Notice of Default.
In the event that City determines, in its sole discretion, that Contractor has failed or refused to
perform any of the obligations set forth in the Contract Documents, or is in breach of any
provision of the Contract Documents, City may give written notice of default to Contractor in the
manner specified for the giving of notices in the Construction Contract.
15.2 Opportunity to Cure Default.
Except for emergencies, Contractor shall cure any default in performance of its obligations under
the Contract Documents within two (2) Days (or such shorter time as City may reasonably require)
after receipt of written notice. However, if the breach cannot be reasonably cured within such
time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as
City may reasonably require) and will diligently and continuously prosecute such cure to
completion within a reasonable time, which shall in no event be later than ten (10) Days after
receipt of such written notice.
Invitation for Bid (IFB) Package 18 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 16 CITY'S RIGHTS AND REMEDIES.
16.1 Remedies Upon Default.
If Contractor fails to cure any default of this Construction Contract within the time period set forth
above in Section 15, then City may pursue any remedies available under law or equity, including,
without limitation, the following:
16.1.1 Delete Certain Services.
City may, without terminating the Construction Contract, delete certain portions of the Work,
reserving to itself all rights to Losses related thereto.
16.1.2 Perform and Withhold.
City may, without terminating the Construction Contract, engage others to perform the Work or
portion of the Work that has not been adequately performed by Contractor and withhold the cost
thereof to City from future payments to Contractor, reserving to itself all rights to Losses related
thereto.
16.1.3 Suspend The Construction Contract.
City may, without terminating the Construction Contract and reserving to itself all rights to Losses
related thereto, suspend all or any portion of this Construction Contract for as long a period of
time as City determines, in its sole discretion, appropriate, in which event City shall have no
obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor
for damages if City directs Contractor to resume Work.
16.1.4 Terminate the Construction Contract for Default.
City shall have the right to terminate this Construction Contract, in whole or in part, upon the
failure of Contractor to promptly cure any default as required by Section 15. City’s election to
terminate the Construction Contract for default shall be communicated by giving Contractor a
written notice of termination in the manner specified for the giving of notices in the Construction
Contract. Any notice of termination given to Contractor by City shall be effective immediately,
unless otherwise provided therein.
16.1.5 Invoke the Performance Bond.
City may, with or without terminating the Construction Contract and reserving to itself all rights to
Losses related thereto, exercise its rights under the Performance Bond.
16.1.6 Additional Provisions.
All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in
addition to those rights and remedies available in law or in equity. Designation in the Contract
Documents of certain breaches as material shall not waive the City’s authority to designate other
breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the
City from terminating the Agreement for breaches that are not material. City’s determination of
whether there has been noncompliance with the Construction Contract so as to warrant exercise
by City of its rights and remedies for default under the Construction Contract, shall be binding on
all parties. No termination or action taken by City after such termination shall prejudice any other
rights or remedies of City provided by law or equity or by the Contract Documents upon such
termination; and City may proceed against Contractor to recover all liquidated damages and
Losses suffered by City.
Invitation for Bid (IFB) Package 19 Rev. July 2012
CONSTRUCTION CONTRACT
16.2 Delays by Sureties.
Without limiting to any of City’s other rights or remedies, City has the right to suspend the
performance of the Work by Contractor’s sureties in the event of any of the following:
(i) The sureties’ failure to begin Work within a reasonable time in such manner as to insure
full compliance with the Construction Contract within the Contract Time;
(ii) The sureties’ abandonment of the Work;
(iii) If at any time City is of the opinion the sureties’ Work is unnecessarily or unreasonably
delaying the Work;
(iv) The sureties’ violation of any terms of the Construction Contract;
(v) The sureties’ failure to perform according to the Contract Documents; or
(vi) The sureties’ failure to follow City’s instructions for completion of the Work within the
Contract Time.
16.3 Damages to City.
16.3.1 For Contractor's Default.
City will be entitled to recovery of all Losses under law or equity in the event of
Contractor’s default under the Contract Documents.
16.3.2 Compensation for Losses.
In the event that City's Losses arise from Contractor’s default under the Contract Documents, City
shall be entitled to withhold monies otherwise payable to Contractor until Final Completion of the
Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be
deducted from the amounts withheld. Should the amount withheld exceed the amount deducted,
the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the
Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the
difference and shall promptly remit same to City.
16.4 Suspension by City for Convenience.
City may, at any time and from time to time, without cause, order Contractor, in writing, to
suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an
aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as
a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s
expense, comply with the order and take all reasonable steps to minimize costs allocable to the
Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if
any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered
by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume
and continue with the Work. A Change Order will be issued to cover any adjustments of the
Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order
shall not be the exclusive method for City to stop the Work.
16.5 Termination Without Cause.
City may, at its sole discretion and without cause, terminate this Construction Contract in part or
in whole by giving thirty (30) Days written notice to Contractor. The compensation allowed under
this Paragraph 16.5 shall be the Contractor’s sole and exclusive compensation for such
termination and Contractor waives any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect or incidental damages of any kind resulting from termination without cause.
16.5.1 Compensation.
Following such termination and within forty-five (45) Days after receipt of a billing from
Contractor seeking payment of sums authorized by this Paragraph 16.5, City shall pay the
following to Contractor as Contractor’s sole compensation for performance of the Work :
Invitation for Bid (IFB) Package 20 Rev. July 2012
CONSTRUCTION CONTRACT
.1 For Work Performed. The amount of the Contract Sum allocable to the portion
of the Work properly performed by Contractor as of the date of termination,
less sums previously paid to Contractor.
.2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors and
Sub-subcontractors for:
(i) Demobilizing and
(ii) Administering the close-out of its participation in the Project (including,
without limitation, all billing and accounting functions, not including
attorney or expert fees) for a period of no longer than thirty (30) Days
after receipt of the notice of termination.
.3 For Fabricated Items. Previously unpaid cost of any items delivered to the
Project Site which were fabricated for subsequent incorporation in the Work.
16.5.2 Subcontractors.
Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts
permitting termination for convenience by Contractor on terms that are consistent with this
Construction Contract and that afford no greater rights of recovery against Contractor than are
afforded to Contractor against City under this Section.
16.6 Contractor’s Duties Upon Termination.
Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the
notice directs otherwise, do the following:
(i) Immediately discontinue the Work to the extent specified in the notice;
(ii) Place no further orders or subcontracts for materials, equipment, services or facilities,
except as may be necessary for completion of such portion of the Work that is not
discontinued;
(iii) Provide to City a description, in writing no later than fifteen (15) days after receipt of the
notice of termination, of all subcontracts, purchase orders and contracts that are
outstanding, including, without limitation, the terms of the original price, any changes,
payments, balance owing, the status of the portion of the Work covered and a copy of
the subcontract, purchase order or contract and any written changes, amendments or
modifications thereto, together with such other information as City may determine
necessary in order to decide whether to accept assignment of or request Contractor to
terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions
thereof, that City elects to accept by assignment and cancel, on the most favorable terms
reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof,
that City does not elect to accept by assignment; and
(v) Thereafter do only such Work as may be necessary to preserve and protect Work already
in progress and to protect materials, plants, and equipment on the Project Site or in
transit thereto.
SECTION 17 CONTRACTOR'S RIGHTS AND REMEDIES.
17.1 Contractor’s Remedies.
Contractor may terminate this Construction Contract only upon the occurrence of one of the
following:
Invitation for Bid (IFB) Package 21 Rev. July 2012
CONSTRUCTION CONTRACT
17.1.1 For Work Stoppage.
The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any
Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of
an order of a court or other public authority other than City having jurisdiction or due to an act of
government, such as a declaration of a national emergency making material unavailable. This
provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension
notice issued either for cause or for convenience.
17.1.2 For City's Non-Payment.
If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of
notice from Contractor, Contractor may terminate the Construction Contract (30) days following a
second notice to City of Contractor’s intention to terminate the Construction Contract.
17.2 Damages to Contractor.
In the event of termination for cause by Contractor, City shall pay Contractor the sums provided
for in Paragraph 16.5.1 above. Contractor agrees to accept such sums as its sole and exclusive
compensation and agrees to waive any claim for other compensation or Losses, including, but not
limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential,
direct, indirect and incidental damages, of any kind.
SECTION 18 ACCOUNTING RECORDS.
18.1 Financial Management and City Access.
Contractor shall keep full and detailed accounts and exercise such controls as may be necessary
for proper financial management under this Construction Contract in accordance with generally
accepted accounting principles and practices. City and City's accountants during normal business
hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports,
ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase
orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these
documents for a period of three (3) years after the later of (i) final payment or (ii) final resolution
of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by
law.
Invitation for Bid (IFB) Package 22 Rev. July 2012
CONSTRUCTION CONTRACT
18.2 Compliance with City Requests.
Contractor's compliance with any request by City pursuant to this Section 18 shall be a condition
precedent to filing or maintenance of any legal action or proceeding by Contractor against City
and to Contractor's right to receive further payments under the Contract Documents. City many
enforce Contractor’s obligation to provide access to City of its business and other records referred
to in Section 18.1 for inspection or copying by issuance of a writ or a provisional or permanent
mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such
court, without the necessity of oral testimony.
SECTION 19 INDEPENDENT PARTIES.
Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’
of the other party. City, its officers or employees shall have no control over the conduct of Contractor or
its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.
SECTION 20 NUISANCE.
Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in
connection in the performance of services under this Construction Contract.
SECTION 21 PERMITS AND LICENSES.
Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall
provide, procure and pay for all licenses, permits, and fees, required by the City or other government
jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses
for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation
shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set
forth in the licenses or permits issued by other agencies.
SECTION 22 WAIVER.
A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be
deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition
contained herein, whether of the same or a different character.
SECTION 23 GOVERNING LAW.
This Construction Contract shall be construed in accordance with and governed by the laws of the State of
California.
SECTION 24 COMPLETE AGREEMENT.
This Agreement represents the entire and integrated agreement between the parties and supersedes all
prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended
only by a written instrument, which is signed by the parties.
SECTION 25 SURVIVAL OF CONTRACT.
The provisions of the Construction Contract which by their nature survive termination of the Construction
Contract or Final Completion, including, without limitation, all warranties, indemnities, payment
obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect
after Final Completion or any termination of the Construction Contract.
Invitation for Bid (IFB) Package 23 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 26 PREVAILING WAGES.
This Project is not subject to prevailing wages. The Contractor is not required to pay prevailing wages in
the performance and implementation of the Project, because the City, pursuant to its authority as a
chartered city, has adopted Resolution No. 5981 exempting the City from prevailing wages. The City
invokes the exemption from the state prevailing wage requirement for this Project and declares that the
Project is funded one hundred percent (100%) by the City of Palo Alto.
Or
The Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the
California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.
Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has
obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work
in this locality for each craft, classification, or type of worker needed to execute the contract for this
Project from the Director of the Department of Industrial Relations. Copies of these rates may be obtained
at cost at the Purchasing office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage
rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum.
Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor
Code.
SECTION 27 NON APPROPRIATION.
This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto
Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time
within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds
for this Construction Contract are no longer available. This section shall take precedence in the event of a
conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 28 AUTHORITY.
The individuals executing this Agreement represent and warrant that they have the legal capacity and
authority to do so on behalf of their respective legal entities.
SECTION 29 ATTORNEY FEES.
Each Party shall bear its own costs, including attorney’s fees through the completion of mediation. If the
claim or dispute is not resolved through mediation and in any dispute described in Paragraph 14.2,
the prevailing party in any action brought to enforce the provision of this Agreement may recover its
reasonable costs and attorney’s fees expended in connection with that action. The prevailing party shall be
entitled to recover an amount equal to the fair market value of legal services provided by attorneys
employed by it as well as any attorney’s’ fees paid to third parties.
SECTION 30 COUNTERPARTS
This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties,
constitute a single binding agreement.
Invitation for Bid (IFB) Package 24 Rev. July 2012
CONSTRUCTION CONTRACT
SECTION 31 SEVERABILITY.
In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not be affected.
IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the
date and year first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
ST. FRANCIS ELECTRIC, INC.
City of Palo Alto (ID # 5472)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: BAO for Lot R Valet Parking
Title: Approval of Continuation of Valet-Assist Services at Lot R for the
Remainder of FY2015 and Adoption of a Budget Amendment Ordinance in
the University Avenue Parking Permit Fund in the Amount of $30,000
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council approve the continuation of the Parking Valet Service program
at Lot R (Alma/High Street) garage for the balance of Fiscal Year 2015 and adopt a related
Budget Amendment Ordinance in the University Avenue Parking Permit Fund in the amount of
$30,000.
Executive Summary
Since early 2014, Staff has been making significant efforts to address the City’s parking and
traffic challenges, especially around the Downtown Commercial core. One of the components
of the overall strategy is to improve the utilization of the City’s existing parking garages and
lots. In February of 2014, City Council approved a three year contract with SP Plus (Contract
C14152025) and established a one-year trial valet-assist program in the Alma/High Street
garage which could facilitate an increase in the number of cars parked in the permit spaces of
the garages from 134 to 179 (an increase of 45). The Lot R program has been successful in
parking between 20 and 30 people per day on most days, allowing City staff to sell more
permits for the garage than could otherwise be accommodated.
Background
Recognizing that maximizing garage utilization was a critical component of the overall parking
strategy for Downtown, Council approved a three-year contract with SP Plus on March 3, 2014,
and approved funds to move forward with the program at Lot R for a trial period. This contract
expires on March 2, 2017, and includes pricing for all four City-owned Downtown garages (Lot
R, CC Garage, Lot S and Lot CW).
Additional parking supply strategies in various stages of evaluation and implementation by Staff
City of Palo Alto Page 2
are listed in the table below:
Fig. 1 Parking Supply Strategies
New Parking Garages Staff evaluated the potential for public/private
collaboration to construct additional parking
garages in the Downtown and California Avenue
business districts. Council directed staff to return
with a scope of work for an RFP for a publicly
funded garage on Lot D early in 2015.
Satellite Remote Parking Council authorized consideration of the potential
for an additional 132 parking spaces along the
segment of Embarcadero Road east of Highway
101 in August of 2014. A consultant is working
with staff on a preliminary design and analysis of
potential traffic impacts.
Valet-Assist Programs An update on the Lot R Valet-Assist program trial is
provided in this staff report.
In addition to the parking supply strategies, City staff are also working on a number of parking
management strategies including parking guidance systems for lots and garages and new
parking wayfinding signage to assist visitors and customers in locating available parking.
Maximizing the number of vehicles which can be parked at existing facilities is critical, especially
as the Downtown Residential Preferential Parking (RPP) program will be implemented in early
2015. The RPP program will restrict non-resident parking in neighborhoods and is expected to
consequently increase parking demand in Downtown garages. Additionally, construction of a
new garage on Lot D may take several years, so in the interim existing parking assets should be
utilized to their fullest potential. In light of this, Staff recommends continuing the trial Lot R
valet-assist program for the remainder of FY2015. Staff also plans to return to Council as part of
the 2016 budget process with a recommendation to expand the scope of the SP Plus contract to
include implementation of valet-assist programs at the Cowper Webster garage, the Civic
Center garage and the Bryant/Lytton garage, concurrent with RPP implementation.
Discussion
The Lot R valet program is staffed by two valet attendant staffers, stationed at the third floor of
the garage beginning at 9:00am on weekdays. When the permit spaces of the garage are close
to full, the attendants direct permit parkers to park in the drive aisles of the garage in a manner
which still allows vehicles to enter and exit. The motorists provide their key to the attendant,
and the attendant may move the vehicle during the day to accommodate other vehicles. The
motorist receives their key back from the attendant when they return to the garage.
The program has allowed permit sales in the garage to increase from 241 at the beginning of
2014 to 330 at the writing of this report. Additionally, occupancy studies conducted by city staff
City of Palo Alto Page 3
between March and November of 2014 show that Lot R has consistently been more full than all
of the other garages, ostensibly due to the valet-assist program. Continuing the program will
assist the City in ensuring that Lot R continues to achieve high parking occupancy levels and
that the current level of permit sales for the garage can be maintained.
Resource Impact
The Fiscal Year 2015 Adopted Operating Budget for the University Avenue Parking Permit Fund
included a budget of $90,000 for valet operations during the trial period only. Staff is
requesting a BAO in the amount of $30,000 to continue the Lot R trial program through the end
of FY2015. Staff plans to return to Council with a recommendation to extend the Lot R program
for FY2016, and potentially to expand the program to other garages. It should also be noted
that the implementation of the Lot R program has allowed the sale of 89 additional permits at
Lot R, which results in additional revenues for the Parking Assessment District of $41,474. While
this does not offset the total cost of the SP Plus yearly fee for Lot R services which is
approximately $104,000, the loaded cost of constructing an additional 89 parking spaces (at
approximately $60,000 each) exceeds 5 million dollars.
Environmental Review
The proposed action would allow for continuation of an existing program and is exempt from
review pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15301
(Existing Facilities).
Attachments:
Attachment A: Budget Amendment Ordinance xxxx for Parking Valet Program (DOCX)
Attachment A
ORDINANCE NO. xxxx
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR FISCAL YEAR 2015 TO
PROVIDE ADDITIONAL APPROPRIATION OF $30,000 IN
THE UNIVERSITY AVENUE PARKING PERMIT FUND FOR THE
CONTINUING PROVISION OF A PARKING ATTENDANT
PROGRAM FOR FISCAL YEAR 2015.
The Council of the City of Palo Alto does ordain as
follows:
SECTION 1. The Council of the City of Palo Alto finds
and determines as follows:
A. Pursuant to the provisions of Section 12 of
Article III of the Charter of the City of Palo Alto, the
Council on June 16, 2014 did adopt a budget for Fiscal Year
2015; and
B. At the time the 2015 Adopted Budget was being
considered by the City Council, the Planning and Community
Environment Department was piloting a valet parking program
at Lot R (Alma/High Street) garage as approved by the
Council on February 14, 2014 as part of a series of near
term parking strategies aimed at helping to alleviate
concerns from adjacent residential areas regarding
spillover parking; and
C. After the one-year pilot program, 89 additional
parking permits were sold which resulted in approximately
$42,000 at a cost of $104,000.
SECTION 2. The sum of Thirsty Thousand Dollars is
hereby appropriated for the continuation of the Trial
Parking Attendant Program at Lot R for the remainder of the
fiscal year offset with a corresponding decrease of the
ending fund balance in the University Avenue Parking Permit
Fund.
SECTION 3. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective
upon adoption.
SECTION 4. The Council of the City of Palo Alto
hereby finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental
impact assessment is necessary.
INTRODUCED AND PASSED: Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Senior Assistant City Attorney City Manager
___________________________
Director of Planning, Community,
and Environment
____________________________
Director of Administrative Services
City of Palo Alto (ID # 5478)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Amendment to Metropolitan Group Contract
Title: Approval of an Amendment to Contract C14153012 with Metropolitan
Planning Group for Planning Support Services Needed Due to Unanticipated
Staff Vacancies Adding $98,000 for a Not to Exceed Amount of $150,000
From: City Manager
Lead Department: Planning and Community Environment
Recommended Motion
Staff recommends that Council authorize the City Manager or his designee to amend Contract
C14153012 with Metropolitan Planning Group to increase the contract limit by $98,000 to an
amount not to exceed $150,000.
Recommendation
Authorize the City Manager or his designee to amend Contract C14153012 with Metropolitan
Planning Group to increase the contract limit by $98,000 to an amount not to exceed $150,000.
Executive Summary
The Planning and Community Environment Department (PCE) routinely uses consultants to
secure specific expertise and to help with the fluctuations of the day to day workload. These
contracts are reaching their limits and will be exhausted soon if not amended.
Background
PCE has historically maintained contracts with several consultants to provide various on-call
planning services. In recent years, the department has relied on on-call service providers to
work on special projects requiring particular areas of expertise or to address increases in
workload, particularly as the economy has rebounded and development activity increased.
Discussion
Following a competitive solicitation and selection process, Council approved five on-call
environmental and four on-call planning consulting contracts in February, 2014 (Staff Report
4018). The on-call planning consultation contracts are with: Arnold Mammarella, Architecture
and Consulting; The Planning Center/DCE; Dudek; and, Metropolitan Planning Group.
City of Palo Alto Page 2
On-call planning consultants are used as project managers to manage applications for planning
entitlements or as independent technical consultants. Although the contracts are for a period
of three years, the department took a cautious approach, limiting contract capacity to modest
amounts. This provided the department an opportunity to see which consultant would work
best with current workload needs without overextending the City’s contracts. When consultant
assistance is needed, consultants are chosen from the contracted group based upon their
experience, specific expertise, availability, and cost per activity or project.
Due to unanticipated staff shortages and workload, the department needs additional contract
support immediately. Based on the types of work and the consultant’s experience in these
areas, the Metropolitan Planning Group is most suited to provide the support needed by the
department at this time.
The amount of assistance needed will exceed the contract limit unless this contract is amended.
Staff requests Council’s authorization to amend the contract accordingly.
Resource Impact
Sufficient funding, through the use of salary savings and unencumbered contract dollars, is
available within the Planning and Community Environment department’s FY 2015 budget to
fund the increase to the contract.
Attachments:
Attachment A: Metropolitan Planning Group Contract Amendment 1 (PDF)
1 of 3 Revision April 28, 2014
AMENDMENT NO. 1 TO CONTRACT NO. C14153012
BETWEEN THE CITY OF PALO ALTO AND
METROPOLITAN PLANNING GROUP, INC.
This Amendment No. 1 to Contract No. C14153012 (“Contract”) is entered into
February 23, 2015, by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and METROPOLITAN PLANNING GROUP, INC., a California corporation,
located at 579 Clyde Avenue, Ste. 340, Mountain View, California, 94043, Telephone (650)938-
1111("CONSULTANT").
R E C I T A L S
A. The Contract was entered into between the parties for the provision of
planning and planning review on an on-call basis.
B. City intends to increase compensation from $52,000.00 by $98,000.00 to
$150,000.00 for continuation of services as specified in Exhibit “A” Scope of Services.
C. The parties wish to amend the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 4 is hereby amended to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit “A”, including both payment
for professional services and reimbursable expenses, shall not exceed One Hundred Fifty Thousand
Dollars ($150,000.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
included within the Scope of Services described in Exhibit “A”.
”
SECTION 2. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference:
a.Exhibit “C” entitled “COMPENSATION”.
DocuSign Envelope ID: 01628F53-93A7-482B-9129-B36D2F1AD3D1 ATTACHMENT A
2 of 3 Revision April 28, 2014
SECTION 3. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
METROPOLITAN PLANNING GROUP,
INC.
Attachments:
EXHIBIT "C": COMPENSATION
DocuSign Envelope ID: 01628F53-93A7-482B-9129-B36D2F1AD3D1
PRESIDENT
3 of 3 Revision April 28, 2014
EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed
$150,000.00. CONSULTANT agrees to complete all Services, including reimbursable
expenses, within this amount. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum amount of compensation set forth herein shall
be at no cost to the CITY.
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are included
within the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A. Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel
and meal expenses for City of Palo Alto employees.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup information.
Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY’s
project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a
detailed written proposal including a description of the scope of services, schedule, level of
effort, and CONSULTANT’s proposed maximum compensation, including reimbursable
expenses, for such services based on the rates set forth in Exhibit C-1. The additional
services scope, schedule and maximum compensation shall be negotiated and agreed to in
writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the
services. Payment for additional services is subject to all requirements and restrictions in this
Agreement.
DocuSign Envelope ID: 01628F53-93A7-482B-9129-B36D2F1AD3D1
Certificate of Completion
Envelope Number: 01628F5393A7482B9129B36D2F1AD3D1 Status: Completed
Subject: Please DocuSign this document: C14153012 AMENDMENT NO 1.pdf
Source Envelope:
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Certificate Pages: 4 Initials: 0 Chris Anastole
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250 Hamilton Ave
Palo Alto , CA 94301
chris.anastole@cityofpaloalto.org
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Record Tracking
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1/27/2015 11:29:39 AM PT
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Geoff Bradley
geoff@mplanninggroup.com
PRESIDENT
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Robin Ellner
robin.ellner@cityofpaloalto.org
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Sent: 1/27/2015 11:49:39 AM PT
Electronic Record and Signature Disclosure:
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Electronic Record and Signature Disclosure created on: 10/1/2013 3:33:53 PM
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City of Palo Alto (ID # 5430)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Utilites Enterprise Fund Contract for Power Line Clearing
Title: Approval of Utilities Enterprise Fund Contract with Utility Tree Service,
Inc. (UTS), Not To Exceed $1,209,406 for the First Year and up to $5,251,499
for Four Additional Years for the 2015 Power Line Clearing Project
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1.Approve and authorize the City Manager or his designee to execute,a five-
year General Services Agreement (see Attachment A –Contract), effective
upon the Council’s approval of the award of contract to Utility Tree Services
Inc.(UTS)in an amount not to exceed $6,460,905 for a five-year term,
which includes $6,154,588 for basic services and $306,317 for
contingencies. The annual compensation over the five-year term is,as
follows: $1,209,406 for year one, $1,255,196 for year two, $1,292,904 for
year three, $1,331,671 for year four, and $1,371,728 for year five. Funding
for each additional year is contingent upon the Council’s approval of that
Fiscal Year’s budget.
2.Authorize the City Manager or his designee to negotiate and execute
change orders to the contract with UTS for related, additional but not
unforeseen work, including emergency response crews, special equipment
needed, and debris disposal which may develop during the term of the
contract.
City of Palo Alto Page 2
Background
The City contracts for services involving the clearing of trees and other vegetation
from its overhead electric distribution system,and has found the use of contract
vendors to perform this work is much more efficient than tying up limited City
tree crew resources due to the large size and ongoing nature of the project.
The most recent power line clearing contract was for a 6.5 year term which ended
on December 31, 2014. Due to staff changes and workload issues,staff was
unable to prepare and advertise the Request for Quotes (RFQ) prior to the end of
the contract term. In order to allow sufficient time to allow the Public Works
Department Public Services Division to go out for bid, the City Manager, under
Chapter 2.30.290 of the Municipal Code,extended the contract to February 28,
2015 with no change to the compensation of the contract.
Discussion
Project Description
The work to be performed under the contract includes clearing of trees and other
vegetation from the overhead electric distribution system throughout the City.
Clearing vegetation from power lines is an on-going operation necessary to
ensure the City can provide safe, reliable power to the City’s utility customers.
Clearance is mandated by the California Public Utilities Commission for statewide
public health, safety and welfare reasons, and the City can be subject to fines if
the required clearances are not maintained at all times. All tree work shall
conform to the techniques and standards specified in ANSI A300 (Tree, Shrub and
Other Woody Plant Maintenance –Standard Practices). The City shall monitor for
adherence to these standards.
The term of the contract will extend up to five consecutive years. Staff has found
that a multi-year contract is advantageous to the City,because it allows a
contractor to better amortize major equipment purchases, retain highly qualified
workers, and lower prices are bid for the work. The amount of work in the bid
items is based on work recently completed by the current line clearing contractor.
Tree growth is highly dependent on precipitation; therefore, the actual work
levels and costs may be higher or lower than the estimated quantities in the bid.
The bid establishes the unit and hourly rates for each type of work.
City of Palo Alto Page 3
An RFQ for these services was issued to six arboricultural companies and was
posted on the City’s website on December 8, 2014. Additionally, a Pre-Bid
meeting was held December 18, 2014. The bidding period was 22 days. Bids
were received from four qualified contractors on December 30, 2014, as listed on
the attached bid summary (Attachment B). Bids ranged from a high of $6,748,903
to a low bid of $6,460, 905. The quantities given in the bid schedule were based
on an average amount of work that might be expected in a twelve-month period.
They were given only as a basis for comparison of bids and the City did not
guarantee that the actual amount or proportion of work would correspond
therewith.
Summary of Bid Process
Bid Name/Number 2015 Power Line Clearing Project / RFQ
157041
Proposed Length of Project 5 years
Total Days to Respond to Bid 22
Bids Due December 30, 2014
Pre-Bid Meeting Yes
Number of Company Attendees at Pre-
Bid Meeting
4
Number of Bids Received 4
Bid Price Range From a low of $6,460,905 to a high of
$6,748,903
*Bid summary provided in Attachment B
Staff has reviewed all bids submitted and recommends that the bid of $6,460,905
for a maximum five-year term submitted by Utility Tree Service, Inc.(UTS)should
be accepted,and UTS should be declared the lowest responsible bidder.
Staff confirmed with the Contractor’s State License Board that UTS has an active
license on file. UTS has performed satisfactory work on a similar multi-year
contract established from 2008 to 2014 for power line clearing services.
City of Palo Alto Page 4
Timeline
In the event that the Council approves the Contract, UTS will provide the City with
the requested operation crew(s)’s services within seven days of the issuance of
Notice to Proceed.
Resource Impact
Funds for this project are included in the FY 2015 Utility Department operating
budget. The contractor’s rates for the optional extensions include escalation as
shown in its schedule for each additional year. Continued work under this
contract for FYs 2016 through 2019 will be subject to satisfactory performance by
the contractor and the Council’s approval of annual appropriations for this
contract.
Policy Implications
The approval of this contract is consistent with existing policies.
Environmental Review (If Applicable)
The recommended action is exempt from review under the California
Environmental Quality Act pursuant to CEQA Guidelines Section 15301(h)
[maintenance of existing landscape].
Attachments:
·A -C15157041_UTSI_Power Line Clearing Project_FINAL V2 (PDF)
·B -Bid Summary (PDF)
C15157041 1 Rev. July 11, 2011
POWER LINE CLEARING PROJECT
CITY OF PALO ALTO CONTRACT NO. C15157041
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 1st day of February, 2015, by and between the CITY OF
PALO ALTO, a California Chartered Municipal Corporation (“CITY”), and UTILITY TREE SERVICE,
INC., a Pennsylvania corporation, located at 708 Blair Mill Road, Willow Grove, Pa 19090, Telephone
Number: 215.784.4200 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree
as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (“Services”) described in the Scope of
Services, attached as Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” - Compensation
“D” - Insurance Requirements
“E” - Performance and/or Payment Bond
“F” - Liquidated Damages
CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from February 23, 2015 to February 22, 2020 inclusive, subject to the
provisions of Sections Q and V of the General Terms and Conditions.
4.SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this
Agreement in a reasonably prompt and timely manner based upon the circumstances and direction
communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the
Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as
not to exceed compensation for the full performance of the Services and reimbursable expenses, if any, a
sum calculated in accordance with the fee schedule set forth in Exhibit C, not to exceed a total maximum
compensation amount of Six Million Four Hundred Sixty Thousand Nine Hundred And Five dollars
($6,460,905.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum
compensation set forth above. Any hours worked or services performed by CONTRACTOR for which
payment would result in a total exceeding the maximum amount of compensation set forth above for
performance of the Services shall be at no cost to CITY.
The City has set aside the sum of Three Hundred Six Thousand Three Hundred Seventeen dollars
($306,317.00) for Additional Services. CONTRACTOR shall provide Additional Services only
by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the
CITY’s request, shall submit a detailed written proposal including a description of the scope of
services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation,
including reimbursable expense, for such services. Compensation shall be based on the hourly
rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a
negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any
Additional Services for which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and restrictions in this
Agreement.
Attachment A
Rev. July 11, 2011
C15157041
2
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the same as the original
term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the commencement of each
Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is
applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in
the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-
Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI)
which is published most immediately preceding the commencement of the applicable Additional
Term, which shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall
CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the
rates effective during the immediately preceding term. Any adjustment to CONTRACTOR’s
compensation rates shall be reflected in a written amendment to this Agreement.
7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager
is:Courtney Schumm, Dept.: Public Works, Public Services Division, Telephone: 650-496-6946. Invoices
shall be submitted in arrears for Services performed. 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 forth in sections 1 through 6 above, these
general terms and conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications
to complete the services described in Section 1 of this Agreement, entitled “SERVICES,” and that every
individual charged with the performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or certification 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 shall 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 shall be responsible for payment of all taxes, fees,
contributions or charges applicable to the conduct of CONTRACTOR’s business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with
all applicable federal, state and local laws, ordinances, regulations, and orders.
G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair
in kind, or as the City Manager or designee shall direct, any damage to public or private property that
Rev. July 11, 2011
C15157041
3
occurs in connection with CONTRACTOR’s performance of the Services.
CITY may decline to approve and may withhold payment in whole or in part to such extent as may be
necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY
occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written
documentation in support of such withholding upon CONTRACTOR’s request. When the grounds
described above are removed, payment shall be made for amounts withheld because of them.
H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall
be performed in a professional and workmanlike manner in accordance with generally accepted business
practices and performance standards of the industry and the requirements of this Agreement.
CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR
under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall
conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any
material or service not in compliance with these warranties, including incomplete, inaccurate, or defective
material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for
a period of one year from completion of the Services and shall survive the completion of the Services or
termination of this Agreement.
I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to
determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the
provisions of this Agreement.
J. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests)
developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the
property of CITY without restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written
approval of the City Manager.
K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any
reasonable time during the term of this Agreement and for three (3) years from the date of final payment,
CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to
maintain accurate books and records in accordance with generally accepted accounting principles for at
least three (3) following the terms of this Agreement.
L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall
operate as a waiver on the part of CITY of any of its rights under this Agreement.
M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term
of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by
companies with a Best’s Key rating of A-:VII or higher and which are otherwise acceptable to the City’s
Risk Manager. The City’s Risk Manager must approve deductibles and self-insured retentions. In addition,
all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to
form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an
additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an
endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced
in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to
the City’s Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of
coverage satisfactory to CITY’s Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the
term of this Agreement provide current certificates evidencing the required insurance coverages and
endorsements to the CITY’s Risk Manager. CONTRACTOR shall include all subcontractors as insured
under its policies or shall obtain and provide to CITY separate certificates and endorsements for each
subcontractor that meet all the requirements of this section. The procuring of such required policies of
insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this
Agreement.
N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of
section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its
Council members, officers, employees and agents from and against any and all demands, claims, injuries,
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losses, or liabilities of any nature, including death or injury to any person, property damage or any other
loss and including without limitation all damages, penalties, fines and judgments, associated investigation
and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees,
courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in
connection with the performance of this Agreement. The CONTRACTOR’s obligations under this Section
apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active)
act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by
CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive
the completion of the Services or termination of this Contract.
