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HomeMy WebLinkAbout2016-01-11 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL January 11, 2016 Regular 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 January 11, 2016 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 6:00-7:00 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. EXISTING LITIGATION – 3 MATTERS Authority: Govt Code 54956.9(d)(1) Wells Fargo Bank v. City of Palo Alto, et al., Santa Clara County Superior Court, Case No. 1-13-CV-238764 Monroe Place v. City of Palo Alto, Santa Clara County Superior Court, Case No. 1-13-CV-247320 Petition Requesting State Water Resources Control Board Review of Region 2’s Re-Issuance of Municipal Regional Permit Regulating Stormwater Run-off (NPDES No. CAS612008) Special Orders of the Day 7:00-7:15 PM 2. City of Palo Alto Certified as a Storm Ready Community 2 January 11, 2016 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions City Manager Comments 7:15-7:25 PM Oral Communications 7:25-7:40 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 7:40-7:45 PM 3.Approval of Action Minutes for the December 7, 9, and 14, 2015Council Meetings Consent Calendar 7:45-7:50 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4.Finance Committee Recommendation to Council to Continue the PV Partners Program Until the State Legislative Requirements Set Forth in the California Million Solar Roof Bill Have Been Fulfilled 5.Finance Committee Recommendation That the City Council Approve Design Guidelines for the Net Energy Metering Successor Program 6.Approval of a Purchase Order With American Truck & Trailer Body (AT&TB) in an Amount not to Exceed $687,638 for the Purchase of Three 2016 Peterbilt 337 Extended Cab Chassis Including AT&TBMaintenance, Construction Service Body and Approve Budget Amendments in the Water Fund, Gas Fund, Wastewater Fund, and Vehicle Equipment and Replacement Fund 7.Approval of a Contract With Siegfried for a Total Amount not to Exceed $92,004 for Design and Construction Support Services for the Quarry Road Improvements and Transit Center Access Project and Approval of a Transfer From the Stanford University Medical Center Fund to the Capital Improvement Fund and Creation of CIP Project PL-16000 to Provide an Appropriation of $92,004 to the Quarry Road Improvements and Transit Center Access Project in the Capital Improvement Program 8.Approval of Contract Amendment Number 1 to Contract NumberC15154454 With Integrated Design 360 for Project Management and Analysis Services Associated With an Electrification Feasibility Study, and Adoption of Budget Amendment Ordinance in the Amount of $145,000 At-Place Memo 3 January 11, 2016 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. 9.SECOND READING: Adoption of an Ordinance Re-Titling and Amending Municipal Code Chapter 5.30 (Plastic Foam and Non-Recyclable Food Service Containers and Packaging Items) to Prohibit Sale of Non- Recyclable Plastic Foam at Retail Establishments Such as Grocery Stores, Pharmacies, Mail Service Stores and Hardware Stores (FIRST READING: December 7, 2015 PASSED: 7-0 Scharff not participating, Burt absent) 10.SECOND READING: Adoption of an Ordinance Amending Section 18.08.040 (Zoning Map and District Boundaries) of the Palo Alto Municipal Code to Change the Classification of Certain Properties on Greer Road, Amarillo Avenue, Metro Circle and Moffett Circle, a Portion of That Property Known as Greer Park, Tract Number 796, From R-1 to R-1-S (FIRST READING: November 30, 2015 PASSED: 9-0) 11.Adoption of the City of Palo Alto Emergency Operations Plan (EOP) and Update of Membership of the Palo Alto/Stanford Citizen Corps Council 12.Approval of Contract Change Order Number 2 to Contract Number S14151060 in the Amount of $150,000 With Monterey Mechanical Company for On-Call Emergency Construction Services at the WQCP, Capital Improvement Program Project WQ-80021, for a Total Compensation not to Exceed $400,000 13.Policy and Services Committee Recommendation to Council for Adoption of an Ordinance Amending Chapter 9.14 (Smoking and Tobacco Regulations) of the Palo Alto Municipal Code to Include E-Cigarettes, Change Signage Language, and Include Additional Enforcement Options 14.Approval of a Contract for the Downtown Paid Parking Study and Downtown Parking Management Evaluation With Dixon Resources for $100,000 15.SECOND READING: Approval of Planning Codes Update Ordinance to Amend Land Use Related Portions of Titles 16 and 18 of the Palo Alto Municipal Code. The Affected Chapters of Title 16 Include Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement),18.04 (Definitions), 18.08 (Designation and Establishment of 4 January 11, 2016 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. Districts), 18.10 (Low Density Residential RE, R-2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential RM-15, RM-30, RM-40 Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial CN, CC and CS Districts), 18.18 (Downtown Commercial CD Districts), 18.20 (Office, Research and Manufacturing MOR, ROLM, RP and GM Districts), 18.23 (Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new Chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Non-conforming Uses and Non-complying Facilities) and 18.77 (Processing of Permits and Approvals) 16.SECOND READING: Adoption of an Ordinance Amending the Table of Organization for Fiscal Year 2016 to Incorporate Classification Title and Salary Changing the Name of the Classification From “Traffic Operations Lead” to “Traffic Engineering Lead (FIRST READING: December 14, 2015 PASSED: 9-0) 17.SECOND READING: Adoption of an Ordinance Amending Municipal Code Section 2.07.010 to Update Post Government Employment Regulations to Include all City Department Heads (FIRST READING: December 14, 2015 PASSED: 9-0) 18.Adoption of an Ordinance Amending Title 5 (Health and Sanitation)and Title 18 (Zoning) of the Palo Alto Municipal Code to Require all Businesses to Subscribe to Recycling and Compost Services and Comply With Refuse Sorting Requirements 19.Adoption of Resolutions Approving Terms of Agreement With the Palo Alto Police Managers' Association and Amending the Merit System Rules and Regulations to add Chapter 19 (PMA Agreement) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:50-7:55 PM 20.PUBLIC HEARING: On Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated 7:55-8:55 PM 21.PUBLIC HEARING: Approval of a Record of Land Use Action for a Variance to Allow for a Reduction in the Required Front Setback At-Place Memo 5 January 11, 2016 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. (Contextual) From 37 Feet 1-1/4 Inches to 32 Feet for a new Two- Story Single Family Residence Located at 224 Churchill Avenue. Exempt from California Environmental Quality Act (CEQA) 8:55-10:30 PM 22. PUBLIC HEARING: Approval of the Final Environmental Impact Report (FEIR) and Record of Land Use Action to Allow Demolition of Four Existing Structures Totaling 265,895 Square Feet and for Construction of Four Two-Story Office Buildings Totaling 265,895 Square Feet of Floor Area With Below and At-Grade Parking and Other Site Improvements. Zoning District: Research Park (RP) Located at 1050 Page Mill Road. Environmental Assessment: A Final Environmental Impact Report has Been Prepared Inter-Governmental Legislative Affairs 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. 6 January 11, 2016 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 Finance Committee Meeting Cancellation January 5, 2016 Policy and Services Committee Meeting Cancellation January 12, 2016 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto Utilities Update for the First Quarter of Fiscal Year 2016 City of Palo Alto Sales Tax Digest Summary Second Quarter Sales (April - June 2015) Addressing Homelessness in Support of a Healthy and Safe Palo Alto Independent Police Auditor’s Second Report Covering the Second Half 2014 Public Letters to Council Set 1 Set 2 Set 3 City of Palo Alto (ID # 6473) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Palo Alto Certified as StormReady Community Title: City of Palo Alto Certified as a StormReady Community From: City Manager Lead Department: Office of Emergency Services Background The National Weather Service (NWS) has developed a certification program known as StormReady to guide other governmental agencies in becoming better prepared to deal with storm emergencies. The City of Palo Alto’s Office of Emergency Services (OES) in cooperation with the Public Works Department recently achieved all of the program requirements. Discussion As described by the NWS, StormReady is a nationwide community preparedness program that uses a grassroots approach to help communities develop plans to handle all types of severe weather—from tornadoes to tsunamis. The program encourages communities to take a new, proactive approach to improving local hazardous weather operations by providing emergency managers with clear-cut guidelines on how to improve their hazardous weather operations. To be officially StormReady, a community must:  Establish a 24-hour warning point and emergency operations center  Have more than one way to receive severe weather warnings and forecasts and to alert the public  Create a system that monitors weather conditions locally  Promote the importance of public readiness through community seminars  Develop a formal hazardous weather plan, which includes training severe weather spotters and holding emergency exercises. A representative of the National Weather Service will present the StormReady Community certificate. Palo Alto is the only municipality in Santa Clara County to have achieved this rating. The Santa Clara Valley Water District is the only special district in this county to have also done so. CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California Approval of Action Minutes for the December 7, 9, and 14, 2015 Council Meetings Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS:  Attachment A: 12-07-15 DRAFT Action Minutes (DOC)  Attachment B: 12-09-15 DRAFT Action Minutes (DOC)  Attachment C: 12-14-15 DRAFT Action Minutes (DOC) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting December 7, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:06 P.M. Present: Berman, DuBois, Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Burt Study Session 1. Prescreening of a Proposed Hotel Development at 744-750 San Antonio Road. Special Orders of the Day 2. Fire Safety Month Poster Award Recognition to Palo Alto Unified School District Students for Excellence in Design, Art and Messaging. Agenda Changes, Additions and Deletions None. Consent Calendar MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to approve Agenda Item Numbers 3-9 and continue Agenda Item Number 10- Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement… to December 14, 2015. 3. Resolution 9563 Entitled, “Resolution of the Council of the City of Palo Alto Summarily Vacating Public Easement at 3264 Kipling Avenue.” DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 12/7/15 4. Resolution 9564 Entitled, “Resolution of the Council of the City of Palo Alto Summarily Vacating Public Easement at 4252 Manuela Court.” 5. Adoption of an Ordinance to add Chapter 10.51 to the Palo Alto Municipal Code to Permanently Implement the Crescent Park No Overnight Parking Program and Expand the Boundaries of the Program. 6. Approve Amendment Number One to Contract Number C1415263 With Townsend Public Affairs to add 24 Months of Service at a Cost of $8,500 per Month, Totaling $204,000, for a Total Contract Amount not to Exceed $391,000 for State Legislative Advocacy Services. 7. Budget Amendment Ordinance 5365 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto to Appropriate $203,561 From the Residential Housing Fund for Rehabilitation of the Colorado Park Apartments Consistent With Prior Loan Approval.” 8. Adoption of an Ordinance Re-Titling and Amending Municipal Code Chapter 5.30 (Plastic Foam and Non-Recyclable Food Service Containers and Packaging Items) to Prohibit Sale of Non-Recyclable Plastic Foam at Retail Establishments Such as Grocery Stores, Pharmacies, Mail Service Stores and Hardware Stores. 9. Resolution 9565 Entitled, “Resolution of the Council of the City of Palo Alto Revising the Citywide Records Retention Schedule and Repealing Resolution No. 8688.” 10. Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement With the Board of Trustees of the Leland Stanford Junior University Extending the Term for One Year for a Total Fee of $6.5 Million, and Approval of a Related Budget Amendment Ordinance Reducing the General Fund Budget Stabilization Reserve by $675,000 to Offset a Reduction in FY 2016 Fire Department Revenues. MOTION PASSED: 7-0 Scharff not participating, Burt absent Action Items 11. PUBLIC HEARING: Review and Adoption of an Ordinance to Amend Land Use Related Portions of Titles 16 and 18 of the Palo Alto DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 12/7/15 Municipal Code. The Purposes of the Code Amendments and Additions are to: (1) Improve the Use and Readability of the Code, (2) Clarify Certain Code Provisions, and (3) Align Regulations to Reflect Current Practice and Council Policy Direction. The Affected Chapters of Title 16 Include but are not Limited to Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement), 18.04 (Definitions), 18.08 (Designation and Establishment of Districts), 18.10 (Low Density Residential RE, R- 2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential (RM-15, RM-30, RM-40) Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial (CN,CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts)), 18.20 (Office, Research and Manufacturing (MOR, ROLM, RP and GM) Districts), 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new Chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Non-conforming Uses and Non-complying Facilities), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals). Public Hearing opened at 7:14 P.M. Public Hearing closed at 7:26 P.M. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to adopt Ordinance Sections 1-3, modifying Municipal Code Title 16 (Group 1 Interpretations of 16.20 (Signs)). MOTION PASSED: 8-0 Burt absent MOTION: Council Member DuBois moved, seconded by Council Member Wolbach to adopt Ordinance changes in Group 2 with Staff’s suggested changes to American’s with Disabilities Act (ADA) language, and with changes to Zoning Code Interpretation and Interpretation of Land Uses in order to include a process to bring changes to Council quarterly for approval. DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 12/7/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “bring changes to Council quarterly for approval” with “bring an Information Report to Council quarterly.” AMENDMENT: Mayor Holman moved, seconded by Council Member XX to add to the Motion, when a project Staff Report is written that requires a formal written interpretation as referenced in Municipal Code Section 18.01.025 the description of that determination shall be called out in the Staff Report. AMENDMENT WITHDRAWN BY THE MAKER MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Berman to adopt Ordinance Sections 10-13, modifying Municipal Code Chapters 18.13-18.15. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “replace in Municipal Code Sections 18.15.040(b), and 18.15.100(d)(iv), “59 years” with “55 years.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “replace in Section 19 of the Ordinance, Municipal Code Section 18.34.040(e)(3) with “the provisions of this section are intended to address the density bonus requirements of state law within the PTOD District. The maximum bonus density available under this section shall be the greater of the bonus density allowed under this chapter or under the City’s density bonus provisions contained in Chapter 18.15.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to remove from Municipal Code Section 18.13.010(a), (b), and (c), “with no required minimum density.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED PASSED: 7-1 Wolbach no, Burt absent DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 12/7/15 MOTION: Council Member Scharff moved, seconded by Council Member Kniss to adopt Ordinance Sections 14-15, modifying Municipal Code Chapters 18.16 and 18.18 including Staff proposed changes to Municipal Code Section 18.18.120(a)(2)(C). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the end of the Motion, “to replace ‘volume of space that is’ with ‘three dimensional shape and space.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “in Municipal Code Section 18.18.060(e), replace “minimum extent necessary” with “incremental square footage necessary.” MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Wolbach moved, seconded by Council Member DuBois to approve Ordinance Sections 16-21, modifying Municipal Code Chapters 18.20-18.52. SUBSTITUTE MOTION: Mayor Holman moved, seconded by Council Member DuBois to continue discussion of the addition of Municipal Code Sections 18.31.010, 18.31.020, and 18.31.030. SUBSTITUTE MOTION FAILED: 3-5 DuBois, Holman, Schmid yes, Burt absent MOTION PASSED: 7-1 Holman no, Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Berman to approve Ordinance Sections 22-24, modifying Municipal Code Chapters 18.70-18.77. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to continue Municipal Code Section 18.76.020 to the next available meeting. MOTION RESTATED: Council Member Scharff moved, seconded by Council Member Berman to approve Ordinance Sections 22 and 24, modifying Municipal Code Chapters 18.70-18.77 with the exception of Municipal Code Section 18.76.020. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 12/7/15 MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Kniss to continue Attachment E of the Staff Report to a date uncertain. SUBSTITUTE MOTION: Vice Mayor Schmid moved, seconded by Mayor Holman to set a hard stop of 11:00 P.M. SUBSTITUTE MOTION FAILED: 4-4 DuBois, Filseth, Holman, Schmid yes, Burt absent MOTION PASSED: 5-3 Filseth, Holman, DuBois no, Burt absent 12. PUBLIC HEARING: Certification of the Final Environmental Impact Report (FEIR) and Approval of the Record of Land Use Action to Allow Demolition of Four Existing Structures Totaling 265,895 Square Feet and Construction of Four Two-Story Office Buildings Totaling 265,895 Square Feet of Floor Area With Below and At-Grade Parking and Other Site Improvements Located at 1050 Page Mill Road. Zoning District: Research Park (RP). Environmental Assessment: An Environmental Impact Report has Been Prepared. (STAFF REQUESTS ITEM BE CONTINUED TO JANUARY 11, 2016). Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 10:33 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 7 Special Meeting December 9, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:02 P.M. Present: Berman, DuBois, Filseth, Holman, Scharff, Schmid arrived at 5:08 P.M., Wolbach Absent: Burt, Kniss Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Molly Stump, Suzanne Mason, Dania Torres Wong, Alison Hauk) Employee Organizations: Palo Alto Police Officers Association (PAPOA); Palo Alto Police Managers’ Association (PAPMA); Palo Alto Fire Chiefs’ Association (FCA); International Association of Fire Fighters (IAFF), Local 1319; Service Employees International Union, (SEIU) Local 521; Management, Professional and Confidential Employees; Utilities Management and Professional Association of Palo Alto (UMPAPA) Authority: Government Code Section 54957.6(a). MOTION: Council Member Wolbach moved, seconded by Council Member DuBois to go into Closed Session. MOTION PASSED: 7-0 Burt, Kniss absent Council went into Closed Session at 5:11 P.M. Council returned from Closed Session at 6:04 P.M. Mayor Holman announced no reportable action. DRAFT ACTION MINUTES Page 2 of 7 City Council Meeting Draft Action Minutes: 12/9/15 Study Session 1a. Infrastructure Plan Implementation Update. Council Member Berman left the meeting at 7:12 P.M. Action Items 2. Comprehensive Plan Update: Comprehensive Plan Structure and Goals/Vision Statements for Each Element and Related Issues (Part IV: Natural Resources, Safety, and Business & Economics). Council took a break from 7:44 P.M. to 7:50 P.M. MOTION: Mayor Holman moved, seconded by Council Member Scharff to have Safety as a separate Element in the Comprehensive Plan. MOTION PASSED: 6-0 Berman, Burt, Kniss absent MOTION: Council Member Scharff moved, seconded by Council Member DuBois to adopt the existing Comprehensive Plan Vision Statement for the Natural Environment Element. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and Goals” after “Vision Statement” and add at the end of the Motion, “and add a Goal of Climate Change and Adaptation.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to add to the Motion, “with Staff to add language to the Vision Statement based upon Council Member comments on April 27, 2015: A. Add language on “conservation” in the Vision Statement; and B. Add language to maintain sustainable water supply for the future; and C. Add language on Climate change adaptation and implementation. AMENDMENT WITHDRAWN BY THE MAKER DRAFT ACTION MINUTES Page 3 of 7 City Council Meeting Draft Action Minutes: 12/9/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion, “and Goals” and “add a Goal of Climate Change and Adaptation.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to remove the last sentence of the Vision Statement, “the City will be well prepared for natural disasters and will grow and change in a way that minimizes public exposure to hazards like fire, flood, and earthquake.” AMENDMENT: Mayor Holman moved, seconded by Council Member XX to add to the Motion, “add ecosystems to the Vision Statement.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “with Staff to add language to the Vision Statement based upon Council Member comments on April 27, 2015, add bullet point 4, ‘add language to maintain sustainable water supply for the future.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and bullet point 5, ‘add language on climate change adaptation and implementation.” MOTION AS AMENDED PASSED: 6-0 Berman, Burt, Kniss absent Council Member Scharff left the meeting at 8:30 P.M. MOTION: Council Member DuBois moved, seconded by Council Member Wolbach to adopt the existing Goals and organization in the Natural Environment Element with the addition of a Goal of Climate Change and Adaptation, moving Goals on Natural Hazards (Goal N-2), and Hazardous Waste (Goal N-6), and Solid Waste (Goal N-7) to the Safety Element and updating the Goal of Noise (Goal N-8) to include airplane noise. AMENDMENT: Vice Mayor Schmid moved, seconded by Council Member XX to add to the Motion, “Council will have either a Policy or Program following the approval of the 2016 Urban Water Management Plan on Goal N-4.” DRAFT ACTION MINUTES Page 4 of 7 City Council Meeting Draft Action Minutes: 12/9/15 AMENDMENT RESTATED: Vice Mayor Schmid moved, seconded by Council Member DuBois to add to the Motion, “Council will send to the Comprehensive Plan Update Citizens Advisory Committee (CAC) either a Policy or Program following the approval of the 2016 Urban Water Management Plan on Goal N-4 (Water Resources).” SUBSTITUTE AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to add to the Motion, “Council encourages the CAC to consider Policies and Programs relating to Goal N-4 (Water Resources), with Council to revisit after approval of the Urban Water Management Plan. SUBSTITUTE AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT PASSED: 5-0 Berman, Burt, Kniss, Scharff absent INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and add language to Goal N-1 (Open Space) that includes Protects and Conserves Palo Alto Open Space, Natural and Urban Habits and protects our Ecosystems and Natural Resources.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “add reclaimed and recycled water to Goal N-4 (Water Resources).” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to change direction regarding “Airplane Noise, Reclaimed and Recycled Water” to “direct the CAC to explore Policies and Programs relating to airplane noise, reclaimed and recycled water.” MOTION RESTATED: Council Member DuBois moved, seconded by Council Member Wolbach to adopt existing the Goals and organization in the Natural Environment Element with the addition of a Goal of Climate Change and Adaption, moving Goals on Natural Hazards and Hazardous Waste, and Solid Waste to the Safety Element. Council will send to the CAC either a Policy or Program following the approval of the 2016 Urban Water Management Plan on Goal N-4, and add language to Goal N-1 that includes protects and conserves Palo Alto Open Space, Natural and Urban Habits and protects our Ecosystems and Natural Resources. And Direct the CAC to explore Policies and Programs relating to airplane noise, reclaimed and recycled water. DRAFT ACTION MINUTES Page 5 of 7 City Council Meeting Draft Action Minutes: 12/9/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and Salvage.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and climate adaptation.” MOTION AS AMENDED PASSED: 5-0 Berman, Burt, Kniss, Scharff absent MOTION: Vice Mayor Schmid moved, seconded by Mayor Holman to add to Goal N-10 (Natural Hazards), a Policy N-52A, Support Regional Efforts on Improving Bay Levees. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “in the Safety Element to include references to other Elements as appropriate.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “the Safety Element should reflect protection and respect for civil rights, civil liberties, and privacy.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “emphasize a safe and secure water supply.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “safety from dangerous climate impacts, such as, but not limited to sea level rise and fire risk.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “the Safety Element will include emergency preparation and coordination with citizens.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “protection from outside threat or terrorism.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to replace in the Motion, “terrorism” with “small and large scale human threats.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND DRAFT ACTION MINUTES Page 6 of 7 City Council Meeting Draft Action Minutes: 12/9/15 MOTION AS AMENDED PASSED: 5-0 Berman, Burt, Kniss, Scharff absent MOTION: Council Member Filseth moved, seconded by Council Member Wolbach to use the original Vision Statement for the Business Element. AMENDMENT: Council Member DuBois moved, seconded by Council Member Filseth to add to the Motion, “replace sentence 3 of the Vision Statement with, ‘the competing needs of residents and businesses will be prioritized so that neighborhoods are protected from increased traffic, parking intrusion, noise, and pollution, while business districts are competitive and attractive.’” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Amendment, “increased traffic” with “traffic impacts.” AMENDMENT AS AMENDED PASSED: 5-0 Berman, Burt, Kniss, Scharff absent MOTION AS AMENDED PASSED: 5-0 Berman, Burt, Kniss, Scharff absent MOTION: Council Member Filseth moved, seconded by Vice Mayor Schmid to adopt the current Goals and organization for the Business and Economic Element. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Modify Goal B-3 (Growth) to adopt policies that moderate the pace of jobs growth, with priority to businesses that provide needed local services and municipal revenues, contribute to economic vitality and enhance the City’s physical environment: A. Request Staff provide the CAC comparative impacts of business types on City revenue generation, and to consider revenue sources as part of their discussion; and B. Cross reference Growth Management Strategies from the Land Use Element.” AMENDMENT: Vice Mayor Schmid moved, seconded by Council Member XX to add to the Motion, “replace Policy B-9 in Goal B-3 with “the City DRAFT ACTION MINUTES Page 7 of 7 City Council Meeting Draft Action Minutes: 12/9/15 recognizes that economic growth, especially greater tax revenues for the community are an important goal.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct CAC and Staff to consider Policies and Programs to promote business development and employer partnerships to significantly mitigate impacts of job growth including but not limited to parking, housing, and traffic.” AMENDMENT: Council Member Filseth moved, seconded by Mayor Holman to replace in the Motion, “moderate” with “manage.” AMENDMENT FAILED: 3-2 DuBois, Schmid no, Berman, Burt, Kniss, Scharff absent INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to direct Staff to replace Goal B-2 (Diversity) with ‘the City’s business policies, culture of innovation, balanced economic goals and diverse local and regional serving businesses combine to stimulate and support viable business opportunities.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “commercial, retail, and professional service” after “support viable.” MOTION AS AMENDED PASSED: 5-0 Berman, Burt, Kniss, Scharff absent Adjournment: The meeting was adjourned at 10:05 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 11 Special Meeting December 14, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:01 P.M. Present: Berman arrived at 5:03 P.M., Burt, DuBois, Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Molly Stump, Suzanne Mason, Dania Torres Wong, Alison Hauk) Employee Organizations: Palo Alto Police Officers Association (PAPOA); Palo Alto Police Managers’ Association (PAPMA); Palo Alto Fire Chiefs’ Association (FCA); International Association of Fire Fighters (IAFF), Local 1319; Service Employees International Union, (SEIU) Local 521; Management, Professional and Confidential Employees; Utilities Management and Professional Association of Palo Alto (UMPAPA) Authority: Government Code Section 54957.6(a). MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to go into Closed Session. MOTION PASSED: 8-0 Berman absent Council went into Closed Session at 5:02 P.M. Council returned from Closed Session at 6:23 P.M. Mayor Holman announced no reportable action. DRAFT ACTION MINUTES Page 2 of 11 City Council Meeting Draft Action Minutes: 12/14/15 Special Orders of the Day 2. 2015 City Manager Year in Review. Agenda Changes, Additions and Deletions None. Minutes Approval 3. Approval of Action Minutes for the November 30, 2015 Council Meeting. MOTION: Council Member Burt moved, seconded by Vice Mayor Schmid to approve the Action Minutes for the November 30, 2015 Council Meeting. MOTION PASSED: 9-0 Consent Calendar MOTION: Council Member Burt moved, seconded by Mayor Holman, third by Council Member Wolbach to pull Agenda Item Number 4- Approval of Scope of Work and Evaluation Criteria… to be heard at a later date. MOTION: Council Member Scharff moved, seconded by Council Member Wolbach, third by Council Member Kniss to pull Agenda Item Number 17- Adoption of an Ordinance…to Move the Day of Policy and Services and Finance Committee Meetings… to be heard at a later date. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to approve Agenda Item Numbers 5-16, incorporating comments from the City Manager relating to Agenda Item Number 10- Approval of the Fire Insurance Settlement Payment…, Agenda Item Number 18 Attachment B (Resolution Amending Salary Schedules) only, and 19-22a. 4. Approval of Scope of Work and Evaluation Criteria for Request for Proposals for Design Development, Environmental Review and Preparation of Construction Cost Estimates for a New Downtown Parking Garage to be Built on the Existing Parking Lot D. DRAFT ACTION MINUTES Page 3 of 11 City Council Meeting Draft Action Minutes: 12/14/15 5. Approval of an Assignment and Assumption Agreement to the Lease Between the City of Palo Alto, R&T Restaurant Corporation and Hee King Bistro Inc. for the Palo Alto Municipal Golf Course Restaurant. 6. Approval of a Contract With Spencon Construction, Inc. in the Amount of $1,402,581 for the 2016 Sidewalk, Curb and Gutter Repairs Project. 7. Approval of Amendment Number 1 to Contract Number C13149733 With Clean Harbors Environmental Services, Inc. in the Amount of $103,135 for a Total Compensation not to Exceed $679,692 for the Transport and Disposal of Ash and Sludge for the Regional Water Quality Control Plant. 8. Approval of Contract Number C16161210 With Shah Kawasaki Architects in the Total Amount not to Exceed $599,052 to Provide Architectural Design Services for Fire Station 3 Replacement - Capital Improvement Program Project PE- 15003. 9. Authorization to Operate the Golf Course From January 1, 2016 to June 30, 2016 and Budget Amendment Ordinance 5366 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto to Increase Golf Course Revenues Estimate in the Amount of $600,956 and Provide Additional Expense Appropriation in the Amount of $600,956.” 10. Approval of the Fire Insurance Settlement Payment of $553,599 From State Farm Insurance Company for the Property Owned by the City of Palo Alto and Frank Benest at 2257 Bryant Street and Authority to Sell Property. 11. Approval of Amendment Number 1 to C & S Engineers, Inc. Contract Number C151555208A to Include Required Federal Contract Provisions and to Increase the Contract by $650,000 for a Total Not-to-Exceed Amount of $900,000 for Professional Engineering and Design Services; Approval of Amendment Number 1 to Mead & Hunt, Inc. Contract Number C151555208B to Include Federal Contract Provisions; and Budget Amendment Ordinance 5367 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto to Close the Airfield Electrical Evaluation/Study Project (AP-16001) and Reduce the Anticipated Federal Aviation Administration (FAA) Reimbursement in the Amount of $90,000 and Restore Available Project Budget of $123,415 to the Airport Enterprise Fund; and Establish the Airport DRAFT ACTION MINUTES Page 4 of 11 City Council Meeting Draft Action Minutes: 12/14/15 Perimeter Fencing Project (AP-16003) in the Amount of $179,838 and Increase the Anticipated FAA Reimbursement in the Amount of $161,854; and Increase the Ending Fund Balance in the Airport Enterprise Fund by $15,431.” 12. Resolution 9566 Entitled, “Resolution of the Council of the City of Palo Alto to Adopt Healthy Social, Cultural and Physical Environments that Promote and Support Wellbeing and Creative Expression for Ourselves, Our Families and Our Community in Support a of Healthy City/Healthy Community.” 13. Resolution 9567 Entitled, “Resolution of the Council of the City of Palo Alto Amending the Memorandum of Agreement for Service Employees International Union (SEIU), Local 521 to: 1) Increase the Salary Range for the “Traffic Operations Lead” Position in the Planning and Community Environment (PCE) Department, and 2) Change the Classification Title to “Traffic Engineering Lead”; and Adoption of a Related Ordinance Amending the Table of Organization.” 14. Approval of Seven Separate Three-Year Contracts With Bodhtree Solutions, Inc., Sierra Infosys, Inc., HPC Heck & Partner Consulting, Inc. dba: HPC America, Techlink Systems, Inc., Quintel-MC, Inc., DGN Technologies, Inc., and Khalid Salman Mohammed for SAP Professional Services in a Total Amount not to Exceed $250,000 Annually for all Seven Contracts. 15. Approval of and Authorization for the City Manager to Execute an Amendment to Contract Number C15154740 With DNV GL Energy Services USA Inc. to Extend the Term Through June 30, 2017 and to Increase the Compensation by $31,200 for a Total not to Exceed Amount of $265,129; and Budget Amendment Ordinance 5368 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto for Fiscal Year 2016 to Provide an Appropriation in the Amount of $32,100 From the General Fund Budget Stabilization Reserve.” 16. Amendment of the Table of Organization to add One Full-Time Equivalent (FTE) Project Manager to the Public Works Department to Implement and Maintain the Infrastructure Management System, and to Coordinate Regular Reporting to Council and the Public on Infrastructure Status, Capital Improvement Projects Status, and the Infrastructure Plan, and Budget Amendment Ordinance 5369. DRAFT ACTION MINUTES Page 5 of 11 City Council Meeting Draft Action Minutes: 12/14/15 17. Adoption of an Ordinance Amending Municipal Code Section 2.04.200 to Move the Day of Policy and Services and Finance Committee Meetings From Tuesdays to Wednesdays Beginning in 2016. 18. Approval of a Contract for Prevailing and Minimum Wage Contract Compliance Program in the Amount of $189,000, Adoption of Resolution 9568 Entitled, “Resolution of the Council of the City of Palo Alto Increasing Palo Alto SEIU Hourly and Limited Hourly Employee Wage Rates to Reflect Implementation of City’s Minimum Wage Ordinance” and Adoption of a Related Budget Amendment Ordinance.” 19. Adoption of an Ordinance Amending Municipal Code Section 2.07.010 to Update Post Government Employment Regulations to Include all City Department Heads. 20. Authorize the City Manager or his Designee to Execute the Revised Agreement Which Would Allow the Palo Alto Police Department to Provide Law Enforcement Services to the new Levi’s Stadium in Santa Clara With Respect to Increased Security During the 2016 Super Bowl. 21. Confirmation of Appointment of Rumi Portillo as Director of Human Resources (Chief People Officer) and Approval of Employment Agreement. 22. Palo Alto Fire Department Quarterly Performance Report for First Quarter Fiscal Year 2016. 22a. Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement With the Board of Trustees of the Leland Stanford Junior University Extending the Term for One Year for a Total Fee of $6.5 Million, and Approval of a Related Budget Amendment Ordinance Reducing the General Fund Budget Stabilization Reserve by $675,000 to Offset a Reduction in FY 2016 Fire Department Revenues. (Continued from December 07, 2015) (STAFF REQUESTS THIS ITEM BE CONTINUED TO JANUARY 11, 2016). MOTION FOR AGENDA ITEM NUMBERS 5-16, 18-22a PASSED: 9-0 DRAFT ACTION MINUTES Page 6 of 11 City Council Meeting Draft Action Minutes: 12/14/15 Action Items 23. Resolution 9569 Entitled, “Resolution of the Council of the City of Palo Alto Declaring Weeds to be a Public Nuisance and Setting January 11th, 2016 for a Public Hearing for Objections to Proposed Weed Abatement.” MOTION: Mayor Holman moved, seconded by Council Member Berman to: A. Adopt a Resolution declaring weeds to be a public nuisance and setting January 11th, 2016 for a Public Hearing; and B. Direct Staff to publish a Notice of the Public Hearing in accordance with the provisions of the Palo Alto Municipal Code. MOTION PASSED: 9-0 24. Conceptual Approval of Expanded Boundaries for the Downtown Residential Preferential Parking (RPP) Program and Council Direction on Parameters for Phase Two of the Program. Council Member Berman advised he would not participate in this Agenda Item because he owns real property in the RPP District. Council Member Scharff advised he would not participate in this Agenda Item out of an abundance of caution and will confer with the Fair Political Practices Commission (FPPC) regarding his ability to participate in future Agenda Items relating to the RPP District. Council Member Filseth advised he would not participate in this Agenda Item because he lives in the RPP District. Mayor Holman advised she would not participate in this Agenda Item because she owns real property in the RPP District. Council took a break from 8:52 P.M. to 9:01 P.M. DRAFT ACTION MINUTES Page 7 of 11 City Council Meeting Draft Action Minutes: 12/14/15 MOTION: Council Member Kniss moved, seconded by Council Member Wolbach to: A. Conceptually approve the annexation of additional areas south of Lincoln Avenue and north-east of Guinda Street into the existing Downtown Residential Preferential Parking (RPP) District; and B. Conceptually approve additional adjacent neighborhoods for eligibility of annexation into the Downtown RPP district in the future, based on resident petition; and C. Direct Staff to return with a Resolution to implement the proposed boundary changes and parameters for Phase 2 of the Downtown RPP Program, scheduled to begin in March 2016, including: i. Modifying the existing RPP District to distribute employee permits using concentric ring zones around the Downtown core; and D. Direct Staff to return with an analysis of program costs and revenues, along with necessary budgeting adjustments to implement desired boundary expansion, including new zones within the existing District, on-site customer service and physical permit sales. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “concentric ring zones” with “microzones as defined by Staff based upon demand.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “limit employee permit sales to 2,000 annually.” AMENDMENT: Council Member Burt moved, seconded by Council Member XX to add to the Motion, “not selling worker permits in additional annexed areas.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND DRAFT ACTION MINUTES Page 8 of 11 City Council Meeting Draft Action Minutes: 12/14/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff and the Stakeholder Group to evaluate and return with recommendations: i. Data gathering by Staff and leveraging partners; and ii. Recommend the number of employee permits in annexed areas; and iii. Evaluate variable pricing; and iv. Review the pros and cons of one block side parking for workers in the most highly impacted areas.” AMENDMENT: Council Member Burt moved, seconded by Council Member XX to add to the Motion, “schedule a Study Session in January.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER to replace in the Motion, “January” with “January/February.” AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “schedule an Action Item in January/February.” AMENDMENT: Council Member DuBois moved, seconded by Council Member XX to replace Part B of the Motion with, “direct Staff to return with a proposal for an outer limit of the Downtown RPP Program and creation of residential RPP for easy annexation by streets that opt-in.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part F (iv), “review the pros and cons of one block side parking for workers in the most highly impacted areas” with “review the pros and cons of distribution mechanism.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to propose a reduction mechanism to decrease employee permit sales based on progress with other traffic reduction programs, and come back to Council with a proposed annual reduction formula. (New Part H) DRAFT ACTION MINUTES Page 9 of 11 City Council Meeting Draft Action Minutes: 12/14/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion at the beginning of Part H, “During Phase 2 implementation.” MOTION AS AMENDED PASSED: 5-0 Berman, Filseth, Holman, Scharff not participating Council took a break from 10:34 P.M. to 10:39 P.M. Council Member Berman, Council Member Filseth, Mayor Holman, and Council Member Scharff returned to the meeting at 10:39 P.M. MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to continue Agenda Item Number 25- Review and Accept the Public Safety Building Site… to a meeting in January. SUBSTITUTE MOTION: Council Member Burt moved, seconded by Mayor Holman to move forward with Agenda Item Number 25- Review and Accept the Public Safety Building Site… and reevaluate taking up Agenda Item Number 26- Next Steps for the Highway 101 Pedestrian/Bicycle Overpass… later in the evening. SUBSTITUTE MOTION PASSED: 8-1 Kniss no 25. Review and Accept the Public Safety Building Site Evaluation Study of California Avenue Parking Lots C-6 and C-7 for Construction of a New Public Safety Building and Public Parking Structure; Direct Staff to Proceed With Design and Environmental Review of a 3-Story Public Safety Building Meeting Zoning Requirements on Lot C-6, and to Proceed With Design and Environmental Review of a New Public Parking Garage on Lot C-7 That Will Provide Approximately 460 (160 Net New) Public Parking Spaces. MOTION: Council Member Scharff moved, seconded by Council Member Berman to direct Staff to proceed with design and environmental review of a 3-story Public Safety Building meeting zoning requirements on Lot C-6, and to proceed with design and environmental review of a new public parking garage using Option C (as described in the Staff Report) on Lot C-7 that will provide approximately 460 public parking spaces (160 net new spaces), including evaluation of costs and other impacts to potentially provide additional parking beyond the 460 spaces. DRAFT ACTION MINUTES Page 10 of 11 City Council Meeting Draft Action Minutes: 12/14/15 SUBSTITUTE MOTION: Council Member Wolbach moved, seconded by Council Member XX to: A. Review and accept the Public Safety Building Site Evaluation Study of California Avenue Parking Lots C-6 and C-7 for construction of a new Public Safety Building and public parking structure; and B. Direct Staff to proceed with design and environmental review of a 3-story Public Safety Building meeting zoning requirements on Lot C-6, and to proceed with design and environmental review of a new public parking garage on Lot C-7 that will provide approximately 460 public parking spaces (160 net new spaces), including evaluation of costs and other impacts to potentially provide additional parking beyond the 460 spaces. SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND MOTION PASSED: 9-0 26. Next Steps for the Highway 101 Pedestrian/Bicycle Overpass Project: Direct Staff to Cease Negotiations With Moffat & Nichol, Issue a new Request for Proposal (RFP), and Seek Additional Funding. MOTION: Council Member Wolbach moved, seconded by Council Member Kniss to: A. Cease negotiations with Moffat and Nichol for a contract for design of the Moffat and Nichol low-profile suspension bridge, Submission C, from the Adobe Creek Pedestrian & Cyclist Bridge 2014 Design Competition; and B. Proceed with a Request for Proposal (RFP) for design services to develop a new bridge concept for the Highway 101 Pedestrian/Bicycle Overpass Capital Improvement Program (CIP) project PE-11011 that meets the current CIP budget of $10.1 million (not including Staff costs), with a budget addition of $0.35 million in Regional Improvement Program construction funds and a potential budget contribution of $1.0 million from Google, for a total anticipated budget of $11.4 million; and DRAFT ACTION MINUTES Page 11 of 11 City Council Meeting Draft Action Minutes: 12/14/15 C. Partner with Google to secure a $1.0 million contribution from the company to supplement the project budget for the Highway 101 Pedestrian/Bicycle Overpass; and D. Pursue additional public and private funding to support inclusion of enhancements to standard bridge design and construction cost increases, for a potential upper project budget of $13 to $17 million. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in Part C of the Motion, “a $1.0 million contribution” with “additional funding options.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from Part C of the Motion, “and a potential budget contribution of $1.0 million from Google.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “$10.1 million (not including Staff costs), with a budget addition of $0.35 million in Regional Improvement Program construction funds for a total anticipated budget of $11.4 million” with “$13 million.” SUBSTITUTE MOTION: Council Member DuBois moved, seconded by Council Member XX to move forward with the Moffat and Nichol bridge design with a hard budget of $13 million. SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from Part D of the Motion, “for a potential upper project budget of $13 to $17 million.” MOTION AS AMENDED PASSED: 9-0 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Adjournment: The meeting was adjourned at 12:58 A.M. City of Palo Alto (ID # 6449) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Local Solar Plan and PV Partners Update Title: Finance Committee Recommendation to Continue the PV Partners Program Until the State Legislative Requirements Set Forth in the California Million Solar Roof Bill Have Been Fulfilled From: City Manager Lead Department: Utilities Recommendation Staff, the Utilities Advisory Commission (UAC), and the Finance Committee recommend that the City Council continue the PV Partners program for rebates for customer-sited solar photovoltaic (PV) systems until the state legislative requirements set forth in California Million Solar Roofs Bill (SB1) have been fulfilled. Executive Summary On April 22, 2014, Council adopted the Local Solar Plan, which establishes the goal of meeting 4% of the City’s energy needs from local solar by 2023 and outlines a set of diverse strategies to achieve it within a set of guiding objectives. The Local Solar Plan provides a holistic framework incorporating all market segments and short- and long-term approaches. The plan further seeks to do so in a cost-effective manner. Prior programs, incentives, and policies involving solar installed in the City are integrated into the Local Solar Plan strategies, and new programmatic areas are identified for staff research and development. The City has long supported local PV and the Local Solar Plan demonstrates the City’s continued commitment to encourage local PV installations. The PV Partners program was the City’s first program to encourage local PV as it was established in 1999 to provide rebates for customer- sited solar PV systems for both residential and commercial customers. In 2006, California adopted the Million Solar Roofs Bill (Senate Bill 1 or SB1), and funding for PV Partners was increased by $13 million to meet the City’s legislative obligations. All residential rebate funds were completely reserved as of August 2014 and limited funds currently remain available for commercial customers. Staff recommends continuing the program only until all legislative requirements have been fulfilled and not expanding residential PV rebate funds for four primary reasons: 1) the goals of SB1 to facilitate statewide deployment of 3,000 megawatts (MW) of solar and create a self-sustaining solar market have already been achieved, 2) City of Palo Alto Page 2 alternate solar procurement models such as a group-buy program model have resulted in lower system prices for customers than systems installed with PV Partners rebates, 3) the administrative costs of the rebate program for both City staff and solar installers are substantial compared to alternate solar procurement models, and 4) re-opening rebates to residential customer would result in disruptive market dynamics and messaging. Instead of expanding residential rebates for customer-sited photovoltaics, staff will continue to encourage local solar PV installations through the initiatives identified in the Local Solar Plan. Specifically, staff will focus its efforts to launch a community solar program that would allow anyone to participate in the solar movement, and to launch a solar donation program to help local schools and non-profits install solar systems. Background The report provided to the Finance Committee for its December 1, 2015 meeting (Staff Report 6213) provides an update on the state of solar installed in Palo Alto and a detailed status of all Local Solar Plan implementation efforts to date, including the status of three program initiatives (a community solar program, a solar group-buy program, and a solar donation program) and current efforts towards implementing net energy metering (NEM) incentives. The report (provided as Attachment 1) includes a strategy-by-strategy update of all implementation efforts that have been completed to date and that are planned for the near term. Discussion As of August 2014, all residential rebate funds for solar PV systems through the PV Partners program were reserved with limited funds remaining for commercial customers. On March 17, 2015, the Finance Committee requested that staff return to the Committee for a discussion about the options for continuing PV Partners rebate funds for residential use—either by adding new funds for rebates or by shifting the remaining rebate funds not yet reserved by commercial customers to residential customers. Members of the Committee questioned whether additional rebates for residents might yield more solar deployment than funds directed to solar developers through the Palo Alto CLEAN program. Staff recommends retiring PV Partners after the City’s legislative requirements set by SB1 have been achieved, and not shifting funds from the commercial customer class to the residential customer class for four primary reasons, which are summarized below 1. SB1 goals will have been met; 2. The objective of lowering the cost of solar can be achieved in other ways; 3. PV Partners Program administrative costs are high; and 4. Making rebate funds available again to residential customers will result in disruptive market dynamics. The reasons and the alternatives are discussed in more detail in the report provided for the Finance Committee’s December 1, 2015 meeting (Attachment 1). City of Palo Alto Page 3 Committee Review The UAC reviewed staff’s recommendation at its October 7, 2015, meeting and voted unanimously to support staff’s recommendation. The minutes to the UAC meeting are provided as Attachment 2. The Finance Committee reviewed the recommendation at its December 1, 2015, meeting. Noting that residents have continued to install solar PV without rebates, one Committee member asked if the program could be stopped now with the remaining funds devoted to another program, such as electrification. Staff advised that all program funds must be spent to comply with the SB1 mandate. Another Committee member asked if the successful discount/group buy program (Peninsula SunShares) that lowered costs could be repeated. Staff replied that it is currently focusing on designing a community solar program and a solar donation program, but that perhaps after the federal tax incentives expire, a new group buy program could be developed. After a number of clarifying questions, the Finance Committee expressed support for the recommendation and voted unanimously (4-0) to recommend Council approve the recommendation. Action minutes from the December 1, 2015, Finance Committee meeting are provided as Attachment 3. Resource Impact There is no change to budgets, planned expenditures or staff resources as a result of staff’s recommendation to discontinue the PV Partners program once solar legislative mandates have been met. Administering the PV Partners program requires dedicated staff resources through at least 2020 to disperse all remaining rebate funds1. Once all program funding has been reserved by customers and no more new applications are being processed, the ongoing staff resource impact is anticipated to be 0.02 FTE to process performance-based incentive (PBI) payments that are paid out over a five-year time frame. After all program funding has been reserved, available staff resources will be reallocated to other solar program initiatives. If, however, Council desires to add new rebates for residential solar PV, there would be a budget and rate impact for the Electric Fund. Policy Impact The recommendation to continue the PV Partners program only until solar legislative mandates have been met does not conflict with any City policy. The Local Solar Plan supports the City’s environmental sustainability goals, including those set out in the Council-approved 2011 Utilities Strategic Plan and the City’s Sustainability and Climate Protection Plan. Fulfilling our SB1 legislative mandates through PV Partners will help promote solar development and is consistent with the Carbon Neutral Plan, the Local Solar Plan, and State and local efforts to promote distributed solar projects. 1 For PV Partners reservations that are already approved, the last estimated performance-based incentive (PBI) payment date is 2020. However, if staff receives an application for all or a portion of the remaining rebate funds as a part of a new construction project, then the project may require PBI payments through 2022. City of Palo Alto Page 4 Environmental Impact Discontinuing the PV Partners program once solar legislative mandates have been met does not meet the California Environmental Quality Act’s (CEQA) definition of “project” under California Public Resources Code Sec. 21065, thus no environmental review is required. Attachments:  Attachment A: Finance Committee Staff Report 6213 Local Solar Plan and PV Partners Program Update (PDF)  Attachment B: 12-1-2015 FCM Minutes Excerpt Number 3 (DOC) City of Palo Alto (ID # 6213) Finance Committee Staff Report Report Type: Action Items Meeting Date: 12/1/2015 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Local Solar Plan and PV Partners Program Update Title: Utilities Advisory Commission Recommendation to Continue the PV Partners Program Until the State Legislative Requirements Set Forth in the California Million Solar Roof Bill Have Been Fulfilled From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee recommend that the City Council continue the PV Partners program for rebates for customer- sited solar photovoltaic (PV) systems until the state legislative requirements set forth in California Million Solar Roofs Bill (SB1) have been fulfilled. Executive Summary On April 22, 2014, Council adopted the Local Solar Plan, which establishes the goal of meeting 4% of the City’s energy needs from local solar by 2023 and outlines a set of diverse strategies to achieve it within a set of guiding objectives. The Local Solar Plan provides a holistic framework incorporating all market segments and short- and long-term approaches. The plan further seeks to do so in a cost-effective manner. Prior programs, incentives, and policies involving solar installed in the City are integrated into the Local Solar Plan strategies, and new programmatic areas are identified for staff research and development. This report provides an update on the state of solar installed in Palo Alto and a detailed status of all Local Solar Plan implementation efforts to date, including the status of three program initiatives (a community solar program, a solar group-buy program, and a solar donation program) and current efforts towards implementing net energy metering (NEM) incentives. Preliminary results from a solar potential analysis confirm that the overarching Local Solar Plan goal of meeting 4% of the City’s electricity needs is achievable with current programs (PV Partners, Palo Alto CLEAN program, and NEM), continued falling solar system prices, and the planned community solar and solar donation programs. The City’s progress toward meeting the ATTACHMENT 1 City of Palo Alto Page 2 Local Solar Plan goal will be re-evaluated and communicated on an ongoing basis as current and future programs are brought forward for UAC, Finance Committee, and Council review. The City has long supported local PV and the Local Solar Plan demonstrates the City’s continued commitment to encourage local PV installations. The PV Partners program was the City’s first program to encourage local PV as it was established in 1999 to provide rebates for customer- sited solar PV systems for both residential and commercial customers. In 2006, California adopted the Million Solar Roofs Bill (Senate Bill 1 or SB1), and funding for PV Partners was increased by $13 million to meet the City’s legislative obligations. All residential rebate funds were completely reserved as of August 2014 and limited funds currently remain available for commercial customers. Staff recommends continuing the program only until all legislative requirements have been fulfilled and not expanding residential PV rebate funds for four primary reasons: 1) the goals of SB1 to facilitate statewide deployment of 3,000 megawatts (MW) of solar and create a self-sustaining solar market have already been achieved, 2) alternate solar procurement models such as a group-buy program model have resulted in lower system prices for customers than systems installed with PV Partners rebates, 3) the administrative costs of the rebate program for both City staff and solar installers are substantial compared to alternate solar procurement models, and 4) re-opening rebates to residential customer would result in disruptive market dynamics and messaging. Instead of expanding residential rebates for customer-sited photovoltaics, staff will continue the initiatives identified in the Local Solar Plan to serve previously under-served residential and non-residential customers. Specifically, staff will focus its efforts to launch a community solar program that would allow anyone to participate in the solar movement, and to launch a solar donation program to help local schools and non-profits install solar systems. Background The City has been a leader in local solar development starting in 1980 when it launched a solar hot water heating program. California State law (Assembly Bill 1470) established a requirement in 2007 for all natural gas utilities to offer rebates for solar water heating systems. In 2008, the City of Palo Alto Utilities (CPAU) launched the Solar Water Heating (SWH) Program which provides rebates to customers who install qualifying solar water heating systems that offset energy used by an existing water heater or boiler for domestic water heating uses. The State’s goal is to install 200,000 solar water heating systems by 2017, and CPAU’s proportionate share is approximately 530 systems. The City’s 2007 Climate Protection Plan established a goal of achieving 1,000 systems by 2020. As of August 1, 2015, $281,370 in rebates have been issued under the program for a total of 58 systems. The slow uptake is due in part to the poor customer economics. The program is expected to continue through 2017 with incentive levels decreasing over the program lifetime. In 1999, the City launched its first solar PV system rebate program called PV Partners to encourage residents and businesses to install solar PV systems. In 2006, California adopted SB1, the “Million Solar Roofs” bill, which requires that all load serving entities such as CPAU provide City of Palo Alto Page 3 incentives in the form of rebates to meet the goal of installing 3,000 megawatts (MW) of solar PV systems in California by 2017. The City’s proportionate share of the statewide goal is 6.5 MW by 2017. To meet the SB1 requirements, the CPAU increased the PV Partners Program budget to $13 million over ten years, with proportions of the funding allocated across four customer classes: residential, small and medium commercial, large commercial and non- profit/public sector. Table 1 provides a summary of the solar PV installations through the PV Partners program through August 1, 2015: Table 1: PV Partners Program Summary PV Partners Program Capacity (MW) Installed Between 1999 and 2006 (Prior to SB1) Installed Under SB1 as of 8/1/15 Pending Projects/ Reserved Capacity Unreserved Capacity Total PV Partners Program Residential 0.62 1.89 0.05 0 2.56 Commercial 0.31 3.76 0.52 0.91 5.50 TOTAL 0.93 5.65 0.57 0.91 8.06 As of August 1, 2015, 6.7 MW of solar PV has been installed1 on 785 customer sites and an additional 0.57 MW of new solar PV installations at 14 customer sites have confirmed PV Partners rebates and are pending completion. All residential rebate funds were reserved as of August 2014. Currently, $1.1 million in funds remain unreserved for commercial solar PV systems. In the unlikely event that any of the PV Partners funds remain unreserved at the end of 2017, marking the end of the 10-year SB1 program, the funds will return to the Electric Fund. In 2012, the City launched the Palo Alto Clean Local Energy Access Now (CLEAN) program (Staff Report 2548, Resolution 9235), a feed-in tariff program. Through Palo Alto CLEAN, building owners may lease their roof tops to solar developers, or develop solar themselves, and sell the energy and renewable attributes to the City under a standard Power Purchase Agreement (PPA) at a fixed rate over a specified term. The current Palo Alto CLEAN PPA price for solar PV systems is $0.165 per kilowatt-hour (kWh) for a 20- or 25-year contract term for up to a maximum of 3 MW total of capacity. On May 27, 2015 (Staff Report 5756), Council opened the program to eligible non-solar generation technologies under a separate 3 MW cap at a rate of $0.093/kWh or $0.094/kWh price for a 20-year, or 25-year PPA, respectively. There have been no applications for the Palo Alto CLEAN program to date. On April 22, 2014, the City Council adopted the Local Solar Plan (Attachment A, Staff Report 4608, Resolution 9402), which set the overarching goal of meeting 4% of the City’s total energy needs from local solar by 2023 and unified the City’s approach toward local solar and described a set of diverse strategies for meeting the set goal. The Local Solar Plan provides a holistic 1 This total includes the 0.93 MW installed under PV Partners prior to SB1, the 5.65 MW installed after SB1 and the systems that have been installed after PV Partners rebates for residential customers were no longer available. City of Palo Alto Page 4 framework and incorporates all market segments and short- and long-term approaches. The plan further seeks to do so in a cost-effective manner that does not create a burden on non- solar customers. Prior programs, incentives, and policies involving solar installed in the City— including specifically PV Partners, NEM, and CLEAN—are integrated into the Local Solar Plan strategies, and new programmatic areas are identified for staff research and development. The strategies range from supporting research and development partnerships supporting solar innovation to establishing programs for underserved market segments, such as residents in multifamily homes and renters. Discussion Status of Local Solar Plan Implementation Efforts A strategy-by-strategy update of all implementation efforts that have been completed to date and that are planned for the near term is provided as Attachment B. Detail about program development, the status of net energy metering, and the future of PV Partners is included below. Updated Local Solar Penetration, Forecast, and Goal Figure 1 shows cumulative solar PV installations in Palo Alto from 1999 through August 13, 2015. An estimated 785 systems and 6.7 MW of capacity are currently installed representing over 1% of the City’s annual energy needs. Figure 1: Cumulative Solar PV in kW CEC-AC2 Installed in Palo Alto through August 13, 2015 2 The California Energy Commission Alternating Current, or CEC-AC, rating is the product of the number of PV panels, the Practical Test Conditions (PTC) rating per panel, and the inverter efficiency. City of Palo Alto Page 5 Solar Potential Assessment As a part of the Local Solar Plan, staff is completing a detailed GIS-based (geographic information system) solar potential assessment for Palo Alto. The analysis takes into account an assortment of factors affecting solar deployment, including:  Latitude/longitude of Palo Alto  Typical meteorological conditions  Land-use constraints  Orientation and slope of rooftops  Shading from surrounding trees and buildings  Industry average solar system performance  Forecast of solar system costs  Federal, state, local financial incentives  Assumption for expected financial return  Federal, state, local policies and regulations  Assumption for local adoption rate  Renters versus owner-occupied households Table 2 shows updated values for all installed, planned and forecasted solar PV. The overarching Local Solar Plan goal is that solar PV provide 4% of the City’s 2013 load, which translates to about 23 MW of installed local solar PV capacity. After accounting for 8 MW from the PV Partners program, 3 MW through the Palo Alto CLEAN program and 2 MW for new community solar and solar donation programs that are under development, almost 10 MW of additional solar capacity is required to meet the Local Solar Plan’s 2023 goal. Staff believes that this is feasible given existing incentives and realistic forecasts for falling solar system prices. The solar potential analysis supports the conclusion that the City can meet the 23 MW goal without expanding rebates or net energy metering incentives. Table 2: Updated Installed, Planned, and Forecast Solar PV and Local Solar Plan Goal Program Status as of August 2015 Capacity (MW) Energy (MWh/yr) % of City’s Energy Use PV Partners Program (Installed and Remaining Capacity) 8.0 13,600 1.4% CLEAN Program, Planned Capacity for Solar PV 3.0 5,100 0.5% Non-Rebated Solar Installed to Date 0.3 510 0.05% Anticipated Capacity for Community Solar and Solar Donation Programs 2.0 3,400 0.4% Additional Solar PV to Meet Local Solar Plan Goal 9.7 16,500 1.7% Solar Penetration Goal in 2023 23.0 39,100 4.0% It is important to emphasize that the City is much less certain to achieve the Local Solar Plan goal without successfully deploying 3 MW through the CLEAN program and 2 MW through the future community solar and solar donation programs. City of Palo Alto Page 6 Program Development Update Three programs were identified in the Local Solar Plan as having potential to spur solar adoption and broaden participation: 1) community solar program; 2) a solar group-buy program; and 3) a solar donation program. 1. Community Solar Program: Community solar programs (aka shared solar) typically enable an electric utility’s customers to buy or lease solar panels in a centralized solar PV array and receive regular credits for electric output via their utility bills. Community solar programs are growing rapidly across the U.S. because they enable residents and businesses to experience and derive the benefits from cost-effective local solar deployment, even if they are unable to install solar at their own premises, for example because of shading, ownership, structural or financial reasons. Staff attempted to seek a partner to implement a turnkey community solar program and issued a request for proposal (RFP) in July 2014 from a program administrator/solar developer. The turnkey proposal did not materialize and staff terminated the RFP. More information was provided to the UAC in July and to Council in August 2015 (Staff Report 5971). Staff is currently evaluating other methods to provide community solar for Palo Alto, which include utilizing municipal facilities to host community solar. In July 2015, an inter- departmental committee was formed to develop a work plan for installing solar on City facilities and, in the near term, identify a municipal site to host the solar system for the community solar program. The committee is currently completing a comprehensive database that combines site information for all municipal facilities with other solar-relevant data, such as rooftop technical potential, on-site electricity consumption, and building lease and use constraints. Upon completing the database, staff will retain the services of a solar procurement specialist and adopt a work plan for installing solar on all viable facilities. Staff expects to finalize the community solar site selection and begin the solar PV system procurement process by Fall 2015. 2. Solar Group-Buy Program: Solar Group-Buy programs (aka group-discount or bulk buy) have historically been successful in driving down system costs by aggregating purchasing power and simplifying the process of solar adoption across a community. The City was fortunately able to participate in Peninsula SunShares, a large, regional group-buy effort led by the City of Foster City. An informational report about the program was provided to the UAC in October 2014 and to City Council in November 2014 (Staff Report 5144). Peninsula SunShares launched on April 31, 2015, and was open to all residents in the nine Bay Area counties who registered by August 10. The entire program is expected to result in over 800 kW in new solar installations across the Bay Area. Palo Alto led the region in number of enrollments with an estimated 28% of total participation. 54 Palo Alto residents signed contracts to install 236 kilowatts (kW) of solar systems. Given the success of the program, staff plans to seek opportunities to join future regional group-buy efforts. City of Palo Alto Page 7 3. Solar Donation Program: In a solar donation program, participants would contribute funds towards building solar PV systems on schools and other non-profit facilities. The projects could be funded in a variety of ways, including via donations from participants through monthly contributions (e.g., $5 to $10 per month) through their utility bills. This program is estimated to take the least amount of staff time to develop. Research and development of the program is planned for Winter 2015/2016 followed by review by the UAC and approvals by the Finance Committee and Council leading to a program launch in Spring 2017. Table 3 is a tentative timeline for the review, approval and launch for the three programs. Table 3: Tentative Review and Approval Timeline for Major Programs Program Development UAC Review Fin. Comm. Review Council Review Program Launch 1. Group-Buy Program (Complete) Summer 2014 Oct 2014 N/A Nov 2014 April 2015 2. Community Solar Program May 2014 – Present Spring 2016 Spring 2016 Summer 2016 Winter 2016/2017 3. Solar Donation Program Winter 2015/2016 Summer 2016 Summer 2016 Fall 2016 Spring 2017 Net Energy Metering In 1996, California state law required all electric load serving utilities to offer net energy metering (NEM) to eligible customers on a first-come, first-served basis up to a maximum cap based on the utility’s aggregate customer peak demand. NEM is a special billing arrangement that provides a bill credit to customers with eligible solar PV or other net metered systems based on the full retail rate for the electricity that their system generates. Palo Alto’s NEM cap is set at 5% of the City’s 2006 peak electric demand or 9.5 MW. Current installations total 6.7 MW, representing 3.5% of the utility’s aggregate customer peak demand. Staff estimates that the City will meet the 9.5 MW NEM cap by the end of 2016. To date, all local solar installations utilize NEM and all net energy metered systems are solar PV3. Staff plans to seek Council approval of the NEM cap to memorialize the calculation methodology and clarify any ambiguity related to Palo Alto’s NEM cap. Additionally, as the City approaches its NEM cap, staff will begin reporting progress towards meeting the cap in order to further support market certainty and inform customer decision-making. After the cap has been reached, customer-sited systems will be subject to a different set of terms and conditions, referred to as the NEM successor program. Staff is preparing proposed 3 In principal, customers may install a variety of distributed energy technologies on-site that would be eligible for NEM, including, for example, geothermal electric, fuel cell, wind, biomass, and anaerobic digestion technologies. In practice, staff expects the vast majority—if not all—of on-site generation and NEM participation to be solar PV. City of Palo Alto Page 8 design guidelines for the NEM successor program in Palo Alto to supplement the electric cost of service analysis (COSA) guidelines approved by Council on September 15, 2015 (Staff Report 6061). Staff plans to further clarify terms and conditions for existing NEM participants (aka “grandfathering” provisions) and a NEM successor program for UAC, Finance Committee and Council consideration by early 2016. Recommendation Regarding the PV Partners Program As of August 2014, all residential rebate funds for solar PV systems through the PV Partners program were reserved. Limited funds remain available for commercial customers. On March 17, 2015, the Finance Committee requested that staff return to the Committee for a discussion about the options for continuing PV Partners rebate funds for residential use—either by adding new funds for rebates or by shifting the remaining rebate funds not yet reserved by commercial customers to residential customers. Members of the Committee questioned whether additional rebates for residents might yield more solar deployment than funds directed to solar developers through the Palo Alto CLEAN program. Staff recommends retiring PV Partners after the City’s legislative requirements set by SB1 have been achieved, and not shifting funds from the commercial customer class to the residential customer class for four primary reasons. 1. SB1 Goals Will Have Been Met The explicit goal of SB1 is to aid the deployment of 3,000 MW of solar PV across the state by the end of 2018. In Palo Alto, staff expects all PV Partners rebate funds to be fully reserved by the end of the 10-year program, so that the City will meet its contribution toward the statewide goal. Additionally, the implicit goal of SB1 is to create a self-sustaining solar market, a goal that was reinforced through a program design that ratcheted down incentive levels with increased deployment so as to encourage solar installers to continually seek cost-reductions. Even though the SB1 rebates through Pacific Gas & Electric (PG&E) and other investor owned utilities (IOUs) have been nearly completely reserved4, solar deployment has continued such that California as a whole has already exceeded the statewide SB1 deployment target of 3,000 MW5. In Palo Alto’s service territory, residential installations have not slowed down absent rebates. All data support that the implicit goal to create a self-sustaining solar market has already been achieved. 2. The Objective of Lowering the Cost of Solar Can be Achieved in Other Ways Alternative solar adoption models can result in lower overall systems costs and at a substantially reduced cost to electric utility ratepayers compared to continuing the PV Partners rebate program. Specifically, group-buy programs that aggregate the purchasing power of many households across an organization or region have achieved substantial reductions in system costs by lowering the customer acquisition costs for solar developers and facilitating economies 4 As of August 19, 2015, less than 1 MW worth of rebate funds remain for all IOUs combined. (http://csi- trigger.com/) PG&E ceased accepting applications for residential rebates in Fall 2013. 5 As of August 19, 2015, solar deployment in California is 3,216 MW (http://www.gosolarcalifornia.org/). City of Palo Alto Page 9 of scale. The system price offered through the Peninsula SunShares group-buy program for the most basic installation was $3.50/Watt-Direct Current (DC) (approx. $4.40/Watt CEC-AC) for a 3 to 9 kilowatt system for a cash purchase (i.e. not including any financing option). Prices for similar-sized customer-owned systems that applied for a PV Partners rebate in the last two years were $4.70/Watt-DC (approx. $5.90/Watt CEC-AC) prior to receiving the rebate, and $4.02/Watt-DC (approx. $5.00/Watt CEC-AC) after receiving the rebate. Therefore, a solar system purchased through the Peninsula SunShares program was over 10% cheaper than the post-rebate solar system cost through the PV Partners program and 25% cheaper than the pre- rebate solar system cost. Figure 2 shows the historical average annual system cost of solar PV installed through the PV Partners program. The base price for the Peninsula SunShares program is included for comparison. Figure 2: Average System Cost Installed through PV Partners 3. PV Partners Administrative Costs are High Finally, the rebate and administrative costs of the PV Partners program are high, including the administrative costs borne both by the City and by solar installers that are completing the paperwork on behalf of utility customers. The California Energy Commission (CEC) set onerous requirements for the implementation of SB1. Staff estimates that each residential rebate application requires about 3 hours total of administrative work by City staff and solar installers, in addition to a $50 per application cost for rebate processing software. The administrative costs combined with the rebate value is over $2 per Watt-DC averaged over the program’s history, which are costs paid for by all electric utility ratepayers. By comparison, staff estimated City of Palo Alto Page 10 the administrative costs of a solar group-buy program for residential systems to be less than $0.07 per Watt-DC. Of course, a new residential solar PV rebate program could avoid the onerous requirements set by the CEC for SB1 eligibility, but it’s still instructive to realize the administrative cost advantage that a group-buy program offers. However, shifting the remaining rebate funds not yet reserved by commercial customers to residential customers under PV Partners would not avoid the CEC requirements. 4. Making Rebate Funds Available Again to Residential Customers Will Result in Disruptive Market Dynamics Residential rebate funds have been fully reserved for over 13 months. Making rebate funds available again to residential customers will result in disruptive market dynamics and confusing messaging to customers. Furthermore, it may have the unintended consequence of alienating the dozens of households who have already installed systems without receiving rebates. Alternatives for PV Partners Alternatives to staff’s recommendation to retire the PV Partners program after solar legislative mandates have been met include: 1) transferring the remaining PV Partners rebate funds not yet reserved by commercial customers to residential customers; 2) adding new rebate funds for residential customers from Electric Fund ratepayers; and 3) adding new rebate funds for residential customers from the City’s General Fund. Staff does not recommend any of the alternatives. The rate of residential installations has not slowed since rebates for residential customers were fully reserved, indicating that rebates are not required for customer adoption. A program providing rebates would therefore very likely result in a high proportion of “free-ridership”, a hallmark of an ineffective incentive program design. Commission Review The UAC reviewed staff’s recommendation at its October 7, 2015, meeting. Commissioners were supportive of the staff proposal after asking a variety of clarifying questions. For instance, commissioners asked whether the City could meet the Local Solar Plan goal after the PV Partners program is retired, whether the changing federal incentive levels would affect staff’s projection of solar PV deployment, and whether behavior was considered in the forecasted solar potential. Ultimately, the UAC supported staff’s recommendation and voted unanimously (7-0 with Commissioners Ballantine, Cook, Danaher, Eglash, Foster, Hall and Schwartz voting yes) to recommend that Council discontinue the PV Partners program after all legislative requirements set forth in SB1 are fulfilled. Draft excerpted notes from the UAC’s October 7, 2015, meeting are provided as Attachment C. City of Palo Alto Page 11 Next Steps Table 4 is a tentative timeline of all activities planned in the near future for the continued implementation of the Local Solar Plan. Table 4: Tentative Timeline for Near-term Implementation of the Local Solar Plan Time Period Description Fall 2015  Develop a strategy for solar on municipal facilities  Complete implementation of AB 2188 (Development Center)  Clarification of NEM cap calculation methodology to Council  Design guidelines for the NEM successor program to the UAC, Finance Committee, Council  Incorporate solar perspective throughout the electric COSA process Winter 2015/2016  Begin reporting progress toward the NEM cap in Utilities Quarterly Update and on CPAU solar website: http://www.cityofpaloalto.org/solar  Complete study of distribution system impacts of high penetrations of solar PV and EV  Incorporate solar perspective throughout the electric COSA process (cont.)  NEM successor program and grandfathering provisions to the UAC, Finance Committee, Council  Continuation of community solar program research and development  Begin solar donation program research and development Spring 2016  Community solar program design to the UAC, Finance Committee, Council Resource Impact There is no change to budgets, planned expenditures or staff resources as a result of staff’s recommendation to discontinue the PV Partners program once solar legislative mandates have been met. Administering the PV Partners program requires dedicated staff resources through at least 2020 to disperse all remaining rebate funds6. Once all program funding has been reserved by customers and no more new applications are being processed, the ongoing staff resource impact is anticipated to be 0.02 FTE to process performance-based incentive (PBI) payments that are paid out over a five year time frame. After all program funding has been reserved, available staff resources will be reallocated to other solar program initiatives. If, however, Council desires to add new rebates for residential solar PV, there would be a budget and rate impact for the Electric Fund. Policy Impact The recommendation to discontinue the PV Partners program once solar legislative mandates have been met does not conflict with any City policy. The Local Solar Plan supports the City’s 6 For PV Partners reservations that are already approved, the last estimated performance-based incentive (PBI) payment date is 2020. However, if staff receives an application for all or a portion of the remaining rebate funds as a part of a new construction project, then the project may require PBI payments through 2022. City of Palo Alto Page 12 environmental sustainability goals, including those set out in the Council-approved 2011 Utilities Strategic Plan and the City’s Sustainability and Climate Protection Plan. Fulfilling our SB1 legislative mandates through PV Partners will help promote solar development and is consistent with the Carbon Neutral Plan, the Local Solar Plan, and State and local efforts to promote distributed solar projects. Environmental Impact Discontinuing the PV Partners program once solar legislative mandates have been met does not meet the California Environmental Quality Act’s (CEQA) definition of “project” under California Public Resources Code Sec. 21065, thus no environmental review is required. Attachments:  Attachment A: Adopted Local Solar Plan (PDF)  Attachment B: Summary of Local Solar Plan Implementation Efforts (PDF) Attachment A A-1 Exhibit A to Resolution No 9402 Adopted by City Council on April 21, 2014 City of Palo Alto Utilities – Local Solar Plan Goal To increase the installation of local solar photovoltaic facilities to provide 4 percent of the City’s total energy needs by 2023. Objectives 1. Facilitate the development of local, safe and cost-effective solar in Palo Alto to meet the diverse needs of the community 2. Reduce the cost of installing solar in Palo Alto and become a leader in promoting renewable distributed generation through solar installations 3. Understand the community’s solar potential and diverse needs and develop solar programs accordingly 4. Remove internal obstacles to minimize cost and achieve greater solar potential 5. Promote solar installations in a cost effective and safe manner 6. Leverage industry resources to the extent possible 7. Deploy industry best practices Strategies 1. Remove internal system and institutional barriers which increase “soft” costs and may impede adoption of solar in Palo Alto a. Work with the Development Center, Planning and Utilities to identify further improvements to streamline the solar permitting process. b. Promote advancements in the City’s permitting process to community and solar developers. 2. Develop proper policies, incentives, price signals and rates to encourage solar installation a. Solar Policy and Rate Design – explore rate structures that balance cost of service with the City’s policy to promote the development of new solar systems in Palo Alto. i. When evaluating new solar policies, evaluate the impact, if any, on non-solar ratepayers. b. City of Palo Alto Utilities (CPAU) Billing System – explore modifications to the billing system and/or evaluate: i. Incorporating net metering information on the monthly bills ii. Virtual net metering to allow the sharing of net metering bill credits across accounts c. CPAU Incentives – assess providing rebates or other incentives after the SB1 mandated expenditures are exhausted, the Federal Investment Tax Credit has been reduced from 30% to 10% and the net-metering cap has been met, to continue to encourage local solar installations. Attachment A A-2 d. Leverage available resources for solar policy and program development i. Participate in the Federal Department of Energy’s American Solar Transformation Initiative to receive free services including development of a customized solar road map ii. Request assistance from existing membership in Solar Electric Power Association and ESource iii. Consider partnering with regional cities, counties and the State of California in developing solar programs e. Advocate at a local, regional and state level for effective rules, regulations and legislation to promote cost effective and fair solar development i. Coordinate with other municipal utilities through the Northern California Power Agency (NCPA) and the California Municipal Utilities Association (CMUA) on state legislation related to solar 3. Assess technical and market potential of solar in Palo Alto a. Review commercial and residential sites to determine solar technical potential b. Determine cost drivers for installing solar in Palo Alto c. Utilize other industry studies to develop a feasible and marketable potential d. Develop a database of solar potential e. Assess the impacts of PV on CPAU’s distribution system 4. Implement policies and programs to increase solar system installations on CPAU customer sites with good solar access a. Continue to promote the PV Partners program to achieve the 6.5 MW of installation by 2017, per CA SB1 b. Continue to promote the Palo Alto CLEAN (feed-in-tariff) program and revamp the marketing of Palo Alto CLEAN to facilitate the coordination of potential sites with developers and property owners/managers to achieve some level of participation i. Annually re-assess the avoided cost of local renewable energy and recommend adjustments to the CLEAN offer price and contract terms, as appropriate ii. Investigate developers’ concerns with Palo Alto CLEAN program rules iii. Continue to educate commercial property owners about the CLEAN program c. Evaluate solar project financing options i. Coordinate with the California FIRST Property Assessed Clean Energy (PACE) program which allows solar system owners to borrow funds for the PV installation and pay it back on their property tax bills over a term equal to the expected system life (20 years). ii. Partner with local lenders to offer solar financing1 1 See an example of such a program from New Jersey’s Public Service Enterprise Group her: http://www.pseg.com/home/save/solar/index.jsp Attachment A A-3 5. Facilitate and/or develop new programs to encourage new participants to develop local solar installations. a. Develop a solar donation program for community members to donate to public sector and non-profit organizations which may benefit from solar, but can’t afford the investment on their own. i. Work with PAUSD and other non-profits to identify sites. Potential installation sites include public sector and non-profit locations which are ineligible to receive federal tax subsidies. ii. Evaluate alternative mechanisms to provide donations to sustain the program, including: (1) Reformulating the suspended PaloAltoGreen electric program as a mechanism to provide ongoing donations; (2) Developing a bill donation mechanism to raise funds; or (3) Developing on-line or crowd-funded sources to raise ongoing funds. b. Develop a community solar share program for the benefit of community members that do not have good solar access but have the desire to invest in local solar. i. Evaluate program design options that allow CPAU customers to invest in a share of a new larger-scale solar PV installations located in Palo Alto ii. Evaluate options for providing value back to customer investors, including: (1) Evaluate CPAU’s ability to provide monthly payments (in $) on the customer’s Utilities bill (2) Evaluate CPAU’s ability to offer “virtual net metering” so that energy produced (in kWh) from a solar system could be reflected on customers’ Utilities bills. [Note that the billing system challenges may be substantial for this option.] (3) Evaluate providing payments to customers via a third-party administrator separate from the Utilities bill. iii. Evaluate outsourcing the administration of the community solar program to provide the following: (1) Develop the community solar program (2) Perform program marketing (3) Identify installation sites (4) Manage the solar installation contract (5) Own, operate and maintain the PV installation (or contract with a third- party) c. Investigate group-discount solar PV program options to allow/facilitate Palo Alto residents to pool their buying power to secure significant discounts, making installing solar on their home simple and more affordable. i. Leverage existing group-discount programs offered to regional residents and company employees. 6. Maximize solar installations on City-owned facilities a. Assist Public Works in evaluating leasing City-owned facilities with low electric consumption (elevated garages and surface parking lots) to a solar developer who Attachment A A-4 could install solar PV systems and would be compensated under the Palo Alto CLEAN program. b. Assist Public Works in investigating installing net-metered solar on City-owned sites to reduce the City’s annual electric costs (and benefit the General fund). 7. Educate the community on the benefits of solar through information and demonstration projects a. Develop solar demonstration projects on City and public facilities b. Promote the benefits of PV systems together with fuel switching (replacing end-of- life gas appliances with electric appliances or replacing a gasoline vehicle with an electric vehicle or a plug-in hybrid vehicle) strategies to reduce greenhouse gas emissions. c. Investigate developing a “one-stop-shop” model (e.g., Wave-one). d. Develop "how to go solar" promotional materials which allows customers to evaluate several solar options. e. Develop direct marketing for small commercial/business customers. f. Develop a database of solar projects installed throughout the community as “case studies” and promote them through CPAU’s web site. g. Promote new innovative solar technologies using the CPAU Emerging technology Program i. Thermoelectric paint ii. PV & batteries iii. Building-integrated PV (BIPV) iv. White roofs v. Microgrids vi. Solar shingles vii. Solar thermal Attachment B: Summary of Local Solar Plan Implementation Efforts 1 Strategy-By-Strategy Update of Local Solar Plan Implementation Efforts Strategy Achievements to Date Ongoing/Future Plans Strategy 1: Remove internal system and institutional barriers which increase “soft” costs and may impede adoption of solar in Palo Alto Pre-dating the Local Solar Plan, Development Services implemented a streamlined permitting process for residential solar PV systems. Palo Alto received the 2014 Best Solar Collaboration Award for the improved permitting process. Staff is publicizing the streamlined solar permitting process on an ongoing basis. Staff plans to continue streamlining of permitting, inspection, and interconnection processes as necessary to comply with the recently enacted AB2188 which mandates a standardized procedure for solar permitting across the state. (Fall 2015) Strategy 2: Develop proper policies, incentives, price signals and rates to encourage solar installation As described in detail in this report, staff evaluated increasing the funding for PV Partners beyond compliance obligations and recommend not expanding the program after all legislative mandates have been met. Staff is currently incorporating local solar considerations in the electric rate analysis discussions. (Ongoing) Staff will bring forward a clarification for the methodology used to calculate the City’s NEM cap for Council adoption (Fall 2015) Staff members from multiple departments are coordinating to integrate and improve the permitting, inspection, and interconnection processes to ensure the City has visibility of all systems being installed within Palo Alto and to accurately and electronically track progress towards the NEM cap. (Fall 2015) Staff seeks regular technical and non-technical assistance from the Solar Electric Power Association, E Source, and the U.S. Department of Energy funded American Solar Transformation Initiative. (Ongoing) The City coordinates with the Northern California Power Agency (NCPA) and the California Municipal Utilities Association (CMUA) on an ongoing basis on effective rules, regulations, and legislation to promote cost-effective and fair solar development. (Ongoing) Solar considerations are being incorporated in the ongoing discussions for adopting new billing and customer information Attachment B: Summary of Local Solar Plan Implementation Efforts 2 Strategy-By-Strategy Update of Local Solar Plan Implementation Efforts Strategy Achievements to Date Ongoing/Future Plans systems. Staff plan to research and evaluate a NEM successor program, which will be coordinated with the electric rate discussion and analysis. Guidelines for the NEM successor program design will be brought to the UAC, Finance Committee, Council in Fall 2015, and a program will be brought for review by Spring 2016. A clear path to securing a host site is critical to successfully launch a community solar program. Staff is in the process of selecting a municipal site to host the solar system, which could facilitate the process of launching the program and enhance associated education and outreach efforts. Strategy 3: Assess technical and market potential of solar in Palo Alto Completed a GIS-based solar technical potential assessment for rooftops and published a map of the potential online for interested community members1 (Summer 2014) Staff is broadening the solar technical potential assessment to incorporate surface parking. (Fall 2015) Staff is completing the economic and market potential assessment and documentation. Preliminary results of the potential assessment are incorporated in the memo. (Fall 2015) Staff plan to coordinate with the Planning Department on the impact of current zoning rules for carport installations Staff plan to conduct a study of distribution system impacts from high penetrations of solar and EV (FY16) Strategy 4: Implement policies and programs to increase solar system As described in detail in the full report, Palo Alto’s PV Partners program providing rebates for customer-cited solar systems has spurred over 6.5 MW of local solar PV adoption to Staff is currently evaluating joining the HERO program, which would give residents another PACE financing option 1 https://cityofpaloalto.org/solarmap Attachment B: Summary of Local Solar Plan Implementation Efforts 3 Strategy-By-Strategy Update of Local Solar Plan Implementation Efforts Strategy Achievements to Date Ongoing/Future Plans installations on CPAU customer sites with good solar access date. All residential rebate funds have been reserved and commercial rebate funds are nearly depleted. Staff recommends that the program not be expanded once all legislative obligations have been fulfilled. The Palo Alto Clean Local Energy Accessible Now (CLEAN) program is a feed-in tariff program for renewable generation facilities sited within Palo Alto. To date, the program has not generated a project. However, staff continues to market the program. Furthermore, after a recent solar developer survey, the feedback provided led staff to propose the recommendation to offer a 25- year power purchase agreement (PPA) option, instead of only the 20-year PPA. Council subsequently approved this change. The City is currently a member of California FIRST, which give residents a Property Assessed Clean Energy (PACE) financing option to pay for on-site renewable energy installations through their property tax bill Strategy 5: Facilitate and/or develop new programs to encourage new participants to Palo Alto joined a regional solar group-buy program called Peninsula SunShares. The solar system prices resulting from the Aggregating the purchasing power of the community resulted in solar system prices Staff plans to begin the research and development of a solar donation program (Winter 2015/2016) Staff provides ongoing support to PAUSD and the Sustainable School Committee in their efforts to evaluate the costs and Attachment B: Summary of Local Solar Plan Implementation Efforts 4 Strategy-By-Strategy Update of Local Solar Plan Implementation Efforts Strategy Achievements to Date Ongoing/Future Plans develop local solar installations approximately 15-25% below current market prices across all nine Bay Area counties. Registration for the program ran from April through August 2015. Palo Alto households made up approximately 40% of the total program participation. benefits of solar PV installations on school facilities (ongoing) Staff provided an informational report to the UAC in July 2015 regarding the status of the community solar program development efforts. At present, staff is selecting a municipal site to host the community solar facility. Staff will return to the UAC with a proposed program design in Spring 2016. Strategy 6: Maximize solar installations on City-owned facilities Public Works released an RFP in May 2014 to lease the top levels of five downtown City multi-level parking structures for solar PV facilities applying through the Palo Alto CLEAN feed-in tariff program. Currently, staff and the selected developer are negotiating a site lease for the installations. A committee was formed to inventory all municipal facilities and their suitability for solar PV and to develop a work plan for installing solar on viable sites. (Fall 2015) Strategy 7: Educate the community on the benefits of solar through information and demonstration projects Pre-dating the Local Solar Plan, in 2008 Public Works and Utilities installed solar demonstration projects at the Municipal Service Center, Baylands Interpretive Center, and Cubberley Community Center. Staff hosts workshops on a variety of topics, including customer-sited solar energy. The last solar energy workshop was April 25, 2015, and was coordinated with the program administrator for the solar group-buy program Peninsula SunShares. Staff routinely evaluates innovative solar technologies through the Program for Emerging Technologies (PET). Through PET, a 6- month pilot project was launched in partnership with Petra Systems to evaluate and demonstrate distributed solar PV on street light poles. The pilot project concluded in May, and staff is in the process of completing an evaluation report. Staff is evaluating issuing an RFP for customer-facing tools to aid in solar decision-making (Fall 2015) FINANCE COMMITTEE DRAFT ACTION Page 1 of 1 Special Meeting Tuesday, December 1, 2015 Chairperson Schmid called the meeting to order at 6:13 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth, Kniss, Scharff, Schmid (Chair) Absent: Oral Communications None. Agenda Items 2. Utilities Advisory Commission Recommendation to Continue the PV Partners Program Until the State Legislative Requirements Set Forth in the California Million Solar Roof Bill Have Been Fulfilled. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to recommend the City Council continue the Photovoltaic (PV) Partners Program for rebates for customer-sited solar photovoltaic systems until the State Legislative requirements set forth in California Million Solar Roofs Bill (SB1) have been fulfilled. MOTION PASSED: 4-0 ADJOURNMENT: Meeting adjourned at 8:12 P.M. City of Palo Alto (ID # 6437) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Net Energy Metering Successor Program Design Title: Finance Committee Recommendation that the City Council Approve Design Guidelines for the Net Energy Metering Successor Program From: City Manager Lead Department: Utilities Recommendation Staff, the Utilities Advisory Commission (UAC), and the Finance Committee recommend that the City Council approve the Design Guidelines for the Net Energy Metering Successor Program (Attachment 1). Executive Summary Net energy metering (NEM) is a billing mechanism designed to promote the installation of local renewable generation by allowing customers to be compensated at the full retail rate for electricity generated by their on-site systems. Under the City’s current rates, NEM customers can reduce, or potentially completely avoid, charges on their electric bill while still remaining interconnected with the electric grid and utilizing grid services. State law requires all electric utilities to offer NEM to eligible customers up to a maximum cap (the “NEM cap”). How to compensate customers who install on-site renewable generation after the NEM cap is reached needs to be determined. As Utilities across the state reach their respective NEM caps, NEM successor programs are a topic of much debate; some wish to continue to provide the same incentives to solar participants, while others want to ensure that customers with no on-site generation are not paying more than their share of the costs to maintain the grid. The City of Palo Alto Utilities (CPAU) expects to reach its NEM cap by mid- 2016. The proposed NEM successor program design guidelines will guide staff efforts to develop a NEM successor program. CPAU’s NEM successor program will be developed in coordination with the electric utility’s cost of service analysis (COSA) that is underway. Background State law requires all electric utilities to offer NEM to eligible customers with renewable distributed generation (sometimes referred to as customer-sited or behind-the-meter generation), up to a cap. In October 2015 Council formally adopted a NEM cap for Palo Alto of City of Palo Alto Page 2 9.5 MW (Staff Report 6139). As of August 13, 2015, the City is approximately 70% toward meeting its NEM cap. To date, all local solar installations utilize NEM and all net energy metered systems are solar photovoltaic (PV) systems1. Staff estimates Palo Alto could reach its NEM cap by mid-2016. Discussion The recommended NEM Successor Program Design Guidelines are supplementary guidelines to the Phase One Electric COSA Design Guidelines, which Council adopted in September 2015 (Staff Report 6061). The NEM Successor Program Design Guidelines are relevant specifically for eligible customer-sited renewable generation that will be installed after the City’s NEM cap has been reached. The guidelines are summarized below and discussed in more detail in the report (Staff Report 6305) provided for the Finance Committee’s December 1, 2015 meeting (Attachment 2). Key Challenges and Benefits of NEM There are three primary challenges with NEM. First, given the City’s existing electric rate structures, NEM results in cost-shifting between customer classes. Customers who adopt distributed generation and utilize NEM can reduce or completely avoid costs on their electric utility bills even though they remain interconnected to the grid and continue to use grid services. Second, distributed generation presents challenges for utilities to sustainably recover the fixed costs associated with the electric distribution system. As distributed generation continues to be deployed, the cost-shift from NEM to non-participating customers increases. Third, an increasing block electricity rate structure, (or tiered rate structure such as the one in use in Palo Alto2), can create situations in which highly efficient, low-energy use NEM customers receive a lower NEM compensation rate than high-energy consuming NEM customers even though the value of the renewable energy generation may be equivalent. As a result, NEM combined with tiered rate structures discourages solar adoption by low-energy consumers. Although NEM has limitations, it also has key benefits. NEM is often described as “rolling back the electricity meter” with generation from an on-site system. This description is especially intuitive, which makes it a relatively easy policy to communicate to utility customers and other stakeholders. Operationally, NEM can and has been implemented with existing metering equipment. Non-standard meters or advanced metering infrastructure (“smart meters”) are not required. And, more broadly, NEM is often viewed as one of the key state policies responsible for the extent of solar deployment that has been realized in California to date3. These policies, 1 In principal, customers may install a variety of distributed energy technologies on-site that would be eligible for NEM. In practice, staff expects the vast majority—if not all—of on-site generation and NEM participation in Palo Alto to be solar PV. 2 http://www.cityofpaloalto.org/civicax/filebank/documents/8089 3 Another key California policy is the Million Solar Roofs Bill (aka Senate Bill 1 or SB1) which required that electric utilities provide rebates to customers installing PV systems until the mandated rebate funds are exhausted. City of Palo Alto Page 3 and California’s Renewable Portfolio Standard (RPS) mandate, have been very effective in developing the solar PV market and reducing costs of solar over time. Short-Term and Long-Term Considerations The proposed NEM Successor Program Design Guidelines are aligned with the Phase 1 Electric COSA Design Guidelines in addressing short-term rate design issues. Staff anticipates the NEM cap will be met within the coming year. New rules and rates should be ready for customers who install solar systems after the NEM cap is reached. Long-term rate design issues—including, for instance, updated climate protection goals, deployment of advanced metering infrastructure and the rate designs which they enable, and impacts of the trend toward electrification—will be addressed in the second phase of the COSA work plan. The NEM successor program that is in place at that time may be revisited, along with all other rates. NEM Successor Program Design Guidelines The proposed NEM Successor Program Design Guidelines are intended to guide staff’s work on the development of a successor program. The guidelines are summarized below and discussed in more detail in the Finance Committee report (Attachment 2): Guideline 1. Rates must be based on the cost to serve customers. This is the overriding principle for the NEM Successor Program development; all other design considerations are subsidiary to this basic premise. Guideline 2. Consider and evaluate program options that compensate customers fairly and equitably for local renewable energy production. Guideline 3. Consider and evaluate compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”. Guideline 4. Consider and evaluate the impact on the concurrent adoption of on-site generation and other demand-side technologies. Guideline 5. Consider and evaluate the likely impact on the rate of solar adoption and implications for meeting the Local Solar Plan goal. Guideline 6. Consider the ease of marketing and communicating the program to customers. Guideline 7. Assess technology constraints of program implementation. Guideline 8. Consider and evaluate the impact to non-solar customers. Committee Review and Recommendation At its November 4, 2015, meeting, the UAC voted unanimously to recommend Council approve the NEM Successor Program Design Guidelines as proposed. The draft excerpted minutes from the UAC meeting are provided as Attachment C to the Finance Committee staff report (Attachment 2). The Finance Committee reviewed the proposed guidelines at its December 1, 2015, meeting. There were questions about the need for a separate set of design guidelines specifically for a City of Palo Alto Page 4 NEM successor program considering Council already adopted the Phase 1 Electric COSA design guidelines, how the design guidelines take into account Proposition 26, the impact on the existing NEM policy on non-solar customers, and whether and for what duration current NEM customers will continue to receive NEM benefits. The Finance Committee voted unanimously to recommend that Council approve the NEM Successor Program Design Guidelines with the following modifications: 1. Adding a similar guideline to the Phase One COSA Design Guideline #1 in order to ensure clarity that all rates including the NEM Successor Program must be based on the cost to serve. 2. Adding the guideline “Consider and evaluate the impact on non-solar customers”. 3. Changing the wording of Guidelines 2-5 to “Consider and evaluate” instead of “Consider”, “Evaluate” or “Assess”. The recommended NEM Successor Program Design Guidelines (Attachment 1) incorporate the changes recommended by the Finance Committee. Action minutes from the December 1, 2015 Finance Committee meeting are provided as Attachment 3. Timeline Following Council approval of these design guidelines, staff will begin work on the NEM Successor Program. The program development is expected to be completed and a proposal brought forward for consideration in by mid-2016. Resource Impact Adoption of the proposed NEM Successor Program Design Guidelines has no direct impact on budget and staff resources as this work is part of the FY 2016 work plan and will be done by existing staff. Upon adoption of the design guidelines, staff will proceed with the development of a NEM successor program and any associated resource impact of the proposed NEM successor program and potential alternatives will be assessed and included in the staff report when the proposal is brought forward for review and approval. Policy Impact The process of adopting the NEM Successor Program Design Guidelines provides the Council an opportunity to provide policy guidance to staff for the development of a NEM successor program proposal in coordination with the electric COSA. Fulfilling the City’s NEM legislative mandates and developing an effective NEM successor program will support the Carbon Neutral Plan, the Local Solar Plan, and State and local efforts to promote renewable distributed generation. NEM further supports the City’s broader environmental sustainability goals, including those set out in the 2011 Utilities Strategic Plan and the 2007 Climate Protection Plan. City of Palo Alto Page 5 Environmental Impact Adoption of NEM Successor Program Design Guidelines does not meet the California Environmental Quality Act’s (CEQA) definition of “project” under California Public Resources Code Sec. 21065, thus no environmental review is required. Attachments:  Attachment 1 Proposed NEM Successor Program Design Guidelines (PDF)  Attachment 2 Final Staff Report (ID 6305) Net Energy Metering Successor Program Design Guidelines (PDF) Attachment 1 Recommended by the Finance Committee on December 1, 2015, for Council review and approval. Design Guidelines for the Net Energy Metering Successor Program 1. Rates must be based on the cost to serve customers. This is the overriding principle for the NEM Successor Program development; all other design considerations are subsidiary to this basic premise. 2. Consider and evaluate program options that compensate customers fairly and equitably for local renewable energy production. 3. Consider and evaluate compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”. 4. Consider and evaluate the impact on the concurrent adoption of on-site generation and other demand-side technologies. 5. Consider and evaluate the likely impact on the rate of solar adoption and implications for meeting the Local Solar Plan goal. 6. Consider the ease of marketing and communicating the program to customers. 7. Assess technology constraints of program implementation. 8. Consider and evaluate the impact to non-solar customers. City of Palo Alto (ID # 6305) Finance Committee Staff Report Report Type: Action Items Meeting Date: 12/1/2015 City of Palo Alto Page 1 Summary Title: Net Energy Metering Successor Program Design Guidelines Title: Utilities Advisory Commission Recommendation That the City Council Approve Design Guidelines for the Net Energy Metering Successor Program From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that the Finance Committee recommend that the City Council approve the Design Guidelines for the Net Energy Metering Successor Program (Attachment A). Executive Summary Net energy metering (NEM) is a billing mechanism designed to promote the installation of renewable distributed generation by allowing customers to be compensated at the full retail rate for electricity generated by their on-site systems. Under the City’s current rates, NEM customers can reduce, or potentially completely avoid, charges on their electric bill while still remaining interconnected with the electric grid and utilizing grid services. State law requires all electric utilities to offer NEM to customers with eligible renewable distributed generation up to a maximum cap (NEM cap). How to compensate customers who install on-site renewable generation after the NEM cap is reached needs to be determined. As Utilities across the state reach their respective NEM caps, NEM successor programs are a topic of much debate; some wish to continue to provide the same incentives to solar participants, while others want to ensure that customers with no on-site generation are not paying more than their share of the costs to maintain the grid. The City of Palo Alto Utilities (CPAU) expects to reach its NEM cap by mid-2016. The proposed NEM successor program design guidelines will guide staff efforts to develop a NEM successor program. CPAU’s NEM successor program will be developed in coordination with the electric utility’s cost of service analysis (COSA) that is underway. Background State law requires all electric utilities to offer NEM to eligible customers with renewable distributed generation (sometimes referred to as customer-sited or behind-the-meter ATTACHMENT 2 City of Palo Alto Page 2 generation), up to a cap. In October 2015 Council formally adopted a NEM cap for Palo Alto of 9.5 MW (Staff Report 6139). As of August 13, 2015, the City is approximately 70% toward meeting its NEM cap as shown in Figure 1 below. To date, all local solar installations utilize NEM and all net energy metered systems are solar photovoltaic (PV) systems1. Figure 1: Summary of NEM Participation (1999 through August 13, 2015) All NEM customers are subject to terms and conditions outlined in the California Public Utilities Code Section 2827, including the ability to receive credit for eligible on-site customer generation at the retail rate, to have the credits roll over month-to-month over a 12-month period, and the option to cash-out any net surplus generation that exists at the end of the 12- month period. NEM customers remain subject to Council-approved changes to their otherwise applicable electric rate schedules, including rate design changes and potential minimum or fixed charges. Assembly Bill 327 (AB 327) directed the California Public Utilities Commission (CPUC) to develop a standard NEM successor tariff no later than December 31, 20152 for the state’s investor- owned utilities (IOUs). For the IOUs, the NEM successor tariff is to take effect either after an 1 In principal, customers may install a variety of distributed energy technologies on-site that would be eligible for NEM. In practice, staff expects the vast majority—if not all—of on-site generation and NEM participation in Palo Alto to be solar PV. 2 http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB327 City of Palo Alto Page 3 IOU has reached its NEM cap or July 1, 2017, whichever occurs first. Publicly-owned utilities (POUs), whose rates are not regulated by the CPUC, are working with their respective governing bodies and stakeholders to formulate their own NEM successor programs to take affect after their respective NEM caps have been reached. Local Solar Plan On April 22, 2014, the City Council adopted the Local Solar Plan (Staff Report 4608, Resolution 9402), which set the overarching goal of meeting 4% of the City’s total energy needs from local solar by 2023, corresponding to achieving 23 MW of solar installed in the City. Included within the Local Solar Plan is a strategy to develop proper policies, incentives, price signals and rates to encourage solar installation, including the exploration of cost-based rate structures that encourage the development of new solar systems in Palo Alto. 2015 Electric Cost of Service Analysis (COSA) CPAU embarked on an electric cost of service analysis (COSA) that will be completed in Fiscal Year 2016 (FY 2016) in advance of a rate adjustment that staff projects will be necessary on July 1, 2016. Electric rates were last adjusted when a 10% rate increase went into effect on July 1, 2009. The primary goal of the COSA will be to review the allocation of costs to customer classes and the electric rate design to ensure customers are charged according to the cost to serve them. However, the COSA will also include a review of the rate design issues created by increasing numbers of local solar installations, higher EV (EV) penetration, and the potential for building electrification. The COSA is divided into short-term (Phase One) and long-term (Phase Two) work plans for addressing various rate design issues. Short-term rate design issues include, among other things, the need to develop a NEM successor program for solar customers. In September 2015, Council adopted design guidelines for the Phase One work plan (Staff Report 5956). The adopted Phase One COSA Design Guidelines are provided as Attachment B. The COSA Design Guidelines 1 and 7 are relevant to the development of NEM successor design guidelines and the ultimate NEM successor program. These two guidelines are listed below:  Guideline 1: Rates must be based on the cost to serve customers. This is the overriding principle for the cost of service analysis (COSA); all other rate design considerations are subsidiary to this basic premise.  Guideline 7: The COSA should evaluate the impact of rate designs on the economics of local solar for current and future customers and should be coordinated with an analysis of long- term solar policies to be put into effect after the existing net energy metering tariff reaches capacity. Discussion This memo describes a proposed set of secondary design guidelines for the development of a NEM successor program—the NEM Successor Program Design Guidelines. These design guidelines are intended to be supplementary guidelines to the Phase One Electric COSA Design City of Palo Alto Page 4 Guidelines and are relevant specifically for eligible customer-sited renewable generation that will be installed after the City’s NEM cap has been reached. Key Challenges and Benefits of NEM There are three primary challenges with NEM. First, given the City’s existing electric rate structures, NEM results in cost-shifting between customer classes. Customers who adopt distributed generation and utilize NEM can reduce or completely avoid costs on their electric utility bills even though they remain interconnected to the grid and continue to use grid services. Second, distributed generation presents challenges for utilities to sustainably recover the fixed costs associated with the electric distribution system. As distributed generation continues to be deployed, the cost-shift from NEM to non-participating customers increases. This results in increasingly higher rates for non-participating customers, which in turn makes adopting distributed generation even more attractive for non-participating customers. This positive feedback loop is often referred to as the “utility death spiral”. Again, the overriding principle for rate design is captured in the first Electric COSA Design Guideline (Rates must be based on the cost to serve customers) and any NEM successor rate must be consistent with this principle. Third, an increasing block electricity rate structure, (or tiered rate structure such as the one in use in Palo Alto3), can create situations in which highly efficient, low-energy use NEM customers receive a lower NEM compensation rate than high-energy consuming NEM customers. Low-energy consuming households who conserve and have implemented many home energy efficiency measures may only reach the first or second electricity usage tiers over the course of a month4. For example, if a household that consumes 600 kilowatt hours (kWh) per month installs a solar PV system that is sized to meet all of the household’s electricity usage over the course of the year, the household would, in effect, be compensated at a rate of 11.2 ₵/kWh for the energy generated from their on-site system under the current rate structure5. By contrast, if a higher energy-using household using 1,200 kWh/month installs a solar system of the exact same size as the lower-energy consuming household, the high-energy consuming household is effectively compensated at 17.4 ₵/kWh for the energy generated from their on- site system. Therefore, high-energy use consumers are compensated at a significantly higher rate than low-energy use consumers for distributed renewable electricity, although the value of the output may be equivalent. As a result, NEM combined with tiered rate structures discourages solar adoption by low-energy consumers. 3 http://www.cityofpaloalto.org/civicax/filebank/documents/8089 4 The average monthly electricity consumption of single-family homes in Palo Alto in 2014 was 621 kWh. Tier 1 is between 0-300 kWh (9.5 c/kWh), Tier 2 is between 301-600 (13 c/kWh), and Tier 3 is for all electricity over 600 kWh (17.4 c/kWh). 5 The average price of electricity for a residential customer using 600 kWh is the sum of 300 kWh times Tier 1 price (9.5 c/kWh) and 300 kWh times Tier 2 price (13 c/kWh), then divided by 600 kWh, or 11.2 c/kWh. City of Palo Alto Page 5 It is important to emphasize that the challenges discussed above are amplified by the combination of NEM and the existing tiered electric rate structure. For example, if through the upcoming electric COSA, the residential electric utility rate structure were modified to include a minimum charge, the degree of cost-shifting from NEM customers to non-participants may be reduced or averted. As electric rate structures change in the future, the relationship between the rate structure and NEM will be re-evaluated6. Hence, development of a NEM successor program is being carried out in coordination with the electric COSA, and the evaluation and quantification of potential cost-shifts will be performed as a part of the NEM successor program development process. Although NEM has limitations, it also has key benefits. NEM is often described as “rolling back the electricity meter” with generation from an on-site system. This description is especially intuitive, which makes it a relatively easy policy to communicate to utility customers and other stakeholders. Operationally, NEM can and has been implemented with existing metering equipment. Non-standard meters or advanced metering infrastructure (“smart meters”) are not required. And, more broadly, NEM is often viewed as one of the key state policies responsible for the extent of solar deployment that has been realized in California to date7. These policies, and California’s Renewable Portfolio Standard (RPS) mandate, have been very effective in developing the solar PV market and reducing costs of solar over time as shown in Figure 2. Figure 2: Installed prices for residential and small non-residential systems in the U.S.8 6 The key challenges could instead be interpreted as limitations of the existing rate structures rather than limitations of NEM. These rate structure challenges are in turn dependent upon the service territory’s metering infrastructure, customer information system, and billing system. 7 Another key California policy is the Million Solar Roofs Bill (aka Senate Bill 1 or SB1) which required that electric utilities provide rebates to customers installing PV systems until the mandated rebate funds are exhausted. 8 Source of Figure 2 is Tracking the Sun, an annual PV cost tracking report produced by the Department of Energy’s Lawrence Berkeley National Laboratory. (See http://newscenter.lbl.gov/2015/08/12/solar-prices-fell-2015/ accessed October 16, 2015) City of Palo Alto Page 6 Short-Term and Long-Term Considerations The proposed NEM Successor Program Design Guidelines are aligned with the COSA Design Guidelines in addressing short-term rate design issues. Staff anticipates the NEM cap will be met within the coming one to two years. New rules and rates should be ready for customers who install solar systems after the NEM cap is reached. Long-term rate design issues— including, for instance, updated climate protection goals, deployment of advanced metering infrastructure and the rate designs which they enable, and impacts of the trend toward electrification—will be addressed in the second phase of the COSA work plan. The NEM successor program that is in place at that time may be revisited, along with all other rates. Proposed NEM Successor Program Design Guidelines Staff proposes the following NEM Successor Program Design Guidelines: Guideline 1. Evaluate program options that compensate customers fairly and equitably for local renewable energy production. Guideline 2. Consider compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”. Guideline 3. Evaluate the impact on the concurrent adoption of on-site generation and other demand-side technologies. Guideline 4. Assess the likely impact on the rate of solar adoption and implications for meeting the Local Solar Plan goal. Guideline 5. Consider the ease of marketing and communicating the program to customers. Guideline 6. Assess technology constraints of program implementation. Guideline 1. Evaluate program options that compensate customers fairly and equitably for local renewable energy production. With tiered electric rates and NEM, the effective compensation that customers receive for their on-site generation is based on their monthly amount of on-site energy consumption as described above. This combination hinders solar adoption by households that have average or low electricity consumption achieved through conservation and energy efficiency measures. Staff will evaluate NEM successor program options that compensate customers fairly and equitably for local renewable energy production. Guideline 2. Consider compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”. A “value of solar tariff” is a rate design in which customers are compensated at a specified rate for all generation produced from their on-site systems. On-site consumption is metered separately and charged in full at the applicable retail rate for that customer class. The compensation rate for the on-site generation would be based on the value of local solar energy generation. This value is already calculated using avoided cost models that are utilized in all resource acquisition and financial planning. City of Palo Alto Page 7 An advantage of the value of solar tariff design is that it utilizes a standardized and transparent framework for valuing distributed generation that would be updated regularly. Also, similar to the rate established for solar through the Palo Alto CLEAN program, it could also provide the flexibility to incorporate an “adder” reflecting the assessed value of distributed generation, which may be deemed necessary in the near term to continue to promote deployment to achieve the community’s local solar goals. Guideline 3. Evaluate the impact on the concurrent adoption of on-site generation and other demand-side technologies. Residents or businesses may decide to adopt solar PV for a variety of reasons, including a desire to support environmental sustainability, a penchant for early adoption, or financial benefit. Many of the same motivations may also drive the adoption of other advanced energy technologies, such as EVs, energy storage, smart thermostats, building energy management systems, and grid-interactive loads. Under NEM, co-adoption of solar PV and EVs has been notably common9: charging an EV at home drives the household’s consumption into higher rate tiers, which in turn renders generation from a net-metered solar system increasingly valuable (under NEM and current electric rates) and therefore more cost-effective. Staff will evaluate the impact of concurrent adoption of on-site generation and other demand-side technologies under various NEM successor program options in order to assess potential impacts. Guideline 4. Assess the likely impact on the rate of solar adoption and implications for meeting the Local Solar Plan goal. As described in an update on the Local Solar Plan provided to the UAC in October10, after accounting for 8 MW from the PV Partners program, 3 MW through the Palo Alto CLEAN program and 2 MW for new community solar and solar donation programs that are under development, almost 10 MW of additional solar capacity is required to meet the Local Solar Plan’s goal to have 23 MW of solar PV installed by 2023. Staff will evaluate NEM successor program options regarding their likely impact on the ability to meet the Local Solar Plan goal. Guideline 5. Consider the ease of marketing and communicating the program to customers. NEM has been in effect in California for almost two decades11, making it the most established state incentive for solar and other distributed generation technologies. Because all education, marketing and outreach efforts conducted over the past two decades by solar installers, utilities, state agencies, and other stakeholders was conducted while NEM was available, staff anticipates that significant efforts may be required to market and communicate a new set of terms and conditions that comprise the NEM successor program. Of course, that will depend on how different the NEM successor program may be from the original NEM. Furthermore, 9 In a recent analysis, installing EV charging equipment in Palo Alto was the strongest indicator for household participation in the PV Partners program for a solar PV rebate. The other indicators incorporated in the analysis were participation in nine distinct other demand-side energy efficiency programs. 10 https://www.cityofpaloalto.org/civicax/filebank/documents/49290 11 The original NEM law in California was adopted in 1995 and took effect the following year. City of Palo Alto Page 8 more generally, customers need an increasingly detailed understanding of all aspects of their energy usage and costs, which makes communications and marketing considerations a primary concern during the program design stage. Staff intends to assess the ease of marketing and communicating to customers during research and development of the NEM successor program. Staff may also recommend additional resources to enhance associated education and outreach efforts, if needed, to ensure customer and stakeholder understanding and awareness. Guideline 6. Assess technology constraints of program implementation. The sixth and final design guideline is to assess all technology constraints for implementing the proposed NEM successor program and alternatives, along with associated staff and budget resource impacts. Potential technology constraints include compatibility with CPAU’s existing customer information and billing systems and metering infrastructure. Advanced metering infrastructure (AMI) is identified as a long-term rate design issue for the electric COSA, and evaluation of time-of-use and other rate structures that AMI enables will be evaluated during Phase Two of the Electric COSA work plan. The NEM successor program will be revisited at that time in coordination with the COSA. Commission Review and Recommendation At its November 4, 2015, meeting, the UAC voted to recommend Council approve the proposed NEM Successor Program Design Guidelines after asking a variety of clarifying questions. Multiple commissioners voiced their support for discontinuing NEM in its present form in light of concerns such as cost-shifting, the lack of a need to subsidize solar PV given the decline in solar PV modules prices in recent years, and impending over-generation across the state during peak solar hours leading to the so-called duck curve. A portion of the discussion focused on the merit of the City subsidizing solar installed within Palo Alto as solar PV installed locally does not reduce greenhouse gas emissions given the City’s carbon-neutral electricity supply. Multiple questions clarified the relationship between the NEM successor program development and the electric COSA work, and the Prop. 26 implications of various rate structures. Staff clarified that the COSA design guidelines are the primary design guidelines for all rates, including those developed for the NEM successor program. The NEM Successor Program Design Guidelines are a set of subsidiary design guidelines intended to give the community the opportunity to provide feedback to guide staffs efforts early on in the design phase of the NEM successor program. The UAC ultimately voted unanimously to recommend that Council approve the proposed NEM Successor Program Design Guidelines (Commissioners Ballantine, Cook, Danaher, Eglash and Schwartz and Chair Foster voting yes, and Commissioner Hall absent). The draft excerpted minutes from the UAC meeting are provided as Attachment C. Next Steps The tentative timeline for the review and approval of the NEM-related policies anticipates that a NEM Successor program can be considered by Council by the end of FY 2016 as shown below. City of Palo Alto Page 9 Tentative Timeline for Review and Approval of NEM Successor Program Policies Description UAC Finance Committee Council NEM cap clarification -- -- Oct. 2015 Design Guidelines for NEM Successor Program Nov. 2015 Dec. 2015 Jan. 2016 Proposed NEM Successor Program March 2016 April 2016 May 2016 Resource Impact Adoption of the proposed NEM Successor Program Design Guidelines has no direct impact on budget and staff resources as this work is part of the FY 2016 work plan and will be done by existing staff. Upon adoption of the design guidelines, staff will proceed with the development of a NEM successor program and any associated resource impact of the proposed NEM successor program and potential alternatives will be assessed and included in the staff report when the proposal is brought forward for review and approval. Policy Impact The process of adopting the NEM Successor Program Design Guidelines provides the UAC and Council an opportunity to provide policy guidance to staff for the development of a NEM successor program proposal in coordination with the electric COSA. Fulfilling the City’s NEM legislative mandates and developing an effective NEM successor program will support the Carbon Neutral Plan, the Local Solar Plan, and State and local efforts to promote renewable distributed generation. NEM further supports the City’s broader environmental sustainability goals, including those set out in the 2011 Utilities Strategic Plan and the 2007 Climate Protection Plan. Environmental Impact Adoption of NEM Successor Program Design Guidelines does not meet the California Environmental Quality Act’s (CEQA) definition of “project” under California Public Resources Code Sec. 21065, thus no environmental review is required. Attachments:  Attachment A: Proposed Design Guidelines for the Net Energy Metering Successor Program (PDF)  Attachment B: Adopted Design Guidelines for the 2015 Electric Cost of Service Analysis (PDF)  Attachment C: Excerpted Draft UAC Minutes of Nov 4, 2015 Meeting (PDF) Attachment A Presented to the Utilities Advisory Commission for review on November 4, 2015, and recommended for approval. Design Guidelines for the Net Energy Metering Successor Program 1. Evaluate program options that compensate customers fairly and equitably for local renewable energy production. 