O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR
certifies that in the performance of this Agreement, it shall not discriminate in the employment of any
person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual
orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR
acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto
Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and
agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware
of the provisions of the Labor Code of the State of California which require every employer to be insured
against liability for workers' compensation or to undertake self-insurance in accordance with the provisions
of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and
during the performance of the Services.
Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10)
days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its
material obligations under this Agreement, in addition to all other remedies provided by law, the City
Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of
such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY
shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If
the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to Contractor’s failure to perform its material obligations under this Agreement.
Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of
studies, sketches, drawings, computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such
materials shall become the property of CITY.
R. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all
covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written
consent of the CITY. No amendments, changes or variations of any kind are authorized without the written
consent of the CITY.
S. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants
that, in the performance of this Contract, it will not employ any person having such an interest.
CONTRACTOR certifies that no City Officer, employee, or authorized representative has any financial
interest in the business of CONTRACTOR and that no person associated with contractor has any interest,
direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR
agrees to advise CITY if any conflict arises.
T. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of
California.
U. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement
between the parties with respect to the services that may be the subject of this Agreement. Any variance in
the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any
conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations,
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5
statements, negotiations and undertakings whether oral or written.
V. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the
end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any
time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and
funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Contract.
W. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS.
CONTRACTOR shall comply with the City’s Environmentally Preferred Purchasing policies which are
available at the City’s Purchasing Department which are incorporated by reference and may be amended
from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and
reducing waste; second, reusing waste and third, recycling or composting waste. In particular, Contractor
shall comply with the following zero waste requirements:
All printed materials provided by Contractor to City generated from a personal computer and
printer including but not limited to, proposals, quotes, invoices, reports, and public education
materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer
content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials
printed by a professional printing company shall be a minimum of 30% or greater post-consumer
material and printed with vegetable based inks.
Goods purchased by Contractor on behalf of the City shall be purchased in accordance with the
City’s Environmental Purchasing Policy including but not limited to Extended Producer
Responsibility requirements for products and packaging. A copy of this policy is on file at the
Purchasing Office.
Reusable/returnable pallets shall be taken back by the Contractor, at no additional cost to the City,
for reuse or recycling. Contractor shall provide documentation from the facility accepting the
pallets to verify that pallets are not being disposed.
X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal
capacity and authority to do so on behalf of their respective legal entities.
Y. CONTRACT TERMS: All unchecked boxes do not apply to this Contract.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement
on the date first above written.
CITY OF PALO ALTO UTILITY TREE SERVICE, INC.
City Manager or Designee Authorized Signature
APPROVED AS TO FORM:
Senior Asst. City Attorney
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SUMMARY OF WORK – Section 01010
PART 1 GENERAL
1.1
A.
GENERAL CONDITIONS
The General Conditions for this Project shall be in accordance with the General
Provisions of the City of Palo Alto Standard Drawings and Specifications. In case
Of conflict, the Project Specifications shall take precedence over the City of Palo Alto Standard Drawings and Specifications.
1.2 WORK COVERED BY CONTRACT
A. The work of this Contract comprises the City of Palo Alto Power Line Clearing Project, Project Number 157041, located in Palo Alto, California.
B. The work of this Contract includes, but is not limited to, line clearing, tree removal and utility pole clearing within the city limits of Palo Alto.
C. The work of this Contract includes, but is not limited to, the work of the following sections:
1. Section 01025 - Measurement and Payment. 2. Section 01040 - Coordination.
3. Section 01200 - Project Meetings. 4. Section 01400 - Quality Control.
5. Section 01510 - Temporary Utilities. 6. Section 01540 - Security. 7. Section 01570 - Traffic Control. 8. Section 02115 - Tree Removal and Non-Exempt Pole Clearing.
9. Section 02970 - Line Clearing.
PART 2 PRODUCTS (NOT USED)
PART 3 EXECUTION (NOT USED)
END OF SECTION
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MEASUREMENT AND PAYMENT – Section 01025
PART 1 GENERAL
1.1 SUMMARY
A. Payment for the various items in the bid schedule, as further specified herein, shall include full compensation to the Contractor for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in completing the various items of Work as shown on the Plans and in the Specifications. Work not specifically set forth as a pay item in the Bidder’s Bid proposal, but called for in
the Contract Specifications or necessary to meet the requirements of this Contract, shall be considered a subsidiary obligation of the Contractor, and all costs in connection therewith shall be included in the bid.
No separate payment will be made for any item that is not specifically set forth in the bid schedule except by change order and all costs therefore shall be included in the prices
named in the bid schedule for the various appurtenant items of work.
All work not meeting the Contract Specifications, including but not limited to clearance requirements as set forth in Section 02970 – Line Clearing, unless otherwise approved by the City, shall be reworked at the Contractor’s expense.
1.2 INVOICING
A. The Contractor shall submit an invoice at the end of each calendar month for all work
fully completed during that month. The invoice shall specify hours billed for each hourly and unit crew and shall specify the number of trees line cleared, number of trees
removed and the number of non-exempt poles cleared for each crew.
B. The City will promptly review all invoices submitted by the Contractor. Any invoice that the City determines is not proper will be returned to the Contractor with a written explanation of the reasons for the City’s determination. Any invoice that is properly submitted and undisputed by the City will be processed for payment and will be paid in full; retention will not be withheld.
1.3 CHANGE ORDERS A. The City may require changes in, additions to, or deductions from the Work to be performed or the materials to be furnished under the Contract pursuant to the provisions of the Contract documents. No change to the Work shall be made or extra work performed or deduction from the Work made unless in pursuance of a written Change Order from the City, and signed by the Project Manager stating that the change, addition, or deletion, or any combination thereof, is authorized. No claim for additional payment shall be considered unless so ordered.
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Adjustment to the Contract Price by reason of a duly authorized Change Order will be determined on the basis of one or more of the following methods, at the option of the
Project Manager:
1. On the basis of applicable and appropriate unit and/or hourly prices stipulated in the Contract.
2. On the basis of an acceptable lump sum proposal from the Contractor in
response to a quotation request.
3. On the basis of actual necessary cost plus fifteen (15) percent to cover superintendence, general expense and profit, hereinafter referred to as
“Force Account”.
Force account work, if ordered, shall be adjusted and certified daily on record sheets acceptable to the Project Manager and signed by both the Project Manager and the
Contractor. Such daily report sheets shall thereafter be considered as the true record of force account work done.
Actual necessary costs shall include labor, equipment, and materials. Computation of
labor costs shall include wages paid for workers including any employer payments of payroll taxes, workers compensation insurance, liability insurance, health and welfare,
pension, vacation, apprenticeship funds, and other direct costs resulting from Federal, State or local laws. Equipment costs shall be on the basis of generally accepted
rental schedules for the locality. Material costs shall be supported by a supplier’s invoices.
PART 2 PRODUCTS (NOT USED)
PART 3 EXECUTION
3.1 BID ITEM 1 – UNIT COST LINE CLEARING WORK
A. Measurement: This item will be measured on a per each basis as identified by the City’s Inspector, however the City will only pay for trees that are at least six (6) feet apart in a
line parallel with the electrical conductors as measured at the trunk base. Trees less than six (6) feet apart shall be considered brush and paid in units of brush.
B. Payment: This item will be paid for on a per each basis as measured above. Payment
will include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in completing this item of work as shown
on the Plans and in the Specifications.
3.2 BID ITEM 2 – HOURLY COST LINE CLEARING WORK
A. Measurement: This item will be measured on a per hour basis (to the nearest quarter hour) for each two (2)-person crew. Time at the Municipal Service Center, job site(s) and
travel time between job site(s) will be measured. Disposal of wood debris generated at
job site(s) will not be measured if disposed of outside the City. Travel time to and from Palo Alto will not be measured. Lunchtime will not be measured.
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B. Payment: This item will be paid on a per hour basis (to the nearest quarter hour) for each
two (2)-person crew. A three (3)-person crew, when approved and deemed appropriate by the Project Manager, will be paid at one and one-quarter times the rate of the two (2)-
person crew. Payment will include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in completing this
item of work as shown on the Plans and in the Specifications. The City will not pay for non-productive time due to vehicle or equipment breakdowns, or lack of proper
equipment to do the job. Overtime work shall only be authorized by the Project Manager. The Contractor shall charge the City no more than the minimum overtime rate required by
federal and state law. Emergency crews will be paid only for the hours worked on the job, not for “standby” time, outside the normal working hours.
3.3 BID ITEM 3 – UNIT COST POLE CLEARING
A. Measurement: This item will be measured on a per each basis from a list of non-exempt
poles provided by the City’s Project Manager.
B. Payment: This item will be paid on a per each basis. Payment will include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for
doing all the work involved in completing this item of work as shown on the Plans and in the Specifications.
3.4 BID ITEM 4 – UNIT COST POLE CLEARING & SPRAYING
A. Measurement: This item will be measured on a per each basis from a list of non- exempt
poles provided by the City’s Project Manager.
B. Payment: This item will be paid for on a per each basis. Payment will include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for
doing all the work involved in completing this item of work as shown on the Plans and in the Specifications.
3.5 ADDITIONS AND DELETIONS
The City shall at any time during the term of this Contract, amend the Contract to add or delete like services, or revert hourly work to unit if in the best interest of both parties. Any
such written notice shall take effect on the date stated in the notice from the City. Equipment, locations, and/or services added, will be subject to the Contractor’s services
and charges or rates as an item already specified on the bid sheet, Section III. In the event that the additional service is not identical to any item already under Contract, the
charges therefore will then be the Contractor’s charges or rates for the equipment, locations, and/or services as stated in Additional Services or Products, of the Bid Sheet,
Section III.
3.6 ESTIMATED QUANTITIES NOT GUARANTEED The estimated quantities specified herein are not a guarantee of actual quantities, as the
City does not guarantee any particular quantity of tree trimming or removal services during the term of this Contract. The quantities may vary depending upon the actual
needs of the City. The quantities specified herein are good faith estimates of usage during the term of this Contract. The City shall not be liable for any contractual
agreements/obligations the Contractor enters into based on the quantities specified herein.
END OF SECTION
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COORDINATION – Section 01040
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Hours of work. B. Daily schedule.
C. Project schedule.
D. Emergency operations.
E. Customer notification.
F. Post Audits.
F. City representation.
PART 2 PRODUCTS
PART 3 EXECUTION
3.1 HOURS OF WORK
A. The Contractor shall limit its operations to the hours between 8:00 a.m. and 4:00 p.m. and to the days of Monday through Friday. Crews shall be at the work site and ready to
start work by 8:00 a.m. On occasion, a crew or crews shall be required to start work before 8:00 a.m. The City will give the Contractor a minimum 24 hours advance notice if
this situation arises.
2.1
2.2
A.
A.
DAILY WORK REPORT FORMS
Furnished by the City.
DOOR HANGERS
The Contractor shall provide all crews with door hangers.
The door hangers are to beused to provide notification for impending work whenever a privately owned tree requires
clearance. The City’s Project Manager will provide the Contractor with the wording to useon the door hanger at the pre-construction conference, and will approve design of the
door hanger prior to distribution.
2.3 VEHICLE SIGNS
A. The Contractor shall install signs on both sides of all trucks stating “LINE CLEARING CONTRACTOR FOR THE CITY OF PALO ALTO – CALL 496-5953” in three
(3) inch size lettering.
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B. The Contractor shall not work on City holidays. City holidays are:
January 1
Third Monday in January Third Monday in February
Last Monday in May July 4
First Monday in September Second Monday in October
November 11 Thanksgiving Day
Day after Thanksgiving December 25
In the event that any of the aforementioned holidays falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned holidays falls on a Saturday, the preceding Friday shall be considered a holiday.
equipment. All scheduled or incidental maintenance work on equipment will be performed outside of normal work hours on the Contractor’s time.
F. During normal work hours, the Contractor shall have an hourly line clearing crew(s)
at the requested location for emergency line clearing work within one (1) hour after receipt of the City’s request. This crew(s) shall work at the standard hourly line
clearing rate.
3.2
A.
DAILY SCHEDULE
The Contractor’s General Foreman shall email a daily notification prior to the start of each
Day’s work that includes a legible roster and work schedule by area and address for that
day. The full name of each crew member shall be listed.
B. The Contractor shall arrange for daily consultation with the City’s representative.
Contractor shall seek prior authorization from the City if the crew(s) shift is other than the standard City work shift, are not working on a normal work day, or if quitting work prior to
the normal quitting time.
C. The Contractor shall notify the Project Manager in writing or email of changes in crew composition.
D. The Contractor shall submit daily work reports on a form, provided by the City, detailing the previous day’s work for each crew. This report shall be available to the City on the following workday. The daily work report shall show the names of each crew member, the date, the map area and addresses of each work location, the number and species of each tree cleared or removed, the number of person hours spent on each tree species cleared or removed and any other pertinent information required by the City.
E. The Contractor is responsible to report all breakdown/minor maintenance for any piece of equipment during the billable portion of the workday form for both man-hours and
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3.3 PROJECT SCHEDULE
A. The Contractor shall prepare the project schedule consistent with the following requirements:
1. Work shall begin no later than seven (7) calendar days after receipt of Notice to
Proceed.
2. The schedule shall provide for all work to be completed on an annual basis. The number of crews supplied shall be sufficient to complete the work within the
project schedule. The Contractor shall increase or decrease the number of crews as directed by the Project Manager to meet seasonal changes in
vegetation growth, fire hazard protocols, or issues related to the geography of the area.
3. Unit and hourly work in each map area shall be completed within ten (10) days of
a mutually agreed upon deadline for completion. All work shall be completed to the satisfaction of the Project Manager before work commences in the next map
area.
4. Vegetation near electric conductors and non-exempt poles in the foothills area shall be cleared in the two to three weeks prior to the start of fire season,
(typically June 1 through October 31). These clearance standards shall be maintained through the course of the fire season.
5. Should the Contractor be delayed by development of unanticipated changes,
modifications or alterations made by the City, completion deadlines may be extended, but the Contractor shall have no claim for damages due to any such
delay.
B. The Contractor will be issued work packages by City personnel. The Contractors are
expected to perform their own inspection upon receiving City work packages to ensure the prescription complies with all regulatory requirements and/or City standards. If the
Contractor determines that the inspector’s work prescription does not, in fact, meet all regulatory requirements and/or City standards, the Contractor must notify the City
representative. The Contractor is responsible for noting any changes on the work order request. The Contractor must make customer notification for any added trees, unless
directed by a City representative. Removals added must be in accordance with City vegetation management standards and codes. The Contractor must obtain a signed
removal form, provided by the City, by the property owner for all added removals.
3.4. EMERGENCY OPERATIONS
A. Although normal work hours will be Monday through Friday, 8:00 a.m. to 4:00 p.m., the
Contractor shall have available sufficient skilled personnel and equipment to perform all work activities covered under this contract, 24 hours a day, seven days a week, and in all
types of weather.
In the event of an emergency, the Contractor shall respond within two (2) hours of being notified by the City. The City will indicate that the work to be performed is an emergency.
Communication with the Contractor shall be verbal, telephone/cell phone, two-way radio
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or email.
Should an emergency occur, the Contractor may or may not be contacted by the City to
assist with emergency clearing of trees, limbs, and root balls.
The City will notify the Contractor the location of road(s), section of road(s), or outlying areas for clearing. The Contractor will be responsible for clearing all locations as notified
by the City.
All emergency pruning and tree removal services shall be in accordance with the procedures referenced in this Scope of Work, Sections 02115 and 02970.
The Contractor may charge no more than the minimum overtime rates as they relate to
all laws and regulations in the California Fair Labor Standards Act for emergency call- outs.
B. The Contractor shall provide the City with up to five (5) hourly line clearing crews including one (1) supervisor for emergency service after the normal work hours of 8:00
a.m. to 4:00 p.m. when requested by the Project Manager.
C. The Contractor shall provide the City with a current call-out list of all contract personnel and phone numbers. This list shall be updated any time there are personnel changes.
D. The Contractor’s General Foreman shall be responsible for coordinating call-out
personnel with the Project Manager.
3.5 CUSTOMER NOTIFICATION
A. For Utility Line Clearance Services, the City or its designated representative shall be
responsible for all initial property owner contact associated with completion of this work. Any subsequent customer/property owner contact by the contractor shall comply with the
following conditions:
1. Any line clearance work done without property owner notification must have approval of the City representative prior to start of work.
2. Verbal notification of the property owner for routine line clearance work
may be sufficient. If the property owner is not home, a notification card may be left on the door. Notification cards shall not be placed in any
U.S. mailboxes. Notification cards shall only be used where the owner is likely to be present on site on a regular basis.
3. The Contractor shall provide notification to residents whenever a privately owned tree requires clearance. A door hanger shall be left at
the property if verbal contact is not made. Door hangers shall be left a minimum of twenty-four (24) hours in advance of the work.
4. Absentee owners may be notified by mail or by phone. In the case of
industrial, municipal, county, state, or large private holdings, the individual in the employ of the owner who is responsible for the
vegetation to be cut or trimmed is considered to represent the interest of the owner. Notification to such caretakers, grounds maintenance
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supervisors or other responsible individual is an acceptable contact.
5. Removal of private trees requires the specific consent of the property owner. Contractor is to assure permission for complete tree removal has
been obtained.
6. Contractor shall maintain a written note of all property owner notification
by personal contact, letter, telephone call, and notification card on the work order for that location unless directed otherwise by the City’s
Project Manager. The note on the work order shall include a record of the date of initial contact, party contacted, method of contact, any
agreements reached and any follow-up conducted. The City will provide the Contractor with a work package of pre-notified work locations with
work orders for each location.
7. If, after given such notice, the property owner raises objection to the proposed vegetation maintenance work, the Contractor shall make every
reasonable effort to reach an agreement with such owner and carry out the provisions of the specifications. In the event that an owner refuses to
permit line clearance work to the extent herein specified, the Contractor shall advise the City’s representative of the circumstances involved an
suspend operations on the customer’s property. The City will respond to the property owner’s concerns in a timely fashion, and shall resolve the
situation. The City will notify the Contractor when resolution of the property owner’s concern is reached, and work may resume on the
suspended site.
B. The Contractor shall notify adjacent properties of rear line clearing operations prior to the
commencement of work, if their property will be impacted or affected in any way.
C. If a property owner or resident will not allow the Contractor to perform the assigned work
in compliance with all regulatory requirements and/or City standards the Crew Foreman is expected to report this refusal to his/her General Foreman, and record the date of the
refusal at the bottom of the work order. The General Foreman shall make personal contact with the property owner or resident and attempt to resolve the concern and
schedule a crew to perform the prescribed work. If the General Foreman cannot convince the property owner or resident to allow the work to be performed, the General
Foreman will return the work request to the City representative. The General Foreman shall attach notes related to the customer concern, dated and signed, to the work
request.
3.6 POST AUDITS
The Contractor must perform its own post job audits to confirm that it has performed all tasks required on the work order. Post job audits will also be performed by the City. In
the event that work was not completed in accordance with the work order and/or City specifications, the Contractor shall re-perform the work at no additional cost to the City.
In addition, the City may require the Contractor to provide documented proof of all work post-audited by contract management. Post-audits are likely to increase if any part of
completed work is considered out of compliance standards and/or City specifications.
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3.7 CITY REPRESENTATION
A. The Project Manager will appoint an agent or an employee to represent him/her on thejob site. Such representative, acting within the scope of duties assigned, will providethe following services and assistance:
1. Coordination between Project Manager and Contractor.
2. Review of the Contractor’s performance of the Work.
3. Interpretation of the Plans, Specifications and Contract Documents.
4. Review of Contractor’s progress payment estimates.
5. Distribution of pre-inspected work packages to the Contractor.
6. Coordination between the Contractor and City Electrical Operations representatives to ensure safety of Contract workers.
7. Determination, coordination, direction and authorization of tree removals including
but not limited to: protected species, “make-safes”, and Right-tree-right- place (RTRP) candidates.
END OF SECTION
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PROJECT MEETINGS – Section 01200
PART 1 GENERAL
1.1 SECTION INCLUDES A. Pre-construction conference. B. Monthly project meetings.
1.2 MINUTES
A. The Project Manager will compile minutes of the pre-construction conference and each monthly meeting and will distribute copies to the City and the Contractor.
1.3 REPRESENTATION
A. Contractor representative(s) attending meetings shall be qualified and authorized to act on behalf of the Contractor.
1.4 SUBMITTALS A. The Contractor shall submit a list of personnel, their qualifications and equipment to be used on this project as outlined in Section 01400 ‘Quality Control’ to the Project Manager
for review and approval seventy-two (72) hours before the pre-construction conference. The equipment list shall include make, model and year of vehicles; aerial lift height,
chipper box capacity; tools and safety equipment for each crew. B. The Contractor should also include on list above any specialized equipment and operators that would be available for non-routine work.
PART 3 EXECUTION
3.1 PRE-CONSTRUCTION CONFERENCE
A. The Contractor and the Contractor's General Foreman shall attend a pre-construction conference within fourteen (14) calendar days after Award of Contract to discuss the scope of work and sequence of operations.
B. The pre-construction conference will be held at the Public Works Operations office, Building C of the Municipal Service Center, 3201 East Bayshore Road, Palo Alto.
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EXHIBIT A
SCOPE OF WORK
3.2 MONTHLY PROJECT MEETINGS
A. The Contractor and the Contractor's General Foreman shall attend monthly project meetings and specially called meetings throughout progress of the Work.
B. Pre-approved time and material request forms for removals, exceptionally hazardous
tree work, and non-typical pruning including crown reductions, overhangs, make-safes, or any hourly work requiring assistance from the City’s Electric Operations will be submitted
and discussed at these meetings.
C. The monthly project meetings will be held at the Public Works Operations office, Building
C of the Municipal Service Center, 3201 East Bayshore Road, Palo Alto or at field locations designated by the Project Manager.
END OF SECTION
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QUALITY CONTROL – Section 01400
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Company requirements. B. Personnel requirements.
C. Storm response requirements.
D. Equipment requirements. E. Communication device requirements.
PART 2 PRODUCTS (NOT USED)
PART 3 EXECUTION
1.1 COMPANY REQUIREMENTS
A. Contractor shall have at least ten (10) years of current experience performing contract line clearing work in the state of California. Contractor’s local management staff shall be completely qualified to perform the work of this contract and have a minimum of five (5) years current experience performing line clearing contract work in the state of California.
B. Prior to award of Contract, the City of Palo Alto reserves the right to inspect the Contractor’s current place of business to evaluate equipment condition, capabilities,
staff experience, training, and storage capabilities as they relate to the performance of this Contract.
C. Contractor shall have sufficient labor and equipment resources to perform the work of this project in a safe and efficient manner. Contractor shall have a minimum crew capacity of
five (5) crews with the ability to bring an additional five (5) crews and sufficient equipment for unforeseen issues (such emergency response) within 24 hours of request, at the
discretion of the City.
D. Contractors’ local office shall be located within 100 miles and Contractor’s yard shall be located within 20 miles of the City of Palo Alto’s city limits.
E. The Contractor and/or its employees shall not solicit and/or perform private tree work
within the city limits of Palo Alto for the duration of this Contract. Violation of this provision may be cause for termination of this Contract.
1.2 PERSONNEL REQUIREMENTS A. GENERAL FOREMAN. All work shall be performed under the supervision of the
Contractor’s thoroughly experienced and qualified General Foreman. He/she shall be an International Society of Arboriculture (ISA) Certified Arborist, have a minimum of five (5)
years’ experience as a utility line clearance tree trimmer or equivalent, and be line clearance certified through an OSHA approved program or equivalent. Equivalent
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experience will be accepted at the discretion of the City’s Project Manager. The General Foremen shall also have at least five (5) years’ experience overseeing utility line clearing
tree work and shall be on the Project site at all times. The General Foreman will be subject to the approval of the Project Manager.
The General Foreman shall ensure crew proficiency (professional quality) and efficiency
(productivity and neatness) and shall make all personnel, equipment, and work method changes required to correct deficiencies identified by his/her own observations or by the
City’s designated representative. The General Foreman shall be dedicated to the Contractor’s line clearance operation on Palo Alto’s system and shall not be assigned
responsibility for any other work while the Contractor has crews at work on the City’s system.
The person designated as General Foreman shall have direct charge of the work and
shall be authorized to accept and execute all orders and directives issued by the Project Manager. The General Foreman shall be readily available for consultation with the
Project Manager and City’s representative.
The Contractor shall not change its designated General Foreman without written notification to the City seventy-two (72) hours in advance. The new General Foreman
shall have the required credentials and meet the experience requirements listed in this section and will be subject to the approval of the Project Manager.
Breach of these provisions may constitute just cause for suspension of the Work until a
qualified and acceptable Foreman is assigned to the Project.
B. CREW. Each crew shall consist of a Crew Foreman and a Climber, or a Crew Foreman,
Climber and Groundsman when deemed necessary.
The Crew Foreman must be an ISA Certified Tree Worker/Climber Specialist or achieve Arborist certification status within a reasonable amount of time after contract award.
He/she shall be line clearance certified through an OSHA approved program, have a minimum of five (5) current years’ experience as a utility line clearance tree trimmer, and
a minimum of three (3) years’ experience as a line clearing crew Foreman. Equivalent experience will be accepted at the discretion of the Project Manager.
The Climber shall have a minimum of three (3) years of experience in line clearance tree
work, have certified documentation, and meet CAL OSHA requirements to work within 10 feet of energized conductors. The Climber will be under the direction of the Crew
Foreman and must be familiar with Contractor’s work practices and safe work procedures, as well as the City’s standards, and specifications. The Climber will have
knowledge of and understand all applicable state regulations and the use of all tools and equipment related to utility tree work.
The Groundsman will be under the direct supervision of a Crew Foreman or Climber. The Groundsman will not trim trees near energized conductors. The Groundsman will be expected to work safely moving and stacking brush, raking, chipping brush, controlling traffic and other tree related duties as directed by the Crew Foreman or Climber.
The competency of crew personnel shall be maintained through regular training by the Contractor emphasizing Best Management Practices, Utility Pruning of Trees ISA
publication, ANSI A300 Pruning Standard-Part 1, and ANSI Z133 Safety Standard. A copy of Best management Practices, Utility Pruning of Trees ISA publication shall be in
each crew truck.
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C. All certifications and degrees shall be current at the time of Contract award and shall remain current and up to date throughout the life of the Contract.
D. The Contractor shall furnish all employees with a company picture identification card and
company uniform to be worn during the course of this Project. The City shall furnish supplemental photo identification for Crew Foreman and field personnel, showing the
Contractor is working for the City.
E. The General Foreman and Crew Foreman must be able to speak and write English and receive and communicate to the crew and property owner’s instructions and information
relevant to the work order.
F. If the Project Manager finds the Contractor’s employee to be unsatisfactory, the Contractor shall replace that employee immediately.
1.3 STORM RESPONSE
The Contractor is required, as a part of this RFQ, to submit a storm plan. The plan shall address, but not be limited to, information detailing the resources the Contractor has
available and the probable response time necessary to mobilize said resources at the City’s request in the event of a storm. Crew assigned to the City shall not be reassigned
to storm duty to other utilities without the City’s specific approval.
The City will compensate the Contractor at the rates and overheads, complying with all laws and regulations related to the California Fair Labor Standards Act, not-to-exceed
twice the normal contractor rates. When crews are dispatched for storm work, equipment for proper response, in addition to required tooling, shall include, but not be limited to:
hand held spotlight (minimum 200,000 candle power), flares, sufficient petty cash, rigs totally operational an fully fueled. Contract crews should be assembled and responding
in less than 120 minutes from time of call by City representative.
1.4 EQUIPMENT REQUIREMENTS
A. Contractors equipment must be the size and type required to perform the work described
within this specification. The Contractor shall service and maintain all equipment in excellent operating condition. Servicing and maintenance shall be carried out on the
Contractor’s own time and at his expense. No repair work shall be performed at the City’s expense.
B. The City requires acceptable evidence of the Contractor’s ability to obtain required
resources. This shall be a commitment or explicit arrangement in existence at the time of a site-visit by the City of the Contractor’s facility, to rent, purchase, or otherwise
acquire the needed equipment or other resources to adequately perform the Scope of Work.
C. Each hourly crew shall be equipped with an aerial lift truck with 55 feet working height
and chipper body with a minimum capacity of eight (8) cubic yards, large disc/drum self- feeding, high-powered chipper designed to chip large material, one (1) long extension
ladder, (20’ or greater), three (3) chainsaws (two with 14 inch bar minimum, one with 22 inch bar minimum), two (2) manual pole pruners, one (1) pole saw, one (1) Sheave block
(4” minimum), climbing and personal safety gear, traffic control equipment to perform the work, one (1) set of portable lighting and flares sufficient to support effective emergency
work after dark, one (1) leaf blower, 1 Diameter tape (d-tape) for measuring the diameter of limbs and trees, 1 Aerosol can of water-based, Lead free, VOC compliant marking
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paint. A flatbed aerial lift truck may be used if a separate chipper truck is provided.
D. Each unit crew shall be equipped with a chipper truck with a minimum eight (8) cubic yard capacity, large disc/drum self-feeding, high-powered chipper designed to chip large
material , one (1) long extension ladder (20’ or greater) two (2) chainsaws, two (2) pole pruners, one (1) pole saw, climbing and personal safety gear, and traffic and safety
control equipment, one (1) set portable lighting and flares sufficient to support effective emergency work after dark, one (1) leaf blower, 1 diameter (D-tape) for measuring the
diameter of limbs and trees, 1 aerosol can of water-based, Lead free, VOC compliant marking paint.
Contractor should have available upon request additional aerial lift equipment for tasks
that require special equipment such as a 70 and/or 100 foot lift as referenced in Bid Schedule.
E. Crews working in the foothills area shall carry all required fire-fighting tools, including, but
not limited to, a shovel, Pulaski and backpack fire-fighting pump in addition to their line clearing tools. Clearing around non-exempt poles will require a gas powered weed
trimmer.
F. COMMUNICATION DEVICE REQUIREMENTS
The General Foreman and Crew Foreman or equivalents must have more than one mode of communication in the field at all times such as a smart phone and two-way
communication device. Smart phones will be used to facilitate communications in the field and with City personnel. The City of Palo Alto may request to utilize this technology
for the transfer of electronic documents including, but not limited to, PDFs, shop papers, work request tags, tree inventory data, and complaints. The City would also request that
all information sent electronically follow all of the City’s privacy and confidentiality requirements.
END OF SECTION
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TEMPORARY UTILITIES – Section 01510
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Provide water facilities.
PART 2 PRODUCTS (NOT USED)
PART 3 EXECUTION
3.1 PROVIDE WATER FACILITIES A. The Contractor shall provide and maintain adequate drinking water facilities at locations
easily accessible to workers during working hours.
B. The Contractor shall provide all water necessary for performing the work. C. The Contractor shall not use residential or business water services for any purpose.
END OF SECTION
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SECURITY – Section 01540
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Job site safety.
B. Protection of property.
C. Protection of utilities.
D. Site use and maintenance.
PART 2 PRODUCTS (NOT USED)
PART 3 EXECUTION
3.1
A.
JOB SITE SAFETY
The Contractor shall be solely and completely responsible for job site conditions and
safety during the term of the Contract. This obligation shall include the safety of all
persons within or affected by the line of construction and all public and private propertyaffected by the Work.
The Contractor’s responsibility shall be continuous and not be limited to working hours ordays, and shall not cease until formal acceptance of the Work by the City except that if
the City should make partial acceptance of the Work, the Contractor’s responsibility forthe portion of the Work so accepted shall thereupon cease, except for latent errors in the
Work or faulty construction. The Contractor shall defend, indemnify, and hold harmlessthe City, its officers, consultants, agents and employees, from any and all liability, real or
alleged, resulting from the Contractor’s operations, except for liability arising from thesole negligence of the City, et al.
3.2 PROTECTION OF PROPERTY
A. The Contractor shall be responsible for the protection of all improvements on both public
and private property within and adjacent to the work area and shall take all precautionsnecessary to prevent damage to such improvements.
The Contractor shall provide plywood and supports as needed to provide adequate
protection at designated sites.
Contract crews shall take care in removing branches from private property to prevent damage to house siding, fences and gates.
Limbs and trunk sections that cannot be easily controlled by hand shall be lowered by
rope or cut into smaller pieces to prevent damage to improvements.
B. The Contractor shall report all damage to public and private improvements to the ProjectManager within one (1) hour of the time the damage occurs. The Contractor shall notify
the owner of damaged private improvements in writing the same day.
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C. The Contractor shall repair or replace all damaged improvements in a manner satisfactory to the Project Manager and any private property owner involved. The
Contractor shall complete the repair or replacement, at Contractor's expense, within seventy-two (72) hours from the time damage occurs.
D. Improvements shall include, but not be limited to, turf, trees, vegetation, pavements,
irrigation systems, fences, and structures.
3.3 PROTECTION OF UTILITIES
A. The Contractor shall be responsible for the protection of all utilities on both public and private property within and adjacent to the work area and shall take all precautions
necessary to prevent damage to such utilities.
B. The Contractor shall report all damage to public and private utilities to the Project Manager and the respective utility company within one (1) hour of the time damage occurs. The Contractor shall notify the resident and owner of any property affected by a
damaged utility within one (1) hour of the time damage occurs.
C. The City will repair City utilities damaged by Contractor's operations. The cost of repairs performed by the City will not be deducted from the Contract price, but shall be paid
independently by the Contractor to the City.
D. The Contractor shall repair or replace all non-City utilities damaged by its operations, at
the Contractor's expense. The Contractor shall complete repair or replacement of all essential utilities (including telephone, electrical, water and gas) the same day damage occurs. All other repair or replacement shall be completed within seventy-two (72) hours of the time damage occurs.
E. Utilities shall include, but not be limited to, water, gas, sanitary sewer, storm drain system, electrical power, street lighting, traffic signals, signal detector loops, telephone,
cable television, fiber optic, and any other City or private overhead or underground facilities.
3.4 SITE USE AND MAINTENANCE
A. The Contractor shall clean the work area, at the end of each working day, to a condition
at least equal to that which existed before the start of work.
B. The Contractor shall remove all equipment and materials from City property at the end of each working day, and at other times when the work is suspended for any reason. The
Contractor shall not use City property for the overnight storage of equipment and materials.
C. The Contractor shall not use private property within the City limits of Palo Alto for the
storage and staging of equipment and materials without written agreement of the property owner. The Contractor shall submit a copy of the agreement to the Project Manager.
END OF SECTION
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TRAFFIC CONTROL – Section 01570
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Provide traffic control.
B. Post “No Parking” signs.
1.2 REFERENCES
A. The current edition of the Standard Specifications of the Department of Transportation, State of California, hereinafter referred to as the Caltrans Standard Specifications.
B. The current edition of the California Manual on Uniform Traffic Control Devices PART 6 -Temporary Traffic Control of the Department of Transportation, State of California,
hereinafter referred to as the California MUTCD.
PART 2 PRODUCTS
2.1 TRAFFIC CONTROL DEVICES
A. Cones: 28" high and conforming to Section 12-3.10 of the Caltrans Standard
Specifications and Section 6F.64 of the California MUTCD
B. Barricades: Type II and III conforming to Section 6F.63 of the California MUTCD. Each barricade shall be equipped with a Type A low intensity flashing warning light conforming to Section 6F.83 of the California MUTCD.
C. Signs: Portable signs and bases conforming to Section 12-3.06 of the Caltrans Standard Specifications and Chapters 6F and 6H of the California MUTCD. Signs shall not be mounted on barricades or vehicles.
D. Flashing Arrow Signs: Solar and/or battery powered and conforming to Section 6F.61 of the California MUTCD.
E. Flagger Equipment: Conforming to Chapter 6E and Section 6F.31 of the California
MUTCD.
F. Tape: 3 inches wide, yellow vinyl barrier tape with black letters stating “Caution”.
G. “No Parking” signs: Furnished by the City.
PART 3 EXECUTION
3.1 PROVIDE TRAFFIC CONTROL
A. The Contractor shall provide traffic control for all operations and shall conduct all operations so as to cause the least possible obstruction and inconvenience to the general public and vehicle, bicycle and pedestrian traffic.
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B. The Contractor shall furnish, place and maintain all necessary traffic control devices during its operations in conformance with the applicable requirements of this section and
the California MUTCD.
C. The Contractor shall notify the City of Palo Alto Police Department - Communication Division at (650) 329-2413 on a daily basis of significant traffic control measures.
D. The Contractor shall use a flashing arrow sign for lane closures on multilane streets and
shall restrict lane closures on multilane streets to the hours of 9:00 a.m. to 4:00 p.m.
E. Specific traffic control procedures shall include, but not be limited to, the following:
1. Partial street closure, maintain two-way traffic, provide flaggers and one traffic lane: This type of traffic control shall be used for partial closures extending either
the full length or a portion of the length of a street. Part of the street shall be coned off, leaving a minimum width of twelve (12) feet open for traffic. The
Contractor shall maintain two-way traffic on this street by utilizing at least two flaggers. The flaggers shall allow one direction of traffic at a time to travel in the
one remaining twelve (12) foot lane. Traffic control signs shall be placed in appropriate locations at, in advance of, and after the closure. Cones shall be
used to separate the traffic from the work zone.
2. Partial street closure, maintain two-way traffic, provide two traffic lanes: This type of traffic control shall be used for partial closures extending either the full
length or a portion of the length of a street. 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 twelve (12) foot wide traffic lanes. Traffic control signs shall be placed in appropriate locations at, in advance of, and after the closure. Cones
shall be used to separate the traffic from the work zone.
3. Full lane closure on multilane street, maintain two-way traffic, provide two traffic lanes minimum: This type of traffic control shall be used for lane closure on a
multilane street extending either the full length or a portion of the length of a street. The lane shall be coned off, and a flashing arrow sign and cone taper
used to shift traffic into the adjacent lane. Traffic control signs shall be placed in appropriate locations at, in advance of, and after the closure. Cones shall be
used to separate the traffic from the work zone.
3.2 POST “NO PARKING’ SIGNS
A. The Contractor shall post “No Parking’ signs at all vehicle parking areas within or adjacent to the work zone, and at other locations where parking restrictions are required
for traffic control, access or safety.
B. The Contractor shall post “No Parking” signs seventy-two (72) hours before the start of work. If the start of work is on a Monday, then the signs shall be posted on the preceding
Thursday.
C. The Contractor shall fill in the appropriate blanks on the signs, including the notification date and time, and the preparer’s initials.
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D. “No Parking” signs shall be posted on both sides of barricades placed at intervals of no
greater than fifty (50) feet. Barricades shall be placed in the street or in the
planter as close to the street as possible. Barricades shall be removed from the work area on the same day that the work is completed.
E. Vehicles, which remain parked in violation of correctly posted “No Parking” signs, will be towed away under the direction of the City of Palo Alto Police Department. The Contractor shall be responsible to request towing by contacting the CPAPD – Traffic Division at (650) 329-2683. If the “No Parking” signs have not been posted correctly and a vehicle is towed, the contractor shall be liable for the cost of towing.
F. If work is not completed as indicated on the signs the Contractor shall re-post signs with
updated information. The Contractor shall fully maintain the posted “No Parking” signs during the time of posting through the end of construction for the work area.
END OF SECTION
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TREE REMOVAL/NON-EXEMPT POLE CLEARING – Section 02115
PART 1 GENERAL
1.1
A.
B. C.
SECTION INCLUDES Tree removal.
Non-exempt pole clearing and spraying.
Debris removal.
1.2 REFERENCES
A. The current edition of the Manual of Traffic Controls for Construction and MaintenanceWork Zones of the Department of Transportation, State of California, hereinafter referredto as the CalTrans Traffic Control Manual.
B. Power Line Fire Prevention Field Guide (current edition)
California Department of Forestry and Fire Protection 1416 Ninth Street
Sacramento, CA 94244
C. California Department of Pesticide Regulation 1001 I Street
Sacramento, CA 95814
PART 2 PRODUCTS
2.1 EQUIPMENT
A. Barricades: Type II conforming to Section 5-05.6 of the CalTrans Traffic Control Manual.
Each barricade shall be equipped with a Type A low intensity flashing warning light conforming to Section 5-05.8 of the CalTrans Traffic Control Manual.
B. Tape: 3 inches wide, yellow vinyl barrier tape with black lettering stating “Caution”.
2.2
A.
HERBICIDES & TREE GROWTH REGULATORS
Contact: Glyphosate herbicide registered for use in California and approved by the
Project Manager.
B. Pre-emergent: Diuron or equivalent registered for use in California and approved by the
Project Manager.
C. Tree Growth Regulator: Profile 2SC or equivalent registered for use in California and approved by the Project Manager.
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PART 3 EXECUTION
3.1 TREE REMOVAL
A. The Contractor shall remove trees at the direction of the Project Manager.
All tree removals must comply with the specifications listed in the most current version of the City of Palo Alto’s Tree Technical Manual. The Contractor shall have copies of valid
documentation and/or permits at the job site when performing work on protected trees.
B. Specific addresses/locations will be given to the Contractor for trees marked for removal. If the physical address/location is not available, the tree(s) to be removed will be plainly
marked by the City with a pre-determined color of paint.
C. In locations where ordinary felling operations might cause damage to property, the trees shall be suitably dismembered and felled using recognized forestry rigging practices as
stated in the most current revision of ANSI A300 and ANSI Z133 Safety Standard (encompassing OSHA work-site safety regulation), ensuring that any severed portion of
the tree is under control at all times.
D. After all limbs have been removed which might contact high-voltage utility lines or cause damage to other trees or property, trees shall be felled directly away from power or
communication lines, structures, vehicular or pedestrian rights-of-way, or horticultural plantings. If a tree must be felled toward a power or telephone line, it shall be topped low
enough to clear all conductors, poles, guys, and similar installations.
E. If there is danger that the trees being felled could fall in the wrong direction or damage property, guide ropes shall be used. All limbs shall be removed from trees to a height
and width sufficient to allow the tree to fall clear of any wires and other objects in the vicinity. The Contractor shall use recognized forestry rigging practices as stating in the
most current revision of ANSI Z133 (encompassing OSHA work-site safety regulation).
F. Due to the danger of trees falling in an unexpected direction, even though the cut is made on the proper side, the Contractor shall take precaution in roping trees, most especially
those which are diseased, rotten or rotting, split, or in appearance to be visibly weak. The Contractor shall use recognized forestry rigging practices as stated in the most
current revision of ANSI Z133 (encompassing OSHA work-site safety regulation).
G. Ropes shall be used to lower all limbs of sufficient size to cause damage to other trees or surrounding public or private property.
H. Before any trees are felled, workmen, other than those operating the felling equipment or
giving directions to the workmen involved, shall move and remain clear of the danger zone. Any and all workers who are within the danger zone shall adhere to the safety
guidelines as required by the most current revision of ANSI standards, OSHA, and any other governing policy, ordinance, standard, or law. The danger zone is that sector of the
felling-area in which the tree(s) could fall. The size of the danger zone shall be determined by the Contractor upon consideration of all pertinent factors relative to the
tree removal operation. Ample warning shall always be given prior to the tree falling and all workmen must stand clear in case the tree springs from the stump while falling. Prior
to felling any trees, the Contractor shall clear away all brush, debris, or equipment that is not required or needed for felling of the tree.
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I. Under no circumstances shall a partially cut tree or debris be left standing during rest
breaks, lunch breaks, or overnight. All debris created must be removed from the jobsite daily. If the Contractor must leave debris overnight, the Contractor shall contact the City
for authorization. Under no circumstances shall the Contractor leave debris overnight without prior approval of the City.
J. Chippers shall only be run at 15-20 minute intervals. In order to minimize offensive noise, chippers shall not be run continuously.
K. The stumps of all removed trees shall be cut as close to grade as possible. Upon City approval, the Contractor shall treat it with a City-approved growth inhibitor to prevent re-
sprouting. L. The work shall include removal and disposal of brush and debris generated by said work. Debris resulting from tree removal work shall be sorted as chips and wood, and shall be removed from the work site daily. Chips and wood free of trash shall be disposed of at the City of Palo Alto’s Municipal Service Department, located at 3201 East Bayshore
Road. The Contractor will be supplied with free passes for this purpose by the Project Manager. All waste material regulations will apply to debris deposited by the Contractor.
The City reserves the right to decline debris disposal at this location for any reason throughout this contract, and will assist the Contractor with alternate waste material area and chip dump locations whenever possible. If an alternate location cannot be identified, waste material shall be disposed of at the Contractor’s expense at a location approved by
the City. The City shall reimburse the Contractor based on Waste Disposal based on actual weight tag of loads taken to the processing facilities including the name of
business, location/address, weight of load and cost paid. The Contractor shall submit to the City every month a spreadsheet/report showing the details of the loads taken to the
processing facility.
M. Unchipped wood shall be cut into sections not to exceed eighteen (18) inches in any dimension and shall be disposed of as follows:
1. Wood requested by the resident shall be neatly stacked on the resident’s
property.
2. Wood not requested by the resident shall be delivered to a specified area in Palo Alto’s Municipal Service Center Nursery.
3. Wood and debris not accepted by the City, such as palm fronds, trunk pieces, elm wood, ivy and other debris shall be disposed of appropriately at a City approved location by the Contractor.
N. Contractor shall comply with all Federal, State and County regulations for pests, including, but not limited to, Sudden Oak Death (SOD) and Light Brown Apple Moth. Contractor shall follow the Sudden Oak Death Guidelines for Arborists (California Oak
Mortality Task Force, 2008) when working in SOD areas in order to limit the spread of this disease.
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3.2 NON-EXEMPT POLE CLEARING AND SPRAYING
A. The Contractor shall mechanically clear and, in specified locations, chemically treat the
area around non-exempt utility poles as defined in the California Department of Forestry and Fire Protection’s Power Line Fire Prevention Guide (current edition) and in
conformance with the approved schedule.
B. A ten (10) foot radius shall be cleared around the pole to mineral soil. In addition, poles
shall be cleared of all adjacent vegetation in a ten-foot radius, from grade to eight (8) feet above grade.
All vegetation cleared from the area described above shall be removed from the work
site daily. Waste material shall be disposed of at the Contractor’s expense at a location designated and/or approved by the City. The Project Manager may, on a case
by case basis, allow the Contractor to lop and scatter the cut vegetation outside the ten (10) foot radius cylinder.
C. Contact and pre-emergent chemical applications shall be made around selected non- exempt poles, when requested by the City, within the ten (10) foot radius. The herbicides used shall be registered for this use and approved by the Project Manager.
1. The Contractor shall provide trained (in accordance with California Department of
Pesticide Regulation requirements) individuals for this application work and a vehicle(s) capable of driving on steep, unpaved roads. The Contractor shall also
provide all the necessary protective gear and equipment as required by the California Department of Pesticide Regulation.
2. Contractor shall be responsible for registering with the Santa Clara County
Department of Agriculture, writing Pest Control Recommendations and filing all Pesticide Use Reports. The City will provide the Contractor with the City’s
operator identification number.
3. Contractor shall provide the City with a copy of all Pest Control Recommendations written for this work prior to any herbicide application. The
Contractor shall also provide the City with the name and amount of the material applied, application date, location and target species. The City will provide a
form for this reporting.
4. Contractor shall be knowledgeable of local conditions, such as Groundwater Protection Zones (GPZ) or ground water contamination areas.
END OF SECTION
Page 28 of 46
LINE CLEARING – Section 02970
PART 1 GENERAL
1.1 SECTION INCLUDES
A. Pruning standards.
B. General pruning specifications.
C. Electrical line clearing specifications.
D. Debris disposal.
E. Pest Control.
1.2
A.
REFERENCES
International Society of Arboriculture (ISA)
P.O. Box 3129
Champaign, IL 61826
B. American National Standards Institute, Inc. (ANSI)
11 West 42nd Street New York, NY 10036
C. General Order 95 (2007) or current edition
California Public Utilities Commission
D. Power Line Fire Prevention Field Guide (1998) or current edition California Department of Forestry and Fire Protection
1416 Ninth Street Sacramento, CA 94244
E. Migratory Bird Treaty Act of 1918
PART 2 PRODUCTS
2.1 DISINFECTANT
A. Contact spray: Lysol or equivalent approved by the Project Manager.
2.2 GUY GUARDS
B. Guy guards: Four (4) foot with bolts at each end, furnished by the City.
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
Page 29 of 46
PART 3 EXECUTION
3.1 PRUNING STANDARDS
A. Pruning shall conform to the techniques and standards specified in ANSI A300 (Part 1) - 2008 (Tree, Shrub and Other Woody Plant Maintenance - Standard Practices).
B. Climbing spurs shall not be used on any tree to be pruned except in an emergency situation (such as aerial rescue) or when authorized by the Project Manager.
C. Pruning tools shall be sterilized with disinfectant before and after pruning any elm tree.
D. Contractor shall adhere to all restrictions of the Migratory Bird Treaty Act of 1918 as they
apply to the work of this contract.
3.2 ELECTRICAL LINE CLEARING SPECIFICATIONS
A. Drop crotch pruning is the preferred method of line clearing. When cutting a limb back to
a lateral, the lateral should be at least one-third (1/3) the diameter of the limb being cut.
B. When line clearing using the V-cut method for large trees directly under the lines, prune to a suitable lateral below the conductors.
C. When line clearing adjacent elm trees, Contractor’s crews shall sterilize all cutting tools
with disinfectant before clearing the next elm tree.
D. Trees that have grown within one foot (hazard distance) of 120-240 volt, within 3 feet (hazard distance) of 2,400 volt-12kV, or within 10 feet (hazard distance) of 60 kV electrical lines shall be line cleared. These trees shall be cut to the following radial clearance distances (Drawings A1 and A2):
Line Type Voltage HazardDistance Clearance Distance
Transmission 60 kV Less than ten (10) feet Ten (10) feet or more
Primary
2,400V to 12kV
Three feet (3) feet
Six (6) feet
Secondary
120 to 240V
One (1) foot
Three (3) feet
1. Fast growing species located under or adjacent to primary conductors may require line clearing at hazard distances greater than shown in the table above.
The Project Manager will identify such trees.
2. At all times, trees shall be kept a radial minimum distance of eighteen (18) inches away from all conductors of 750 to 22,500 volts (see General Order 95 of the
California Public Utilities Commission for voltage clearance distance minimums).
SCOPE OF WORK
2015 POWERR LLIINE CLEARING PROJECT
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
Page 30 of 46
3. Vegetation shall be kept one (1) foot away, radially, from fiber optic and
communication cables. Contractor shall receive approval from the Project Manager before cutting limbs greater than three (3) inches in diameter.
E. Trees underneath the conductors shall be line cleared by the drop crotch pruning method
to laterals or buds growing away from the conductor (Drawing A3). Trees adjacent to the conductors shall be side trimmed back to suitable laterals or buds (Drawing A5).
Exceptions to the above are as follows:
1. Oak trees shall be “channeled” or “tunneled” without spoiling the natural characteristics of the tree (Drawing A4).
F. Young trees growing into the hazard zone for the first time shall be pruned to reduce
the entire canopy using thinning cuts (drop crotch method). The tree height can then be maintained below the hazard distance.
G. Lateral or directional pruning shall be done in a manner to conserve as much foliage as
possible on limbs newly exposed to the sun so as to reduce sunscald injury. Limbs growing laterally below secondary lines shall not be cut except for branches and sprouts
growing vertically towards the conductors.
H. Electrical service drops shall be line cleared only when vegetation is putting a noticeable strain or abrasion on the line, or as required by the Project Manager.
I. Utility poles shall be kept free of vines and other vegetation that limits access by electrical personnel. Span guy wires shall be kept free of vegetation between the pole and the insulator; down guy wires shall be kept free of vegetation above the insulator.
J. Guy guards shall be installed on down guys and span guys as required by the Project
Manager.
3.3 GENERAL PRUNING SPECIFICATIONS
A. General pruning specifications shall apply to all pruning work on City trees.
B. Trim all dead, dying, diseased, decayed, or decaying, and obviously weak branches and
stubs which are one inch (1”) in diameter or greater.
C. Limbs that are too heavy to safely support their own weight, whether due to their length,
diameter, a weak crotch or structural defect, shall be lightened by thinning the end weight or heading back the ends. Where possible, thinning is preferred over heading back.
Conserve inner foliage as much as possible by thinning and shortening.
D. Final tree pruning cuts shall be made outside of the Branch Bark Ridge and outside of the Branch Collar. Flush cuts shall not be made.
E. Tree limbs shall be removed and controlled in such a manner as to cause no damage or
injury to people, animals, property, other parts of the tree, or other plants. F. The Contractor shall reference ANSI A300 standards, or the most current revision, for any pruning practices not mentioned.
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
Page 31 of 46
G. Trim all trees so the natural form and shape of the tree is maintained. Under no
circumstance(s) shall the total pruning exceed 25% of the tree’s crown.
H. Trim to reduce or eliminate crossing, and/or rubbing branches greater than two inches
(2”) in diameter to improve the structure and symmetry of the canopy.
I. Final cuts six (6) inches or greater in diameter must be approved by the Project Manager. J. Structural defects, including weak crotches, splits, cracks, broken cables and decayed cavities, observed in a tree shall be reported to the City’s Inspector or Project Manager prior to pruning work.
K. No person working in trees shall use shoes with spikes, spurs, or climbing irons, or any other footwear which will injure the tree.
L. Clearance of foliage shall be as follows:
1. Clearance over traffic lanes and bike lanes shall be a minimum of fourteen (14)
feet above pavement level.
2. Clearance over private property shall be a minimum of ten (10) feet above ground level. Clearance from structures shall be a minimum of ten (10) feet,
vertical and horizontal.
3. Clearance from street lights shall conform to Drawing A6. Clearance from traffic signals, traffic signs and stop signs shall provide adequate sight line distances to
the signals or signs. Trim all branches that may interfere with illumination of a streetlight so that the light may specifically shine onto the street.
M. Pruning specifications for selected species (General Specifications A-N shall apply as
well):
1. Liquidambar - Reduce end weight of side limbs by shortening them back to significant laterals. These pruning cuts shall not exceed three (3) inches in
diameter. Superfluous leaders shall be removed or suppressed by heading back.
2. Sycamore - Heavy, long horizontal branches shall be headed back to a suitable lateral to prevent excessive end weights from growing. Crossing branches or
areas of tangled foliage shall be thinned using small pruning cuts.
3. Broadleaf Evergreen (Magnolia, Live Oak, Holly Oak, Camphor) - The canopy shall remain closed to shade the interior of the tree. Excessive vertical suckers
shall be removed unless doing so will result in excessive sun exposure. Some heading or thinning may be necessary where end weights are too heavy.
4. Chinese Elm - Lighten heavy end weights and raise canopy by shortening ends back to significant laterals. Conserve inner foliage as much as possible. 5. Eucalyptus - Reduce heavy end weights by shortening ends back to significant laterals. Remove weakly attached sucker growth.
Page 34 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
N. Structural pruning of young trees shall conform to the section on training young trees in the
International Society of Arboriculture Best Management Practices – Tree Pruning (2008). O. Ivy growing on trunks of City trees shall be removed to ground level and one (1) foot laterally from the trunk at ground level. Cutting shall be done with hand tools and shall not damage the tree trunk.
3.04
A.
DEBRIS DISPOSAL
Contractor shall comply with all Federal, State and County regulations for pests,
including, but not limited to, Sudden Oak Death (SOD) and Light Brown Apple Moth.
Contractor shall follow the Sudden Oak Death Guidelines for Arborists (California Oak Mortality Task Force, 2008) when working in SOD areas in order to limit the spread of this disease.
B. Chippers shall only be run at 15-20 minute intervals. To minimize offensive noise,
chippers shall not be run continuously.
C. The work shall include removal and disposal of brush and debris generated by said work.
Debris resulting from line clearing work shall be sorted as chips and wood, and shall be removed from the work site daily. Chips and wood free of trash shall be disposed of at
the City of Palo Alto’s Municipal Service Department, located at 3201 East Bayshore Road. The Contractor will be supplied with free passes for this purpose by the Project
Manager. All waste material regulations will apply to debris deposited by the Contractor. The City reserves the right to decline debris disposal at this location for any reason
throughout this contract, and will assist the Contractor with alternate waste material area and chip dump locations whenever possible. If an alternate location cannot be identified,
waste material shall be disposed of at the Contractor’s expense at a location approved by the City. The City shall reimburse the Contractor based on Waste Disposal based on
actual weight tag of loads taken to the processing facilities including the name of business, location/address, weight of load and cost paid. The Contractor shall submit to the City
every month a spreadsheet/report showing the details of the loads taken to the processing facility.
D. Unchipped wood shall be cut into sections not to exceed eighteen (18) inches in any
dimension and shall be disposed of as follows:
1. Wood requested by the resident shall be neatly stacked on the resident's property.
2. Wood and debris not accepted by the City, such as palm fronds, trunk pieces, elm wood,
ivy and other debris shall be disposed of appropriately at a City approved location by the Contractor.
3.5 PEST CONTROL – Bee and Pest Control/Extermination
A. The Contractor shall notify the City verbally either by phone or two-way communication, and follow-up in writing, of a bee or wasp problem prior the Contractor performing the services as required by
the work order. Then City will then proceed with arranging safe removal of any bee or wasp hive. Under no circumstances shall the Contractor attempt to remove or dispose of an active bee or
wasp hive. Once the hive has been removed, the City will re- issue the work order, and the Contractor shall confirm receipt of the re-issued work order within 24 hours of notification being
sent. Confirmation may be via email, fax, or phone. The Contractor then has five (5) working days to begin services as described in the work order.
END OF SECTION
Page 35 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
DRAWING A1
Page 36 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
DRAWING A2
Page 37 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
DRAWING A3
Page 38 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
DRAWING A4
Page 39 of 46
SCOPE OF WORK
2015 POWER LINE CLEARING PROJECT
DRAWING A5
DRAWING A6
Page 40 of 40
C15157041 8 Rev. July 11, 2011
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services according to the daily work orders in schedules as provided by
City of Palo Alto.
C15157041 9 Rev. July 11, 2011
EXHIBIT C
SCHEDULE OF FEES
Compensation based upon fee schedule
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of
compensation to be paid to Contractor, including both payment for services and reimbursable expenses,
shall not exceed Six Million Four Hundred Sixty Thousand Nine Hundred Five Dollars ($6,460,905.00).
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.
Yearly Bid Totals Total Price
YEAR 1 Total – (Items 01 – 14) $1,209,406.39
YEAR 2 Total – 1st Optional 12‐month extension (Items 01 – 14) $1,255,196.33
YEAR 3 Total – 2nd Optional 12‐month extension (Items 01 – 14) $1,292,904.09
YEAR 4 Total – 3rd Optional 12‐month extension (Items 01 – 14) $1,331,670.53
YEAR 5 Total – 4th Optional 12‐month extension (Items 01 – 14) $1,371,728.10
Grand Total Price for All 5 Years $6,460,905.44
DETAILED RATE SCHEDULE FOLLOWING PAGES…
C15157041 10 Rev. July 11, 2011
RATE SCHEDULE
ITEM
QUANTITIES PER
YEAR
U/M
DESCRIPTION
RATE
TOTAL PRICE
01 3,800 TREES
EA Unit Cost Line Clearing $63.50 $241,300.00
02
9 POLES EA Unit Cost Pole Clearing $45.96 $413.64
03 5 POLES EA Unit Cost Pole Clearing and Spraying $48.13 $240.65
04 6,700
HR
Hourly Cost
Line Clearing
2-person crew
2‐person Crew + equipment & tools $123.57
$827,919.00
05 20 HR 2‐person Crew Overtime $173.00 $3,460.00
06 320 HR Hourly Cost
Line Clearing
3-person crew
3‐person Crew + equip. & tools
(rate =2‐person Crew x 1.25)$154.48 $49,433.60
07 4 HR 3‐person Crew Overtime $216.25 $865.00
08
450
HR
Hourly Cost
Line Clearing
1-person crew
1‐person Crew + equip. & tools
(rate = 2‐person Crew / 2)
$61.79
$27,805.50
09 4
HR 1‐person Crew Overtime $86.50 $346.00
10
16
HR
Emergency
Response Rates
(as needed)
2‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$173.00
$2,768.00
11
16
HR
3‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$216.25
$3,460.00
12
16
HR
1‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$86.50
$1,384.00
13 200 HR
Special Equipment
(as needed)
70‐foot Aerial Lift Truck +
2‐person crew
$144.36 $28,872.00
14 100 HR 100‐foot Aerial Lift Truck +
2‐person crew
$211.39 $21,139.00
Total, items 01 through 14:
(Total in words One million two hundred and nine thousand four hundred six and thirty nine cents)
$1,209,406.39
C15157041 11 Rev. July 11, 2011
First Optional Twelve (12) Month Extension Price Escalation
ITEM
QUANTITIES PER
YEAR
U/M
DESCRIPTION & BID ITEM
RATE
TOTAL PRICE
01 3,800 TREES
EA Unit Cost Line Clearing $65.40 $248,520.00
02
9 POLES EA Unit Cost Pole Clearing $47.81 $430.29
03 5 POLES EA Unit Cost Pole Clearing and Spraying $50.08 $250.40
04 6,700
HR
Hourly Cost
Line Clearing
2-person crew
2‐person Crew + equipment & tools $128.56
$861,352.00
05 20 HR 2‐person Crew Overtime $179.99 $3,599.80
06 320 HR Hourly Cost
Line Clearing
3-person crew
3‐person Crew + equip. & tools
(rate =2‐person Crew x 1.25)$160.71 $51,427.20
07 4 HR 3‐person Crew Overtime $224.99 $899.96
08
450
HR
Hourly Cost
Line Clearing
1-person crew
1‐person Crew + equip. & tools
(rate = 2‐person Crew / 2)
$64.28
$28,926.00
09 4
HR 1‐person Crew Overtime $90.00 $360.00
10
16
HR
Emergency
Response Rates
(as needed)
2‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$179.99
$2,879.84
11
16
HR
3‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$224.99
$3,599.84
12
16
HR
1‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$90.00
$1,440.00
13 200 HR
Special Equipment
(as needed)
70‐foot Aerial Lift Truck +
2‐person crew
$148.69 $29,738.00
14 100 HR 100‐foot Aerial Lift Truck +
2‐person crew
$217.73 $21,773.00
Total, items 01 through 14:
(Total in words: One million two hundred fifty five thousand one hundred ninety six and thirty three
cents)
$1,255,196.33
C15157041 12 Rev. July 11, 2011
Second Optional Twelve (12) Month Extension Price Escalation
ITEM
QUANTITIES PER
YEAR
U/M
DESCRIPTION & BID ITEM
RATE
TOTAL PRICE
01 3,800 TREES
EA Unit Cost Line Clearing $67.36 $256,006.00
02
9 POLES EA Unit Cost Pole Clearing $49.25 $443.25
03 5 POLES EA Unit Cost Pole Clearing and Spraying $51.58 $257.90
04 6,700
HR
Hourly Cost
Line Clearing
2-person crew
2‐person Crew + equipment & tools $132.42
$887,214.00
05 20 HR 2‐person Crew Overtime $185.39 $3,707.80
06 320 HR Hourly Cost
Line Clearing
3-person crew
3‐person Crew + equip. & tools
(rate =2‐person Crew x 1.25)$165.53 $52,969.60
07 4 HR 3‐person Crew Overtime $231.74 $926.96
08
450
HR
Hourly Cost
Line Clearing
1-person crew
1‐person Crew + equip. & tools
(rate = 2‐person Crew / 2)
$66.21
$29,794.50
09 4
HR 1‐person Crew Overtime $92.70 $370.80
10
16
HR
Emergency
Response Rates
(as needed)
2‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$185.39
$2,966.24
11
16
HR
3‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$231.74
$3,707.84
12
16
HR
1‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$92.70
$1,483.20
13 200 HR
Special Equipment
(as needed)
70‐foot Aerial Lift Truck +
2‐person crew
$153.15 $30,630.00
14 100 HR 100‐foot Aerial Lift Truck +
2‐person crew
$224.26 $22,426.00
Total, items 01 through 14:
(Total in words: One million two hundred ninety two thousand nine hundred four and nine cents _)
$1,292,904.09
C15157041 13 Rev. July 11, 2011
Third Optional Twelve (12) Month Extension Price Escalation
ITEM
QUANTITIES PER
YEAR
U/M
DESCRIPTION & BID ITEM
RATE
TOTAL PRICE
01 3,800 TREES
EA Unit Cost Line Clearing $69.39 $263,682.00
02
9 POLES EA Unit Cost Pole Clearing $50.72 $456.48
03 5 POLES EA Unit Cost Pole Clearing and Spraying $53.13 $265.65
04 6,700
HR
Hourly Cost
Line Clearing
2-person crew
2‐person Crew + equipment & tools $136.39
$913,813.00
05 20 HR 2‐person Crew Overtime $190.95 $3,819.00
06 320 HR Hourly Cost
Line Clearing
3-person crew
3‐person Crew + equip. & tools
(rate =2‐person Crew x 1.25)$170.49 $54,556.80
07 4 HR 3‐person Crew Overtime $238.69 $954.76
08
450
HR
Hourly Cost
Line Clearing
1-person crew
1‐person Crew + equip. & tools
(rate = 2‐person Crew / 2)
$68.20
$30,690.00
09 4
HR 1‐person Crew Overtime $95.48 $381.92
10
16
HR
Emergency
Response Rates
(as needed)
2‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$190.95
$3,055.20
11
16
HR
3‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$238.69
$3,819.04
12
16
HR
1‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$95.48
$1,527.68
13 200 HR
Special Equipment
(as needed)
70‐foot Aerial Lift Truck +
2‐person crew
$157.75 $31,550.00
14 100 HR 100‐foot Aerial Lift Truck +
2‐person crew
$230.99 $23,099.00
Total, items 01 through 14:
(Total in words: One million three hundred thirty one thousand six hundred seventy and fifty three
cents)
$1,331,670.53
C15157041 14 Rev. July 11, 2011
Fourth Optional Twelve (12) Month Extension Price Escalation
ITEM
QUANTITIES PER
YEAR
U/M
DESCRIPTION & BID ITEM
RATE
TOTAL PRICE
01 3,800 TREES
EA Unit Cost Line Clearing $71.47 $271,586.00
02
9 POLES EA Unit Cost Pole Clearing $52.25 $470.25
03 5 POLES EA Unit Cost Pole Clearing and Spraying $54.72 $273.60
04 6,700
HR
Hourly Cost
Line Clearing
2-person crew
2‐person Crew + equipment & tools $140.49
$941,283.00
05 20 HR 2‐person Crew Overtime $196.68 $3,933.60
06 320 HR Hourly Cost
Line Clearing
3-person crew
3‐person Crew + equip. & tools
(rate =2‐person Crew x 1.25)$175.61 $56,195.20
07 4 HR 3‐person Crew Overtime $245.85 $983.40
08
450
HR
Hourly Cost
Line Clearing
1-person crew
1‐person Crew + equip. & tools
(rate = 2‐person Crew / 2)
$70.24
$31,608.00
09 4
HR 1‐person Crew Overtime $98.34 $393.36
10
16
HR
Emergency
Response Rates
(as needed)
2‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$196.68
$3,146.88
11
16
HR
3‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$245.85
$3,993.60
12
16
HR
1‐person crew Monday –Friday
after hours and all‐day on
weekends/holidays
$98.34
$1,573.44
13 200 HR
Special Equipment
(as needed)
70‐foot Aerial Lift Truck +
2‐person crew
$162.48 $32,496.00
14 100 HR 100‐foot Aerial Lift Truck +
2‐person crew
$237.92 $23,792.00
Total, items 01 through 14:
(Total in words: One million three hundred seventy one thousand seven hundred twenty eight and ten
cents)
$1,371,728.10
C15157041 10 Rev. July 11, 2011
EXHIBIT D
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM
OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE
SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR
HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF
CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED,
BELOW:
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
NO
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT
ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND
EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE
INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND
ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS
ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE
IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE
FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.