2. Consider compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”. 3. Evaluate the impact on the concurrent adoption of on-site generation and other demand-side technologies. 4. Assess the likely impact on the rate of solar adoption and implications for meeting the Local Solar Plan goal. 5. Consider the ease of marketing and communicating the program to customers. 6. Assess technology constraints of program implementation.  Attachment B  Approved by Council on September 15, 2015 (Staff Report 6061)  Design Guidelines for the 2015 (Phase One) Electric Utility Cost of Service Analysis    1. Rates must be based on the cost to serve customers.  This is the overriding principle for the  cost of service analysis (COSA); all other rate design considerations are subsidiary to this  basic premise.    2. For this cost of service study, and to the extent feasible, energy charges should be based on  existing rate structures. This includes:  a. A tiered rate design structure for residents  b. A flat general service rate for small non‐residential users  c. A flat demand and energy rate for large non‐residential users    3. The COSA should involve a review of all existing rate schedules for inclusion in the COSA or  retirement.    4. The COSA should take into account the impact of rate designs on electric vehicles and  electric heating customers, and should investigate:  a. the extent to which these customers have different load profiles from other  residential customers; and  b. the extent to which existing rate designs should be adjusted for these differing load  profiles    5. The COSA should evaluate the need for a minimum charge.    6. A hydroelectric rate adjustment mechanism should be evaluated.    7. The COSA should evaluate the impact of rate designs on the economics of local solar for  current and future customers and should be coordinated with an analysis of long‐term solar  policies to be put into effect after the existing net energy metering tariff reaches capacity.    8. A connection fee study should be performed and policies regarding residential transformer  upgrades should be reviewed, either as part of the COSA or as part of a parallel analysis. The  COSA methodology should be coordinated with any potential connection fee changes or  policy changes.    9. The impact of any proposed changes on low income customers should be evaluated    EXCERPTED DRAFT MINUTES OF THE NOVEMBER 4, 2015 UTILITIES ADVISORY COMMISSION MEETING NEW BUSINESS ITEM 1: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Approve Design Guidelines for the Net Energy Metering Successor Program Resource Planner Aimee Bailey provided a summary of the written report on the Net Energy Metering (NEM) successor program. She stated that Palo Alto's NEM cap established by Council is 9.5 megawatts (MW) and that a program for after that cap is reached is needed. Bailey noted that the report stated that staff expects that the NEM cap to be reached by mid-2017, but this is an error and staff actually expects to reach the NEM cap by mid-2016. Bailey noted that a NEM successor program falls under the overarching City of Palo Alto Utilities (CPAU) Electric Cost of Service Analysis (COSA) and that Council has adopted design guidelines for the Electric COSA. Bailey discussed each of the six proposed NEM Successor Program design guidelines. Public Comment Herb Borock said that there was nothing explicit regarding Proposition 26 which doesn't allow taxes, which he said includes some aspects of solar PV incentives. He added that if solar expands too much, we will need storage to manage it and it should be taken into account. Chair Foster asked if the Electric COSA design guideline #1 directly addresses the Proposition 26 question. Bailey confirmed that this is the case Commissioner Eglash noted that NEM has been very effective in encouraging rooftop solar and that it is beginning to outlive its life as solar costs decline so that solar can survive on its own. NEM is effectively a subsidy that must be borne by all the ratepayers so that those without solar must pay the way for customers with rooftop solar. He said that the staff proposal is exactly the right way to proceed. He said that we all benefit from solar, but NEM is effectively a tax on the poor since it is the richer folks that put solar on their roofs and the poorer people are, thus, subject to the "tax". Vice Chair Cook said that Commissioner Eglash covered the issue regarding the subsidy NEM provides. ATTACHMENT C Vice Chair Cook asked why net metering was put in place. Bailey said that the high cost of solar was a factor in the state adopting net metering. Assistant Director Jane Ratchye made a distinction between NEM and surplus net energy, that is the over-generation over 12-months that is sold back to the utility. Bailey pointed to a back-up slide showing Residential Tiers versus Avoided Cost. Vice Chair Cook said he put solar panels on the roof of his house 9 years ago and tried to size it to cover his electric costs. Commissioner Ballantine asked about the value of electricity for different times of day. Ratchye clarified that the energy does have different value throughout the day but that Palo Alto does not have time-of-use (TOU) rates. Vice Chair Cook said that if his system is sized just right, then he would not be paying the full cost of his service. He suggested that cost of service be included in the guidelines. The goals may be contradictory. Bailey said that avoided cost is used to calculate the value of solar. Bailey confirmed that the basis for the Palo Alto CLEAN program price is based on the value of solar, or the “avoided cost” of local solar, or the cost of remote renewable energy delivered to Palo Alto. Vice Chair Cook asked if there is a guideline addressing fairness. Bailey said that the electric COSA design guideline #1 addressing Proposition 26 addresses fairness and equity. Vice Chair Cook asked which guideline addresses the issue raised that the lower energy using customers are compensated at a lower rate compared to higher energy users. Bailey said that this is addressed by guideline #1. Vice Chair Cook asked if the potential adoption of smart meters and co-adoption of TOU rates should be considered. He noted that the high value time of day may change over time. Bailey said there is a strong relationship between rates and the NEM successor program. TOU rates will be addressed in the second phase of the Electric COSA, not the first phase that we are under now. Bailey stated that the NEM program would revised upon implementation of AMI and time varying rates. Vice Chair Cook said that his comments are not anti-renewable energy and that this is a fascinating topic. He advised that we shouldn't be negative with respect to renewable energy resources and need to somehow encourage clean energy at the same time as determine how to properly support it. Commissioner Schwartz said that she especially supports the guideline for the value of solar. She said that the reason Palo Alto can't do anything with respect to TOU is that CPAU hasn’t yet fully deployed smart meters. She said people with rooftop PV should possibly be compensated at the wholesale price. Bailey said CPAU can consider that in the development of a program. Commissioner Schwartz asked if interval meters can be used as a step less than full smart meter deployment. Bailey said that it was a possibility and that interval meters will be considered. Commissioner Schwartz noted that the purposes of the plan now may change over time and since CPAU claims to be carbon neutral, she questioned the value of rooftop solar PV. Chair Foster responded that energy consumed at night is either renewable or covered by a Renewable Energy Certificate (REC). Ratchye said that CPAU’s electric supplies are carbon neutral according to The Climate Registry’s protocol adopted by Council. Commissioner Schwartz said it’s hard to justify subsidies for rooftop PV if Palo Alto is carbon neutral. She added that customers should pay something for using the grid. Commissioner Eglash said that CPAU’s electric rates do not have a large fixed component or connection charge, but that could be changed. He asked if CPAU should consider a large fixed charge for the rates. Schwartz suggested that the fixed charge be “fair” instead of “large”. Ratchye reminded that Council has adopted the Phase One Electric COSA guidelines and that one included that we would consider having a minimum charge, rather than a fixed charge. She noted that minimum charges impact solar customers and very low energy users. Commissioner Ballantine showed that the trend is to higher solar penetration that could lead to an issue. Bailey said that the NEM successor program design guidelines were aligned with the first phase of the Electric COSA (0-5 years). Commissioner Ballantine asked if guideline 2 (consider compensating solar participants at a rate equivalent to the value of solar to Palo Alto via “value of solar tariff”) should be more specific. Commissioner Danaher suggested that the guideline refer to value of solar as the “avoided cost” of renewable energy delivered locally since that's really what that means. Commissioner Ballantine said the “Duck Curve” may not matter today but may become more important later. Ratchye said CPAU is impacted by wholesale prices since the value of our resources and loads depend on those prices. She said in the future metering equipment can be installed that can allow retail pricing based on TOU rates or even real-time pricing. Commissioner Ballantine said a guideline should address this idea. Ratchye replied that guideline #6 does just that. Commissioner Ballantine said is fine with #6, but worries that the guideline by itself may not have enough explanation. Ratchye pointed to more detail on each guideline provided in the staff report. Commissioner Ballantine asked if storage is covered in guideline #3. Bailey confirmed that this was the case and clarified that storage would be behind the customer meter. Commissioner Danaher wondered if there is a social benefit to local solar, but said he would prefer saving money by accessing much less costly large utility-scale solar projects instead of higher cost local solar and, instead of subsidizing local solar, use the money for efficiency and electrification. Commissioner Danaher said that he supports the guidelines and, especially the concept of compensating solar customers by the avoided cost. He asked how customers who have already installed solar would be treated. Bailey said those customers under the NEM cap are grandfathered into the current NEM program (compensation based on retail rate), but they are still subject to changes in Palo Alto’s electric rates. Chair Foster suggested that the value of local solar could be added to a future agenda. Ratchye said the rolling calendar includes a Palo Alto CLEAN program update in December and there will be discussion about avoided cost and additional local value. She said that Council has opined on this in the past when adopting prices for the Palo Alto CLEAN program. Danaher said he would like to understand the Council’s perspective and to hear the theories about the additional local values to local solar. Chair Foster (noting Council Member Filseth in the audience) said that Council was divided on the issue of the value of local renewable generation. ACTION: Commissioner Danaher made a motion that the UAC recommend Council approve the guidelines as presented with a change to guideline #2 to add “avoided cost, including time of day” to the value of solar. Commissioner Schwartz said that “avoided cost” is a difficult concept to explain and communicate. Commissioner Eglash said that what we pay for green energy that is brought to the Citygate is the definition of value of solar so that the guideline captures that. The motion died for the lack of a second. Vice Chair Cook made a motion that the UAC recommend that Council approve the guidelines as presented. Commissioner Eglash seconded the motion. The motion carried (6-0) with Chair Foster, Vice Chair Cook, and Commissioners Ballantine, Danaher, Eglash, and Schwartz voting yes and Commissioner Hall absent. City of Palo Alto (ID # 6371) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Contract for Purchase of Three Utility Vehicles for Water, Gas and Wastewater Operations Title: Approval of a Purchase Order With American Truck & Trailer Body (AT&TB) in an Amount Not to Exceed $687,638 for the Purchase of Three 2016 Peterbilt 337 Extended Cab Chassis Including AT&TB Maintenance, Construction Service Body and Approve Budget Amendments in the Water Fund, Gas Fund, Wastewater Fund, and Vehicle Equipment and Replacement Fund 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 purchase order with American Truck & Trailer Body (AT&TB) in the amount of $687,638 for the purchase of three 2016 Peterbilt 337 Extended Cab Chassis fitted with American Truck And Trailer Body Maintenance, Construction Service Bodies; and 2. Amend the Fiscal Year 2016 Budget Appropriation Ordinance for: a. the Water Fund by: i. Increasing the transfer to the Vehicle Equipment & Replacement Fund in the amount of $163,188; and, ii. Decreasing the Rate Stabilization Reserve in the amount of $163,188; b. the Gas Fund by: i. Increasing the transfer to the Vehicle Equipment & Replacement Fund in the amount of $163,188; and, City of Palo Alto Page 2 ii. Decreasing the Rate Stabilization Reserve in the amount of $163,188; c. the Wastewater Fund by: i. Increasing the transfer to the Vehicle Equipment & Replacement Fund in the amount of $163,188; and, ii. Decreasing the Rate Stabilization Reserve in the amount of $163,188; d. the Vehicle Equipment & Replacement Fund by i. Increasing the transfer from the Water Fund by $163,188; and, ii. Increasing the transfer from the Gas Fund by $163,188; and, iii. Increasing the transfer from the Wastewater Fund by $163,188; and, iv. Decreasing the ending fund balance by $43,074; and, v. Increasing the Scheduled Vehicle and Equipment Replacement – Fiscal Year 2016 project (VR-16000) in the amount of $532,638. Background The City’s existing size and class of utility service truck is inadequate for current utility operations and are the cause of inefficiencies. Gas and Water services require specialized equipment, large in scale and unsafe for towing on conventional trailors. If equipment can’t be hauled inside the vehicle, it must be towed behind. If necessary equipment cannot be loaded onto a single vehicle, multiple vehicles and staff are needed for delivery. The maintenance issues related to trailors being towed with inadequate vehicles have compounded the costs associated with these inefficiencies. In addition, tools, equipments and materials specific to each job must be loaded and unloaded onto the vehicles on a daily basis. After on-scene assessments, most jobs require additional or different equipment than anticipated. This impacts crew dispatch and emergency response times. Audit of Vehicle Utilization and Replacement The Vehicle and Equipment Use, Maintenance, and Replacement policy section 4- 1 provides for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled using guidelines based on age, mileage accumulation, and obsolescence. Policy 4-1, Attachment B “Fleet Repalcement City of Palo Alto Page 3 Criteria” prescribes a replacement interval for trucks with service bodies/dumps of ten (10) years or 100,000 miles. These purchases are being recommended with full consideration for the Audit of Vehicle Utilization and Replacement report dated April 2010. The Fleet Review Committee (FRC) reviewed all of the vehicles proposed for replacement and authorized their replacement on October 19, 2015 in accordance with audit recommendations and based on:  An examination of each vehicle’s current usage;  An analysis of each vehicle’s operating and replacement costs;  A comparison of the age, mileage, operating cost and performance of each vehicle with others in the class; and  An analysis of alternatives to ownership, such as mileage reimbursement; pooling/sharing; the reassignment of another underutilized vehicle, or renting. The City’s fleet currently has three utility service trucks on the replacement schedule. Two of the trucks are 1996 Chevy C3500HD’s with utility bodies, over 19 years in age and have a combined mileage exceeding 129,000 miles. The third truck, a 1997 Chevy C3500HD with utility body, is 18 years in age with mileage exceeding 42,000 miles. Two of the utility trucks are used for water and sewer operations, the third for gas operations. Discussion The fully outfitted Peterbilt 337 is the industry standard for underground utility work and equipped to eliminate the aforementioned inefficiencies. These larger capacity utility trucks can carry the full compliment of tools and tow the necessary trailors. Capacity will reduce time spent loading and unloading equipment, the need to make frequent return trips to the maintenance yard for additional equipment and improve dispatch and emergency response times. The staff time savings generated by the elimination of these ineffeciencies are estimated to more than offset the additional cost of the larger vehicles. Bid Process The City’s Municipal code, PAMC section 2.30.360 (j) identifies the process that City of Palo Alto Page 4 allows the use of intergovernmental cooperative purchasing agreements. Bids for this purchase (Attachment A) were obtained through the National Joint Purchasing Alliance (NJPA), an approved cooperative group. A Request for Quotation (RFQ) for three Peterbilt, model 337’s, was sent to National Joint Powers Alliance (NJPA) on January 21, 2015. Staff recommends that council approve this agreement with American Truck & Trailer Body (AT&TB) for the purchase of these three utility trucks. Resource Impact The Vehicle Replacement Fund does not have sufficient funding to purchase the three vehicles. Traditionally, vehicle procurements are pre-funded in the Vehicle Replacement Fund through annual charges to the department/fund that benefits from the vehicle. In the FY 2016 budget, there is $155,000 available in the Vehicle Replacement Fund allocated for these replacements. In this instance, the funds transferred from Utilities Enterprise Fund to the Vehicle Replacement Fund were not sufficient to fund this change in need and increase in cost. To support this purchase, an appropriation of $532,638 to the Scheduled Vehicle and Equipment Replacement - Fiscal Year 2016 project (VR-16000) in the Vehicle Replacement Fund, offset by transfers of $489,564 from the Utilities Water, Gas and Wastewater Funds and $43,074 from the Vehicle Replacement Fund, is recommended. The transfer from the Utilities Water, Gas and Wastewater Funds will be divided evenly in the amount of $163,188 offset by decreasing reserves from these funds. To support replacement of these vehicles when they reach utilization thresholds, the annual transfer from the Utilities Enterprise Fund to the Vehicle Replacement Fund will be increased in future budget years. Policy Implications Authorization of the contract does not represent any change to the existing policy. Environmental Review This vehicle will meet the EPA 2016 Emissions standards. Attachments:  NJPA Bid Doc#1 (PDF) City of Palo Alto Page 5  NJPA Bid Doc#2 (PDF) National Auto Fleet Group A Division of Chevrolet of Watsonville 490 Auto Center Drive,Watsonville,CA 95076 (855)289-6572·(855)BUY-NJPA •[831)480-8497 Fax FI eet@NationaIAutoFleetGroup.com 6/1/2015 Mr.Bryan Haggans City of Palo Alto 320 I East Bayshore Road Palo Alto,CA 94303 Dear Bryan Haggans, National Auto Fleet Group is pleased to quote the following vehicleis)for your consideration. Two (2)New/Unused (2016 Peterbilt 337 Extended Cab Chassis with AT&TB Maintenance,Construction Service Body)delivered to your department yard by Mr.Marsh with AT&T13,each for (1)One Unit (2)Extended Units Sub Total $ Tax (8.75%)$ 210,020.00 18,376.75 s $ 420,040.00 36,753.50 Total s 228,396.75 $456,793.50 -per the attached specifications. This vehicle(s)is available under the National Joint Powers Alliance Bid Number 102811. Please reference this Bid Number on all Purchase Orders. Thank you in advance for your consideration.Should you have any questions,please do not hesitate to call. Sincerely,.s->: Jesse Cooper National Fleet Manager Office (855)289-6572 Fax (831)480-8497 ~TOVOTA Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: Printed: Effective Date: Prepared by: , Phone: Fax:Contact Email: Prepared for: Horizontal Dimensions ModeL rilodel J31 QuoteiDTPOiCO NUf,')bHf ()?141G?;i(; 2.()-·· .............,······140.2 +···········31 .........210 (1.......................••.................;........................J2;J [J --_._-_._.._.._....._....••_.._.._....................•-••....; Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. 5/15/20159:20:47 AM Jan 1.2015 10:jimanderson Complete Model 337 Q21415286 30.22 Model Number: Quote/DTPO/CO: Version Number: 64252-FAFC-0517 Page 1of 1 Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: Bight -.Vdt Phone: Fax: Contact Email: Prepared for: Fuel Tanks Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 11:04:53 AM Jan 1 2015 ID:jimanderson Complete Model Number: Ouote/DTPO/CO: Version Number: Model 337 060515474 30.22 Page I of 1 Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: , Phone: Fax: Contact Email: Prepared for: Vehicle Summary Unit ChassisModel:Model 337 Fr Axle Load (Ibs):12000 Type:Full Truck Rr Axle Load (Ibs)20000 Description:Crew Truck G.C.w.(Ibs):60000ApplicationRoadConditions: Intended Serv.:City Delivery Class A (Highway)100 Commodity:Other Commodity Class B (Hwy/Mtn)0 Class C (Off-Hwy)0BodyClassD(Off-Road)0 Type:Platform w/Devices Maximum Grade:6 Length (ft):14 Wheelbase (in):210 Height (ft):13.5 Overhang (in):81.79999 Max Laden Weight (lbs):1000 Fr Axle to BOC (in):69.8 Cab to Axle (in):140.2 Trailer Cab to EOF (in):222.0 No.of Trailer Axles:0 Overall Comb.Length 313(in): Type: Length (ft):0 Special Req. Height (ft):0.0 United States Registry Kingpin Inset (in):0 Corner Radius (in):0 Restrictions Length (ft):40 Width (in):102 Height (ft):13.5 Approved by:Date: Note:All sales are F.O.B.designated plant of manufacture. PACCAR Financial offers innovative finance,lease and insurance programs customized to meet your needs. IPAcx:4AFINANCIAL Ask your dealer for a quote today,or visit our website @ www.paccarfinancial.com. Unpublishedoptions may require review/approval.Dimensionaland performancedata for unpublished options mayvary from that displayed in PROSPECTOR. Printed: EffectiveDate: Preparedby: 5/15/2015 10:25:08AM Jan 1.2015 ID:jirnanderson Complete ModelNumber: Ouote/DTPO/CO: Version Number: Model337 060515474 3022 68129-IOA21-0120 Page 1 of 10 Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: , Phone: Fax: Contact Email: Prepared for: Description Base Model Model 337 Other Commodity City Delivery Truck or tractor which hauls freight,typically operating within a 100-mile radius,on public streets and highways and other paved surfaces.Typically includes package and freight delivery. Platform w/Devices United States Registry Configuration Not Applicable Secondary Manufacturer Frame &Equipment 10-5/8in Steel Rails 326-384 in 10.625 x 3.45 x .313 Dimension,1,776,000 RBM;Yield Strength 120.000 psi.Section Modulus 14.8 cubic inches.Weight 1.44 Ibs/inch pair Custom Wheelbase or Overhang Engineering approval may be required. EOF Square without Xmbr For use with body builder installed crossmember. Omit Rear Mudflaps and Hangers Front Axle &Equipment Dana Spicer E12021 12,000 Ib 3.5"drop.Factory front axle alignment to improve handling &reduce tire wear.Zerk fittings on tie rod ends,king pins.&draglink ball joints for ease of maintenance &help extend service life of components.Coqrus EMGARD®FE75W-90 synthetic axle lube provides over 1%fuel economy improvement.Reduces wear &extends maintenance intervals,resulting in increased uptime.Provides improved fluid flow to protect components in extreme cold conditions &withstand the stress from Iligh temperatures, extending component life. Taper Leaf Springs,Shocks 12,000 Ib Power Steering Sheppard HD94 For use with 10,000 to 13,200 lb.axle ratings. Weight 10,215 o o o o o 400 o o o o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 AM Jan 1.2015 10:jirnanderson Complete Model Number: Ouote/DTPO/CO: Version Number: 68129-IOA21-0120 Model 337 060515474 30.22 Page 2 of 10 Description Power Steering Reservoir Frame Mounted PHP10 Aluminum LMS Hubs 11-1/4"bolt circle.Includes a supplier extended coverage up to 3 years 350.000 miles for bearings &seals. Dana Spicer Wide Track IPO Std,Front Axle 71in KPIIPO 69in for E1202,E1322,E1462,D2000F front axles.For improved turning radius. Bendix Air Cam Front Drum Brakes 16.5x5 For use with 10,000 Ibs to 14,600 Ibs steer axles.Includes automatic slack adjusters &outboard mounted brake drums. Dust Shields,CAM And Air Disc Brakes,Front Axle Rear Axle &Equipment Dana Spicer P20060S 20,000 Ib PHP10 Iron LMS Hubs 11-1/4"bolt circle.Includes a supplier extended coverage up to 3 years! 350,000 miles for bearings &seals. Parking Brakes (Axle Package) Dust Shields For Cam Brakes,Drive Axle(s) Diff Lock Rear-Rear Or Single Drive Axle (Air Rocker Switch occupies the space of one gauge) Rear Brake Camshaft Reinforcement Gusseted Cam Brackets,Drive Axle(s) SBM Valve Full trucks require a spring brake modulation (SBM)system for emergency braking application.This system requires an SBM valve and a relay valve with spring brakes on the rear axles.The SSM valve allows the foot valve to operate the rear axle spring brakes if a failure exists in the rear air system. Upsize Parking Brakes Stability System Not Selected or Not Available Single Drive Axle (Model 337) Anti-Lock Braking System (ABS)4S4M ABS-6.Includes air braking system. Bendix Air Cam Rear Drum Brakes 16.5x7 Inc automatic slack adjusters &outboard mounted brake drums Ratio 6.17 Rear Axle Peterbilt Low Air Leaf 21,000 Ib,Light Weight Engine &Equipment Weight o o 5 o 4 o o o 15 24 9 2 o o o o o o o 73 Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 ,I\M Jan 1,2015 ID:jimanderson Complete Model Number: Ouote/DTPO/CO: Version Number: 68129-10;,\21-0120 Model 337 060515474 30.22 Page 3 of 10 Description PACCAR PX-9 300@2000 GOV@2200860@1300 (2013 Emissions)Includes alum flywheel housing,cruise control,and J1939 provisions (provides an interface point for the Electronic Service Analysis-ESA and other PACCAR approved diagnostic tools).Chevron Delo LE SAE 10W30 engine oil is specially formulated for new low emissions engines.Magnetic engine oil drain plug captures and holds any metal fragments in engine oil to extend service life. N21320 N205 120..Standard Maximum Speed Limit [LSL] N21330 N207 O....Expiration Distance N21340 P005 120 ..Hard Maximum Speed Limit N21350 P001 64 ..Maximum Accelerator Pedal Vehicle Speed N21360 P110 O Accelerator Lower Droop N21370 P059 64 Maximum Cruise Speed N21380 P111 O,.,.Cruise Control Lower Droop N21400 N203 252..Reserve Speed Function Reset Distance N21410 N202 0 ,.Maximum Cycle Distance N21420 N206 10..Maximum Active Distance N21430 N201 O Reserve Speed Limit Offset N21440 P015 No Engine Protection Snutdown N21450 P026 NO Gear Down Protection N21460 P046 1400.Max PTO Speed N21470 P062 NO Cruise Control Auto Resume N21480 P068 No Auto Engine Brake in Cruise N21500 N209 O Expiration Distance N21510 P520 Yes..Enable Idle Shutdown Park Brake Set N21520 P030 5....Timer Setting N21530 P233 Yes ..Enable Impending Shutdown Warning N21540 P234 60 Timer For Impending Shutdown Warning N21550 P516 35 Engine Load Threshold N21570 P031 No ldle Shutdown Manual Overrule N21590 P230 Yes ..Enable Hot Ambient Automatic Overrule N21610 P172 40 Low Ambient Temperature Threshold N21620 P173 60 lntermediate Ambient Temperature Threshold N21630 P171 80 High Ambient Temperature Threshold Engine Idle Shutdown Timer Enabled Enable EIST Ambient Temp Overrule Eft EIST NA Expiration Miles Effective VSL Setting NA CARB Engine Idling Compliance PACCAR PX-7,PX-9 and MX,Cummins ISL,ISM and ISX diesel engmes will include the required factory installed serialized sticker on the drivers door to identify them as meeting the NOx idling standard. PACCAR 160 Amp Alternator,Brushed PACCAR 12V Starter 2 PACCAR Premium 12V Starting Batteries 2000 CCA Threaded stud type terminal.Stranded copper battery cables are double aught (00)or larger to reduce resistance. Battery Jumper Terminal Mounted Under Hood LH Frame Rail.Not available with PX-7 engines. Weight o o o o o o o o -4 4 Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 68129-IOA21-0120 5/15/201510:2508 AM .Ian 1 2015 ID:jimanderson Complete Model Number: Ouote/DTPO/CO: Version Number: Model 337 060515474 30.22 Page 4 of 10 Description OM Advantage ON/OFF Fan Clutch 18.7 CFM Air Compressor Furnished on engine.Teflon lined stainless steel braided compressor discharge line. C-Brake By Jacobs,PX-9 Spin-On Fuel Filter/Water Separator,12VHeated Frame Mounted.In addition to the fuel filter supplied with the engine. Includes fuel water separator on Models 330,337,and 348. Engine Protection Shutdown Includes oil pressure,oil temperature,coolant temperature,and intake manifold temperature. High Efficiency Cooling System Silicone radiator &heater hoses enhance value,durability,&reliability. Constant tension band clamps reduce leaks.ClimaTech extended life coolant extends maintenance intervals which reduces maintenance costs. Anti-freeze effective to -30 degrees F helps protect the engine.Low coolant level sensor warns of low coolant condition to prevent engine damage.Radiator Size by Model 587 1330 sq in.579/367 FEPTO 1325 sq in,567/365/367 1440 sq in.384/386:1301 sq in,382/365 FEPTO: 1184 sq in.389/367 HH 1669 sq in,348:1000 sq in. Radial Seal,Dry Type Air Cleaner,Frontal Air Intake.Molded rubber air intake connections with lined stainless steel clamps seal to prevent contaminants in air intake. Exhaust Single Horizontal DPF/SCR RH under cab.Includes cab entry RH under cab. Transmission &EquipmentAllison 3000 RDS-PTransmission,Gen 5 Rugged Duty Series.Includes Rear Transmission Support.TranSynd Automatic Transmission Fluid,and Water Oil Heat Exchange.Also includes features that monitor the transmission fluid,filter and clutch condition Wili display percent life remaining for the transmission fluid,filter and clutches on the shift selector.This information may be displayed using the Mode and Up and Down buttons.A wrench icon will also be included to indicate when the transmission fluid.filter or clutches need servicing. (Suited for vehicles operating on/oft highway and/or requiring PTO operation) 1710HD Driveline,2 Midship Bearings (1)Dash Mounted Single Acting Air PTO Control Standard with PTO engaged indicator light on Class 8 units.Occupies the space of one gauge. LH PTO Access Dipstick Tube Routing,Allison Trans Allison FuelSense Not Desired Allison 6-Speed Configuration,Close Ratio Gears 3000 Series Transmissions Dash Mounted Push Button Shifter Weight o o 90 o o o o -31 110 100 o o o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5!15/2015 10:25:08 AM Jan 1,2015 ID:jrnanderson Complete Model Number: Ouote!DTPO/CO: Version Number' 68129-IOA21-0120 Model 337 060515474 3022 Page 5 of 10 Description Air &Trailer Equipment Bendix AD-IS EP Air Dryer with Heater Extended Purge (for use with higher air consumption applications).An integrated system air dryer that incorporates tile functions of the air dryer, purge reservoir (which Increases the drying capacity),wet air tank, pressure relief valve.Single check valves,and pressure protection valve for air susp and other air accessories.Includes easy-to-service spin-on dessicant cartridge. Berg Pull Cord Drain Valve(s)-All Air Tanks Nylon Chassis Hose Steel Painted Air Tanks All air tanks are steel with painted finish except when Code 4543330 Polish Aluminum Air Tanks is also selected (then exposed air tanks outside the frame rails will be polished aluminum).Peterbilt will determine the optimal size and location of required air tanks.Narratives requesting a specific air tank size or location will not be accepted for factory Installation See ECAT to determine number or location of air tanks installed. Body Connections 5ft BOC Junction Box contains light and power circuits for Body Connections located 51tfrom BOC. A&E Conn EOF w/7-way Socket (w/Conn EOF Strapped to tile rail) Tires &Wheels FF:GY 14ply 295/75R22.5 G661 HSA Diameter =40.6 Inches;SLR =19.0 inches.Compares to Michelin XZE2 and Bridgestone R260F tread. RR:GY 14ply 295/75R22.5 G572A LHD Fuel Max;Diameter =41.1 inches;SLR =19.3 inches Code-rear Tire Oty 04 FF:Accur Stl Armor 50344PK 22.5XB.25 Heavy duty,5 Hand Holes RR:Accur Steel Armor 50487PK 22.5X8.25 PHP10-5 hand holes Code-rear Rim Oty 04 Accuride Grey Wheels IPO White FuelTanks 26in Aluminum 50 Gallon Fuel Tank LH U/C Includes steps for cab access.Paddle handle filler cap with threadless filler neck.Top draw fuel plumbing reduces chance of introducing air into the fuel system during low fuel level conditions due to the central placement of fuel pickup tube.Wire braid fuel lines increase durability & reduce potential for leaks. Location LH U/C 50 Gallon DEF Tank Mounted LH Under Cab Standard DEF To Fuel Ratio 2:1 Or Greater Weight 39 o o o 4 15 14 60 o 22 -8 o o -119 o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10 25:08 AM Jan 1.2015 iD:jimanderson Complete ModelNumber: Ouote/DTPO/CO: VersionNumber: 68129-IOA21-0120 Model337 060515474 30.22 Page 6 of 10 Description DEF Tank Small Battery Box &Bumper Install Batteries On Temp Plywood Support BOC Includes maximum length battery cables allowable per engine manufacture requirements.Recommend three or more batteries for Class 8. Aftertreatment RH U/C Alum Non-Slip Cab Entry Step.DPF/SCR for diesel engines.catalyst for natural gas engines.On Modeis 579 specifying chassis fairings,the box will be aerodynamic. Steel Styled Aero Bumper Painted Different Color Than cab or hood,2 tow pins. Cab &Equipment Alum Cab 108in BBC Metton Hood w/Bright Crown Includes view window RH door and convex mirror over RH door. Severe Service Cab Package #1 Includes Aluminum side skins,aluminum rear skin,steel windshield mask, steel firewall.and steel front floor sheet on all cabs,and additional reinforcement structure on the back wall of the day cab. Thermal Insulation Package in Cab Includes thick,closed-cell foam in floor,special mylar-faced foam in walls and roof structure.. 10 Inch Extension for Ultra Day Cab Add additional 10"to tile loadspace dimension--refer to the horizontal dimension workscreen. Peterbilt UltraRide Driver Seat Peterbilt UltraRide Passenger Seat Drivers Armrest -RH Only Required in Model 587 with Evolution LX seats.Optional wittl Evolution ST and Rolltek Seats. Air Ride Driver High Back Driver Vinyl Driver Air Ride Passenger High Back Passenger Vinyl Passenger Adjustable Steering Column -Tilt/Telescope Steering Wheel with Peterbilt Logo Steering Wheel with embossed Peterbilt logo over horn button. Weight o -97 o o o 39 2 163 o o 2 o o o o o o 11 o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 AM Jan 1.2015 10:jirnandorson Complete Model Number: Ouote/DTPO!CO: Version Number: 68129-IOA21-0120 Model 337 060515474 30.22 Page 7 of 10 Description Interior Grey/Black Includes rugged charcoal instrument panels,glare-resistant gray dash, black bezels on gauges,(2)power ports,monochromatic molded door pads with durable in-mold color,gray molded back wall,18 inch 4-spoke soft-touch steering wheel,soft-touch steering column cover,power lift passenger window,extruded rubber floor covering,header-mounted dome light,foot well lighting,integrated "dead pedal",(4)inside entry grab handles,(2)inside sunvisors,(2)coat hooks,(2)cup holders and map bin in dash. Dark Window Tint ipo STD Tint -Day Cab Day Cab Rear Window One Piece Curved Windshield Combo Fresh Air Heater/Air Conditioner Wittl radiator mounted condenser,dedicated side window defrosters,Bi- Level Heater/Defroster Controls.54,500 BTU/HR,and silicone heater hoses. Outside Sunvisor -Stainless Steel Available for Day Cab and Low Roof Sleeper Stainless Steel Mirrors 7x16 with Heat Element (2)Convex 8 Inch SS Mirror Center mounted under mirror bracket.If rear view mirrors are heated ..the convex mirrors wlil be heated,Option includes dual door stops, Mirror Aux RH Fender/Hood (2 legs on fender and 1 leg on hood) Mirror Aux LH Fender/Hood (2 legs on fender and 1 leg on hood) Power Package Includes power door locks and power Windows. (1)Air Horn 24.5in Chrome -Round w/Horn Shield Standard Speaker Package For Cab (2)Speakers ConcertClass Without CD,Includes BT Phone and Audio,AM/FM,W8,USB and MP3, Radio Antenna Mounted Logger Style Antenna Mounted LH on BOC In Place of Center Roof position on Conventional Models. Models 579 and 567 Antenna Mounted LH Roof In Place Of Center Roof position. Plug-In Auto Reset Circuit Breaker in place of fuses in junction box, Peterbilt Electric Windshield Wipers With Intermittent Feature, Weight o o o o o 4 2 4 4 4 o 8 4 10 o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR, Printed: Effective Date: Prepared by: 68129-IOA21-0120 5/15/201510:25:08 AM Jan 1,2015 10:jimanderson Complete Model Number: Ouote/OTPO/CO: Version Number: Model 337 060515474 30.22 Page 8 of 10 Description CabMate Cab Air Suspension Mfg by Link.The class 8 conventionals (except Model 348)includes (2) airbags,(2)shock absorbers,(1)leveling valve,radius rod,and height limiter.Tile Models 330.337,and 348 includes (1)airbag and (1)shock absorber. Triangle Reflector Kit Shipped Loose 5 Ib 3A:40bc Fire Extinguisher Cab Mounted Air Restriction Indicator Mounted on air cleaner or intake piping. Main Instrumentation Panel,Graphics Display Includes speedometer with tripodometer,tachometer with hourmeter and outside air temperature display,voltmeter,engine oil pressure,engine coolant temperature,fuel level,primary and secondary air pressure gauges.Includes standard warning light package:high water temperature,low oil pressure,and low air pressure warning lights w/audibie alarms,high beam,turn signal,low fuel,parking brake,and ice warning indicators;seat belt reminder;rocker switches with long-life LED indicators;multi-function turn stalk with flash-to-pass feature (night mode flashes headliqhts and marker lights;day mode flashes headlights only), intermittent windshield wiper and headlamp beam control.Hydraulic braked trucks do not include air pressure gauges. Headlights Composite Fender Mounted Integral Park,Turn.and Side Marker (5)Marker Lights,Aero LED Light Emitting Diodes (2)Peterbilt Fog Lights Recessed in bumper Daytime Running Lights (Required on Canadian units) (2)Addl Dome/Reading Lights,Ceiling Mounted Paint Bumper Painted Separate Color Than Hood (1)Color Axalta Two Stage·Cab/Hood Base Coat/Clear Coat N85020 A -L0006EB WHITE -Stand N85040 B -L5927EB ARGENT GRAY E N85400 HOOD TOP L0006EB WHITE -Stand N85500 CAB ROOF L0006EB WHITE Stand N85200 FRAME NOOOiEA BLACK N85700 BUMPER L5927EB ARGENT GRAY E N85300 FENDER L0006EB WHITE -Stand AxaltaTwo Stage Effect·Metallic/Pearl Cab/Hood &Sleeper Only Shipping Destination Weight 15 13 8 a a a a 6 a a a o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 .A.M Jan "2015 10:jimanderson Complete Model Number: Ouote/DTPO/CO: Version Number: 68129-1 OA21-0 120 Model 337 060515474 30.22 Page 9 of 10 Description Shipping Destination (Specify by narrative) N89900 American Truck &Trailer Body Co,Inc, Options Not Subject To Discount Medium Duty Emissions Surcharge POI At Excellence Peterbilt Location Vehicle Layout Option is not subject to discount Fleets will be split prior to build so that the charge is applied to only olle unit.Quotes will not reflect this, Miscellaneous Presentation Created Using Featured Spec For Model Total Weight Prices and Specifications Subject to Change Without Notice. Weight o o o o o 11245 Unpublishedoptions mayrequire review/approval.Dimensionalandperformancedata for unpublished options mayvary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 AM Jan 1,2015 10:jimanderson Complete Model Number: Ouote/OTPO/CO: VersionNumber: 68129-1 OA21-0 120 Model 337 060515474 30.22 Page 10 of 10 CITY OF PALO ALTO NJPA CONTRACT PACKAGE HEA VY CREW TRUCK BODY FOR MAINTENANCE,CONSTRUCTION AND SERVICE -GAS,WATER,WASTE WATER .,1t'~iun:itt;---- i~7'~%i1_1.~ .L";-.j;r-1.:;•~ PROVIDE AND INSTALL THE FOLLOWING LINE BODY AND ASSOCIATED EQUIPMENT IN ACCORDANCE WITH THE FOLLOWING SPECIFICATIONS ON A CITY SUPPLIED CHASSIS- CAB.THE CHASSIS SHALL BE A TWO (2)AXLE,26,000.00-35,000 GVWR CLASS VI or vn CHASSIS WITH 128"CA,CLEAN.CHASSIS MUST BE EQUIPPED WITH AN ALLISON 2000 OR HIGHER SERIES AUTOMATIC TRANSMISSION. BODY TO BE AN AMERICAN TRUCK AND TRAH.,ER BODY COMPANY HCPA1 SERIES BODY WITH THE BELOW LISTED ACCESSORIES .....(NO EXCF:PTIONS) ALL ITEMS FURNISHED PER THIS SPECIFICATIONS SHALL COMPLY WITH ALL APPLICABLE FEDERAL AND CALIFORNIA STATE LAWS,CODES AND REQUIREMENTS AS OF THE DATE OF SALE. MAIN BODY DETAILS: A.RIGHT SlOE FRONT VERTICAL COMPARTMENT I.APPROXIMATE INSIDE DIMENSIONS 40"W X 70"H X 24"0 2.COMPARTMENT TO HAVE A THRU-SECTION FOR LONG STORAGE 3.(1)ADJUSTABLE SHELF WITH ADJUSTABLE DIVIDERS 4.(1)GFCI OUTLET LOCATED ABOVE THRU SECTION 5.ROM ROLL-UP DOOR 6.TOP SECTION,ABOVE COMPARTMENT TO HOUSE COl\tlPRESSOR COOLER AND AIR INTAKE B.RIGHT SIDE SECOND VERTICAL COMPARTMENT I.APPROXIMATE INSIDE DIMENSIONS 30"W X 70"II X 24"D 2.COMPARTMENT TO HAVE (3)ATTBC THOI TOOL.HOLDERS 3.(I)ADJUSTABLE SHELF WITH ADJUSTABLE DIVIDERS 4.ROM ROLL-UP DOOR 5.COMPARTMENT FLOOR TO BE REINFORCED TO HOLD THE WEIGHT OF THE TOOL HOLDERS. C.RIGHT SlI)E THIRD VERTICAL COMPARTMENT 1.APPROXIMATE INSIDE DIMENSIONS 24"W X 70"H X 24"D 2.TOP SECTION TO HAVE (1)ADJUSTABLE SHELF ABOVE DRAWER SET WITH ADJUSTABLE DIVlDERS 3.COMPARTMENT TO HAVE A HEAVY DUTY DRAWER SET WITH (5)5"DRAWERS 4.ROM ROLL-UP DOOR 5.COMPARTMENT TO HAVE (I)GFCI OUTLET ABOVE DRAWER SET D.RIGHT HORIZONTAL COIVIPARTMENT OVER REAR AX~=L TO REAR PANEL 1.APPROXIMATE INSIDE DIMENSIONS 52"L X 41"II X 24"D 2.ROM ROLL-UP DOOR 3.HANNAY 100'12V ELECTRIC REWIND 3/.;'AIR HOSE REEL. 4.REELCRAFT SPRING REWIND HOSE REEL TO HAVE 50'OF 3/8"AIR HOSE FOR SMALL TOOLS 5.REELCRAFT SPRING REWIND HOSE REEL WITH DUAL (PfR)HOSE TO HAVE 50'OF 3/8"PRESSURE AND RETURN HYDRAULIC HOSE WITH QUICK DISCONNECT COUPLERS. E.RIGHTSlDE REAR VERTICAL COMPARTIVlENT APPROXIMATE INSIDE DIMENSIONS 26"W X 70"II X 24"D 2.COMPARTMENT TO HAVE (4)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS 3.ROM ROLL-UP DOOR F.LEFT SIDE FRONT VERTICAL COMPARTMENT (WITH WELDER PLATFORM) 1.APPROXIMATE INSIDE CLEAR DlI'vIENSIONS 40"W X 34"H X 24"D 2.BARN STYLE DOOR WITH 3 POINT PADDLE LATCH,TOP SECTION OF THE COMPARTMENT ro BE ATHRU-SECTION. 3.SECTION ABOVE BARN DOOR COMPARTMENT TO HAVE A 40"W X 70"D WELDER PLATFORM FOR LINCOLN 400 SERIES DIESEL WELDER. G.LEFT SIDE SECOND VERTICAL COMPARTMENT 1.APPROXIMATE INSIDE CLEAR DIMENSIONS 30"W X 70"H X 24"D 2.ROM ROLL-UP DOOR 3.COMPARTMENT TO HAVE (3)THREE ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS 4.COMPARTMENT TO HAVE (I)GFCI OUTLET AT MID POINT LEFT H.LEFT HORIZONTAL COMPARTMENT J •APPROXIMATE INSIDE CLEAR DIMENSIONS 52"L X 41"H X 24"D 2.ROM ROLL-UP DOOR 3.COMPARTMENT TO HA.VE THREE (2)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS. 4.ADJUSTABLE DIVIDERS IN BOTTOM OF COMPARTMENT 2 J.LEFT SIDE REAR VERTICAL COl\lPARTMENT I.APPROXIMATE INSIDE CLEAR DIMENSIONS 26"W X 70"H X 24"D 2.COMPARTMENT TO HAVE (3)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS 3.ROM ROLL-UP DOOR K.MISC. l.ALL COl'vIPAR'T'lVIENfSTO HAVE LED INfERIOR "ROPE"LIGHTS.LIGHTS TO HAVE AN ON/OFF SWITCH IN CAB. 2.ALL COMPARTMENTS TO BE WATERTIGHT WITH A DRAIN HOLE IN THE BOTTOM WITH A REMOVABLE PLUG BED AREA DET AILS: A.SUPERSTRUCTURE l.DIMENSIONS 31"H X 132"LX 95"W (CURBSIDE TO BE TAPERED TO ACCOMMODATE REFERENCED HYDRAULIC PIPE RACK -SEE REFERENCE DRAWINGS). 2.TWO (2)EQUAL SPACED MATERIAL SHELVES EACH SIDE,ABOVE SIDE OF BODY 132"LONG.SHELVES TO BE VERTICALLY SUPPORTED FROM ROOF TO SIDE RACKS AND HAVE INTERIOR ACCESS.SHELVES BOTH SIDES TO HAVE INTERIOR UPWARD RETURN TO KEEP ITEMS FROM FALLING INTO BED AREA 3.REAR TO HAVE A ROLL-UP GARAGE STYLE DOOR 4.ROOF TO HA VE (2)STREETSlDE AMBIENT UGHT WINDOWS. B.MISC. 1.REAR TO HA VE 6"HIGH REMOVABLE WOOD T/\IL BOARD 2.E-TRACK TO BE INSTALLED ON EXPOSED BED INTERIOR WALLS. 3.LEFT REAR SECTION OF BED AREA TO HAVE PLASTIC PIPE REEL INSTALLED AGAIST BED WALL PAYING-OUT TO THE REAR. 4.ROOF HAVE TWO (2)DOME UGHTS WITH SWITCHES TO BE WIRED TO MASTER COMPARTMENT LIGHT SWITCH IN CAB 5.FURNISH AND INSTALL TRAFFIC CONTROL ARROW STICK AT REAR OF BODY 6.FURNISH AND INSTALL ATTBC ROT ATlNG TAMPER l-IOLDER ON FRONT OF CHASSIS 7.FURNISH AND INSTALL ATTBe TILT-DOWN FRONT MOUNTED CONE HOLDER 8.BED AREA TO BE BLACK NON-SKID PAINTED/COATED REAR PLATFORM DETAILS: "_, PLATFORM DECK TO EXTEND 24"AFT OF COMPARTIVIENT SIDE RACKS AND BE 95"WIDE A.PLATFORM TO BE 3/16"DIAMOND PLATE AND PAINTED WfTH BLACK NON-SKID PAINT/CO ATI NG B.LEFT SIDE OF PLATFORM C.UNITS STOP,TAIL,DIRECTIONAL,BACK-UP AND MARKER LIGHTS FOR THE REAR OF VEHICLE TO BE LED D.LEFT REAR OF PLATFORM TO HAVE ACCESS STEPS WITH HAND RAIL. E.FLUSH MOUNTED IN REAR PLATFORM ALL LIGHTS TO BE LED AND HAVE BACK PROTECTION. F.RIGHT REAR CORNER OF PLATFORM TO BE REINFORCED FOR VISE MOUNTING, WITH FRONT SUPPORT G.TWO (2)120 VAC DUAL RECEPTACLE GFCI PROTECTED OUTLETS SHALL BE INSTALLED,ONE (I)ON RiGHT SIDE RECESSED AND ONE (I)ON LEFT SIDE. H.(1)500 WATT TELE-LIGHT WITH TRI-POD TO BE INSTALLED AT SS REAR OF PLATFORM LINE CONSTRUCTION BODY GENERAL DETAILS: A.MINIMUM 14-GAGE GALVANNEAL STEEL OR AS SPECIFIED,ELECTRICALLY WELDED B.ALL EDGES,INSIDE AND OUTSIDE,GROUND SMOOTH,AND ALL EXPOSED EDGES HEMMED C.ROM ROLL-UP DOORS '1"0 BE KEYED ALIKE. D.ALL ATTACHING HARDWARE TO INCORPORATE ELASTIC SELF-LOCKING NUTS,OR EITHER A LOCK WASHER OR STAR WASHER AT THE MINIMUM,PLAIN WASHERS TO BE INCORPORATED UNDER THE HEAD OF HEX-HEAD BOLTS E.COAT ENTIRE UNDERSIDE OF BODY (FLOOR.WHEEL WELLS,COMPARTMENTS) WITH UNDERSEAL F.PROVIDE OFFSET FOR SPRING HANGERS BASED ON CHASSIS-CAB SPECIFICATIONS G.REAR WHEEL CUTOUTS MUST ALLOW SUFFICIENT ROOM FOR TIRES MINIMUM 6" H.PROVIDE REAR WHEEL SPLASHGUARDS AS REQUIRED PER SAE .1682,OR AS SPECIFIED OTHERWISE.SPLASHGUARDS TO BE INSTALLED IMMEDIATELY BEHIND REAR AXLE 1.BODY TO BE ATTACHED TO CHASSIS USING fvllNIIVIUMSIX-POINT SYSTEM TO COMPLY WITH FMVSS.BODY SHOULD BE SHEAR PLATE MOUNTING DESIGN AND ALL ATTACHING HARDWARE SHALL BE SAE GRADE 8,AND ALL CHASSIS FRAME HOLES Sl-lALL BE DRILLED AND REAMED TO FINAL DIMENSION J.TWO CHOCK HOLDER IN EACH FENDER PANEL K.BODY MATERIAL GAUGES AS FOLLOWS I.FLOOR 3/16 DIAMOND PLATE 2.CROSS MEMBERS STRUCTURAL CHANNEL 3.LONGITUDlNALS STRUCTURAL CHANNEL 4.TOP PANEL 14 GA 5.REAR END PANEL 14GA 6,FRONT END PANEL 14 GA 7.FRONT PANEL 14GA 8.COMPART'MENTFLOOR 14GA 9.DOOR PANELS 18/18 GA 10.FENDER PANEL 14 GA Il.SHELVES IN BODY 16 GA 12.SUPERSTRUCTURE 14 GA L.ALL COMPARTMENTS TO BE WATER RESISTANT M.ADJUSTABLE TRAYS TO BE MANUFACTURED SO THEY CAN BE l'v[OVEDFROM ONE LOCATION TO ANOTHER WITIIOUT SCRAPING PAINT OFF COMPARTMENT WALLS N.ADJUSTABLE DIVIDER SHELVES SHALL INCORPORATE ADJUSTABLE SLOTS ON TWO -INCH CENTERS O.CAULK AND SEAL ALL NON-CONTINUOUSLY WELDED BODY SEAMS AND ATTACHING POINTS FOR BODY ACCESSORIES 4 P.SUPPLY AND INSTALL PLYWOOD RACK ON BODY FRONT PANEL BETWEEN CHASSIS CAB AND BODY AC ELECTRICAL WIRING REQllIREMENTS: A.REMOTE ELECTRICAL RECEPTACLES SHALL MEET'OR EXCEED THE FOLLOWING SPECIFICATIONS, I.COMMERCIAL GRADE 2.RECEPTACLE RATING:120 VAC,20 AMP,GFCI DUPLEX RECEPTACLE J.RECEPTACLE TO BE INSTALLED IN A DEEP,COVERED,WEATHERPROOF IN- USE RECEPTACLE BOX APPROVED FOR "WET"ENVIRONMENTS B.ALL 120 VAC ELECTRICAL WIRING SHALL BE OF THE APPROPRIATE GAUGE, CONSIDERING POWER SUPPLY,LENGTH OF RUN,/\ND REMOTE RECEPTACLE RATING C.ELECTRICAL TO BE ROUTED IN "SEAL-TITE",OR EQUIVALENT CONDUIT. FLEXIBLE METAL CONDUIT IS NOT ACCEPTA.BLE VEHICLE LIGHTING REQUIREMENTS: A.ALL VEHICLE LIGHTING TO BE LED,AND IN COMPLIANCE WITH FEDERAL LIGHTING STANDARD FMVSS 108,AS WELL AS COMPLY WITH THE STATE OF CALIFORNIA VEHICLE CODE B.ALL VEHICLE LIGHTING TO BE FLUSH MOUNTED AND RUBBER SHOCK-MOUNTED C.ALL SIDE AND REAR REFLECTORS ARE TO BE COMBINED (VIA A REFLECTORIZED LENS)WITH SIDE MARKER LAMP(S),WHERE POSSIBLE AND WITHIN THE SPECIFICATIONS OF FMVSS 108.IF A SOLE REFLECTOR IS REQUIRED,A DOT APPROVED REFLECTORIZED ADHESIVE MATERIAL SHOULD BE USED IN LIEU OF A RIVETED OR SHEET METAL SCREW ATTACHED ARMORED REFLECTOR D.A METAL GUARD SHALL PROTECT THE BACKSIDE OF ANY LIGHTING THAT PENETRATES INTO REAR BODY COMPARTMENTS E.UNITS WILL HAVE (4)LIGHTS TO THE REAR OF THE VEHICLE (2)BRAKE AND TAILLIGHTS IN THE FACE OF THE DECK.AND TWO BACK UP LIGHTS F.ALL BODY COMPARTMENTS TO HAVE LED INTERIOR LIGHTS,EACH LIGHT TO HAVE ON/OFF SWITCH WITH MASTER POWER SWITCH IN CAB G.LICENSE PLATE LIGHT SHALL BE FURNISHED AND INSTALLED THE FOLLOWING GUIDELINES SHALL BE ADHERED TO AS GENERAL ELECTRICAL WIRING PRACTlCE: A.ALL WIRING,INTERNAL.AND EXTERNAL,SHALL BE LOOMED,AND PROPERLY SECURED AND ROUTED IN A PROFESSIONAL MANNER S.ANY NECESSARY WIRE SPLICES AND/OR BUTT CONNECTIONS SHALL BE SOLl~RED AND SHRINK-WRAPPED,OR FINISHED USING CRIMPED BUTT CONNECTORS AND SHRINK-WRAPPED.SCOTCH LOCKS ARE NOT ACCEPTABLE C.WIRING TO BE SECURELY FASTENED AND INDEPENDENTLY SUPPORTED USING PROPERLY SIZED CUSHION CLAMPS,METAL CLIPS,OR OTHER INDUSTRY ACCEPTED SUPPORTING HARDWARE.TIE-WRAPS SHALL ONLY BE USED IN BETWEEN PRIMARY WIRING SUPPORTS AS NECESSARY TO AID IN THE SECUREMENT OF WIRE BUNDLES. TlE-WRAPS SHALL NOT BE USED FOR THE PRIMARY SUPPORTING OR SECURING OF WIRING.STICK-ON/GLUE-ON WIRE RETAINERS ARE NOT ACCEPTABLE D.WIRING SHALL NOT BE SUPPORTED BY,OR ATTACHED TO.ANY OTHER HOSE, ELECTRICAL BUNDLES,ETC.THE WIRING/LOOM SUPPORTS SHALL PROVIDE AN INDEPENDENT SUPPORT E.PROVIDE GROMl'vlETS WHERE WIRE PASSES THROUGH COMPARTMENTS,FRAME MEMBERS,AND BULKHEADS F.PROVIDE POSITIVE PROTECTION OR METAL SHIELDlNG TO PRECLUDE THE CHAFFING OF WIRING AGAJNST FRAME MEMBERS,CHASSIS COMPONENTS,ENGINE EXHAUST COMPONENTS,BODY COMPONENTS,OR ADJACENT HOSES/LINES,ETC. TOWING ITEMS: 5 A.INSTALL ATTBC BUCK-PLATEAND PREMIER 2200 PINTLE HITCH B.INSTALL "GLAD HANDS" C.INSTALL (1)6 WAY ROUND TRAILER PLUG &(1)7 WAY RV STYLE PLUG WORK &SAFETY LIGHTS: A.INSTALL TWO WHELEN T'ANF85 45"TRAFFIC ADVISORS (I)FRONT OF BODY.ONE REAR OF BODY. B.INSTALL (5)WHELEN 600 SERIES FLUSH MOUNTED SCENE LIGHTS (2)ON THE CURBSIDE TOP CORNERS OF THE SUPERSTRUCTURE.(2)ON THE STREETS IDE TOP CORNERS OF THE SUPERSTRUCTURE AND ON THE STREETSIDE REAR OF THE SUPERSTRUCTURE. C.INSTALL (4)WHELEN 600 SERIES STROBES (2)ON THE CURBSIDE TOP CORNERS OF THE SUPERSTRUCTURE AND (2)ON THE STREETSroE TOP CORNERS OF THE SUPERSTRUCTURE.LIGHT TO BE CLOSE MOUNTED NEAR THE SCENE LIGHTS. D.INSTALL (2)GRILL [VIOUNTEDWHELEN L1NZ6 SERIES STROBES AT FRONT OF CHASSIS. E.INSTALL (I)WHELEN 600 SERIES LED STROBE TO BE INSTALLED AT THE REAR OF THE BODY ON STREETSIDE REAR PANEL. PAINT AND FINISH: A.ALL SURFACES TO BE ACro FICHED,CLEANED OF RUST,GREASE,OIL.DIRT. MILLSCALE,ETC.,PRIOR ro THE PRll'vIECOAT OF PAINT B.ALL EXTERIOR AND INTERIOR SURFACES COATED WITH MINIMUM TWO COATS OF METAL PRIMER C.BODY EXTERIOR PAINTED WITH MINIMUM TWO COATS PAINT TO MATCH CAB D.BODY COMPARTMENT INTERIORS PAINTED WHITE E.ALL INSTALLED SWITCHES AND/OR EQUIPMENT CONTROL(S),MUST BE PROPERLY LABELED AS TO FUNCTION AND CONDITION (I.E..ON,OFF.ETC.).ALL REQUIRED lDENTIFICA nON LABELS OR PLACARDS.INTERIOR OR EXTERIOR,TO BE PERMANENT NON-FADrNG (I.E.,ENGRAVED OR DIE-STAMPED)AND AFFIXED USlNG RIVETS.ADHESIVE LABELS,METAL OR PLASTIC,ARE NOT ACCEPTABLE F.ANY AND ALL BODY ATTACHMENTS SHALL BE INSTALLED USING A RUBBER GASKET MATERIAL AND ATTACHMENT CAULKED TO PREVENT WATER LEAKAGE. G.INSTALL CITY OF PALO A.LTO PROVIDED DECALS ADDITIONAL ITEMS FURNISHED WITH EACH UNIT: TRUCK MOUNTED POWER TAKE OFF DRIVEN AIR COMPRESSOR/GENERATOR/HYDRA ULIC SYSTEM MAKE/MODEL A.CURRENT MODEL SINGLE STAGE ROTARY SCREW VANAIR MODEL V3 175 UDEC UNDERBODY AIR COMPRESSORI7.2 KW GENERATORIIO GPM @ 2000PSI HYDRAULIC SYSTEM SHALL BE SUPPLIED AND INST'ALLED.SYSTEM SHALL DELIVER THE SPECIFIED VOLUME OF AIR,AC POWER AND HYDRAULIC FLOW TO THE END OF SPECIFICED OUTLETS.THE SYSTEM MUST RUN OFF (I)PTO OPENING AND MUST NOT UTILIZE ANY BELTS OR PULLEYS TN THE INTEGRATION OF THE AIR.AC GENERATING,AND HYDRAULIC SYSTEM.(NO EXCEPTIONS) DRIVE 6 A.THE SIDE-MOUNT HOT SHIFT CEHLSEA PT'O SHALL BE DESCRIBED IN THE MANUFACTURER'S CATALOG AS SUITABLE FOR HEAVY-DUTY CONTINUOUS OPERATION WITH A rORQUE RATING OF 125-FT/LBS:CAST IRON CASE ONLY HYDRAULIC CLUTCH PACK OPERATED,CONTINUOUS GEAR ENGAGEMENT SHIFTING TYPES UNACCEPTABLE B.MAXIMUM ENGINE SPEED AT 100 PSI TO BE WITHIN 1300-RPM PTO TO BE COMMENSURATE WlTH COMPRESSOR,SPEED AT ABOVE ENGINE SPEED C.1300 SERIES DRIVELlNE,FORGED STEEL FLANGES AND UNIVERSAL JOINTS SHALL BE OF STANDARD MANUFACTURE WITH SUFFICIENT TORQUE CAPACITY D.TOLERANCE BETWEEN FACE OF FLANGE ON COIVIPRESSOR SHALL NOT EXCEED ONE (1)DEGREE E.DRIVE SHAFT ANGLE SHALL NOT EXCEED SEVEN (7)DEGREES WORKING ANGLE F.DRlVELINE SET SCREWS TO BE SAFET'{WIRED ENGINE SPEED CONTROL A.VANAIR V-TEC SPEED CONTROL AND DIAGNOSTIC SYSTEM B.ENGINE AND TRANSTvllSSION TO BE REPROGRAMMED B)'DEALER TO MATCH COMPRESSOR REQUIREMENT'S TO PREVENT OPERATOR INPUT. COMPRESSOR OIL A.VANAIR AIR HEAD LUBRICANT. COMPRESSOR OIL COOLER VANAIR #6001-001 A.FACTORY SUPPLIED ELECTRICALLY DRIVEN FAN SYSTEM FOR COMPRESSOR OIL COOLING SYSTEM.FAN TO BE CYCLED B'{FACTORY THERMAL TEMPERATURE SWITCH B.UNIT TO BE MOUNTED AT REAR OF TRUCK C.ELECTRIC FAN:EXHAUST AIR ISNOT TO BE DEFLECTED TO REAR OF CHASSIS D,NO PORTION OF INSTALLATION TO REAR OF CAB SHALL EXTEND J'vl0RE THAN 2" ABOVE VEHICLE FRAME E.NO PORTION OF COOLER SHALL EXTEND BELOW DIFFERENTIAL F.NO ABS FORMED PLASTIC AIR RECEIVER &OlL SEPARATOR VANAIR #60004-001B A.VISUAL TYPE SIGHT GLASSES OR GAUGE INCORPORATED IN RECEIVER AND VISIBLE FROM CURBSIDE B.TANK TO BE POSITIONED FOR ACCESS TO OIL SEPARATOR WITHOUT REMOVING TANK FROM TRUCK C.DESIGNED SO THAT UNIT CAN BE MOUNTED BETWEEN RIGHT FRAME MEMBER AND RUNNING BOARD UNDER CAB WITH ACCESS TO OIL LEVEL GAUGE AND OIL FILL LUG ON CURB SIDE D.OIL FILL TO BE EXTENDED IF NECESSAR'{TO ALLOW OIL TO BE ADDED CONVENIENTL Y E.DRAIN VALVE REQUIRED ON TANK F.AIR RECEIVING TO BE ASME AND NArlON BOARD G.CONNECTED TO AIR RECEIVER AND LOCATED SO THAT VALVE CAN B.E CHECKED MANUALLY FROM CURB SIDE OF TRUCK H.REMOTE PULL CABLE TO SAFETY VALVE FOR TESTING OPERATION IS ACCEPTABLE 1.TO AUTOMATICALLY BLOW DON AIR SYSrEM WHEN AIR COMPRESSOR IS DISENGAGED OR STOPPED J.BLOW DOWN AIR IS TO BE DlRECTED DOWNWARD WITH NECESSARY PIPING K.'IANK TO HAVE BOLT ON LID WITH INTERNAL COALESCING ELEMENT 7 AIR FILTER A.COMPLETE WITH FACTORY ST.ANDARD DRY-TYPE AIR FILTER INCLUDING FITTINGS WITH CLAMPS FOR RELOCATING A[R FILTER ABOVE FLOOR OF BODY B.AIR FILTER PLATE THAT IS ATTACHED TO TilE A[R INTAKE TUBE OF COMPRESSOR MUST BE COMPLETELY SEALED OFF TO PREVENT DIRTY AIR B'{PASSING THE FILTER MINIMUM PRESSURE ORIFICE A.INCORPORATE AT DISCHARGE OF RECE[VER SYSTEM COMPRESSOR MOUNTING A.TO BE MOUNTED BACK OF CAB BETWEEN FRAlvlE iVfEMBERS B.NO PART OF COMPRESSOR ACCESSORIES TO EXTEND MORE THAN 2"ABOVE TRUCK FRAME OR 11"BELOW LOWEST POINT ON FRAI'vIECHANNELS HYDRAULIC COOLER LINES A.AEROQUIP FC-300 OR EQUAL B.MUST EXCEED SAE 100RS STANDARDS FLEXIBLE LINES A.AEROQUIP FC-300 REUSABLE ENDS B.SPEED CONTROLS LINES TO BE AEROQUIP #2807 (TEFLON)WITH REUSABLE END (NO SUBSTlTlJTE) C.A[R LINE TO SERVICE VALVES TO BE NOT LESS THAN I"ID WITH FLEXIBLE CONNECTION AT FORWARD END MADE OF AEROQUIP #FC300-20 HOSE (NO SUBSTITUTE)AND THE FOLLOWING FITTINGS PER INSTALLATION 2-EACH 411-20S HOSE ENDS,1 EACH 2024-20-203 COMP D.ALL HOSES ARE TO BE SECURED wrru RUBBER COATED STEEL CLAI'vIPS (PLASTIC TIES ARE NOT ACCEPTABLE COMPRESSOR PROTECTION A.COMPRESSOR MUST BE PROTECTED BY H[GH TEMPERAT'URE CUT-OFF SWITCH TESTED FOR PROPER OPERATION BEFORE DELIVERY OF COMPRESSOR B.THERMAL SWITCH MUST BE MURPHY SWITCH GAUGE 1/20-TO-300,15 FEET C.MUST INCLUDE A TEMPERATURE INDICATOR,NO LIGHTS D.THERMAL·SWTTCH MUST INCLUDE A RESET BUTTON E.THERMAL SWITCH SHUTDOWN TO BE WIRED TO PTO ELECTRONIC ENGAGEMENT SYSTEM.NOTTHE VEHICLE IGNITION SYSTEM F.TEMPERATURE GAUGE DIAL FOR SWITCH TO BE MOUNTED IN DASH ELECTRICAL WIRING A.ALL ELECTRICAL WIRING USED IN CONNECTION WITH COMPRESSOR MUST BE ADEQUATELY SECURED FOR PROTECTION OF WIRE (SCOTCH LOCK TYPE ELECTRICAL CONNECTORS ARE NOT ACCEPTABLE MISCELLANEOUS A.TO BE COMPLETE WITH ONE PART MANUAL AND ONE MAINTENANCE 1'v1ANUALPER UNIT B.OVERHAUL AND PARTS MANUAL FOR AIR END ASSEMBLE C.IF PARTS MANU/\LS DO NOT SHOW ALL PARTS USED,A SEPARATE LIST SHALL BE PROVIDED D.PARTS AND SERVICE MANUALS TO BE LEFT IN VEHICLES. 8 E.INSTALLATION OF COIV1PRESSOR AND NEe'ESSARY COMPONENTS MUST REFLECT GOOD WORKivlANSHIP F.IF THE COMPRESSOR IS INSTALLED BY OTHER THAN THE COMPRESSOR IVIANUFACTURER,THE WORK l'vlLJST BE PERFORMED BY FACTORY AUTHORIZED AND TRAINED INSTILLAT'ION CENTER G.VENDOR TO OPERATE UNIT FOR AT LEAST FOUR (4)HOURS H.AIR HOSE REEL TO BE HANNA v GH 1474 REVD WITH 12 VDC REWIND,4-WAY ROLLER GUIDE,100"X 3.;;"AIR HOSE BALL STOP AND THOR COUPLER INSTALLED IN CURBSlDE HO~ZONTALCOMPARTMENT. WARRANTY A.AS STIPULATED COMPRESSOR,PTO AND INSTALLATION TO BE WARRANTED AGAINST DEFLECTS IN IVIATI-:RIAL AND WORKMANSHIP FROM DATE VEHICLES PLACED IN SERVICE:AIR END 36 !V10NTHS ALL OTHER COMPONENTS 12 lVIONTHS B.WARRANTY TO COVER ALL PARTS AND LABOR C.INSTALLATION MUST BE PERFOIUvlED AT AUTHORIZED VANAIR SALES AND SERVICE CENTER TO MAINTAIN WARRANTY. GENERATOR (V3 SYSTEM GENERATED) A.7.2 KW GENERAl'OR CLOSE-COUPLED WITH THE AIR END ON THE VANAIR GENAIR SYSTEM WILL PROVIDE POWER TO THE OUTLETS AND AC POWER DELIVERY SYSTEM REFERENCED BELOW. B.GENERATOR ELECTRICAL CONNECTIONS TO BE'A WEATHERPROOF QUICK- DISCONNECT PIN ST',(LE C.REMOTE COVERED GFCI OUTLET '1'0 BE HARD-WIRED WITH ELECTRICAL CONDUIT (MIN,10AWG SIZE,OR AS DICTATED BY GENERATOR OUTPUT)TO REAR BODY SIDE PACK PANEL AND LEFT SIDE FIRST FRONT VERTICAL COf'vlPARTMENT MALE TllREE- PRONG PIGTAIL AT GENERATOR END OF TRUCK WIRING,FOR PLUGGING INTO GENERATOR GFCI OlrILEr.GFCl OUTLET TO BE PERMANENTL'y'LABELED WITH RECEPTACLE RATING HYDRAULIC SYSTEM (V3 SYSTEM GENERATED) 10 GPM,2000 PSI PTO DRIVEN HYDRAULIC TOOL SYSTEM HOSE SIZES A.SUCTION HOSES,WIRE BRAID 11/4"J[) 13.PRESSURE HOSES,WIRE BRAID I·S"ID C.RETURN HOSES.WIRE BRAtD /," ALL HOSES TO BE TWO (2)WIRE BRAID WITH A:1 TO I BURST SAFE'TY FACTOR COMPONENTS I.20 GALLON HYDRAULIC OIL RESERVOIR WITH FILLER BREATHER CAP,SIGHT LEVEL GAUGE INTERNAL BAFFLE AND RETURN DEFLECTOR 2.1-1/4"SHUT OFF VALVE 3.100-MESH WIRE SUCTION LINE STRAINER 5.HEDLAND 0-15 GALLON FLOW IVIETER 6.0-3000 PSI GLYCERIN FILLED PRESSURE GAUGE,STEM MOUNl'ED 7.FOUR (4)WAY SELECfOR VALVE WITH BUILT IN PRESSURE RELIEF.RELIEF 'TO BE ADJUSTABLE TO 2500 PSI AND SET AT 2200 PSI,VALVE TO BE OPEN CENTER SO PRESSURE CANNOT BE TRAPPED IN 'rOOL CIRCUIT AND H/\VI:DETENT IN CONTROL HANDLE ONE (I)PRESSURE PORT '1'0 BE PLUiVIBED TO QUICK COUPLER,AT FRONT OF UNIT AND ONE (1)PRESSURE PORT 1'0 BE PLLJ!VIBED TO QUICK COUPLER AT REAR OF UNI'r 9 S.FLUSH FACE HTMA INTERCHANGE HYDRAULIC COUPLERS,TWO (2)SETS,CONNECTED TO SWIVELS SO COUPLER WILL ROTATE 9.HYDRAUUC OIL COOLER TO KEEP OIL BETWEEN 90 DEGREES FAHRENHEIT AND 130 DEGREES FAHRENHEIT 10.10 MICRON RETURN LINE OIL FILTER.FILTER TO HAVE BUILT-IN BYPASS CONDITION GAUGE AND BE SPIN-ON REPLACEABLE TYPE I J.31,"SHUT·OFF VALVE 12.ADJUSTABLE FLOW CONTROL VALVE WITll RELIEF ALL PRESSURE FITTINGS TO BE STEEL AND HAVE 5-1 SAFETY FACTOR.ALL SUCTION OR RETURN FITTINGS TO BE EITHER STEEL OR BLACK IRON WITH A 5 TO 1 SAFETY FACTOR.NO GALVANIZED FITTINGS ARE TO BE lJSED ANYWHERE IN THE SYSTEM, SYSTEM TO BE PLUMBED AND INSTALLED SO BACK PRESSURE IS KEPT TO A MINIMUM.BACK PRESSllRE SHALL NOT EXCEED 250 PSI NO DEVIATIONS FROM THE SYSTEM WILL BE ALLOWED,SYSTEM TO BE FILLED WITH EP-32 HYDRAULl.C OIL AND TESTED.CONTROLS TO BE PLUMBED TO RIGHT REAR OF BODY.CONTROLS TO INCLlJDE FO(JR (4)WAl'SELECTOR VALVE,ADJUSTABLE FLOW CONTROL VALVE,FLOW METEI{PRESSURE GAllGE AND HTMA COlJJ>LERS. HYDRA.uue PIPE RACK ATTBCHPR2 12V HYDRAULIC PIPE RACK WITH 10001,B LIFT CAPACITY SEE VIDEO AT THE FOLLOWING URL FOR OPERATION PROFILE: http://youtu.be/_Le9ysOyOTS WELDER 10 PROVIDE AND INSTALL NEW [\10DEL LINCOLN VANTAGE 400 DIESEL WELDER RATED OlJrpUT: 400A/36V/100~o 450A/32V /1 OO'h, OUTPu'r RANGE: 14-36V CV 20-250A DC TIG 30-500A DC 40-300/\PIPE 90-450A GOUGE GENERATOR OUTPUT: 3-PH:19 KW PEAK,17 KW CONT.,I-PH:12 KW PEAK,II KW CONT. TYPE OF ENGINE: PERKINS 404D-22 EPA fIER 41 HP AND SPEED: 32.7@1800 CYLINDERS: 4 DIMENSIONS (H X W X D): 46.6 IN X 25.3 IN X 60 IN (1184 [\'IM X 6421V1M X 1524 MM) NET WEIGHT: 1230.000 (557.928 KG) 12V AWNING PROVIDE AND INSTALL 12V EXTEND/RETRACT SHADE AWNING ON nu:Sl'REETSIDE OF THE 132"REAR SECTION OF THE BOD')'rHE AWNING WILL BE SIZED TO WORK WITHOUT INTERFERING WITH THE FUNcrlON OF THE HOI}'!,. BACK-UP CAMERA PROVIDE AND INSTALL BACK-UP CAMERA WIll]DASH MOUNTED 5"COLOR DISPLAY INSTALLATION NOTE:THE TERM "INSTALLER"BELOW REFERS TO THE COMPANY/ENTITY INSTALLING THE COMPONENTS ON THE CHASSIS IF PRIME BIDDER IS NOT THE INSTALLER,THE PRIME BIDDER IS RESPONSIBLE FOR MAKING SURE THE INSTALLER COMPLIES WITH ALL TERMS BELOW.(NO EXCEPTIONS) INSTALLER MUST PROVIDE (4)REFERENCES (NAME,ORGANIZATION AND PHONE NUMBER), WHO HAVE TAKEN DELIVERY OF AN UNDERDECK COMPRESSOR/GENERATOR UNIT INSTALLED BY THE BIDDER IN THE PAST (5)YEARS (NO EXCEPTIONS) INSTALLER MUST BE A FACTORY AUTHORIZED SALES AND SERVICE CENTER FOR;VANAIR, AND LlFTMOORE.(NO EXCEPTIONS) INSTALLER,REGARDLESS OF THE LOCATION OF THEPRIME BIDDER,MUST BE LOCATED WITHIN 75 MILES OF THE CITY SAN JOSE.ALL ASPECTS OF THE INSTALLTION MUST TAKE PLACE AT SAID LOCATION. 11 INSTALLER MUST EITHER HAVE A PROFESSIONAL ENGINEER CERTIFIED BY THE CALIFORNIA BOARD OF PROFESSIONALENGINEERS ON STAFF THAT HAS REVIEWED AND APPROVED THE PROPOSED STRUCTURAL DESIGN AND LAYOUT OF ALL COMPONENTS,OR MUST HAVE A THIRD-PARTY CERTIFIED PROFESSIONAL ENGINEER REVIEW AND APPROVE THE PROPOSED STRUCTURAL DESIGN AN LAYOUT. SAID ENGINEER'S CONTACT INFORMATION MUST BE PROVIDED WITH BID RESPONSE THIS CONSIDERED TO BE A MATTER OF PUBLIC SAFETY,NO EXEPTIONS TO THIS PROVISION WILL BE PERMITTED. PRIME BIDDER MUST LIST NAME OF PROPOSED INSTALLER FOR REVIEW AND VERIFICATION AT TIME OF BID RESPONSE ENGINEERING DRAWINGS ARE TO BE SUBMITTED WITH BID RESPONSE.FAILURE TO SUBMIT COMPLETE ENGINEERING DRAWINGS UPON SUBMITTAL OF BID RESPONSE WILL DISQUALIFY RESPONDENT. END OF TECHNICAL SPECIFICATIONS REFERENCE DRA WINGS: accesshond!e "-_._,.- ,J,ccess step(eee detcll}·-~--*~=+--+I· ;'s'5'll~"<V~;;'i,,L.{;lJ.JS:Hf:LF CURBSIDE VIEW 12 (1)vtrec T~HP£RHDLDER__J (J)HTBC COIlEHfJLDE~: r,c,,;O:C:n4fUGiTLIN;::6(,~HIf:R'~TRDI£ STREETSIDE VIEW GROTE63951-5 1PlLLIANT 36 LED 'w'OWUGH 'lITH ,1OltH,----2 PERTRlCKATHe10PRO"lItE Ne,ll HDUt;T 500 "",IAnTELE-LlGHT \ "'-LED 4-[NCH LEn S:TDP,T~!L ~TIJRN C[.:MID LIGHT'.j;£ll:' c-WCHLEDHARKERUGHT(RD) REAR VIEW elf-IE AT rAellED rn.!\ILER bOLlYco ICRICANIF.Un:,-\NO I WRII"T'FN CONSENT) 13 490 Auto Center Drive,Watsonville,CA 95076 (855)289·6572·(855)BUY·NJPA·(831)480·8497 Fax FI eet@NationaIAutoFleetGroup.com 611/2015 Mr.Bryan Haggans City of Palo Alto 3201 East Bayshore Road Palo Alto,CA 94303 Dear Bryan Haggans, National Auto Fleet Group is pleased to quote the following vehicleis)for your consideration. One (1)New/Unused (2016 Peterbilt 337 Extended Cab Chassis with AT&TB Maintenance,Construction Service Body with Plastic Real Assembly Included)delivered to your department yard by Mr.Marsh with A.'I'&TR each for (l)One Unit Sub Total s 212270.00 18,573.63Tax(S.75%)s Total $230.843 -per the attached specifications. This vehicle(s)is available under the National Joint Powers Alliance Bid Number 102811. Please reference this Bid Number on all Purchase Orders. Thank you in advance for your consideration.Should you have any questions,please do not hesitate to call. Sincerely, ~~ Jesse Cooper National Fleet Manager Office (855)289-6572 Fax (831)4S0-8497 '&/2$&dnlll ®TOYOTA Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: Printed: Effective Date: Prepared by: , Phone: Fax: Contact Email: Prepared for: Horizontal Dimensions Model.Mod8!.33} QuoteiOTPO/CQ Numher Q?1.11~_:·281; r--106,0'-"-"'--I';I~":_'"'---2220 ,..,-,.,-..-.."'='ll •.--,212,7 ,"""" I r.~~rli ['I.IC---~Fr·"III'~;I Ii' i~.<;~~=~~.'\j-lUI;i •.~:I I 2.04.1.u,....,~'JT'• !362 I i,38.2 ""'b'J8""",.....,.,...,1402""""'''''''·.J.,"81~J'.,ii "',..,2100 ....,''''~I~-·---··--··-·-·-··--·-··-··---····-·-···..,.__."3'2~111-..-..-..-----.~-__..__. f.;_.__••..•:330.0 -... Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. 