II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO
“ADDITIONAL INSUREDS”
C15157041 11 Rev. July 11, 2011
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS,
SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY
REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING
COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-
PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
BID SUMMARY
DESCRIPTION: City of Palo Alto 2015 Power Line Clearing
RFQ No: 157041
Bid Opening Date: 12/30/2014
List of Bidders YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 GRAND TOTAL
(Company Name)
West Coast Arborists $1,297,010.00 $1,297,010.00 $1,350,844.00 $1,350,844.00 $1,404,678.00 $6,700,386.00
Davey Tree Surgery Company $1,275,654.54 $1,304,288.16 $1,332,810.02 $1,362,298.70 $1,392,638.62 $6,667,690.04
Utility Tree Service, Inc.$1,209,406.39 $1,255,196.33 $1,292,904.09 $1,331,670.53 $1,371,728.10 $6,460,905.44
Wright Tree Service $1,287,941.24 $1,319,096.02 $1,348,764.33 $1,379,426.85 $1,413,674.67 $6,748,903.11
Attachment B
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
February 23, 2015
The Honorable City Council
Palo Alto, California
Appointment of 2015 Emergency Standby Council
Staff recommends that the City Council approve the selection of the 2015
Emergency Standby Council as follows:
-Bern Beecham
-Peter Drekmeier
-Sid Espinosa
-Yoriko Kishimoto
-Larry Klein
-Jean McCown
-Lanie Wheeler
BACKGROUND
The Charter of the City of Palo Alto provides that "the Council may by Ordinance or
Resolution, provide for the preservation and continuation of government in the event
of disaster which renders unavailable a majority of the Council."
On August 7, 2006, the City Council adopted amendments to Section 2.12.090 of
the Palo Alto Municipal Code regarding the selection procedure for the City's
Emergency Standby Council. The adopted policy states that the Council shall
consider the following criteria for appointments to the Emergency Standby Council:
residency in the City of Palo Alto, availability, interest in serving and a lack of
conflicts of interest.
Seven members serve on the Emergency Standby Council. Members of the Standby
Council have the authority delegated to them under Chapter 2.12 of the Palo Alto
Municipal Code. The members of the Emergency Standby Council continue to
serve until the Council appoints or reappoints the members at the beginning of each
year.
Department Head: Beth Minor, Acting City Clerk
Page 2
City of Palo Alto (ID # 5561)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Interim Appointment of Chief Transportation Official
Title: Adoption of a Resolution Approving Interim Appointment of James
Lightbody to Chief Transportation Official Position Pursuant to Government
Code Section 21221(h)
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that Council adopt the attached resolution appointing James Lightbody to a
single interim appointment as Chief Transportation Official to end no later than August 31,
2015.
Executive Summary
The City’s Chief Transportation Official recently resigned and the Department of Planning and
Community Environment requires an interim official to perform some of the work of that
position for a limited term while the City completes an executive search for a permanent Chief
Transportation Official. The Department has located an individual, James Lightbody, who is
qualified and willing to serve in the position on an interim basis. Mr. Lightbody worked for the
VTA for more than thirty years and is a CalPERS retiree. The City must adopt the attached
resolution to hire Mr. Lightbody because CalPERS rules require City Council approval to hire a
retiree on an interim basis to fill a vacant position.
Background
CalPERS rules generally prohibit hiring retired annuitants into permanent or regular staff
positions without reinstatement from retirement. However, section 21221(h) of the
Government Code provides a limited exception to allow a retiree to serve without
reinstatement from retirement for a single interim appointment to a vacant managerial,
executive or other unique position. The City Council is required to approve such interim
appointments and make specific findings of a need to hire the retiree.
The Chief Transportation Official (“CTO”) position has been vacant since February 6, 2015. The
CTO position is a top-level management position responsible for overseeing all of the City’s
traffic engineering and transportation planning efforts, and requires someone with significant
City of Palo Alto Page 2
skills and experience in a broad range of transportation issues. Staff recently hired an executive
recruiter to assist in filling this important vacancy, but anticipates that it will take up to six
months to hire a qualified permanent employee. Due to the number of important ongoing
projects in the Transportation Division, staff believes it is critical to hire an interim employee for
the term of the recruitment and has identified James Lightbody, who is a CalPERS retiree, as a
suitable candidate.
Discussion
The City has made a conscious effort in the last few years, consistent with CalPERS rules, to
limit hiring CalPERS retirees. However, a limited number of staffing situations require the
expertise of a retiree to efficiently and effectively perform limited duration work. In this case,
the CTO position is a key management level position in the City’s Planning Department that is
responsible for overseeing a number of high profile transportation projects and initiatives
throughout the City. It requires significant expertise and experience in traffic engineering and
transportation planning. The City has hired an executive recruiter to assist in filling this
specialized vacancy.
Mr. Lightbody’s interim appointment to the vacant CTO position meets the CalPERS
requirements (Government Code section 21221(h)) for hiring a retired annuitant for the
following reasons:
The CTO is a key management-level position that requires specialized skills and
experience in traffic engineering and transportation planning
The CTO position is currently vacant
There is an open recruitment to permanently fill the vacancy being conducted by an
executive recruiter because there is a limited pool of experienced transportation
experts
The Planning Department needs an interim CTO to maintain continuity and momentum
on several important projects, including but not limited to the bicycle boulevard project
and several transportation-related capital improvement projects
Mr. Lightbody has over 40 years of previous experience working on transportation
projects for public agencies in California (Resume included as Attachment C)
This will be a single interim appointment only for the duration of the recruitment to fill
the permanent position, and will not continue beyond August 31, 2015
Mr. Lightbody will work approximately 25-30 hours per week, not to exceed 960 hours
per fiscal year
Mr. Lightbody will be paid $80.52 per hour, which is within the published pay range for
the CTO postion
Mr. Lightbody will not receive any other form of compensation, benefits, or incentives
Resource Impact
The is no new resource impact as funding for this interim appointment will be covered by salary
savings from the vacancy. Consistent with CalPERS rules, Mr. Lightbody will be paid within the
published salary range for the Chief Transportaiton Official and will receive no other
City of Palo Alto Page 3
compensation or benefits for his services.
Policy Implications
Adoption of this resolution complies with CalPERS requirements for rehiring retirees.
Environmental Review
This appointment is not considered a project subject to review under the California
Environmental Quality Act.
Attachments:
Attachment: O83 RESO GC 21221h Interim Appointment of Retiree-Lightbody (DOCX)
Attachment: 082 LTR AGT Lightbody Interim CTO-Retiree Offer (DOCX)
Attachment: 082 James Lightbody Resume for Palo Alto (DOC)
February 10, 2015
Via email (lightbody@yahoo.com)
Mr. James Lightbody
RE: Letter Agreement Confirming Interim Chief Transportation Official Appointment
Dear Jim:
As you discussed with the Planning Director, due to vacancies in the City of Palo Alto’s key position of
Chief Transportation Official (“CTO”) and other management positions in the Planning and Community
Environment Department, as well as important ongoing projects in the Transportation Division, the City
has a temporary need for someone to serve as an Interim Chief Transportation Official during the
recruitment to permanently fill the CTO vacancy. Specific responsibilities and current projects for the
CTO include but are not limited to prioritizing work within the Transportation Division, responding to
community questions and requests related to transportation needs and projects, ensuring continued
momentum in the community engagement and planning work related to bicycle boulevards and
managing all staff and consultants working on that project, and monitoring ongoing CIP projects in the
Transportation Division to ensure that they stay on schedule and budget. Based on your extensive skills
and over 40 years of experience with a variety of transportation projects and issues at VTA, we believe
you are uniquely qualified to fill this role on an interim basis.
The City would like you to work twenty five (25) to thirty (30) hours per week beginning on February 24,
2015. The City has hired an executive recruiter to help fill the vacancy, and your interim assignment will
continue for the duration of that recruitment but end no later than August 31, 2015. Your rate of pay
will be $80.52 per hour, consistent with the City’s published hourly maximum rate for the Chief
Transportation Official. You will not be eligible for any other benefits, incentives, compensation in lieu of
benefits, or other forms of compensation.
Please be aware that CalPERS enforces strict rules related to working after retirement. Because this is an
interim appointment to a vacant position for the duration of the recruitment, the City Council will be
approving the appointment by resolution at a public meeting. As a CalPERS retiree, work for all PERS
agencies is limited to 960 hours per fiscal year. You have informed us that you have not worked for any
other PERS agencies in the current fiscal year and that you have not received any unemployment
insurance payments in the past twelve months for previous retired annuitant work with any CalPERS
employer. You agree that your work for Palo Alto will be your priority, that you will keep the City
informed on the number of hours you are working for other PERS agencies, and that you will indemnify
and hold harmless the City from any and all claims, allegations or other actions related to your
compliance with PERS rules for retired annuitants. For a discussion of other CalPERS rules related to
work by retired annuitants, you may want to review the CalPERS publication “A Guide to CalPERS
Employment After Retirement,” available online at http://www.calpers.ca.gov/eip-
docs/about/pubs/member/employment-after-retire.pdf. Please contact CalPERS or the City immediately
if you have any questions or concerns to discuss related to your work for the City.
If the terms of this letter agreement are satisfactory to you, please sign below indicating your
agreement. Thank you again for agreeing to assist the City.
Sincerely,
/s/
Melissa C. Tronquet
Employee Relations Manager
Agreed:
__________________________ ________________
James Lightbody Date
James R. Lightbody, PE
Jim Lightbody has extensive experience working in transportation and community development. He is a nationally
recognized expert in the planning, design, and operation of multi-modal transit systems, and in funding strategies and
transit-oriented development. Mr. Lightbody specializes in transportation corridor studies and alternatives analysis, Bus
Rapid Transit, urban planning and development, transit operations, and commuter rail. He has recent experience as a
Senior Consulting Manager for AECOM and previously served for 33 years as a senior manager with the Santa Clara Valley
Transportation Authority (VTA), most recently as Deputy Director for Planning and Development.
Education:
MS/Civil Engineering, Stanford University, Palo Alto, CA 1969
BS/Civil Engineering, Santa Clara University, CA 1967
Registration: Registered Civil Engineer, California 1972
Affiliations: American Planning Association; American Society of Civil Engineers; American Public Transit Association,
SPUR, Silicon Valley Bicycle Coalition, Transportation Research Board, Association for Commuter Transportation
Project Experience
James Lightbody Consulting
Project Management, City of Mountain View: Management of Shoreline Blvd. Transportation Corridor Study and other
assistance related to the North Bayshore transportation plan.
Bus Rapid Transit (BRT) Training Course, National Transit Institute (NTI) - Lead instructor and course developer:
This two-day training course provides in-depth instruction on BRT elements, planning and performance.
AECOM
Shoreline Transportation Study, City of Mountain View: Project Manager for study that developed transportation
strategies addressing the growth in commute trips for the North Bayshore area of Mountain View.
California High Speed Rail: Task leader for traffic and transportation elements of the project in the Merced to Fresno and
San Francisco to San Jose segments.
Scottsdale Road Alternatives Analysis, Arizona: Task Leader for BRT corridor serving Scottsdale, Tempe and Arizona
State University.
West Salt Lake County Transit Study: Transit planning lead for study developing new long range transit service plan for
West Salt Lake County, linked to development & land use plans for the area.
Provo / Orem Bus Rapid Transit AA/DEIS, Utah: Deputy Project Manager for 9 mile BRT corridor serving BYU and
planned commuter rail service.
University Towne Centre Transit Center, San Diego, California: Project Manager for the conceptual development of
Transit Center alternatives to be integrated into a major expansion of the Westfield operated retail center.
Centre City Loop Analysis, San Diego, California: Project Manager for evaluation of alternative operating scenarios for
San Diego Trolley (light rail) service in downtown.
Santa Clara County Valley Transportation Authority (VTA), Santa Clara County, CA: Deputy Director for Planning and
Development - Directed transportation planning projects in Santa Clara County, including long-range master plans, major
investment studies and corridor plans (rail and BRT) and station area transit/land use plans. These planning activities
included extensive consensus-building and community outreach components. He also managed other transportation
studies, including bus plans and public opinion research. As Deputy Director, he managed the environmental and real
estate departments. His responsibilities at VTA also included management of federal and state grant programs and the
programming of capital projects. Earlier, as Manager of Transit Service Development, he designed and implemented bus
services, overseeing a major expansion of service.
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
February 23, 2015
The Honorable City Council
Palo Alto, California
Approval to Cast Ballot for Council Member Liz Kniss for Vice
President of the Peninsula Division Executive Committee of the League
of California Cities
The election of the Vice President of the Peninsula Division Executive Committee of the League
of California Cities will be held on Thursday, February 26, 2015 at the Division’s Quarterly
Dinner meeting at Michael’s at Shoreline in Mountain View.
The candidates for the 2015 Peninsula Division Vice President Executive Committee of the
Peninsula Division are listed below. Each City is allowed to vote for one candidate.
Vice President:
Jim Davis, Council Member, City of Sunnyvale
Liz Kniss, Council Member, City of Palo Alto
Emily Lo, Council Member, City of Saratoga
RECOMMENDATION:
Staff recommends that Council cast their vote for Council Member Kniss for the Vice President
of the Peninsula Division Executive Committee of the League of California Cities. Additionally,
direct the City Clerk to complete the ballot and fax it to Jessica Stanfill Mullin on February 24,
2015.
ATTACHMENTS:
Attachment: A: Division Letter (PDF)
Attachment: B: 2015 Peninsula Division Vice President Candidate Biographies (PDF)
Attachment: C: Peninsula Division 2014-15 Executive Committee - Vice President Ballot
(PDF)
Department Head: Beth Minor, Acting City Clerk
Page 2
1
Minor, Beth
From:Jessica Stanfill Mullin <jstanfill@cacities.org>
Sent:Thursday, January 29, 2015 2:32 PM
To:Jessica Stanfill Mullin
Subject:Peninsula Division Executive Committee Vice President Election - Ballot and Candidate
Biographies
Attachments:Peninsula Division 2014-15 Executive Committee - Vice President Ballot.pdf; 2015
Peninsula Division Vice President Candidate Biographies.pdf
Follow Up Flag:Follow up
Flag Status:Flagged
Dear Peninsula Division Mayors and Councilmembers, City Managers and City Clerks,
The election for the Vice President of the Peninsula Division Executive Committee of the League of California Cities will
be held on Thursday, February 26, 2015 at the Division’s Quarterly Dinner meeting at Michael’s at Shoreline in Mountain
View. The Peninsula Division Nominating Committee ‐ Division President and Menlo Park Councilmember Kirsten Keith,
League Past President and Mountain View Councilmember Mike Kasperzak, and Division Past President and Redwood
City Councilmember Barbara Pierce – submit the 2015 Peninsula Division Executive Committee Vice President ballot
attached to this email. Enclosed below is a list of the candidates running for the position and the biographies of each
candidate are attached for your consideration.
Ballots will be mailed to the Division's Mayors this week. Cities are entitled to one vote for the Vice President position.
Ballots should be mailed back to Jessica Stanfill Mullin by Tuesday, February 24th or can be delivered in person at the
Division Quarterly Dinner meeting on Thursday, February 26th. Please mail the ballots to the following address: PO
Box 5630, South San Francisco, CA 94080. All ballots will be opened and tabulated at the Division Quarterly Dinner
meeting.
Peninsula Division 2015 Executive Committee Vice President Candidates:
Jim Davis, Council Member, City of Sunnyvale
Liz Kniss, Council Member, City of Palo Alto
Emily Lo, Council Member, City of Saratoga
Please let me know if you have any questions and thank you for your time and consideration.
Best,
Jessica Stanfill Mullin
Regional Public Affairs Manager
Peninsula Division, League of California Cities
(650) 238‐4111
jstanfill@cacities.org
Like us on Facebook
Follow us on Twitter @LCCPenDiv
Candidates’ Biographies for Vice President for the
League of California Cities Peninsula Division Executive Committee
Candidate: Jim Davis, Council Member, City of Sunnyvale
Position: Vice President
Application Statement: I am currently serving my second year as Director at
Large for the Peninsula Division of the California League of Cities. I also serve on
the League’s Public Safety Policy Committee. I have previously served on the Helen Putman
Award Committee and the 2012 Conference Committee. Above and beyond that I serve on the
National League of Cities Crime Prevention Steering Committee. Last year I served as the
Chairman of the National League of Cities Large Cities Council. I have had a long career in the
advancement of legislative process. I served on the Board of Director and was a legislative
advocate for the Peace Officers Research Association for 25 years. I am very familiar with the
legislative process and how to be affective the legislative process on both a state and local
level. I am currently retired and have time to dedicate myself to the interest of the League of
California Cities and in particular to the Peninsula Division.
Council Member Jim Davis - Biography
Education
Associate of Science Degree, Administration of Justice, West Valley Community College
(1970 – 1973)
Bachelor of Science, Political Science, Minor Psychology San Jose State University
(1973- 1975)
Professional Experience
City Council Member City of Sunnyvale (January 2012 - Present)
Sunnyvale Public Safety Officer (July 1986 – October 2011)
San Jose Law Enforcement (October 1975 – July 1986)
Professional Organizations
California Narcotic Officers Association (19876 – Present)
Peace Officers Research Association of California (1975 – 2011)
Member, California Gang Investigators Association (Present)
Member, Central Coast Gang Investigators Association (Present)
Member, Sunnyvale Public Safety Officers Association (Present)
Community Service
Regional Advisor, Cali Nev Ha Key Club (2006 – Present)
Instructor, Parent Project (2008 – Present)
Advisor, Homestead High School Key Club (2001 – Present)
Advisor, Sunnyvale Middle School Builders Club (2003 – Present)
Chairman, Sunnyvale Pet Parade (2010)
Member, Mayor's Reading by Third Grade Committee (2008)
Sunnyvale Basketball Shoot-Off Program (2006 – 2011)
Sunnyvale Charter Review Committee (1991)
Memberships
Silicon Valley Kiwanis (1999 – Present)
Cops Care Cancer (2006 – Present)
Sunnyvale Challenge Team (Present)
Mt. View Challenge Team (Present)
Commendation and Awards
Advisor of the Year, Cali Nev Ha Key Club 2011
Recognition of Service, SNAIL Neighborhood Association (2011)
Public Safety Officer of the Year (2009)
Certificate of Excellence, Sunnyvale Middle School (2009)
Distinguished Service Award, Cal Nev Ha Kiwanis (2008)
Distinguished Service, Vargas Elementary School (2006 – 2008)
Ellis Elementary School Recognition of Service (2008 & 2009)
Sunnyvale Volunteer of the Year Award (2005)
California State Senate Recognition of Public Service (2005)
California State Assembly Recognition of Public Service (2005)
Santa Clara County Board of Supervisors Recognition of Public Service (2005)
Kiwanis Member of the Year (2003)
Alan J. Garcia Leadership Award (2001)
Who's Who Leadership Recognition (1994)
Inter Governmental Assignments
Representative to Association of Bay Area Governments
Commissioner County Expressway Planning Advisory Board
Member Grand Boulevard Task Force
Member Moffett Field Restoration Advisory Board
Commissioner County Emergency Operations Council
Member Valley Transpiration Authority Policy Advisory Board
Member Cal train Modernization Project Advisory Group
Alternate to Silicon Valley Regional Interoperability Authority
Chairman National League of Cities Large Cities Council
Member National League of Cities Public Safety Policy Board
Member California Leagues of Cities Public Safety Policy Board.
Candidate: Liz Kniss, Council Member, City of Palo Alto
Position: Vice President
Application Statement: I have lived and worked in Palo Alto and in Santa
Clara County for many years, and have served in public office since 1985.
As a school board member, City Council member and Supervisor in Santa
Clara County, I have been involved with each governing body’s professional organization and
have served in leadership on Palo Alto School Board, Palo Alto City Council and Santa Clara
County Board of Supervisors, as well as many committees. (C V attached) I was Vice Mayor of
the Palo Alto City Council in 2014. I have recently been appointed to the Employee Relations
committee after being back on the PACC since 2013.
While on the City Council previously I was active in both the Peninsula League and in the League
of California Cities. I am particularly interested in the “voice” that the League can have in
Sacramento, and in Washington. We must establish good long term relationships with our
elected officials on the Peninsula and Bay Area, and with longer terms for office in the
California State legislature, we can work toward our League goals over a greatly increased
period of time. Our relationships make us stronger and bring greater influence in decision
making at that level.
While I was on the Board of Supervisors, I chaired the Legislative Committee for six years, and
oversaw both our state and federal advocates, following the budgets, the bills, and the trends
in public spending. I interacted with both our state lobbyists and the federal law firm who
represented and advocated for us in Washington. We frequently visited Sacramento and DC to
visit with our elected officials to work with them and their staff on issues important to our
communities.
Also, I have participated in the Bocce Ball tournament.
Thank you!
Liz Kniss
Council Member Liz Kniss – Biography
Education
BS, PHN, Simmons College, Boston, MA
MPA, Public Administration and Health Care Policy, Cal State University
Graduate work in Health Policy and Economics, UC Berkeley
Professional Experience
Manager, Marketing and Communications, Sun Microsystems Laboratories
Director, Stanford Friends of Nursing, Stanford University Hospital
Public Health Nurse, San Mateo County
Public Health Nurse, Grant Writer, Cupertino Union School District
Registered Nurse, various hospitals
Public Service – Elected
2013 – Present: Palo Alto City Council Member, Vice Mayor 2014 (see pg 3)
2001 - 2012: Santa Clara County Board of Supervisors, President 2005 and 2009
1989 - 2000: Palo Alto City Council, Council Member, Mayor 1994 and 2000
1985 - 1989: Palo Alto School Board, Member, President 1988
Palo Alto City Council- 2013-15
Elected in November 2012 (Returning after 3 terms on Board of Supervisors*)
January - 2014, Elected Vice Mayor,
Policy Committee – 2013 Chair
Finance Committee- 2014
LCC/ Peninsula Division- Employee Relations Committee -current
Bay Area Air Quality Management District, -Reappointed Feb. 2013
Secretary, Jan 2015 (leads to Chair)
Santa Clara County Board of Supervisors
Policy Committees
Health and Hospital Committee; Vice-Chair 2001, Chair 2002 - 2012
Legislative Committee; Vice-Chair 2001-2005, Chair 2006 - 2012
Housing, Land Use, Environment, Transportation Committee; Vice-Chair 2009 – 2012
Finance and Government Operations Committee; Vice-Chair 2006 – 2008
Public Safety and Justice Committee; Chair 2001 Vice-Chair 2002 – 2005
County-Wide
County Library District Joint Powers Authority; 2001 – 2012
Santa Clara County Health Authority Board of Directors; 2001- 2011
Santa Clara County Emergency Preparedness Council 2004 - 2011
First Five Santa Clara County Board of Directors 2009
SCC Cities Association Joint Economic Development Policy Committee; 2005-2008
County Internal
County Fire Department Liaison; 2001- 2012
County Planning Commission Liaison; 2001 - 2009
Disaster Council 2006 – 2011
Energy Task Force 2001
Juvenile Detention Reform Planning Committee 2004
Juvenile Detention Reform Oversight Committee 2005 – 2008
Regional Representation
Bay Area Air Quality Management District; 2001- present
Secretary, 2015, in line to be Chair
Bay Conservation and Development Commission; 2001- 2011
Local Agency Formation Commission; 2009 – 2012
Mid-Peninsula Regional Open Space District Financing Authority 2001- 2012
Regional Hazardous Waste Management Facility Allocation; 2001-2006
Valley Transportation Authority; 2005 - 2012, Chair 2008
State and National Representation
California State Association of Counties Board of Directors; 2006 - 2012
California State Association of Counties; Health and Human Services Committee; Member 2003
- present, Vice-Chair 2006, Chair 2007 - 2012
California Urban Counties Caucus; Member 2006 – present, Chair 2011
National Association of Counties; 2006 – present, Board of Directors 2010 - 2012
National Association of Counties; Health Steering Committee; Member 2004 - 2012, Chair 2010
- 2012
National Association of Counties; Large Urban County Caucus Steering Committee 2006 – 2012
National Association of Counties; Sustainability Leadership Team 2003 - 2006
Palo Alto City Council
Library Advisory Commission; 1999
Palo Alto Community Child Care; 1990, 1993, 1995, 1998-1999
Millennium Night/Year 2000 Committee; 1999
National League of Cities – Women in Municipal Government Board; 1998
National League of Cities – Steering Committee; 1995, 1998-99
Santa Clara County Foundation (now Palo Alto Fund); 1990-99
Telecommunications Advisory Board; 1998-99
Senior Coordinating Council; 1991, 1998
Finance Committee; 1997
County Board of Supervisors Liaison; 1997
California Avenue Area Development Association; 1997
Palo Alto Chamber of Commerce; 1997
Neighbors Abroad Liaison; 1993, 1997
Palo Alto Housing Corporation; 1993, 1997
Santa Clara Valley Water District Commission; 1997
Stanford University Liaison; 1994-97
Downtown Merchants’ Association; 1995-97
City/School Liaison Committee; 1992, 1994-97
Historic Resources Board; 1995-96
League of California Cities – Committee on Housing, Community and
Association of Bay Area Governments; 1994-96
League of California Cities – Peninsula Division; 1994-95
Economic Development; 1991-95
East Palo Alto Liaison Committee; 1993-95
Santa Clara County Cities Association; 1994
Family Resource Center Task Force; 1994
Santa Clara County Transportation Commission; 1991-94
Palo Alto Centennial Committee; 1990-1994
Council/CAO Ad Hoc Committee; 1993-94
Disability Awareness Task Force; 1993
Public Art Commission; 1992
Santa Clara County Intergovernmental Council; 1992
Senior Coordinating Council; 1992
Santa Clara County Emergency Preparedness Council; 1990-91
Santa Clara County Paratransit Coordinating Council; 1991
Memberships, Affiliations and Community Service
(partial list)
AAUW, Palo Alto Chapter
American Leadership Forum; Senior Fellow
Association for Senior Day Health
California Elected Women's Assoc. for Ed. & Research (CEWAR)
Children’s Health Awareness Council (CHAC) Advisory Council
Democratic Activists for Women Now (DAWN)
Democratic Forum of Santa Clara County
Joint Venture Silicon Valley; current member and past Co-Chair
League of Women Voters, Palo Alto Chapter
Palo Alto Rotary
Palo Alto Woman’s Club
Voices of Reform Advisory Board, Commonwealth Club of California 2004-2005
*Three term limits
Candidate: Emily Lo, Council Member, City of Saratoga
Position: Vice President
Application Statement: I am a Councilmember and Former Mayor of Saratoga
and have been an active participant in the Peninsula Division dinner meetings in
the past 4 years.
I truly appreciate the effort of the Division to educate, communicate, and engage. I hope to
leverage my experience (on the City Council, as well as a business owner and community
leader) to contribute to the Division and continue the spirit of participation and collaboration.
Attached is my bio.
Council Member Emily Lo – Biography
Public Services and Community Involvement:
- Councilmember and Former Mayor of Saratoga;
- Chair of Joint Power Authority Santa Clara County Library District - present;
- Board of Directors, Hakone Foundation – present;
- Former Board Member, Cities Association of Santa Clara County
- Vice Mayor of Saratoga, Dec. 2012- 2013
- Former President, Saratoga Chamber of Commerce
- Former Board Member, Saratoga- Monte Sereno Community Foundation
- Former Co- president, Saratoga High School PTSA, 2001-03;
- Member of Saratoga Foothill Club, Saratoga Rotary, Saratoga Lions, Saratoga Country
Club, Saratoga Historical Foundation, Organization of Chinese American Women,
Chi Am Circle Club, Saratoga Sister City.
Business Experience:
- Operates a promotional product business for over 16 years
Educational Background:
- Obtained Bachelor of Social Sciences Degree from University of Hong Kong
PENINSULA DIVISION
MEMBER CITIES
ATHERTON BELMONT BRISBANE BURLINGAME CAMPBELL COLMA CUPERTINO DALY CITY EAST PALO ALTO FOSTER CITY GILROY HALF MOON BAY HILLSBOROUGH LOS ALTOS
LOS ALTOS HILLS
LOS GATOS
MENLO PARK MILLBRAE MILPITAS MONTE SERENO MORGAN HILL MOUNTAIN VIEW PACIFICA PALO ALTO PORTOLA VALLEY REDWOOD CITY SAN BRUNO SAN CARLOS SAN FRANCISCO SAN JOSE SAN MATEO SANTA CLARA SARATOGA SOUTH SAN FRANCISCO SUNNYVALE WOODSIDE
DIVISION OFFICERS PRESIDENT KIRSTEN KEITH COUNCILMEMBER CITY OF MENLO PARK VICE PRESIDENT
VACANT SECRETARY/TREASURER ALICIA AGUIRRE COUNCILMEMBER
CITY OF REDWOOD CITY DIRECTOR MARILYN LIBRERS COUNCILMEMBER CITY OF MORGAN HILL AT LARGE REPRESENTATIVES JIM DAVIS COUNCILMEMBER, SUNNYVALE
ART KIESEL MAYOR, FOSTER CITY STAFF LIAISON JESSICA STANFILL MULLIN REGIONAL MANAGER EMAIL: JSTANFILL@CACITIES.ORG
PENINSULA DIVISION 2014-15 EXECUTIVE COMMITTEE VICE PRESIDENT BALLOT
CITY:
Please return to Jessica Stanfill Mullin, PO Box 5630, So San Francisco,
CA 94080 by February 24th or deliver at the Peninsula Division Quarterly
Dinner on February 26th.
Vice President (Vote for One):
Jim Davis, Council Member, City of Sunnyvale Yes___
Liz Kniss, Council Member, City of Palo Alto Yes___
Emily Lo, Council Member, City of Saratoga Yes___
________________________________________________
Name (please print)
________________________________________________
Title
________________________________________________
Signature
City of Palo Alto (ID # 5541)
City Council Staff Report
Report Type: Action Items Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Appeal of Individual Review at 3864 Corina Way
Title: Appeal of Director of Planning and Community Environment’s
Individual Review Approval of a New Two-Story Home located at 3864 Corina
Way
From: City Manager
Lead Department: Planning and Community Environment
Staff Recommendation
Staff recommends that Council uphold the Director of Planning and Community Environment
approval by adopting the Record of Land Use Action (Attachment A) approving an Individual
Review (IR) application for a new two-story home at 3864 Corina Way.
Executive Summary
On February 2, 2015, four Councilmembers voted to pull this item off the consent calendar,
pursuant to Palo Alto Municipal Code (PAMC) Section 18.77.075(g), to set the matter for a
future hearing. The City Manager cited February 23, 2015 as the intended public hearing date.
This item involves an appeal of the Director’s approval of a Single Family Individual Review (IR)
application for a new two-story, five-bedroom, four-bathroom home with attached two-car
garage to be located on a 7,659 square foot (sf) corner lot within the flood plain in the Adobe
Meadows neighborhood. The appellants, Ted and Jamie Stephens, who reside in the adjacent
one-story home at 3860 Corina Way, are concerned about the size, style and placement of the
home, as well as the potential privacy impacts.
The proposed home site is the northeasterly corner of the cul-de-sac at Corina Way. The
appellants had submitted two letters during the review process that began July 2013, followed
by an appeal letter, included in this report as Attachment B. The appellants had also signed a
letter from the neighborhood during the initial 21-day comment period. The project plans were
revised several times during the course of the City’s review process in an effort to address
neighbor concerns and to ensure conformance with the City’s IR Guidelines.
The December 18, 2014 Director’s approval letter found that the revised project is in
compliance with the IR guidelines and R-1 Zone development standards. IR review does not
City of Palo Alto Page 2
prevent second stories. Instead it is aimed at ensuring the second story does not impact the
privacy and livability of adjacent homes. The height of the proposed home is 7’8” below the
allowed height on this property, given that the property is located within the flood plain and
the finished floor must be placed 2’6” above grade.
The approval letter describes the plan revisions made following the Director’s Hearing. Staff
mailed a second letter (both letters are provided as Attachment G) after the appeal was
received, to correct errors in the approval letter; specifically, correcting dates, the spelling of
the appellants’ last name, and the current status of the property as a vacant lot. The errata
letter does not alter the substantive conclusions of the Director’s determination.
The appeal letter restates the appellants’ concern regarding, generally:
the home’s compliance with the Privacy guideline (IR Guideline Five);
the visual and privacy intrusion of a two story home adjacent to the appellants’ home;
a trend of larger homes appearing in neighborhoods containing smaller homes;
the use of the code to define the setbacks, rather than the location of the home’s
entrance, with a statement of the appellants’ belief that staff’s setback determination is
inaccurate; and
the need for story poles to show the proposed building envelope, where these are not
currently required by the Zoning Code or IR process.
The Discussion section of this report provides bulleted lists of specific issues with the IR
Guidelines, as conveyed in the appeal (and via the appellants’ December 4, 2014 letter,
Attachment C) and summary responses to these issues.
Background
On February 2, 2015, the appellant and three other residents spoke to the City Council
regarding the subject appeal. Four Councilmembers voted to pull this item off the consent
calendar, pursuant to Palo Alto Municipal Code (PAMC) Section 18.77.075(g), to set the matter
for a future hearing. This report is substantially the same report as provided to the City Council
for the February 2, 2015 meeting. A Record of Land Use Action (RLUA), Attachment A, is
provided for Council action. Additional correspondence from the appellant provided since
publication of the packet for February 2, 2015 is included in Attachment F. The applicant’s
recent correspondence is provided as Attachment H.
Project Description and Director’s Approval Process
The proposed two-story home would have 3,015 sf of floor area and a maximum height of
23’7”. The 7,658 sf, vacant lot is located within the flood plain, which requires the finished first
floor elevation be approximately 2’6” above the average grade, and does not allow for a
basement (so there is no basement). The flood plain status would allow the building height to
reach 31’3” above grade, per Palo Alto Municipal Code 18.12.040; the proposed building height
is 7’8” below the allowable, maximum height for this property.
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In the appeal, the appellants’ assert that staff misinterpreted what is a side or rear yard. As
shown above, the subject property is a corner site abutting three neighboring properties. The
appellants’ interior side property line is coterminous with the subject property’s interior side
property line. There is one cul-de-sac property abutting the rear property line and another
property’s rear corner touches a corner of the subject property. An excerpt of the site plan is
provided below, to help clarify this relationship.
Front
Yard/
front
lot line Rear
yard
Street side yard
Interior side yard
Appellants’ property
Appellant’s property has no rear property
line, only side property lines Applicant’s property’s interior side line abuts the
Appellant’s interior side line, according to PAMC
Applicant’s rear property line ----->
City of Palo Alto Page 4
The zoning code sets forth, in both written and illustrated format, how to determine a corner
property’s rear and side property lines (illustrated in PAMC Chapter 18.04 as corner lot
diagram, Attachment D). PAMC 18.04.030 Definitions, item 91 (A) states, “Front lot line
means… on a corner lot, the shorter lot line abutting a street…” and item 91 (C) states, “Rear lot
line means the lot line not intersecting a front lot line which is most distant from and most
closely parallel to the front lot line. A lot bounded by only three lot lines will not have a rear lot
line.” The appellants’ property has no rear lot line; the appellants’ rear yard is a triangular
portion measured from the rear point of the lot (per 18.04.030 (146)(C), which states that the
20 foot rear yard depth is “measured into the lot from the rearmost point of the lot depth to a
line parallel to the front lot line.”)
This site’s setback determination was made early in the process, following the zoning code
specifications. The street side line is the cul-de-sac because it is the longer of the two Corina
frontages.
The proposed project was revised several times over the course of the City’s review process in
an effort to address neighbor concerns and to ensure conformance with the City’s IR
Guidelines. The appellants were mailed all decision and hearing notices regarding the project,
and were emailed each time revised plans were submitted to request timely comments. Letters
from the appellants are contained in the project file (dated July 20, 2013, August 1, 2013, and
December 4, 2014).
The initial, tentative Director’s decision of October 14, 2014 was the subject of the Director’s
hearing on December 4, 2014. Following the hearing, the hearing officer modified one
condition (Condition #6), and inserted two additional conditions (Conditions #7 and #8) as part
of the Director’s approval. The Assistant Planning Director, as the hearing officer on behalf of
the Director, acted on the application within the code-prescribed timeline following the
Director’s Hearing.
Initial Submittal
The applicant submitted the IR application for a two-story home with attached, two-car garage
on July 1, 2013. Staff reviewed the plans for compliance with the City’s R-1 Zone Development
Standards and IR guidelines, and provided comments to the applicant in a letter on August 1,
2013 citing the reasons the application was incomplete and why the initial design did not meet
all of the IR Guidelines.
The appellants, with their neighbors, submitted a formal written letter on July 20, 2013,
commenting on the proposal. The letter includes a statement that the home would be
incompatible because it was of an “ultra-modern, linear design, and would be two times the
City of Palo Alto Page 5
size of the homes in the neighborhood, and tower over them.” The appellants and their
neighbors also cited a privacy concern due to the proposed balconies. Staff forwarded the
concerns to the applicant, and met with the appellants, who requested an extension of the
initial comment period to August 7th. The appellants then submitted a second letter on August
1, 2013, discussing the privacy, massing and streetscape of the proposed home with respect to
the IR Guidelines. This letter was also transmitted to the applicant.
Revisions
In May 2014, staff reached out to the applicant and learned that revisions were still underway.
Two revised plans were submitted in the summer and fall of 2014. The first revised plan set,
dated August 15, 2014, was not approved. The second revised plan set, dated October 2, 2014,
was tentatively approved by the Chief Planning Official, acting as the Director’s designee. The
revisions address many of the appellant’s initial concerns. Specifically, the appellants’
comments in September 2014 were addressed with reductions in the overall height and living
room volume, reducing the mass of the building, and ensuring that the footprint at the first and
second levels maintains substantial clearance to the daylight plane on all sides (as seen in the
streetscape drawing). In addition, the use of varied materials and projecting elements served
to soften the building mass and provide scale and horizontality. The tentative approval letter
alerted recipients about the 14-day hearing request period. Prior to the effective date of the
approval, the appellant requested a Director’s Hearing.
Director’s Hearing
The Director’s Hearing was held on December 4, 2014, continued from November 24, 2014. The
hearing was properly noticed, and the applicant and appellant attended the hearing, along with
neighbors. The appellants’ December 4, 2014 letter regarding the design was presented at the
Director’s Hearing and is attached to this report (Attachment C).
After the Director’s Hearing, one condition of approval was amended and two were added. The
Director’s decision letter of December 18, 2014 (Attachment A, as amended by the attached
January 8, 2015 “errata” letter), includes the approval conditions. The amended Approval
Condition #6 requires Director review of “a combination of trees and climbing vines on the
building wall to soften the building” and the new conditions are as follows:
Condition 7: Obscured glazing is required for windows adjacent to the east side yard on
the second floor. The obscure glazing shall be required up to six-feet in height,
measured from the finished floor. The windows may be awning-style windows or fixed.
Condition 8: The trees in the rear yard are to remain, or if they are to be removed,
comparable replacement screening vegetation shall be planted subject to approval of
the Director.
Appeal
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On January 5, 2015, the appellant submitted this appeal (Attachment B), which indicates that
the appellant believes that:
the City should require a 20 foot setback to the building from their shared property line,
and that the property setbacks were not property determined, because the home’s
front entry faces the cul de sac (the street side property line) and the front entry
placement should determine the rear setback (however, this shared property line is
code-defined as the interior side property line as shown on Attachment D);
the project does not meet IR Guideline #5 (the privacy guideline), particularly with
respect to noise, due to the placement and orientation of the first floor deck that results
in a ten foot separation between the proposed deck and the appellants’ patio;
the size of the proposed home is too large (1,000 sf larger than the neighboring homes),
with a boxy, rectangular “commercial” appearance contrasting with neighboring homes;
the staff opinions appear subjective, as the letter used the terms “fair, rather modest,
modest to moderate, and fairly well”;
the yard sign notice of the project was not continually posted during the entire process;
the proposal represents a trend of the “invasion of large homes” and the appellants ask
how to make sure the City is not setting precedents that will create long term impacts;
the Council should ask the staff to (1) review the setback requirements, (2) require the
applicant to erect story poles, and (3) provide the appellant with an alternative
approach that doesn’t “invade privacy”.
The appeal letter also refers to the appellant’s earlier letter of December 4, 2014 (Attachment
C), which includes an analysis of the project with respect to all five IR guidelines (“over 16 ways
the home does not meet the guidelines”).
Discussion
The IR program applies to construction of two-story homes and second story additions, and is
intended to mitigate effects on neighboring homes (Palo Alto Municipal Code § 18.12.110(a)).
Development applications subject to IR must be consistent with these guidelines (PAMC
§ 18.12.110(d)). The IR program is “intended only to mitigate the effects of second story
construction” (PAMC § 18.12.110(a)). The IR program does not have a provision to deny second
story additions or two-story homes because the neighborhood is developed with one-story
homes. Only implementation of a single story overlay rezoning could prevent the construction
of a two-story home.
Errata
Attached to the approval letter (Attachment A) is the errata letter to correct errors identified
on the first page of the appeal letter, to reflect that:
The date of the Director’s Hearing was December 4th, not November 24, 2014;
The date of the Director’s letter was December 18th, not December 4, 2014;
The name of the requesters of the Directors Hearing is Stephens, not Stevens; and
The project site is a vacant lot (in the project description).
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Staff has apologized to the applicant and the appellant for the errors, which were are result of
staffing changes over the holidays. The errata letter does not change the substance or date of
the Director’s decision or affect the appeal process in any material way.
IR Guidelines and Appellant’s Position
Two story homes are reviewed by staff to ensure they meet all five of the IR guidelines and
comply with the R-1 Zone District regulations for development. The IR guidelines include
criteria related to: basic site planning (Guideline #1); neighborhood compatibility for height,
mass and scale (Guideline #2); resolution of architectural form, massing and rooflines
(Guideline #3); visual character of street facing facades and entries (Guideline #4); and
placement of second-story windows and decks for privacy (Guideline #5). The attached
checklist (Attachment E) provides “at a glance” IR Guidelines and associated Key Points that are
contained and illustrated in the IR Guidelines
http://www.cityofpaloalto.org/civicax/filebank/documents/6479.
The appeal letter identifies Guideline 5 in particular, as having not been met by the proposed
design. However, in the appeal, the appellants also reference their December 4, 2014 letter
(Attachment C), which they had submitted to the hearing officer that day. The December letter
discusses the IR Guideline goals with respect to the proposed home, and contains charts
describing the appellants’ analysis of the project with respect to all five IR Guidelines.
Below is a summary of the appellants’ arguments and staff’s responses in italics.
Guideline 1: Basic Site Planning
The appellants’ chart, contained in their December 4th letter, reviews the project with respect
to the IR Guideline #1 Key Points, stating that:
the floor plan is boxy resulting in high impact mass;
the upper floor is not carefully positioned, that the north elevation is prominent when
compared to adjacent neighbors;
the prominent upper floor is intrusive to neighbors and is intended to stand out and is
significantly larger, in a different and more commercial style than homes in the vicinity;
and
nearly 700 sf additional ground floor level area is available but unused and, though the
second floor is partially setback, the northern elevation is still prominent and a visual
impact.
The design changes over the year of this process resulted in a shift of the building mass toward
the street, away from the interior lot lines, to provide a greater distance to the second floor
mass and orient the balcony toward the street. The second floor is now positioned to minimize
its impact on both the abutting lot and the view from the street corner.
Guideline 2: Neighborhood Compatibility
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The appeal letter notes that the appellants have repeatedly requested the placement of story
poles to indicate the outline of the proposed home.
Staff does not require story poles for two story homes in the R-1 zone, since the Zoning Code
does not require them. They are expensive and would not be beneficial to resolving the issues
raised here. The appellants note that they had reviewed the revised (current) plans with
neighbors, and included the neighbors’ comments as Attachment 1 of the appeal letter.
The appellants’ chart, contained in their December 4th letter, reviews the project with respect
to the IR Guideline #2 Key Points, stating that:
the overall height, flat roof and vertical height on the northern elevation conflict;
the scale of the upper floor and height, at twice the height of neighboring homes, make
the home incompatible with the neighborhood, as does the style (stacked boxes, which
creates a “lack of balance”); and
the adjacent homes are significantly overwhelmed by the height, boxy massing and
sharp contrasts of the proposed home, such that the applicant could have (a) included
more area at the first floor level, (b) reduced the strong vertical elements, particularly
on the northern elevation, despite the flood plain restriction, and (c) used a sloped roof
to better manage perceived height and scale.
The proposed design reflects a modern style of architecture. The style is different from
surrounding ranch-style architecture, however, the design is sensitive to surrounding properties
in that it focuses the mass away from residences, has a reduced height, and has obscure glazing
adjacent to the appellant’s property to further reduce privacy impacts. A portion of the house is
one-story and the one-story volumes are relatively low in height as well as set forward of the
second floor as suggested in the IR Guidelines, to lessen the home’s perceived scale as seen from
the street.
The Individual Review program is not intended to be a “design review” program that dictates
specific architectural styles. A variety of styles are common in the subdivisions of Palo Alto, and
many neighborhoods have a variety of styles presented within the neighborhood. Similarly,
there are other neighborhoods that consist of single-story, tract homes of a similar or the same
style.
Guideline 3: Resolution of architectural form
The appellants’ chart, contained in their December 4th letter, reviews the project with respect
to the IR Guideline #3 Key Points, stating that:
the home features odd second floor extensions that increase massing toward the
easterly and northeasterly neighbors;
the second floor is heavily weighted to the north, and does not balance against the
smaller southern portion; and
City of Palo Alto Page 9
the masses are not well-proportioned and extend the scale in odd ways to promote the
interior floor plan, with decorative elements that create clutter (but are not shown in
the streetscapes), and the second floor is devoid with most elements appearing as a
monolithic block, and as a stucco, wood and concrete view across 60% of the property
line, affecting enjoyment and livability.
The approval condition #6, modified following the Director’s Hearing to help mitigate the
concern regarding the wall facing the appellants, will result in the installation of climbing vines
in addition to screen trees to soften that elevation. Overall, the massing is composed with
unified forms and uses horizontal canopies and roof edges to accentuate horizontal proportions.
Guideline 4: Visual Character of Street Facing Facades and Entries
The appellants’ chart, contained in their December 4th letter, reviews the project with respect
to the IR Guideline #4 Key Points, stating that:
the neighbors had expressed their opinion that the street facing façade is unattractive,
based on the building materials, the box-like elements, and the use of a front balcony.
As noted, during the process, more of the mass was placed toward the street to reduce mass
from placement along the interior lot lines. The balcony is proposed where it would have the
least impact upon the privacy of the abutting properties, and the IR program allows for a variety
of architectural styles. Facades are developed in a fashion stylistically consistent with the
building forms and with a close use of line, window composition and materials, as discussed and
illustrated within the IR Guidelines.
Guideline 5: Privacy
The appeal letter notes that noise will carry (conversations, private family activities and
celebrations) from the proposed deck across the 10 foot distance to the appellants’ existing
patio. The appellants’ chart, contained in their December 4th letter, also reviews the project
with respect to the IR Guideline #5 Key Points, stating that:
to address privacy issues, the applicants created a nearly monolithic, street facing,
second story wall with very few windows; and
the second story balcony on the northern side of the home may create privacy impacts
which cannot be known unless story poles are erected.
Second story windows facing the appellants’ property are narrow vertical windows, or high sill
horizontal windows, sufficient to provide visual relief from wall surfaces, while not impacting
privacy. The building itself (bedroom 3) blocks any view from the upstairs balcony towards the
appellants’ property. The two approval conditions added following the Director’s Hearing also
help mitigate privacy concerns, as follows:
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Approval Condition #7 regarding the employment of obscured glazing on the second
floor windows facing the appellants’ property benefits the appellants and should address
their visual privacy concern.
Approval Condition #8 regarding retention of existing trees or replacement with
comparable screening vegetation per Director approval benefits the home to the rear
(the northern side) and should address the privacy concern there.
In a suburban setting with these larger lot sizes, it is reasonable to expect that the side yards
and rear yards will be used for outdoor living, and that outdoor space would be located near
neighboring property lines. The privacy guideline only regulates the placement of second story
windows and second story decks (and balconies) as illustrated in the Guidelines. The deck at the
first floor along the interior side is tucked into the building footprint and does not extend to the
full allowance of three feet from property line; it is set back at least 10 feet from the common
property line with the appellant, and vegetation between the deck and the property line will
provide visual screening. The noise ordinance addresses noise violations.
Additional Response to Appeal
Brief responses are provided below (in italics) to address the points raised in the appellant’s
January 5, 2015 appeal letter and duplicated again in her January 24, 2014 to Councilmember
Wolbach, contained in Attachment F.
“The City should require a 20 foot setback to the building from their shared property
line, and the property setbacks were not property determined” (1/5/15 letter). “The
planning department tries to categorize the patio as a side yard, but it is clearly the rear
of the home” (1/24/15 email). The shared property line is code-defined as the interior side
property line as shown on Attachment D.
“The project does not meet IR Guideline #5 about privacy due to the placement and
orientation of the first floor deck” (1/5/15). See the discussion of Guideline #5 above.
“The proposed home is too large (1,000 sf larger than the neighboring homes), with a
boxy, rectangular “commercial” appearance” (1/5/15). “Too large” is a relative term,
but is understandable given that the new home is in a neighborhood context of Mid-
Century Modern Patio Houses. The flat roof form does create a more boxy appearance
than a pitched roof, but horizontal and vertical offsets, long canopies at window tops,
ribbon and corner windows, and horizontal material patterns on walls help reduce the
perception of visual mass. The proposed home does not exceed the R-1 zoning code
standards for floor area and lot coverage for the site. As noted, the design was modified
since the original submittal to reduce the perceived mass and scale of the building,
including its height and balcony size. Also, the horizontal proportions and use of
horizontal lines fits with the neighborhood. Given the existing neighboring homes, which
have slab-on-grade construction in the flood zone, any significant changes to
neighboring homes will result in taller structures, even if one story homes are proposed,
given the requirement for the placement of finished floor above the base flood elevation.
City of Palo Alto Page 11
“Staff opinions appear subjective, using the terms ‘fair, rather modest, modest to
moderate, and fairly well.’” (1/5/15) Compliance with the IR guidelines is subjective.
These terms do not reflect bias but rather, a perspective on how the project is consistent
with the guidelines.
“The yard sign notice of the project was not continually posted during the entire
process” (1/5/15). The code requires that the yard sign be placed initially to ensure
neighbors are aware of the submittal and where, when and to whom to send comments
during the initial 21 day period. The code (PAMC 18.77.075(b)) does state that the sign
shall be posted at the subject property until approval, denial or withdrawal of the
application. Due to the extended time between the applicant’s first submittal and
resubmittal (one year), the sign may have been removed during that time. However, the
staff member who processed the application (no longer with the City) was in contact
with the appellants and other neighbors during the process, as evidenced by emails in
the project file.
“The proposal represents a trend of the “invasion of large homes” and sets precedents
that will create long term impacts” (1/5/15). Each home design is evaluated during the
Single Family Individual Review process in context of the neighborhood with respect to
the IR guidelines; there is no legal precedent set by a single project.
“Subjective or perceived size: As a way to test the subjective or perceived size (and
proximity), I have asked repeatedly for story poles to be erected so that the neighbors
could see the actual dimensions. But the planning department does not respond to my
written request, except to say that ‘codes do not require story poles’" (1/24/15). PAMC
only requires story poles to be erected for proposed structures within the Open Space
Zone. Chapter 18.28, Special Purpose Districts, Section 18.28.070 sets forth “Additional
Open Space District Regulations”, specifically, item (o), Story Poles and Other Visual
Review Aids.
“This review process is broken. It creates adversaries and winners and losers, rather
than solutions. There is no process for discussing or mediating reasonable solutions and
alternatives. These lots were set up for small ranch-style homes, before flood
requirements. In the absence of a plan for the evolution of our neighborhoods,
administrators and developers are setting precedents that cannot be undone. Once
3000 square feet is built right next to our home, the privacy and livability of our home
will be forever compromised. Other neighbors are also concerned about the precedent
this sets” (1/24/15). The IR program has been in place for over ten years. It is a review
procedure that provides some discretion to minimize the impact of new development in
single family neighborhoods. Importantly, it does not prohibit two story homes and it
does not dictate architectural style. While the vast majority of projects processed
through the IR program result in no controversy, there has been an increased number of
projects challenged over the past year. Most of these challenges relate to new two story
homes in predominately one story neighborhoods. The appellant raises important
questions about how to balance neighborhood preservation with property owner
expectations to build contemporary two story homes on highly valued properties.
City of Palo Alto Page 12
POLICY IMPLICATIONS
Neither the IR Guidelines nor the R-1 Zoning Code requires the first floor area to be “maxed
out” to take up all of the available lot coverage, before placing the balance floor area on the
second floor. While the guidelines do address visual privacy intrusion, noise intrusion is not
expressed as an issue to address in either the Guidelines or Zoning Code. Noise is regulated by
the City’s Noise Ordinance. Also, it is not uncommon for outdoor space to be located near
neighboring property lines given parcel sizes, lot configurations, and setbacks in Palo Alto. The
City does not require story poles pursuant to the IR process or Zoning Code for R-1
neighborhoods.
From a broader policy perspective, there is increasing tension when redevelopment occurs in
predominately one story single family neighborhoods. High residential real estate values
contribute to a pressure to maximize development. If new construction is located in a flood
zone, concerns regarding neighborhood compatibility increase. Historically the IR program was
not designed to prescribe particular architectural styles but rather to focus on privacy and
neighborhood compatibility. Staff has been approached by residents and architects expressing
concerns about the IR program. Some residents have explored the possibility of reactivating
expired provisions of recorded codes, covenants, and regulations (CC&RS), as a way means to
preserve an idealized residential character. Finally, Council has included the IR program among
2015 Council priorities. Staff has been making subtle changes to the IR program and will
conduct a more thorough review and report out to the City Council.
ENVIRONMENTAL REVIEW
This project is exempt from the provision of the California Environmental Quality Act (CEQA)
per Section 15303(a) of the CEQA Guidelines.
Attachments:
Attachment A: Draft Record of Land Use Action (DOC)
Attachment B: Corina Way IR appeal (PDF)
Attachment C: December 4 Appellants' Letter (PDF)
Attachment D: Illustration of Setbacks (PDF)
Attachment E: Guideline Checklist v4 (DOCX)
Attachment F: Appellant Correspondence between first packet and 2 2 15 (PDF)
Attachment G: Director's Approval Letters (PDF)
Attachment H: Email from Applicant post 2 2 15 Council (PDF)
Page 1
ATTACHMENT A
APPROVAL NO. 2015-0X
DRAFT RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR
3864 CORINA WAY: INDIVIDUAL REVIEW [FILE NO. 13PLN-00274]
On February 23, 2015, the City Council upheld the Director’s approval of the Individual Review
application for a new two-story house, making the following findings, determination and declarations:
SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds,
determines, and declares as follows:
A. On July 1, 2013, Helen Koo on behalf of property owner Kome LLC submitted a Single
Family Individual Review application for a new two story home (“The Project”) on the subject property at
3864 Corina Way.
B. Following staff review and initial neighborhood engagement, revised plans were
submitted August 15, 2014; a second set of revised plans, date October 2, 2014, were tentatively
approved with conditions by the Chief Planning Official on October 14, 2014. The appellants, the Ted and
Jeanie Stephens, requested a Director’s Hearing, citing their concerns about staff’s determination of the
rear yard and the project’s compliance with several of the Individual Review guidelines;
C. The project was reviewed at a Director’s Hearing on December 4, 2014, after which the
Assistant Director of Planning and Community Environment conditionally approved the application on
behalf of the Director, on December 18, 2014. This decision, reflected in the December 18, 2014 approval
letter, as amended by the January 8, 2015 Errata letter, was based upon the information contained in the
file (13PLN-00274) and testimony received during the Director’s Hearing.
D. The appellants submitted an appeal of the Director’s approval on January 5, 2015, and
the appeal was placed on Council Consent Calendar for February 2, 2015 for approval of the project; four
members of the Council pulled the item off consent and set the matter for a hearing on February 23, 2015.
SECTION 2. Environmental Review. The single-family home is exempt from the California
Environmental Quality Act (“CEQA”) Guidelines section 15303.
SECTION 3. Individual Review Finding. Pursuant to Palo Alto Municipal Code Section
18.12.110 (d), “Neither the director, nor the city council on appeal, shall grant an individual review
approval unless it is found that the application is consistent with the individual review guidelines.”
The five Individual Review guidelines are as follows:
Guideline 1 (G1): Basic Site Planning
The driveway, garage and house are placed and configured to reinforce the neighborhood’s existing site
patterns and the garage and driveway are subordinate to the house, landscaping and pedestrian entry as
seen from the street.
Page 2
Guideline 2 (G2): Neighborhood Compatibility
The scale, mass and height of the new home is consistent with the existing neighborhood pattern, adapting
to the height and massing of adjacent homes.
Guideline 3 (G3): Resolution of architectural form
The architectural form and massing have been carefully crafted to reduce visual mass and distinguish the
house’s architectural lines or style. Roof profiles enhance the form, scale and proportion of primary and
secondary house volumes, while rendering garage and entry forms subordinate in mass and scale to
principal building forms.
Guideline 4 (G4): Visual Character of Street Facing Facades and Entries
Facades are composed with a clear and cohesive architectural expression, and include visual focal points
and the supportive use of materials and detailing. The entry is consistent with the existing neighborhood
pattern and integrated with the home in composition, scale and design character. The garage design is
consistent with the selected architectural style of the home.
Guideline 5 (G5): Privacy
The size, placement and orientation of second story windows and decks shall limit direct sight lines into
windows and patios located at the rear and sides of adjacent properties in close proximity.
SECTION 4. Individual Review Approval Granted. Individual Review Approval is granted for
the project by the City Council under Palo Alto Municipal Code (PAMC) Section 18.77.075, and based upon
PAMC Section 18.12.110 (d), subject to the conditions of approval in Section 6 of this Record. The project
conforms to the R-1 district regulations and meets all five of the IR guidelines as detailed below:
Guideline #1 Compliance, Supportive Statements: The footprint of the house is carefully configured to
respond to neighborhood patterns and limit impacts on neighboring property. The second floor is
positioned to minimize its impact on both the abutting lot and the view from the street corner. An L
shaped footprint is used so that an expanded side yard/patio area is deeply inset from the interior side
lot line that faces the yard area of the 3860 Corina Way home.
The positioning of the upper floor is also responsive to neighborhood conditions. The upper floor has
been set back from the front wall of the house to reduce its impact on Corina Way as seen at the short
frontage. The upper floor is basically a bar shape set away from the interior lot line and over the
section of the house that faces the cul-de-sac frontage. To reduce the impact of the bar shape on both
the street and interior side, the upper floor has be sculpted by using offsets and similar approaches.
As a result of the building footprint at first and second levels the proposal maintains substantial
clearance to the daylight plan on all sides as suggested by illustrations 1B and 1D with this guideline
where next to one-story homes. This can be seen on the streetscape drawing, which shows the
daylight plane.
The driveway and garage are also subordinate to the house, landscaping and pedestrian entry as
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required by this guideline. The garage is near the rear setback line, where is has the least visual impact
on the street and tucked under the building volume.
Guideline #2 Compliance, Supportive Statements: The neighborhood context is predominantly one-
story single-family homes in the Patio House style, sometimes called Eichler homes. These homes pre-
date the flood zone, and have slab-on-grade construction and very low pitch rooflines. Eave or gable
sides of homes may face the street and ridge heights are likely not more than 12 or 13 feet tall. These
homes are fairly simple versions of the Mid-Century Modern Patio House. Footprints tend to be
rectangular or L shaped. Yard areas for outdoor living often are at the side of the house rather than
the rear or on multiple sides. Exceptions to this pattern include the home diagonally across the
intersection from the subject lot. This home has a tall second floor addition placed on the front of the
home (which pre-dates the Individual Review process). Also on the cul-de-sac, partially screened from
the street is a recently built, two-story home. The homes directly across the street on both frontages
and adjoining the interior lot lines are all one-story homes typical of the neighborhood.
The home’s massing creates a one-story presentation at the short frontage along Corina Way (south
elevation), at the building corner facing the intersection, and adjacent to 3860 Corina Way. The one-
story form is 14 feet tall, which is slightly taller than the neighbor’s roof ridge. Because the neighbor’s
house is rotated (i.e. the street facing walls of the two homes do not align), and because there is a fair
amount of space between the two homes with some landscape between at the shared lot line, the
transitional massing is fairly effective at adapting to the context.
The west elevation facing the cul-de-sac section of Corina Way is longer and mostly two-stories, but
the balcony and bedroom over the garage that face the street float forward of the main façade and
have a lowered roof height. This creates a horizontal and lighter façade treatment to reduce mass
perception. The roof at this section of the façade is 22’ above grade and the main roof has a parapet
23’-7” above grade.
The north elevation, which is visible from the cul-de-sac has been sculpted with a lower roof line at the
rearmost bedroom and a notched corner for a street facing balcony. The mass at this corner of the
house is rather modest and the scale is well managed by the bedroom projection out from the
sidewall of the garage.
The use of varied materials and projecting elements, such as canopies over windows further soften the
building mass and provide scale and horizontality to the home’s presentation on the street.
Because of the placement of the upper floor and the adjustments to massing the impacts of the
building height are reduced. There is a general fit with the neighborhood and an avoidance of large
monolithic or overwhelming building masses. Height contrasts with adjacent homes exist but are
modest to moderate. The home being in the flood zone limits the ability to place the first floor close to
grade, but despite this, the home responds to neighborhood conditions fairly well. The home is larger
than its neighbors, but the design is measured in it response to neighborhood conditions and takes
many opportunities to lower roof edges and reduce the size of individual forms to manage height,
mass, and scale.
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Guideline #3 Compliance, Supportive Statements: The home’s massing is effective at distinguishing a
consistent set of forms related to the chosen architectural vocabulary. The contemporary/modern
vocabulary is used and secondary forms are offset from the main form to lessen the sense of mass.
The variation is controlled and skilled in the manipulation of form. The house maintains a cohesive
visual sense, while subordinate masses break down the scale and provide focal points.
Flat roof forms create a more boxy appearance, but horizontal and vertical offsets, long canopies at
window tops, ribbon, corner windows and horizontal material patterns on walls help reduce the
perception of visual mass.
The upper floor is set approximately 12 feet back from the lower floor at the front and 16 feet back at
the interior right side at the one-story living room volume. The house is located in the flood zone with
a base flood elevation of 10.5 feet. Existing grade is about at 8.3’. The first floor is 2’-6” above existing
grade, as required. The maximum height at the one-story living room is 14’-0” to the parapet. The
home’s overall, maximum height is 23’-7” measured from existing grade to the upper parapet. Overall,
the massing is composed with unified forms and uses horizontal canopies and roof edges to
accentuate horizontal proportions.
Guideline #4 Compliance, Supportive Statements:
The proposed home can be characterized as a contemporary/modern in style with rectangular forms
clad in varied materials, ribbon/corner windows and various horizontal canopies and similar material
treatments. The design is composed and unified. Materials and detailing are also used to accentuate
building form and horizontal line. Ample fenestration articulates the building forms on street facing
sides of the house, such as at the large corner windows at the street corner facing family room and
master bedroom above. Variation in material, which combines stucco and horizontal and vertical
wood siding, is especially effective with this contemporary design treatment. The 1x3 clear stained
wood and smooth stucco finish should provide a high quality appearance. While the house has a
commercial design appearance to some, the scale of the building is small enough, that areas wall
surface are limited to room size. This should limit the sense of commercial scale.
The entry is a subdued void in the façade, which picks up the neighborhood pattern commonly found
in patio style homes that do not feature entry porches. This is consistent with this guideline. Also the
garage and garage door blend into the façade and are consistent with the home’s selected
architectural style.
Guideline #4 Compliance, Supportive Statements: The proposal creates minimal direct privacy impacts.
There is heavy landscape screening along the rear lot line and rear corner of the lot limit impacts to
the 3856 and 3866 Corina Way properties.
The property with the greatest privacy concern is 3860 Corina Way, which has its rear yard facing the
interior side lot line of the subject lot and windows facing the side lot line. The windows are angled
away from the side lot line at about 30 degrees due to the rotation of the 3860 Corina Way home’s
footprint.
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Privacy impacts on this property are quite limited. Side facing windows facing the interior side lot line
on the upper floor are narrow vertical or high sill horizontal windows. There are no bedroom windows
facing the interior side lot line. There is a bedroom window, glass door and small balcony facing the
rear yard. All other upper floor windows and balconies face the street. The only windows on this side
of the house are shallow, high sill horizontal window strips at bathroom 3 and the upper hallway
landing and a narrow vertical window at bathroom 2. The sills of the bathroom 3 and hall windows
(which shall be dimensioned relative to finish floor height on the building permit drawings) appear to
be at or above eye level. This allows for some sky views but limits downward views. Bedroom two’s
projecting sidewall also screens sideways views out of the hallway window towards the neighbor’s
yard. Given these locations views out and downward from these windows are limited.
There is also tree screening proposed along the interior side lot line across from these windows. The
specific tree choices are not shown for the six trees, but they will be clarified on the building permit
plans using botanical names and will be evergreen trees that grow to at least 20 feet tall and are ten
feet tall at time of planting. Planting also is also conditioned to occur prior to final building inspection.
Approval conditions #7 and #8 require obscured glazing and vegetation. With the landscape plus the
limited glazing on this side of the building, casual viewing to the neighbor’s property would be
substantially limited; and therefore, consistent with this guideline.
SECTION 5. Plan Approval.
The plans submitted for Building Permit shall be in substantial conformance with those plans
prepared by Kome, LLC entitled ‘3864 Corina Way Palo Alto’, consisting of eleven pages, dated October 2,
2014. A copy of these plans is on file in the Department of Planning and Community Development and has
been displayed on the City’s Webpage for residential development proposals. The conditions of approval
in Section 6 shall be printed on the cover sheet of the plan set submitted with the Building Permit
application.
SECTION 6. Conditions of Approval.
PLANNING DIVISION
1. Applicant shall apply for building permit and meet any and all conditions of the Planning, Fire,
Public Works, and Building Departments.
2. The project shall be constructed in substantial compliance with the development plans dated
stamp Received on October 2, 2014 and labeled ‘Exhibit A.’ The plans are on file with the Planning
Department, 250 Hamilton Avenue, Palo Alto, California (and at the Development Center at 285
Hamilton Avenue during the public review period) except as modified by these conditions of
approval. Any revisions to the approved plans may require a separate application with fees, at the
discretion of the Chief Planning Official.
3. A copy of this approval letter shall be printed on the first page of the plans submitted for building
permit.
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4. Upon submittal of an application for a building permit, building plans for any covered project shall
include a checklist and green building program description, reflecting any changes proposed since
the planning entitlement phase. The checklist shall be incorporated onto a separate plan sheet
included with the building plans. A qualified green building professional shall provide evidence of
an adequate green building compliance or documentation to the compliance official to satisfy the
requirements of the standards for compliance outlined in PAMC Section 18.44.040, prior to
issuance of a building permit. All questions concerning the City’s Green Building Standards should
be directed to Green Building Planner at (650) 329-2189.
5. The building permit plan set shall include a boundary survey verifying lot line locations, stamped
and signed by a licensed land surveyor. The boundary survey requirement is in addition to the
topographic survey, which is included in Exhibit A.
6. Six 24” box sized “Tristania Laurina” screen trees shall be planted along the easterly property line
(reflected in Sheet A-060 of revised plans date-stamped 10/2/14) prior to final planning inspection
of the project. An alternate evergreen tree species may be proposed for Director review and
approval (these trees shall reach a minimum of 20 feet in height at maturity. A combination of
trees and climbing vines on the building wall shall be used to soften the building.
7. Obscured glazing is required for windows adjacent to the east side yard on the second floor. The
obscure glazing shall be required up to six-feet in height measured from the finished floor. The
windows may be awning-style windows or fixed.
8. The trees in the rear yard are to remain, or if they are to be removed, comparable replacement
screening vegetation shall be planted subject to approval of the Director.
9. The first floor of the house shall be at or around BFE which is AE10.5’. The overall height of the
structure shall not exceed approx. 23’-7” per the approved set date stamped Received on October
2, 2014.
10. The maximum floor area shall not exceed 3,048 square feet per the approved set date stamped
Received on October 2, 2014.
11. Site drainage shall be in accordance with the requirements of Public Works such that the site plan
includes existing and proposed spot elevations and drainage flow arrows to demonstrate proper
drainage of the site. Adjacent grades must slope away from the building at a minimum slope of
2%. Downspouts should be shown on site plan, as well as any site drainage features such as
swales. Grading will not be allowed that increases drainage onto, or blocks existing drainage from,
neighboring properties.
12. Downspouts shall be shown on elevations with the building permit set. Downspouts shall be
located so that they do not visually interrupt design features such as corner windows and porch
posts.