5!15/2015 9:20:47 AM Jan 1,2015 10:jimanderson Complete Model 337 021415286 30,22 Model Number: Ouote/OTPO!CO: Version Number: 642S2-FAFC-OS17 Page I of 1 Kansas City Peterbilt K150 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: Phone: Fax: Contact Email: Prepared for: Fuel Tanks Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 1i:04:53 AM Jan 1,2015 ID:jirnenderson Complete Model Number: Ouote/DTPO!CO: version Number: Model 337 060515474 30,22 Page 1 of 1 Kansas City Peterbilt K150 8915 Woodend Road Kansas City,Kansas United States 661i1Phone:(913)441-2888Fax: Email: City of Palo Alto , Phone: Fax: Contact Email: Prepared for: Vehicle Summary Unit Model: Type: Description: Model 337 Full Truck Crew Truck Application Intended Serv.: Commodity:City Delivery Other Commodity Body Type: Length (ft): Height (tt): Max Laden Weight (Ibs): Platform w/Devices 14 13.5 1000 Trailer No.of Trailer Axles: Type: Length (ft): Height (ttl: Kingpin Inset (in): Corner Radius (in): Restrictions Length (tt): Width (in): Height (ft): Approved by: Chassis o Fr Axle Load (Ibs): Rr Axie Load (Ibs) G.C.w, Road Conditions: Class A (Highway) Class B (Hwy/Mtn) Class C (Off-Hwy) Class D (Off-Road) Maximum Grade: Wheelbase (in): Overhang (in): Fr Axle to BOC (in): Cab to Axle (in): Cab to EOF (in): Overall Comb,Length lin\'\r : 100ooo 6 210 81,79999 69,8 140,2 222,0 3i3 12000 20000 60000 o 0,0 oo Special Req. United States Registry 40 102 13.5 Date: Note:All sales are F.O.B.designated plant of manufacture. Ask your dealer for a quote today,or visit our website @ www.paccarfinancial.com. PACCAR Financial offers innovative finance,lease and insurance programs customized to meet your needs.FINANCIAL Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 AM Jan 1 2015 !D:jimanderson 68129-1 OA21-0 120 Complete Model Number: Ouote/DTPO/CO: Version Number' Model 337 060515474 30.22 Page J of 10 Kansas City Peterbilt K1S0 8915 Woodend Road City of Palo Alto Kansas City,Kansas United States 66111 Phone:(913)441-2888 Fax: Email: , Phone: Fax: Contact Email: Prepared for: Description Base Model Model 337 Other Commodity City Delivery Truck or tractor which hauls freight,typically operating within a tno-mue radius,on public streets and highways and other paved surfaces.Typically Includes package and freight delivery. Platform w/Devices United States Registry Configuration Not Applicable Secondary Manufacturer Frame &Equipment 10-S/8in Steel Rails 326-384 in 10,625 x 3.45 x .313 Dimension,1,776,000 RBM;Yield Strength 120,000 psi.Section Modulus 14.8 cubic inches.Weight 1.44 los/inch pair Custom Wheelbase or Overhang Engineering approval may be required. EOF Square without Xmbr For use with body builder installed crossmember. Omit Rear Mudflaps and Hangers Front Axle &Equipment Dana Spicer E12021 12,000 Ib 35"drop.Factory front axle alignment to improve handling &reduce tire wear.Zerk fittings on lie rod ends,king pins,&draglink ball joints for ease of maintenance &help extend service life of components.Cognis EMGARD®FE75W-90 synthetic axle iube provides over 1%fuel economy improvement.Reduces wear &extends maintenance intervals,resulting in increased uptime.Provides improved fluid flow to protect components in extreme cold conditions &withstand the stress from !ligh temperatures, extending component life Taper Leaf Springs,Shocks 12,000 Ib Power Steering Sheppard HD94 For use with 10,000 to 13,200 lb.axle ratings. Weight 10,215 o o o o o 400 o o o o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5!15/2015 10:25:08 ,I\,M Jan 1,2015 ID:jimanderson Complete Model Number: OuotefDTPOiCO: Version Number: 68129-IOA21-0120 Model 337 060515474 30.22 Page 2 of 10 Description Power Steering Reservoir Frame Mounted PHP10 Aluminum LMS Hubs 11-1/4"bolt circle.Includes a supplier extended coverage up to 3 years 1 350,000 miles for bearings &seals. Dana Spicer Wide Track IPO Std,Front Axle 71in KPIIPO 69in for E1202,E1322,E1462,D2000F front axles For improved tuming radius. Bendix Air Cam Front Drum Brakes 16.5x5 For use with 10,000 lbs to 14,600 Ibs steer axles.Includes automatic slack adjusters &outboard mounted brake drums. Dust Shields,CAM And Air Disc Brakes,Front Axle Rear Axle &Equipment Dana Spicer P20060S 20,000 Ib PHP10 Iron LMS Hubs 11-1/4"bolt circle.Includes a supplier extended coverage up to 3 years / 350,000 miles for bearings &seals. Parking Brakes (Axle Package) Dust Shields For Cam Brakes,Drive Axle(s) Diff Lock Rear-Rear Or Single Drive Axle (Air Rocker Switch occupies the space of one gauge) Rear Brake Camshaft Reinforcement Gusseted Cam Brackets,Drive Axle(s) SBM Valve Full trucks require a spring brake modulation (SBM)system for emergency braking application.This system requires an SBM valve and a relay valve with spring brakes on the rear axles.The SBM valve allows the foot valve to operate the rear axle spring brakes If a failure exists in the rear air system. Upsize Parking Brakes Stability System Not Selected or Not Available Single Drive Axle (Model 337) Anti-Lock Braking System (ABS)4S4M ABS-6.Includes air braking system. Bendix Air Cam Rear Drum Brakes 16.5x7 Inc automatic slack adjusters &outboard mounted brake drums. Ratio 6.17 Rear Axle Peterbilt Low Air Leaf 21,000 Ib,Light Weight Engine &Equipment Weight o o 5 o 4 o o o 15 24 9 2 o o o o o o o 73 Unpublishedoptions mayrequirereview/approval.Dimensionalandperformancedata for unpublished options mayvary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15201510:25:08.AM Jan 1.20,5 ID:jirnanderson Complete Model Number: Ouote/DTPO!CO: Version Number: 68129-1 OA21-0 120 Model 337 060515474 3022 Page 3 of 10 Description PACCAR PX-9 300@2000 GOV@2200 860@1300 (2013 Emissions)Includes alum flywheel housing,cruise control,and J1939 provisions (provides an interface point for the Electronic Service Analysis-ESA and other PACCAR approved diagnostic tools).Chevron Delo LE SAE 10W30 engine oil is specially formulated for new low emissions engines.Maqnetic engine oil drain plug captures and holds any metal fragments In engine oil to extend service life. N21320 N205 i20 ..Standard Maximum Speed Limit [LSLj N21330 N207 O....Expiration Distance N21340 P005 120 .Hard Maximum Speed Limit N2i350 POOi 64 Maximum Accelerator Pedal Vehicle Speed N2i360 Pii0 O Accelerator Lower Droop N21370 P059 64 Maximum Cruise Speed N21380 P111 O Cruise Control Lower Droop N21400 N203 252 ..Reserve Speed Function Reset Distance N21410 N202 O Maximum Cycle Distance N21420 N206 1O Maximum Active Distance N21430 N20i 0 Reserve Speed Limit Offset N21440 POi5 No..Engine Protection Shutdown N21450 P026 NO...Gear Down Protection N21460 P046 i400.Max PTO Speed N2i470 P062 No Cruise Control Auto Resume N21480 P068 NO Auto Engine Brake in Cruise N21500 N209 O Expiration Distance N21510 P520 Yes..Enable Idle Shutdown Park Brake Set N21520 P030 5....Timer Setting N21530 P233 Yes..Enable Impending Shutdown Warning N21540 P234 60 Timer For Impending Shutdown Warning N21550 P516 35 Engine Load Threshold N21570 P031 No ldle Shutdown Manual Overrule N2i590 P230 Yes..Enable Hot Ambient Automatic Overrule N2i6i0 P172 40 Low Ambient Temperature Threshold N21620 P173 60 lntermediate Ambient Temperature Threshold N21630 P171 80 High Ambient Temperature Threshold Engine Idle Shutdown Timer Enabled Enable EIST Ambient Temp Overrule Eft EIST NA Expiration Miles Effective VSL Setting NA CARB Engine Idling Compliance PACCAR PX-7,PX-9 and MX,Cummins ISL,ISM and ISX diesel engines will include the required factory installed serialized sticker on the drivers door to identify them as meeting the NOx idling standard. PACCAR 160 Amp Alternator,Brushed PACCAR 12V Starter 2 PACCAR Premium 12V Starting Batteries 2000 CCA Threaded stud type terminal.Stranded copper battery cables are double aught (00)or larger to reduce resistance. Battery Jumper Terminal Mounted Under Hood LH Frame Rail.Not available with PX-7 engines. Weight o o o o o o o o -4 4 Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 68129-IOA21-0120 5/15/2015 10:25:08 AM Jan 1.2015 ID:jimanderson Complete Model Number: Ouote!DTPO/CO Version Number: Model 337 060515474 30.22 Page 4 of 10 Description OM Advantage ON/OFF Fan Clutch 18.7 CFM Air Compressor Furnished on engine,Teflon lined stainless steel braided compressor discharge line, C-Brake By Jacobs,PX-9 Spin-On Fuel Filter/Water Separator,12V Heated Frame Mounted.In addition to the fuel filter supplied with the engine. Includes fuel water separator on Models 330,337,and 348. Engine Protection Shutdown Includes oil pressure.oil temperature,coolant temperature,and intake manifold temperature. High Efficiency Cooling System Silicone radiator &heater hoses enhance value,durability,&reliability. Constant tension band clamps reduce leaks.ClimaTech extended life coolant extends maintenance intervals which reduces maintenance costs. Anti-freeze effective to ·30 degrees F helps protect the engine.Low coolant level sensor warns of low coolant condition to prevent engine damage.Radiator Size by Model 587 1330 sq in.579/367 FEPTO 1325 sq in,567/365/367 1440 sq in.384/386:1301 sq in,382/365 FEPTO: 1184 sq in,389/367 HH 1669 sq in.348:1000 sq in. Radial Seal,Dry Type Air Cleaner,Frontal Air Intake.Molded rubber air intake connections with lined stainless steel clamps seal to prevent contaminants in air intake. Exhaust Single Horizontal DPF/SCR RH under cab.Includes cab entry RH under cab. Transmission &EquipmentAllison 3000 RDS-PTransmission,Gen 5 Rugged Duty Series.Includes Rear Transmission Support.TranSynd Automatic Transmission Fluid,and Water Oil Heat Exchange.Also includes features that monitor the transmission fluid.filter and clutch condition.Will display percent life remaining for the transmission fluid.filter and clutches on the shift selector.This information may be displayed using the Mode and Up and Down buttons A wrench icon will also be included to indicate when the transmission fluid.filter or clutches need servicing. (Suited for vehicles operating on/off highway and/or requiring PTO operation) 1710HD Driveline,2 Midship Bearings (1)Dash Mounted Single Acting Air PTO Control Standard with PTO engaged indicator ligllt on Class 8 units.Occupies the space of one gauge. LH PTO Access Dipstick Tube Routing,Allison Trans Allison FuelSense Not Desired Allison 6-Speed Configuration,Close Ratio Gears 3000 Series Transmissions Dash Mounted Push Button Shifter Weight o o 90 o o o o -31 110 100 o o o o o Unpublishedoptions mayrequire review/approval.Dimensionalandperformancedata for unpublished options mayvary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15;201510:25:08 AM Jan 1.2015 10:jimanderson Complete Model Number: Ouote/DTPO!CO: Version Number: 68129-IOA21-0120 Model 337 060515474 3022 Page 5 of 10 Description Air &Trailer Equipment Bendix AD-IS EP Air Dryer with Heater Extended Purge (for use with higher air consumption applications).An integrated system air dryer that Incorporates the functions of the air dryer. purge reservoir (which Increases tile drying capacity),wet air tank, pressure relief valve.single check valves,and pressure protection valve for air susp and other ali accessories.Includes easy-to-service spin-on dessicant cartridge. Berg Pull Cord Drain Valve(s)-All Air Tanks Nylon Chassis Hose Steel Painted Air Tanks All air tanks are steel with painted finish except when Code 4543330 Polish Aluminum Air Tanks is also selected (then exposed air tanks outside the frame rails will be polished aluminum).Peterbilt will determine the optimal size and location of required air tanks.Narratives requesting a specific air tank Size or location will not be accepted for factory installation. See ECAT to determine number or location of air tanks installed. Body Connections 5ft BOC Junction Box contains light and power circuits for Body Connections located 5ft from BOC. A&E Conn EOFw/7-way Socket (w/Conn EOF Strapped to tile rail) Tires &Wheels FF:GY 14ply 295/75R22.5 G661 HSA Diameter =40.6 inches SLR =19.0 inches.Compares to Michelin XZE2 and Bridgestone R260F tread. RR:GY 14ply 295/7SR22.5 GS72ALHD Fuel Max;Diameter =41.1 inches;SLR ""19.3 inches Code-rear Tire Oty 04 FF:Accur su Armor S0344PK22.5XB.25 Heavy duty,5 Hand Holes RR:Accur Steel Armor 504B7PK22.5XB.25 PHP10-5 hand holesCode-rear Rim Oty 04 Accuride Grey Wheels IPOWhite Fuel Tanks 26in Aluminum SOGallon Fuel Tank LH U/C Includes steps for cab access.Paddle handle filler cap with threadless filler neck.Top draw fuel plumbing reduces chance of introducing air into the fuel system durinq low fuel level conditions due to the central placement of fuel pickup tube.Wire braid fuel lines increase durability & reduce potential for leaks. Location LH U/C 50 Gallon DEFTank Mounted LH Under Cab Standard DEFTo Fuel Ratio 2:1 Or Greater f •• Weight 39 o o o 4 15 14 60 o 22 -8 oo -119 o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/2015 10:25:08 AM Jan 1.2015 iD:jimanderson Complete Model Number: Ouote/DTPO!CO: Version Number: 68129-I{)A21-0 120 Model 337 060515474 30.22 Page 6 of 10 Description DEF Tank Small Battery Box &Bumper Install Batteries On Temp Plywood Support BOC Includes maximum length battery cables a!lowable per engine manufacture requirements.Recommend three or more batteries for Class 8. Aftertreatment RH U/C Alum Non-Slip Cab Entry Step.DPF/SCR for diesel engines,catalyst for natural gas engines.On Models 579 specifying chassis fairings,the box will be aerodynamic. Steel Styled Aero Bumper Painted Different Color Than cab or nooo,2 tow pins. Cab &Equipment Alum Cab 108in BBC Metton Hood w/Bright Crown Includes view window RH door and convex mirror over RH door. Severe Service Cab Package #1 Includes Aluminum side skins,aluminum rear skin,steel windshield mask, steel firewall,and steel front floor sheet on all cabs,and additional reinforcement structure on the back wall of the day cab. Thermal Insulation Package in Cab Includes thick,closed-cell foam in floor.special mylar-faced foam in walls and roof structure. 10 Inch Extension for Ultra Day Cab Add additional 10"to tile loadspace olrnenslon-refer to the horizontal dimension workscreen. Peterbilt UltraRide Driver Seat Peterbilt UltraRide Passenger Seat Drivers Armrest -RH Only Required in Model 587 with Evolution LX seats.Optional with Evolution ST and Rolltek Seats. Air Ride Driver High Back Driver Vinyl Driver Air Ride Passenger High Back Passenger Vinyl Passenger Adjustable Steering Column -Tilt/Telescope Steering Wheel with Peterbilt Logo Steering Wheel with embossed Peterbilt logo over horn button. (~ Weight o -97 o o o 39 2 163 o o 2 o o o o o o 11 o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5!15/2015 10:25:08 AM Jan 1.2015 iD:jrnanderson Complete Model Number: Ouote/DTPO!CO: Version Number: 68129-IOA21-0120 Model 337 060515474 3022 Page 7 of 10 Description Interior Grey/Black Includes rugged charcoal instrument panels,glare-resistant gray dash, black bezels on gauges,(2)power ports,monochromatic molded door pads with durable in-mold color,gray molded back wall,18 inch 4-spoke soft-touch steering wheel,soft-touch steering column cover,power lift passenger window.extruded rubber floor covering,header-mounted dome light,foot well lighting,integrated "dead pedal",(4)inside entry grab handles,(2)inside sunvisors,(2)coat hooks,(2)cup holders and map bin in dash. Dark Window Tint ipo STD Tint -Day Cab Day Cab Rear Window One Piece Curved Windshield Combo Fresh Air Heater/Air Conditioner With radiator mounted condenser,dedicated side window defrosters,Bi- Level Heater/Defroster Controls,54,500 BTU/HR,and silicone heater hoses. Outside Sunvisor -Stainless Steel Available for Day Cab and Low Roof Sleeper Stainless Steel Mirrors 7x16 with Heat Element (2)Convex 8 Inch SS Mirror Center mounted under mirror bracket.If rear view mirrors are heated,the convex mirrors will be heated.Option includes dual door stops. Mirror Aux RH Fender/Hood (2 legs on fender and 1 leg on hood) Mirror Aux LH Fender/Hood (2 legs on fender and 1 leg on hood) Power Package Includes power door locks and power windows. (1)Air Horn 24.5in Chrome -Round w/Horn Shield Standard Speaker Package For Cab (2)Speakers ConcertClass Without CD,Includes BT Phone and Audio,AM/FM.WB,USB and MP3. Radio Antenna Mounted Logger Style Antenna Mounted LH on BOC In Place of Center Roof position on Conventional Models. Models 579 and 567 Antenna Mounted LH Roof In Place Of Center Roof position. Plug-In Auto Reset Circuit Breaker in place of fuses in junction box. Peterbilt Electric Windshield Wipers With Intermittent Feature. Weight o o o o o 4 2 4 4 4 o 8 4 10 o o o Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 68129-IOA21-0120 5/15/2015 10:25:08 AM jan 1 2015 ID:jimanderson Complete Model Number: Quote/DTPO!CO: Version Number: Model 337 Q60515474 30.22 Page 8 of 10 Description Cab Mate Cab Air Suspension Mfg by Link.The class 8 conventionals (except Model 348)includes (2) airbags,(2)shock absorbers,(1)leveling valve,radius rod,and height limiter.The Models 330,337,and 348 includes (1)airbag and (1)shock absorber. Triangle Reflector Kit Shipped Loose 5 Ib 3A:40bc Fire Extinguisher Cab Mounted Air Restriction Indicator Mounted on air cleaner or intake piping. Main Instrumentation Panel,Graphics Display Includes speedometer with tripodometer,tachometer with hourmeter and outside air temperature display,voltmeter,engine oil pressure,engine coolant temperature,fuel level,primary and secondary air pressure gauges.Includes standard warning light package:high water temperature,low oil pressure,and low air pressure warning lights w/audibie alarms,high beam,turn signal,low fuel,parking brake,and ice warning indicators;seat belt reminder;rocker switches with long-life LED indicators;multi-function turn stalk with flash-to-pass feature (night mode flashes headlights and marker lights;day mode flashes headlights only), intermittent windshield wiper and headlamp beam control.Hydraulic braked trucks do not include air pressure gauges. Headlights Composite Fender Mounted Integral Park,Turn,and Side Marker (5)Marker Lights,Aero LED Light Emitting Diodes (2)Peterbilt Fog Lights Recessed in bumper Daytime Running Lights (Required on Canadian units) (2)Addl Dome/Reading Lights,Ceiling Mounted Paint Bumper Painted Separate Color Than Hood (1)Color Axalta Two Stage -Cab/Hood Base Coat/Clear Coat N85020 A -L0006EB WHITE -Stand N85040 B L5927EB ARGENT GRAY E N85400 HOOD TOP L0006EB WHITE -Stand N85500 CAB ROOF L0006EB WHITE -Stand N85200 FRAME N0001 EA BLACK N85700 BUMPER L5927EB ARGENT GRAY E N85300 FENDER L0006EB WHITE -Stand Axalta Two Stage Effect -Metallic/Pearl Cab/Hood &Sleeper Only Shipping Destination Weight 15 13 8 o o o o 6 o o o o o Unpublished options mayrequire review/approval,Dimensionaland performancedatafor unpublishedoptions mayvary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15/201510:25:08 AM Jan ,20,5 10:jimanderson Complete Model Number: Ouote/DTPO/CO Version Number: 68129-IOA21-0120 Model337 060515474 30.22 Page 9 of 10 Options Not Subject To Discount Medium Duty Emissions Surcharge POI At Excellence Peterbilt Location Vehicle Layout Option is not subject to discount.Fleets wi!!be split prior to build so that the charge is applied to only one unit.Quotes will not reflect this. o o o e. Description Weight oShippingDestination (Specify by narrative) N89900 American Truck &Trailer Body Co.,Inc. Miscellaneous Presentation Created Using Featured Spec For Model o Total Weight 11245 Prices and Specifications Subject to Change Without Notice. Unpublished options may require review/approval. Dimensional and performance data for unpublished options may vary from that displayed in PROSPECTOR. Printed: Effective Date: Prepared by: 5/15.2015 1025:08 AM Jan 1,2015 10:[imanderson Complete Model Number: Ouote!DTPOfCO Version Number' Model 337 060515474 30.22 68129-1 OA2J -0120 Page 10 of 10 CITY OF PALO ALTO NJPA CONTRACT PACKAGE HEAVY CREW TRUCK BODY FOR MAINTENANCE,CONSTRUCTION AND SERVICE -GAS,WATER,WASTE WATER PROVfDE AND INSTALL THE FOLLOWING LINE BODY AND ASSOCIATED EQUIPMENT IN ACCORDANCE WITH THE FOLLOWING SPECIFICATIONS ON A CITY SUPPLIED CHASSIS- CAB.THE CHASSIS SHALL BE A TWO (2)AXLE,26,000.00-35,000 GVWR CLASS VI or VII CHASSIS WITH 128"CA,CLEAN.CHASSIS MUST BE EQUIPPED WITH AN ALLISON 2000 OR HIGHER SERIES AUTOMATIC TRANSMISSION. BODY TO BE AN AMERICAN TRUCK AND TRAILER BODY COMPANY HCPAI SERIES BODY WITH THE BELOW LISTED /\CCESSORIES -(NO EXCEPTIONS) ALL ITEMS FURNISHED PER THIS SPECIFICATIONS SHALL COMPLY WITH ALL APPLICABLE FEDERAL AND CALIFORNIA STATE LAWS,CODES AND REQUIREMENTS AS OF THE DATE or SALE. MAIN BODY DETAILS: A.RIGHT SIDE FRONT VERTICAL COMPARTMENT I.APPROXIMATE INSIDE DIMENSIONS 40"W X 70"11X 24"D 2.COMPARTMENT TO HAVE A THRU-SECTION FOR LONG STORAGE 3.(I)ADJUSTABLE SHELF WITH ADJUSTABLE DIVIDERS 4.(1)GrCI OUTLET LOCATED ABOVE THRU SECTION 5.ROM ROLL-UP DOOR 6.TOP SECTION,ABOVE COMPARTMENT TO HOUSE COMPRESSOR COOLER AND AIR INTAKE B.RIGHT SIDE SECOND VERTICAL COMPARTMENT I.APPROXIMATE INSIDE DIMENSIONS 30"W X 70"H X 24"D 2.COMPARTMENT ro HAVE (3)ATTBC THO]TOOL HOLDERS 3.(1)ADJUSTABLE SHELF WITH ADJUSTABLE DIVIDERS 4.ROM ROLL-UP DOOR 5.COMPARTMENT FLOOR TO BE REINFORCED TO HOLD THE WEIGHT OF THE TOOL HOLDERS. C.RIGHT SIDE THIRD VERTICAL CO]\'lPARTMENT I.APPROXIl'v'l.ATE INSIDE DIMENSIONS 24"W X 70"!I X 24"D 2.TOP SECTION TO HA VE (1)ADJUSTABLE SHELF ABOVE DRAWER SET WITH ADJUSTABLE DIVlDERS 3.COMPARTMENT TO HAVE A ilEA VY DUTY DRA WER SET WITH (5)5"DRAWERS 4.ROM ROLL-UP DOOR 5.COMPARTMENT TO HAVE (I)GFCI OUTLET ABOVE DRA WER SET D.RIGHT HORIZONTAL COi\lPARTMENT OVER REAR AXEL TO REAR PANEL 1.APPROXIMATE INSIDE DIMENSIONS 52"LX 41"H X 24"D 2.ROM ROLL-UP DOOR 3.HANNAY 100'12V ELECTRIC REWIND ~:;"AIR HOSE REEL. 4.REELCRAFT SPRING REWIND HOSE REEL TO HAVE 50'OF 3/8"AIR HOSE FOR SMALL TOOLS 5.REELCRAFT SPRING REWIND HOSE REEL WITH DUAL (P/R)HOSE TO HA VE 50'OF 3/8"PRESSURE AND RETURN HYDRAULIC HOSE WITH QUICK DISCONNECT COUPLERS. Eo RIGHTSIDE REAR VERTICAL COMPARTMENT APPROXIMATE INSIDE DIMENSIONS 26"W X 70"II X 24"D 2.COMPARTMENT TO HAVE (4)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS 3.ROM ROLL-UP DOOR F.LEFT SIDE FRONT VERTICAL COMPARTMENT (WITH WELDER PLATFORM) 1.APPROXIMATE INSIDE CLEAR DJI'vlENSIONS 40"W X 34"H X 24"D 2.BARN STYLE DOOR WITH 3 POINT PADDLE LATCH,TOP SECTION OF THE COMPARTMENT ro BE A THRU-SECTION. 3.SECTION ABOVE BARN DOOR COMPARTMENT TO HAVE A 40"W X 70"D WELDER PLATFORM FOR LINCOLN 400 SERIES DIESEL WELDER. G.LEFT SIDE SECOND VERTICAL COMPARTMENT 1.APPROXIMATE INSIDE CLEAR DIMENSIONS 30"W X 70"H X 24"D 2.ROM ROLL-UP DOOR 3.COMPARTMENT TO HAVE (3)THREE ADJUST'ABLE SHELVES WITH ADJUSTABLE DIVIDERS 4.COMPARTMENT TO HA VE (I)GFCI OUTLET AT MID POINT LEFT H.LEFT HORIZONTAL COMPARTMENT I.APPROXIMATE INSIDE CLEAR DIIVIENSIONS 52"LX 41"H X 24"D 2.ROM ROLL-UP DOOR 3.COMPARTMENT TO HAVE THREE (2)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS. 4.ADJUSTABLE DIVIDERS IN BOTTOM OF COMPARTIVIENT 2 J.LEFT SIDE REAR VERTICAL COMPARTMENT I.APPROXIMATE INSIDE CLEAR DlMENSIONS 26"W X 70"H X 24"D 2.COMPARTMENT TO HAVE (3)ADJUSTABLE SHELVES WITH ADJUSTABLE DIVIDERS 3.ROM ROLL-UP DOOR I.ALL COMPARTMENTS TO HAVE LED INTERIOR "ROPE"LIGHTS.LIGHTS TO HAVE AN ON/OFF SWITCH IN CAB. K.MISC. 2.ALL COMPARTMENTS TO BE WATERTIGHT WITH A DRAIN HOLE IN THE BOTTOM WITH A REMOVABLE PLUG BED AREA DET AILS: A.SUPERSTRUCTURE I.DIMENSIONS 31"H X 132"L X 95"W (CURBSIDE TO BE TAPERED TO ACCOMMODATE REFERENCED HYDRAULIC PIPE RACK ....SEE REFERENCE DRAWINGS). 2.TWO (2)EQUAL SPACED MATERIAL SHELVES EACH SIDE,ABOVE SIDE OF BODY 132"LONG.SHELVES TO BE VERTICALLY SUPPORTED FROM ROOF TO SIDE RACKS AND HAVE INTERIOR ACCESS.SHELVES BOTH SIDES TO HAVE INTERIOR UPWARD RETURN TO KEEP ITEMS FROM FALLING INTO BED AREA 3.REAR TO HAVE A ROLL-UP GARAGE STYLE DOOR 4.ROOF TO HAVE (2)STREETSIDE AIVIBIENTLIGHT WINDOWS. B.MISC. 1.REAR TO HA VE 6"HIGH REMOVABLE WOOD TAIL BOARD 2.E-TRACK TO BE INSTALLED ON EXPOSED BED INTERIOR WALLS. 3.LEFT REAR SECTION OF BED AREA TO HAVE PLASTIC PIPE REEL INSTAlLED AGAIST BED WALL PAYING-OUT TO THE REAR. 4.ROOF HAVE TWO (2)DOI\IE LIGHTS WITH SWITCHES TO BE WIRED TO MASTER COMPARTMENT LlGHT SWITCH IN CAB 5.FURNISH AND INSTALL TRAFFIC CONTROL ARROW STICK AT REAR OF BODY 6.FURNISH AND INSTALL ATTBC ROTA T1NG TAMPER HOLDER ON FRONT OF CHASSIS 7.FURNISH AND INSTALL ATTBC TILT-DOWN FRONT MOUNTED CONE HOLDER 8.BED AREA TO BE BLACK NON-SKID PAINTED/COATED REAR PLATFORM DETAILS: PLA TFORM DECK TO EXTEND 24"AFT OF CO]\lPARTMENT SIDE RACKS AND BE 95"WIDE A.PLATFORM TO BE 3/16"DIAMOND PLATE AND PAINTED WITI!BLACK NON-SKlD PAINT/COATING B.LEFT SIDE OF PLATFORIVI C.UNITS STOP,TAIL,DIRECTIONAL,BACK-UP AND MARKER LIGHTS FOR THE REAR OF VEHICLE TO BE LED D.LEFT REAR OF PLATFOIUvl TO HAVE ACCESS STEPS WITH:HAND RAIL. E.FLUSH MOUNTED IN REAR PLATFORM ALL LIGHTS TO BE LED AND HAVE BACK PROTECTION. F.RIGHT REAR CORNER OF PLATFORIVITO BE REINFORCED FOR VISE MOUNTING, WITH FRONT SUPPORT G.TWO (2)120 VAC DUAL RECEPTACLE GFCI PROTECTED OUTLETS SHALL BE INSTALLED.ONE (I)ON RIGHT SIDE RECESSED AND ONE (I)ON LEFT SlDE. H.(1)500 Wxrr TELE-LIGHT WITI-[TRI-POD TO BE INSTALLED AT SS REAR OF PLATFORM LINE CONSTRUCTION BODY GENERAL DETAILS: A.MINIMUM 14-GAGE GALVANNEAL STEEL.OR AS SPECIFIED,ELECTRICALLY WELDED B.ALL EDGES,lNSlDE AND OUTSIDE,GROUND SMOOTH,AND ALL EXPOSED EDGES HEMMED C.ROM ROLL-UP DOORS TO BE KEYED ALIKE. D.ALL ATTACHING HARDWARE TO INCORPORATE ELASTIC SELF-LOCKING NUTS,OR EITHER A LOCK WASHER OR STAR WASHER AT THE M.lNIMUM.PLAIN WASHERS TO BE INCORPORATED UNDER THE I-IEADOF HEX-HEAD BOLTS E.COAT ENTIRE UNDERSIDE OF BOD'{(FLOOR,WHEEL WELLS,COMPARTMENTS) WITH UNDERSEAL F.PROVIDE OFFSET FOR SPRING HANGERS BASED ON CHASSIS-CAB SPECIFICATIONS G.REAR WHEEL CUTOUTS MUST ALLOW SUFFICIENT ROOM FOR TIRES MINIMlJM 6" H.PROVIDE REAR WHEEL SPLASHGUARDS AS REQUIRED PER SAE .1682,OR AS SPECIFIED OTHERWISE.SPLASHGUARDS TO BE INSTALLED IMMEDIATELY BEHIND REAR AXLE I.BODY TO BE ATTACHED TO CHASSIS USING MINiMUM SIX-POINT SYSTEM TO COMPLY WITH FMVSS.BODY SHOULD BE SHEAR PLATE MOUNTING DESIGN AND ALL ATTACHING HARDWARE SHALL BE SAE GRADE 8,AND ALL CHASSIS FRAME HOLES SHALL BE DRILLED AND REAMED TO FINAL DIMENSION 1.TWO CHOCK HOLDER IN EACH FENDER PANEL K.BODY MATERIAL GAUGES AS FOLLOWS I.FLOOR 3/16 DIAMOND PLATE 2.CROSS MEMBERS STRUCTURAL CHANNEL 3.LONGITUDI.NALS STRUCTURAL CHANNEL 4.TOP PANEL 14GA 5.REAR END PANEL 14 GA 6.FRONT END PANEL 14 GA 7.FRONT PANEL 14 GA 8.COMPAKTMENT FLOOR 14 GA 9.DOOR PANELS 18118GA 10.FENDER PANEL 14 GA 11.SHELVES IN BODY 16 GA 12.SUPERSTRUCTURE 14GA L.ALL COMPARTMENTS TO BE WATER RESISTANT' M.ADJUST ABLE TRAYS TO BE I\tlANUFACTURED SO THEY CAN BE l'vfOVEDFROM ONE LOCATION TO ANOT'HER WITHOUT SCRAPING PAINT OFF COMPARTMENT WALLS N.ADJUSTABLE DIVIDER SHELVES SHALL INCORPORATE ADJUSTABLE SLOTS ON TWO --INCH CENTERS O.CAULK AND SEAL ALL NON-CONTINUOUSL'(WELDED BODY SEAMS AND ATTACHING POINTS FOR BODY ACCESSORIES 4 P.SUPPLY AND INSTALL PLYWOOD RACK ON BODY FRONT'PANEL BETWEEN CHASSIS CAB AND BODY AC ELECTRICAL WIRING REQUIREMENTS: A.REMOTE ELECTRICAL RECEPTACLES SHALL IVIEETOR EXCEED THE FOLLOWING SPECIFICATIONS, 1.COMMERCIAL GRADE 2.RECEPTACLE RATING:120 VAC,20 MvlP,GFCI DUPLEX RECEPTACLE 3.RECEPTACLE TO BE INSTALLED IN A DEEP,COVERED,WEATHERPROOF IN- USE RECEPTACLE BOX APPROVED FOR "WET"ENVIRONMENTS B.ALL 120 VAC ELECTRICAL WIRING SHALL BE OF THE APPROPRIATE GAUGE, CONSIDERING POWER SUPPLY,LENGTH OF RUN,AND REMOTE RECEPTACLE RATING C.ELECTRICAL TO BE ROUTED IN "SEAL-TITE",OR EQUIVALENT CONDUIT. FLEXIBLE METAL CONDUIT lS NOT ACCEPTABLE VEHICLE LIGHTING REQUIREMENTS: A.ALL VEHICLE LIGHTING TO BE LED.AND IN COIVIPLIANCE WITH FEDERAL LIGHTING STANDARD FMVSS 108,AS WELL AS COMPLY WITll THE STATE OF CALIFORNIA VEHICLE CODE B.ALL VEHICLE LIGHTING TO BE FLUSH IVIOUNTEDAND RUBBER SHOCK-MOUNTED C.ALL SIDE AND REAR REFLECTORS ARE TO BE COMBINED (VIA A REFLECTORIZED LENS)WITH SIDE MARKER LAl\!lP(S),WHERE POSSIBLE AND WITHIN THE SPECIFICATIONS OF FMVSS 108.IF A SOLE REFLECTOR IS REQUIRED,A DOT APPROVED REFLECTORIZED ADHESIVE MATERIAL SHOULD BE USED IN LIEU OF A RIVETED OR SHEET METAL SCREW ATTACHED ARMORED REFLECTOR D.A METAL GUARD SHALL PROTECT THE BACKSIDE OF ANY LIGHTING THAT PENETRATES INTO REAR BODY COMPARTI'vIENTS E.UNTTS WILL HAVE (4)LIGHTS TO THE REAR OF THE VEHICLE (2)BRAKE AND TAILLfGHTS IN THE FACE OF 'fHE DECK,AND TWO BACK UP LIGHTS F.ALL BODY COMPARTMENTS TO HAVE LED INTERIOR LIGHTS,EACH LIGHT TO HAVE ON/OFF SWITCH WITH MASTER POWER SWITCH IN CAB G.LICENSE PLATE LIGHT SHALL BE FURNISHED AND INSTALLED THE FOLLOWING GUIDELINES SHALL BE ADHERED TO AS GENERAL ELECTRICAL WIRING PRACTICE: A.ALL WIRING,INTERNAL AND EXTERNAL,SHALL BE LOOMED,AND PROPERLY SECURED AND ROUTED IN A PROFESSIONAL MANNER B.ANY NECESSARY WIRE SPLICES AND/OR BUTT CONNECTlONS SHALL BE SOLERED AND SHRINK-WRAPPED,OR FINISHED USING CRIMPED BUTT CONNECTORS AND SHRINK-WRAPPED.SCOTCH LOCKS ARE NOT ACCEPTABLE C.WIRING TO BE SECURELY FASTENED AND INDEPENDENTLY SUPPORTED USING PROPERLY SIZED CUSHION CLAMPS,MET'AL CLIPS,OR OTHER INDUSTRY ACCEPTED SUPPORTING HARDWARE.TIE-WRAPS SHALL ONLy'BE USED IN BETWEEN PRIMARY WIRING SUPPORTS AS NECESSARY TO AID IN THE SECUREMENT OF WIRE BUNDLES. TIE-WRAPS SHALL NOT BE USED FOR THE PRIMARY SUPPORTING OR SECURING OF WIRING.STICK-ON/GLUE-ON WIRE RETAINERS ARE NOT ACCEPTABLE D.WIRING SHALL NOT BE SUPPORTED BY,OR ATTACHED TO,ANY OTHER HOSE, ELECTRICAL BUNDLES,ETc:.THE WIRING/LOOM SUPPORTS SHALL PROVIDE AN INDEPENDENT SUPPORT E.PROVIDE GROMMETS WHERE WIRE PASSES THROUGH COMPARTMENTS,FRAME MEMBERS,AND BULKHEADS F.PROVIDE POSITIVE PROTECTION OR METAL SHIELDlNG TO PRECLUDE THE CHAFFING OF WIRING AGAINST FRAME MEMBERS,CHASSIS COMPONENTS,ENGINE EXHAUST COMPONENTS.BODY COrvIPONENTS,OR ADJACENT HOSES/LINES,ETC. TOWING ITEMS: 5 A.INSTALL ATTBC BUCI(-PLATEAND PREMIER 2200 PINTLE HITCH B.INSTALL "GLAD HANDS" C.INSTALL (1)6 WAY ROUND TRAILER PLUG &(I)7 WAY RV STYLE PLUG WORK &SAFETY LIGHTS: A.INSTALL TWO WHELEN TANF85 45"TRAFFIC ADVISORS (I)FRONT OF BODY.ONE REAR OF BODY. B.INSTALL (5)WHELEN 600 SERIES FLUSH.MOUNTED SCENE LIGHTS (2)ON THE CURBSIDE TOP CORNERS OF THE SUPERSTRUCTURE.(2)ON THE STREETS IDE TOP CORNERS OF THE SUPERSTRUCTURE AND ON THE STREETS IDE REAR OF THE SUPERSTRUCTURE. C.INSTALL (4)WHELEN 600 SERIES STROBES (2)ON THE CURBSIDE TOP CORNERS OF THE SUPERSTRUCTURE AND (2)ON THE STREETS IDE TOP CORNERS OF THE SUPERSTRUCTURE.LIGHT TO BE CLOSE J\tlOUNTED NEAR THE SCENE LIGHTS. D.INSTALL (2)GRILL MOUNTED WHELEN LlNZ6 SERIES STROBES AT FRONT OF CHASSIS. E.INSTALL (I)WHELEN 600 SERIES LED STROBE TO BE INSTALLED AT THE REAR OF THE BODY ON STREETS IDE REAR PANEL. PAINT AND FINISH: A.ALL SURFACES TO BE ACID ETCHED,CLEANED OF RUST,GREASE,OIL,DIRT, MILLSCALE,ETC.,PRIOR TO THE PRIME COAT OF PAINT B.ALL EXTERIOR AND INTERIOR SURFACES COATED WITH MINIMUM TWO COATS OF METAL PRIMER C.BODY EXTERIOR PAINTED WITH MINIMUM TWO COATS PAINT TO MAT'CH CAB D.BODY COMPARTMENT INTERIORS PAINTED WHITE E.ALL INSTALLED SWITCHES AND/OR EQUIPMENT CONTROL(S),MUST BE PROPERLY LABELED AS TO FUNCTION AND CONDITION (I.E ..ON.OFF.ETC.).ALL REQUIRED lDENTIFICA TION LABELS OR PLACARDS.INTERIOR OR EXTERIOR,TO BE PERMANENT NON-FADING (I.E.,ENGRAVED OR DIE-STAMPED)AND AFFIXED USING RIVETS.ADHESIVE LABELS,METAL OR PLASTIC ARE NOT ACCEPTABLE F.ANY AND ALL BODY ATTACHMENTS SHALL BE INSTALLED USING A RUBBER GASKET MATERIAL AND ATTACHMENT CAULKED TO PREVENT WATER LEAKAGE. G.INSTALL CITY OF PALO ALTO PROVIDED DECALS ADDITIONAL ITEMS FURNISHED WITH EACH UNIT: TRUCK MOUNTED POWER TAKE OFF DRIVEN AIR COMPRESSOR/GENERATOR/HYDRAULIC SYSTEM MAKE/MODEL A.CURRENT MODEL SINGLE STAGE ROTARY SCREW VANAIR MODEL V3 175 UDEC UNDERBODY AIR COMPRESSORI7.2 KW GENERATORIIO GPM @ 2000PSI HYDRAULIC SYSTEM SHALL BE SUPPLlED AND INSTALLED.SYSTEM SHALL DELIVER THE SPECIFIED VOLUME OF AIR,AC POWER AND HYDRAULIC FLOW TO THE END OF SPECIFlCED OUTLETS.THE SYSTEM MUST RUN orr (I)PTO OPENING AND MUST NOT UTILIZE ANY BELTS OR PULLEYS IN THE INTEGRATION OF THE AIR,AC GENERATfNG,AND H',(DRAULlC SYSTEI\-t.(NO EXCEPTIONS) DRIVE 6 A.THE SIDE-MOUNT HOT SHIFT CEHLSEA PTO SHALL BE DESCRIBED IN THE MANUFACTURER'S CATALOG AS SUITABLE FOR HEAVY-DUTY CONTINUOUS OPERATION WITH A TORQUE RATING OF I25-FT/LBS:CAST IRON CASE ONLY HYDRAULIC CLUTCH PACK OPERAT'ED,CONTINUOUS GEAR ENGAGEMENT SHIFTING TYPES UNACCEPTABLE B.MAXIMUM ENGINE SPEED AT 100 PSI TO BE WITHIN 1300-RPM PTO TO BE COMMENSURATE WITH C01V1PRESSOR,SPEED AT ABOVE ENGINE SPEED C 1300 SERIES DRIVELlNE,FORGED STEEL FLANGES AND UNIVERSAL JOINTS SHALL BE OF STANDARD MANUFACTURE WITH SUFFICIENT TORQUE CAPACITY D.TOLERANCE BETWEEN FACE OF FLANGE ON COiV1PRESSOR SHALL NOT EXCEED ONE (1)DEGREE E.DRIVE SHAFT ANGLE SHALL NOT EXCEED SEVEN (7)DEGREES \VORKING ANGLE F.DRIVELlNE SET SCREWS TO BE SAFETY WIRED ENGINE SPEED CONTROL A.VANAIR V-TEC SPEED CONTROL AND DlAGNOSTIC SYSTEM B,ENGINE AND TRANSrvllSSION TO BE REPROGRAMl'vlED BY DEALER TO MATCH COMPRESSOR REQUIREMENT'S TO PREVENT OPERATOR INPUT. COMPRESSOR OIL A.VANAIR AIR HEAD LUBRICANT. COMPRESSOR OIL COOLER VANAIR #6001-001 A.FACTORY SUPPLIED ELECTRICALLY DRIVEN FAN SYSTEM FOR COMPRESSOR OIL COOLING SYSTEM.FAN TO BE C)'CLED BY FACTORY THERMAL TEMPERATURE SWITCH B.UNIT TO BE MOUNTED AT REAR OF TRUCK C.ELECTRIC FAN:EXHAUST A[R [S NOT TO BE DEFLECTED TO REAR OF CHASSIS D.NO PORTION OF INSTALLATION TO REAR OF CAB SHALL EXTEND MORE TI-IAN 2" ABOVE VEHICLE FRAt-.H: E.NO PORTION OF COOLER SHALL EXTEND BELOW DIFFERENTIAL F.NO ABS FORMED PLASTIC AIR RECEIVER &OIL SEPARATOR VANAIR #60004-001B A.VISUAL TYPE SIGHT GLASSES OR GAUGE INCORPORATED IN RECEIVER AND VISIBLE FROM CURBSIDE B.TANK TO BE POSITiONED FOR ACCESS TO OIL SEPARATOR WITHOUT REMOVING TANK FROM TRUCK C.DESIGNED SO THAT UNIT CAN BE MOUNTED BETWEEN RIGHT FRAME MEMBER AND RUNNING BOARD UNDER CAB WITH ACCESS '1'0 OIL LEVEL GAUGE AND OIL FILL LUG ON CURB SIDE D.OIL FILL TO BE EXTENDED IF NECESSAR'{TO ALLOW OIL TO BE ADDED CONVENIENTL Y E.DRAIN VALVE REQUIRED ON TANK F.AIR RECEIVING TO BE ASME AND NATION BOARD G.CONNECTED TO .AIR RECEIVER AND LOCATED SO THAT VALVE CAN BE CHECKED MANUALLY FROM CURB SIDE OF TRUCK H.REMOTE PULL CABLE TO SAFETY VALVE FOR TESTING OPERATION IS ACCEPTABLE I.TO AUTOMATICALLY BLOW DON AIR SYSTEM WHEN AIR COMPRESSOR [S DISENGAGED OR STOPPED J.BLOW DOWN AIR IS TO BE DIRECTED DOWNWARD WITl;NECESSARY PIPING K.TANK TO HAVE BOLT ON LID WITH INTERNAL COALESCING ELEMENT 7 AIR FILTER A.COMPLETE WITH FACTOR'!,STANDARD DRY-TYPE AIR FILTER INCLUDING FITTINGS WITH CLAMPS FOR RELOCATING AIR FILTER ABOVE FLOOR OF BODY B.AIR FILTER PLATE THAT IS ATTACHED TO THE AIR INTAKE TUBE OF COMPRESSOR MUST BE COMPLETELY SEALED OFF TO PREVENT DfRTY AIR BYPASSING THE FILTER MINIMUM PRESSURE ORIFICE A.INCORPORATE AT DISCHARGE OF RECEIVER SYSTEM COMPRESSOR MOUNTING A.TO BE MOUNTED BACK OF CAB BETWEEN FRAME MEMBERS B.NO PART OF COMPRESSOR ACCESSORIES TO EXTEND MORE THAN 2"ABOVE TRUCK FRAME OR II"BELOW LOWEST POINT ON FRAME CHANNELS HYDRAULIC COOLER LINES A.AEROQUIP FC-300 OR EQUAL B.MUST EXCEED SAE 100RS STANDARDS FLEXIBLE LINES A.AEROQUIP FC-300 REUSABLE ENDS B.SPEED CONTROLS LINES TO BE AEROQUIP #2807 (TEFLON)wrru REUSABLE END (NO SUBSTITUTE) C.AIR LINE TO SERVICE VALVES TO BE NOT LESS THAN I"]I)WITH FLEXIBLE CONNECTION AT FORWARD END M.ADE OF AEROQUIP #FC300-20 HOSE (NO SUBSTITUTE)AND THE FOLLOWING FITTINGS PER INSTALLATION 2-EACH 411-20S HOSE ENDS,1 EACH 2024-20-203 COMP D.ALL HOSES ARE TO BE SECURED WITH RUBBER COATED STEEL CLAMPS (PLASTIC TIES ARE NOT ACCEPTABLE COMPRESSOR PROTECTION A.COMPRESSOR MUST BE PROTECTED BY HIGH TEMPERArURE CUT-OFF SWITCH TESTED FOR PROPER OPERATION BEFORE DELIVERY OF COMPRESSOR B.THERMAL SWITCH MUST BE MURPHY SWITCH GAUGE 1120-TO-300,15 FEET C.MUST INCLUDE A TEMPERATURE INDICATOR,NO LIGHTS D.THERMAL SWITCH MUST INCLUDE A RESET BUTTON E.THERMAL SWITCH SHUTDOWN TO BE WIRED '1'0 PTO ELECTRONIC ENGAGEMENT SYSTEM.NOT THE VEHICLE IGNITION SYSTEM F.TEMPERATURE GAUGE DIAL FOR SWITCH TO BE IVIOUNTEDIN DASH ELECTRICAL WIRING A.ALL ELECTRICAL WIRING USED IN CONNECTION WITI{COMPRESSOR MUST BE ADEQUATELY SECURED FOR PROTECTION OF WIRE (SCOTCH LOCK TYPE ELECTRICAL CONNECTORS ,ARENOT ACCEPTABLE MISCELLANEOUS A.TO BE COMPLETE WITll ONE PART MANUAL AND ONE MAINTENANCE MANUAL PER UNIT B.OVERHAUL AND PARTS MANUAL FOR AIR END ASSErvlBLEc.IF PARTS MANUALS DO NOT SHOW ALL PARTS USED,A SEPARATE LIST SHALL BE PROVIDED D.PARTS AND SERVICE MANUALS TO BE LEFT IN VEHICLES. 8 E.INSTALLATION OF COIVIPRESSOR AND NECESSAR\'COMPONENTS IVIUST REFLECT GOOD WORKtvlANSHIP F.IF THE COMPRESSOR IS INSTALLED BY OTHER THAN THE COl'vlPRESSOR MANUFACTURER,THE WORK MUST I3E PERFORMED BY FACTOR'!'AUTHORIZED AND TRAINED INSTILLATION CENTER G.VENDOR TO OPERATE UNIT FOR AT LEAST FOUR (4)HOURS H.AIR HOSE REEL TO BE HANNAY Gf!1474 REVD WITH 12 VDC REWIND,4-WAY ROLLER GUIDE,100"X ~:;"AIR HOSE BALL STOP AND THOR COUPLER INSTALLED IN CURBSIDE HORIZONTAL COMPARrIVIENT. WARRANTY A.AS STIPULATED COMPRESSOR,PTO AND INSTALLAT'ION TO BE WARRANTED AGAINST DEFLECTS IN tvlArERIAL AND WORKMANSHIP FROM DATE VEHICLES PLACED IN SERVICE:AIR END 36 MONTHS ALL OrHER COMPONENTS 12 MONTHS B.WARRANTY TO COVER ALL PARTS AND LABOR C.INSTALLATION iVIES'!'BE PERFORMED AT AUfHORIZED VANAIR SALES AND SERVICE CENTER TO IVIAINTAIN \VARRANTY. GENERATOR (V3 SYSTEl\l GENERATED) A.7,2 KW GENERArOR CLOSE-COUPLED WITH THE AIR END ON THE VANAIR GENAIR SYSTEM WILL PROVIDE POWER TO THE OUTLETS AND AC POWER DELIVERY SYSTEM REFERENCED BELOW. B.GENERATOR ELECTRICAL CONNECTIONS TO BE A WEATHERPROOF QUICK- DISCONNECT PIN STYLE C.REMOTE COVERED eFCI OUTLET 'TO BE HARD-WIRED WITH ELECTRICAL CONDUIT (MIN.10AWe SIZE,OR AS DICTATED BY GENERATOR OUTPUT)TO REAR BODY SIDE PACK PANEL AND LEFT SIDE FIRST FRONT VERTICAL COMPARTMENT.MALE TllREE- PRONG PIGTAIL AT GENERATOR END OF TRUCK WIRING,FOR PLUGGING INTO GENERATOR GFCI OUTLET.GrCI OUTLET TO BE PERMANENTL'!,LABELED WITH RECEPTACLE RATING HYDRAULIC SYSTEM (V3 SYSTEM GENERATED) 10 GPM,2000 PSI PTO DRIVEN HYDRAULIC TOOL SYSTEM HOSE SIZES A.SUCTION HOSES,WIRE BRAID 11/4"ID B.PRESSURE HOSES,WIRE BRAID '/,"ID C.RETURN HOSES,WIRE BRAID 3," ALL HOSES TO BE TWO (2)WIRE BRAID WITH A 5 TO 1 BURST SAFETY FACTOR COMPONENTS 1.20 GALLON HYDRAULIC OIL RESERVOIR WITH FILLER BREATHER CAP.SIGHT LEVEL GAUGE INTERNAL BAFFLE AND RETURN DEFLECTOR 2.1-1/4"SHUT OFF VALVE 3.100-MESH WIRE SUCTION LINE STRAINER 5.HEDLAND 0-15 GALLON FLo\V METER 6.0-3000 PSI GLYCERIN FILLED PRESSURE GAUGE.STEiVIMOUNT'ED 7.FOUR (4)WAY SELECT'OR VALVE WITH auu.r IN PRESSURE RELIEF.RELIEF '1'0 BE ADJUSTABLE TO 2500 PSI AND SET AT 2200 PSI.VALVE ro BE OPEN CENTER SO PRESSURE CANNOT BE rR.,APPED IN TOOL CIRCUIT AND HAVE DETENT IN CONTROL HANDLE ONE (I)PRESSURE PORT TO BE PLUMBED TO QUICK COUPLER,AT FRONT OF UNIT AND ONE (1)PRESSURE PORT TO BE PUJ)'vlBED TO QUICK COUPLER AT REAR OF UNIT 9 8.FLUSH FACE HTMA INTERCHANGE H'y'DRAULIC COUPLERS,TWO (2)SETS,CONNECTED TO SWIVELS SO COUPLER WILL ROTATE 9.HYDRAULIC OIL COOLER TO KEEP OIL BETWEEN 90 DEGREES FAHRENHEIT AND 130 DEGREES FAHRENHEIT 10.10 MICRON RETURN LINE OIL FILTER.FILTER TO HAVE BUILT-IN BYPASS CONDITION GAUGE AND BE SPIN-ON REPLACEABLE TYPE II.~I,"SHUT-OFF VALVE 12.ADJUSTABLE FLOW CONTROL VALVE WITH RELIEF ALL PRESSURE FITTINGS TO BE STEEL AND HAVE 5-1 SAFETY I<'ACTOR.ALL SliCTION OR RETURN FITTINGS TO BE EITHER STEEL OR BLACK IRON WITH A 5 TO 1 SAFETY FACTOR.NO GALVANIZED FIlTINGS ARE TO BE ussu ANYWHERE IN TIlE SYSTEM, SYSTEM TO BE PLLlMBIm AND INSTALLED SO HACK PRESSLIRE IS KEPT TO A MINIMUM.BACK PRESSlJRE SHALL NOT EXCEED 250 PSI NO DEVIATIONS FROM THE SYSTEM WILL BE ALLOWED,SYSTEM TO BE FILLED WITH EP-32 HYDRAlfLlC OIL AND TESTED.CONTROLS TO HE PLtJMB~:D TO RIGHT REAR OF BODY.CONTROLS TO INCLlJDE FOlJR (4)WAY SELECTOR VALVE,ADJlJSTABLE FLOW CONTROL VALVE,FLOW METER PRESSURE GAUGE AND HTMA COUPLERS. HYDRAULIC PIPE RACK ATTBC HPR2 12V HYDRAULIC PIPE RACK WITH 1000LB LIFT CAPACIT'{ SEE VIDEO AT THE FOLLOWING URL FOR OPERATION PROFILE: http://youtll.be/_Le9ysOyOT8 WELDER 10 PROVIDE AND INSTALL NEW i'vl0DEL LINCOLN VANTAGE 400 DIESEL WELDER RATED OUTPUT: 400A136V/I00oo 450A/32V II OO~/() OUTPUT RANGE: 14-36V CV 2()-250A DC TIG 30-S0OA DC 40-300A PIPE 90-4SOA GOUGE GENERA TOR OUTPUT: 3-PH:19 KW PEAK,17 KW CONT.,I-PH:12 KW PEAK,II KW CONT. TYPE OF ENGINE: PERKINS 404D-22 EPA TIER 41 HP AND SPEED: 32.7@1800 CYLINDERS: 4 Dl.MENSIONS (11 X W X D): 46.6 IN X 2S.3 IN X 60 IN (1184 tv'([vl X 642 MM X IS24 MM) NET WEIGHT: 1230.000 (557.928 KG) 12V AWNING PROVIDE AND INSTALL 12V EXTEND/RETRACT Slli\D[AWNING ON THE STREETSIDE OF THE 132"REAR SECTION OF THE BODY THE AWNING WILL BE SIZED TO WORK WITHOUT INTERFERING WITH 'lllE FUNCTION OF THE BODY. BACK-UP CAMERA PROVIDE AND INSTALL BACK-UP CAMERA wrru DASH MOUNTED 5"COLOR DISPLA Y INSTALLATION NOTE:THE TERM "INSTALLER"BELOW REFERS TO THE COMPANY/ENTITY INSTALLING THE COMPONENTS ON THE CHASSIS IF PRIME BIDDER IS NOT THE INSTALLER,THE PRIME BIDDER IS RESPONSIBLE FOR MAKING SURE THE INSTALLER COMPLIES WITH ALL TERMS BELOW.(NO EXCEPTIONS) INSTALLER MUST PROVIDE (4)REFERENCES (NAME,ORGANIZATION AND PHONE NUMBER), WHO HAVE TAKEN DELIVERY OF AN UNDERDECK COMPRESSOR/GENERATOR UNIT INSTALLED BY THE BIDDER IN THE PAST (5)YEARS (NO EXCEPTIONS) INSTALLER MUST BE A FACTORY AUTHORIZED SALES AND SERVICE CENTER FOR;VANAIR, AND LlFTMOORE (NO EXCEPTIONS) INSTALLER,REGARDLESS OF THE LOCA nON OF THE PRIME BIDDER,MUST BE LOCATED WITHIN 75 MILES OF THE CITY SAN JOSE.ALL ASPECTS OF THE INSTALLTION MUST TAKE PLACE AT SAID LOCATION II INSTALLER MUST EITHER HAVE A PROFESSIONAL ENGINEER CERTIFIED BY THE CALIFORNIA BOARD OF PROFESSIONALENGINEERS ON STAFF THAT HAS REVIEWED AND APPROVED THE PROPOSED STRUCTURAL DESIGN AND LAYOUT OF ALL COMPONENTS,OR MUST HAVE A THIRD-PARTY CERTIFIED PROFESSIONAL ENGINEER REVIEW AND APPROVE THE PROPOSED STRUCTURAL DESIGN AN LAYOUr. SAID ENGINEER'S CONTACT INFORMATION MUST BE PROVIDED WITH BID RESPONSE.THIS CONSIDERED TO BE A MA TIER OF PUBLIC SAFETY,NO EXEPTIONS TO THIS PROVISION WILL BE PERMITTED, PRIME BIDDER MUST LIST NAME OF PROPOSED INSTALLER FOR REVIEW AND VERIFICATION AT TIME OF BID RESPONSE ENGINEERING DRAWINGS ARE TO BE SUBMITTED WITH BID RESPONSE.FAILURE TO SUBMIT COMPLETE ENGINEERING DRAWINGS UPON SUBMITTAL OF BID RESPONSE WILL DISQUALIFY RESPONDENT, END OF TECHNICAL SPECIFICATIONS REFERENCE DRA WINGS: Accesshandle "--_~;---'--'J Accessstep (see detcll}'-""'~~=+---fl (1)icc-;')./4'...1R:HO$((I)t=_,':y:;r ;\IR HfJ':;:[(1)2<:;"H'IJlRALJUC mrnCIRCUlTHOS( {'::>S'll"'(~V':'j;::.cr.';I).J SHEl.r CURBSIDE VIEW 12 ..........;..~lf:IEJn UGH]'....INItOI"I \..-..n.£)1':<''.<(1 :::'-:::(Jl[LIQ.jT.'~~---''.~·HE1W UN?';(,~1:lI[R.':TROOC 'I);0,TfIlC rAMPER HOLDER __/c>;.TTBe CONE HOLDER Acceeesteo(&60)d(.;t'JII) STREETSIDE VIEW GROTE&3%1-5 TRILLIANT 36 LED____'w'OWUGiT 'lITH ,man,2 PEF:WLCK,//Ante rn PRD\inE ;.till MOUNT LEO DlREl:'l1i:J'j"L IIRRO'w',----$T[CK 5QO ',dATI TELE-LIGHT GFIOljtlet ~ 220\t FLlSlDN If;:[JNPLt~..R[a::~~ED AIm ffiOTECfED Mi;~,~~lmo.....rm"..-..",ioI--TI<o'1F£RWX(llHITE),(REFEF£tJCE Df:13407-N) '-[~JCH LEIl :::10P,Tt..IL ~TIJRN(f;£D) c-INCHLEDMARKER UGHT(RED" REAR VIEW (THE A 11.11('11[0SI'ElIllCII II()NS ,\'-:1)i)1\.\WINCS ARI I III IXU.I'SIVI PROI'ER1'1'III \\11 RIC.\NTRUCK .V'W rR,\ILLR nonv CO,INC ;\N),RIYIWDliC liON OR SII{IC III PRClfIIHITLD WITIIOI I'WRITTEN CONSI.NI) I~_, City of Palo Alto (ID # 6398) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Award of Contract for Quarry Road Improvements Project Design Title: Approval of a Contract with Siegfried for a Total Amount Not To Exceed $92,004 for Design and Construction Support Services for the Quarry Road Improvements and Transit Center Access Project and Approval of a Transfer From the Stanford University Medical Center Fund to the Capital Improvement Fund and Creation of CIP Project PL-16000 to Provide an Appropriation of $92,004 to the Quarry Road Improvements and Transit Center Access Project in the Capital Improvement Program 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 contract with Siegfried Engineering (Attachment A) in an amount of $83,640 for design and construction support services and $8,364 for additional services for a total of not to exceed $92,004, for the Quarry Road Improvements & Transit Center Access Project; and 2) Staff recommends that the City Council amend the Fiscal Year 2016 Budget Appropriation Ordinance for: a) the Stanford University Medical Center Fund by: i) Increasing the transfer to the Capital Improvement Fund in the amount of $92,004; and ii) Decreasing the ending funding balance for the Quarry Road Improvement Reserve in the amount of $92,004; b) the Capital Improvement Fund by: i) Increasing the transfer from the Stanford University Medical Center by $92,004; and City of Palo Alto Page 2 ii) Establishing the Quarry Road Improvement & Transit Center Access Project (PL- 16000) in the amount of $92,004. Background The August 2011 Development Agreement between Stanford Hospital and Clinics, the Lucile Salter Packard Children’s Hospital at Stanford, the Board of Trustees of the Leland Stanford Junior University and the City of Palo Alto obligated the City to design and construct enhancements of various pedestrian and bicycle connections between the Palo Alto Intermodal Transit Center and the Stanford University Medical Campus (SUMC). Stanford provided funds for these projects. Specifically, the agreement called for: 1) Improvements to and within the public right of way to enhance the pedestrian and bicycle connection from the west side of El Camino Real to Welch Road, including urban design elements and way finding, wider bicycle lanes, as necessary on Quarry Road, enhanced transit nodes for bus and/or shuttle stops, and prominent bicycle facilities; and 2) Improvements to Enhance the Pedestrian and Bicycle Connection from the Palo Alto Intermodal Transit Center to the existing intersection at El Camino Real and Quarry Road, including development of an attractive, landscaped passive park/green space with a clearly marked and lighted pedestrian pathway, benches and flower borders. The scope of work consists of the design, permitting, and design support during construction of improvements described above. The improvements included in this scope of work must be designed, permitted, and constructed prior to issuance of the Hospital Occupancy Permit (expected in Spring 2017). Discussion The project site and vicinity lies within the City of Palo Alto and the project would primarily affect land that is owned by the City and by Stanford University. El Camino Real is a State Highway (Caltrans) facility, and would be not be affected by the project. Desired improvements resulting from the work scope consist of the following: 1. Permanent pedestrian and bicycle improvements along Quarry Road from El Camino Real to Welch Road, including urban design elements and wayfinding, crosswalks, wider bike lanes, enhanced transit nodes and bicycle facilities; and 2. A temporary pedestrian path along the existing “short cut” path from the transit center to the existing cross walk at Quarry Road and El Camino Real. The path will be lighted and include landscaping and wayfinding consistent with its location partially within designated park land. City of Palo Alto Page 3 “Temporary” improvements are proposed in item 2 in order to ensure the City meets the deadline included in the Development Agreement, and may be in place for five years or more. The temporary improvements will use a small portion of the Stanford funds set aside for this purpose and are intended to be in place until more permanent improvements can be designed and permitted. The more permanent improvements will use the remaining funds and may include, but are not limited to, changes to the Transit Center access/egress configuration, another pedestrian/bicycle undercrossing of Caltrain, and modifications to the intersection of El Camino Real and Quarry Road to allow for another crosswalk. Funding for design of the permanent project has not been identified, although Stanford funds are available for construction. The City realeased the Request for Proposals (RFP) for the design of the Quarry Road Improvements & Transit Center Access Project in October 2015 and received three proposals in response to the project. The solicitation and selection process is outlined below. Proposal Description/Number Design Services Proposed Length of Contract: Approx. 1 year Total Days to Respond to RFP: 30 days Pre-proposal Tele-Conference: October 13, 2015 Number of Proposals Received: 3 Proposals Received from: Location (City, State) Selected for oral interview? Hatch Mott MacDonald Sandis Siegfried Engineering San Mateo, CA Oakland, CA San Jose, CA Yes Yes Yes The proposals were judged by the following criteria:  Quality and effectiveness of proposed solutions;  Qualifications and experience of the staff assigned to the project  Proposal quality and completeness;  Cost to the City City of Palo Alto Page 4 All three firms were selected for oral interviews upon review of the proposals and Siegfried was selected as the preferred consultant team because they demonstrated superior knowledge of roadway design projects, bicycle & pedestrian planning, park planning and landscape design. Siegfried also has good experience working with City of Palo Alto for the design review process and approval. Timeline Immediately upon execution of the contract, Siegfried will begin a field survey of the project area and will begin development of project plan line alternatives and the public outreach process. Design is scehdueld to be completed by late 2016, in order to meet the construction completion deadline of Spring 2017. Resource Impact The contract with Siegfried will be in the amount of $83,640. Additional services of $8,364 is to provide for any additional studies and additional coordination with Caltrans that may be required as part of the project approval process bringing the total contract amount to $92,004. Funding is available in the Stanford University Medical Center (SUMC) Quarry Road Improvement Reserve. Staff will request an additional transfer for construction during the Fiscal Year 2017 Capital Improvement Fund budget process. Policy Implications The following Comprehensive Plan goals and policies support the Quarry Road Improvements & Transit Center Access Project: Goal T-3: Facilities, Services, and Programs that encourage and promote walking and bicycling. Goal T-4: An efficient roadway network for all users. Policy T-14: Improve pedestrian and bicycle access to and between local destination, including public facilities, schools, parks, open space, employments district, shopping centers, and mulit modal transit stations. 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. Environmental Review This project was identified as a mitigation measure as part of the Stanford University Medical Center expansion Final Environmental Impact Report. No additional environmental review is required for approval of this contract. Attachments: City of Palo Alto Page 5  Attachment A: Contract #C16161417 Siegfried (PDF) ATTACHMENT A Professional Services Rev. March 31, 2015 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 Eighty Three Thousand Six Hundred Forty Dollars ($83,640.000). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Ninety Two Thousand Four Dollars ($92,004.00).The applicable rates and schedule of payment are set out at 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 at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: TJKM Transportation 4305 Hacienda Dr. Pleasanton, CA 94588 CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Paul J. Schneider as the Principal-in-Charge to have supervisory responsibility for the performance, progress, and execution of the Services and Adam Merrill, as the Project Engineer to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 property. CITY’s project manager is Shahla Yazdy, Planning & Community Environment Department, Transportation Division, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329- 3151. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements:  All printed materials provided by CCONSULTANT 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 CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks.  Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with 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 Division’s office.  Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: SIEGFRIED ENGINEERING, INC. Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD V.P. Professional Services Rev. March 31, 2015 EXHIBIT “A” SCOPE OF SERVICES The following Scope of Scope outlines specific tasks, which are required for the Quarry Road Improvements & Transit Center Access Project. Task 1 - Concept Plan Lines & Project Approvals 1. CONSULTANT will prepare a conceptual design of permanent pedestrian and bicycle improvements along Quarry Road from El Camino Real to Welch Road, including urban design elements and wayfinding, crosswalks, wider bike lanes, enhanced transit nodes and bicycle facilities. The conceptual design shall be accompanied by a preliminary cost estimate demonstrating an overall project cost not to exceed approximately $400,000 (including design, permitting, and construction) for the Quarry Road portion and a yet to be determined amount for the trail connection. 2. At the same time, CONSULTANT will prepare a conceptual design of a temporary pedestrian path along the existing “short cut” path from the transit center to the existing cross walk at Quarry Road and El Camino Real. The path should be lighted and include landscaping and wayfinding consistent with its location within designated park land. The conceptual design shall be accompanied by a preliminary cost estimate. 3. Following receipt of CITY and Stanford staff comments and necessary revisions, CONSULTANT will present the conceptual design, presentation material, i.e. colored renderings, display boards, etc. and landscaping palette of both project elements for review and recommendation for approval by the Palo Alto Pedestrian and Bicycle Advisory Committee and the Architectural Review Board and the Planning & Transportation Commission. CONSULTANT will also present the conceptual design of the temporary transit center path improvements and a Park Improvements Ordinance to the Parks and Recreation Commission. A separate internal review process may also be required for Stanford University. The CITY will be responsible for scheduling these meetings. 4. Following receipt of the Parks and Recreation and Planning Commissions’ recommendations, CONSULTANT will present the conceptual design for review and approval by the CITY Council. The proposed project is expected to fall within the scope of a prior environmental document, and will not require additional review pursuant to CEQA. Deliverables: • 10% Design (concept plan lines) • Illustrative drawings and/or presentation materials and preparation of staff reports necessary to convey the conceptual designs to the public and decision makers Preliminary cost estimates Planning Commission recommendations and CITY Council approval DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 Included in the fee, is time required for all meetings mentioned above and for responding to comments of the design plans. CONSULTANT will be responsible for the preparation of all outreach material, meeting notices and presentation materials. Siegfried will also serve as a scribe at all meetings required above and provide the CITY with meeting notes and action items. Task 2 - Development of Plans, Specifications, and Engineers Estimate After CITY Council approval, CONSULTANT will prepare final design plans, specifications, and engineer’s estimates for construction of the project, based on the approved conceptual design. Improvement plans shall include necessary all required civil details prepared by a Registered Professional Civil Engineer with good standing with the State of California. Proposed improvements may include, but not limited to, the following types of elements: any utility work, temporary construction easements, bicycle and pedestrian safety, sidewalk realignment and/or widening, drainage improvements, signage and striping, bicycle treatments, landscaping, way-finding signage and any required topographic surveying to properly analyze and design the project. Project specifications shall be consistent with Palo Alto Standard Specifications. During plan development, CONSULTANT shall provide 50% and 100% plans and engineer’s estimates based on the improvement plans and comparable bids for similar projects to increase the chances of the project remaining within the project budget. One or more meetings with CITY and Stanford staff to review design plans, all required plan set revisions, specifications, and cost estimates should be included in this task. The CITY will responsible for scheduling these meetings. Any improvements proposed at El Camino Real/Quarry Rd that is in Caltrans R.O.W. will require an encroachment permit through District 4 Permits Office. CONSULTANT will prepare the encroachment permit application and the plan sheet for review at this intersection of the striping improvements. No traffic signal improvements are planned for El Camino Real/Quarry Rd intersection. At the 50% PS&E stage of the design submittal, CONSULTANT will prepare the project traffic signal plans for each intersection, which will include the following sheets: • Traffic Signal Modification Plans (Arboretum/Quarry and Palo Rd/Quarry) • Conductor and Equipment Schedule • Signing and Striping Plans (Welch to El Camino Real) Included in the fee, is time required for all meetings mentioned above and for responding to comments of the design plans. CONSULTANT will be responsible for the preparation of all outreach material, meeting notices and presentation materials. Siegfried will also serve as a scribe at all meetings required above and provide the CITY with meeting notes and action items Deliverables: • 50% PS&E Design Packages (24”x36” size plans, 10 sets) DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 • 100% PS&E Bid Package (24”x36” size plans, 3 sets, soft copy in pdf format) • 50% and 100% Engineers Cost Estimate • Procurement of Caltrans permits to allow for the construction of the project Task 3 - Additional Services Task 3.1 – Bidding Support Phase During the bid process, CONSULTANT will answer bidder’s questions and provide clarifications to the bid questions. CONSULTANT will respond to Requests for Information (RFIs). CONSULTANT will prepare addenda, as necessary. CONSULTANT will prepare conformed documents, as necessary. Deliverables: • Addendum(s), Clarifications, Conformed Documents, as necessary Task 3.2 – Construction Support Phase During construction, CONSULTANT will assist CITY staff as follows: • Attend the pre-construction meeting. • Prepare responses to contractors’ RFIs during the construction phase, as needed. • Review all contractor submittals and assist the CITY inspector with specific design issues during construction. • Attend up to one construction progress meeting or field meetings to answer design questions and clarify design elements when requested by the CITY staff. • Assist with the issuance and negotiation of change orders. • Prepare record drawings from Contractor redline as-builts in AutoCAD format and .pdf format Deliverables Exceptions to the Scope 1. Please note that the following are not included in the base scope of work in Tasks 1 and 2, and 3 detailed above: • Traffic count data collection or analysis • Environmental Studies • Hazardous waste testing, monitoring and contingency plan for both site and building demolition work. • Potholing • Geotechnical monitoring • Construction management, inspection, supervision and scheduling • Record Survey Maps, Tentative Maps, Parcel Maps, Final Maps and legal descriptions and sketches • Construction staking DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion No. of Weeks From NTP 1. Survey and Concept Design 3 Weeks 2. City Review 2 Weeks 3. ARB, PRC, Stanford Reviews 6 Weeks 4. Design and Permitting 12 Weeks 5. Bidding and Construction 24 Weeks DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $83,640.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $92,004.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $83,640.00 and the total compensation for Additional Services does not exceed $8,364.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $28,586.00 (Concept Plan Lines and Project Approvals) Task 2 $45,606.00 (Plans, Specifications, and Estimates) Task 3 $9,448.00 (Support Services) Sub-total Basic Services $83,640.00 Reimbursable Expenses $0.00 (NONE) Total Basic Services and Reimbursable expenses $83,640.00 Additional Services (Not to Exceed) $8,364.00 Maximum Total Compensation $92,004.00 DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 EXHIBIT “C-1” HOURLY RATE SCHEDULE Siegfried TJKM (DBE) Tasks PROJECT TOTAL Task 1 Concept Plan Lines and Project Approvals 1.1 Field Reconnaissance/Topographic Survey $8,366 $921 $9,287 1.2 Utility Records/Site Photographs $2,788 $2,788 1.3 10% Concept Design and Estimate $5,577 $3,685 $9,261 1.4 Illustrative Drawings $2,788 $2,788 1.5 PRC, ARB, and Stanford Review Packages and Meetings $4,462 $4,462 Task 2 Plans, Specifications, and Estimates 2.1 50% Submittal $11,154 $5,527 $16,681 2.2 100% Submittal $11,154 $4,606 $15,760 2.3 Final Submittal $5,577 $1,842 $7,419 2.4 Meetings $2,788 $921 $3,710 2.5 Permitting $1,115 $921 $2,036 Task 3 S u p p o r t Services 3.1 Bidding Support $1,599 $322 $1,920 3.2 Construction Support $5,674 $1,854 $7,528 Total Cost $63,042 $20,598 $83,640 Job Title Name Hours Actual Hourly Rate Raw Rate Total Extended Hourly Rate Principal Paul Schneider 70 $81.41 $5,698 $225.84 Associate Landscape Architect Bob Norbutas 90 $51.28 $4,615 $142.26 Associate Civil Engineer Adam Merrill 70 $51.28 $3,590 $142.26 Senior Associate Surveyor Matt Cunningham 10 $55.29 $553 $153.38 Engineer II Mike Ebenal 90 $38.43 $3,459 $106.61 Instrumentman Chris Wallace 16 $49.17 $787 $136.41 Technician III Mike Kincaid 98 $35.87 $3,515 $99.51 DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 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 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD Professional Services Rev. March 31, 2015 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE EMAILED TO: InsuranceCerts@CityofPaloAlto.org DocuSign Envelope ID: 028422D8-3A63-4BBE-95C0-4DFC9DD3F2BD City of Palo Alto (ID # 6297) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Amendment No. 1 to Integrated Design 360 Contract Title: Approval of Contract Amendment Number 1 to Contract Number C15154454 with Integrated Design 360 for Project Management and Analysis Services Associated With an Electrification Feasibility Study, and Adoption of Budget Amendment Ordinance in the Amount of $145,000 From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that Council authorize the City Manager or his designee to approve amendment No. 1 of contract #C15154454 with Integrated Design 360 to increase the contract limit by $66,732 to an amount not to exceed $512,726 to provide project management and analysis services associated with the electrification feasibility study and to extend the term three months through December 31, 2016. Staff further recommends that Council approve a Budget Amendment Ordinance to increase funding in the amount of $145,000, offset by a decrease to the Budget Stabilization Reserve, relating to all consultancy services identified as part of Council approved Electrification work plan. Executive Summary These actions are necessary to conduct a feasibility study to explore residential and commercial building code changes for new construction and remodeling projects to expedite electrification in Palo Alto, as identified within Task #4 of the Council-approved Electrification Work Plan (Staff Report #5961). This work plan item will require a total budget amendment ordinance of $145,000, of which $66,732 is necessary to amend the Integrated Design contract to include project management and analysis, and approximately $80,000 is necessary for additional consultancy services. Specifically, the additional consultancy services relate to requirement of an electrical engineering firm to support cost estimation and engineering judgment analysis and an energy engineering firm specializing in providing cost-effectiveness studies in accordance with California Energy Commission (CEC) regulations. Background City of Palo Alto Page 2 On December 15, 2014, Council approved a City Council Colleagues Memo (Colleagues Memo) that directed staff to develop an initial report on the resources and timeframes required to evaluate four “fuel-switching”, or “electrification”, topics: 1) prospective programs and incentives that would result in the use of electrical devices to replace those using natural gas; 2) possible building code changes to require, where feasible, the use of electrical appliances in the construction and renovation of residential and commercial buildings; 3) possible changes to utility rate structures that would not penalize fuel-switching; and 4) evaluation of additional strategies to support the addition of electric vehicles. On February 2, 2015, Council approved a two-phase work plan to prepare a report responsive to the Colleagues Memo (Staff Report 5463). The first phase of the work plan, approved by Council on August 17th, 2015 (Staff Report 5961), determined the scope of the analysis and identified any staff and/or consulting resources required to complete the task. This staff report relates to consultancy assistance necessary to complete Task #4 (“explore possible building code changes”) identified in the Phase I work plan. The second phase of the work plan will provide detailed analysis of the measures identified in the first phase and the development of an implementation plan. Discussion As part of the approved Phase I work plan, Task #4 explores potential building code changes as part of the evaluation and technical feasibility of implementing electrification projects and programs. Activities and deliverables include: 1) Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre--requisite criteria1; 2) Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre--requisite criteria; 3) Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future; 4) Study and seek permission from the California Energy Commission (CEC) to remove certain requirements that impeded electrification (such as a case--by- -case cost effectiveness analysis) to permit installation of heat--pump based heating appliances; 1 Calgreen Tier 1 and Tier 2 is the building code structure used for permitted building projects in Palo Alto under Green Building Ordinance 5324. This structure enables Development Services to streamline the enforcement of local amendments to the Green Building Code. City of Palo Alto Page 3 5) Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2019 code update cycle (effective 2020); 6) Explore potential scenarios for an expedited permitting program for projects pursing electrification; and 7) Identify resources required to administer an expedited permit program for projects pursuing electrification. The recommended contract amendment and budget amendment ordinance are necessary to proceed with Task #4 of the Electrification Work Plan. Staff anticipates a formal report detailing results of this analysis by December 31, 2016. Resource Impact This action requires a budget amendment ordinance to increase the Development Services operating budget by a total of $145,000 which will be offset by a corresponding decrease to the Budget Stabilization Reserve. Environmental Analysis Approval of this contract amendment with Integrated Design 360 and adoption of the related Budget Amendment Ordinance are not projects under the California Environmental Quality Act (CEQA). Attachments:  C15154454 CONTRACT AMENDMENT NO 1 (PDF)  BAO XXXX - Integrated 360 Design Contract Amendment 1 (DOCX) 1 Revision April 28, 2014 AMENDMENT NO. 1 TO CONTRACT NO. C15154454 BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. This Amendment No. 1 to Contract No. C15154454 (“Contract”) is entered into 7th day of December, 2015, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INTEGRATED DESIGN 360, LLC. a California limited liability company, located at 727 Industrial Road, Suite 128, San Carlos, California, 94070, Telephone (415) 866-6744 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of assistance to manage the Green Building Program. B. The CITY intends to extend the term and increase the compensation for additional services to include an Electrification Feasibility Study per 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 2 Term, is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through December 31, 2016 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 COMPENSATION, 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 Three Hundred Sixty One Thousand Six Hundred Four Dollars ($361,604.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Five Hundred Twelve Thousand Seven Hundred Twenty Six Dollars ($512,726.00). 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”.” DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 2 Revision April 28, 2014 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”. b. Exhibit “B” entitled “SCHEDULE Of PERFORMANCE”. c. Exhibit “C” entitled “COMPENSATION”. d. Exhibit “C1” entitled “HOURLY RATE SCHEDULE”. SECTION 4. 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: INTEGRATED DESIGN 360, LLC. Attachments: EXHIBIT "A" :SCOPE OF SERVICES EXHIBIT "B" :SCHEDULE OF PERFORMANCE EXHIBIT "C" :COMPENSATION EXHIBIT "C1" :HOURLY RATE SCHEDULE DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 Principal 3 Revision April 28, 2014 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall provide professional services for CITY’s Green Building program. The CONSULTANT shall help manage the City’s Green Building program to help assist CITY with its continued efforts to be a leader in environmental sustainability. CONSULTANT shall integrate and manage sustainable building practices for local municipalities. CONSULTANT shall conduct landscape and irrigation plan reviews in accordance with the City’s landscape water efficiency standards. The CONSULTANT shall assist staff with the implementation and management of the City’s Green Building program. The CONSULTANT shall include a level of quality control of Green Building Program Management coupled with CITY personnel performing Green Building Quality Assurance as a portion of CONSULTANT’s duties. The CONSULTANT shall primarily execute the Green Building program and operations task list which includes: A. Existing Program Implementation Assistance B. Metrics Management and Reporting C. Quality Control Maintenance D. Develop Green Building Program Process Handouts E. Ongoing Training F. Policy Review and Creation G. Graphic Media Support of Program H. Landscape Water Efficiency Plan Review (Additional Service) A. Existing Program Implementation Assistance Provide program implementation assistance tasks for the existing green building program in accordance with CITY staff requirements. Examples of these tasks may include the items listed below:  Response to requests to clear for Final Inspection  Approval of permit applications (residential and non-residential)  Explanation of requirements to applicants Reminders for final GP and LEED certificates, Commissioning reports, receive and enter final certs, administer fines when overdue  Program efficiency improvement Integration with entire permitting system and individual staff members, as well as inter-departmental sustainability efforts (i.e.; landscape water efficiency review, C&D, zero waste)  Program Development, goals, updates, implementation  Data entry and management for statistics and annual report  Community Education on sustainability Plan review including but not limited to residential and commercial planning and building permit applications. B. Metrics Management and Reporting Provide detailed quantitative analysis that measures how effective the Green Building program is per the following:  Building Performance Database - Develop performance metrics information provided DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 4 Revision April 28, 2014 by applicant at Permit Issuance and Final Inspection stage of building permit.  SEA Report – Compile standard report for fiscal year data for Green Building for annual SEA Report.  Earth Daye Report – Compile standard report for fiscal year data for green building Annual Earth Day Report. C. Quality Control Maintenance Develop process and best practices for tasks identified at various stages of the development process. The various city departments where these best practices should be implemented include:  Planner Quality Control  Project Coordinator Quality Control  Plan Checker Quality Control  Inspector Quality Control  Utilities Quality Control D. Develop Green Building Program Process Web Page and Handouts Develop clearly defined paths that are user friendly that guide the applicant through the process from start to finish. These paths will be readily accessible either through access to CITY’s Green Building web page and/or handouts that are available for distribution from CITY’s Development Center. E. Ongoing Training Continue to explore ways to help make Palo Alto a leader in environmental sustainability. This involves a proactive approach with all relevant City Departments including but not limited to, Planning, Building, Utilities, and Public Works. Ongoing training shall also be available to outside stakeholders when the opportunity presents itself. F. Policy Review and Creation Collaborate with stakeholder groups in the review of existing and creation of new green building policies and guidelines that forward the city’s vision to be a leader in sustainable development. CONSULTANT is expected to draw on best in class examples and latest advances in technology to promote this agenda. CONSULTANT shall use exceptional writing and communication skills to craft and articulate these policies and guidelines. G. Graphic Media Support of Program Develop and maintain web content for the Green Building webpage within the Development Services department webpage. Develop tutorial based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc.. H. Landscape Water Efficiency Plan Review (Additional Service) Review landscape and irrigation plans in accordance with the City’s landscape water efficiency standards to ensure that projects are consistent with the State Green Building Standards Code (CALGreen). Serve as a source of technical expertise to City staff for questions and/or issues relating to appropriate irrigation design and efficiencies. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 5 Revision April 28, 2014 AMENDMENT NO. 1: ADDITIONAL SCOPE OF SERVICES A. GOALS Consultant shall provide technical project management and analysis consulting services to support Development Services in conducting a feasibility study to explore residential and commercial building code changes to assist in expediting electrification for buildings within Palo Alto. The scope of work is identified within Task #4 of the electrification work plan staff report #5961. The “Activities and Deliverables” section of this proposal follows the contents of Task #4. CONSULTANT shall structure the project into three sections: Project Management and Technical Analysis: CONSULTANT will act as the project manager on behalf of Development Services and will facilitate two other firms to complete the work outlined in this proposal. The two other consulting firms shall include the “Outside Consultants” listed below. CONSULTANT shall facilitate these outside consultants to produce the results listed under “Activities and Deliverables”. CONSULTANT will work closely with the Director of Development Services, the Chief Building Official, and the Chief Sustainability Officer on this project. Outside Consultant #1: Electrical Engineering Design Judgment & Cost Estimation: An electrical engineering firm with the capacity to provide engineering judgment analysis and cost estimation. The primary team member from Outside Consultant #1 shall be a licensed Professional Engineer (PE) in the State of California. Outside Consultant #2: Cost-Effectiveness Study Energy Engineering: An energy engineering firm with specialization in performing a cost-effectiveness study in accordance with Section 10-106 of the California Code of Regulations, Title 24, Part 1. B. ACTIVITIES & DELIVERABLES The intent of the study is to provide a high level assessment of the technical feasibility of electrification, and the associated code requirements. The activities and deliverables associated with this Statement of Work focus on researching and identifying technical requirements related to electrification for building types under the jurisdiction of the Building Standards Commission (BSC). CONSULTANT will project manage and coordinate the team from beginning to end and will provide regular updates to City Staff on the progress. CONSULTANT will facilitate the two other firms involved in this study to produce the intended result. ACTIVITIES: 1. Support Staff in the Project Initiation for the Electrification Study: Assist Staff in developing the project plan, schedule, and initiating the consulting project team for the purposing of completing the Electrification Study elements in Task #4. Assist staff to develop a scope of work for the “Outside Consultants”. Assist Staff to identify potential firms to solicit proposals for “Outside Consultant 1” and “Outside Consultant 2”. Act as the project manager to support “Outside Consultant 1” and “Outside Consultant 2” to deliver the study of engineering judgment, hard costs, and cost-effectiveness. 2. Conduct the Electrification Study Elements in Task #4 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 6 Revision April 28, 2014 a. Study the feasibility of including heat pump water heaters (HPWH) installations as part of the Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria.  Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including HPWH installations for CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training.  Manage Outside Consultant #1 to produce the following: Feasibility study containing narrative analysis on the 2016 California Electrical Code engineering design elements and judgment scenarios for the project type scenarios. The study would outline the impact for the case of both a Tier “elective” policy and a Tier “pre-requisite” aka “mandated” policy. Outline cost-estimates for the electrification of key project types.  Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios in accordance with the California Energy Commission requirements for local energy reach code ordinance development. The study would outline the impact for the case of the mandated “pre-requisite” policy. b. Study the feasibility of including heat pump space heating installations as part of Calgreen Tier 1 and Tier 2 elective or pre-requisite criteria.  Project Management and Technical Analysis: Develop key “prototype” project scenarios based on building type data gathered from City resources including GIS, assessor data, and permit data. Report on the feasibility of including heat pump space heating as CALGreen Tier 1 and Tier 2 criteria in the areas of policy development, enforcement, and staff training.  Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design elements and judgment scenarios for the project type scenarios for heat pump space heating installations. The study would outline the impact for the case of Tier elective policy and Tier mandatory policy. Outline cost-estimates for the electrification of key project types.  Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the “prototype” scenarios for heat pump space heating in accordance with the California Energy Commission requirements for local energy reach code ordinance development. C. Study the feasibility of requiring sufficient electrical panel capacity and outlets to accommodate the electrification of the house in the future.  Project Management and Technical Analysis: Report on the feasibility of including requiring sufficient electrical panel capacity and outlets to accommodate the electrification of residential structures with regards to identifying code sections to amend for policy development, enforcement, and staff training. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 7 Revision April 28, 2014  Manage Outside Consultant #1 to produce the following: Feasibility study containing engineering design and judgment narratives describing the impact or requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a typical residential structure. Provide cost estimations for electrical panel capacity for applicable residential prototypes. Provide code sections that needed to be amended to of the California Electrical Code to result in achieving this result.  Manage Outside Consultant #2 to produce the following: Feasibility study containing a cost-effective analysis of the residential “prototype” scenarios for requiring sufficient electrical panel capacity and outlets to accommodate the electrification of a residential structure in accordance with the California Energy Commission requirements for local energy reach code ordinance development. d. Study and seek permission from the California Energy Commission (CEC) to remove certain requirements that impeded electrification (such as a case-by-case cost effectiveness analysis) to permit installation of heat-pump based heating appliances.  Project Management and Technical Analysis: Participate in the continued correspondence with the California Energy Commission with regards to easing the permit process for installation of heat pump water heaters. Update internal “fuel-switching” inspection checklist. Manage Outside Consultant #2 to identify California Energy Code requirements that impede electrification.  Manage Outside Consultant #2 to produce the following: Feasibility study containing a summary of barriers California Energy Commission requirements for local energy reach code ordinance development for the 2016 code cycle. e. Work with other interested parties to lobby CEC to consider carbon content (in addition to energy efficiency) of building energy systems when updating building energy codes for the 2016 code update cycle (effective 2017).  Project Management and Technical Analysis: Facilitate the continued correspondence with the California Energy Commission with regards considering carbon content of building energy systems when updating building energy codes for the 2016 code cycle update (effective 2017). f. Research and analyze the necessary components for a permitting process and field inspection protocol to support electrification.  Project Management and Technical Analysis: Support upper management in developing proposed personnel modifications and training required for the plan check staff and inspection staff to support the electrification of buildings. g. Explore potential scenarios for an expedited permitting program for projects pursing electrification. Work with staff to identify resources required to administer an expedited permit program for projects pursuing electrification. DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 8 Revision April 28, 2014  Project Management and Technical Analysis: Support upper management in exploring opportunities for an expedited permit program to support the electrification of buildings. 3. Assist Development Services in meeting the requirements of the Chief Sustainability Officer. Assist Development Services Staff in supporting the Chief Sustainability Officer in the overall delivery of the Electrification Study to the City Council related to the elements in Task #4. 4. Deliver the Electrification Study Elements in Task #4 Assist Staff in preparing and presenting to the City Council on the findings of Task #4. Prepare a Staff Report, and upload all required supporting documentation to MinuteTraq. Attend and provide technical support to staff during the City Council meeting. DELIVERABLES:  Draft RFP language to assist staff in soliciting Consultant #1 and Consultant #2  Prototype scenarios for typical building projects based on past permit data  Formal report detailing the results of the Electrification Study  Written responses to email inquiries  Staff Report DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 9 Revision April 28, 2014 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within Quarter/Year as specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. 1. Existing Program Implementation Assistance  Development Center Counter Green Building Forms & Handouts (Q1, 2015)  Green Building Plan Check Standards (Q1, 2015)  Green Building Inspection Checklist (Q1, 2015)  Green Building Training Microsoft Powerpoints (Q1, 2015)  Staff Reports (As needed) 2. Metric Management and Reporting  Report narratives for Earth Day and SEA Report (Q4, 2014, 2015)  Annual Database Output Data, Charts, and Graphs for Earth Day Report and SEA Report (Q4, 2014, 2015)  Database login access (Q3, 2015)  Database information for the Information Technology Department (Q3, 2015) 3. Quality Control Maintenance  Development Center Green Building Ordinance Procedures (Q4, 2014)  Correspondence with staff and the public via email (On-going)  Meeting Notes (As needed) 4. Webpage and Handout  Website content (Q4, 2014 and Q4, 2015)  Informal Videos to be stored on Vimeo (Q2, 2015 and Q2, 2016) 5. On-Going Training  Staff Training PowerPoints (One Per Quarter starting Q1,2015)  Informal Training Videos for New Staff (Using Jing or Camtasia Software) - (Q1, 2015 through Q2, 2016 - One Per Quarter)  Public Training Powerpoints (One Per Quarter starting Q1, 2015) 6. Policy Review and Creation DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 10 Revision April 28, 2014  New green building ordinance criteria in collaboration with Technical Advisory Group (Q4, 2014)  Policy Development Agendas and Meeting Notes (On-going)  Technical Analysis and Staff Reports (As needed) AMENDMENT NO. 1 SCHEDULE OF PERFORMANCE The schedule for completing the activities presented TBD in EXHIBIT “A” Scope of Services DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 11 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, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $294,872.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $445,994.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $294,872.00 and the total compensation for Additional Services does not exceed $151,122.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $129,006.50 (Existing Program Implementation) Task 2 $36,859.00 (Metric Management & Reporting) Task 3 $55,288.50 (Quality Control Maintenance) Task 4 $36,859.00 (Webpages & Handouts) Task 5 $18,429.50 (On-Going Training) Task 6 $18,429.50 (Policy Review & Creation) Sub-total Basic Services $294,872.00 AMENDMENT NO. 1 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 12 Revision April 28, 2014 Task 1 $16,080.00 (2015 4 Months) Task 1 $50,652.00 ( 2016 12 Months) Sub-total Amendment No 1 $66,732.00 Reimbursable Expenses $0.00 Total Basic Services, Amendment No. 1 $361,604.00 & Reimbursable expenses Additional Services (Not to Exceed) $151, 122.00 Maximum Total Compensation $512,726.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense 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 expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 13 Revision April 28, 2014 EXHIBIT “C-1” HOURLY RATE SCHEDULE Principal/Senior Program Manager (Rates Reflect a 5% Annual Increase) 1st Year (4 months Aug – Dec 2014) $145.00 2nd Year (12 months Jan – Dec 2015) $152.25 3rd Year (8 months Jan – Aug 2016) $159.86 Scope Labor Categories Est. Hours/Mo Hourly Rate*** Extended Rate Totals Task 1 - Existing Program Implementation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 35 $145.00 $20,300.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 35 $152.25 $63,945.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 35 $159.86 $44,761.50 Total Not to Exceed Task 1 $129,006.50 Task 2 - Metrics Management and Reporting** 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 2 $36,859.00 Task 3 - Quality Control Maintenance 2014 Rate (4 months Sept-Dec) Principal/Senior PM 15 $145.00 $8,700.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 15 $152.25 $27,405.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 15 $159.86 $19,183.50 Total Not to Exceed Task 3 $55,288.50 Task 4 - Webpages and Handouts* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 10 $145.00 $5,800.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 10 $152.25 $18,270.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 10 $159.86 $12,789.00 Total Not to Exceed Task 4 $36,859.00 Task 5 - On-Going Training* 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 5 $18,429.50 Task 6 - Policy Review and Creation 2014 Rate (4 months Sept-Dec) Principal/Senior PM 5 $145.00 $2,900.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 5 $152.25 $9,135.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 5 $159.86 $6,394.50 Total Not to Exceed Task 6 $18,429.50 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 14 Revision April 28, 2014 Summary Totals Total Not To Exceed Amount for 2 Years $294,872.00 * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January ADDITIONAL SERVICES Scope Labor Categories Est. Hours Hourly Rate*** Extended Rate Totals Additional Services - Landscape Review 2014 Rate (4 months Sept-Dec) Principal/Senior PM 41 $145.00 $23,780.00 2015 Rate (12 months Jan-Dec) Principal/Senior PM 41 $152.25 $74,907.00 2016 Rate (8 months Jan-Aug) Principal/Senior PM 41 $159.86 $52,434.90 Total Not to Exceed Additional Services $151,121.90 **Workload would increase during the months of January and February to prepare for the Earth Day Report and SEA Report. ***Hourly rates are subject to a 5% increase each January * Indicates the projected hours would be increased to complete initial work. Number in table represents an average number of hours over 12 months. AMENDMENT No. 1: Hourly Rate Schedule Summary Additional Services Totals Total Not To Exceed Amount for 2 Years $151,121.90 DocuSign Envelope ID: 832B43C1-F49C-46AB-9C6D-F0CC035EF3B0 NOT YET ADOPTED 1 6297/sg Revised November 30, 2015 Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2016 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $145,000 FROM THE BUDGET STABILIZATION RESERVE TO THE DEVELOPMENT SERVICES DEPARTMENT TO PROVIDE ADDITIONAL RESOURCES FOR THE ELECTRIFCATION FEASIBILITY STUDY 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 15, 2015 did adopt a budget for fiscal year 2016; and B. On September 8, 2014 the City Council approved a contract with Integrated Design 360 to assist Staff with the implementation and management of the City’s Green Building Program through September 2016; and C. On December 15, 2014, the City Council approved a Colleagues Memo Regarding Climate Action Plan Implementation Strategy to Reduce Use of Natural Gas and Gasoline Through “Fuel Switching” to Carbon-free Electricity; and D. On February 2, 2015, the City Council approved Staff’s work plan in response to the City Council Colleagues Memo to encourage utility customers to switch from natural gas and gasoline to electricity where appropriate and to reduce the obstacles to such fuel switching; and E. Additional resources are necessary to provide project management, analysis, and additional consultancy services related to the exploration of potential building code changes as part of the evaluation of implementing electrification projects and programs. SECTION 2. Therefore, the sum of One Hundred Forty Five Thousand dollars ($145,000) is hereby appropriated to the Development Services Department offset by a decrease to the Budget Stabilization Reserve. 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 actions taken in this ordinance do not constitute a project requiring environmental review under the California Environmental Quality Act (CEQA). // // NOT YET ADOPTED 2 6297/sg Revised November 30, 2015 INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Administrative Services ____________________________ Director of Development Services CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Re-Titling and Amending Municipal Code Chapter 5.30 (Plastic Foam and Non-Recyclable Food Service Containers and Packaging Items) to Prohibit Sale of Non- Recyclable Plastic Foam at Retail Establishments Such as Grocery Stores, Pharmacies, Mail Service Stores and Hardware Stores (FIRST READING: December 7, 2015 PASSED: 7-0 Scharff not participating, Burt absent) This Ordinance was first heard by Council on December 7, 2015. Below is the action taken by the City Council, adopting the first reading of the Ordinance. Attached you will find the Ordinance. Consent Calendar Adoption of an Ordinance Re-Titling and Amending Municipal Code Chapter 5.30 (Plastic Foam and Non-Recyclable Food Service Containers and Packaging Items) to Prohibit Sale of Non- Recyclable Plastic Foam at Retail Establishments Such as Grocery Stores, Pharmacies, Mail Service Stores and Hardware Stores. MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to approve Agenda Item Numbers 3-9 and continue Agenda Item Number 10- Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement… to December 14, 2015. MOTION PASSED: 7-0 Scharff not participating, Burt absent ATTACHMENTS:  Attachment A: Plastic Service Containers and Packaging Items Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 NOT YET APPROVED 151110 jb 0131491 1 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapter 5.30 (“Expanded Polystyrene and Non-Recyclable Food Service Containers”) to Title 5 (“Health and Sanitation”) of the Palo Alto Municipal Code The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and purpose. The Council finds and declares as follows: (a) The City of Palo Alto is charged with eliminating litter which passes through the storm drain system to no adverse impact by 2022 as part of the Municipal Regional Stormwater Permit. (b) The City is charged with achieving Zero Waste by 2021 and Plastic Foam is not reliably recyclable. (c) Palo Alto’s watersheds reside at the edge of the San Francisco Bay which is part of the Pacific flyway and which protects habitat for two endangered species–the California clapper rail and saltmarsh harvest mouse. (d) The City of Palo Alto desires to protect the natural environment, the health of its citizens, and the economy. This includes exercising environmental stewardship by reducing the amount of Plastic Foam litter released into the City’s watershed and beyond. (e) On February 11, 2009, the San Francisco Bay Regional Water Quality Control Board identified two Palo Alto creeks, San Francisquito Creek and Matadero Creek, as having water quality that is impaired by trash as defined by the Clean Water Act. The staff report recommending that the creeks be listed identifies polystyrene, a predominant source of Plastic Foam, as being one of the types of trash responsible for the impairment. (f) Plastic foam litter was the largest component by count of litter found in Adobe and Matadero Creeks during the 2014 National River and Coastal Clean-up Day events. (g) Plastic foam litter constitutes six percent of the litter collected in storm drains in four Bay Area counties and 149 storm drain inlets based on a study performed by the Bay Area Stormwater Management Agencies Association. (h) Plastic foam litter presents unique management issues because it is lightweight, floats, resists biodegradation, and easily breaks into smaller pieces. Because it is not easily contained, it is often conveyed through storm drains to local creeks, the San Francisco Bay and the Pacific Ocean. These small pieces, similar in size to plankton, are ingested by marine wildlife, leading to reduced appetite and nutrient absorption and possible death by starvation. According to a United Nations Environment Global Program of Action study, at least 162 marine species including most seabirds are reported to have eaten plastics and other litter. NOT YET APPROVED 151110 jb 0131491 2 (i) Recycling Plastic Foam is problematic and not cost-effective. Ongoing logistical and quality control challenges related to the minimal recycling market for Plastic Foam makes maintaining a recycling program for peanuts and blocks financial and operationally infeasible. All Plastic Foam materials must now be disposed of in a landfill. (j) The retail sale or distribution of Plastic Foam undermines the goals of the City of Palo Alto’s ordinance prohibiting the distribution of Plastic Foam foodware at Food Service Establishments and City-sponsored events. (k) Both of the major chemicals used to produce Plastic Foam, benzene (a known human carcinogen) and styrene (a possible carcinogen and neurotoxin), are suspected by the EPA and FDA to leach from polystyrene food containers, posing a threat to the environment and human health. (l) Plastic Foam used at Food Service Establishments is a one-time use product that degrades extremely slowly in nature. (m) There are many suitable reusable, compostable or recyclable alternatives to Plastic Foam foodware, ice chests and packaging materials. (n) The City of Palo Alto provides an organics collection and composting program to residents and Food Service Establishments which can accept paper and compostable foodware for municipal composting. (o) Non-recyclable materials pose a challenge to any environmentally and fiscally responsible solid waste management program. Regulation of Plastic Foam is necessary to encourage a recyclable waste stream and to reduce the disposal of solid waste and the economic and environmental costs of waste management. (p) It is the intent of the Council to reduce the negative impacts of Plastic Foam and encourage the use of recyclable or compostable alternatives through the implementation of this Ordinance. SECTION 2. Chapter 5.30 (Expanded Polystyrene and Non-Recyclable Food Service Containers) of the Palo Alto Municipal Code is hereby amended to read as follows: Chapter 5.30 EXPANDED POLYSTYRENEPLASTIC FOAM AND NON-RECYCLABLE FOOD SERVICE CONTAINERS AND PACKAGING ITEMS Sections: 5.30.010 Definitions 5.30.020 Prohibitions on the Use of Expanded PolystyrenePlastic Foam and Non- Recyclable Plastic 5.30.030 Exemptions NOT YET APPROVED 151110 jb 0131491 3 5.30.040 Operative Dates 5.30.050 Severability 5.30.060 Enforcement and Penalties 5.30.070 Construction and Preemption 5.30.010 Definitions. (a) “ASTM Standard” means meeting the standards of the American Society for Testing and Materials (ASTM) International Standards D6400 or D6868 for biodegradable and compostable plastics and any amendments or successor standards thereto. (a)(b) “City facilitiesFacilities” refers to any building, structure or vehicle owned or operated by the City of Palo Alto, its agents, departments and franchises.; (b)(c) “Disposable food service containerFood Service Container” means single-use disposable product used by food vendorsFood Service Establishments for serving or transporting prepared and ready-to-consume food or beverages. This includes but is not limited to plates, cups, bowls, lids, trays and hinged or lidded containers. This does not include single-use disposable straws, utensils, or hot cup lids.; (c) “Expanded Polystyrene” means a thermoplastic petrochemical material utilizing the styrene monomer, marked with recycling symbol #6, processed by any number of techniques including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, form molding, and extrusion-blow molding (extruded foam polystyrene), sometimes incorrectly called Styrofoam®, a Dow Chemical Company trademarked form of polystyrene foam insulation. In food service, expanded polystyrene is generally used to make cups, bowls, plates, and trays. (c)(d) “Food vendorService Establishment” means any establishment, located or providing food within the City of Palo Alto, which provides prepared and ready- to- consume food or beverages, for public consumption including but not limited to any store,Retail Service Establishment, eating and drinking service (as defined in Title 18), takeout service (as defined in Title 18), supermarket, delicatessen, restaurant, retail food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or other outdoor vendor, or caterer. which provides Prepared Food; (d)(e) “Non-Recyclable Plastic” means all plastics that do not meet the definition of “Recyclable Plastic”. ; (f) “Plastic Foam” shall mean blown expanded and extruded plastic foams made from polystyrene or other resins which are processed by any number of techniques including, but not limited to, fusion of monomer spheres (expanded bead plastic), injection molding, foam molding and extrusion-blown molding (extruded foam plastic). Expanded polystyrene and other plastic foam resins are generally used to NOT YET APPROVED 151110 jb 0131491 4 make disposable cups, bowls, plates, trays, egg cartons, clamshell containers, ice chests, shipping boxes and packing materials. (g) “Plastic Foam Products” shall mean disposable Plastic Foam ice chests, cups, bowls, plates, clamshells, shipping boxes containers, egg cartons, packaging peanuts, packing blocks or other packaging materials that are not wholly encapsulated or encased by a more durable material. Additional Plastic Foam Products may be added by administrative regulation promulgated by the Director of Public Works or his/her designee; (e)(h) “Prepared foodFood” means any food or beverage prepared for consumption using any cooking, packaging, or food preparation technique, including but not limited to cooking, chopping, slicing, mixing, freezing, squeezing, or brewing, and which requires no further preparation to be consumed. Prepared food includes uncooked fruits or vegetables and any, “take-out” food, or food prepared to be consumed off the food vendor’sFood Service Establishment premises. Prepared foodFood does not include any uncooked meat, fish, or poultry, or eggs.; (f)(i) “Recyclable Plastic” means all plastics that can be recycled, salvaged, composted, processed, or marketed by any means other than land-filling or burning, whether as fuel or otherwise, so that they are returned to use by society. Recyclable plasticsPlastics” include any plastic which can be feasibly recycledaccepted for recycling or composting by the City’s municipal recycling program and presently is limited to those plastics with the following recycling symbols: #1 - polyethylene terephthalate (PET or PETE), #2 - high density polyethylene (HDPE), #3 - polyvinyl chloride (PVC), #4 - low density polyethylene (LDPE), #5 - polypropylene (PP), #6 – polystyrene, except for the expanded version of polystyrene, and #7 - other plastics, including compostable plastics such as polylactic acid (PLA) . For purposes of this Chapter, Recyclable Plastic does not include any expanded polystyrenePlastic Foam labeled with recycling symbol #6., or any other Plastic Foam made with other plastic resins; (g)(j) “Retail Service Establishment” shall have the same meaning as Retail Service as defined in Title 18 of this Code. 5.30.020 Prohibition on the Use of PolystyrenePlastic Foam Products and Non-Recyclable Plastic. (a) Except as provided by section 5.30.030 food vendors, Food Service Establishments are prohibited from providing prepared food in disposable food service containersDisposable Food Service Containers made from expanded polystyrene or non-recyclable plastic. Plastic Foam or other Non-Recyclable Plastic; (b) Except as provided by section 5.30.030, Retail Service Establishments are prohibited from selling, leasing or otherwise providing Plastic Foam Products; NOT YET APPROVED 151110 jb 0131491 5 (b)(c) Except as provided by section 5.30.030, all City facilities, City managed concessions, and vendors at City sponsored events, and or City permitted eventsowned facilities are prohibited from using disposable food service containers made from expanded polystyreneDisposable Food Service Containers, packaging or non-recyclable plastic. other products made from Plastic Foam or Non-Recyclable Plastic; (c)(d) Nothing in this Ordinance shall be interpreted to restrict the use or sale of any form of fiber or paper disposable food service container, or the use of any form of biodegradable or plastic food service container meeting ASTM Standards or other products authorized by Administrative Regulation. 5.30.030 Exemptions (a) The following exemptions shall apply: (ai) Foods prepared or packaged outside the City of Palo Alto are exempt from the provisions of this Chapter. Purveyors of food prepared or packaged outside the City of Palo Alto are encouraged to follow the provisions of this Chapter. (b) Coolers and ice chests that are intended for reuse are exempt from the provisions of this Chapter. (cii) The directorDirector of Public Works, or his/her designee, may exempt a food Food Service Establishment, Retail Service Establishment or City facility/vendor from the requirements of this Ordinance for a period of up to one year, upon showing by the food vendorif the applicant for such exemption can demonstrate that the conditions of this Ordinance would cause an undue hardship. An “undue hardship” includes, but is not limited to situations unique to the food vendorapplicant where there are no reasonable alternatives to expanded polystyrenePlastic Foam Products or nonNon-recyclable plastic disposable food service containersPlastic Disposable Food Service Containers and compliance with this Ordinance would cause significant economic hardship to that food vendorapplicant, or cause the food vendorthem to be deprived of a legally protected right. (diii) A food A Food Service Establishment, Retail Service Establishment or City facility/vendor seeking an exemption application shall include all information necessary for the City to make its decision, including but not limited to documentation showing the factual support for the claimed exemption. The Director may require the applicant to provide additional information to permit the Director to determine facts regarding the exemption application. NOT YET APPROVED 151110 jb 0131491 6 (eiv) Emergency Supplies and Service Procurement. City facilities, food vendorsFood Service Establishments, Retail Service Establishments, City franchises, contractors and vendors doing business with the City shall be exempt from the provisions of this chapter, in a situation deemed by the City Manager to be an emergency for the immediate preservation of the public peace, health or safety. 5.30.040 Operative Dates. All food vendors Food Service Establishment, Retail Service Establishments and City facilities and vendors must comply with the requirements of this Ordinance by April 22, 2010March 1, 2016. 5.35.050 Severability. If any provision or clause of this chapter is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this chapter, and clauses of this chapter are declared to be severable. 5.35.060 Enforcement and Penalties (a) The Director of Public Works or his/her designee shall have primary responsibility for enforcement of this chapter. The Director of Public Works or his or her designee is authorized to promulgate regulations and to take any and all other actions reasonable and necessary to enforce this chapter, including, but not limited to, entering the premises of any Food Provider to verify compliance. (a)(b) Anyone violating or failing to comply with any of the requirements of this Chapter shall be guilty of an infraction as set forth in Chapter 1.08 of the Palo Alto Municipal Code. (b)(c) Anyone violating or failing to comply with any of the requirements of this Chapter shall be subject to an administrative penalty or administrative compliance order as set forth in Chapters 1.12 and 1.16 of the Palo Alto Municipal Code. (c) Each and every sale or other transfer of disposable food service containers made from expanded polystyrene or non-recyclable plastic shall constitute a separate violation of this Ordinance. (d) The remedies and penalties provided in this Section are cumulative and not exclusive. 5.35.070 Construction and Preemption This Chapter and any of its provisions shall be null and void upon the adoption of any state or federal law or regulation imposing the same, or essentially the same limits on the use of prohibited products as set forth in the Chapter. This Chapter is NOT YET APPROVED 151110 jb 0131491 7 intended to be a proper exercise of the City’s police power, to operate only upon its own officers, agents, employees and facilities and other persons acting within its boundaries, and not to regulate inter-city or interstate commerce. It shall be construed in accordance with that intent. SECTION 3. On April 27, 2009 the City Council adopted a Negative Declaration with respect to the City’s earlier prohibition against food establishments’ use of extended polystyrene products. The Council hereby finds that this ordinance’s extension to other foam products and further applicability to retail service establishments would not result in any additional impacts not already analyzed under the earlier Negative Declaration. The City has prepared an addendum to the Negative Declaration to clarify the extended scope. SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Assistant City Attorney City Manager ____________________________ Director of Public Works CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Section 18.08.040 (Zoning Map and District Boundaries) of the Palo Alto Municipal Code to Change the Classification of Certain Properties on Greer Road, Amarillo Avenue, Metro Circle and Moffett Circle, a Portion of That Property Known as Greer Park, Tract Number 796, From R-1 to R-1-S (FIRST READING: November 30, 2015 PASSED: 9-0) This was heard by the Council on November 30, 2015 and is now before you for the second reading. The motion and results are listed below. MOTION: Vice Mayor Schmid moved, seconded by Council Member Wolbach to adopt an Ordinance reflecting the applicant-requested Greer Park North boundary for rezoning to R-1-S, Single Story Overlay (SSO) zone district. MOTION PASSED: 9-0 ATTACHMENTS:  Attachment A: Greer Park SSO Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 ATTACHMENT A *NOT YET APPROVED* 151005 jjs 0160087 1 Ordinance No. XXXX Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 (Zoning Map and District Boundaries) of the Palo Alto Municipal Code to change the classification of certain properties on Greer Road, Amarillo Avenue, Metro Circle and Moffett Circle, a portion of that property known as Greer Park, Tract #796, from R-1 to R-1-S The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. The Planning and Transportation Commission, after duly noticed hearing held October 14, 2015, has recommended that section 18.08.040 (the Zoning Map) of the Palo Alto Municipal Code be amended as hereinafter set forth. B. The City Council, after due consideration of this recommendation, finds that the proposed amendment is in the public interest and will promote the public health, safety and welfare. SECTION 2. Section 18.08.040 (Zoning Map and District Boundaries) is hereby amended by changing the zoning of a portion of that property known as Greer Park, Tract #796 (the “subject property”), from “R-1 Single-Family Residence” to “R-1-S Single-Family Residential, Single-Story Height Combining.” The subject property is shown on the map labeled ‘Exhibit A’ attached hereto and incorporated herein by reference. The properties within the Single Story Overlay boundary include all homes fronting on Metro Circle and Moffett Circle, 11 homes facing Amarillo Avenue (from 1020 to 1074 Amarillo Avenue), and 14 homes fronting on Greer Road (from 2701 to 2889 Greer Road). SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline section 15305, Minor Alterations in Land Use Limitations. // // ATTACHMENT A *NOT YET APPROVED* 151005 jjs 0160087 2 SECTION 5. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Planning & Community Environment City of Palo Alto (ID # 6417) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Council Priority: Emergency Preparedness Summary Title: Adoption of Emergency Operations Plan Title: Adoption of the City of Palo Alto Emergency Operations Plan (EOP) and Update of Membership of the Palo Alto/Stanford Citizen Corps Council From: City Manager Lead Department: Office of Emergency Services Recommendation Staff requests that the City Council 1) adopt by Resolution the enclosed updated City of Palo Alto Emergency Operations Plan (EOP); and 2) consent to the updated Palo Alto/Stanford Citizen Corps Council (CCC) membership list. Background The City of Palo Alto Emergency Operations Plan (EOP) is a foundational document for emergency management for City staff, key partners, and the community. The City’s Office of Emergency Services (OES) is responsible for the review, revision, management, and distribution of the EOP. The EOP basic plan requires 1) review by the Emergency Services Council (ESC) and Palo Alto/Stanford Citizen Corps Council (CCC) and 2) adoption by the City Council. Discussion In January 2015, the cities of Los Altos, Mountain View, Palo Alto, and Sunnyvale (a.k.a. North County) selected a consulting firm, Tetra Tech, to develop a shared EOP (base plan). The firm was paid from an emergency preparedness grant (with the City of Sunnyvale as the fiduciary). Because the North County jurisdictions 1) commonly work together with regard to public safety and 2) desire to build a capability to cross-staff and/or co-locate Emergency Operations Center (EOC) and other such facilities, the concept of a common-format EOP was desired. In May 2015, Palo Alto hosted a meeting with the consulting firm and the EOP planning team from the North County jurisdictions with over 50 representatives of North County neighborhoods, Emergency Services Volunteers (ESVs), non-governmental organizations (such as the Red Cross), schools, private sector businesses, and other such stakeholders. City of Palo Alto Page 2 The North County planning team also desired to include current best management practices in the format of the new EOP, including keeping the basic plan (sometimes called a base plan) as concise as possible (to maximize utility and accessibility), comport with the Federal Emergency Management Agency (FEMA) comprehensive preparedness guidance1, and follow the State of California Office of Emergency Services EOP crosswalk.2 In October 2015, City OES staff received the draft EOP from the consultant and began a review process with the Emergency Services Council (ESC) and Palo Alto/Stanford Citizen Corps Council (CCC) in accordance with Municipal Code Section 2.12.080 in November 2015. On November 18, 2016, the ESC/CCC recommended that this EOP be presented to the City Council for approval. Citizen Corps Council Membership Update Because of staffing changes at the Palo Alto Medical Foundation (PAMF), Jerry Glotzer has replaced Sheri Klapper. Staff requests that Council consent to this roster update in accordance with Palo Alto Municipal Code section 2.12.030(5). Resource Impact No impact is anticipated. Policy Implications Approval of this Resolution is consistent with current City policies and regulations regarding homeland security and emergency management. Environmental Review This staff report does not represent a project under the California Environmental Quality Act (CEQA). Attachments:  ATTACHMENT A - Reso Adopting Emergency Operations Plan January 2016 (PDF)  ATTACHMENT B - DRAFT Emergency Operations Plan January 2016 (PDF) 1 CPG 101 https://www.fema.gov/media-library-data/20130726-1828-25045- 0014/cpg_101_comprehensive_preparedness_guide_developing_and_maintaining_emergency_operations_plans_20 10.pdf 2 http://www.caloes.ca.gov/PlanningPreparednessSite/Documents/Emergency%20Operations%20Plan%20Crosswalk %20for%20Plan%20Review%202011.doc *NOT YET APPROVED* Attachment A 151207 jjs 0170015 1 Resolution No. __________ Resolution of the Council of the City of Palo Alto Adopting the City of Palo Alto Emergency Operations Plan (EOP) dated January 2016 RECITALS A. The City of Palo Alto has developed an updated Emergency Operations Plan (EOP) in order to help coordinate resources to make our community safer and better prepared to deal with all hazards. B. The Palo Alto/Stanford Citizen Corps Council is part of the Emergency Services Council as provided by Palo Alto Municipal Code section 2.12.030(5), stating that members include "Such representatives of civic, business, labor, veterans, professional or other organizations having an official emergency responsibility, as may be appointed by the City Manager with the advice and consent of the city council." C. Per Palo Alto Municipal Code section 2.12.080, the Citizen Corps Council and the Emergency Services Council recommend that the City Council adopt the new EOP. The City Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. The City Council hereby adopts the Emergency Operations Plan (EOP) dated January 2016, attached hereto and incorporated herein by reference. SECTION 2. The City Council hereby consents to the updated Palo Alto/Stanford Citizen Corps Council (CCC) membership list. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ______________________________ City Clerk Mayor *NOT YET APPROVED* Attachment A 151207 jjs 0170015 2 APPROVED AS TO FORM: APPROVED: ___________________________ ______________________________ City Attorney City Manager _____________________________ Fire Chief _____________________________ Director of Administrative Services City of Palo Alto Emergency Operations Plan Section I – Basic Plan EMERGENCY OPERATIONS PLAN BASIC PLAN Draft Pending City Council Adoption: January 2016 City of Palo Alto Emergency Operations Plan Table of Contents I TABLE OF CONTENTS Forward ........................................................................................................................................................ iv Document Management and Distribution ...................................................................................................... v Revision History ............................................................................................................................................ vi Certification of Biennial Review ................................................................................................................... vii City Council Resolution ................................................................................................................................viii Introduction ...................................................................................................................................................... 1 Purpose ......................................................................................................................................................... 1 Scope ............................................................................................................................................................ 1 Limitations..................................................................................................................................................... 2 Situation ........................................................................................................................................................ 2 Planning Assumptions.................................................................................................................................... 2 Emergency Management Organization ............................................................................................................. 4 Office of Emergency Services ......................................................................................................................... 4 Preparedness................................................................................................................................................. 4 Planning..................................................................................................................................................... 5 Training ..................................................................................................................................................... 5 Exercises .................................................................................................................................................... 5 Public Awareness and Education ................................................................................................................ 6 Response ....................................................................................................................................................... 6 Pre-Event Response ................................................................................................................................... 6 Emergency Response ................................................................................................................................. 6 Recovery ....................................................................................................................................................... 7 Short-term Recovery .................................................................................................................................. 7 Long-term Recovery................................................................................................................................... 7 Disaster Assistance Programs..................................................................................................................... 7 Damage Assessment .................................................................................................................................. 7 Recovery Documentation .......................................................................................................................... 8 Recovery Organization ............................................................................................................................... 8 After Action Report .................................................................................................................................... 8 Mitigation ...................................................................................................................................................... 8 Whole Community Approach ......................................................................................................................... 9 Citizen Corps Council ................................................................................................................................. 9 City of Palo Alto Emergency Operations Plan Table of Contents II Private Sector ............................................................................................................................................ 9 People with Disabilities .............................................................................................................................. 9 Individuals with Access and Functional Needs .......................................................................................... 10 Considerations for Pets and Other Animals .............................................................................................. 10 Concept of Operations .................................................................................................................................... 11 Field Level Coordination: ICS ........................................................................................................................ 11 Local, Regional & State Level Coordination: SEMS ........................................................................................ 11 Field Response ......................................................................................................................................... 11 Local Government ................................................................................................................................... 12 Operational Area ..................................................................................................................................... 12 Regional................................................................................................................................................... 12 State ........................................................................................................................................................ 12 Federal Coordination: NIMS ......................................................................................................................... 12 Additional Coordination: North County Jurisdictions .................................................................................... 12 North County EOC.................................................................................................................................... 13 Mutual Aid .................................................................................................................................................. 13 Alert and Warning .......................................................................................................................................... 14 Emergency Alert System (EAS) ..................................................................................................................... 14 AlertSCC ...................................................................................................................................................... 14 Integrated Public Alert and Warning System (IPAWS) .................................................................................. 14 Additional Systems ...................................................................................................................................... 14 Emergency Operations Center ........................................................................................................................ 15 Primary and Alternate EOC Locations........................................................................................................... 15 EOC Activation and Deactivation.................................................................................................................. 15 EOC Activation Levels............................................................................................................................... 15 EOC Communication and Coordination ........................................................................................................ 16 Notification and Mobilization................................................................................................................... 16 Internal Communications & Coordination ................................................................................................ 16 External Communications & Coordination ............................................................................................... 17 Position Descriptions and Responsibilities ................................................................................................... 17 EOC Structure .......................................................................................................................................... 17 Department Responsibilities ........................................................................................................................ 17 Emergency Declarations ................................................................................................................................. 21 City of Palo Alto Emergency Operations Plan Table of Contents III Local Proclamation ...................................................................................................................................... 21 State of Emergency...................................................................................................................................... 21 State of War Emergency .............................................................................................................................. 22 Presidential Declaration ............................................................................................................................... 22 Other Powers .............................................................................................................................................. 22 Continuity of Government .............................................................................................................................. 23 Lines of Succession ...................................................................................................................................... 23 Essential Facilities: Alternate Seat of Government ....................................................................................... 23 Preservation of Vital Records ....................................................................................................................... 24 Attachment 1: Authorities and References ..................................................................................................... 23 Local Authorities & References .................................................................................................................... 23 State Authorities & References .................................................................................................................... 23 Federal Authorities & References ................................................................................................................ 23 Attachment 2: Sample Proclamation .............................................................................................................. 24 City of Palo Alto Emergency Operations Plan Forward IV FORWARD This City Emergency Operations Plan (EOP) outlines how the City of Palo Alto government complies with and implements the requirement of the California Emergency Services Act to protect the lives and property of the community of the City of Palo Alto. The EOP is organized and defined as follows:  This Basic Plan (also referred to as EOP in this document) presents the planning assumptions, policies, and concept of operations that guide the responsibilities for emergency preparedness, prevention, response, recovery and mitigation for the City of Palo Alto. There are a number of City plans and other documents that support or relate to this Basic Plan and are categorized as Functional Annexes or Hazard Annexes:  Functional Annexes include more detailed information on Direction and Control, Alert and Warning, and Emergency Operations Center (EOC) Position Checklists. This category also includes EOP-related City plans. o Emergency Operations Center Manual (includes EOC Position Checklists) o Local Hazard Mitigation and Adaptation Plan (LHMAP, formerly LHMP) o Threats and Hazards Identification and Risk Assessment (THIRA) o Continuity of Governance / Continuity of Operations (COOP/COG) o Damage Assessment o Mass Care and Shelter o Recovery o Local Energy Assurance Plan (LEAP) o Emergency Public Information and Warning (EPIW) o Communications o Foothills Fire Management Plan (Community Wildfire Protection Plan (CWPP)) o Airport Emergency Plan (including aircraft incidents not at the Palo Alto Airport) o Department Emergency Plans (DEPs) and other related procedures o Public Health and Medical Services (pandemic, etc.) o Multi Agency Coordination (MAC) plans  Hazard Annexes includes City plans for specific hazards. o Storm/Flood o Earthquake o Terrorism/Major Criminal Event o Major Fire, Hazardous Materials (HazMat) or Mass-Casualty Event As explained below, this EOP Basic Plan is subject to various review and approval processes, whereas the various annexes are not. It is also important for the reader to understand that there is a panoply of other planning documents that are applicable to the City, the region, the state, and so forth. It is not practical or requisite to list those herein, but some of the primary regulations and such are found in Attachment 1. City of Palo Alto Emergency Operations Plan Document Management and Distribution V DOCUMENT MANAGEMENT AND DISTRIBUTION The City’s Office of Emergency Services (OES) is responsible for the review, revision, management, and distribution of the City of Palo Alto EOP. The Emergency Operations Plan (EOP) Basic Plan, as defined above, will be reviewed on a biennial basis by the City's Office of Emergency Services (OES). The EOP may be modified at any time as a result of a post-incident or post-exercise evaluation, and changes in responsibilities, procedures, laws or regulations. In accordance with the Palo Alto Municipal Code, new versions of the EOP are reviewed by the City's Emergency Services Council (ESC) and Palo Alto/Stanford Citizen Corps Council (CCC) and subsequently approved and adopted by City Council (resolution). The EOP will be distributed to the City's Executive Leadership Team (City staff), to key partners, and will be posted on the City's website for public reference. City of Palo Alto Emergency Operations Plan Document Management and Distribution VI REVISION HISTORY Revision Date Section(s) of Plan Revised Revised By City of Palo Alto Emergency Operations Plan Document Management and Distribution VII CERTIFICATION OF BIENNIAL REVIEW The Office of Emergency Services has reviewed this Emergency Operations Plan and hereby certifies the review. Date Name/Department/Agency Signature City of Palo Alto Emergency Operations Plan Section I – Basic Plan VIII CITY COUNCIL RESOLUTION This shall be the official Emergency Operations Plan for the City of Palo Alto and shall supersede previous plans. Nothing in this plan shall be construed in a manner that limits the use of good judgment and common sense in matters not foreseen or covered by the elements of the plan or any appendices hereto. The plan is promulgated under the authority of the City Manager, ratified by the City Council, after having been reviewed by the City of Palo Alto's Emergency Services Council (which includes the Palo Alto/Stanford Citizen Corps Council), per Palo Alto Municipal Code Section 2.12.080. See City Council Resolution attached to this version of the EOP. City of Palo Alto Emergency Operations Plan Section I – Basic Plan Section I: Basic Plan 1 INTRODUCTION The Emergency Operations Plan (EOP) for the City of Palo Alto outlines authorities, organizational structures, and procedures used to coordinate activities related to local and regional emergencies or disasters. The City and surrounding region are susceptible to a number of hazards such as natural disasters and human- caused events, as well as technological failures and pandemics.1 Accordingly, the EOP utilizes an “all-hazards” approach to ensure the City is able to prepare for, respond to, recover from, and mitigate (to the extent possible) all potential hazards and critical incidents. PURPOSE The primary purpose of the EOP is to: 1) Identify roles and responsibilities for City departments as they pertain to preparedness, response, recovery, and mitigation activities 2) Codify the City’s understanding and adoption of state and federal constructs2 through which operational coordination, mutual aid, and other requests for support will be integrated 3) Serve as a foundational document for additional plans of the City, as well as be referenced in plans of other governments, non-governmental organizations, and other entities (private businesses, etc.) 4) Comply with state and federal laws and regulations such as the California Emergency Services Act3 SCOPE The EOP serves as the foundational document for the City’s emergency management activities. While all City resources may be called upon as needed, specific departmental responsibilities are outlined in the EOP Basic Plan and associated annexes. To ensure the City is adequately prepared, all City departments are required to actively participate in preparedness and planning activities to include the development of departmental plans, policies, and procedures as necessary to fulfill their assigned roles and obligations. The EOP embraces the Federal Emergency Management Agency's (FEMA) "Whole Community" approach to emergency management and, in addition to City resources, recognizes the roles of special districts, non- governmental organizations (NGOs), community-based organizations (CBOs), faith-based organizations (FBOs), private-sector businesses, educational organizations, and other stakeholders. Additionally, the EOP is intended to reflect the wide variety of support that may be required by residents, visitors, and businesses, including people with disabilities and others with access or functional needs. Consideration for people with disabilities, access or functional needs will be given in all aspects of City emergency planning. Certain groups and organizations will need to interface with the City's Emergency Operations Center (EOC) and among each other, including in circumstances where normal telecommunications may be impaired. By understanding the elements of this plan, the City and such organizations can facilitate that process. All members of the community should understand the potential risks and hazards we face and the obligation to prepare personally, at a family level, and in one's organization. 1 There are two main documents that outline local risk analysis: Local Hazard Mitigation and Adaptation Plan and the Palo Alto Threat and Hazard Identification and Risk Assessment (THIRA). See www.cityofpaloalto.org/thira 2 For example: This EOP is based on the functional elements of California’s Standardized Emergency Management Systems (SEMS). SEMS is established by State Law (Chapter 1 of Division 2 of Title 19 of the California Code of Regulations). 3 California Emergency Services Act (Chapter 7 of Division 1 of Title 2 of the Government Code) 2 LIMITATIONS While many of the elements outlined in the EOP are designed for flexibility and can be utilized as-needed to address a number of emergency and non-emergency events, some activities require special activation or a formal disaster declaration by the City Council or others. Similarly, the EOP is not meant to outline procedures for routine incidents or minor emergencies which are adequately addressed through existing processes. The EOP identifies operational strategies and plans for managing inherently complex and potentially catastrophic events. City assets, resources, and departments are potentially vulnerable and may become overwhelmed. Deviations from the organizational and response structures outlined in the EOP may be required, based upon evolving needs and available resources. With this in mind, the EOP is designed to promote flexibility whenever possible and is not intended to limit the use of good judgment and common sense in matters not foreseen or adequately addressed by elements of the EOP and its associated annexes, appendices, or plans. SITUATION Emergency management is based on an understanding of community risk. The City has undergone multiple hazard analysis processes per FEMA's Comprehensive Preparedness Guide 201 (CPG 201). This current best practice places risk into three categories: natural, technological (accidental), and human-caused (deliberate). Detailed information regarding Palo Alto's geography, demographics, and hazards potentially impacting the City are detailed in the Palo Alto Threat and Hazard Identification and Risk Assessment (THIRA) as well as the Santa Clara County Local Hazard Mitigation and Adaptation Plan (LHMAP). PLANNING ASSUMPTIONS The following assumptions were used during the development of the EOP and are recommended for the readers' own plans:  The City of Palo Alto is susceptible to a number of hazards and risks that may result in critical incidents  Critical incidents include a variety of natural, technological, or human-made emergencies and disasters  Some critical incidents may have advance warning while others will not  All City departments will participate in planning and preparedness activities as required  City personnel will be adequately trained to perform the roles in which they are assigned  The City's EOC will be partially or fully activated to support operations during critical incidents  City personnel may be unable or unavailable to report to work or as assigned  Non-essential City operations may be reduced or cancelled in order to prioritize resources  Mutual aid and other assistance will be requested when City resources are inadequate, but outside assistance and support may be unavailable for extended periods of time  Communications equipment and infrastructure may be damaged or disrupted  Transportation infrastructure may be damaged or disrupted and access to critical facilities may be blocked  Critical infrastructure and utilities such as natural gas, water, and electricity may be severely impacted 3  Residents, businesses, and other entities may need to be self-sufficient for one week or more  Additional planning, resources, and support will be needed to support people with disabilities and others with access and functional needs 4 EMERGENCY MANAGEMENT ORGANIZATION As defined by Palo Alto Municipal Code (PAMC) Sec. 2.12.070, the City’s Emergency Organization includes:  All officers and employees of the City;  All volunteer forces enrolled to aid them during an emergency (registered Emergency Services Volunteers);  All groups, organizations, and persons who may by agreement or operation of law be charged with duties incident to the protection of life and property in the City. The City Manager is the leader of the City's Emergency Organization and is the statutory director of emergency services. During an emergency when the EOC is activated, the City Manager manages and directs all aspects of the City‘s emergency response and recovery operations and may delegate authority and tasks to staff. In the absence of the City Manager, another staff member is selected to function as the City Manager. OFFICE OF EMERGENCY SERVICES The Municipal Code, as part of the Emergency Organization, also cites the Office of Emergency Services (OES), which operates as a public safety department. The Director of Emergency Services (Emergency Services Chief) directs the activities of the Office of Emergency Services and is the statutory assistant director of emergency services. The Director of Emergency Services reports to the City Manager and assists in coordinating the City‘s overall response and recovery operations. The Director of Emergency Services also acts as the City government‘s key representative and lead agent for day-to-day emergency management, with powers delegated through the Municipal Code4 to: 1. Direct coordination and cooperation of services and staff of the emergency organization of the City, and resolve questions of authority and responsibility that may arise between them; and 2. Represent the City in all dealings with public or private agencies on matters pertaining to emergencies To achieve this mandate, OES leads or coordinates planning, intelligence, and coordination, not only internally but also with allied agencies such as Stanford University, the private sector, and the community to promote, coordinate, and advance the four phases of emergency management: preparedness, response, recovery, and mitigation. PREPAREDNESS The Preparedness Phase includes activities undertaken prior to an emergency in order to improve the City’s ability to coordinate, respond, and recover from a critical incident. These activities focus on maintaining or improving capabilities that will be used in the response or recovery phases. The City’s preparedness activities emphasize emergency planning and training as well as public education and outreach. The City also conducts drills and exercises regularly in order to validate ongoing activities, identify areas for improvement, and prioritize or justify future effort and funding. In recognition of the number and wide variety of potential hazards facing the region, the City has adopted an “all-hazards” approach to planning and preparedness. While not restricting the development of specialty or tactical plans, this model focuses on the development of core capabilities through which the full spectrum of potential hazards and critical incidents can be addressed. 