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13. No trenching for utilities shall occur within 10 feet of street trees, including but not limited to,
trenching for sewer lines and gas lines, unless specified otherwise.
14. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City
Council, its officers, employees and agents (the “indemnified parties”) from and against any claim,
action, or proceeding brought by a third party against the indemnified parties and the applicant to
attack, set aside or void, any permit or approval authorized hereby for the Project, including
(without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense
of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys
of its own choice.
PUBLIC WORKS URBAN FORESTRY CONDITIONS
PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE:
15. SITE PLAN REQUIREMENTS. The final Plans submitted for building permit shall include the
following information and notes on the relevant plan sheets:
a. Sheet T-1_Tree Protection-it's Part of the Plan available on the City website at
(http://www.cityofpaloalto.org/environment/urbancanopy.asp). Applicant shall complete and
include the Tree Disclosure Statement and Inspections #1- #6 on the ‘Contractor and
Inspection Schedule’ form shall be checked and are mandatory.
b. Delineate on grading plans, irrigation plans, site plans and utility plans, Type II fencing
around Street Trees and Type I fencing around Protected/Designated trees as a bold and
dashed line enclosing the Tree Protection Zone per the approved TPR and per instructions as
shown in Section 6.35 ‘Site Plan’ and Appendix K of the City Tree Technical Manual.
c. Include the following three notes in the following specified sheet(s) of the building permit plan
set stating:
i. Note #1 - On the Site Plan - "All tree protection and inspection schedule measures, design
recommendations, watering and construction scheduling shall be implemented in full by
owner and contractor, as stated in the Tree Protection Report on Sheet T-1 and the
approved plans,”
ii.Note #2 - All civil plans, grading plans, irrigation plans, site plans, utility plans and relevant
sheets shall include a note referring to the trees to be protected,
including neighboring trees, and
iii.Note #3 - All Utility plan sheets shall include the following note: “Utility trenching shall not
occur within the TPZ of a protected tree. Contractor shall be responsible for ensuring that
no trenching occurs within the TPZ of the protected tree by contractors, City crews or final
landscape workers. See sheet T-1 and note on site plan for instructions.”
16. TREE PROTECTION VERIFICATION. Prior to demolition, grading or building permit issuance, a
written verification from the contractor of record shall be submitted to the Building Inspections
Division indicating that the required protective fencing is in place. The fencing shall contain
required warning sign and remain in place until final inspection of the project.
DURING CONSTRUCTION
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17. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or
trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference,
with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed
with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional
boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance,
shall be printed on the final plans.
18. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed
and responded to with written letter of acceptance by planning staff before submitting the
revision to the building department.
19. CONDITIONS. All Planning Department conditions of approval for the project shall be printed on
the plans submitted for building permit.
20. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement any City Arborist
Inspection Schedule measures; design recommendations and construction scheduling as stated in
the TPR, which are subject to code compliance action pursuant to PAMC 8.10.080. The required
protective street tree fencing shall remain in place until final landscaping and inspection of the
project. A mandatory Tree Activity Report shall be sent to the City Building Division beginning with
the initial verification approval, using the template in the TTM, Addendum 11.
21. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting,
injury mitigation measures and City arborist inspection schedule (1-5) apply pursuant to TTM,
Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly
owned or protected trees that are damaged during the course of construction, pursuant to the
Palo Alto Municipal Code, and City Tree Technical Manual, Section 2.25.
22. GENERAL. The following general tree preservation measures apply to all trees to be retained: No
storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure
area. The ground under and around the tree canopy area shall not be altered. Trees to be retained
shall be irrigated, aerated and maintained as necessary to ensure survival.
PRIOR TO OCCUPANCY
23. LANDSCAPE INSPECTION. Prior to final occupancy approval, the Planning Department and/or
project planner shall inspect all protected trees, new planting and irrigation, and verify that they
are functioning as specified in the approved plans dated October 2, 2014 and as shown on Site
Plan sheet A-060 of Exhibit A.
POST CONSTRUCTION
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24. MAINTENANCE. After final occupancy approval all required landscape and screening trees
indicated in condition of approval #6 above shall be maintained, watered, fertilized, and pruned
according to Best Management Practices-Pruning (ANSI A300-2001 or current version). Any
screening tree specified in condition of approval #6 that dies shall be replaced (with approved tree
species and box size as shown on Exhibit A) or failed automatic irrigation repaired by the current
property owner within 30 days of discovery.
25. PUBLIC UTILITIES EASEMENT (PUE): Show any PUE along the property lines on the Site Plan.
PUBLIC WORKS ENGINEERING CONDITIONS
26. SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace those portions of
the existing sidewalks, curbs, gutters or driveway approaches in the public right-of-way along the
frontage(s) of the property that are broken, badly cracked, displaced, or non-standard, and must
remove any unpermitted pavement in the planter strip. Contact Public Works’ inspector at 650-
496-6929 to arrange a site visit so the inspector can determine the extent of replacement work.
The site plan submitted with the building permit plan set must show the extent of the replacement
work or include a note that Public Works’ inspector has determined no work is required. The plan
must note that any work in the right-of-way must be done per Public Works’ standards by a
licensed contractor who must first obtain a Street Work Permit from Public Works at the
Development Center.
27. STREET TREES: The applicant may be required to replace existing and/or add new street trees in
the public right-of-way along the property’s frontage(s). Call the Public Works’ arborist at 650-
496-5953 to arrange a site visit so he can determine what street tree work, if any, will be required
for this project. The site plan submitted with the building permit plan set must show the street
tree work that the arborist has determined, including the tree species, size, location, staking and
irrigation requirements, or include a note that Public Works’ arborist has determined no street
tree work is required. The plan must note that in order to do street tree work, the applicant must
first obtain a Permit for Street Tree Work in the Public Right-of-Way from Public Works’ arborist
(650-496-5953).
28. FLOOD ZONE: The proposed improvements are located within a Special Flood Hazard Area.
Accordingly, the proposed construction must meet all of the City’s and Federal Emergency
Management Agency’s (FEMA) requirements for construction within a flood zone, such as: the
finished bottom floor must be at or above the base flood elevation (BFE); the crawl space (if used)
must have flood vents; and all construction materials and equipment below the BFE must be
water-resistant. Garage slabs can be below the BFE, but the garage will then need flood vents.
See Palo Alto Municipal Code Section 16.52, Flood Hazard Regulations, and our website for more
information. The plans must show the BFE on all applicable elevations, sections and details; must
include a calculation of the required amount of flood vents; must include the flood vents on the
elevations and foundation plan; must note all materials below the BFE as water-resistant; and
must include the Elevation Certification Submittal Requirements for Construction in the Special
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Flood Hazard Area form, which is available from Public Works at the Development Center or on our
website. Please note that FEMA recently (May 2009) changed the vertical datum of the flood
zones. You must use the new vertical datum (NAVD88) on plans submitted for a building permit.
29. GRADING & DRAINAGE PLAN: The plan set must include a grading & drainage plan prepared by a
licensed professional that includes existing and proposed spot elevations and drainage flow arrows
to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a
minimum of 2%. Downspouts and splash blocks should be shown on this plan, as well as any site
drainage features such as swales. Grading will not be allowed that increases drainage onto, or
blocks existing drainage from, neighboring properties. Public Works generally does not allow
rainwater to be collected and discharged into the street gutter, but encourages the developer to
keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious
areas of the site. See the Grading & Drainage Plan Guidelines for Residential Developments on our
website: http://www.cityofpaloalto.org/civicax/filebank/documents/2717
30. STORM WATER POLLUTION PREVENTION: The City's full-sized Pollution Prevention - It's Part of the
Plan sheet must be included in the plan set. Copies are available from Public Works at the
Development Center or on our website:
http://www.cityofpaloalto.org/civicax/filebank/documents/2732
31. STREET TREES: Show all existing street trees in the public right-of-way. Any removal, relocation or
planting of street trees; or excavation, trenching or pavement within 10 feet of street trees must
be approved by Public Works' arborist (phone: 650-496-5953). This approval shall appear on the
plans. Show construction protection of the trees per City requirements.
32. WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the
public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans
must include notes that the work must be done per City standards and that the contractor
performing this work must first obtain a Street Work Permit from Public Works at the Development
Center. If a new driveway is in a different location than the existing driveway, then the sidewalk
associated with the new driveway must be replaced with a thickened (6” thick instead of the
standard 4” thick) section. Additionally, curb cuts and driveway approaches for abandoned
driveways must be replaced with new curb, gutter and planter strip.
33. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of
impervious surface. Accordingly, the applicant shall provide calculations of the existing and
proposed impervious surface areas with the building permit application. The Impervious Area
Worksheet for Land Developments form and instructions are available at the Development Center
or on our website: http://www.cityofpaloalto.org/civicax/filebank/documents/2718
34. STORM WATER TREATMENT: This project shall comply with the California Regional Water Quality
Control Board’s revised provision C.3 for storm water regulations. These regulations apply to
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residential land development projects that create or replace between 2,500 and 10,000 square
feet of impervious surface area. The applicant must implement one or more of the following site
design measures:
Direct roof runoff into cisterns or rain barrels for reuse.
Direct roof runoff onto vegetated areas.
Direct runoff from sidewalks, walkways, and/or patios onto vegetated areas.
Direct runoff from driveways and/or uncovered parking lots onto vegetated areas.
Construct sidewalks, walkways, and/or patios with permeable surfaces.
Construct driveways, and/or uncovered parking lots with permeable surfaces.
SECTION 7. Judicial Review
This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5;
the time by which judicial review must be sought is governed by CCP Section 1094.6.
SECTION 8. Term of Approval
This Individual Review approval will expire, if no building permits have been obtained, one year from the
Council approval date, unless the applicant requests a one-year extension prior to the one year expiration.
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Director of Planning and
Community Environment
APPROVED AS TO FORM:
_________________________________
Senior Assistant City Attorney
SINGLE-FAMILY INDIVIDUAL REVIEW (IR)
Guidelines’ Key Points Checklist
The following checklist is intended to help staff ensure a project’s compliance with the
City of Palo Alto’s Single-Family Individual Review Guidelines. These Key Points,
illustrated in the Guidelines booklet, are techniques intended to help projects meet all five
Guidelines. Some are not applicable to new two story homes and some are not relevant
to second floor additions. This checklist should be used by applicants to communicate how a new single
family home or second floor addition will meet the five guidelines for approval in accordance with Zoning
Code Section 18.12.110(d). It is the responsibility of the applicant to complete and submit this checklist
with all other required materials during the application intake meeting. Staff may make further notations
on the checklist during the review process, as applicable. If a key point is not relevant to a project, the
“N/A” box can be checked.
Project Address: ________________________________ Date: _____________________
Checklist completed by: _____________________________________________________
Guideline 1: Site Planning Key Points
Approval Criterion: The driveway, garage and house shall be placed and configured to reinforce the neighborhood’s
existing site patterns (i.e. building footprint configuration and location, setbacks, and yard areas) and the garage and driveway shall be subordinate to the house, landscape and pedestrian entry as seen from the street.
Technique Used N/A Guideline 1 Key Points
Locate driveways and minimize paving to diminish the driveway’s presence and to highlight yards and pedestrian entryways.
Locate garages to be minimally visible or significantly less prominent than the house. Attached garages could be a one-car garage, narrower in width relative to the house,
setback from the house’s front façade, or otherwise subordinated to the house.
Configure the site plan and footprint of the house so it is a “custom fit” with the
neighborhood. Avoid imposing a compact rectangular building footprint on the site if adjacent homes have sprawling, elongated or irregularly shaped footprints.
Create landscaped open space between homes to respond to the neighborhood context.
Locate an upper floor well back from the front façade and/or away from side lot lines if the
home is adjacent to small or one-story homes.
Avoid placing a second story such that it would emphasize the garage.
Explanation (if needed): ______________________________________________________________________
__________________________________________________________________________________________
Staff Use Only Project Number: _______________________
Project Planner: ________________________________ Review Date: __________________
Guideline 2: Height, Mass and Scale Key Points
Approval Criterion: The scale (perceived size), mass (bulk or volume) and height (vertical profile) of a new house or
upper story addition shall be consistent with the existing neighborhood pattern with special attention to adapting to the height and massing of adjacent homes.
Technique Used N/A Guideline 2 Key Points
Avoid overwhelming adjacent one-story homes with large masses, monumental forms and sharp contrasts in height. Incorporate a lower height and profile and place more floor area
on the first level than the second level whenever possible.
Avoid first floor levels placed high above ground level, tall wall planes, boxy forms, and strong vertical elements, which accentuate mass and scale.*
Avoid a significant height contrast between adjacent roof edges including single-story roof
edges.
Place floor area within the roof volume to mitigate height, mass and scale.
Locate smaller volumes in front of large volumes or choose appropriate roof pitches and forms to manage perceived height.
Avoid large unused attics and tall ceiling heights at perimeter walls. Instead, use the
underside of the roof form to define ceilings to provide interior volume.
*Flood plain properties – when a high first finished floor is required and a new two story home is proposed adjacent to an
existing one story home(s), additional techniques may be needed, such as placing a greater percentage of floor area at the
ground floor than the second floor, and lowering plate heights at all floors.
Explanation (if needed): ______________________________________________________________________
__________________________________________________________________________________________
Guideline 3: Form and Rooflines Key Points
Approval Criterion: The architectural form and massing shall be carefully crafted to reduce visual mass, and distinguish the house’s architectural lines or style. Roof profiles shall enhance the form, scale and proportion of
primary and secondary house volumes, while rendering garage and entry forms subordinate in mass and scale to principal building forms. Upper floor additions shall also be balanced and integrated with the existing building.
Technique Used N/A Guideline 3 Key Points
Avoid forcing building mass and rooflines to fit a detailed or interior design-driven floor plan. Test roof layouts and massing profiles early in the design process and adjust floor
plans to create the best three-dimensional design.
Consider using the vocabulary of a particular architectural style to define a home’s visual form, compose its massing and determine roof pitches, eave lines and details.
Avoid awkwardly placed second floor additions, poorly combined roof forms and inconsistent roof slopes when planning an addition. Primary and secondary volumes
should be carefully proportioned and spaced for a unified design.
A good basic massing strategy is to use a few simple, well-proportioned masses accented
with a few smaller elements, such as bay windows or dormers. Using too many elements can create clutter.
Adjust roof layout, ridge orientation, and roof pitch; vary eave lines, and lower eave height
facing the street or adjacent homes, where beneficial to reduce mass and enhance form.
Explanation (if needed): ______________________________________________________________________
__________________________________________________________________________________________
Guideline 4: Facades and Entries
Approval Criterion: Publicly viewed facades shall be composed with a clear and cohesive architectural expression
(i.e the composition and articulation of walls, fenestration and eave lines), and include visual focal point(s) and the
supportive use of materials and detailing. Entries shall be consistent with the existing neighborhood pattern and
integrated with the home in composition, scale and design character. The carport or garage and garage door
design shall be consistent with the selected architectural style of the home.
Technique Used N/A Guideline 4 Key Points
New facades and additions should have a unified visual character, not a collection of
fragmented forms and elements. Give special attention to elevations on the side of the house and corners that may be highly visible from the street.
When composing facades, employ a clear use of line, order, hierarchy, and stylistically consistent windows, and give attention to proportion and adequate spacing between visual
focal points.
To add visual interest and character to the design, incorporate architecturally distinctive
eaves, window patterns, shapes or groupings and use of materials.
Avoid using over-scaled or monumental entries that aggressively stand out on the house
or in relationship to other houses in the neighborhood due to size, height or vertical proportion. Where there is a prevailing neighborhood pattern for an entry type, such as
front porches or entry courts, that entry type should be considered for the design.
Design garages, garage door openings and door panels to be modest in scale and
architecturally integrated with the home, when garages are visible from the street.
Explanation (if needed): ______________________________________________________________________
__________________________________________________________________________________________
Guideline 5: Windows and Decks Key Points
Approval Criterion: The size, placement and orientation of second story windows and decks shall limit direct sight lines into windows and patios located at the rear and sides of adjacent properties in close proximity.
Technique Used N/A Guideline 5 Key Points
Gather information on neighboring homes and yards and locate potential privacy-sensitive areas on your site plan before you design.
Design the house to mitigate possible privacy impacts by providing non-transparent
glazing, significant landscaping, permanent architectural screens or sufficient distance between houses. When necessary to achieve greater privacy, re-orient the direction of
windows or decks or adjust window size or sill height.
Avoid windowless building walls, especially walls visible from the street. Use smaller upper floor windows and/or selective glazing at privacy sensitive locations. Windows may still
remain operable, particularly for ventilation for bathrooms and egress for bedrooms.
Second story decks are permitted only to the extent that they result in minimal loss of privacy to side or rear facing properties. Deck size and potential use may be considered in
determining potential loss of privacy.
Explanation (if needed): ______________________________________________________________________
__________________________________________________________________________________________
for discussing or mediating reasonable solutions and alternatives. These lots were set up for small
ranch-style homes, before flood requirements. In the absence of a plan for the evolution of our
neighborhoods, administrators and developers are setting precedents that cannot be undone. Once
3000 square feet is built right next to our home, the privacy and livability of our home will be forever
compromised. Other neighbors are also concerned about the precedent this sets.
I think you will see from our appeal package that we have worked in good faith with the City planners
since this design process started in July 2013. We understand that two story homes will be built in
our neighborhood, and that new owners want to maximize the size and value of their homes. But
until a thoughtful approach to residential development is determined, or the guidelines are not based
on subjective opinion of city administrator, many of us will suffer from homes squeezed within
sneezing distance. We continue to be very willing to sit down and work with an impartial mediator to
discuss solutions.
Councilman Wolbach, thank you for your time reading this email and our appeal package. We hope
that you will consider removing the issue from the Consent Calendar and direct the planning staff to
re-examine the project and maintain a true rear setback -or provide other mitigation by re-siting the
property on the lot or reducing the size of the home. If you have any suggestions or questions,
please feel free to reply. We have included streetscapes that show the impact of this large
construction on our home and the site map that indicates the setbacks.
Sincerely,
Jeanie and Ted Stephens
4
City of Palo Alto (ID # 5362)
City Council Staff Report
Report Type: Action Items Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Policy and Procedures 1-48/ASD (Procedure for Sale/Transfer
of Surplus City –Owned Real Property);
Title: Policy and Services Committee Recommends the City Council Amend
Policy and Procedure 1-48/ASD (Procedure for Sale/Transfer of Surplus City-
Owned Real Property) to Address Unsolicited Offers and Provide for Broad
Marketing of City Lands Through Use of Electronic Media
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION
The Policy and Services Committee recommends that the Council amend “Policy and
Procedures 1-48/ASD (Procedure for Sale/Transfer of Surplus City –Owned Real Property” as
shown in Attachment B.
EXECUTIVE SUMMARY
The Palo Alto Municipal Code and the City’s Administrative Policies and Procedures manual
address the sale of City owned surplus property and property leasing procedures. On November
13, 2014, the Policy and Services Committee reviewed “Policy and Procedures 1-48/ASD
(Procedure for Sale/Transfer of Surplus City –Owned Real Property” to ensure that appropriate
and transparent guidelines were in place.
The Committee recommended that P&P 1-48 be retained with two amendments:
a. Specify that unsolicited offers will be referred to Council if the City Manager
recommends it.
b. Provide that City properties are broadly marketed using appropriate modes of
advertising, including electronic media.
By a 2-1 vote (Schmid no) the Committee recommends that Council adopt these changes (see
Attachment B).
City of Palo Alto Page 2
BACKGROUND
On September 8 and 15 of 2014, the Council reviewed and discussed the Santa Clara County
Civil Grand Jury Report, “Reduced Transparency and Inhibited Public Input and Scrutiny on
Important Land Use Issues.” On September 15, Council approved the City’s response to that
report. In addition, the Council referred certain matters relating to real property to the Policy
and Services Committee for further review and recommendations. Documents to be forwarded
to the Committee for review included: an inventory of donated lands and the existing Policy
and Procedures regarding 1-48 (Sale/Transfer of Surplus City owned Properties) and 1-11
(Leased Use of City Land/Facilities).
For the November 13, 2014 Policy and Services Committee review, staff had four
recommendations (ID # 5228- Attachment A):
1. Review and accept the attached Inventory of Donated City-Owned Properties, which will
be posted on the City’s website as directed by Council;
2. Review and Consider Potential Revision to Policy and Procedures 1-48/ASD (Procedure
for Sale/Transfer of Surplus City –Owned Real Property);
3. Consider recommending an amendment to Policy and Procedure 1-48 to specifically
address unsolicited offers to lease or purchase City owned properties;
4. Review policy and Procedure 1-11/ASD (Leased Use of City Land/Facilities) and consider
whether amendments are needed.
Recommendations 1 and 4 were reviewed by Policy and Services, approved by a 3-0 vote, and
forwarded to Council for action. On December 15, 2014, Council accepted the Committee’s
recommendation on those items.
DISCUSSION
The Committee then followed up with additional discussion of recommendations 2 and 3.
On November 13, 2014, the Policy and Services Committee decided by a vote of 2-1 (Schmid
no) to retain the existing language in Policy and Procedures 1-48/ASD (Procedure for
Sale/Transfer of Surplus City –Owned Real Property) and to add additional language. The
Committee proposed the following substantive changes:
a. Specify that unsolicited offers will be referred to Council if the City Manager
recommends it.
b. Provide that City properties are broadly marketed using appropriate modes of
advertising, including electronic media.
Language implementing these changes to P & P 1-48/ASD can be found in Attachment B.
City of Palo Alto Page 3
One dissenting Committee member questioned whether these changes are sufficient to provide
the public with adequate information and opportunity for input. The Committee discussed
alternatives and voted to recommend the attached changes to Council.
Attachments:
Attachment A - CMR 5228 (PDF)
Attachment B - Policy Service Meeting 11-13-2014 Minutes (PDF)
Attachment C: Amended Policy & Procedure 1-48/ASD ("Procedure for Sale/Transfer of
Surplus City-Owned Real Property") (DOCX)
City of Palo Alto (ID # 5228)
Policy and Services Committee Staff Report
Report Type: Agenda Items Meeting Date: 11/13/2014
City of Palo Alto Page 1
Summary Title: Review of City Owned Surplus Properties Disposition and
Lease Procedures
Title: Referrals from Council Related to City Real Property Matters: (a)
Review and Accept Inventory of Donated City Owned Properties; (b) Review
and Recommend Revisions to Policy and Procedure 1-48 (Sale/Transfer of
Surplus City Owned Real Property), Including Development of Procedures for
Addressing Unsolicited Offers to Lease or Purchase City Land; and (c) Review
and Recommend Revisions to Policy and Procedure 1-11 (Leased Use of City
Land/Facilities)
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION:
Staff recommends that the Policy and Service Committee:
1. Review and accept the attached Inventory of Donated City-Owned Properties, which will
be posted on the City’s website as directed by Council;
2. Review and Consider Potential Revision to Policy and Procedures 1-48/ASD (Procedure
for Sale/Transfer of Surplus City –Owned Real Property);
3. Consider recommending an amendment to Policy and Procedure 1-48 to specifically
address unsolicited offers to lease or purchase City owned properties;
4. Review policy and Procedure 1-11/ASD (Leased Use of City Land/Facilities) and consider
whether amendments are needed.
EXECUTIVE SUMMARY
The Palo Alto Municipal Code and Palo Alto’s administrative Policies and Procedures manual
contain sections regarding the sale of City owned surplus property and leasing procedures. The
procedures will be discussed and reviewed in order to assure that they provide the appropriate
guidelines to dispose of surplus property or execute leases of City property.
BACKGROUND
On September 8 and 15, 2014, the Council reviewed and discussed the Santa Clara County Civil
Grand Jury Report “Reduced Transparency and Inhibited Public Input and Scrutiny on Important
Attachment A
City of Palo Alto Page 2
Land Use Issues.” On the 15th, the Council approved the City’s response to that report. In
addition, the Council referred certain matters relating to real property to the Policy and
Services Committee for further review and recommendations, including receipt of an inventory
of donated lands and a review of Policy & Procedures 1-11 and 1-48.
DISCUSSION
Land Inventories
Inventory of Lands Donated to City
Using on-site or easily accessible records, Staff has developed a list of real properties that have
been donated to the City (Attachment A). This list is reasonably complete to our knowledge, but
there remains a possibility that it omits some properties that may have come into City
ownership over time through donation. To establish a comprehensive and definitive list, Staff
would need to purchase and review title reports and recorded deeds on each and every City-
owned property to establish its ownership history and the manner of initial conveyance to the
City. Staff estimates this effort would cost $500 and $750 per property report (for more than
100 plus properties), plus extensive staff time for research and analysis.
Inventory of Purchased and Donated City Owned Real Property
It is staff’s goal to include the information on donated properties within a public database that
will include the majority of City owned real property, both donated and purchased. (Certain
security-sensitive information will not be included, as discussed below.)
Many cities post and maintain an inventory of city owned properties on their websites. The Real
Estate Division of ASD has been working on developing a database of City owned real property
for public use that will be posted and maintained on the City’s website. The property database
will show the current real estate assets that are held by the City in addition to other pertinent
information. The majority of the City owned properties are open and available for public use,
including parks, libraries, museums, community centers, parking areas and publicly-accessible
administrative offices. These lands will appear on the posted inventory.
There are other City lands and facilities that support and serve the public but are not generally
open for public use. These include lands containing utility infrastructure and equipment, fire
stations and police stations. In some cases – such as facilities housing gas, electric and water
infrastructure – disclosing details regarding location and use of facilities may expose the City
and its residents to security risks. The Real Estate Division is working with the Utilities
Department to determine which properties can or should be included in the proposed
database.
The draft proposed database to be posted on City’s website may include information regarding
Assessor’s Parcel Number, address, size, use, zoning, tenants, and links to parcel maps as shown
Attachment A
City of Palo Alto Page 3
on the draft table (illustration only) below. The property database will need to be updated
periodically to ensure the accuracy of the disclosed information.
# APN ADDRESS DESCRIPTION TYPE LAND SIZE BUILDING
SIZE
ZONING ACQUIRED
BY
LEASED Parcel Map COMMENTS
26 120-03-084 520 Cowper
and Webster/
b/n
University
and Hamilton
Parking Lot
"J"
Parking
Structure
1.38 ac 209,118 sf PC3499 Purchase No new last
partition of
APN - former
034
27 120-06-039 1130
Middlefield
Residential
Lot
Residential
Lot
0.13 ac N/A R-1 Purchase No
28 120-06-076 1142
Middlefield
Residential
Lot
Residential
Lot
0.13 ac N/A R-1 Purchase No
29 120-14-016 251 Waverly
Street
Johnson Park Park 2.06 ac N/A PF Purchase No
30 120-14-088 351 Lytton Parking Lot
"K"
Parking Lot 0.48 ac N/A PF Purchase No
31 120-14-095 Bryant and
Lytton
Portion of
Parking Lot
"K"
Parking Lot 0.08 ac N/A PF Purchase No
32 120-15-073 Cowper and
Hamilton
Parking Lot
"H"
Parking Lot 0.07 ac N/A PF Purchase No
Sale of City Land
Policy and Procedure (P&P) 1-48/ASD (Procedure for Sale/Transfer of Surplus City –Owned
Real Property)
The City has a Policy and Procedure addressing the sale of surplus city-owned real property
(P&P 1-48/ASD), (Attachment B). The P&P specifies two methods by which potentially-surplus
properties are identified: (a) periodic inventory review by the City’s Real Property Manager
(RPM) , and (b) notification from City departments to the Real Property Manager that a
property is no longer of use. The P&P establishes procedures for considering such properties.
The Real Property Manager notifies all City departments that the property may be available for
other department use, and notifies public agencies that it may be available for sale. The
property(ies) question is brought to Council for a determination whether to retain the property
or dispose of it using “an open and competitive bid process,” including an independent
appraisal and formal Bid Proposal Package. Council approves the Bid Proposal Package and
later, after bids are received and evaluated, either rejects all bids or accepts a bid that best
serves the public interest.
Unsolicited offers to lease or purchase City owned properties
The majority of City owned land and properties are in use as public parks, open space, public
facilities, parking lots and structures, and sites that are used by Utilities Department.
Attachment A
City of Palo Alto Page 4
Presently, there is not a specific, written policy regarding the process for considering and
resolving unsolicited, outside offers to lease or purchase City owned properties. While it is not
common for the City to receive such offers, it does occur from time to time. When inquiries or
proposals concerning the lease or purchase of City owned property are received by staff, it is
staff’s practice to refer them to the Real Estate Division for review. Any inquiries about
dedicated parkland, open space or utility sites are rejected immediately.
Other proposals, if credible and warranting further evaluation and discussion, are forwarded to
the City Manager, City Attorney and ultimately Council for further review. If such a review
suggested that it may be in the public’s interest to designate a property as surplus and consider
it for sale, the property would be processed through the steps in P&P 1-48, including an
independent appraisal, notifying other public agencies and initiating an “open and competitive
bid process” to consider the property for sale.
The Committee may wish to recommend that the Council amend P&P 1-48 to acknowledge the
potential for an unsolicited offer and clarify procedures that staff should use to address and
resolve such offers.
Lease of City Land
The City Charter and Municipal Code
The Palo Alto Charter provides that the Council may lease or sub-lease lands owned or leased
by the City, for terms up to a maximum of fifty years. (Charter, Article VII, Sec. 7.) By ordinance,
the Council has delegated to the City Manager authority to rent or lease City real property for
any amount for up to three years. (Municipal Code section 2.30.210(h).) The Manager may rent
or lease property at Cubberley Community Center for up to five years. (Municipal Code section
2.30.210(h).)
Review policy and Procedure 1-11/ASD (Leased Use of City Land/Facilities)
Policy and Procedure 1-11/ASD (Attachment C) establishes procedures for the lease of City real
property and facilities. P&P 1-11 establishes procedures for leasing City property. It specifies
that use of City property by profit and/or non-profit entities is appropriate only when such
development and operation will further public use or provide a public benefit. The policy calls
for consistency with existing City policies, plans, services and/or procedures, and requires open
competitive and/or bid processes that will be used to solicit proposals or provide opportunities
to others prior to awarding an option or lease. The policy does not apply to short-term interim
leases where no significant change in use is proposed.
Policy and Procedure 1-11/ASD provides a detailed guideline and process to execute options to
lease or lease City owned properties. The RFP process in the Public Notification section calls for
announcement in the local newspaper of general circulation. The City can advertise its available
real estate inventory through direct marketing techniques such as request for proposals (RFPs),
advertising, exposure through real estate commercial websites such as Costar and LoopNet,
Attachment A
City of Palo Alto Page 5
and multiple listing services. In addition, listings can be posted on the City’s website for a
certain time period to gain maximum marketing exposure.
Survey of Other Jurisdictions
A review of the policies and procedures covering surplus disposition and leasing of real assets
owned by government and public agencies reveals many similarities and consistencies
(Attachment D). Properties owned by public agencies that are not utilized and needed in daily
operations are given consideration to be used for park, recreational, educational, and
affordable or public housing. They are offered to other public agencies and if there no takers,
they are placed for sale in the market place to the highest bidders. In regards to leasing City
owned properties or renting space from other landlords, the authority given to City Managers
without council authorization ranges from one to three years. Long term lease agreements
(more than three years) are typically approved by majority vote of the elected officials.
TIMELINE
Staff will continue to work on the property database table and report the results back to the
Policy & Services Committee in the early part of 2015.
RESOURCE IMPACT
Depending on the direction given, there will be a cost to acquire title reports for the City owned
properties. The staff time to develop the database and conduct additional research has been
budgeted.
POLICY IMPLICATIONS
Review of the existing City’s Policy and Procedures regarding the surplus property and leasing
process is consistent with policies and programs in the Comprehensive Plan promoting value
enhancement of City’s assets for the purpose of public benefits.
ENVIRONMENTAL REVIEW
A review of the existing City Policies and Procedures regarding surplus real property and leasing
does not constitute a project for purposes of the California Environmental Quality Act (CEQA).
Attachments:
Attachment A - Gifted City Properties Table (DOCX)
Attachment B - Procedure for Sale/Transfer of Surplus City Owned Real Property (PDF)
Attachment C - Leased Use of City Land/Facilities (PDF)
Exhibit D - Property Use Policies Government Agencies (DOCX)
Attachment A
Attachment A
Inventory of Donated City Lands
1
NO #
ASSESSOR
PARCEL
NUMBER
ADDRESS DESCRIPTION TYPE LAND
SIZE
BUILDING
SIZE
COMP
PLAN ZONING ACQUIRED
BY LEASED PARCEL
MAP LINK COMMENTS
1 003-28-044 851 Center Drive, at
Channing Avenue Eleanor Pardee Park Park 9.6 ac +/- N/A PF Gift No
2 003-46-001
1120 Hopkins (777
Embarcadero
Road/1276 Harriett
Ave./1305
Middlefield/1451
Middlefield)
Rinconada Park/Lucie
Stern Community
Center/Children's
Library/Theatre, Zoo,
Boy Scouts/1305
Middlefield
City Facility 18.45 ac
1,907 sf + 2,433
sf decking
3,360 sf
Children's
library; 710
Melville 17,748
sf; LS Wing
13,865 sf;
Children's
Museum
11,922 sf
PF Gift
Community Services,
Children's Library, Boy
Scouts
3 003-46-006 799 Embarcadero Road
Palo Alto, CA 94303 Fire Station #3 City Facility 0.085 acres
3,506 sf +216 sf
storage bldg. =
3,722 sf
PF Gift PAFD, Sprint
4 003-47-020 1213 Newell Rd./1313
Newell
Cultural/Art
Center/Main Library City Facility 5.17 acres
26,582 sf
library; CC -
29,994 sf
PF Gift Community Services,
Library
5 120-16-099 351 Homer Rhona Williams
Property Lease-Long Term 0.60 ac 5,596 sf PF Gift Museum of American
Heritage
6 120-17-088 915 Scott Ave. Scott Mini-park Park
0.26 ac per
GIS (0.04 ac
per PA web
site)
1,257,652 sf PF Gift No
sf from GIS
unrealistic - lot
beside the Post
Office
7 124-07-032 474 Embarcadero Lawn Bowling Green
Club Park Park
1.62 ac
(0.12 ac per
GIS, (-)Seale
addition)
1,950 sf PF Gift PALBC, Inc.