4 See Palo Alto Municipal Code (Section 2.12.050(b)) 5 Planning Emergency planning includes a wide variety of plans at the strategic, operational, and tactical levels. Strategic plans include the EOP and many of its associated hazard specific or functional annexes, while operational and tactical planning includes more granular information such as standard operating procedures (SOP), checklists, personnel assignments, notification rosters, and resource lists. All City departments are required to participate in the development of relevant strategic and operational plans while ensuring that internal tactical planning is sufficient to meet the needs of their outlined roles and assigned objectives. This includes the development of department specific SOPs required to meet the objectives outlined for each department. Training Training is an essential component of preparedness and greatly impacts the City’s ability to respond to, and recover from, a critical incident. The City's Office of Emergency Services maintains a Staff Development Program (SDP) and works with other City departments to develop training for staff. The City actively manages training activities and allocates funding in relation to fluctuating needs, personnel turnover, and course availability. In addition, the City consistently prioritizes training that promotes staff understanding and familiarity with the following concepts:  Incident Command System (ICS)  California Standardized Emergency Management System (SEMS)  National Incident Management System (NIMS)  California Disaster Service Worker (DSW)5 In addition to staff training, the Office of Emergency Services also provides training to the City's Emergency Services Volunteer (ESV) program members and further partners with Stanford University, local businesses, and other entities to develop and provide training and public safety public education. Exercises Exercises are the primary tool for assessing preparedness activities and identifying areas for improvement while allowing all levels of personnel to simulate their response and recovery roles in a learning environment. The City follows the best practices of the Homeland Security Exercise and Evaluation Program (HSEEP), including the building block concept of seminars, small-scale tabletop exercises, functional exercises, and full scale exercises. The City uses a wide variety of exercises to regularly assess critical capabilities and prioritize future planning and training needs. By simulating potential response or recovery scenarios, the City is able to validate existing plans while determining if and where additional training is required. 5 See California Government Code (Section 3100), government employees (excluding non-naturalized aliens) are Disaster Service Workers. When a disaster occurs, each employee will be expected to perform certain duties to assist the community in returning to normal as soon as possible. Certain registered volunteers may also be Disaster Service Workers. 6 Public Awareness and Education The City and its partners actively promote public awareness and education in order to strengthen overall preparedness and community resilience. By providing community education, outreach, training, and coordination, the City increases the ability of community members and organizations to adequately prepare for and meet their own needs. By promoting self-reliance and individual preparedness, the City reduces the overall burden on limited resources and competing needs that emerge during critical incidents. RESPONSE The Response Phase includes any actions taken immediately before, during, or directly after a critical incident in order to minimize the potential or existing impacts of the incident. Pre-Event Response Some incidents may provide sufficient warning to allow for pre-event or precautionary measures. Depending upon the probability and likelihood of significant impacts, pre-event response activities may include:  Public Warning  Evacuations  Resource Mobilization  Staging  Mutual Aid Requests  Proclamation of a Local Emergency Emergency Response Emergency response activities are actions taken during, or in the immediate aftermath, of a critical incident to reduce actual impacts. While these activities are most often associated with traditional response agencies including law enforcement, fire protection, emergency medical services (EMS), utilities, and public works, the size and complexity of an incident may require robust support from additional governmental agencies, nongovernmental organizations (NGOs), and other partners. As a result, comprehensive stakeholder participation during the development and socialization of relevant strategic, operational, and tactical plans can greatly enhance the efficiency and effectiveness of these emergency response activities. When coordinating emergency response activities and addressing competing needs and objectives, the City utilizes the following prioritization hierarchy: 1) Support Life Safety 2) Protect Property & Infrastructure 3) Reduce Impacts to the Environment Emergency response may also include activities related to short-term recovery and often overlaps with long- term recovery operations. 7 RECOVERY The Recovery Phase includes short- and long-term activities focused on returning the community to pre- incident conditions. In some instances when a state or federal disaster declaration has been made, recovery activities include the critical task of identifying, documenting, and quantifying response and recovery costs eligible for reimbursement. Short-term Recovery Short-term recovery operations begin during the response phase and may include activities such as the restoration of essential services, rapid debris removal, and the reestablishment of City services. Long-term Recovery Long-term recovery operations are often required to address extensive damage to infrastructure. Activities include the restoration and reconstruction of public facilities and disaster response cost recovery. Disaster Assistance Programs Disaster assistance programs may be available for the following:  Individuals – may be eligible for loans and grants for housing assistance programs (for homeowners and renters), and uninsured disaster-related necessities (including personal property, medical, dental, and transportation expenses). Other Stafford Act Programs including crisis counseling, disaster unemployment assistance, and legal services may be available. In addition, various NGOs such as the American Red Cross, Mennonite Disaster Services, and the Salvation Army provide recovery assistance to individuals, families, and community organizations. Assistance may include basic necessities such as food, shelter, clothing, and housing reconstruction.  Businesses – may be eligible for low-interest loans to assist with uninsured physical damage through the U.S. Small Business Administration (SBA). Programs for agricultural assistance in the form of low- interest loans for economic losses may be available through the U.S. Department of Agriculture (USDA).  Government – assistance is available through state assistance under the California Disaster Assistance Act (CDAA), as well as several federal programs including the Federal Emergency Management Agency (FEMA) Public Assistance (PA) Grant Program and the Hazard Mitigation Grant Program (HMGP).  Non-profit organizations – assistance is available through state assistance under the CDAA, as well as several federal programs including FEMA PA Grant Program for eligible non-profit organizations. Damage Assessment Damage assessment activities involve identifying, recording, compiling, and analyzing damage information in order to determine the type of recovery assistance needed. Following major disasters, a process known as a Preliminary Damage Assessment (PDA) is used to determine preliminary eligibility for certain state and federal financial assistance and reimbursement programs.6 6 See the City of Palo Alto Damage Assessment Plan for details. 8 Recovery Documentation Documentation is the key to recovering eligible emergency response and recovery costs. Damage assessment documentation will be critical in establishing the basis for eligibility of disaster assistance programs. Various state and federal assistance programs require different types of documentation for eligible costs and in addition to structural damage, may include staff time, equipment, and materials utilized in response to the incident. To support the maximum recovery of eligible reimbursement, City departments and agencies must identify and support internal mechanisms for tracking and documenting appropriate costs. Recovery Organization The City Manager and the Director of Emergency Services are responsible for the overall management of the recovery operations. Senior staff from the Office of Economic Development, Planning and Community Environment Department, and the Development Services Department will serve as Unit Leaders in the City’s recovery organization. After Action Report As part of the recovery phase, and in accordance with SEMS, the State of California requires any city and/or county declaring a local emergency for which the governor proclaims a state of emergency, to complete and transmit an after action report to the California Office of Emergency Services (Cal OES) within 90 days of the close of the incident period. The after action report should include the following information:  Documentation of response activities  Identification of both problems and successes during emergency operations  Analysis of the effectiveness of the SEMS components  Plan of action for implementing improvements  Cal OES After-Action Questionnaire MITIGATION The Mitigation Phase includes actions and measures taken to reduce or eliminate the degree of long-term risk from natural and technological hazards. Whereas preparedness activities increase the City’s ability to respond to the impacts of a hazard, mitigation activities reduce the potential for those impacts in the future, thereby reducing overall risk. A number of mitigation activities are available and may include the implementation, augmentation, or promotion of the following:  Building and Safety Codes  Disaster/Fire/Flood Insurance  Land Use Planning and Management  Hazard Research and Analysis  Land and Repetitive Loss Acquisition  Monitoring and Inspection  Public Outreach and Education  Relocation  Risk Mapping  Safety Codes, Statutes, and Ordinances  Tax Incentives and Disincentives  Seismic Strengthening or Retrofitting The City participates in local and regional mitigation activities such as the development of risk assessments and mitigation plans. Further, the City’s Comprehensive Plan (General Plan) includes mitigation aspects and elements. 9 WHOLE COMMUNITY APPROACH The City’s ability to respond and recover from significant emergencies and major disasters is highly dependent upon planning for the unique needs and specific requirements of the City’s residents and non-resident commuters and visitors. To further identify and meet these needs, the City has adopted a “Whole Community” approach in which the inclusion and integration of community partners, neighbors, and other stakeholders are actively promoted in all phases of emergency management. Through these collaborative efforts, the City will become more resilient and better prepared to meet the needs of its residents and daytime populace alike, especially those with disabilities and others with access and functional needs. Citizen Corps Council The Palo Alto/Stanford Citizen Corps Council (CCC) serve to harness the power of individuals, businesses, and organizations through education, training, and volunteer service. Further, the City of Palo Alto OES sponsors an Emergency Services Volunteers (ESV) program which includes various categories: ARES/RACES (ham radio), Block Preparedness Coordinators (BPC) & Neighborhood Preparedness Coordinators (NPCs), Community Emergency Response Team (CERT), and the Medical Reserve Corps (MRC) volunteers. As noted above, by local ordinance, ESVs are a part of the City's Emergency Organization.7 The Palo Alto OES may deploy ESVs to function in various capacities in support of City departments or mutual aid partners. Depending upon the incident, ESVs may support specific response objectives in the field, at DOCs or otherwise in accordance with existing protocols/plans and direction from OES. Private Sector The City of Palo Alto is home to a diverse and vibrant business community including traditional retail and entertainment sectors as well as some of the largest and well-known companies in the world. Representing tens of thousands of employees, the business community swells the City’s daytime population and serves as a foundation for economic prosperity. The City actively engages with the private sector to better understand their needs, identify resources, and develop partnerships. Many of the City’s private sector partners proactively address preparedness planning internally as a way to minimize business disruptions and to support the wellbeing of their employees and also offer their resources and technical capabilities to the larger community. The City acknowledges this valuable support and will continue collaborative efforts with the private sector as an integral component of the City’s overarching emergency management program. People with Disabilities People with disabilities often require additional planning and support to ensure they receive equal access and coverage as required under the Stafford Act8 as well as other state and federal legislation such as the Americans with Disabilities Act (ADA) of 19909. Covered disabilities are not always apparent and may include impairments of mobility, vision, and hearing as well as some cognitive disorders and mental illnesses. 7 See Palo Alto Municipal Code (Section 2.12.070) 8 See Robert T. Stafford Disaster Relief and Emergency Assistance Act (Public Law 93-288, as amended, 42 U.S.C. 5121) 9 See Americans With Disabilities Act of 1990 (Pub. L. No. 101-336, 104 Stat. 328 [1990]) 10 The City has a diverse population which includes a wide variety of people with disabilities. To meet the needs of these individuals, the City is committed to supporting efforts and activities designed to improve and validate capabilities in support of people with disabilities, including but not limited to:  Notification and warning procedures  Evacuation, transportation, and sheltering considerations  Accommodations for Service Animals  Accessibility to information In addition, the City looks to integrate people with disabilities and their advocates directly into preparedness activities such as plan development and review. These efforts have included targeted outreach to publicize the development of this EOP and solicit input and participation in the subsequent development and review of associated operational annexes and appendices. Individuals with Access and Functional Needs In addition to people with disabilities, the City recognizes that additional support may also be needed to support those with “access and functional needs”. Access and functional needs are not necessarily related to a specific condition, diagnosis, or impairment and are based upon functional areas such as:  Maintaining independence  Effective communication  Transportation  Supervision  Medical care Individuals with access and functional needs may not have access to support networks outside of their immediate communities or be able to self-evacuate. As a result, they may have additional needs before, during, and after an incident. Those with functional needs often include children, the elderly, tourists, and other segments of the population, including:  People with disabilities  People living in institutionalized settings  People from diverse cultures  People with limited English proficiency  People without transportation  People who are economically disadvantaged Considerations for Pets and Other Animals As a result of deficiencies in emergency planning uncovered in the aftermath of Hurricane Katrina, the federal government passed the Pets Evacuation and Transportation Standards (PETS) Act in 2006 as an amendment to the Stafford Act. Recognizing the unwillingness of many displaced individuals to take advantage of evacuation or shelter resources without accommodating for their pets or companion animals, the PETS Act directs that state and local preparedness plans address the needs of individuals with pets and companion animals during a disaster or emergency. The City works to include considerations for the needs of pets and companion animals in plans as appropriate. Furthermore, although not required under the PETS Act, additional resources for the evacuation of larger animals and livestock, such as horses, may be available through coordination and request through the County. 11 CONCEPT OF OPERATIONS In accordance with state and federal laws, the City of Palo Alto has officially adopted and integrated the following emergency management, response, and coordination systems:  The Incident Command System (ICS)10  The Standardized Emergency Management System (SEMS)11  The National Incident Management System (NIMS)12 Together, these congruent operational systems outline how critical incidents, emergencies, and disasters will be coordinated in the field, at the local level, and up through the county, region, state, and federal levels. FIELD LEVEL COORDINATION: ICS As mandated by both SEMS and NIMS, the City utilizes the Incident Command System (ICS) to manage response activities in the field. ICS provides for common terminology, processes, and position titles, while allowing the delegation of functions (or tasks) to subordinate positions in order to promote proper span of control and unity of command. ICS is applicable to any size incident and is designed to be expandable as the needs of an incident expand or contract. When utilized, the standardization of ICS principles and nomenclature is capable of integrating large numbers of personnel from disparate organizations. LOCAL, REGIONAL & STATE LEVEL COORDINATION: SEMS As the cornerstone of California’s emergency response system, The Standardized Emergency Management System (SEMS), integrates the concepts and principles of both the National Incident Management System (NIMS) and ICS. Jurisdictions within the State are required to adopt its use and the system unifies all elements of California’s emergency management community into a single integrated structure. SEMS ensures that local communities retain the authority and responsibility for managing and coordinating responses within their jurisdictions, while promoting situational awareness and facilitating the prioritization of resource requests. The five SEMS coordination levels expand outward from the impacted area at the field level, with each successive level representing a larger geographic area. The five organizational levels include: Field Response Field response includes on-scene activities and coordination, consistent with ICS, and includes the use of an Incident Command Post (ICP). Depending upon the incident, multiple ICPs may be established at various sites throughout an impacted area and an Area Command may also be established. Resource requests and situation reports are routed from the field to the next SEMS organizational level, either through participating response agencies or the local Emergency Operations Center (EOC) if activated. Department Operations Centers (DOC) provide internal coordination for specific departments and may interface as an intermediate level of 10 More information can be found at http://training.fema.gov/emiweb/is/icsresource/index.htm 11 State authority is to be found, in part, in California Emergency Services Act (Chapter 7 of Division 1 of Title 2 of the Government Code). California State and local jurisdictions use the Standardized Emergency Management System as outlined in California Code of Regulations (Title 19, Divisions 2, Chapter 1) and the California Government Code (§8607). 12 Federal authority is found in the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Public Law 93-288, as amended, 42 U.S.C. 5121) and in Homeland Security Presidential Directive (PPD) 5, “Management of Domestic Incidents” and Homeland Security Presidential Directive (HSPD) 8, “National Preparedness.” The emergency management system used nationally is the National Incident Management System (NIMS). 12 coordination between the field and the EOC while coordinating and maintaining department operations unrelated to the incident. Local Government Local governments retain the responsibility and authority for managing response activities within their jurisdictions. To support these efforts, local jurisdictions may activate their respective EOCs. Local EOCs provide agency coordination, provide logistical support, establish common operating procedures, identify overarching priorities, and prioritize available resources. Additionally, local EOCs coordinate with the Operational Area (OA)/County EOC. Operational Area The Operational Area (OA) provides coordination within the county and between all political subdivisions. The OA coordinates response activities within the county’s geographic area through the County EOC, if activated. The OA also serves as a link to regional level and all other OAs within the region. The City of Palo Alto is part of the Santa Clara County OA and coordinates closely with the Santa Clara County Office of Emergency Services (SCCOES). The City participates in OA planning and, during a critical incident, coordinates with the OA through either SCCOES or the Santa Clara County EOC, if activated. The City also participates in various OA plans such as Multiple Patient Management Protocol (MPMP) (also known as Mass Casualty Incident (MCI)), Active Shooter, etc. Regional The State of California is divided into three regions that each maintain Regional Emergency Operations Centers (REOC) to coordinate resource requests, support mutual aid, and promote situational awareness between their respective OAs. The City of Palo Alto and the Santa Clara County OA are within the Coastal Administration Region. Palo Alto participates in regional planning through the Urban Area Security Initiative (UASI), the Northern California Regional Intelligence Center (NCRIC), and others. State When required, California’s State Operations Center (SOC) is activated to facilitate state agency response, mobilize mutual aid, and coordinate with other regions, states, and the federal government. The SOC also serves as the liaison with the National Operations Center (NOC). FEDERAL COORDINATION: NIMS The National Incident Management System (NIMS) provides a comprehensive national framework for incident management applicable at all jurisdictional levels and across all functional disciplines. The majority of NIMS requirements applicable to the City of Palo Alto, including the adoption of ICS, are satisfied by the adoption of SEMS. Additional elements of NIMS outline coordination between federal agencies and the use of federal assets and resources. ADDITIONAL COORDINATION: NORTH COUNTY JURISDICTIONS Emergency management and response partners in the North County area of Santa Clara County, defined as the Cities of Los Altos, Mountain View, Palo Alto, and Sunnyvale, along with Stanford University, have long recognized that mutual aid and cooperation in response to critical incidents can be enhanced and made more 13 effective by sharing resources. Given the common hazards facing the area and the potential for large regional impacts, North County agencies and stakeholders will need to work together during extended incidents to meet evolving needs and provide critical services. Building upon the success of ongoing coordination, North County cities have identified and integrated mutually beneficial activities that offer a number of synergies and potential economies of scale. These activities include preparedness elements, such as combined planning processes, shared stakeholder integration, and the development of common plan elements; along with response elements such as the collocation of common emergency management and coordination functions to support mutual North County operational objectives. North County EOC Historically, each of the North County jurisdictions have developed, staffed, and maintained their own EOCs. However, depending upon the incident, some or all of the North County agencies may co-locate EOC functions within a common facility. Such a configuration would provide a number of benefits and efficiencies including increased coordination, fewer staff, and reduced costs, while allowing each jurisdiction to maintain individual control of their respective EOC functions. MUTUAL AID The California Mutual Aid System operates within the framework of the California Master Mutual Aid Agreement (MMAA)13 and under the authority of the California Emergency Services Act14. The system allows for the mobilization of resources to and from emergency response agencies, local governments, operational areas, regions, and the state with the intent to provide requesting agencies with adequate resources. The California Mutual Aid System includes six mutual aid regions in order to facilitate the coordination and flow of mutual aid requests. As part of the Coastal Administration Region, the Santa Clara County OA and the City are part of Mutual Aid Region II. The system includes a number of discipline-specific mutual aid systems that operate through designated mutual aid coordinators at the OA, regional, and State levels. Mutual aid requests are coordinated within their geographic area before unfilled requests are forwarded to the next level. Mutual aid requests that do not fall into one of the discipline-specific mutual aid systems are handled through the emergency services mutual aid system and by emergency management staff at the local government, operational area, regional, and state levels. 13 See the California Master Mutual Aid Agreement (Chapter 7 of Division 1 of Title 2 of the Government Code) 14 See the California Emergency Services Act (Chapter 7 of Division 1 of Title 2 of the Government Code) 14 ALERT AND WARNING EMERGENCY ALERT SYSTEM (EAS) The Emergency Alert System is a public warning system that may also be used by federal, State, and local authorities to provide emergency information and notification to citizens. This system allows use of existing media (radio, TV) resources to communicate to residents in the event of a widespread emergency situation. ALERTSCC AlertSCC is a county-wide community alert and notification system. This system allows the City of Palo Alto to quickly provide critical information and instructions to subscribers using registered cell phones, emails, or landline phones through a reverse 911 function. Registration can be completed at www.AlertSCC.org INTEGRATED PUBLIC ALERT AND WARNING SYSTEM (IPAWS) The Integrated Public Alert and Warning System (IPAWS) is a modernization and integration of the nation’s alert and warning infrastructure. IPAWS provides public safety officials with an effective way to alert and warn the public about serious emergencies using the Emergency Alert System (EAS), Wireless Emergency Alerts (WEA), the National Oceanic and Atmospheric Administration (NOAA) Weather Radio, and other public alerting systems from a single interface. ADDITIONAL SYSTEMS A number of additional communications systems or pathways are available to the City, including:  The City of Palo Alto Website www.cityofpaloalto.org  Social Media (e.g., www.cityofpaloalto.org/PAPDconnect)  Internal City E-mail and Telephone Systems  Stanford University Radio Station KZSU (90.1 FM) The City also has various means to 1) notify, recall, and mobilize staff (including those off-duty) and 2) communicate and coordinate with such staff and other government and non-government organization partners. 15 EMERGENCY OPERATIONS CENTER The City of Palo Alto EOC provides a centralized location where emergency management coordination and decision making can be supported during a critical incident, major emergency, or disaster. When activated, the EOC provides support for a number of critical tasks related to communications, coordination, resource management, and executive leadership. PRIMARY AND ALTERNATE EOC LOCATIONS The primary EOC for the City of Palo Alto is located in the Public Safety Building. If the primary EOC is threatened, inoperable or inaccessible, an alternate EOC can be designated or provided utilizing the Mobile Emergency Operations Center (MEOC) or by using an alternate facility. OES has several locations identified that could be selected based on the situation and resources. EOC ACTIVATION AND DEACTIVATION The EOC facility and equipment are maintained and used regularly by Palo Alto OES and other City public safety staff and may be used for coordination and monitoring activities at any time without the need for a formal activation ("steady state"). However, depending upon the need and circumstances, an official EOC activation may be appropriate to support a number of activities, including:  Field response  Pre-planned events  Local Proclamation of Emergency  Governor’s Declaration of Emergency  Presidential Declaration of a National Emergency  State of War Additional information on roles and responsibilities, EOC activation authorities and procedures can be found in the Palo Alto EOC Manual. EOC Activation Levels The Palo Alto Police Department manages the 9-1-1 Communications Center (Public Safety Answering Point (PSAP) for the City of Palo Alto and Stanford University, covering law enforcement, fire/EMS, public works, utilities, animal services, and other calls for service. The 9-1-1 Center, in most cases, is the entity responsible to notify key staff of any emergent situation where the EOC or other OES resources might be required. The criteria and procedures are detailed in confidential rosters, protocols, and other documents, such as the EOC Manual. When the City’s EOC is activated, the County Operational Area and other partners will be notified (as practicable). The City has reciprocal notification agreements with other agencies, including those in San Mateo County, for some events such as flood or storm events. The City may also establish Departmental Operations Centers (DOC) for specific departments (e.g. Public Works, Utilities, Information Technology, etc.), as required to support field operations and coordinate other functions within their respective departments. 16 EOC activation levels are scalable based on the evolving needs of the City and may include full or partial staffing as required. SEMS compliant activation levels are outlined in Table 1-A below: TABLE 1-A: EOC ACTIVATION LEVELS Level Operational Status Description Examples Level 1 Minimum Activation Monitoring an incident/event or potential situation/event.  Severe weather warning  Flood watch  Terrorism warning  Minor earthquake Level 2 Partial Activation Necessary EOC positions are activated to manage the incident as needed.  Planned event  Local emergency declared  Oil spill  Wild land fire affecting developed areas Level 3 Full Activation Full activation of the EOC with all position activated.  Catastrophic earthquake  Major public safety incident  Major local and/or regional disaster Similarly, the deactivation of the EOC will be scalable based on the decreasing needs of the City. Appropriate EOC functions and roles will be demobilized as the situation permits. EOC COMMUNICATION AND COORDINATION The EOC has the capability to communicate and coordinate with a broad array of internal (field personnel, incident commanders, department operations centers (DOCs)) and external stakeholders (response partners, critical infrastructure and key resources, outside agencies). For example, the City's EOC is outfitted with communications equipment to interoperate with a large number of partners, ranging from the City's Emergency Services Volunteer (ESV) program to the Palo Alto Unified School District to the National Guard. Notification and Mobilization When necessary, the City will notify needed emergency response personnel using available communications systems (Information Technology systems, two way radios, etc) and in accordance with applicable response plans (EOC Manual, Department Emergency Plans, and so forth). Internal Communications & Coordination Coordination with field elements from the EOC may be coordinated through relevant DOCs or directly with an Incident Commander. If a DOC is not activated, the Incident Commander may communicate directly with their department specific representative, typically located in the Operations Section of the EOC. Additionally, the Palo Alto EOC will communicate and coordinate with the Santa Clara County OA EOC and other cities within the Santa Clara County OA. Each city, including Palo Alto, will provide situational awareness and relevant resource status to the OA EOC, and in turn the OA EOC will push aggregated county-wide information back to each city. In some cases mutual aid for disciplines with other established mutual aid systems (such as Law Enforcement) will use such systems while in other cases (commonly known as single- point ordering) the requests will go via OA EOC-City EOC logistics pathways. 17 External Communications & Coordination The City EOC will also coordinate with outside agencies such as special districts, public utilities, volunteer organizations and/or private agencies. These agencies will communicate directly with the City and may provide a representative to the City EOC, as outlined in the EOC manual. The level of involvement of special districts, public utilities, volunteer organizations, and private agencies will vary considerably depending upon the type of incident. POSITION DESCRIPTIONS AND RESPONSIBILITIES EOC Structure The EOC is organized following the five major functional areas outlined in SEMS:  Management  Planning/Intelligence  Operations  Logistics  Finance/Administration See the Palo Alto EOC Manual for position descriptions. DEPARTMENT RESPONSIBILITIES The National Response Framework (NRF) provides guiding principles for all levels of government to work together when responding to a major incident. Incorporated into the NRF are 15 Emergency Support Functions (ESF)15, described below. Note that numerous functions are only partially the responsibility of City government. ESF #1 Transportation Aviation/airspace management and control Transportation safety Restoration/recovery of transportation infrastructure Movement restrictions Damage and impact assessment ESF #2 Communications (Telecommunications) Coordination with telecommunications and information technology industries Restoration and repair of telecommunications infrastructure Protection, restoration, and sustainment of national cyber and information technology resources Oversight of communications within the incident management and response structures 15 The State of California has similar California Emergency Function (CA-EF) types. 18 ESF #3 Public Works and Engineering Infrastructure protection and emergency repair Infrastructure restoration Engineering services and construction management Emergency contracting support for life-saving and life-sustaining services ESF #4 Firefighting wildland, rural, and urban firefighting operations ESF #5 Emergency Management Coordination of incident management and response efforts Issuance of mission assignments Resource and human capital Incident action planning Financial management ESF #6 Mass Care, Housing, and Human Services Mass care Emergency assistance Disaster housing Human services ESF #7 Resource Support Comprehensive incident logistics planning, management, and sustainment capability Resource support (facility space, office equipment and supplies, contracting services, etc.) ESF #8 Public Health and Medical Services Public health Medical Mental health services Mass fatality management ESF #9 Urban Search and Rescue Life-saving assistance Search and rescue operations ESF #10 Oil and Hazardous Materials Response Oil and hazardous materials (chemical, biological, radiological, nuclear, explosive, etc.) response Environmental short- and long-term cleanup ESF #11 Agriculture and Natural Resources (and Pets) Natural and cultural resources Historic properties protection and restoration Safety and well-being of household pets 19 ESF #12 Energy Utilities Energy infrastructure assessment, repair, and restoration ESF #13 Public Safety and Security Law Enforcement Facility and resource security Security planning and technical resource assistance Public safety and security support Support to access, traffic, and crowd control ESF #14 Long-Term Community Recovery Community Recovery Assistance to residents, businesses ESF #15 External Affairs Emergency public information and warning Media and community relations Table 1-B outlines the City department’s responsibilities during a disaster by ESF and identifies the lead (L) and support (S) departments for each function. In some cases, departments may share the lead function (see footnotes). TABLE 1-B: DEPARTMENT RESPONSIBILITIES Department Responsibilities ES F 1 ES F 2 ES F 3 ES F 4 ES F 5 ES F 6 ES F 7 ES F 8 ES F 9 ES F 1 0 ES F 1 1 ES F 1 2 ES F 1 3 ES F 1 4 ES F 1 5 Administrative Services / OMB S L S S City Attorney City Auditor City Clerk City Manager’s Office S S L L Community Services S S16 L S S L17 S S Development Services S S Fire Department S L S S S L L L S S S Human Resources S S 16 Community Services Open Space Rangers may support firefighting. 17 Lead for historic resources 20 Information Technology L18 S Library Office of Emergency Services S S S S L S S S S S S S S S S Planning & Community Environment L S Police Department S L S S S S S S S S L19 L S Public Works L20 L S S S S S S Utilities S S S S S S L S S 18 Lead for general City IT systems; cyber. 19 Police Department Animal Services is lead for pets (incl. at shelters). 20 Public Works is lead for Aviation (Airport) and portions of restoration/recovery (debris management). 21 EMERGENCY DECLARATIONS LOCAL PROCLAMATION The State of California Government Code allows a local emergency to be proclaimed by a city council, county, or by an official designated by ordinance adopted by the governing body21. If the City of Palo Alto determines that the effects of an emergency are, or may become, beyond the capability of local resources, a local emergency can be proclaimed. The Palo Alto City Council has empowered the City Manager and the Director of Emergency Services to issue a proclamation of local emergency when the City Council is not in session. A sample proclamation is included as an attachment to this EOP. Such a proclamation of local emergency is invalid after seven days, unless ratified by the City Council. Proclamations must be made within ten (10) days of occurrence to qualify for assistance under the California Disaster Assistance Act and must be renewed every 14 days. A local proclamation of emergency allows the City Manager and the Director of Emergency Services to take measures necessary to protect and preserve public health and safety and may trigger certain reimbursement opportunities. STATE OF EMERGENCY After a proclamation of a local emergency, the governing body of the City, having determined that local resources are not sufficient to mitigate the situation, may request by letter or resolution that the Governor proclaim a state of emergency22 in the area to fully commit state and mutual aid assistance and provide resources to assist local government. To support its request for a gubernatorial proclamation, it is essential that the City forward an estimate of damage and financial loss to Cal OES through the Santa Clara County OA as quickly as possible. Estimates of loss are an important part of the criteria that Cal OES considers when making a determination to proclaim a state of emergency and request a Presidential Declaration of Emergency or Disaster. A copy of the request for a Governor’s proclamation, with the following supporting data, must be forwarded, to the Santa Clara County OA Coordinator for transmission to the Cal OES Director:  Copy of the local emergency proclamation  Initial damage estimate summary that estimates the severity and extent of the damage The Cal OES prepares a recommendation as to the action that should be taken by the Governor. If the action recommends a Governor’s proclamation, Cal OES prepares the proclamation. The Governor may also proclaim a state of emergency without a local request if the safety of persons and property in the state are threatened by conditions of extreme peril, or emergency conditions are beyond the emergency response capacity and capabilities of local authorities. 21 See California Government Code (Sections 8630-8634) authorizing local government proclamations and Palo Alto Municipal Code (Section 2.12.050) authorizing the City Manager or Director of Emergency Services to declare a local proclamation of emergency, if the City Council is not in session. 22 See California Government Code (Sections 8625-8629) authorizing actions and power of the Governor to declare a State of Emergency. 22 STATE OF WAR EMERGENCY In addition to a State of Emergency, the Governor can proclaim a State of War Emergency23 whenever the state or the nation is attacked by an enemy of the United States, or upon receipt by the state of a warning from the federal government indicating that such an enemy attack is probable or imminent. The provisions of the Governor granted under a State of War Emergency are the same as those granted under a State of Emergency. PRESIDENTIAL DECLARATION Following the proclamation of a state of emergency, the Cal OES Director may recommend that the Governor request a Presidential Declaration24 of a major disaster under the authority of Public Law 93-288. The Governor’s request to the president is submitted through the FEMA. Supplementary justification data may be required to accompany the state and local proclamations and Initial Damage Estimate. OTHER POWERS Other local, state, and federal authorities such as public health emergencies or quarantines may grant broad powers to certain government officials to restrict movement or impose other restrictions. 23 See California Government Code (Sections 8620-8624) outlining the powers of the Governor under a State of War Emergency 24 See Robert T. Stafford Disaster Relief Act (Public Law 93-288) as the statutory authority for most Federal disaster response activities. 23 CONTINUITY OF GOVERNMENT Continuity of Government (COG) is an essential function of emergency management and is vital during an emergency/disaster situation. Continuity of government is defined as the preservation, maintenance, or reconstitution of the civil government's ability to carry out its constitutional responsibilities. All levels of government share a constitutional responsibility to preserve the life and property of their citizens. The California Government Code and the Constitution of California provide the authority for state and local government to reconstitute itself in the event incumbents are unable to serve. For more detailed information see the City of Palo Alto COOP/COG Plan. LINES OF SUCCESSION When a role or function is essential to the City’s ability to complete its critical missions, a successor must be named to assume the duties and responsibilities of that role. Table 1-C below outlines the continuity of government lines of succession for essential city government positions. TABLE 1-C: LINES OF SUCCESSION Key Position Primary Successor Secondary Successor City Manager Assistant City Manager (Public Services) Assistant City Manager (Internal Services) Standby Council Members may be called to serve during an emergency when a quorum of current City Council Members is not available and a City Council meeting is urgently required. “Unavailable” is defined in PAMC 2.12.090(c) and California Government Code section 8636 as killed, missing, or so seriously injured as to be unable to attend meetings and otherwise perform duties of the office. If there is a need for standby Council Members to serve on the Council, standby Council Members shall be appointed to the Council to replace unavailable members as necessary to reach seven members (PAMC section 2.12.090(c)). Order of appointment, duration and service requirements for Standby Council Members are provided in the Council’s “Policy for Appointment of Emergency Standby Council”. California Government Code sections 8642-8645 provide guidance for appointing Council Members in the unlikely event that all Council and Emergency Standby Council Members are unavailable to serve. For example, if only one member of the Council or one member of the Emergency Standby Council is available, that person shall have the power to reconstitute the City Council (Cal. Gov’t. Code § 8642). Should all members of the Council and the Emergency Standby Council be unavailable, members of the City Council could be appointed by the Chair of the Santa Clara County Board of Supervisors, by the Chair of a nearby County Board of Supervisors, or by the mayor of a nearby city, in that order (Cal. Gov’t. Code § 8644). ESSENTIAL FACILITIES: ALTERNATE SEAT OF GOVERNMENT The primary seat of the City of Palo Alto local government is: Palo Alto City Hall 250 Hamilton Avenue Palo Alto, CA 94301 24 Subject to the needs of the City and the situation and conditions present, an alternate site will be selected. A pre-identified potential alternate site has been identified at: Cubberley Community Center 4000 Middlefield Road, T2 Palo Alto, CA 94303 Note: The Cubberley Community Center is also the pre-designated site for the City's primary shelter and may also be used for medical treatment. PRESERVATION OF VITAL RECORDS City leadership will require certain vital records during a disaster. Vital Records are the documents required to continue the mission of City departments and agencies during and after a disaster. The records will assist in providing services both to internal City departments and external customers, such as citizens, contractors, other government entities. Example documents may include:  Public Records  Computer system back-ups/servers  Order of Succession Ordnances or Resolutions  Plans, policies, and procedures for critical processes  Payroll information  Contracts and leases  Legal and financial records  Insurance documents Protection of, and access to, these and other vital records requires planning and is coordinated by the Palo Alto City Clerk. Each City department is responsible for identifying vital records, coordinating with the County Clerk, and assigning internal responsibility for their preservation.25 25 The City of Palo Alto Office of the Clerk maintains the City’s Record Retention Policy which describes each department’s vital records. http://www.cityofpaloalto.org/civicax/filebank/documents/15226 City of Palo Alto Emergency Operations Plan Section II – Attachments Section II: Attachments City of Palo Alto Emergency Operations Plan Section II – Attachments 23 ATTACHMENT 1: AUTHORITIES AND REFERENCES LOCAL AUTHORITIES & REFERENCES The plan is promulgated under the authority of the City Manager, ratified by the City Council, after having been reviewed by the City of Palo Alto's Emergency Services Council (which includes the Palo Alto/Stanford Citizen Corps Council), per Palo Alto Municipal Code Section 2.12.080. The following authorities and references are applicable:  Palo Alto Municipal Code Section 2.12 Emergency Organization and Functions STATE AUTHORITIES & REFERENCES State authority is to be found, in part, in California Emergency Services Act (Chapter 7 of Division 1 of Title 2 of the Government Code). California state and local jurisdictions use the Standardized Emergency Management System as outlined in Chapter 1 of Division 2 of Title 19 of the California Code of Regulations and the California Government Code §8607 et sec. The following authorities and references are applicable:  Standardized Emergency Management System Regulations: California Code of Regulations, Title 19, Division 2, Chapter 1  Disaster Assistance Act Regulations: California Code of Regulations, Title 19, Division 2, Chapter 6  Local Emergency Prevention Measures for County Health Official: California Health and Safety Code § 101040  California Master Mutual Aid Agreement  California Disaster Assistance Act  Orders and Regulations that may be promulgated by the Governor during a State of Emergency or a State of War Emergency FEDERAL AUTHORITIES & REFERENCES Federal authority is to be found in the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 (Public Law 93-288) and in Homeland Security Presidential Directive 5, “Management of Domestic Incidents” and Homeland Security Presidential Directive 8, “National Preparedness.” The emergency management system used nationally is the National Incident Management System (NIMS). The following authorities and references are applicable:  Robert T. Stafford Emergency Disaster Relief and Emergency Assistance Act (42 USC § 5121 et seq.)  Federal Disaster Relief Regulations: 44 CFR Part 206  National Incident Management System, HSPD-5, Management of Domestic Incidents  National Response Plan, U.S. Department of Homeland Security, December 2004  National Response Framework, U.S. Department of Homeland Security, March 2008 City of Palo Alto Emergency Operations Plan Section II – Attachments 24 ATTACHMENT 2: SAMPLE PROCLAMATION SAMPLE PROCLAMATION WHEREAS, Sections 2.12.050 of the City of Palo Alto Municipal Code empowers the Director of Emergency Services (City Manager) or the Assistant Director of Emergency Services (Office of Emergency Services Chief) to proclaim the existence or threatened existence of a local emergency when said City is affected or likely to be affected by a public calamity and the City Council is not in session, and; WHEREAS, the _____________________ (Director of Emergency Services/Assistant Director of Emergency Services) of the City of Palo Alto does hereby find; That conditions of extreme peril to the safety of persons and property have arisen within the City, caused by _____________________(fire, flood, storm, mudslides, torrential rain, wind, earthquake, drought, or other causes); which began on the ______ day of ________________, 20_____. and; That these conditions are, or are likely to be, beyond the control of the services, personnel, equipment, and facilities of the City, and; That the City Council of the City of Palo Alto is not in session and cannot immediately be called into session; NOW, THEREFORE, IT IS HEREBY PROCLAIMED that a local emergency now exists throughout the City of Palo Alto, and; IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization of the City shall be those prescribed by state law, by ordinances, and resolutions of this City, and; That this emergency proclamation shall expire in 7 days after issuance unless confirmed and ratified by the governing body of the City of Palo Alto. Dated: __________________________ By:______________________________ Director/Assistant Director of Emergency Services* Print Name_________________________ Address____________________________ *Identify appropriate title Note: It may not be necessary for the City to proclaim a local emergency if the County has already proclaimed an emergency that applies to the entire geographic County area or for a specific area that includes the City. (Source: Cal OES, Emergency Proclamations: A Quick Reference Guide for Local Government) City of Palo Alto (ID # 6413) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Change Order No.2 to WQCP On Call Emergency Construction Services Title: Approval of Contract Change Order No. Two to Contract S14151060 in the Amount of $150,000 with Monterey Mechanical Company for On-Call Emergency Construction Services at WQCP, Capital Improvement Program Project WQ-80021, for a Total Compensation not to Exceed $400,000 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: Approve and authorize the City Manager or his designee to execute Change Order No. Two, adding $150,000 to Contract S14151060 with Monterey Mechanical Company (Attachment B) for on-call emergency construction services at the Water Quality Control Plant (Capital Improvement Program Project WQ-80021) a new total amount not to exceed $400,000; Background The Regional Water Quality Control Plant (RWQCP) is a 25 acre industrial complex consisting of influent sewers, primary sedimentation tanks, fixed film reactors, activated sludge aeration, secondary clarification, dual media filtration, ultraviolet disinfection, recycled water piping, and an outfall pipe. RWQCP facilities operate 24 hours a day, 7 days a week. The facilities, many of them 44 years old, must be maintained in a state of operational readiness to meet federal, state, and local regulations. The facilities include steel and concrete buildings, tanks, pumps, pipes, valves, motors, and other industrial machinery. On October 1, 2013, the City contracted with Monterey Mechanical Company (MMC) to provide critical and emergency construction services for the RWQCP. City of Palo Alto Page 2 Staff is satisfied with the construction services MMC has provided thus far, including:  Installing two inflatable plugs under 15-feet of sewage to isolate a tank with a broken 42-inch pipe; repair of the critical 42-inch pipe and supports broken within the tank; repair of broken air pipes within the tank; and repair of a misaligned 42-inch isolation sluice gate;  Sealing of three leaks from the 54-inch outfall line;  Sealing leaks in the outfall box and secondary clarifier effluent channel; and  Replacing a failed 12-inch recycled water pipe and valve. However, contract funds are now depleted. Discussion When a system component fails, staff typically put a standby unit into service and isolate the failed unit or call-in standby maintenance staff to provide corrective repairs. The ability to bypass sewage or store sewage in surplus tanks while repairs are made is limited. Some system failures require emergency repair work matched with specialized workers, heavy construction equipment, and the resources of a licensed contractor. In these cases, licensed contractors are required to provide on-call emergency and critical construction services. Since 1997, RWQCP has used emergency on-call contracts. Along with ongoing capital improvements to replace aging infrastructure, this type of contract has been a vital component of keeping the RWQCP in compliance with federal, state, and local regulations. To prepare for another critical or emergency situation, staff recommends that Council approve additional funds totaling $150,000 be available through the contract end date of September 30, 2016. The $150,000 is being added to the existing contract of $250,000 bringing the total contract amount to $400,000. In mid-2016, staff will solicit bids from qualified contractors for another three-year term to provide emergency construction services. Timeline MMC will continue to priovide on-call construction services through the end of September 2016. In mid-2016, staff will solicit bids from qualified contractors for another three-year term to provide emergency construction services. City of Palo Alto Page 3 Resource Impact Funding for this change order is available in the FY 2016 Capital Improvement Program project budget, WQ-80021 Plant Equipment Replacement. Policy Implications The recommended change order is consistent with City’s Policies and Procedures. Environmental Review The recommended action is exempt from review under the California Enviromental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of publicly-owned wastewater facilities involving negligible or no expansion. Attachments:  Attachment A: Change Order No. 1 - S14151060 (PDF)  Attachment B: Change Order No. 2 - S14151060 (DOC)  Attachment C: Contract S14151060 Monterey Oncall Emergency Srvcs RWQCP (PDF) Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: APPENDIX B – CONTRACT CHANGE ORDER PAGE 1 OF 4 Contract Change Order # Project Title: WQCP On Call Emergency Construction Services Project No.: WQ-80021 Contract Number: S14151060 Date: 28 Oct. 2015 Contractor: Monterey Mechanical Co. Change Order: 01 Description of Change Order Background Information: WQCP has a construction contract with MMC to perform critical repairs/construction tasks necessary to keep the plant operational and/or mitigate the impacts to the plant’s NPDES permit. Change Order Justification: (a) Correct the contract amount to $50,000 per year and (b) Add funds to address recent unforeseen breakdowns. Description of Work to be Performed: Install plugs to isolate Aeration Basin 4. Repair 42” ML pipe to Clarifier 5 and air piping in Aeration Basin 4. Incorporates Field Order Number(s): Cost Time This change order will:  No cost change: N/A X Increase cost by $ 131,904.00  Decrease cost by $ N/A This change order will: X No change time  Increase time by 0 days  Decrease time by 0 days The date of completion as of this change order is G/L account number (s): Basis for change in cost: X Unit price(s)  Lump sum  Cost plus (10% self performed work;15% subcontracted)  Other: DocuSign Envelope ID: CDB4DA10-2FBD-46BA-8DBE-E483037EB5BD PAGE 2 OF 4 APPENDIX B –CONTRACT CHANGE ORDER Contract Change Order – continued CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed in this Change Order. CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order. Accepted for Contractor: Accepted for City of Palo Alto: By: By: Title: Title: Public Works Engineering - Sr. Project Manager Date: Date: PC O N o . AS I EW A CO R CO Description Amount Reason for Change 01 Perform emergency repairs 131,904 Plant operations Total for this change order $131,904.00 Scope of Work DocuSign Envelope ID: CDB4DA10-2FBD-46BA-8DBE-E483037EB5BD General Engineering Division Manager 11/2/2015 11/2/2015 Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: APPENDIX B – CONTRACT CHANGE ORDER PAGE 3 OF 4 Document Preparation By: Padmakar M. Chaobal Title: Senior Engineer Date: 28 Oct. 2015 City Approval – Division Head Signature required on all change orders By : Title : James S. Allen Manager, WQCP, Public Works ESD Date: City Approval – Department Head: Signature required when any individual Change Order exceeds $10,000. By: Title: Mike Sartor Director of Public Works Date: Contract Change Order – continued Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Amount: $ 118,096.00 Previous Change Orders $ 0.00 This Change Order $ 131,904.00 Revised Contract Amount: $ 250,000.00 Compare to: Original Contract Authorization: $ 118,096.00 Contingency: 0.00 Contract Amendment Authorizations $ 0.00 Contingency added: Contingency Authorizations: $ 0.00 Used to date Total Authorized Funding: $ 118,096.00 Balance remaining 0.00 Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total authorized funding amount. DocuSign Envelope ID: CDB4DA10-2FBD-46BA-8DBE-E483037EB5BD 11/2/2015 PAGE 4 OF 4 APPENDIX B –CONTRACT CHANGE ORDER DocuSign Envelope ID: CDB4DA10-2FBD-46BA-8DBE-E483037EB5BD Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: S14151060 APPENDIX B – CONTRACT CHANGE ORDER PAGE 1 OF 4 Contract Change Order # 2 Project Title: WQCP On Call Emergency Construction Services Project No.: WQ-80021 Contract Number: S14151060 Date: 02 December, 2015 Contractor: Monterey Mechanical Co. Change Order: 02 Description of Change Order Background Information: WQCP has a service contract with MMC to perform critical repairs/construction tasks necessary to keep the plant operational and/or mitigate the impacts to the plant’s NPDES permit. Change Order Justification: Add funds to address emergency work (unforeseen breakdowns) through the end of the contract. Description of Work to be Performed: Examples of emergency work performed: Installing two inflatable plugs under 15-feet of sewage to isolate a tank with a broken 42-inch pipe; repair of the critical 42-inch pipe and supports broken within the tank; repair of broken air pipes within the tank; and repair of a misaligned 42-inch isolation sluice gate; Sealing of three leaks from the 54-inch outfall line; Sealing leaks in the outfall box and secondary clarifier effluent channel; and Replacing a failed 12-inch recycled water pipe and valve. Incorporates Field Order Number(s): Cost Time This change order will:  No cost change: N/A X Increase cost by $ 150,000.00  Decrease cost by $ N/A This change order will: X No change time  Increase time by 0 days  Decrease time by 0 days The date of completion as of this change order is G/L account number (s): Basis for change in cost: X Unit price(s)  Lump sum  Cost plus (10% self performed work;15% subcontracted)  Other: PAGE 2 OF 4 APPENDIX B –CONTRACT CHANGE ORDER Contract Change Order – continued CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed in this Change Order. CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order. Accepted for Contractor: Accepted for City of Palo Alto: By: By: Title: Title: Public Works, WQCP - Sr. Engineer Date: Date: PC O N o . AS I EW A CO R CO Description Amount Reason for Change 02 Perform emergency repairs 150,000 Plant operations Total for this change order $150,000.00 Scope of Work Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: S14151060 APPENDIX B – CONTRACT CHANGE ORDER PAGE 3 OF 4 Document Preparation By: Padmakar M. Chaobal Title: Senior Engineer, WQCP Date: 02 Dec. 2015 City Approval – Division Head Signature required on all change orders By: Title: James S. Allen Manager, Water Quality Control Plant, Public Works, ESD Date: City Approval – Department Head: Signature required when any individual Change Order exceeds $10,000. By: Title: Mike Sartor Director of Public Works Date: Contract Change Order – continued Summary of Amounts Payable under Contract (For Internal Purposes Only) Original Contract Amount: $ 118,096.00 Previous Change Orders $ 131,904.00 This Change Order $ 150,000.00 Revised Contract Amount: $ 400,000.00 Compare to: Original Contract Authorization: $ 118,096.00 Contingency: 0.00 Contract Amendment Authorizations $ 0.00 Contingency added: Contingency Authorizations: $ 0.00 Used to date Total Authorized Funding: $ 118,096.00 Balance remaining 0.00 Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total authorized funding amount. PAGE 4 OF 4 APPENDIX B –CONTRACT CHANGE ORDER   Invitation for Bid (IFB) Package 1                             Rev. July 2012  CONSTRUCTION CONTRACT                CONSTRUCTION CONTRACT    Contract No. S14151060        City of Palo Alto    and    Monterey Mechanical Company      PROJECT  RWQCP ONCALL EMERGENCY SERVICES DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E   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  4.1 The Work ……………………….…………………………………………………………………………………….6  4.2 On‐Call Provision …………………………………..……………………………………………………………..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………………………………………………………………………………………….   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  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E   Invitation for Bid (IFB) Package 3                             Rev. July 2012  CONSTRUCTION CONTRACT  SECTION 11. INSURANCE AND BONDS .......................................................................................... 12  SECTION 12. PROHIBITION AGAINST TRANSFERS .......................................................................... 12  SECTION 13. NOTICES .................................................................................................................... 12  13.1 Method of Notice ………………………………………………………………………………………………..12  13.2 Notice Recipients .................................................................................................   13  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  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E   Invitation for Bid (IFB) Package 4                             Rev. July 2012  CONSTRUCTION CONTRACT  16.6 Termination Without Cause .................................................................................  19  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 ........................................................................ …. 21  SECTION 19. INDEPENDENT PARTIES ............................................................................................. 21  SECTION 20. NUISANCE ................................................................................................................. 21  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 .................................................................................................. 22  SECTION 27. NON APPROPRIATION .............................................................................................. 22  SECTION 28. GOVERNMENTAL POWERS ........................................................................................ 23  SECTION 29. ATTORNEY FEES ........................................................................................................ 23  SECTION 30. COUNTERPARTS ........................................................................................................ 23  SECTION 31. SEVERABILITY ........................................................................................................... 23      DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    5                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    CONSTRUCTION CONTRACT    THIS CONSTRUCTION CONTRACT entered into on October 01, 2013 (“Execution Date”) by and between the  CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and MONTEREY MECHANICAL  COMPANY ("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,   Contractors license 388361, Classification A,B,C4,C12,C16,C20,C36,C42,C43.  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 July 23, 2013, City issued an Invitation for Bids (IFB) to contractors for the RWQCP Oncall  Emergency Services (“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 “RWQCP ONCALL EMERGENCY SERVICES” ("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    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    6                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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  4.1 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  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    7                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    limitation, any Changes approved by City, in accordance with the Contract Documents and all Applicable  Code Requirements.    4.2 ON‐CALL PROVISION    Services performed under the contract will be as authorized by the City, as needed, with a Task Order  assigned and approved by the City’s Project Manager. Each Task Order shall be in substantially the same  form as Exhibit A‐1. Each Task Order shall designate a City Project Manager and shall contain a specific  scope of work, a specific schedule of performance and a specific compensation amount.  The total price of  all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in  Section 4 of this Agreement.  CONSULTANT shall only be compensated for work performed under an  authorized Task Order and the City may elect, but is not required, to authorize work up to the maximum  compensation amount set forth in Section 4.  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 the time/schedule requirements specified in the project technical  specifications, section 2.4 “Delivery of Services”.    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.    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    10                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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 the Contract Sum of One Hundred Eighteen Thousand Ninety‐six Dollars  ($$118,096.00).         This amount includes the Base Bid and Add Alternates as follows:   A‐1 thru D‐1 1st Yr $38,144.00  A‐2 thru D‐2 2nd Yr $39,354.00  A‐3 thru D‐3 3rd Yr $40,598    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:  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    11                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.     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.  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    12                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060      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.    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.   DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    13                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060      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: Daisy Stark           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:    Monterey Mechanical Company  8275 San Leandro Street  Oakland, CA 94621      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.    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    14                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    15                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    16                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    .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.    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    17                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    .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.  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    18                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    19                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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 :    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    20                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    .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:    DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    21                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.    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.  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E       Invitation for Bid (IFB) Package    22                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    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.  SECTION 26 PREVAILING WAGES.         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  DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E General Engineering Division Manager Ed Moore       Invitation for Bid (IFB) Package    24                 Rev. July 2012  CONSTRUCTION CONTRACT S14151060    EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER   Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________ COST CENTER_________________ COST ELEMENT_____________WBS/CIP__________PHASE___ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_______________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:  WORK TO BE PERFORMED  SCHEDULE OF WORK  BASIS FOR PAYMENT & FEE SCHEDULE  DELIVERABLES  REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 09CBEEA3-CDE1-4A7D-BAC8-C0A048ED851E City of Palo Alto (ID # 6373) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Smoking Ordinance Revision Title: Policy and Services Committee Recommendation to Council for Adoption of an Ordinance Amending Chapter 9.14 (Smoking And Tobacco Regulations) of the Palo Alto Municipal Code to Include E-Cigarettes, Change Signage Language, and Include Additional Enforcement Options From: City Manager Lead Department: Public Works Recommendation The Policy and Services Committee recommends that Council: Adopt an ordinance to amend Chapter 9.14 (Smoking and Tobacco Regulations) of the Palo Alto Municipal Code, to include E-cigarettes in existing smoking restrictions, change signage language and include additional enforcement options (Attachment A). Background On November 10, 2015, the Policy and Services Committee discussed adopting changes to the City’s Smoking Ordinance that include the addition of E-cigarettes, changing signage language and providing additional options for enforcement of the City’s Smoking ordinance (ID #6215). Discussion The Policy and Services Committee unanimously recommended the City Council approve an ordinance to amend Chapter 9.14 (Smoking and Tobacco Regulations) of the Palo Alto Municipal Code to include E-cigarettes in existing smoking restrictions, change signage language and include additional enforcement options (Attachment A). The Policy and Services Committee staff report and minutes are included in this packet (Attachment B and C). City of Palo Alto Page 2 Policy and Services requested that staff return to the committee to further discuss restricting smoking in multi-family dwellings as well as tobacco retailer licensing. Policy Implications The adoption of the proposed ordinance would further Comprehensive Plan polices: N-5: Clean, Healthful Air for Palo Alto; and N-6: An Environment Free of the Damaging Effects of Biological and Chemical Hazardous Materials. In addition, this effort is consistent with Council’s adopted four priorities that will "receive particular, unusual and significant attention during the year," including “Healthy City, Healthy Community.” Resource Impact This ordinance will have resource impacts on City staff time and financial resources depending on the level of enforcement and/or outreach required by its implementation. The Police Department currently has minimal resources to conduct additional enforcement efforts. Educational materials and signage costs will be paid with grant funding from the Santa Clara County Public Health Department and other public and private agencies. Environmental Review Provisions of this ordinance do not constitute a project under the Environmental Quality Act because it can be seen with certainty that no significant negative environmental impact will occur as a result of the amended ordinance. Attachments:  Attachment A - Amended Smoking Ordinance (PDF)  Attachment B Policy and Services Minutes (DOCX)  Attachment C ID 6215 Smoking Ordinance Revision (PDF) ATTACHMENT A *NOT YET APPROVED* Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapter 9.14 (Smoking and Tobacco Regulations) of the Palo Alto Municipal Code to Establish New Smoking Restrictions to Include E-Cigarettes, Change Signage Language, and Include Additional Enforcement Options The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) That the adoption of this Ordinance is necessary to protect the public health, safety and welfare for the reasons set forth in amended section 9.14.005. The purposes of this Ordinance are to ban smoking in commercial areas, all dining areas, and worksite in order to reduce the risks of second hand smoke and vapor, reduce litter, and enhance enjoyment of these areas. SECTION 2. Chapter 9.14 of the Palo Alto Municipal Code is hereby amended to read as follows: Palo Alto Municipal Code Chapter 9.14: Smoking and Tobacco Regulations 9.14.005 Purpose. The purpose of this Chapter is to: (a) Protect the public health, safety and general welfare by prohibiting smoking and use of electronic smoking devices in public parks, public places, service locations, city pool cars, child day care facilities, and unenclosed eating establishments. (b) Ensure a cleaner and more hygienic environment within the city, reduce litter, and protect the City's natural resources, including creeks and streams. (c) Enhance the welfare of residents, workers, and visitors by reducing exposure to second hand smoke, which studies confirm can cause negative health effects in non-smokers. (d) Balance the needs of persons who smoke with the needs of nonsmokers, including children and youth, to be free from the discomforts and health threats created by exposure to second-hand smoke and vapor. 9.14.010 Definitions. The following words and phrases, whenever used in this chapter shall be construed as defined in this section: 1 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* (a) "Bar" means an area which is devoted to serving alcoholic beverages and in which serving food is only incidental to the consumption of such beverages. "Bar" shall include bar areas within eating establishments which are devoted to serving alcoholic beverages and in which serving food is only incidental to the consumption of such beverages. (b) ”City pool car" means any truck, van or automobile owned by the city and operated by a city employee. City pool car does not include vehicles operated by the police department. (c) “Commercial Area” means an area, including all publicly owned sidewalks, alleys, parking areas, public places, outdoor dining areas, service areas, etc. within areas zoned in the City’s Comprehensive Plan as regional/community commercial (including Downtown, California Avenue Business District, Town and Country, and Stanford Shopping Center) and Neighborhood Commercial. (d) "Eating establishment" means a coffee shop, cafeteria, short-order café, luncheonette, sandwich shop, soda fountain, restaurant, or other establishment serving food to members of the public. (e) “Electronic smoking device” means an electronic and/or battery-operated device that can deliver an inhalable dose of nicotine to the user. “Electronic smoking device” includes any product meeting this definition, regardless of whether it is manufactured, distributed, marketed or sold as an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, electronic hookah, electronic vape, vaporizer or any other product name or descriptor. (ef) "Employee" means any person who is employed by any employer in consideration for direct or indirect monetary wages or profit. (fg) "Employee eating place" means any place serving as an employee cafeteria, lunchrooms, lounge, or like place. (gh) "Employer" means any person who employs the services of an individual person or persons. (hi) "Enclosed" means either closed in by a roof and four walls with appropriate openings for ingress and egress or not open to the sky due to a cover or shelter consisting of a tarpaulin, tent structure or other impermeable or semi-permeable materials or fabric. (ji) "Motion picture theater" means any theater engaged in the business of exhibiting motion pictures. (kj) “Public Event” means events open to the general public, including but not limited to a farmers’ market, parade, craft fair, festival, or any other such event. (kl) "Public places" means enclosed areas within publicly and privately owned buildings, structures, facilities, or complexes that are open to, used by, or accessible to the general public. Public places include, but are not limited to, stores, banks, eating 2 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* establishments, bars, hotels, motels, depots and transit terminals, theaters and auditoriums, enclosed sports arenas, convention centers, museums, galleries, polling places, hospitals and other health care facilities of any kind (including clinics, dental, chiropractic, or physical therapy facilities), automotive service centers, general business offices, nonprofit entity offices and libraries. Public places further include, but are not limited to, hallways, restrooms, stairways, escalators, elevators, lobbies, reception areas, waiting rooms, indoor service lines, checkout stations, counters and other pay stations, classrooms, meeting or conference rooms, lecture rooms, buses, or other enclosed places that are open to, used by, or accessible to the general public. (ml) "Service locations" means those enclosed or unenclosed areas open to, used by, or accessible to the general public that are listed below: (1) Bus, train and taxi shelters; (2) Service waiting areas including, but not limited to, ticket or service lines, public transportation waiting areas, and public telephones; (3) Areas within twenty-five feet of the entrance or exit to an enclosed public place, where smoking is prohibited; (4) Areas in dedicated parks or other publicly accessible areas that are within twenty-five feet of bleachers, backstops, or play structures. (nm) "Smoking" means the combustion of any cigar, cigarette, tobacco or any similar article. (on) "Tobacco product" means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, smoking tobacco, and smokeless tobacco. (po) "Tobacco store" means a retail store utilized primarily for the sale of tobacco products and accessories and in which the sale of other products is incidental. (qp) "Tobacco vending machine" means any electronic or mechanical device or appliance the operation of which-depends upon the insertion of money, whether coin or paper bill, or other thing representative of value, which dispenses or releases a tobacco product and/or tobacco accessories. (r) “Vapor” means aerosol produced from use of an electronic smoking device. (sq) "Workplace" means any enclosed area of a structure or portion thereof used as a place of employment as well as unenclosed workplaces, such as outdoor construction sites. 9.14.020 Smoking prohibited - Enclosed Places. 3 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* Smoking and the use of electronic smoking devices is prohibited in the Enclosed Areas of the following places within the City of Palo Alto, except in places subject to prohibition on smoking contained in Labor Code section 6404.5, in which case that law applies (1) Workplaces; (2) Public places; Any places exempted by the California smoke free workplace law (Labor Code Section 6404.5(d)) are not exempt under this chapter. Smoking is prohibited by this chapter in all places exempted by that State law, except as provided in 9.14.070. 9.14.025 Smoking prohibited - Unenclosed Areas. (a) Smoking and the use of electronic smoking devices in all unenclosed areas defined as Service Locations shall be prohibited, including a buffer zone within 25 feet from any doorway, window, opening, crack, or vent into an Enclosed Area in which Smoking is prohibited, except while the Person Smoking is actively passing on the way to another destination and provided Smoke does not enter any Enclosed Area in which Smoking is prohibited. (b) Smoking and the use of electronic smoking devices is prohibited in unenclosed eating establishments and bars. 9.14.030 Smoking prohibited - City pool cars. Smoking and the use of electronic smoking devices is prohibited in all city pool cars. 9.14.035 Smoking Prohibited - Public Parks and Public Events. Smoking and the use of electronic smoking devices is prohibited in all parks, including at public events. 9.14.040 Smoking prohibited - Child day care facilities. Smoking is prohibited in a private residence which is licensed as a child day care facility within the meaning of Health and Safety Code Section 1596.750 and Section 1596.795 and amendments. 9.14.050 Smoking prohibited – Commercial Areas and Public Events. Smoking and the use of electronic smoking devices is prohibited in commercial areas, except places where smoking is already prohibited by state or federal law, in which case those laws apply. This prohibition includes public events held on public streets. A shopping center or commercial areas may establish a designated smoking area that is at least 25 feet away from any openings and includes receptacles to control litter. 9.14.060 Reserved.* 4 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* * Editor's Note: Former Section 9.14.060, Regulation of Smoking in the Workplace, previously codified herein and containing portions of Ordinance Nos. 4056 and 4164 was repealed in its entirety by Ordinance No. 4294. 9.14.070 Exemptions. The following places and workplaces are exempt from Section 9.14.020: (a) Smoking at theatrical production sites is not prohibited by this subsection if the theater general manager certifies that smoking is an essential part of the story and the use of a fake, prop, or special effect cannot reasonably convey the idea of smoking in an effective way to a reasonable member of the anticipated audience. This exception will not apply if minors are performers within the production. (b) Bingo games, consistent with prohibition on smoking contained in Labor Code section 6404.5 and licensed pursuant to the Palo Alto Municipal Code, which do not permit access by minors under eighteen years of age (c) A fully enclosed room in a hotel, motel, other transient lodging establishment similar to a hotel, motel, or public convention center which is being used entirely for a private function and which is not open to the general public, except while food or beverage functions are taking place, including setup, service, and cleanup activities, or when the room is being used for exhibit purposes, and except for sixty-five percent of the guest rooms in a hotel, motel, or similar transient lodging establishment; (d) Tobacco stores with private smokers' lounges meeting the requirements of the applicable portions of subdivision (d)(4) of Labor Code Section 6404.5. 9.14.80 Location of tobacco vending machines. (a) No person shall locate, install, keep or maintain a tobacco vending machine except in a place which under state law is not lawfully accessible to minors. (b) This section shall become effective ninety days after its enactment. Any tobacco vending machine not in conformance with this section upon its effective date shall be removed. 9.14.090 Display of tobacco products for sale. No person shall display or offer tobacco products for sale except in an area, or from within an enclosure, which physically precludes the removal of the tobacco products without the assistance of the person authorizing such display or offer, or an employee of such person. (Ord. 4056 § 4 (part), 1991) 9.14.100 Posting of signs required. 5 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* With the exception of service locations, wherever this ordinance prohibits smoking and the use of electronic smoking devices, conspicuous signs shall be posted so stating, containing all capital lettering not less than one inch in height, on a contrasting background. Signs of similar size containing the international "no smoking" symbol consisting of a pictorial representation of a burning cigarette and electronic smoking device enclosed in a red circle with a red bar across it may be used in addition to or in lieu of any signs required hereunder. Such signs shall be placed by the owner, operator, manager, or other persons having control of such room, building, or other place where smoking and the use of electronic smoking devices is prohibited. Signs placed at each entrance of buildings in which smoking is totally prohibited shall be sufficient. The absence of signs shall not be a defense to a violation of any provision of this chapter. // // 9.14.110 Enforcement. Pursuant to Section 6 of Article IV of the Palo Alto City Charter, the city manager is hereby granted authority to enforce the provisions of this chapter and Labor Code Section 6404.5. 9.14.120 Public nuisance. Any violation of this chapter is a public nuisance and may be abated in accordance with Chapter 9.56 of the Palo Alto Municipal Code and/or Code of Civil Procedure Section 731. 9.14.130 Violations to be misdemeanors. Violation of any provision of this chapter shall be a misdemeanor punishable as provided in this code. Violations shall be punishable by any of the following: warning, administrative citation, infraction, or misdemeanor. Violations shall also be punishable by the following fines: (1) A fine not exceeding $250 for the first violation; (2) A fine not exceeding $300 for the second violation; (3) A fine not exceeding $500 for each additional violation within one year. SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. 6 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* // // // // // // // // // // SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Public Works 7 150310 sh 0170010 Attachment B Policy and Services November 10, 2015 Action Minutes (Draft) 3. Provide Direction Regarding Expanding Smoking Ordinance to Include E-Cigarettes, Change Signage Language, and Include Additional Enforcement Options, Restrict Sales of Tobacco, Direct Staff to Draft Changes to Include Smoking Restrictions for Multi-Family Buildings, and Direct Staff to Support Increasing the Age for Tobacco Sales. MOTION: Council Member Berman moved, seconded by Council Member Wolbach to recommend the City Council adopt changes to the City’s Smoking Ordinance to include the addition of Electronic Cigarettes, changing signage language and to provide an additional option for enforcement of the City’s Smoking Ordinance. MOTION PASSED: 4-0 MOTION: Chair Burt moved, seconded by Council Member Berman to direct Staff to continue discussions with Santa Clara County on regulatory mechanisms related to retail sale of tobacco, including preventing new tobacco retailers from locating near schools. Council Member Berman: 2nd option for staff to reevaluate MOTION PASSED: 4-0 MOTION: Council Member Wolbach moved, seconded by Council Member Berman to recommend the City Council direct Staff to expand the Ordinance to multifamily housing indoor balconies and with allowances of designated area outdoors with property owner discretion. AMENDMENT: Chair Burt moved, seconded by Council Member Berman to add to the Motion, “with an evaluation of circumstances where stand-alone units could be smoking only exemptions.” AMENDMENT PASSED: 3-1 Wolbach no MOTION AS AMENDED PASSED: 4-0 MOTION: Chair Burt moved, seconded by Council Member DuBois to recommend the City Council direct Staff to support legislative efforts to raise the legal age to purchase tobacco from 18 to 21 years of age. MOTION FAILED: 2-2 Burt, DuBois yes MOTION: Chair Burt moved, seconded by Council Member DuBois to request Staff draft Ordinance language to restrict local sales of tobacco to 21 years old or older with Staff determining whether there are sub-issues to be received by the Committee or if not, for the Ordinance to go directly to the City Council. SUBSTITUTE MOTION: Council Member Berman moved, seconded by Council Member XX to recommend the City Council direct Staff to draft an Ordinance prohibiting the sale of tobacco in its entirety within Palo Alto City limits. SUBSTITUTE MOTION FAILED DUE TO LACK OF SECOND MOTION FAILED: 2-2 Burt, DuBois yes City of Palo Alto (ID # 6215) Policy and Services Committee Staff Report Report Type: Agenda Items Meeting Date: 11/10/2015 City of Palo Alto Page 1 Summary Title: Smoking Ordinance Revision Title: Provide Direction Regarding Expanding Smoking Ordinance to include E-Cigarettes, Change Signage Language, and Include Additional Enforcement Options, Restrict Sales of Tobacco, Direct Staff to Draft Changes to Include Smoking Restrictions for Multi-Family Buildings, and Direct Staff to Support Increasing the Age for Tobacco Sales From: City Manager Lead Department: Public Works Recommendation Staff requests that the Policy and Services Committee: 1.Recommend that Council adopt changes (Attachment A) to the City’s Smoking Ordinance that include addition of Electronic Cigarettes, changing signage language and providing an additional option for enforcement of the City’s smoking ordinance; 2.Direct staff to continue discussions with the County on regulatory mechanisms related to retail sale of tobacco, including ensuring new tobacco retailers are prevented from locating near schools; 3.Direct staff to draft changes to the municipal code to expand the smoking ordinance to multi-family housing common areas; and 4.Direct staff to support legislative efforts to raise the legal age to purchase tobacco from 18 to 21 years of age. Attachment A City of Palo Alto Page 2 Background City Council adopted an ordinance on December 15, 2014 (ID #5302) to expand smoking restrictions to outdoor commercial areas, outdoor dining areas, public events, work sites and service locations; include penalty escalation for repeat offenders; require cigarette butt receptacles and signage immediately adjacent and within areas covered by the ban. As part of adoption of the ordinance, Council referred further investigation of tobacco retailer licensing and indoor smoking restrictions at multi-family housing, as well as inclusion of e-cigarettes in the City’s smoking restrictions, to Policy and Services Committee for further consideration and action. Policy and Services Committee discussed these issues on May 12, 2015 (ID #5696) and moved: 1. Staff to draft an ordinance making e-cigarettes subject to the same regulations as the current smoking ordinance; 2. Staff to enact a tobacco retail license program and return to City Council for review and approval; 3. To continue recommendation on multi-family ban to a date uncertain and for staff to return to Policy and Services Committee with further information regarding: a. Engineered protections to prevent migration of carcinogens, such as exhaust systems for venting through roof lines; b. Cleaning processes to convert residential units from smoking (tobacco and e-cigarette) to non-smoking, and how potentially harmful materials are transferred and in what amounts do they become dangerous; c. Benchmarking with other multi-family ordinances and how they allow smoking (partial units, designated smoking areas, condo exemption process, disclosure process, etc.); and d. Possible legal contradiction with medical marijuana law. City of Palo Alto Page 3 According to Centers for Disease Control and Prevention, cigarette smoking is the single most preventable cause of premature death in the United States. Cigarette waste is also a significant source of litter. Discussion Following is a discussion on staff’s four recommendations: 1. Draft Ordinance In addition to inclusion of electronic cigarettes, the draft ordinance includes changes to signage language to remove current restrictions on letter sizes and add an additional enforcement tool (i.e. administrative penalties) to the smoking ordinance. Based on current implementation of the ordinance, these changes to the signage and enforcement language will improve implementation and enforcement. In addition, the current ordinance specifies no smoking in city “pool” cars, rather than all city vehicles. A minor change was made to have the ordinance apply to all city vehicles. 2. Tobacco Retailer Licensing The initial direction to staff was to research banning the sale of tobacco products in pharmacies. One approach to accomplish this ban is to adopt a tobacco retailer licensing program, which has the added benefit of better controlling tobacco sales to minors. Discussion at the May 2015 meeting resulted in the committee directing staff to implement a licensing program. Staff coordinated with the various departments needed to implement the program and learned existing staff levels could not accommodate the administrative burden of such a program. Two alternative approaches were developed: a. Continue discussions with County of Santa Clara Public Health Department to potentially outsource a program to the county with the City performing enforcement as needed.  San Mateo County Department of Public Health administers tobacco retailer licensing programs for cities in San Mateo County. Staff is currently in discussions with Santa Clara County Public Health Department to develop a similar program. Such an effort would still City of Palo Alto Page 4 require the City to pass a retailer licensing ordinance, however it would be administered by the County. b. Include restrictions on tobacco sales in the zoning code rather than implementing a licensing program. This could include language to cap the existing number of tobacco retailers, prohibit sales in pharmacies and/or prohibit any new retailers from locating within a specified distance, typically 1,000 feet, of a school, youth center or park or requiring a conditional use permit.  Although some cities have utilized land use zoning to restrict tobacco retailers, the vast majority of cities imposing restrictions are using tobacco retailer licensing. A zoning approach typically utilizes one of two approaches: i. Changes to the zoning code that restrict tobacco sales in certain zoning designations and/or restricting the proximity of tobacco retailers to schools or each other. The use of zoning in this manner is only used by eight cities in California. ii. Requiring potential tobacco retailers to seek a conditional use permit in particular zoning designations; this allows for an individualized determination about the appropriateness of such an activity in a particular location. Twenty cities in California use this method. While use of the zoning code is an option to consider, it is not used by the majority of municipalities that adopted programming to regulate sales and would result in some of the same resource and staffing concerns as a City- run tobacco retailer licensing program. Any changes to zoning will also require staff time to draft and navigate the City’s approval process, possibly extending the process. 3. Multi-Family Smoking Restrictions Policy and Services requested additional information on engineering protections, including venting and cleaning processes needed to convert a smoking unit to a non-smoking unit. The overall concern is exposure to Environmental Tobacco Smoke (ETS). Limited information is available to City of Palo Alto Page 5 answer the committee’s questions.1 The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) concluded:  It is the consensus of the medical community and its cognizant authorities that ETS is a health risk, causing lung cancer and heart disease in adults and exacerbation of asthma, lower respiratory illnesses and other adverse effects on the respiratory health of children;  At present, the only means of effectively eliminating health risks associated with indoor exposure is to ban smoking activity; and  Although complete separation and isolation of smoking rooms can control ETS exposure in non-smoking spaces in the same building, adverse health effects for the occupants of the smoking room cannot be controlled by ventilation. In 2006, the U.S. Surgeon General released a report entitled The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General. The report states that scientific evidence now supports the following: “Eliminating smoking in indoor spaces fully protects nonsmokers from exposure to secondhand smoke. Separating smokers from nonsmokers, cleaning the air, and ventilating buildings cannot eliminate exposures of nonsmokers to secondhand smoke.” This conclusion was substantiated in part, by the following facts:  Conventional air cleaning systems can remove large particles but not the smaller particles or the gases found in secondhand smoke;  Current heating, ventilating and air conditioning systems alone do not control secondhand smoke exposure. In fact, these systems may distribute secondhand smoke throughout a building; and  Even separately enclosed, separately exhausted, negative-pressure smoking rooms do not keep secondhand smoke from spilling into adjacent areas. 1 http://www.cdc.gov/tobacco/data_statistics/fact_sheets/secondhand_smoke/protection/ventilation/ City of Palo Alto Page 6 Research shows that particles from secondhand tobacco smoke can settle into dust and onto surfaces and remain there long after the smoke has disappeared. Some studies suggest the particles can last for months. This ETS is still being studied. Particles that settle out from tobacco smoke can combine with gases in the air to form cancer-causing compounds.2 No information on research for cleaning units was found. In addition, the committee requested benchmarking with other multi-family ordinances and associated smoking allowances (partial units, smoking areas designated, condo exemption process, disclosure process, etc.). The Center for Tobacco Policy has compiled a list of local California Smokefree Housing Policies.3 In Walnut Creek, a recent local ordinance bans smoking in all units and common areas of multi-tenant buildings, including new and existing units. Other ordinances allow landlords to establish smoking areas in outdoor common areas meeting criteria outlined in the ordinance. Some ordinances delay implementation or do not apply to existing units, do not include condominiums or include only common areas. Staff conducted a survey as described in Attachment B, which included a question on what type of ban was preferred. A majority of respondents supported a ban in all units and indoor and outdoor common areas. Few respondents favored excluding condominiums from the ban or banning smoking in only part of the units. The staff recommendation is to direct staff to pursue banning smoking in indoor and outdoor common areas at multi-family buildings. With specific criteria in the ordinance, including mandatory receptacles for cigarette butts, outdoor smoking areas could be permitted to be established by landlords or homeowners associations. Lastly, the committee requested additional information regarding possible legal contradiction with medical marijuana law. Under the ordinance as it currently stands, public smoking of marijuana – whether medicinal or not – is prohibited to the same extent and in the same locations as is regular tobacco smoke. Should the City expand the prohibition on smoking tobacco to multi- 2 http://www.cancer.org/cancer/cancercauses/tobaccocancer/secondhand-smoke 3 http://center4tobaccopolicy.org/wp-content/uploads/2013/12/Local-California-Smokefree-Housing-Policies- Detailed-Analysis-December-2013.pdf City of Palo Alto Page 7 family dwellings, the prohibition would automatically include a prohibition on medicinal marijuana unless Council adopted a specific exemption. Secondhand smoke from marijuana is harmful to the health of bystanders similar to tobacco smoke. California’s medical marijuana law includes the following language: “Nothing in this article shall authorize a qualified patient or person with an identification card to engage in the smoking of medical marijuana under any of the following circumstances: a. In any place where smoking is prohibited by law. b. In or within 1,000 feet of the grounds of a school, recreation center, or youth center, unless the medical use occurs within a residence. c. On a school bus. d. While in a motor vehicle that is being operated. e. While operating a boat.” Given item (a), medical marijuana would be included in the City’s smoking ordinance automatically. Should the City consider expanding the smoking ordinance to multi-unit buildings, an exemption process could be considered for those that are ill and hold recognized medical marijuana cards. In addition, Council inquired about the legal aspects of the City’s proposed regulation of medicinal marijuana usage in places of public accommodation and/or housing units under various state and federal laws requiring proprietors to provide a reasonable accommodation for persons with disabilities. While the case law is not fully developed in California, the existing case law suggests that there is no right under state law to be allowed to smoke medicinal marijuana in a housing complex. A 2008 California Supreme Court employment discrimination case suggests that the California's Compassionate Use Act of 1996 does not require an owner to allow the growing, smoking and/or possession of medical marijuana in residential rental property as a reasonable accommodation for a disabled person (Ross v. Ragingwire Telecommunications (2008) 42 Cal.4th 920). City of Palo Alto Page 8 4. Smoking Age At the County and State level, raising the age for tobacco and e-cigarette purchases from 18 to 21 has been considered. The Senate passed SB 151 while the County of Santa Clara passed an ordinance in unincorporated areas. Staff requests direction on whether to support such efforts through comment letters or a local ordinance should SB 151 be delayed. Additional information can be found in the letter from the County to cities (Attachment C). Policy Implications The adoption of the proposed ordinance would further Comprehensive Plan polices: N-5: Clean, Healthful Air for Palo Alto; and N-6: An Environment Free of the Damaging Effects of Biological and Chemical Hazardous Materials. In addition, Council adopted four priorities that will "receive particular, unusual and significant attention during the year," including “Healthy City, Healthy Community,” with which this effort is consistent. Resource Impact This ordinance will have resource impacts on City staff time and financial resources depending on the level of enforcement and/or outreach required by its implementation. The Police Department does not currently have resources to oversee additional enforcement efforts. Staff anticipates providing public outreach to educate residents and landlords/property managers of the newly adopted policies. Educational materials and signage costs will be paid with grant funding from the Santa Clara County Public Health Department and other public and private agencies. Environmental Review Provisions of this ordinance do not constitute a project under the Environmental Quality Act because it can be seen with certainty that no significant negative environmental impact will occur as a result of the amended ordinance. Attachments:  Attachment A - Revised Smoking Ordinance (PDF)  Attachment B 051215 5696 Discussion on Expansion of City Smoking Ordinance (PDF)  Attachment C Minimum Age Tobacco Letter_8.21.2015 (PDF)  Attachment D - Public Letter to Council (PDF) ATTACHMENT A *NOT YET APPROVED* Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapter 9.14 (Smoking and Tobacco Regulations) of the Palo Alto Municipal Code to Establish New Outdoor Smoking Restrictions in Commercial Areas and Outdoor Dining The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) That the adoption of this Ordinance is necessary to protect the public health, safety and welfare for the reasons set forth in amended section 9.14.005. The purposes of this Ordinance are to ban smoking in commercial areas, all dining areas, and worksite in order to reduce the risks of second hand smoke and vapor, reduce litter, and enhance enjoyment of these areas. SECTION 2. Chapter 9.14 of the Palo Alto Municipal Code is hereby amended to read as follows: Palo Alto Municipal Code Chapter 9.14: Smoking and Tobacco Regulations 9.14.005 Purpose. The purpose of this Chapter is to: (a) Protect the public health, safety and general welfare by prohibiting smoking and use of electronic smoking devices in public parks, public places, service locations, city pool cars, child day care facilities, and unenclosed eating establishments. (b) Ensure a cleaner and more hygienic environment within the city, reduce litter, and protect the City's natural resources, including creeks and streams. (c) Enhance the welfare of residents, workers, and visitors by reducing exposure to second hand smoke, which studies confirm can cause negative health effects in non-smokers. (d) Balance the needs of persons who smoke with the needs of nonsmokers, including children and youth, to be free from the discomforts and health threats created by exposure to second-hand smoke and vapor. 9.14.010 Definitions. The following words and phrases, whenever used in this chapter shall be construed as defined in this section: (a) "Bar" means an area which is devoted to serving alcoholic beverages and in which serving food is only incidental to the consumption of such beverages. "Bar" shall include 1 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* bar areas within eating establishments which are devoted to serving alcoholic beverages and in which serving food is only incidental to the consumption of such beverages. (b) ”City pool car" means any truck, van or automobile owned by the city and operated by a city employee. City pool car does not include vehicles operated by the police department. (c) “Commercial Area” means an area, including all publicly owned sidewalks, alleys, parking areas, public places, outdoor dining areas, service areas, etc. within areas zoned in the City’s Comprehensive Plan as regional/community commercial (including Downtown, California Avenue Business District, Town and Country, and Stanford Shopping Center) and Neighborhood Commercial. (d) "Eating establishment" means a coffee shop, cafeteria, short-order café, luncheonette, sandwich shop, soda fountain, restaurant, or other establishment serving food to members of the public. (e) “Electronic smoking device” means an electronic and/or battery-operated device that can deliver an inhalable dose of nicotine to the user. “Electronic smoking device” includes any product meeting this definition, regardless of whether it is manufactured, distributed, marketed or sold as an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, electronic hookah, electronic vape, vaporizer or any other product name or descriptor. (ef) "Employee" means any person who is employed by any employer in consideration for direct or indirect monetary wages or profit. (fg) "Employee eating place" means any place serving as an employee cafeteria, lunchrooms, lounge, or like place. (gh) "Employer" means any person who employs the services of an individual person or persons. (hi) "Enclosed" means either closed in by a roof and four walls with appropriate openings for ingress and egress or not open to the sky due to a cover or shelter consisting of a tarpaulin, tent structure or other impermeable or semi-permeable materials or fabric. (ji) "Motion picture theater" means any theater engaged in the business of exhibiting motion pictures. (kj) “Public Event” means events open to the general public, including but not limited to a farmers’ market, parade, craft fair, festival, or any other such event. (kl) "Public places" means enclosed areas within publicly and privately owned buildings, structures, facilities, or complexes that are open to, used by, or accessible to the general public. Public places include, but are not limited to, stores, banks, eating establishments, bars, hotels, motels, depots and transit terminals, theaters and auditoriums, enclosed sports arenas, convention centers, museums, galleries, polling places, hospitals and 2 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* other health care facilities of any kind (including clinics, dental, chiropractic, or physical therapy facilities), automotive service centers, general business offices, nonprofit entity offices and libraries. Public places further include, but are not limited to, hallways, restrooms, stairways, escalators, elevators, lobbies, reception areas, waiting rooms, indoor service lines, checkout stations, counters and other pay stations, classrooms, meeting or conference rooms, lecture rooms, buses, or other enclosed places that are open to, used by, or accessible to the general public. (ml) "Service locations" means those enclosed or unenclosed areas open to, used by, or accessible to the general public that are listed below: (1) Bus, train and taxi shelters; (2) Service waiting areas including, but not limited to, ticket or service lines, public transportation waiting areas, and public telephones; (3) Areas within twenty-five feet of the entrance or exit to an enclosed public place, where smoking is prohibited; (4) Areas in dedicated parks or other publicly accessible areas that are within twenty-five feet of bleachers, backstops, or play structures. (nm) "Smoking" means the combustion of any cigar, cigarette, tobacco or any similar article. (on) "Tobacco product" means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, smoking tobacco, and smokeless tobacco. (po) "Tobacco store" means a retail store utilized primarily for the sale of tobacco products and accessories and in which the sale of other products is incidental. (qp) "Tobacco vending machine" means any electronic or mechanical device or appliance the operation of which-depends upon the insertion of money, whether coin or paper bill, or other thing representative of value, which dispenses or releases a tobacco product and/or tobacco accessories. (r) “Vapor” means aerosol produced from use of an electronic smoking device. (sq) "Workplace" means any enclosed area of a structure or portion thereof used as a place of employment as well as unenclosed workplaces, such as outdoor construction sites. 9.14.020 Smoking prohibited - Enclosed Places. Smoking and the use of electronic smoking devices is prohibited in the Enclosed Areas of the following places within the City of Palo Alto, except in places subject to prohibition on smoking contained in Labor Code section 6404.5, in which case that law applies (1) Workplaces; 3 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* (2) Public places; Any places exempted by the California smoke free workplace law (Labor Code Section 6404.5(d)) are not exempt under this chapter. Smoking is prohibited by this chapter in all places exempted by that State law, except as provided in 9.14.070. 9.14.025 Smoking prohibited - Unenclosed Areas. (a) Smoking and the use of electronic smoking devices in all unenclosed areas defined as Service Locations shall be prohibited, including a buffer zone within 25 feet from any doorway, window, opening, crack, or vent into an Enclosed Area in which Smoking is prohibited, except while the Person Smoking is actively passing on the way to another destination and provided Smoke does not enter any Enclosed Area in which Smoking is prohibited. (b) Smoking and the use of electronic smoking devices is prohibited in unenclosed eating establishments and bars. 9.14.030 Smoking prohibited - City pool cars. Smoking and the use of electronic smoking devices is prohibited in all city pool cars. 9.14.035 Smoking Prohibited - Public Parks and Public Events. Smoking and the use of electronic smoking devices is prohibited in all parks, including at public events. 9.14.040 Smoking prohibited - Child day care facilities. Smoking is prohibited in a private residence which is licensed as a child day care facility within the meaning of Health and Safety Code Section 1596.750 and Section 1596.795 and amendments. 9.14.050 Smoking prohibited – Commercial Areas and Public Events. Smoking and the use of electronic smoking devices is prohibited in commercial areas, except places where smoking is already prohibited by state or federal law, in which case those laws apply. This prohibition includes public events held on public streets. A shopping center or commercial areas may establish a designated smoking area that is at least 25 feet away from any openings and includes receptacles to control litter. 9.14.060 Reserved.* * Editor's Note: Former Section 9.14.060, Regulation of Smoking in the Workplace, previously codified herein and containing portions of Ordinance Nos. 4056 and 4164 was repealed in its entirety by Ordinance No. 4294. 4 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* 9.14.070 Exemptions. The following places and workplaces are exempt from Section 9.14.020: (a) Smoking at theatrical production sites is not prohibited by this subsection if the theater general manager certifies that smoking is an essential part of the story and the use of a fake, prop, or special effect cannot reasonably convey the idea of smoking in an effective way to a reasonable member of the anticipated audience. This exception will not apply if minors are performers within the production. (b) Bingo games, consistent with prohibition on smoking contained in Labor Code section 6404.5 and licensed pursuant to the Palo Alto Municipal Code, which do not permit access by minors under eighteen years of age (c) A fully enclosed room in a hotel, motel, other transient lodging establishment similar to a hotel, motel, or public convention center which is being used entirely for a private function and which is not open to the general public, except while food or beverage functions are taking place, including setup, service, and cleanup activities, or when the room is being used for exhibit purposes, sixty-five percent of the guest rooms in a hotel, motel, or similar transient lodging establishment; (d) Tobacco stores with private smokers' lounges meeting the requirements of the applicable portions of subdivision (d)(4) of Labor Code Section 6404.5. 9.14.80 Location of tobacco vending machines. (a) No person shall locate, install, keep or maintain a tobacco vending machine except in a place which under state law is not lawfully accessible to minors. (b) This section shall become effective ninety days after its enactment. Any tobacco vending machine not in conformance with this section upon its effective date shall be removed. 9.14.090 Display of tobacco products for sale. No person shall display or offer tobacco products for sale except in an area, or from within an enclosure, which physically precludes the removal of the tobacco products without the assistance of the person authorizing such display or offer, or an employee of such person. (Ord. 4056 § 4 (part), 1991) 9.14.100 Posting of signs required. With the exception of service locations, wherever this ordinance prohibits smoking and the use of electronic smoking devices, conspicuous signs shall be posted so stating, containing all capital lettering not less than one inch in height, on a contrasting background. Signs of similar 5 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* size containing the international "no smoking" symbol consisting of a pictorial representation of a burning cigarette and electronic smoking device enclosed in a red circle with a red bar across it may be used in addition to or in lieu of any signs required hereunder. Such signs shall be placed by the owner, operator, manager, or other persons having control of such room, building, or other place where smoking and the use of electronic smoking devices is prohibited. Signs placed at each entrance of buildings in which smoking is totally prohibited shall be sufficient. The absence of signs shall not be a defense to a violation of any provision of this chapter. // // 9.14.110 Enforcement. Pursuant to Section 6 of Article IV of the Palo Alto City Charter, the city manager is hereby granted authority to enforce the provisions of this chapter and Labor Code Section 6404.5. 9.14.120 Public nuisance. Any violation of this chapter is a public nuisance and may be abated in accordance with Chapter 9.56 of the Palo Alto Municipal Code and/or Code of Civil Procedure Section 731. 9.14.130 Violations to be misdemeanors. Violation of any provision of this chapter shall be a misdemeanor punishable as provided in this code. Violations shall be punishable by the following: (1) An administrative citation and Aa fine not exceeding $250 for the first violation; (2) An infraction and Aa fine not exceeding $300 for the second violation (3) An infraction or a misdemeanor and Aa fine not exceeding $500 for each additional violation within one year SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. // // 6 150310 sh 0170010 ATTACHMENT A *NOT YET APPROVED* // // // // // // // // SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Public Works 7 150310 sh 0170010 City of Palo Alto (ID # 5696) Policy and Services Committee Staff Report Report Type: Agenda Items Meeting Date: 5/12/2015 City of Palo Alto Page 1 Summary Title: Discussion on Expansion of City Smoking Ordinance Title: Discussion and Direction on Expansion of City Smoking Ordinance to Multi-Family Housing, Adding Electronic Cigarettes, and Restricting Sales of Tobacco Products and E-Cigarettes From: City Manager Lead Department: Public Works Recommendation: Staff requests that the Policy and Services Committee: 1.Review the results of outreach to multi-family building tenants and landlords based on those results and the Council’s 2015 Healthy City/Healthy Community priority to provide direction to staff to draft an ordinance expanding the City’s smoking ordinance to multi-family buildings; and to: 2.Provide direction to staff to draft an ordinance making e-cigarettes subject to the smoking ordinance; and 3.Provide direction to staff regarding the restrictions on the sale of tobacco products, including requirements regarding tobacco retailer licensing. Background: The City Council adopted an ordinance on December 15, 2014 (ID #5302) to expand smoking restrictions to outdoor commercial areas, outdoor dining areas, public events, work sites and service locations; include penalty escalation for repeat offenders; require cigarette butt receptacles and signage immediately adjacent and within areas covered by the ban. As part of adoption of the ordinance, the Council referred further investigation of tobacco retailer licensing and indoor smoking restrictions at multi-family housing, as well as inclusion of e- Attachment B City of Palo Alto Page 2 cigarettes into the City’s smoking restrictions, to the Policy and Services Committee for further consideration and action. According to the Centers for Disease Control and Prevention (CDC), cigarette smoking is the single most preventable cause of premature death in the United States. Frequent and recurring exposure to second-hand smoke can cause health problems such as asthma, heart disease, cancer and Sudden Infant Death Syndrome (SIDS), as well as worsen a chronic illness. In terms of multi-family housing, the home is the place where children are most exposed to secondhand smoke, and it's a major place for second-hand smoke exposure for adults. The US Surgeon General has concluded that “There is no risk-free level of exposure to secondhand smoke.” Breathing even a little secondhand smoke can be harmful. According to the American Lung Association, residents in multi-unit housing are exposed to secondhand smoke, because it can migrate from other units and common areas and travel through doorways, cracks in walls, electrical lines, plumbing, and ventilation systems. Eliminating smoking in multi-unit housing can also contribute to higher property values and decreased fire risk. Cigarette waste is also a significant source of litter. Discussion: Indoor Smoking Restrictions – Multi Family Staff conducted outreach to multi-family residential units by mailing 8,549 postcards to landlords and tenants of the City’s multi-family units on March 9, 2015 and directing them to an on-line survey or phone number to provide input. Phone responses were entered into the on-line survey by staff. 505 responses were received by April 10, 2015. Of the respondents, the majority (96%) were residents in multi-unit housing. Only two percent of the respondents were landlords and another two percent were other residents, business owners, visitors, or employees. Of the respondents, the majority (95%) were non- smokers. In terms of the current state of smoking restrictions, of the nine landlords/property managers that responded, five indicated that their complexes currently allow smoking and four indicated that smoking was not allowed. This mirrors the responses from residents, where 51% indicated that their complex allows smoking in all units, with an additional 19% allowing smoking in common areas, six percent allowing smoking in some units, and 24% not allowing smoking. City of Palo Alto Page 3 Of the landlords/property managers, the majority (56%) have had to deal with complaints about second-hand smoke from their tenants, and they all support partial or complete bans of smoking in multi-unit housing. Support for a designated smoking area was nearly evenly split with five of the nine respondents not supporting a smoking area in their complex and four supporting. Of the residents who responded, the majority (57%) indicated that smoke in the complex grounds outside bothers them very much, with an additional 17% indicating it bothers them somewhat and 8% feel a little bothered. A majority (80%) also indicated that smoke inside the unit bothers them, 64% indicating it bothers them very much. Of residents, the majority of the respondents (90%) are in favor of smoking restrictions in multi-unit housing. Of those in favor of smoking restrictions, the following options were supported:  Banning smoking in all units (82%)  Banning smoking in some units (30%)  Banning smoking in indoor common areas (72%)  Banning smoking in outdoor common areas (68%)  Rather than requiring owners of condos to comply immediately, making condo units smoke-free upon resale only (19%) Comments indicate strong support for smoking restrictions in multi-tenant housing due to health concerns from smoke permeating through walls, entering units through open windows, and from sidewalks, with some respondents requesting restricting smoking within 25 feet of the buildings to ensure that smoke does not enter the units from the sidewalks. Many respondents are concerned about their children being exposed to second-hand smoke or have health concerns that are exacerbated by their neighbors’ smoking. Some respondents voiced concern about restricting smoking inside units and infringing on private property rights. See Attachment A for the written responses received. A survey conducted by the County in 2011-12 had similar results with the majority of landlords and tenants supporting smoke-free multi-unit housing complexes. Many cities and counties in California have implemented restrictions on smoking in multi-tenant housing, including Santa Clara County, San Mateo County, San Rafael, Belmont, Richmond, and Walnut Creek. The City of San Jose restricts smoking in common areas only. Smoking restrictions in multi-tenant housing are City of Palo Alto Page 4 strongly supported by a majority of tenants based on positive results such as improved health protection, reduced fire risk, and higher property values. Staff recommends drafting an ordinance to restrict smoking in multi-unit housing for Council approval that includes all units, common areas, and buffer area on sidewalks. E-cigarettes According to a letter sent to cities in Santa Clara County by the County of Santa Clara Public Health Department in April 2014, “the rapidly increasing use of electronic smoking devices (commonly referred to as electronic cigarettes, electronic cigars, electronic cigarillos, electronic pipes, electronic hookahs, electronic vapes, or vaporizers), threatens to undo much of the social norm change around tobacco use which has largely resulted from health and tobacco prevention policies like the ones implemented by the County and cities throughout Santa Clara County. Public health advancements could be undermined by the unrestricted use of e-cigarettes, which produce a smoke-like aerosol in public, and widespread, unrestricted advertising of such products in ways that have been restricted for cigarettes and other tobacco products for decades. The use of these products presents health hazards to the users and potentially to bystanders as well.” The County has amended the County’s tobacco control ordinances for unincorporated Santa Clara County to include electronic smoking devices. Several cities have also included e-cigarettes in their smoking ordinances, including Sunnyvale, Santa Clara, Foster City, Fremont, Dublin, and Mountain View. A CDC study showed that in 2011, 4.7% of all high school students had tried e-cigarettes and that in 2012, that number increased to 10.0% of all high school students. The letter from the County included the Factual Findings (see Attachment B) supporting an inclusion of restrictions on e-cigarettes in current smoking bans. Given the unknown public health impacts and the current lack of regulation, the Public Health Department recommends a precautionary approach in regulating the use of electronic smoking devices, until their safety is conclusively established. At this time, no restrictions exist to using e-cigarettes in Palo Alto, including in municipal buildings, restaurants, and city cars. City of Palo Alto Page 5 Staff recommends including e-cigarettes in the existing smoking ordinance and banning use of e-cigarettes in all areas where tobacco is currently banned. Consistent with the County’s ordinance, such a ban on e-cigarettes would not extend into units of multi-family housing as there is currently no evidence that vapor moves between units. Tobacco Retailer Licensing At a presentation to the Policy and Services on June 17, 2014 (ID #4704), the committee moved to ban the sale of tobacco products and e-cigarettes in pharmacies, however, due to staff resourcing issues, such restrictions have not yet been pursued. One way to ban tobacco products in pharmacies is to adopt a tobacco retailer licensing program, which has the additional benefit of better controlling tobacco sales to minors. In Palo Alto, the 2014 illegal sales rate to minors was 15 percent. There are currently 33 stores that sell tobacco in Palo Alto, and more than half (58%) of those stores are located within 1,000 feet of a school. The current California state tobacco retail licensing law requires only a one-time fee for a license and is not an effective vehicle to enforce sale of tobacco to minors or restricting the sale of tobacco in targeted areas (such as within 1,000 feet of schools). The cities of San Jose, Campbell, Gilroy, Morgan Hill and Santa Clara County have adopted tobacco retail licensing programs. These self-funding programs give local jurisdictions the authority to hold retailers accountable for selling tobacco to minors and to restrict the sale in targeted areas or retail locations such as near schools, parks, and in pharmacies. The programs can be tailored to grandfather existing uses as desired. Staff recommends that in order to implement the Policy and Services direction to restrict the sale of tobacco products in pharmacies, a tobacco retailer licensing program be considered, including conducting outreach to pharmacies in Palo Alto. Policy Implications: The adoption of an expanded ordinance would further Comprehensive Plan polices: Policy N-5: Clean, Healthful Air for Palo Alto; and Policy N-6: An Environment Free of the Damaging Effects of Biological and Chemical Hazardous Materials. In addition, this effort is consistent with the 2015 Council Priority: Healthy City, Healthy Community. Resource Impact: City of Palo Alto Page 6 This ordinance will have impacts on ongoing City staff time and financial resources depending on the level of enforcement and/or ongoing public information required by its implementation. It is anticipated that Police Officers or Code Enforcement Officers will respond to violations of the ordinance on a complaint basis. Staff time and resources would be required to set up and implement the tobacco retailer licensing program. The license fee is expected to fund the ongoing cost of the program. Staff anticipates providing public outreach to educate residents and landlords/property managers of the newly adopted policies. Educational materials and signage costs are eligible for grant funding from the Santa Clara County Public Health Department and other public and private agencies. Staff will pursue such grant funding. Timeline: Staff recommends bringing proposed ordinance language back to the Policy and Services Committee in the fall of 2015. Attachments:  A - Survey Responses (DOCX)  B - E Cigarettes (PDF) Attachment A: Responses to Survey Question 12 Do you have comments, concerns and suggestions or concerns that you would like to share with us related to restricting smoking in multi-family buildings? smoking in a[n] apartment building affects everyone here. I'm retired and home all day as well as our smoker. 4/9/2015 4:24 PM I think restricting smoking indoors is just fine. Smoking should be limited to outdoor areas away from windows and doors, for courtesy and health. 4/9/2015 1:28 PM Older buildings such as our own (built in 1977) have poor ventilation/insulation between units, so we do smell tobacco smoke from the unit beneath us, even if all windows are closed. Smoking is prohibited in the common areas of our complex, but if we can smell the smoke from the individual units (where it is allowed), the rule doesn't truly protect the non-smokers. Banning smoking entirely, from inside individual units as well, would be the best course of action for the health and safety of all who live here. Plus, such a change shouldn't be "grandfathered in," thus allowing current smokers to continue to smoke. The new rule should apply, effective immediately, to all units. Smokers should be required to find other living arrangements. 4/7/2015 8:49 PM Please, please, please pass this ordinance. I had to move out of an apartment in Sacramento in 2007 because there was a smoker above me - he would smoke in his apartment and the way the building was constructed the smoke would travel down common vents into my apartment. There was no way to stop it. I am very allergic to smoke - it can trigger asthma attacks for me so it is an issue with not just health but a serious safety concern. Living in Stanford West has not been easy either. We lived next to three smokers (2 have been replaced with non-smokers as of this year) and we dealt with smoke entering our apartment constantly (even through the common bathroom vent from the smoker below our unit). I have asked management for help but they refuse to do anything. As you consider this ordinance please keep in mind that a smoking ban inside units is a great starting point but to allow smoking on balconies or anywhere near the buildings means that smoke drifts throughout the complex and, if windows are open (which is obviously common for units in the area), smoke enters another unit. Please pass this ordinance, I can't voice my support strongly enough. 4/7/2015 11:35 AM I cannot even open my sliding door because my [n]ext door neighbor smokes & the smoke comes up into my room & bothers me. 4/5/2015 9:12 PM Palo Alto should continue to demonstrate its leadership on public safety issues by implementing the strictest possible anti-smoking ordinances in multi-family buildings. 4/5/2015 5:39 PM Smokers seem to think that smoking outside is not a problem, but the smell permeates my residence. When it occurs, I consider it a major nuisance. 4/5/2015 12:01 PM Smokers are selfish and inconsiderate. They smoke in common areas and expose other people to dangerous second hand smoke. 4/2/2015 12:11 PM Second hand smoking is not only unhealthy in general, it particularly It aggravates the condition of asthma and COPD 4/2/2015 10:18 AM The person over the phones said that tenants smoke above and below and it comes down through the heater vent. For her, it affects her throat. For her neighbor, it gives her swollen eyes. Her neighbor has already complained to City Hall. People smoke in their cars, but it still comes in through her windows. 4/2/2015 9:23 AM I have owned my condo for over 25 years. I am a non-smoker and none of my guests has ever smoked in my home, at my request. But I would very much resent the idea that the City could tell me I could not smoke here if I wanted to. I would consider that discrimination against people who live in multi-unit housing. The City is going too far here. 4/1/2015 2:29 PM Smoking is allowed in all apts. and on the grounds of our complex. The biggest problem is the smoking that takes place in outdoor common areas. Smoke wafts into non-smokers' patios, balconies, and apts. (when windows/doors are open) and there's no way to remove it. Smokers sit on benches near apts. and smoke. This is terrible for the health of non-smokers and those with health issues (asthma, allergies, etc.) Please ban smoking in multi-unit housing outdoor common areas asap!! (And be sure to include marijuana smoking--indoors and out--in the smoking ban.) If this restriction is passed, how will it be effectively enforced? Most people in this area don't even respect the existing restrictions regarding outside smoking distance from buildings. Note: Complex employees and contracted workers who smoke near apts. are part of the problem. 4/1/2015 1:52 PM In warm months when my neighbors have their windows open I get second hand smoke every night at 10:00 coming out neighbors' windows and into mine. If residents are allowed to smoke in the units they must be required to keep windows closed. This ordinance is very important because as more buildings prohibit smoking, other buildings are filling up with the displaced smokers. 4/1/2015 1:41 PM Second-hand smoke exposure in multi-family units is too common - we are forced to shut our windows when smokers walk past outside, or if smokers are on their balcony and it wafts in. Smoke has even come through the bathroom vent. 3/31/2015 9:55 PM I strongly believe we should have an ordinance against smoking in multi-unit homes, up to 30 feet away from the property. We have young children living in our home breathing in second hand smoke from our neighbors. 3/29/2015 8:59 PM All smoking should be restricted in all units and in all common spaces. But how to enforce? 