8 124-07-040 1431 Waverley St. Gamble Garden Center Lease-Long Term 2.38 ac 7,662 sf PF Gift
Elizabeth F. Gamble
Garden non-profit
Horticultural
Foundation
9 182-46-006 Foothill Park
Foothills Park-
Reservation Parcel
(1996)
Park/Foothills 7.70 ac N/A Gift PF Gift No
Deed restriction
Conservation use
10 182-27-003 Foothills Park
Foothills Park at
Moody Rd. and Central
Dr.
Park/Foothills 28 ac +/- N/A PF Gift No
Attachment A
Attachment A
Attachment A
Attachment A
Attachment A
Attachment A
Attachment A
Exhibit D
Federal:
Federal Real Estate properties that are no longer needed by the federal government may be
made available for public uses to state and local governments, regional agencies, or non-profit
organizations. Public uses for properties are those that are accessible to and can be shared by
all members of a community, and include community centers, schools and colleges, parks,
municipal buildings and many more.
GSA’s Office of property Disposal notifies state and local agencies of the availability of any
surplus federal real property that may be eligible to acquire under certain laws. These laws
allow property to be transferred to public agencies and institutions at a discount up to 100
percent of the fair market value for:
Public health or educational uses
Public Parks and Public Recreational Areas
Historic monuments
Homeless assistance
Correctional institutions
Port facilities
Highways
Wildlife Conservation
Self-help housing
Law Enforcement and Emergency Management Response (PDC)
Negotiated Sales to Public Agencies
Federal agencies must obtain prior approval from the GSA regional office having jurisdiction for
the proposed leasing action, before initiating a leasing action involving 2,500 or more square
feet of such special purpose space. GSA’s approval must be based upon a finding that there is
no vacant Government-owned or leased space available that will meet the agency’s
requirements. Various Federal Departments are authorized to enter into leases for up to 5 yrs.
http://www.gsa.gov/portal/content/102015 http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=2.&title=5.&part=1.&chapter=5.&article=6.
State of California:
Attachment A
The Legislature has set forth its belief that there is an identifiable deficiency in the amount of
land available for recreational purposes and that surplus land, prior to disposition, should be
made available for park and recreation purposes or for open-space purposes.
(a) A written offer to sell or lease for the purpose of developing low- and moderate-income
housing shall be sent to any local public entity, as defined in Section 50079 of the Health and
Safety Code, within whose jurisdiction the surplus land is located. Housing sponsors, as defined
by Section 50074 of the Health and Safety Code, shall be sent, upon written request, a written
offer to sell or lease surplus land for the purpose of developing low- and moderate-income
housing. All notices shall be sent by first-class mail and shall include the location and a
description of the property. With respect to any offer to purchase or lease pursuant to this
subdivision, priority shall be given to development of the land to provide affordable housing for
lower income elderly or disabled persons or households, and other lower income households.
http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=11011.2http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=2.&title=5.&part=1.&chapter=5.&article=8.
For Council’s information, below are some other jurisdictional treatments of city owned land
and facilities:
Oakland:
The City Manager or his designee can authorize lease, license or rent for up to one (1) year on
city owned or other properties. Where the rental rate is more than 25% below the appraised
market value of the property, City Council approval will be needed. No lease of real property
shall be per term in excess of 66 yrs. In the disposition process regarding surplus properties,
first, City’s Planning Commission will verify zoning. If properties are not needed for city
functions and use, then they will be offered to other public agencies. If no interest is shown,
properties can be declared as surplus by the City Council and offered for sale through a public
auction or a negotiated sale process. The City Manager is authorized to dispose or acquire any
property interest that does not exceed $25,000.
http://clerkwebsvr1.oaklandnet.com/attachments/15495.pdf
http://clerkwebsvr1.oaklandnet.com/attachments/13954.pdf
San Jose:
Real estate staff conducts an internal review to explore if a property can be used by the city’s
various departments. If no city use is identified, notification to other public agencies is issued to
use the property for: public housing, open space, and educational use. If no interest is shown,
the property may be offered for surplus sales by the City Manager if it has a market value of
less than $500,000 and it is not independently developable. If the property is not declared
surplus by action of City Manager, the City Council will make an alternative decision for the use
of the property. The City Manager is authorized to enter into and execute for and on behalf of
the City of San José, without the prior approval of the city council leases, licenses or other
agreements for use of property where the city is a lessee/user or lessor/grantor, where the
Attachment A
rental payments or other fixed consideration do/does not exceed a cumulative total of two
hundred fifty thousand dollars $250,000.
http://www.sanjoseca.gov/documentcenter/view/15177 http://sanjose.amlegal.com/nxt/gateway.dll/California/sanjose_ca/sanjosemunicipalcode?f=templ
ates$fn=default.htm$3.0$vid=amlegal:sanjose_ca
San Diego:
San Diego has developed a comprehensive policy for City-owned properties. The real estate
asset management staff prepare a comprehensive portfolio management plan on an annual
basis, with periodic review and an as needed update to the Council. The Mayor reviews real
estate assets not used for municipal purposes and determine the appropriate use of the
property. The properties not needed for City and Public use may be available for lease or sale.
The City will optimize the sale price or rent based on current market value, prevailing economic
conditions, market trends, and any special benefits from sale or lease. San Diego’s real estate
policy allows for exclusive negotiated sales under certain conditions such as a landlocked
parcel, sale to a contiguous owner to correct the site deficiency, offers from other government
agencies, and qualified nonprofit organizations. The Mayor is authorized to enter into lease
contract for a period up to three years. Leases in excess of three (3) years are approved by a
majority vote of the Council.
http://docs.sandiego.gov/councilpolicies/cpd_700-10.pdf
Sunnyvale:
The City Council awards all purchases, sales or leases of real property for the city where the
purchase or sales price or lease cost exceeds $75,000. The City Manager awards all purchases,
sales or leases of real property for the city where the purchase or sales price or lease cost is
$75,000 or less, or where the lease results in revenue to the city and is for a period less than or
equal to fifty-five years. The City Council may enter into a lease of city property for a term in
excess of fifty-five years.
https://sunnyvaleca.legistar.com/LegislationDetail.aspx?ID=1737410&GUID=F4637E44-5AFB-41AB-851C-C61F4C9ACBF5&FullText=1
Dublin:
If the City Manager determines that a City owned property with the value of more than $5,000
is not required by any other public use, he or she may dispose the property as surplus and
authorize a public sale. If the surplus property has an estimated market value of five thousand
($5,000) or more, City manager shall dispose the property with Council approval.
Htthttp://www.codepublishing.com/ca/dublin/Dublin02/Dublin0238.html
p://www.codepublishing.com/ca/dublin/Dublin02/Dublin0236.html
Mountain View
Attachment A
City Council Policy A-10 spells out the delegated contracting authority for the Department
Heads, the City Manager and the Council. The City Council has sole authority for any lease or
sale of real property where the value exceeds $100,000. The $100,000 threshold for leases is
the cumulative rent for the base term, i.e., if there is a five-year lease where the annual rent is
$20,000 or more, the lease would have to go to the Council for approval in Regular session.
There is no term-of-years threshold where a lease exceeding a certain term has to go to the
Council; again, it is driven by value. Any lease that is within the Council’s authority first goes to
the City Council in closed Session for direction on price and terms of rental payment and the
authority to negotiate a lease. If Staff is successful in negotiating a lease that is consistent with
Council direction on price and terms, the lease is then brought before the Council in regular
session for approval, either as a Consent item (non-controversial) or New Business (if
potentially controversial).
The City of Mountain View does not have an adopted and published set of processes and
procedures. With that said, the City follows the State laws governing the process for selling
public lands, including making the property available to local school districts, park authorities
and affordable housing providers.
Attachment A
POLICY AND SERVICES COMMITTEE
DRAFT MINUTES
Page 1 of 17
Special Meeting
Thursday, November 13, 2014
Chairperson Price called the meeting to order at 6:04 P.M. in the Council
Conference Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Klein, Price (Chair), Schmid
Absent: Scharff
ORAL COMMUNICATIONS
None
AGENDA ITEMS
1. Review and Discussion of the Inventory of Donated City Owned
Properties, Policy and Procedure 1-48 Sale & Transfer of Surplus City
Owned Properties, Developing Guidance and Clarification Regarding
Unsolicited Offers to Lease or Purchase City Land, and Policy and
Procedure 1-11 Leased Use of City Land and Facilities.
Lalo Perez, Chief Financial Officer, stated the item was referred to the Policy
and Services Committee (Committee) by the City Council meetings of
September 8th and 15th because of the Santa Clara Civil Grand Jury finding.
He asked the Committee for directions on how they preferred to proceed;
splitting the items or responding as a whole.
Chair Price stated her preference was to hear the items one by one.
Mr. Perez provided a list of City owned properties and restrictions included
within any one donation. The listing was reflective of the 10 properties
donated that the current Staff was aware of. In order to gain more detailed
information on other donations the Staff would need to request a
conveyance which could cost between $500 and $750 per property report
from the county. He made a correction on property Item Number 6; 915
Scott Avenue, the Staff comments were not related to the specific property
and should be omitted. Under the column “Leased” it should read “Used by
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or Leased” because some of the properties were being used by City
functions. Staff proposed posting the list on the City’s website for citizen
review; the list would be updated as future donations or change of use
occurred.
Council Member Klein asked for another column to identity the donor of
property and a footnote on Item Numbers 9 and 10. He did not favor
spending additional funds on conveyance reports; the City owned over 100
properties and that would be a large sum with an uncertain gain.
Council Member Schmid suggested a general idea of when a property or land
was donated would be nice information. He was concerned with the listed
size of the 915 Scott Avenue site; it appeared to be 1.2 million square feet.
Hamid Ghaemmaghami, Manager of Real Property, stated that was not the
correct size; although, Staff was unable to verify the correct size at the
present time.
Council Member Schmid noted there was a segment on the table of land, he
asked if the list was available or would be to the community.
Mr. Ghaemmaghami stated the City had 140 property parcels; consisting of
land and buildings. The reason for the list was to show the Committee an up
to date listing; the concern of uploading the entire list on the website was
for security purposes. The Utilities Department was uneasy revealing certain
locations.
Mr. Perez mentioned the intent of the list began with the Infrastructure Blue
Ribbon Commission (IBRC) who needed a listing of City properties for
determining the infrastructure needs. Having the Committee review the
complete list and request suggestions for a clearer understanding prior to
uploading the information onto the website would be helpful.
Council Member Schmid understood there was sensitive data on a list such
as this. The reason behind the discussion was public land being fenced off
from the public. There was a second property in a similar situation in the
center of the Baylands. He asked whether the telegraph building was City
property.
Mr. Perez asked if that was the ITT property.
Council Member Schmid stated yes.
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Mr. Ghaemmaghami stated the ITT property; land, was owned by the City
with an easement granted to ITT.
Mr. Perez stated the condition of the easement was the facility would
continue to be used for radar purposes. Staff had been in contact with the
holder of the easement to inquire whether or not they were ready to release
or sell back the easement. As of yet, the party was not ready to move
forward with the release or sale of the easement and they maintain the
conditional use remains the same.
Council Member Schmid had heard informally that that site had not been in
use for many years. It was important from a park perspective to have the
easement eradicated although the site was important for the history of Palo
Alto. His question was whether the site would be on the list as a City owned
property.
Mr. Ghaemmaghami stated yes, it was City owned property and would be on
the list.
Mr. Perez mentioned the completed list would contain the properties owned
or leased by the City and the conditions or restrictions attached to said
properties.
Chair Price asked why there was a need for a Comprehensive Plan column on
the listing of property.
Mr. Perez stated Staff would review the item and see whether it was a
necessity.
Chair Price understood the Assessor’s Parcel Number (APN) was a standard
manner in which to identify properties but she asked whether there was a
need for a parcel map link for the public.
Mr. Perez said that question was brought up amongst Staff and the
discussion of a Google Map that showed the property. The idea behind the
parcel map was if the community desired to check with the county that
would have the necessary information.
Council Member Klein suggested doing away with the column of “Acquired
By” because it was an inventory of City donated lands which meant they
were acquired by gift. There were a lot of columns and he desired to reduce
the unnecessary ones.
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Chair Price clarified Staff was requesting the Committee to review and
accept the listing.
Mr. Perez agreed and noted the Committee had provided ample
recommendations which would allow Staff to continue to improve the list
prior to uploading to the website.
Chair Price asked if Staff required a separate Motion per item.
Mr. Perez left the decision to the Committee.
James Keene, City Manager, stated Motioning individual items appeared
simple enough without being time consuming.
MOTION: Council Member Schmid moved, seconded by Council Member
Klein that the Policy & Services Committee accept the attached Inventory of
Donated City Owned Properties, which will be posted on the City’s website as
directed by Council.
MOTION PASSED: 3-0 Scharff absent
Mr. Perez explained Staff was interested in any suggested revisions in the
procedure of the sale/transfer of City owned real property which was located
in Policy and Procedures 1-48/ASD. Mr. Ghaemmaghami and his staff
performed periodic reviews of the City owned properties to determine the
need. There were incidents where a department would approach the Real
Estate division to inform them they no longer had a need for their specific
facility. He provided the example of the Middlefield Well Sites; the Utilities
department and the Water Fund no longer had a need for the wells located
on the site. They have removed the property from their inventory of use and
returned it to the General Fund. The next step would be for Staff to
determine whether the property was surplus. If so, there was a process of
competitive bid for Council approval. The other options were the City
received an unsolicited offer to lease/purchase the property. The second
option did happen frequently but most recently Staff was approached with
regard to the Los Altos Treatment Plant. Typically those types of discussions
would begin with the Real Property area, if the probability warranted
discussion the City Manager and City Attorney would be approached and the
final step would be Council for further review.
Council Member Klein believed Items 2: Review and Consider Potential
Revision to Policy and Procedures 1-48/ASD (Procedure for Sale/Transfer of
Surplus City Owned Real Property), and 3: Consider recommending an
amendment to Policy and Procedure 1-48 to specifically address unsolicited
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offers to lease or purchase City owned properties, and 4: Review policy and
Procedure 1-11/ASD (Leased Use of City Land/Facilities) and consider
whether amendments are needed; were similar enough and should be linked
together for discussion and change.
Mr. Perez noted Staff had not made significant recommendations because it
was not common to receive unsolicited offers.
Mr. Ghaemmaghami stated the last surplus property the City sold was in
2006; 2460 High Street at $450,000. In the past 20 years there had been
no more than three properties sold.
Council Member Schmid asked if that location was the electric station.
Mr. Perez believed it was a pump or well site.
Molly Stump, City Attorney, mentioned when the Grand Jury addressed the
preliminary work the Staff did with the Council to consider an unsolicited
offer on the 7.7 acres of Foothills Park, they reviewed City Policy 1-48 and
did not see a specific type of circumstance described in the policy. She
acknowledged it may happen from time to time when a circumstance may
arise that was not spelled out in a specific policy. A policy was a general
statement looking forward; but when you have professional staff they were
relied upon to use their judgment when particular or specific circumstances
arise that were not spelled out. The genesis of the Grand Jury’s specific
referral was it was not Staffs’ view that more detail was needed, but rather
it was Council’s wish to focus on that specific question in response to the
Grand Jury’s struggle.
Chair Price asked Staff how they wished for the Committee to reply, making
a short statement or not.
Mr. Keene stated he had a recommendation. Typically, Staff would be
approached in some fashion for an unsolicited sale; at that point the matter
could end with Staff’s determination. The question he asked himself was
whether or not Council wanted to be apprised of an inquiry even if it was not
substantiated. In the case of an unsolicited offer that Staff felt required
Council’s attention, such as the 7.7 acres, Staff scheduled a Closed Session
with the Council for discussion for exploration. He asked whether the
Committee believed the Council would prefer to have preliminary Open
Session process to identify in a little more detail what was occurring with an
unsolicited offer. He believed it would be a worthwhile policy to put into
place with the flexibility to schedule a Closed Session or a public discussion.
The discussion within Staff had been whether more information was hurtful
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to the City; in the 7.7 acre situation there was a significant amount of
misinformation in the public which was not released by the City.
Council Member Klein favored an additional sentence or two in the policy
effectively stating, “An unsolicited offer would be considered the same as a
recommendation from a Department Head to the Real Estate Manager as to
the consideration of what should happen to the said property”. He did not
feel every offer should automatically go to Council. The Real Estate Manager
and the City Manager should be able to decide the significance of a property
offer.
Council Member Schmid felt Policy 1-48 was outdated and should be
reviewed and updated. The policy stated there should be an open and
competitive bid process, yet the procedures were to notify the departments
for discussion, notify other public agencies, then if there was an unsolicited
bid the process was to place an ad in the paper, and send flyers. He felt
there should be a more efficient process of notification.
Council Member Klein clarified if a citizen approached the City to purchase
property and the City Manager stated no; the matter would be closed. If the
City Manager agreed; his thought was to add a sentence clarifying the
beginning of the process.
Ms. Stump clarified if the City Manager agreed to sell or lease a property the
procedures for that process would begin in Section D: Should the decision be
to declare the property surplus and sell it by bid. At that point the material
would be packaged and submitted to the Council for review and decision.
Council Member Schmid clarified when the City Manager agreed to sell or
lease a property it would become an item on the City Council Agenda.
Ms. Stump stated yes.
Council Member Schmid asked if the listing of property was available for the
public prior to the 7.7 acre matter.
Mr. Perez stated the information may have been available through a staff
report or on the website indirectly at one point but not currently.
Mr. Keene clarified if there came a time in the process of selling or leasing a
City owned property there would be public notice and transparency.
Ms. Stump acknowledged the City website did not have a database of
properties readily available as was available today. That type of modern
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information came about because of the Grand Jury process. Once the 7.7
acre matter was researched Staff found it had been brought to Council a
number of times in the 1980’s and 1990’s. Current Staff and leadership had
not reviewed or received data.
Council Member Schmid stated his concern was when the current Council
received the information it was under the guise of a Closed Session where
they operated under the rules of inability to publicly state what occurred
during the discussion. At that point the options for the public to become
involved were severely limited.
Mr. Keene understood Council Member Schmid’s concern but reiterated in
the event the Closed Session produced a decision to sell or lease the
property the open process would have begun as stated in Section D. With
the existing process and policy the City could not have disposed of the
property without public input, process, and involvement.
Council Member Klein noted Exhibit A; the listing of City owned property was
by no means a list of properties that were for sale or available for lease. The
listing was a historic document that simply recorded the property owned by
the City. He expressed the current process was very public and the addition
of the sentences discussed earlier improved the procedures.
Mr. Perez stated once a property was declared surplus all of the steps
thereafter would have been followed and were in Open Session.
Ms. Stump mentioned if there was a Motion at the Closed Session on the 7.7
acres, at the most it would have been to place the item on the Open Session
City Council agenda to begin the process.
Council Member Schmid proposed to have the process as outlined when it
reached Section D to not say to go to the Consent Calendar or place an ad
in the real estate section.
Council Member Klein stated if there were other ways to publicize the
availability of a property he was open to suggestions and change to policy
verbiage.
Mr. Ghaemmaghami agreed to update the policy to incorporate the City
website and add language that property could be advertised on other
websites.
Council Member Schmid agreed.
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Mr. Keene recommended adding an all-encompassing small “d” to Section D
clarifying the utilization of the City’s availability of outreach ranges.
Council Member Klein agreed and suggested reference to electronic media.
Herb Borock read a section from the Grand Jury report. The issue was the
current Council and Staff reviewed and understood the consequences but he
suggested for future members and Staff there be language added; pursuant
to Government Code Section 54220, Policy 1-48/ASD and in addition, add
another sentence that no discussion of the potential sale of City owned
property shall be held in a Closed Session unless the property had been
declared surplus.
Ms. Stump clarified the Grand Jury did not find there was a violation of the
Brown Act. The Surplus Property Act was a state requirement that the City
had stated it would comply with. It was important to note whether it was a
mandatory process for a Charter City was something courts had not found
and maybe a future Council would choose to dispose of property in a public
way that did not comply with the state law requirements.
Council Member Schmid mentioned Section C, Item 1 read: Formally declare
the real property surplus and instruct the Real Estate Division to dispose of
the property using open bid procedures.
Ms. Stump agreed the process had to be done in Open Session although it
did not have to be done before a Closed Session.
Council Member Klein believed the current policy and procedures were
accurate and would cover the majority of property transactions the City
might have.
MOTION: Council Member Klein moved, seconded by Chair Price that the
Policy & Services Committee direct Staff to bring to the Council the section
of the procedure modified in 2 respects; 1) to cover an unsolicited offer and
only go to Council if the City Manager recommends and 2) to update the
procedures to include electronic media and exposure to the public.
Mr. Keene suggested placing the Motion changes under Section D, Item 3
subsection d as: utilize modes of advertisement including electronic media.
Council Member Klein agreed.
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER to place the Motion changes under Section D,
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Item 3 subsection d as: utilize modes of advertisement including electronic
media.
Council Member Schmid asked if Section A, Items 1 and 2 could be
performed without public knowledge.
Ms. Stump clarified up to that point it could be. Once Staff completed
Section A, Items 1 and 2, the next step was to go before Council where the
Council could decide the property was or was not be declared surplus.
Council Member Schmid stated if the property was public there should be an
opportunity for the public to be engaged.
Ms. Stump disagreed in that the Staff packaged the materials and brought it
before Council in an Open Session for the Council to decide whether to
dispose of the property or not, therefore the public could be involved.
MOTION AS AMENDED PASSED: 2-1-0 Schmid no, Scharff absent
Council Member Klein asked Council Member Schmid to clarify his no vote.
Council Member Schmid shared his concern with the way the policy read
with respect to Sections A, B, and C which implied clearly that the public
would be involved through the Council Open Session. The issue with the 7.7
acres was it was deeply involved in a Council discussion without public
knowledge or input.
Council Member Klein asked what Council Member Schmid was suggesting.
Council Member Schmid asked Staff to review Sections A, B, and C under
the terms of an open and competitive bid process. He asked for language to
ensure there would be a public process.
Mr. Keene was trying to differentiate this specific process against any other
multi-stage City procedure that Staff handled up to a point prior to Council
involvement. He understood the 7.7 acre matter was not dealt with in a
normal fashion although it was handled within the policy and procedures. He
noted there was action from a prior Committee meeting going before Council
relating to the question “what will automatically be placed on a City Council
agenda; a vote in public to go into a Closed Session.” He believed that
process, if enacted, would allow Council to make the determination on what
would be in Closed or Open Session.
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Council Member Schmid stated that was a future step not in the current
policy.
Mr. Keene understood the Committee suggested that step would be for the
future; however, that future step would be added to the current policy and
therefore would allow Council to approve or determine any scheduling of a
Closed Session.
Chair Price agreed.
Council Member Klein explained the split vote on that item from Committee
came about because that situation was already present. Any Council Member
could move a Closed Session item into an Open Session by Motion.
Chair Price asked in a situation where we have a parcel of land and we want
to swap it with a public or private entity; was there language in an existing
policy or procedures to allow Staff to pursue that.
Mr. Perez stated the property in question would need to be declared surplus
because it would not be used for its intended purpose.
Ms. Stump agreed with Mr. Perez; the title of the process being discussed
was Sale or Transfer.
Mr. Perez clarified the last Section 1-11/ASD the City could lease a property
for a term of up to 50 years under the current Charter, and by Ordinance the
Council has delegated to the City Manager the authority to lease any City
owned property for up to 3 years. The City Manager also has the authority to
rent or lease property at the Cubberley Community center for up to 5 years.
In review of other cities similar policy’s Staff was not proposing any changes
to the current policy.
Chair Price asked if the current policy did not state a designated amount
simply a designated year.
Mr. Perez stated yes. The majority of the property leased was to non-profit
so the amount would be insignificant.
Council Member Klein asked if Staff was planning on requesting title reports
for City owned property at a cost of $500 to $750 each.
Mr. Perez clarified that suggestion was intended for the first part of the
discussion and Staff was directed against the suggestion by the Committee.
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MOTION: Council Member Klein moved, seconded by Chair Price that the
Policy & Services Committee recommend no changes to Policy and Procedure
1-11/ASD (Leased Use of City Land/Facilities).
Council Member Schmid asked for clarification on 1-11/ASD under
Procedures Section A, Paragraph 2. He asked for clarification on Section B,
Item 5, the last sentence. Both sections refer to park lands open to public,
although there were large gates and no trespassing signs on the parkland
area because there may be a lease involved. There seemed to be a
disconnect.
Ms. Stump asked for clarification on what property.
Council Member Schmid was speaking to the lease on the Acterra site of 7.7
acres.
Ms. Stump explained the property was not safe for open public use at the
present time. There was an open culvert on the property and the Parks and
Recreation Department was currently looking into developing the property
for open and active public use. She clarified the property was currently
dedicated park land.
Council Member Klein believed the City had fuel stored on the property.
Mr. Perez noted there was fuel stored on the boarder of the property. He
stated he and his Staff had visited the property and vouched it was not safe
for public access. There would be a Capital Improvement Project coming to
the Council once it was determined what was necessary to complete safety
issues.
Mr. Keene noted the general intent of the land was to get it to public
accessibility and Staff relied on the Policy and Procedures language to make
the changes.
Ms. Stump mentioned there were areas within City dedicated parkland where
there were areas fenced off from public access because the City Manager or
the City Council had made a policy decision for a limited area and limited
purpose because it served the larger public purpose such as working
materials were prepared, equipment or fuel storage.
MOTION PASSED: 3-0 Scharff absent
Mr. Perez asked how the Committee wished for Staff to proceed with the
items moving forward to Council since there was not a consistent vote.
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Chair Price recommended Items 2: Review and consider potential revision to
policy and procedures 1-48/ASD (procedure for Sale/Transfer of surplus City
owned real property) and 3: Consider recommending an amendment to
Policy and Procedure 1-48 to specifically address unsolicited offers to lease
or purchase City owned properties, would move forward to the Council as
Action Items and Item 1: Review and accept the inventory of donated City
owned properties, which will be posted on the City’s website and 4: Review
Policy 1-11/ASD (Leased use of City Land/Facilities) and consider whether
amendments were needed, would be Consent Items.
2. Review and Recommendation to Council for Approval of the Draft
Legislative Program Manual and Draft Semi-Annual Legislative
Strategic Initiatives.
Richard Hackmann, Management Analyst, stated Staff was returning with an
update on the material from the October 14, 2014 Policy & Services
Committee (Committee) meeting. During the prior meeting the Committee
members had made recommended changes to the Draft Legislative Program
Manual and Draft Semi-Annual Legislative Strategic Initiatives document.
Staff had reached out to the Executive Leadership Team members to update
the Draft Semi-Annual Legislative Strategic Initiatives document and
presented was a more detailed version of initiatives. Staff was requesting
input and approval on both documents from the Committee members and a
recommendation to Council.
James Keene, City Manager, recommended Committee members review
Draft Spring 2015 Semi-Annual Legislative Strategic Initiatives document
and noted it was reflective of the collective thoughts of the Executive
Leadership Team’s thoughts on important policy perspectives to be
considered by Council. Staff wanted to explore legislative action although
understood there could not be an overabundance of bills from one city. The
recommendation desired from the Committee to Council would be for one or
two important items that mattered the most to accomplish for the
community.
Chair Price asked if Staff was requesting the discussion of sorting out the
initiates begin at the Committee level. She noted the list presented was un-
weighted and not organized by category.
Mr. Keene suggested the Committee determine whether they wished to
begin the process of selecting their priorities prior to recommending to
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Council. The legislative season was quickly approaching and usually due date
was set in the third week in January.
Herb Borock suggested when the list went before the Council who
recommended the item should be noted; whether by Staff or the Committee.
He believed the listing order should be 1) City priority, 2) Committee
proposed, and 3) Staff recommendation.
Council Member Klein recommended combining Items 3: Protect and
increase local government discretion, balancing that with City values. Ensure
that legislative or Constitutional reforms align with the City’s values and
maintain and/or enhance local discretion; and 4: Ensure that legislation,
policies and budgets retain or increase, but generally did not decrease, the
amount of local discretion held by the City and protect local decision making.
Oppose legislation, policies and budgets that reduce the authority and/or
ability of local government to determine how best to effectively operate local
programs, services and activities. The City retains the right to exceed State
goals, standards or targets. His suggestion was to drop Item 3 and note it
was covered in Item 4. He also recommended striking through the first and
last sentences in Item 4: Ensure that legislation, policies and budgets retain
or increase, but generally did not decrease, the amount of local discretion
held by the City and protect local decision making. Oppose legislation,
policies and budgets that reduce the authority and/or ability of local
government to determine how best to effectively operate local programs,
services and activities. The City retains the right to exceed State goals,
standards or targets.
Mr. Keene clarified the recommendation was to strike the first sentence
beginning with ‘Ensure that Legislative’ and strike the last sentence
beginning with ‘The City retains’.
Portion omitted due to audio difficulties.
Council Member Schmid asked where the reference was for the asterisk
under the “process” section of Legislative Advocacy.
Mr. Hackmann clarified there was no reference, the asterisk was Staff note.
The asterisk could be removed and the note left for informational purposes.
Council Member Schmid recommended removal of the asterisk for clarity of
information.
MOTION: Council Member Klein moved, seconded by Council Member
Schmid that the Policy and Services Committee accept the draft Legislative
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Program Manual with the following changes; 1) combine points 3 and 4 with
a strike through of the first and last sentence in number 4 and 2) remove
the asterisk under Legislative Advocacy after the last item in the Process
section.
MOTION PASSED: 3-0 Scharff absent
Council Member Schmid stated there were 18 items to select from and he
suggested the Committee vote to prioritize the list prior to Council review.
His recommendation was for each Committee Member to vote for their top
six priorities to narrow the list.
Council Member Klein agreed to reduce the list as suggested.
Mr. Keene stated there would be two stages to the process. The first would
be the removal of any items simply not agreeable to the Committee and the
second would be how to prioritize the remaining items. The probability of
Palo Alto writing a letter of support for a legislative item on the list proposed
by someone else would keep the City involved without placing all of the
items under their legislative request.
Council Member Schmid felt maintaining all of the items on the list was
beneficial because each of them came from a need or desire of Staff. He
believed the legislative analyst would inform the Council or Staff when an
item on the list but not prioritized was upcoming.
Mr. Keene noted the Committee had the ability to inject an item to the list
once it was reviewed.
Chair Price asked if there was a history of the number of priorities allotted
each Council Member.
Council Member Klein stated yes, it was three with the ability to add more
with a rationale.
Council Member Schmid listed his top 6 priorities; 1) Advocate for
Proposition 13 reform as it relates to ownership transfers of commercial
properties, 2) As the issue unfolds, track closely any proposed changes to
expanding the sales tax base (such as leisure services) and the possible
correlated reductions in the sales tax rate, 3) Advocate for policies that
promote the long-term stability of CalPERS, 4) Advocate for conservation
pricing for refuse, 5) Obtain grant funding for public safety, affordable
housing, recycled water, and homelessness issues and/or infrastructure, and
6) Oppose the California High Speed Rail project.
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Council Member Klein listed his top 6 priorities; 1) Advocate for Association
of Bay Area Governments (ABAG) housing mandate reform via a revised
formula for housing allocations, 2) Advocate for policies that promote the
long-term stability of CalPERS, 3) Seek funding that would provide
improvements to the Palo Alto Airport, 4) Advocate for Proposition 13 reform
as it relates to ownership transfers of commercial properties, 5) Oppose the
California High Speed Rail project, and 6) Advocate for environmental
initiatives that promote the use of alternative energy sources.
Chair Price listed her top 6 priorities; 1) Obtain grant funding for public
safety, affordable housing, recycled water, and homelessness issues and/or
infrastructure, 2) Advocate for Proposition 13 reform as it relates to
ownership transfers of commercial properties, 3) Advocate for environmental
initiatives that promote the use of alternative energy sources, 4) Advocate
for policies that promote the long-term stability of CalPERS, 5) As the issue
unfolds, track closely any proposed changes to expanding the sales tax base
(such as leisure services) and the possible correlated reductions in the sales
tax rate, and 6) Advocate for “net neutrality” and related policy areas that
ensure that all legal internet activity is treated equally both in theory and
practically.
Mr. Keene calculated the score for each of the six priorities and clarified the
results in the following order: 1) Advocate for Proposition 13 reform as it
relates to ownership transfers of commercial properties, 2) Advocate for
policies that promote the long-term stability of CalPERS, 3) Obtain grant
funding for public safety, affordable housing, recycled water, and
homelessness issues and/or infrastructure, 4) As the issue unfolds, track
closely any proposed changes to expanding the sales tax base (such as
leisure services) and the possible correlated reductions in the sales tax rate,
5) Advocate for ABAG housing mandate reform via a revised formula for
housing allocations, and 6) Advocate for environmental initiatives that
promote the use of alternative energy sources.
Chair Price agreed to the order captured.
No Action Taken
FUTURE MEETINGS AND AGENDAS
December 9th and 16th, 2014.
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Final Minutes 11/13/14
Khashayar “Cash” Alaee, Senior Management Analyst, presented the Policy &
Services Committee (Committee) members with the list of upcoming
meeting topics.
Chair Price stated the items listed for the 16th of December did not appear to
be substantial enough.
Mr. Alaee stated he could check with Staff on the possibility of moving the
airport item up to that date.
Chair Price believed the airport item was important but she was interested in
core City issues.
Mr. Alaee noted the Stanford Funds were possible to be moved but he
needed to have a discussion with the City Manager; the City Auditor had
requested more time on their items. He suggested moving the items from
the 9th of December onto the 16th of December and shifting items from the
16th therefore eliminating one meeting. He noted after speaking with Staff
members the more significant items needed more work and could not be
presented prior to 2015.
Council Member Schmid said the 9th as it was with the five items appeared
to be a long night. He suggested moving one of the items to the 16th and
keeping both meetings.
Chair Price suggested moving the Amendment of the Municipal Percent for
Art Policy from the 9th to the 16th.
Mr. Alaee agreed to move the item and suggested adding the airport.
Chair Price understood Staff requested more time before returning with the
Project Safety Net but she asked for an update.
Mr. Keene agreed to speak to Staff but felt an information update report
could be possible.
Council Member Klein did not feel the Percent for Art item was difficult or
long. He believed the Health and Safety issue would be significant.
Chair Price agreed to move forward with the next steps on Project Safety
Net.
Attachment B
DRAFT MINUTES
Page 17 of 17
Policy and Services Committee Regular Meeting
Final Minutes 11/13/14
Council Member Klein stated he was uncertain what the discussion would be
surrounding the airport.
Chair Price clarified the title for the airport items appeared to be misleading.
She felt the title should be rewritten for a better understanding of what
needed to be done.
Mr. Keene noted the issue was with the San Francisco airport routing and
noise level along with the seat on the Round Table in San Mateo County.
ADJOURNMENT: Meeting was adjourned at 8:09 P.M.
Attachment B
Attachment C
1 | P a g e
POLICY AND PROCEDURES 1-48/ASD
Effective:
PROCEDURE FOR SALE/TRANSFER OF SURPLUS CITY-OWNED
REALPROPERTY
POLICY STATEMENT
It is the policy of the City of Palo Alto that the disposal of City real property be accomplished through a public bid process. The process involves notification of City departments and public agencies prior to the City Council declaring any property to be
surplus. To assure the highest return for sale of its assets, the process involves an
appraisal of fair market value and an open and competitive bid process. The City Council
may reject any or all bids and accept that bid which will, in its opinion, best serve the public interest.
PROCEDURE
A. The Real Property Manager shall identify potential surplus City real property by: 1) Conducting periodic reviews of the Real Property Inventory; and/or
2) Notification from City departments which no longer have use for a particular
property.
3) The City Manager shall determine whether any unsolicited offer to purchase or
transfer City-owned real property warrants consideration, and if so, shall
forward the offer to the Council.
B. Upon identifying a potential surplus real property, the Real Property Manager shall:
1. Notify City departments that the property may be available for
their use, subject to Council approval as outlined below.
2. In accordance with Government Code Section 54222, notify public agencies of the property’s availability for sale.
C. The Real Property Manager shall forward information about the property together
with the responses from other departments and the public agencies referred to in
#B2 above to the Council with a staff recommendation to:
1. Formally declare the real property surplus and instruct the Real
Estate Division to dispose of the property using open bid
procedures; or
Attachment C
2 | P a g e
2. Transfer control of the property to one or more other City
departments; or
POLICY AND PROCEDURES 1-48/ASD Effective:
3. Negotiate an agreement with one of the public agencies referred to
in #B2 above.
D. Should the decision be to declare the property surplus and sell it by bid:
1. The Real Estate Division shall appraise (or have appraised) the
property to determine a minimum bid.
2. The Real Estate Division shall prepare a “Bid Proposal Package” to be placed on the Council Consent Calendar for approval.
3. Upon approval by the Council, the Real Estate Division shall:
a. Place an ad in the Real Estate Section of the local newspapers.
b. Send flyers advising of the offering to all
interested parties and persons on the Real Estate
Division “Surplus Property Mailing List. c. Send the Proposal Package to persons
expressing further interest in the offering.
d. Use other appropriate modes of advertising
(including electronic media) to broadly market
City owned properties.
4. The bid opening shall be scheduled by the Real Property Manager and the Manager, Purchasing and Contract
Administration. At the bid opening the Purchasing Division
shall:
b. Open Sealed Bids
c. Accept oral bidding beginning at 5% above the highest
written bid.
5. The Real Estate Division shall forward the results of the bidding to the Council with staff recommendation regarding an award of
deed.
Attachment C
3 | P a g e
6. The City Council may reject any or all bids and accept that bid
which will, in its opinion, best serve the public interest.
Note: Questions and/or clarifications of this policy should be directed to the
Administrative Services Department.
City of Palo Alto (ID # 5534)
City Council Staff Report
Report Type: Inter-Governmental Legislative Affairs Meeting Date: 2/23/2015
City of Palo Alto Page 1
Summary Title: Draft Legislative Program Manual and Draft Semi -Annual
Legislative Strategic Initiatives
Title: Review and Approval of the Draft Legislative Program Manual and Draft
Semi-Annual Legislative Strategic Initiatives
From: City Manager
Lead Department: City Manager
Recommendation
Policy and Services Committee and Staff recommend that Council review and approve,
or modify and approve the attached Draft Legislative Program Manual and the Draft
Spring 2015 Semi-Annual Legislative Strategic Initiatives document. Policy & Services
Committee at their November 13, 2014 meeting unanimously approved them on a 3-0
vote, Scharff absent.
Background
The Legislative Program Manual, as drafted, is intended to serve as an ongoing guide to
the City’s state and federal legislative programs. This document is intended to be
reviewed and updated every two to three years but should generally remain unchanged
(assuming the City maintains its current legislative program format). The Legislative
Program Manual includes General Guiding Principles in addition to procedures for
handling legislative issues such as correspondence, policy formation, and advocacy.
The Semi-Annual Legislative Strategic Initiatives document provides additional policy
direction to the City Council, City staff, and the City’s state and federal legislative
advocates on policy issues outside of the General Guiding Principles (which is a section
of the Legislative Program Manual). This document is intended to be vetted and revised
semi-annually in the Spring and Fall by the Policy & Services Committee with the City’s
state and federal legislative advocates in attendance before going to Council for final
approval.
Spring Meeting
The Spring meeting will include a review of what has occurred so far that year and how
the City should react to what has occurred, such as drafting letters of support or
City of Palo Alto Page 2
opposition on existing bills or issues.
Fall Meeting
The Fall meeting will include a review of what has occurred so far that year followed by
a proactive planning session focused on what types of legislation, or legislative
positions, the City should advocate for in the upcoming year.
These semi-annual meetings are intended to give the Policy & Services Committee the
opportunity to strategically update the Semi-Annual Legislative Strategic Initiatives
document based on the current legislative environment. Following that process the
document will always go before Council for final review and approval.
Attached for your review are the following:
A. The Draft Legislative Program Manual
B. The Draft Spring 2015 Semi-Annual Legislative Strategic Initiatives
C. The Policy & Services Committee excerpt minutes 11-13-2014
Also, below, are a few areas of additional clarification and information:
The Draft Semi-Annual Legislative Strategic Initiatives document contains
possible areas of legislative focus but needs Council’s review and approval.
These draft strategic initiatives reflect the Policy & Services Committee’s position;
however, Council will need to adopt these before they can be used to inform
specific legislation or City action on legislative fronts.
Due to the unique objectives of the Utilities Department, Utilities specific
legislative guiding principles are developed and updated annually and are then
reviewed and approved by the Utilities Advisory Commission and Council. The
timing of the Utilities specific legislative guidelines is sequenced to accommodate
Public Power efforts in Sacramento and Washington DC through the joint action
agencies/associations in which the City participates. Staff managing the City’s
legislative program, including staff from Utilities and the City Manager’s Office,
participate in multiple conference calls monthly with the City’s state and federal
legislative advocates to ensure that all parties are working towards legislative
objectives that are in the best interest of the City as a whole. In addition to this,
staff also works on issues that come-up throughout the year outside of the
routine legislative program procedures.
All strategic legislative documents will be dated to clarify which is the most
recent and what positions the City has taken in the past.
On Saturday, January 31, 2015 the City Council held its annual retreat and
adopted its 2015 priorities. This year, the Council adopted four priorities that will
City of Palo Alto Page 3
"receive particular, unusual and significant attention during the year." The 2015
Council Priorities are:
1. The Built Environment: Multi-modal transportation, parking and livability
2. Infrastructure Strategy and Implementation
3. Healthy City, Healthy Community
4. Completion of the Comprehensive Plan update with increased focus from
Council
Attachments:
Attachment: A - Draft Legislative Program Manual 12-1-2014 (DOC)
Attachment: B - Draft Spring 2015 Semi-Annual Legislative Strategic Initiatives 12-1-
2014 (DOC)
Attachment: C - Draft Policy & Services Committee Excerpt Minutes 11-13-2014 (DOCX)
Draft City of Palo Alto Legislative Program Manual
Table of Contents
Table of Contents p. 1
Policy Statement p. 2
General Legislative Priorities p. 2
Semi-Annual Legislative Strategic Initiatives p. 3
Basic Steps in the City’s Legislative Program p. 4
Internal Coordination of the Legislative Program p. 5
The Role of the City Council p. 6
The Role of the City Manager's Office p. 7
The Role of City Departments p. 8
Guidelines for Evaluating Legislation p. 9
Legislative Advocacy p. 11
Lobbying Methods p. 13
Guidelines for Letter Writing p. 15
Procedure for City Council Meetings with Other Elected Representatives p. 16
State Legislative Timeline p. 17
Draft Legislative Program Manual
Page 2
Policy Statement
The objective of the City of Palo Alto legislative program is to keep the City Council,
community and staff fully advised of proposed legislation with a potential impact upon
the City. It is the City's general policy to take timely and effective action in support of, or
opposition to, proposed legislation affecting Palo Alto at the County, State, and Federal
levels. In addition, the City, where appropriate, will take the initiative to seek
introduction of new legislation beneficial to Palo Alto.
General Legislative Priorities
1. Protect local revenue sources and prevent unfunded mandates.
Oppose Federal or State legislation, policies and budgets that have negative
impacts on services, revenues and costs. Ensure that legislation, policies and
budgets do not detract from Palo Alto’s ability to draw on local revenue
sources.
2. Protect and increase funding for specific programs and services.
Support County, State and Federal funding for local service by maximizing
existing funding levels and seeking new and alternative funding for programs.
Promote increases in the allocation of funds to cities and flexibility in
distribution.
3. Protect and increase local government discretion and oppose legislation, policies and
budgets that reduce the authority and/or ability of local government to determine
how best to effectively operate local programs, services, and activities.
Draft Legislative Program Manual
Page 3
Semi-Annual Legislative Strategic Initiatives
The Semi-Annual Legislative Strategic Initiatives provides additional policy direction to
the City Council, City staff, and the City’s state and federal legislative advocates on policy
issues outside of the General legislative Priorities. The document is to be updated semi-
annually in the fall and the spring.
The fall update would include a review of what has occurred so far that year followed by
a proactive planning session focused on what types of legislation, or legislative positions,
the City would like to advocate for in the upcoming year.
The spring update would include a review of what has occurred so far that year and
would be a more reactive session focused on what has occurred thus far that year and
how the City should respond to existing bills or issues.
When relevant, the Council’s annual priorities may help inform the City’s position on
legislation.
All Semi-Annual Legislative Strategic Initiative documents will be dated for clarity on
which is the most recent and what positions the City has taken in the past.
Draft Legislative Program Manual
Page 4
Basic Steps in the City's Legislative Program
Draft Legislative Program Manual
Page 5
Internal Coordination of the Legislative Program
The basic steps in the City's legislative program are illustrated in the diagram above.
1. Legislation is brought to the City's attention by several means: the City’s lobbyists, the
League of California Cities, the National League of Cities, Council Members, City staff,
citizens, professional or governmental newsletters, legislators, etc.
2. The City Manager's Office reviews the proposed legislation (the bill text) and, if
warranted, requests assistance from one or more departments. Departments are
urged to take the initiative to identify legislation of importance to the City and not
wait for the City Manager's Office to ask for their involvement.
3. The Department evaluates the bill for its impact upon Palo Alto, recommends a
position and potential action, and drafts a statement or letter for use by the City
Manager's Office, as appropriate.
4. At this juncture, action can proceed in either of two ways:
a. If the Council has previously adopted a policy directly relevant to the legislation,
the City Manager's Office proceeds to prepare a letter for the Mayor's signature;
b. If the Council policy relative to the legislation does not exist, or if the issue is
politically controversial, or if there is significant local interest in the issue, the
proposed legislation is referred to Council. (See Legislative Advocacy)
5. The Council will consider the information provided in a staff report, determine its
position on the legislation, and provide direction to staff.
6. The City Manager's Office coordinates the lobbying activities according to Council
direction through this manual.
7. The Council will connect with the various legislative bodies in several ways
throughout the year:
a. Joint meetings with elected representatives
b. Visits to Sacramento and Washington DC
c. Direct contact with elected officials
Draft Legislative Program Manual
Page 6
The Role of the City Council
The City Council has ultimate responsibility for determining the position the City shall
take on legislative issues. Council positions applicable to legislation accumulate over the
years and require periodic reevaluation to assure they are still relevant to the City's needs
and interests. The Council generally takes positions only on issues that are of relevance to
the City of Palo Alto.
The Council's specific responsibilities include:
Conduct an annual review and update of legislative priorities at both the State
and Federal levels.
Meet annually with the City's state and federal lobbyist to establish state and
federal legislative priorities and strategies.
Establish legislative priorities, taking into account the Council priorities adopted
each year.
Consider legislative issues brought to the Council's attention by staff, citizens,
organizations and others and determine what, if any, position the City should
take.
Determine Council positions on resolutions proposed for adoption by the League
of California Cities and the National League of Cities.
Suggest areas for staff action concerning legislation.
Assume an active advocacy role with legislators on behalf of the City. This may
include travel to Washington, DC and/or to Sacramento. Any such travel will be
consistent with current City travel policies.
Draft Legislative Program Manual
Page 7
The Role of the City Manager's Office
The City Manager's Office is the central coordinator of the City's legislative program. The
responsibilities and activities of the office include the following:
Ensure the consistency of legislative policy throughout the City.
Serve as a clearinghouse and record keeper for all legislative activity occurring
with the City.
Coordinate contacts and communications with legislators and staff.
Coordinate the evaluation of proposed legislation that may affect the City.
Disseminate information on legislation of interest to departments within the City.
Encourage suggestions from departments concerning subjects for legislative
action.
Provide feedback to departments on progress of legislation of interest.
Keep Council informed on the status of the City's legislative work.
Recommend priorities for legislative action to support the City’s lobbying
activities.
Plan, coordinate, and facilitate lobbying activities by Council Members and City
staff.
Maintain legislative files (bill texts, correspondence, records of lobbying activity,
background information, Council policies).
Serve as the liaison to the League of California Cities, National League of Cities,
and other organizations and jurisdictions concerning legislative activities.
Coordinate the annual review of legislative positions and preparation of the City's
legislative platform.
When requested, to ensure policymakers are briefed prior to attending forums in
which they represent the City.
Prior to regional meetings, staff shall inform Council representatives/liaisons of
relevant legislative updates and/or staff work on related topics.
Draft Legislative Program Manual
Page 8
The Role of City Departments
The participation of various departments within the City is essential to the success of the
Legislative Program. The program requires departments to take responsibility for
identifying, evaluating, and monitoring legislation that relates to their functional areas.
The program must be cooperative and interactive. Effective lobbying and testimony
depends on factual data concerning the impacts and implications of proposed legislation
upon the City's operations, services, and finances. The responsibilities of the departments
include the following:
Inform the Manager's Office of legislative issues of importance to the City.
Designate a key contact within the department or division who will be responsible
for coordinating the evaluation of legislation and monitoring those legislative
issues of direct significance to the department. Continue to monitor bills as they
progress through the Legislature or Congress.
Establish a system within the department for assuring that requests for legislation
evaluation are responded to promptly.
Draft letters and provide analysis of legislation as requested by City Manager's
Office.
Maintain a legislative file with the department to assure consistency of policy
recommendations.
Establish mechanisms within the department for accessing direct information on
legislation, e.g. computer networks, newsletters, etc.
Network with other cities, agencies, professional organizations, etc. to gain
background information and broader perspective on legislative issues.
Suggest organizations, individuals, publications, and other legislators who may be
allies in lobbying the City's position on certain legislation.
Become acquainted with the League of California Cities staff person with
responsibility for issues related to the department.
Annually, provide to the Manager's Office the department's recommendations for
the ensuing year's legislative platform. This shall include: 1) a review of existing
positions, 2) statements of underlying policies and principles, and 3) priorities
related to specific legislative issues.
Draft Legislative Program Manual
Page 9
Guidelines for Evaluating Legislation
Several resources are available to departments that can enable them to identify
proposed legislation and track its progress. The League of California Cities and National
League of Cities publications contain information on various legislation. Departments can
also subscribe to legislative announcements through professional associations as well as
State and Congressional websites.
Bills often are amended several times between introduction and final approval. Analyses
and letters expressing the City's position should always be based on the latest version.
When reviewing the bill text, staff should not rely solely on the Legislative Counsel's
Digest but read the entire bill. The bill will contain the new or amended language
proposed. If the department wishes to compare the proposed language with the actual
language of existing law, and does not have the relevant code (Government Code, Vehicle
Code, Election Code, Revenue and Taxation Code, etc.) in the department, the
department shall contact the proper staff member or representative with questions.
If the bill is later amended, language that is deleted will be lined out and new proposed
language will be shown in italics. Proper timing is vital in the legislative process. The City's
views on a bill are of value only if they reach a legislator or committee before the bill is
voted on. Departments should provide the City Manager's Office with information on bills
of importance to the City as soon as they are aware of them.
A. Citywide Perspective
Often, proposed legislation will have the potential for affecting more than one
department. Not always will the impact be the same. While the proposal may be
beneficial from the perspective of one department, it may have negative impacts for
another department. It is essential that these differences be reconciled and a common
citywide position is determined. The City Manager's Office will work with Departments to
reconcile differences.
B. Stating the City's Position
Departments should be aware of policies and programs contained in the City of Palo Alto
Comprehensive Plan which relate to their area of responsibility. The City Manager's Office
can verify if the League of California Cities or National League of Cities has taken a
position on a bill.
The most effective arguments in lobbying a bill are those which contain hard data about
the effects on the City's operations and services. If the bill has potential significant effects
for the City, it is well worth the time spent to assemble the examples and cost figures.
The best criticism is that which contains suggestions for improvement. If there is little
likelihood of defeating a bill the City opposes, indicate what could be changed to make it
Draft Legislative Program Manual
Page 10
more palatable. Legislators and their staffs are more receptive to communications which
offer concrete ideas.
If the department recommendation is to support, oppose, or amend a bill, it is important
to draft the body of a letter that the City Manager's Office can use in writing to the
legislators. The Manager's Office will put the letter in final form and send it to the
appropriate committees, legislators, etc. A copy of the finalized letter will be routed to
the evaluating department for its records.
Draft Legislative Program Manual
Page 11
Legislative Advocacy
The Council is the official voice of the City of Palo Alto. The final authority for determining
the position that shall be taken by the City on proposed legislation rests with the Council.
The process outlined below would likely be followed only for controversial topics. Less
controversial topics may go directly to Council. In many instances, due to timing or the
nature of the issue, the Mayor may sign a letter supporting or opposing legislation on
behalf of the City. This position would need to be generally consistent with the City's
legislative guiding principles or the annually adopted priorities.
Process
1. A legislative issue is referred to the Policy & Services Committee for review.
2. Staff generates an informational report for the Policy & Services Committee
summarizing the issue. This report will include an analysis of City policy as it relates to
the item, if applicable.
3. The item is agendized for a Policy & Services Committee meeting.
4. The Policy & Services Committee reviews and discusses the legislative issue at the
meeting.
5. Policy & Services Committee members vote on the issue.
6. If the vote is unanimous, the matter is forwarded to the Council as consent calendar
item. If the vote is not unanimous, it is forwarded to Council as an action item.
If a timeliness issue exists, the item may be referred directly to Council or to Council
without minutes, and a one page executive summary will be provided. If no timeliness
issue exists, the item will be referred with minutes in the usual manner.
Signatures on Legislative Communication
Letters and other communications expressing the City's position on legislation will
customarily bear the signature of the Mayor.
If the legislation's principal impact is on the City’s operating procedures, the
communication may be signed by the City Manager. In these instances, it may increase
the effectiveness of the communication to have it co-signed by the head of the
department most directly affected.
In order to keep the Council and others informed of all City communications on
legislation, copies of the letters will be distributed in the Council agenda packet.
Draft Legislative Program Manual
Page 12
Independent Lobbying by City Personnel
City employees are not to lobby in the name of the City of Palo Alto unless the activity
has been approved by the department head and City Manager has been informed in
advance of the activity.
City Advisory Commissions and Committees
City employees who are staff or liaison to Council appointed advisory commissions and
committees should encourage the bodies to bring to the attention of the Council
proposed legislation upon which they recommend the Council take a position.
Draft Legislative Program Manual
Page 13
Lobbying Methods
Listed here are a number of ways to inform and persuade legislators and others of the
City's position on proposed legislation.
Departmental participation in the planning and implementation of many of these
activities is important. Departments should let the City Manager's Office know of their
interest and suggestions for lobbying bills they have evaluated.
Letters
Letters may be drafted for:
The authors of proposed legislation.
The City's elected representatives in the State Legislature and Congress.
The Chair and members of legislative committees.
The Governor or President.
If a letter is being sent within three working days of the scheduled committee hearing of
a floor vote, the letter will be faxed or emailed as well. All records of faxes, mailings, and
e-mail will be maintained by the City Manager's Office.
Telephone Calls
Phone calls are useful for communication with legislative staff regarding the
content and implications of bills and for suggesting amendments or language
clarifications. However, many committees' rules prevent them from counting
phone calls as a legitimate expression of a City's position on a bill. Pro and con
positions are recorded only if they are received in writing.
Meetings
It is the Council's practice to invite legislators representing Palo Alto to an
annual meeting to discuss all issues of importance to the City during that
legislative session.
Councilmembers are encouraged to attend the National League of Cities and
League of California Cities conferences and to create and maintain
relationships with state and federal officials.
Resolutions
The Council is sometimes asked to adopt a resolution expressing its position on
a bill. Resolutions are frequently sought by organizations as an indication of
widespread support for a position, but they are less effective than letters when
Draft Legislative Program Manual
Page 14
communicating directly with a legislator.
Testimony
Testifying in person at a legislative committee hearing provides an opportunity to
present the City's position and respond to questions. The City Manager, the
Mayor, a Councilmember, or a staff person with particular expertise in a subject
area are examples of appropriate speakers.
Editorials
Staff members must have approval from the City Manager's Office before
submitting editorials to newspapers.
Press Conferences
Press conferences are called by the Mayor and Councilmembers and are staged in
a location relevant to the issues being lobbied. Any press conference should be
coordinated with the City Manager's Office.
Coalitions
These alliances are not limited to governmental bodies, but extend to all
segments of the broader community that can similarly be affected by the
legislation (e.g. business, nonprofit organization, environmental groups, etc).
Draft Legislative Program Manual
Page 15
Guidelines for Letter Writing
Concentrate on the letter content, rather than format. The City Manager's Office
will produce the final letter, addressing it to the proper legislators or committees
and securing the appropriate signature. The process can be expedited if the
originating department provides the draft of the letter electronically.
At the very start of the letter, indicate the bill number or title that is the subject of
the letter.
A short concise letter is generally more effective than a lengthy one. Several short
letters will carry more weight than one long letter. If there are many good
arguments for supporting or opposing a bill, provide them all to the Manager's
Office but in a form where they can be selectively used in several
communications.
Provide specific examples of the impact of the legislation on Palo Alto (e.g.
estimated cost or savings, effect upon taxpayers and residents, relationship to the
City's policies, programs, charter, etc).
Examples should be used that may be particularly newsworthy.
Relate, when feasible, to the effect the proposed legislation may have upon the
legislator’s constituents.
If advice is needed on what aspects of the legislation can most successfully be
lobbied, or what kind of information is most needed by the legislators, it is useful
to talk to the staff of the League of California Cities, of the Legislature's
Committees, or of the individual legislators. The Manager's Office can provide
contact names and phone numbers.
Draft Legislative Program Manual
Page 16
Procedure for City Council Meetings with Other Elected Representatives
Typically, the Council meets annually with its County, State, and Federal representatives.
These meetings are an important component of building legislative relationships and to
share issues of importance to Palo Alto. These meetings should be scheduled at the
appropriate times during the respective legislative calendars.
Staff will schedule these meetings at the direction of the City Manager in
coordination with the Council.
The City Manager will seek agenda items from the Mayor and Council.
Staff from the City Manager's Office will obtain agenda items from Departments
and staff in the representative’s office.
A meeting agenda and a potential list of topics will be published by City Clerk.
Draft Legislative Program Manual
Page 17
State Legislative Timeline
A State legislative timeline will be provided annually for planning purposes.
Draft Spring 2015 Semi-Annual Legislative Strategic Initiatives
The Semi-Annual Legislative Strategic Initiatives document provides additional policy
direction to the City Council, City staff, and the City’s state and federal legislative
advocates on policy issues outside of the General Guiding Principles contained within the
Legislative Program Manual.
Listed below are possible semi-annual legislative priorities that were suggested as
possibilities for Council consideration by members of the City’s Executive Leadership
Team and the Policy & Services Committee at their November 13, 2014 meeting.
At that Committee meeting six semi-annual legislative strategic initiatives were identified
to be of the utmost importance. Those six semi-annual legislative strategic initiatives are
listed below under the “Top Six Spring 2015 Semi-Annual Legislative Strategic Initiatives”
heading in order of importance, as voted on by the Committee. They are also listed under
their corresponding subject area heading.
Top Six Spring 2015 Semi-Annual Legislative Strategic Initiatives
1. Advocate for Proposition 13 reform as it relates to ownership transfers of
commercial properties;
2. Advocate for policies that promote the long-term stability of CalPERS;
3. Obtain grant funding for public safety, affordable housing, recycled water,
homelessness issues, and/or infrastructure;
4. As the issue unfolds, track closely any proposed changes to expanding the sales
tax base (such as leisure services) and the possible correlated reductions in the
sales tax rate;
5. Advocate for Association of Bay Area Governments (ABAG) housing mandate
reform via a revised formula for housing allocations;
6. Advocate for environmental initiatives that promote the use of alternative energy
sources.
Environmental
Advocate for environmental initiatives that promote the use of alternative energy
sources;
Advocate for National Electric Code reform that facilitates an increase in the
installation of Electric Vehicle Supply Equipment;
Advocate for conservation pricing for refuse;
Advocate for a ban on the disposal of “flushable” wipes into the sewer system;
Advocate that drug manufactures to manage and fund a collection program for
pharmaceutical waste;
Advocate for a requirement that cigarettes sold in California are manufactured
with biodegradable butts;
Advocate for a ban on the use of any Styrofoam food containers and packaging
materials;
Reduce the approval requirement from two-thirds to 50% +1 of voting property
owners to pay for improvements necessary for cities to come into compliance
with new State and Federal storm drain requirements.
Financial (Revenue & Grants)
Advocate for Proposition 13 reform as it relates to ownership transfers of
commercial properties;
Advocate for policies that promote the long-term stability of CalPERS;
Obtain grant funding for public safety, affordable housing, recycled water,
homelessness issues, and/or infrastructure;
As the issue unfolds, track closely any proposed changes to expanding the sales
tax base (such as leisure services) and the possible correlated reductions in the
sales tax rate;
Advocate for State Department of Health Care Services reimbursement reform
that would provide additional supplemental reimbursements to service providers
for the cost of paramedic services to Medicare and Medi-Cal patients at a rate of
payment equal to the cost of service;
Seek funding that would provide improvements to the Palo Alto Airport.
Housing
Advocate for Association of Bay Area Governments (ABAG) housing mandate
reform via a revised formula for housing allocations.
Local Control
Advocate for the rights of municipalities to provide internet, and internet-related,
utility services.
Regulatory
Advocate for San Francisquito Creek improvements via regulatory relief and
oversight reform.
Technology
Advocate for “net neutrality” and related policy areas that ensure that all legal
internet activity is treated equally both in theory and practically.
Transportation
Oppose the California High Speed Rail project.
Last updated: December 1, 2014
POLICY AND SERVICES COMMITTEE
DRAFT EXCERPT MINUTES
Item 2
2. Review and Recommendation to Council for Approval of the Draft
Legislative Program Manual and Draft Semi-Annual Legislative
Strategic Initiatives
Richard Hackmann, Management Analyst, stated Staff was returning with
an update on the material from the October 14, 2014 Policy & Services
Committee (Committee) meeting. During the prior meeting the Committee
members had made recommended changes to the Draft Legislative
Program Manual and Draft Semi-Annual Legislative Strategic Initiatives
document. Staff had reached out to the Executive Leadership Team
members to update the Draft Semi-Annual Legislative Strategic
Initiatives document and presented to you was a more detailed version
of initiatives. Staff was requesting input and approval on both
documents from the Committee members and a recommendation to
Council.
James Keene, City Manager, recommended Committee members review
the Draft Spring 2015 Semi-Annual Legislative Strategic Initiatives
document and noted it was reflective of the collective thoughts of the
Executive Leadership Team’s thoughts on important policy
perspectives to be considered by Council. Staff wanted to explore
legislative action items although understood there could not be an
overabundance of bills from one City. The recommendation desired
from the Committee to Council would be for one or two important
items that mattered the most to be accomplish for the City and
community.
Chair Price asked if Staff was requesting the discussion of sorting out the
initiatives begin at the Committee level. She noted the list presented was
unweighted and not organized by category.
Mr. Keene allowed the Committee to determine whether they wished to
begin the process of selecting their priorities prior to making a
recommendation to Council. The legislative season was quickly approaching
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Item 2
and usually the due date for submitting items was set in the third week of
January.
Herb Borock suggested when the list went before the Council it should be
noted who recommended the item; whether by Staff or the Committee. He
believed the listing order should be 1) City priority, 2) Committee proposed,
and 3) Staff recommendation.
Council Member Klein recommended combining items 3: Protect and
increase local government discretion, balancing that with City values.
Ensure that legislative or Constitutional reforms align with the City’s
values and maintain and/or enhance local discretion; and 4: Ensure
that legislation, policies and budgets retain or increase, but generally
did not decrease, the amount of local discretion held by the City and
protect local decision making. Oppose legislation, policies and budgets
that reduce the authority and/or ability of local government to
determine how best to effectively operate local programs, services and
activities. The City retains the right to exceed State goals, standards
or targets. His suggestion was to drop item 3 and note it was covered in
item 4. He also recommended striking through the first and last sentence in
item 4: Ensure that legislation, policies and budgets retain or increase,
but generally did not decrease, the amount of local discretion held by
the City and protect local decision making. Oppose legislation, policies
and budgets that reduce the authority and/or ability of local
government to determine how best to effectively operate local
programs, services and activities. The City retains the right to exceed
State goals, standards or targets.
Mr. Keene clarified the recommendation was to combine items 3 and 4
strike the first sentence beginning with ‘Ensure that Legislative’ and strike
the last sentence beginning with ‘The City retains’.
Portion omitted due to audio technical difficulties.
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Item 2
Council Member Schmid asked where the reference was for the asterisk
under the “process” section of Legislative Advocacy.
Mr. Hackmann clarified there was no reference; the asterisk was a Staff
note. The asterisk could be removed and the note left for informational
purposes.
Council Member Schmid recommended removal of the asterisk for clarity
of information.
MOTION: Council Member Klein moved, seconded by Council Member
Schmid that the Policy and Services Committee accept the draft
Legislative Program Manual with the following changes; 1) combine
points 3 and 4 with a strike through of the first and last sentence in
number 4 and 2) remove the asterisk under Legislative Advocacy after
the last item in the Process section.
MOTION PASSED: 3-0 Scharff absent
Council Member Schmid stated there were 18 items to select from and
he suggested the Committee voted to prioritize the list prior to Council
review. His recommendation was for each Committee Member to vote
for their top six priorities to narrow the list.
Council Member Klein agreed to reduce the list in the manner
suggested.
Mr. Keene stated there would be two stages to the process. The first
would be the removal of any items simply not agreeable to the
Committee and the second would be how to prioritize the remaining
items. The probability of Palo Alto writing a letter of support for a
legislative item on the list proposed by someone else would keep the
City involved without placing all of the items under their legislative
request.
Council Member Schmid felt maintaining all of the items on the list was
beneficial because each of them came from a need or desire of Staff.
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Item 2
He believed the legislative analyst would inform the Council or Staff
when an item on the list was upcoming so they could weigh in.
Mr. Keene noted the Committee had the ability to inject an item to the
list if they felt the need.
Chair Price asked if there was a history of the number of priorities
allotted each Council Member.
Council Member Klein stated yes, there were three with the ability to
add more with a rationale.
Council Member Schmid listed his top 6 priorities; 1) Advocate for
Proposition 13 reform as it relates to ownership transfers of
commercial properties, 2) As the issue unfolds, track closely any
proposed changes to expanding the sales tax base (such as leisure
services) and the possible correlated reductions in the sales tax rate,
3) Advocate for policies that promote the long-term stability of
CalPERS, 4) Advocate for conservation pricing for refuse, 5) Obtain
grant funding for public safety, affordable housing, recycled water, and
homelessness issues and/or infrastructure, and 6) Oppose the
California High Speed Rail project.
Council Member Klein listed his top 6 priorities; 1) Advocate for
Association of Bay Area Governments (ABAG) housing mandate reform
via a revised formula for housing allocations, 2) Advocate for policies
that promote the long-term stability of CalPERS, 3) Seek funding that
would provide improvements to the Palo Alto Airport, 4) Advocate for
Proposition 13 reform as it relates to ownership transfers of
commercial properties, 5) Oppose the California High Speed Rail
project, and 6) Advocate for environmental initiatives that promote the
use of alternative energy sources.
Chair Price listed his top 6 priorities; 1) Obtain grant funding for public
safety, affordable housing, recycled water, and homelessness issues
and/or infrastructure, 2) Advocate for Proposition 13 reform as it
relates to ownership transfers of commercial properties, 3) Advocate
for environmental initiatives that promote the use of alternative
POLICY AND SERVICES COMMITTEE
DRAFT EXCERPT MINUTES
Item 2
energy sources, 4) Advocate for policies that promote the long-term
stability of CalPERS, 5) As the issue unfolds, track closely any
proposed changes to expanding the sales tax base (such as leisure
services) and the possible correlated reductions in the sales tax rate,
and 6) Advocate for “net neutrality” and related policy areas that
ensure that all legal internet activity is treated equally both in theory
and practically.
Mr. Keene calculated the score for each of the six priorities and
clarified the results as the following order: 1) Advocate for Proposition
13 reform as it relates to ownership transfers of commercial
properties, 2) Advocate for policies that promote the long-term
stability of CalPERS, 3) Obtain grant funding for public safety,
affordable housing, recycled water, and homelessness issues and/or
infrastructure, 4) As the issue unfolds, track closely any proposed
changes to expanding the sales tax base (such as leisure services) and
the possible correlated reductions in the sales tax rate, 5) Advocate for
Association of Bay Area Governments (ABAG) housing mandate reform
via a revised formula for housing allocations, and 6) Advocate for
environmental initiatives that promote the use of alternative energy
sources.
Chair Price agreed to the order captured.
No Action Taken