3/29/2015 5:29 PM Smoking is not currently a big problem (only the apartment manager smokes outside), but I wouldn't want to move into a unit that had a stale smoke smell, and it's better not to have to confront it when outside. However, I don't know how much this restricts people's freedom and rights if they can't smoke in their own unit. 3/27/2015 10:47 PM I think smoking should be prohibited inside and out except for in designated, separate smoking areas. 3/27/2015 2:05 PM I live on Tasso downtown across from Bank of America. Employees from businesses smoke at this location. The smoke filters to my bldg. How can this be stopped with or without ordinance. Actually, this area is also used as an outdoor male restroom. Thank you 3/25/2015 3:00 AM Palo Alto - Police State 101? While I don't appreciate people sitting on their balconies smoking with the wind blowing smoke into my apartment, I'll take that any day over the rules and regulations which are eroding our rights and lifestyles at an alarming rate. Perhaps you could spend more time actually making it a town worth living in (it's definitely heading in the wrong direction) instead of making so many rules and regulations that no one can simply relax and enjoy what little time they might have for that purpose. 3/24/2015 1:25 PM none 3/24/2015 7:02 AM Due to close proximity, I think smoking should be prohibited, even on personal balconies, garages, and patios. 3/23/2015 10:11 PM Great idea to restrict second-hand exposure to smoking. Thanks! 3/23/2015 9:02 PM We have the problem that: 1)Despite that our building does not allow smoking, our resident managers smokes both inside his unit and outside, 2) People smoke just outside our unit, and it comes in our windows which is terrible and makes our eyes water. 3/23/2015 8:02 PM In a multi-unit building, smoking bans are very important, because the likelihood of a smoker present in another unit unfortunately is high. Many unit residents in attempt to accommodate other unit residents stick their heads outside a window and smoke. The second hand smoke filters to other units. One should not have to tolerate second hand smoke. 3/23/2015 5:06 PM Although I am not a smoker, I think it is unfair to ban smoking in all the units in multi-family building. Restricting smoking in shared/common areas such as pools, garage, laundry room, etc, however, should be seriously considered. In addition, smoking should be restricted on streets nearby hospitals (for example, Welch road on which LPCH, Stanford hospital and cancer center are located), daycare center, children's playground as well as busy streets (University ave and California ave). 3/23/2015 4:37 PM The person over the phone said that smoking is ok in private units. 3/23/2015 2:50 PM The person over the phone said that a campaign on second hand smoking should be considered. 3/23/2015 2:49 PM The person over the phone suggested that hypnotism has been shown to solve smoking. She also says that she does not like smoke and that it is a bad habit. 3/23/2015 2:46 PM The person over the phone said that she is a non-smoker and objects to smoke. 3/23/2015 2:45 PM none 3/23/2015 2:43 PM The person over the phone said that it would be great to not put up with second hand smoking from next door condo. 3/23/2015 2:42 PM The person over the phone said that many of the people who are smokers in her apartment building are transient people from outside of CA. She doesn't think that there should be smoking allowed at all. A lot of smoke comes up from their balcony. 3/23/2015 2:40 PM The person over the phone said that they are against smoke and second hand smoke. 3/23/2015 2:38 PM very good idea 3/23/2015 2:37 PM Smoking is not only an issue as it happens, I have lived in units here where smoking by previous tenants has so saturated the walls and structure that it continues to be noticeable and have impact (I am allergic) long after they have left. 3/23/2015 2:09 PM I'm a nonsmoker and I'm certainly keen for any rental cars, hotel rooms and apartments that I use to be smoke-free. And I'm very grateful that smoking on aircraft was before my time. But I do wonder whether the whole "no smoking pretty much anywhere" push has gone too far. w.r.t. apartment dwelling, yes, I'd like my apartment and the laundry to be smoke-free, but I don't object to folks smoking outside, and it would be OK with me (maybe not with the landlord?) if there were designated smoking apartments. Anecdote: a while ago the tenant of the next-door apartment was asked to leave after, I gather, repeatedly flouting the no-smoking-inside rule, and I agree that that constitutes reasonable grounds. 3/22/2015 9:41 PM I strongly support a smoking ban to multi-unit housing. My building, the marc, only very recently banned smoking (I should also mention the non-smoking signs are a joke and not forceful at all). As someone who was pregnant prior to the smoking ban, I found the smoke coming into our apartment to be unbearable. It's a horrible thing that I should I have to keep my windows closed to protect myself and my family. It's not enough to allow people to only smoke in their units. Most people would smoke on their porches and the smoke would travel. Please please please ban smoking in multi-unit housing. 3/22/2015 9:25 PM The housing stock in CA is very poorly built, with little insulation between units. Thus, if one person smokes in the unit, it typically permeates the wall and transfers into other units. That's an immediate health issue, as well as something that devalues properties / is not easily or cheaply repaired. Smoking on balconies definitely impacts other units, forcing the non-smokers to close windows for the smokers habit. In pushing people out of smoking in / on balconies of units, you also need to be thoughtful of where they go to smoke. The current 15' barrier is grossly insufficient. Common areas are critical too -- my unit butts up again a pool of a neighboring complex and they unfortunately allow smoking at their pool. Ultimately, I need to have control over my personal health and property value,not be subject to the behavior of others to diminish. Rental property units are also typically all about keeping their cash flow going by keeping the customer happy and basically let anything go until someone complains, and then typically do little to address long term. They typically have deeper pockets to remediate smoking damage (in drywalls /carpet), so I hope you weight their input appropriately. They care about their bottom line, nothing else. Finally, d[ue] to the current overcrowding, a lot of bad rental behavior is going on -- running businesses out of MF housing units, exceeding the occupancy limits, short term rentals. The city needs to be MUCH more aggressive in its policies so we are not benefiting the 1% who are buying up and renting out property at the expense of those living in a primary residence. Need residency rules, short term rental rules, etc. 3/22/2015 1:19 PM Of far greater concern for the population of this city is the mostly odorless car pollution since most condos and townhomes are located next to heavily traveled street traffic. That is a far more difficult issue to mandate, so pick on a small minority of homeowners. Most owners have respect for their neighbors and do not smoke were others are affected. No balcony smoking is important. I smoke under my kitchen fan, up,up and away from everyone. I also am the owner of an older townhome with over 1200 sg. feet of garden space as do all my neighbors. I am greatly concerned about owning a 1 1/2 million dollar home for 30 years and the city is restricting my use of my private property. 3/22/2015 9:39 AM Leave the smokers in peace, you're already harassing them too much. If you feel the need to micromanage someone's life, start inspecting the homes of every person receiving city-paid healthcare! 3/21/2015 4:29 PM People should be allowed to smoke in the privacy of their home and surrounding common areas. It is up to their neighbors, not larger governing bodies, to establish standards regarding smoking and associated behaviors. 3/21/2015 1:42 PM 2nd hand smoke, cigarette butts on ground where my kids play. 3/21/2015 7:00 AM I have never smoked, I don't care for second-hand smoke, but leave the poor smokers alone. They should be able to smoke in their own apartment. 3/20/2015 2:12 PM Please extend restrictions to what is technically Stanford land - Stanford West specifically. people smoke in outdoor common areas and the smoke enters individual units. And affects families playing on playgrounds and in common areas. We are exposed to considerable second-degree smoke that could be completely avoided. Please help us protect ourselves--and especially our kids--from smoke exposure. Thank you! 3/19/2015 8:39 PM Prohibiting smoking in multi-unit residential areas would be a breath of fresh air for people like me and my family. We are very sensitive to tobacco smoke. It causes irritation in our airways, allergies, asthma. We have other concerns, of course, such as second smoke exposure leading to grave health consequences up to lung cancer. We had to move before to avoid exposure to smoke. In our current apartment we are on the landlady's and neighbors' mercy. The owner is not willing to include a "no smoking" clause in the lease agreement. The landlady asks potential tenants if they smoke and is generally happy with a simple "no". There is no reinforcement. We had smoking neighbors before and it was hell because the insulation in these old apartments is poor. The smoke penetrates through electrical fixtures and perhaps cracks, just as sound does. We have to run from one room to another depending upon where our neighbors downstairs choose to smoke this time. That includes sleeping in different rooms at nights. Please ... please pass this ordinance. That will be a legal reason for us to try to protect our health and well-being. At present, we are helpless. 3/19/2015 6:50 PM why stop there? Please ban fume spewing cars and trucks. Please ban the use of precious fresh water on grass. 3/18/2015 11:28 PM While waiting until a condo unit is resold to enforce this restriction is more realistic, cigarette smoke drifts across units and affects the quality of life for all. It would be lovely to walk around our complex without having to pass by smokers. We have to close our windows whenever our neighbors smoke either tobacco or marijuana. We have had to invest in air filters to clear the air. Thank you for giving me and my children hope! 3/18/2015 6:26 PM not in favor 3/18/2015 4:56 PM Although I don't smoke, I think it's important to create areas where it's *possible* to smoke, so that smokers have a safe and legal place to smoke. 3/18/2015 4:15 PM I believe that such an ordinance is highly discriminatory against the elderly smokers, some of whom are bed ridden, in wheel chairs, or otherwise partially incapacitated. In short, there is a war being waged against smokers. 3/18/2015 12:06 PM I wouldn't mind if people smoke in their own unit, as long as the smoke doesn't enter my unit or any common spaces. Unfortunately, smoke is hard to control and most often invades all surrounding space, private and public. 3/18/2015 10:26 AM How would this be enforced? The manager at my complex smokes, I believe both inside their apartment and in the back parking area. I smell it often. Would the city be willing to intervene in such a case, when there's a clear disincentive for the complainant to approach the smoker? 3/18/2015 8:54 AM I believe smoking is restricted enough in PA and that people should be able to smoke in their own homes including patios & decks. 3/18/2015 7:36 AM The smoke in other Condominiums seeps into my unit and makes my asthma worse. When people smoke outside in the designated area the smoke still enters the building. The more restrictions the better. I would like the freedom to breath[e] 3/18/2015 5:35 AM In addition to the benefits you mention, it would also reduce the risk of fires 3/18/2015 12:07 AM Smoking is a health and safety hazard to all residents. 3/17/2015 10:11 PM Other people who come from the Glass Slipper Inn to our apartment complex and smoke around our building. In other words, people who don't live in our complex who come and smoke on our property is something that is difficult to monitor and control. 3/17/2015 9:36 PM We own our condo and moved into it in late 2006. Our downstairs neighbors also own and lived here before us. They smoke sometimes and were better about not doing it in their unit when we had a newborn but over the years they have stared back up. It's especially bad in the summer / hot months as we all have windows open and the smell comes in. Also, in our downstairs bathroom it frequently smells of [cigarette] smoke since it comes through the floor. 3/17/2015 8:33 PM How would these rules be enforced? I have neighbor that smokes on her patio - it's awful to walk by. 3/17/2015 8:17 PM I feel sorry for the smokers who will be excluded. But i also have lung cancer (tho' never a smoker) and *cannot* be in favor of any smoke affecting anyone but the smoker. Just call it "tough love"; making things tough for smokers is really for their own good . . . . 3/17/2015 7:49 PM I empathize with a smoker who cannot quit smoking, but I am bothered by the smoke smell in our hallway. The resident who smokes does not smoke outside his/her unit but still the smell of smoke gets out to some extent. 3/17/2015 6:32 PM We live in a multi-unit above a restaurant. Both workers and restaurant patrons smoke near walkways leading to our stairwell. It's worse on rainy days when everyone huddles around the stairwell as they smoke. 3/17/2015 3:55 PM It should happen right away - impossible to escape the negative effects of smoking when in close proximity neighbors are smoking. Merely going to my mailbox makes my clothes and hair smell like I've been to a smoking bar. 3/17/2015 12:11 PM Smoking should not be allowed within common areas and should be enforced. 3/17/2015 10:21 AM One - Second hand smoke bad for the kids, who don't have a choice. Two - It sets a bad example. Three - When we moved in, there were lingering smell issues. Four - Broken window theory - when smoking is allowed, it leads to smoking things stronger than tobacco. (Again, the kids have no choice) 3/17/2015 7:02 AM We live in an area where we have windows open at least 75% of the year. However, if someone was smoking outside of my complex or even on the road, I would be very affected by this smoke, even though I am inside my apartment. 3/16/2015 11:04 PM Hello, there are several smokers in our complex that violate the rules and smoke near windows of other complexes. My children and I are regularly exposed to second hand smoke as it easily blows through the house with the cross-breeze, with a clear strong smell. Our landlords are unwilling to confront the violators. One excuse is that it's hard to forbid people from smoking in their own unit, including their outdoor enclosure, but that is directly under other units' windows. 3/16/2015 9:52 PM I do not like smoking at all; but think people should be able to smoke in units they own. If rented, [landlord] can make it a no smoking unit. 3/16/2015 9:32 PM I support smoking restrictions as smoke easily travels between units and it is a very unhealthy for others. 3/16/2015 9:20 PM I've never been a smoker, but I don't support Palo Alto dictating so much of people's behavior in their own home. Apartment and condo complexes should be able to make their own rules on this. 3/16/2015 7:16 PM I'm on my HOA board. How would such a regulation be enforced? Would we be liable if we did not monitor/report fellow residents? We really don't want to have to be involved. 3/16/2015 6:54 PM I have no idea what the smoking restrictions in my building are currently. (I just guessed in my answer.) 3/16/2015 6:15 PM Great idea, primarily for safety reasons 3/16/2015 8:53 AM people should be able to smoke in the[ir] own homes 3/16/2015 5:42 AM Please restrict cigarette smoking any way you can. Thank you. 3/16/2015 4:06 AM I personally don't smoke, but I do feel strongly that if a landlord wishes, the landlord should be able to allow residents to choose to smoke in their units and/or common areas, rather than there being a blanket ban enforced by the city. Individuals (such as myself) who are bothered by smoke or worried about health risks could choose to stay in other apartment units where smoking was disallowed. In particular, I notice a greater acceptance of smoking in other countries outside of the United States, and it would seem unfortunate and intrusive to disallow people from smoking in the privacy of their own homes. 3/15/2015 9:32 PM Neighbors smoke outside the window and it's constantly in my [apartment]. In general I support the restriction. 3/15/2015 7:38 PM We live in dwellings that share or leak air because I smell others food cooking. Cigarette smoke is much more detrimental to my lung issues if it seeps into my apartment. 3/15/2015 5:20 PM I have a toddler, and I live in an apartment complex with many toddlers. When someone smokes in common areas, it is hard for families with young children who wish to keep young ones away from smoke. It is not fair to one and two year olds who have no choice to breath the smoke. 3/15/2015 4:21 PM We have a one year old and are very concerned with exposure to second hand smoke outside our apartment complex 3/15/2015 4:16 PM Some residents in our multi-unit complex smoke on their balcony, while the children are playing on the few lawn areas right next to the balcony. I'd like to avoid my children having 2nd-hand smoking. 3/15/2015 3:56 PM Nearly impossible to prevent smoke from seeping through to other units, or from outside. 3/15/2015 3:17 PM I have had cancer and am concerned that I am being exposed to second hand smoke. 3/15/2015 12:24 PM In the case of condominiums & townhomes which are occupied by the owner, this is an inappropriate - actually outrageous abuse of authority over the rights of property owners to do what they want in their own homes. You're actually going to tell me what I can & cannot do in my own home? Oh I've heard the "greater good" argument against all smoking, but I think in the case of condominiums & townhomes it's really about being free from oppression and free from abuse by authorities when you are in your own home. It looks to me like nothing more tha[n] an easy way for you all to grab votes in your next election. You'll be kicking the proverbial dog when he's down. I'm ashamed that something like this could be happening in my town. At the very least, you should "grandfather in" people who own their own homes and are breaking no laws. If you go through with this, I believe it will diminish property values because it will be perfectly obvious to anyone that you will next ban smoking in every home, not just multi-family. You are so full of yourselves! Sorry... 3/15/2015 12:17 PM I have a neighbor who has moved to a bench in the next building (which is a commercial building - 735 Cowper) because he couldn't smoke in our building. Unfortunately it is right next door and so the smoke still comes into our bedroom but he is "off the property." Is he in violation if the 25 foot rule since he is within 10 feet of that property? What can I do the make sure the owners of that business take action? 3/15/2015 8:26 AM Only restrict in shared-use areas (pools, walkways, etc) not inside dwellings. 3/14/2015 10:24 PM You may be interested in speaking to me in that I have extensive experience with this issue. During 1979-1982 I was legislative assistant to State Sen. Alan Sieroty (D-West L.A.) who was very instrumental in getting the statewide law banning smoking in public places passed. During 1982-83 I served as lobbyist for Californians for Non-Smokers' Rights. 3/14/2015 7:39 PM Smoke has such a way of penetrating carpets, drapes and walls 3/14/2015 6:22 PM [Frequently] there are people smoking marijuana & sometimes crack. the neighbors complained about all the marijuana smoke wafting over and about all the teenagers hanging around waiting for the drug dealer. Parents & Grandparents would not let their kids play in the kiddie yard because of the drug use. Yes, the police were called. As long as they all have a marijuana card it is okay. I am sure this is what they are told by the City Mgr and certain politicians. Like that deal no smoking cigarettes in the parks. the idea is to keep more normal [people] out of the parks to allow drug [dealing] which bring in lots of money from the State and Federal Govt because it causes lots of crime, destroys lots of families. The stated reason to ban smoking in multi-unit buildings is discriminatory and the stated reasons do not wash for banning it in this area. but there are some on City Council who certainly don't mind discriminating against one segment of the population for no good reason! 3/14/2015 5:51 PM Smoking indoors is harmful to everyone exposed to it. 3/14/2015 4:52 PM Definitely no smoking outside within 100 feet of any unit. Inside smoking must be done with windows closed; okay to exhaust the smoke with a fan up out the roof. 3/14/2015 4:20 PM This will be an emotive issue for many and it's brave that this is being proposed; especially around an individual's home. However it's necessary and I support the initiative. 3/14/2015 4:08 PM Many smokers in my Oak Creek Apts. do not wish to smoke inside. Hence they smoke on the balconies and terraces causing that smoke to be "inhaled" into other apartments via the heating / AC and windows. It is awful! So we get their smoke inside our units. 3/14/2015 2:32 PM This questionnaire is very poorly worded and the answers would lack statistical significance. Certain of the questions should best be answered with checkboxes. Others are not clear on whether they are asking whether we are currently bothered by smoke, or whether we would be if smoke were present. 3/14/2015 12:50 PM I believe Palo Alto should be a Non-smoking city 3/14/2015 12:34 PM Second hand smoking is not to tolerate. 3/14/2015 12:17 PM I think this is the best idea ever. I don't have issue with it now, but I've had issues in the past in other places that I've lived. Smoking kills, and so does 2nd hand smoking. It just shouldn't be allowed anywhere that it can get into anyone else's person space. 3/14/2015 10:55 AM While I am not an habitual smoker, I do (on very rare occasion) enjoy a cigar or pipe tobacco. I understand the desire to regulate this filthy habit, but the proposed ordinance is an infringement on people's individual rights. The basis of "second-hand smoke" is [shaky] at best, and certainly not enough to stand up to free rights of the people in this Country. While I would never file suit against the City if this ordinance were enacted, I am certain that someone will ... and they will have very solid footing for their case. 3/14/2015 10:00 AM I'm sick of the cigarette butts that litter the property. 3/14/2015 9:36 AM I am support of restricting smoking in multi-unit dwellings. 3/14/2015 8:49 AM Concern for safety when smokers would break the ban and therefore increase danger such as potential for fire 3/14/2015 8:29 AM Recently, our apartment building and the apartment building next door became non smoking. I don't think there are smokers in our building, but there are occasionally visiting smokers walking around the property, in spite of the manager firmly prohibiting any smoking anywhere by anyone on the property. I do like the smoking ban as assurance that I will neve[r] have to tolerate sharing walls with a smoker. But, there has been an unintended consequence. The building next door has several tenants who smoke. Since they can no longer smoke in their apartments, they smoke on the sidewalk in front of both of our buildings. Some walk back and forth along the border between their property and ours. I have talked to their manager about this, to very little avail. My unit is bordered by their property and the sidewalk. So, the smoke from people smoking on the sidewalk in front of our building (and the best tree for smoking in the shade on the street is directly in front of my unit) comes into my unit. It is bad enough that last summer I could not open my windows without the place reeking of smoke. I had to shell out for [a] room air conditioner and the bills to run it. Thus, policies meant to decrease smoke exposure, in my case, have increased it. Before, most of these people would have been smoking inside their own units in the building next door and not getting their smoke in my home! I would love to see non smoking ordinances expanded to not only prohibit smoking in multi unit housing and on the grounds of multi unit housing, but to prohibit it within 25 feet of any multi unit structure, even if that includes the sidewalk and street. 3/14/2015 12:11 AM Currently, none of my neighbors smoke. However, I am concerned that in the future, smoke from adjoining units might exacerbate respiratory conditions. Further, infants and small children are particularly susceptible to the ill effects of cigarette and cigar smoke. 3/13/2015 8:06 PM Instead of wasting our money on smoking survey, I would do the survey why 99% of landlords does not allow cats to live in apartments. This should be the priority, and not smoking. 3/13/2015 7:46 PM Living in a building where outdoor smoking is banned on building property, I can say that being forced to smoke inside the apartment, where it is allowed, to be much more of a health hazard than simply allowing people to smoke outside in the first place. 3/13/2015 6:56 PM Smoking on porches outside rises to apartments above It should be banned on porches as well as inside apartments 3/13/2015 6:24 PM The smoke bothers me that comes from the ARCO next to our building, so this ban would not change the smoke coming into my apartment. 3/13/2015 3:44 PM As a parent with elementary age children, I am deeply concerned about the amount of second hand smoke (and cigarette trash) we are exposed to at our building. The stairwells, elevators and parking garage are smoke traps that my children have to pass through daily to get to and from our home. 3/13/2015 2:59 PM it's horrible especially when people, to keep away from rain or elements, smoke in enclosed outdoor areas where the smoke lingers - please pleas[e] please pass and ENFORCE an ordinance - horrible for my health, as well as my children's & pet's 3/13/2015 2:12 PM i definitely think that smoking should be restricted. It is a health hazard. 3/13/2015 1:45 PM I'm very much in support of restricting smoking in multi-family buildings. It may save lives, and it would certainly improve lives of children and people with asthma and allergies. 3/13/2015 1:37 PM At Loma Verde Village we have 39 units but no smoking restrictions. Smokers come outside their unit to smoke in the common areas and leave cigaret[te] and cigar butts. 3/13/2015 12:13 PM Often people smoke on the sidewalk outside our building and the smoke rises up and surrounds me and my pregnant wife :( 3/13/2015 11:25 AM I don't smoke but I don't support this. I think it is a punitive burden on people who live in multi-unit dwellings. 3/13/2015 10:57 AM I would not support smoking restrictions inside anybody's home, whether it is a house or an apartment. 3/13/2015 9:27 AM Limiting smoking to outside areas only is not an ideal solution. Smoke gets carried inside by people smoking right outside the door. It makes entry and exit a dangerous place for me and my children, when we have to hold our breaths and run past the smokers. Designated smoking areas outside away from entrances and exits is more respectful to other residents. 3/13/2015 8:53 AM No - I strongly support it. Our neighbor upstairs smokes pot and tobacco both on his patio and in his apartment. We often have to close the windows because the smell is so strong. As someone who has never smoked, I do not want to be exposed to his secondhand smoke, which is a known cancer risk. We also live in a complex with a large number of small children and I strongly believe they should not be exposed to this disgusting habit. 3/13/2015 8:30 AM I think people should be able to smoke in and outside of their home (on their property / balcony) 3/13/2015 8:24 AM I had a neighbor in the apartment next to ours who were heavy smokers and I got the second hand smoke into our apartment; also it was heavy in the foyer area next to our apartment. I am allergic to smoke and it cause really both allergic problems and unpleasant smell. I complained several times to the apartment management but they said that because of the city ordinance they cannot ask the tenants not to smoke. This continued for 1.5 yrs .... 3/13/2015 8:12 AM Thank you for considering this policy change--it is VERY MUCH needed. I am an assistant professor at Stanford, and live at Stanford west apartments. I find it absolutely ludicrous and disgusting that smoke from adjacent units is entering my home. This housing complex is full of children, and in 2015 there is just no place for second hand smoke in multi-unit housing. Again, THANK YOU for adopting these changes!! 3/13/2015 7:30 AM I do not support any citywide ban on smoking for multi-family buildings. It should be the choice and policy of each individual building owner. 3/12/2015 11:53 PM Please prohibit smoking in common parking areas! Our bedrooms overlook the parking lot and when residents smoke there, it wafts up into our windows. We cannot leave windows closed at all times, and by the time we smell smoke, it's too late. Very distressing especially to have our infant and preschooler exposed to second hand smoke in our own home. Thank you! 3/12/2015 11:43 PM Smoking is nasty and unhealthy not only for smokers, but also for those around them. Too many smokers are inconsiderate, and most are litterbugs. In and around multi-family buildings, smoking is a nuisance and a fire hazard. 3/12/2015 11:31 PM Please actually enforce these bans if they go into place! I lobbied my landlord to get a ban on our complex and it went into place last year. My upstairs neighbors smoking was irritating my allergies and the ash that was always on my balcony was gross. 3/12/2015 11:23 PM The owner banned smoking last year after discovering that smoke-laden air from one apartment would flow through the bathroom vents to other apartments. 3/12/2015 11:22 PM Please ban smoking in all common areas. We have small children that get exposed to second hand smoke from our neighbors, and it is horrible. 3/12/2015 10:50 PM I am not a smoker, and hate smoking. However, I am not in favor of banning smoking in peoples apartments. Let the landlords decide if they will allow smokers in their units. I also think smoking should be allowed on the balcony of multi-family buildings. I have friends who smoke and allow them to smoke on my balcony when they visit. I am in favor of not allowing smoking in common indoor areas, but I have never had a problem in my unit. I think there is no need to add regulations in this area. 3/12/2015 10:02 PM Presently, smokers in this complex go outside the common areas to smoke.An ordinance might help keep it this way in the future. 3/12/2015 9:23 PM Please pass this ordinance b/c my children and I get sick from the second hand smoke and should not be subject to it. 3/12/2015 9:15 PM 2nd hand smoking is very bad to other people. It should be restricted in all area. 3/12/2015 8:35 PM With the length of time tenants stay in rentals here there should NOT be ordinances restricting smoking in their unit. 3/12/2015 8:15 PM I have neighbors who smoke and the smoke goes into my apt. 3/12/2015 7:50 PM The neighbor below our unit is a chain smoker and is home all day. We cannot go outside onto our deck because of the smoke and in the summer we can't leave our windows open. The smoke carries through the common areas as well. This ordinance is long overdue! 3/12/2015 7:44 PM People deserve having smoking places (let them be designated) regardless whether they can afford single family home or not! 3/12/2015 7:30 PM Smoking is permitted here outside only in a tenant's private patio or on their deck, and has not presented any issues. No smoking is allowed inside any unit. Guest have gatherings here and there. Sometimes a few guests do smoke a cigarette or two out on their patio/decks. Not allowing this option would potentially have tenants move. Our tenant retention rate is around 7-10 years, at a minimum. Smoking is not allowed in any common areas, nor around the pool, again only in their private patios (yards) or decks. 3/12/2015 6:10 PM Yes, it's very troubling that smoking is currently allowed in our building as we have young children who are exposed to the smoke. People commonly smoke on their balconies which comes in through our open windows, and there is also some shared internal ventilation in the building which brings in smoke. 3/12/2015 5:42 PM The opposed ban obviously overlooks the increasing widespread use of marijuana that, for example, my husband and I reported multiple times to our landlord but went unheard because of "fear of discrimination" towards smokers. Marijuana smell and fumes go through shared ventilation systems in the same way tobacco does. Unfortunately, given the current socio-political climate, not only is marijuana's use tolerated at recreational level, but also encouraged by an obvious lack/disregard of regulations, even though marijuana produces second-hand smoke just like tobacco does, and research is still debating over the safety of marijuana exposure on growing brains such as children's. As the daughter of smoking parents, and mother of two young children, I consider this gap in the legislation an example of blatant discrimination towards those who do not want to have [to] breath[e] in smoke from others, regardless of the substance(s) used to inhale. 3/12/2015 5:28 PM I think it's a great idea to restrict smoking. We are fortunate that very few people in our complex smoke. For new renters with health issues such as asthma, it would give peace of mind to know that the previous tenants didn't smoke in the apartment. 3/12/2015 4:55 PM Second hand smoke is hazardous and should be banned from multi unit dwellings including condos. 3/12/2015 4:42 PM It's a health issue. We have owners who choose to smoke outside and we have a place for them. 3/12/2015 4:27 PM I urge the city to ban smoking in multi-family units, to protect the health and quality of life of nonsmokers. In my family's case, we are unable to open many windows, because if we do, smoke pours in from a downstairs unit where the resident smokes. We live in a unit with no air conditioning and big windows, so the unit gets quite hot. It is a real hardship when we can't open windows, even though the inside temperature in our apartment is 85, 90, or 95 degrees. 3/12/2015 4:06 PM People in building next to us smoke and all the smoke comes in our unit, so even tho[ugh] we aren't smoking we get the second hand smoke which is very nasty. 3/12/2015 3:27 PM How on Earth can it be enforced. Neighbor against neighbor, how will police determine if someone is smoking in their own apartment? What about Medical Marijuana, will it be allowed since it's medical? Lawsuits will happen. 3/12/2015 3:16 PM I would be highly in favor of a ban on smoking in all multi-family residences, without any "grand- fathering" clauses. 3/12/2015 2:40 PM The person on the phone said that there is smoking available in the common areas but has never witnessed anyone using it. 3/12/2015 2:02 PM none 3/12/2015 1:56 PM The person on the phone said that it is a great idea to restrict smoking and the time has come. 3/12/2015 1:55 PM The person on the phone said that people are smoking on both sides of her for 20 years. She has to close her windows as a result. She has bronchitis and is in poor health. She thinks that people should at least smoke inside or stop smoking if requested. She said that people in apartments need to find places where no one can be hurt by their smoking. 3/12/2015 1:53 PM The person on the phone said that even though smoking is prohibited, people smoke in the common areas. 3/12/2015 1:35 PM The person on the phone said that she lives at Oak Creek Apts. 3/12/2015 1:32 PM The person on the phone said that there are two heavy smokers who live next to her and it bothers her a lot. She lives in low-income housing and there is nowhere else for her to go to get away from the smoke. The person smokes 24 hours a day. She previously had a neighbor who had to move out because there was smoke everywhere. She is in poor health and is not able to talk and breathe normally because of the smoke. She also would like to say on behalf of her 5 friends who are 80-90 years old, there is no place for them to breathe anymore away from the smoke. She would like the City of Palo Alto to send a letter to her apartment building at Palo Alto Gardens on 650 Antonio Road to tell them to stop allowing smoking. 3/12/2015 1:30 PM The proposed ban will disproportionately affect working-class people who tend to live in multi-unit apartments, as opposed to people who can afford houses in the overpriced housing market of Palo Alto. Furthermore, there is a huge difference between direct inhalation of second-hand smoke and simply being able to smell smoke from an adjacent unit--while it may be unpleasant, smelling smoke causes no serious health effects. The proposed ban would encroach upon rights that Americans should have in the privacy of their own homes, whether those homes are simple apartment units or individual houses. Finally, a person who thinks that it is ok to litter cigarette butts, rather than place them in dedicated receptacles, is probably the same person who will leave behind gum wrappers, beer bottles, and other trash, so the environmental argument for this ban is just as weak as the health argument--if you want to address littering, then enforce littering laws, not smoking bans. 3/12/2015 1:26 PM The person on the phone thinks that there should be no restrictive laws on smoking or else he has to move. 3/12/2015 1:20 PM The person on the phone said that condos should have their own set of bylaws for smoking to follow. She thinks that the condos should decide for themselves what kind of smoking restrictions they should have. 3/12/2015 1:19 PM Not sure why Palo Alto is spending time on this. Would like to see better traffic enforcement, fix the roads and enact an office cap, for starters. 3/12/2015 12:00 PM the smoke easily wafts into the windows and sliding glass doors, making the children and I cough. 3/12/2015 10:42 AM 2nd hand smoke is such a health hazard. It would be great to ban smoking in multi-unit buildings as it affects everyone in the nearby vicinity of the smoker. 3/12/2015 10:09 AM Smoking is a serious public health concern. Quality of life at home and one's quiet enjoyment of property in a multi-family building is significantly negatively impacted where smoking is permitted. A ban on smoking in multi-family buildings would encourage a healthy lifestyle and community as well as allow citizens to enjoy their time at home without exposure to offensive and toxic smells. 3/12/2015 10:08 AM Unfortunately it is impossible to restrict the movement of smoke from one area to another in multi- unit dwellings--and the tendency of fellow building residents to smoke on their balconies means that I must close my windows and balcony door to avoid smelling smoke in my own unit 3/12/2015 10:05 AM Please ban all smoking from all multi-family buildings including those owned and operated by Stanford University. I live in Stanford West and while many smokers are considerate and take to the path furthest from buildings to smoke, others smoke in courtyards or inside houses and the smoke permeates our unit. We're forced to lock down our doors and windows to prevent smoke from entering our unit which is particularly frustrating during the warm summer months. We have a small child and are expecting another. The facts are clear on secondhand smoke. Secondhand Smoke Causes, cardiovascular disease, lung cancer, SIDS and harms children (Source: CDC, available online: http://www.cdc.gov/tobacco/data_statistics/fact_sheets/secondhand_smoke/health_effects/). Stanford University has failed to move forward on a smoke-free campus despite colleges across the US going smoke free and leaving Stanford behind in health promoting policies and endangering its staff, faculty and families. 3/12/2015 9:50 AM Please let people smoke cigarettes and e-cigarettes. I do not want to inconvenience my neighbors who smoke regularly, but I would encourage them to cut down. It is, however, his or her life and his or her decision. I am a social/occasional smoker and it is an enjoyable part of my life. I like to smoke at parties and with friends, or out for a walk by myself. I estimate that I smoke less than 15 cigarettes per year, and I enjoy them. Those who are addicted smokers should be encouraged to cut back and given support to do so, not banned from smoking entirely. Discussions of prohibition on smoking tend to categorize people as addicted smokers or non-smokers. The media does not talk about drinkers as alcoholics or teetotalers and accepts that social drinking exists. It is a myth that people cannot be social smokers. I have been a social smoker for over a decade, as have most of my friends. Why is the conversation about banning cigarettes entirely, instead of talking about smoking in moderation? Prohibition of alcohol did not work in the last century. Prohibition of smoking will not work in this one. Many people find smoking [pleasurable]. Many people find drinking [pleasurable]. We are adults. Cigarettes should be sold in smaller packs to support social smoking - it is irritating to buy a pack of 20 when I only want 1 or 2, and so I have switched to e-cigarettes. If everyone smoked in moderation, those who are bothered by second-hand smoke would have much less exposure. I do not support a ban on smoking in multi-unit housing. 3/12/2015 9:46 AM Will be difficult to enforce particularly with all the international foreign resident population we have here at Stanford West 3/12/2015 9:34 AM question 7 doesn't ask if we don't want any restriction as a choice. i do not want the government to restrict my freedoms. 3/12/2015 9:20 AM Banning smoking in multi-unit housing moves the smoking out to the street - which worsens the problem of cigarette butt litter. An effective policy should address this issue. 3/12/2015 9:19 AM none 3/12/2015 9:08 AM As a property owner of a condominium unit, it should be my decision whether to smoke or not smoke inside my home. Let me emphasize the word "home". Owner-occupied homes, including condominiums, deserve the right to make that decision for themselves. 3/12/2015 9:04 AM I fully support this initiative but question how it would be enforced. Many landlords in Palo Alto do little to enforce their own regulations, let alone a city initiative like this one. 3/12/2015 9:03 AM If an owner wishes to restrict smoking inside a unit, that is fine and their prerogative. Do NOT believe it is the city's role to determine smoking in a residence. 3/12/2015 8:58 AM Really hope this passes! 3/12/2015 8:54 AM I shouldn't have be subjected to unhealthy second-hand smoke due to living in an apartment building. 3/12/2015 8:42 AM I think it should be restricted. People in my building smoke on their own balcony or outside, and it blows in through my windows when they're open. 3/12/2015 8:03 AM second hand smoke has put me into the hospital on more than one occasion. 3/12/2015 7:34 AM I currently take both QVAR and Albuterol twice a day for breathing problems and would welcome a smoking ban on the property I live in and surrounding multi-family complexes. Also, please ban smoking on the sidewalks and roadways because, for some bizarre reason, people smoke right outside my unit thinking it's OK because they're outside. Please ban tobacco, vaping, and marijana. My neighbors in an adjacent building smoke pot in their patio about once a week or so, and that's the worst for those with breathing problems. 3/12/2015 6:22 AM I haven't been able to open the doors and windows on my deck because the person below me constantly smokes, The person does not work and is always at home. Neighbors have tried to explain how their smoking is bothering them but this person indicates the[re] is no law to prevent them from doing it. PLease pass the ordinance and do not make exceptions to it. Thank you for listening. 3/12/2015 6:07 AM I really hope this is a joke. This proposal falls way outside the city's role in protecting it's citizens' health and well-being. Even if this were enacted, it would be absolutely meaningless because it is hopelessly unenforceable and will never deter a regular smoker in the slightest. This is by far the most absurd thing I have ever heard the city propose. 3/12/2015 2:59 AM Smoke from neighboring apartment units permeates into adjacent units, even when the windows are closed. It is a respiratory irritant. 3/12/2015 12:53 AM Please do this! 3/11/2015 11:55 PM What about pot-smoking and vaporizers? I think these should be addressed also. 3/11/2015 11:17 PM Smoke from smoking on unit balconies and courtyards blows into open windows, which is bad for my health (and our neighbors' asthmatic kids), and there's currently nothing we can do about it but close our windows and use air conditioning or fans 3/11/2015 10:57 PM I believe that, when care is taken to ensure others are not disturbed, outdoor smoking does not constitute such a significant nuisance that it should be banned. 3/11/2015 10:52 PM questions #3 and #6 I did NOT know the answer to but i was forced to answer so i made up an answer. You did not provide a DO NOT KNOW choice. I do not know what the rules of my complex are as it never pertained to me. 3/11/2015 10:48 PM Let's do it. I am really bothered by the 2nd hand smoke from units and common areas. I often see the unsightly cigarette butts littering the grounds here at Palo Alto Greenhouse. 3/11/2015 10:17 PM The multi-unit housing I live in says they do not allow smoking, but it isn't enforced. Neighbors of mine smoke on their balconies and make it very uncomfortable for me to be on my own balcony, as the smell of smoke really bothers me. A city-wide ban on smoking may help my landlord enforce these rules more effectively. 3/11/2015 9:55 PM I would hate to see the cigarettes end up in the streets/gutters because people have to go out to public areas to smoke, but even a hint of cigarette smoke nearby/wafting into my windows makes me incredibly sick - so I would welcome getting rid of it altogether if that was possible... 3/11/2015 9:30 PM While I'm not a smoker nor is anyone in my unit, I think that it's within one's right to smoke within their private domicile. The suggested smoking ban is quite different from smoking bans in a public areas, where there is free circulation of smoke-laden air between the smoker and other members of the public. This free circulation of air does not exist in a multi-unit building, provided the door of the smoker's unit is not propped open for extended periods of time while smoking. 3/11/2015 9:12 PM The proposal is an outrageous violation of property rights. 3/11/2015 9:04 PM Smoking has a very definitive and severe impact on my quality of life. During warm weather we've had several days where we can't even open our windows because of smoking outside the unit. In addition, we have an 18 month old and I find it absolutely disgusting that she needs to be exposed to smoke when playing outside. In addition, the butts left on the ground are unsightly and I shouldn't need to see these in the vicinity of where I live. 3/11/2015 9:00 PM I smoke on my balcony. I had to get an approval to smoke on my balcony from my neighbors and apartment manager. I think that the choice to allow smoking should remain on the apartment management and not the city. 3/11/2015 8:42 PM Cigarette smoke from other units, even when others smoke outside on their decks, wafts into our unit. 3/11/2015 8:41 PM I don't want to get second hand smoke, but my biggest concern is that some people walk while smoking, and it's very dangerous not only for other people but also for children because their cigarette is at the height of the childrens' faces. 3/11/2015 8:15 PM Tobacco smoke has never been a problem where I live. Other smoke on the other hand... 3/11/2015 8:12 PM Include all forms of smoking - not just tobacco - as marijuana legalization appears to be a matter of time (e.g. many DA's don't enforce portions of statutes now) 3/11/2015 8:11 PM Even though I rent, I do not support a smoking ban on owner-occupied condo units, especially allowing grandfathering in. I think that smacks of elitism, excessive personal restriction on those not wealthy enough to purchase a single-family dwelling here, *and* it will reduce marketability. 3/11/2015 7:48 PM As long as it does not bother other neighbors, smoking should NOT be banned in multi-family buildings, apartments, etc. 3/11/2015 7:42 PM My five-year-old is exposed to second-hand smoke from the downstairs neighbors. When considering homeowners' rights, don't forget about my right to be smoke-free. 3/11/2015 7:18 PM It needs to be banned in all residential areas and in parks that are right across the street. The litter is awful and the noxious fumes are intolerable 3/11/2015 7:13 PM I am an owner and the Board president in a small, one story condominium in Palo Alto. I live in my unit. There has never been any concern expressed whatsoever in our association during my roughly 10 years on the board about smoking inside the units. This kind of regulation seems vastly overreaching to me. 3/11/2015 7:12 PM I believe that people should have rights to smoke or not smoke in their property. You are going to legalize a marijuana, and at the same time trying to expand the city's Smoking ban. Please let people to decide to smoke or not to smoke in their properties. 3/11/2015 7:11 PM It is unreasonable to create a situation where smokers would not be able to smoke in their own home. Please not pass this ordinance! 3/11/2015 6:55 PM Vendors including construction, gardeners, and other service people smoke but are not banned - should be. 3/11/2015 6:53 PM We lived for 4 years above an elderly woman who smoked we had a newborn and she would smoke with window open we worried she would fall asleep with cigarettes lit there was nothing we could do about her smoking 3/11/2015 6:39 PM Second-hand smoke is a carcinogen that caused my brother's lung cancer. Non-smokers shouldn't have to pay the consequences for smokers' poor choices. 3/11/2015 6:35 PM At Oak Creek, smokers can leave their apt. doors open to air out their smoke into our common hallways. yuck. 3/11/2015 6:04 PM No. If people want to smoke it's their right and whether its allowed in the unit itself should be worked out with the owner of the unit. 3/11/2015 5:59 PM Please ban smoking inside multi-family buildings and outside of them to a distance of 25 ft. or more. Although our landlord forbids smoking within our building, tenants who smoke simply go just outside the building to smoke. The smoke still comes through our open windows and bothers us, but right now we can't do anything about it because the smokers are technically not within the building or its grounds when they smoke. It would help if Palo Alto would ban smoking both within multi-family buildings and also within a large radius around them. It would also help if Palo Alto would enforce the ban on smoking within 25 ft. of a restaurant - we've had meals ruined by people smoking less than 25 ft. from restaurant doors and/or patios. 3/11/2015 5:53 PM I generally support smoking bans in all public places, including apartment buildings. 3/11/2015 5:52 PM The residents of a multiunit housing have a right to decide their own policy. The City should not impose rule restricting residents rights in their own homes. 3/11/2015 5:30 PM I am worried about our health and the health of little ones. 3/11/2015 5:16 PM i live in a mixed age property that is old, run-down, and has bad ventilation, plumbing, and yet they allow smoking. They even took away all our rights as Palo Alto residents and aggregated all utility bills; charging a $3 admin fee to administrate based on a RUBS system because this old property and profit seeking management (not Gerson Bakar but his managers) can pass costs onto residents. RUBS of course is based on sq ft allocation irrespective of # of persons (1, 2, 3) in a unit or age of residents (e.g.: young families with young children & babies). This property on Sand Hill should be REQUIRED to upgrade their system to a unit by unit actual meter allocation. People dare not complain - they are shut down. No one listens. 3/11/2015 5:10 PM My concern is that restricting smoking would not be enforced. 3/11/2015 5:09 PM I have two small children and hate when people smoke outside our windows because their smoke comes into our apartment and infringes upon our family's right to breathe clean air. 3/11/2015 4:51 PM Smoking travels through atriums/lightwells in our condo and forces me, as a nonsmoker, to keep our windows shut so my daughter doesn't breathe the second hand smoke. So YES, I think it should be banned. 3/11/2015 4:48 PM Please do it. 3/11/2015 4:20 PM We are a condo property. All of our units are individually owned but there is an Association board that can make rules 3/11/2015 4:12 PM My low-income privately owned apartment complex allows smoking in units and on patios and balconies. Neighbors nextdoor and below me smoke at all hours of the day and night, making it impossible for me to open my windows. Even with my windows closed, some people smoke leaving their doors open and smoke fills the hallways. Even with all of the windows closed it also spreads throughout the building through the ventilation system. I have spoken with my neighbors and the apartment manager. I would suggest that they create a designated smoking area in the parking lot a fair distance from any doors or windows, or at the very least limit smoking on balconies and patios that are adjacent to other units. Most of the residents in my building are low income senior citizens, many with health issues like myself. 3/11/2015 3:52 PM The person on the phone said that "in bars, schools, etc you cannot smoke, but the one place where you can't stay away from which is your home you cannot get away from the smoke". As he's gotten older, smoke really bothers him and it is very bad for his health. 3/11/2015 3:37 PM I have lived in a unit where my downstairs neighbor smoked and the smoke was perceptible in our unit as well, and unpleasant. 3/11/2015 3:24 PM Currently smoking is restricted on the property but some tenants do not respect. I had to leave one night to get away from smoke. Also smokers from adjacent properties are smoking on sidewalks adjacent to building, can't walk down the street without getting triggered and needing to use rescue inhaler. 3/11/2015 3:21 PM Unfortunately smoke travels and invades even at distances. There's no sure protection from it except to forbid it. 3/11/2015 3:01 PM Like the plastic bag ban, this is a welcome ordinance - make good choices for our future! 3/11/2015 2:09 PM People in adjacent condos throw their butts over the fence into our garden, and their smoke wafts into ours - disgusting!! We feel invaded. 3/11/2015 12:56 PM At our condo we allow smoking within units but not in any common area. As a Board Member, I fail to see how we can enforce a smoking ban inside units. What support would there be from the City? Already, there are a few smokers you congregate on the public sidewalk in front of our unit and the City has been unwilling to enforce it's smoking ban there. 3/11/2015 12:19 PM I'm actually preparing to move out of Palo Alto because the smoking in my complex is so bad. Unfortunately, my apartment's management has been less than sympathetic to my complaints, and I doubt this ordinance will be passed in a manner to help me, but it will help whoever moves in after me. The people who smoke live below me, and so all of the smoke is in the walls and floors of the apartment and I hate it. I'm considering moving to Mountain View, because they just implemented a smoking ban similar to this proposed one. 3/11/2015 11:05 AM Restricting smoking in multi-family buildings is a good next step for Palo Alto 3/9/2015 12:36 PM County of Santa Clara Public Health Department Public Health Administration 976 Lenzen Avenue, 2nd Floor San José, CA 95126 408.792.5040 April 15, 2014 Dear Mayor and City Manager, The Santa Clara County Public Health Department is committed to creating a healthier community for all residents where they live, work, learn, and play. Santa Clara County has been a leader in protecting the health of its residents – children and youth in particular – from the devastating consequences caused by tobacco use. We recognize that Santa Clara County cities are essential and committed partners in achieving this shared mission and goal for all of our county residents and workforce. Unfortunately, the rapidly increasing use of electronic smoking devices (commonly referred to as electronic cigarettes, electronic cigars, electronic cigarillos, electronic pipes, electronic hookahs, electronic vapes, or vaporizers), threatens to undo much of the social norm change around tobacco use which has largely resulted from health and tobacco prevention policies like the ones implemented by the County and cities throughout Santa Clara County. Public health advancements could be undermined by the unrestricted use of e-cigarettes, which produce a smoke-like aerosol in public, and widespread, unrestricted advertising of such products in ways that have been restricted for cigarettes and other tobacco products for decades. The use of these products presents health hazards to the users and potentially to bystanders as well. These products are being sold and used in this County but are currently unregulated by the federal government. Despite the lack of regulation at the federal level, many communities across the United States and California, including most recently the County of Santa Clara, Morgan Hill, Sunnyvale, and Milpitas, have moved forward with regulating the use and sale of e-cigarettes in their jurisdictions. On March 25, 2014 the Santa Clara County Board of Supervisors amended the County’s No Smoking Policy, prohibiting the use of electronic smoking devices within any enclosed structure owned or leased by the County, with plans to discuss expanded regulation on the use and sale of e-cigarettes for the unincorporated areas in May. In the absence of regulation by the Food and Drug Administration, these products are widely available for purchase in this County. Children and adolescents are particularly vulnerable to the renormalization of smoking through the use of e-cigarettes. Youth are now witnessing smoking behaviors in public spaces that have been smoke-free for most, if not all, of their lives. Youth are also being exposed to e-cigarette advertising on television, something that has been prohibited for decades for traditional tobacco products. The result of all this is that youth are rapidly taking up e-cigarettes. A CDC study showed that in 2011, 4.7% of all high school students had tried e-cigarettes and that in 2012, that number increased to 10.0% of all high school students. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith Attachment B Given the current lack of regulation and preliminary data demonstrating potential health hazards, the Public Health Department recommends a precautionary approach in regulating the use of e-cigarettes, until their safety is conclusively established. The Public Health Department is here to assist cities in this effort to better understand the issue of electronic cigarettes and to provide data and evidence regarding the rationale for regulation of these products in your community. Additionally, our County Counsel’s office is available to speak directly with counsel for cities that have any questions or concerns regarding the legal authority for regulation. We encourage you to take action on this important public health issue, and reach out to our staff who are available to assist you in your efforts. If you would like further information or assistance related to the regulation of electronic smoking devices, please contact Nicole Coxe at the Public Health Department at (408) 793-2745 or nicole.coxe@phd.sccgov.org. Sincerely, Daniel Peddycord, RN, MPA/HA Sara H. Cody, MD Public Health Director Health Officer CC: City Council County of Santa Clara Public Health Department Administration 976 Lenzen Avenue, 2nd Floor San José, CA 95126 408.792.5040 Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith The Public Health Department submits the following findings of fact for the Board’s consideration and adoption in support of regulation of the use and sale of electronic smoking devices. Ordinance No. NS-625.7 (General Restrictions on the Use of Tobacco Products and Electronic Smoking Devices) and Ordinance No. NS-625.8 (Restrictions on the Use of Tobacco Products and Electronic Smoking Devices in Multi-Unit Residences) 1. Electronic smoking devices—commonly known as “electronic cigarettes,” “e-cigarettes,” “e-cigars,” “e-cigarillos,” “e-pipes,” “e-hookahs,” or “electronic nicotine delivery systems”—are electronic and/or battery-operated devices designed to deliver nicotine, flavor, and/or other substances in an aerosol or vapor form inhaled by the user.i 2. Electronic smoking devices are often designed to look like and be used in the same manner as conventional cigarettes.ii 3. Electronic smoking devices often mimic conventional tobacco products in shape, size, and color, with the user exhaling a smoke-like vapor similar in appearance to the exhaled smoke from cigarettes and other conventional tobacco products.iii 4. Between 2010 and 2011, adult awareness of electronic smoking devices increased significantly, and the percentage of adults in the United States who had ever used an electronic cigarette approximately doubled.iv 5. Use of electronic smoking devices by youth has increased significantly in recent years, as evidenced by findings from the 2011 and 2012 National Youth Tobacco Surveyv:  Between 2011 and 2012, the percentage of all students in grades 6 to 12 who had ever tried an electronic smoking device doubled from 3.3% to 6.8%. 9.3 percent of these students reported in 2012 that they had never smoked conventional cigarettes.  Between 2011 and 2012, the percentage of all high school students who had ever tried an electronic smoking device more than doubled from 4.7% to 10.0%.  7.2 percent of these students reported in 2012 that they had never smoked conventional cigarettes. 6. The Surgeon General has found that the chemical nicotine is a powerful pharmacologic agent that acts in the brain and throughout the body, is highly addictive, and can cause acute toxicity. Nicotine adversely affects both maternal and fetal health during pregnancy and contributes to adverse outcomes such as preterm delivery and stillbirth; exposure in during fetal development has lasting adverse consequences for brain development. In addition, “the evidence is suggestive that nicotine exposure during adolescence, a critical window for brain development, may have lasting adverse consequences for brain development.”vi 7. The immediate adverse physiologic effects from short-term use of electronic cigarettes are similar to some of the effects seen with tobacco smoke.vii 8. Nicotine is particularly hazardous to children, young people, pregnant women, nursing mothers, people with heart conditions and the elderly.viii 9. Use of electronic smoking devices, including the refillable nicotine cartridges, can pose a risk for nicotine poisoning (e.g., if a child of 30 kilograms of weight swallows the contents of a nicotine cartridge of 24 milligrams, this could cause acute nicotine poisoning that most likely would result in death).ix 10. A CDC study found the number of calls to poison centers involving e-cigarettes or the nicotine liquids used in e-cigarettes rose from one per month in September 2010 to 215 per month in February 2014.x The study also found:  More than half (51.1 percent) of the calls to poison centers due to electronic smoking devices involved young children 5 years and under, and about 42 percent of the calls involved people age 20 and older.  The number of calls per month involving conventional cigarettes did not show a similar increase during the same time period. 11. Poisoning from conventional cigarettes is generally due to young children eating them. Poisoning related to electronic smoking devices involves the liquid containing nicotine used in the devices and can occur in three ways: by ingestion, inhalation or absorption through the skin or eyes.xi 12. Because there is little control or regulation of electronic smoking devices products, the amount of nicotine inhaled with each “puff” may vary substantially, and testing of sample cartridges found that some labeled as nicotine-free in fact had low levels of nicotine.xii 13. A study published in the European Respiratory Journal found that electronic smoking device users get as much nicotine from electronic smoking devices as smokers usually get from tobacco cigarettes.xiii 14. Electronic smoking devices have been marketed as smoking cessation devices and as safer alternatives to traditional tobacco productsxiv, but studies on electronic smoking devices’ emissions and cartridge contents have found a number of dangerous substances including:  Chemicals known to the State of California to cause cancer such as formaldehyde, acetaldehyde, lead, nickel, and chromium;xv,xvi,xvii  Fine particulate matter (PM2.5), acrolein, tin, toluene, and aluminumxviii, xix,xx—which are associated with a range of negative health effects such as skin, eye, and respiratory irritationxxi; neurological effects, developmental and reproductive effectsxxii; and even premature death from heart attacks and stroke.xxiii 15. Studies have shown that there are high levels of dual use among users of electronic smoking devices and conventional cigarettes.xxiv,xxv,xxvi, xxvii 16. Neither federal nor state law requires that electronic smoking devices carry health warnings comparable to conventional cigarettes nor FDA-approved nicotine replacement products.xxviii 17. Studies on electronic smoking devices have also found inconsistent labeling of nicotine levels in electronic smoking device products.xxix,xxx 18. Over 400 brands of electronic smoking devices exist on the marketxxxi, but clinical studies about the safety and efficacy of these products have not been submitted to the FDA. For this reason, consumers currently have no way of knowingxxxii:  Whether electronic smoking devices are safe for their intended use;  What types or concentrations of potentially harmful chemicals the products contain; and  What dose of nicotine the products deliver. 19. The World Health Organization has strongly advised consumers against the use of electronic smoking devices until they are “deemed safe and effective and of acceptable quality by a competent national regulatory body.”xxxiii 20. The World Medical Association has determined that electronic smoking devices “are not comparable to scientifically-proven methods of smoking cessation” and that “neither their value as therapeutic aids for smoking cessation nor their safety as cigarette replacements is established.”xxxiv 21. Exposure to fine and ultrafine particles may exacerbate respiratory ailments like asthma, and constrict arteries which could trigger a heart attack.xxxv 22. Chemicals identified in electronic smoking device aerosol also appear on California’s Proposition 65 list of carcinogens and reproductive toxins, also known as the Safe Drinking Water and Toxic Enforcement Act of 1986. The compounds that have already been identified in electronic smoking device aerosol include: Acetaldehyde, Cadmium, Formaldehyde, Lead, Nickel, Nicotine, N-Nitrosonornicotine, and Toluene.xxxvi 23. Electronic smoking devices contain and emit propylene glycol, a chemical that is used as a base in electronic smoking device solution and is one of the primary components in the aerosol emitted by electronic smoking devices.xxxvii 24. Even though propylene glycol is FDA approved for use in some products, the inhalation of vaporized nicotine in propylene glycol is not. Some studies show that heating propylene glycol changes its chemical composition, producing small amounts of propylene oxide, a known carcinogen.xxxviii 25. One study found metals in electronic smoking device aerosol, including chromium, nickel, and tin nanoparticles.xxxix 26. FDA scientists found detectable levels of carcinogenic tobacco-specific nitrosamines in electronic smoking device aerosol.xl 27. People exposed to electronic smoking device aerosol absorb nicotine (measured as cotinine), with one study showing levels comparable to passive smokers.xli 28. In the case of e-cigarettes, the solvent of the liquids may remain on available surfaces and be a source for contamination for non-users of e-cigarettes. The accidental spilling of e-cigarette liquids can also lead to unintended uptake of nicotine by skin permeation – an effect that is intentionally used for nicotine patches.xlii 29. More than one study has concluded that use of electronic smoking devices may result in secondhand exposure to emissions.xliii,xliv,xlv Therefore, the adverse health effects of secondhand exposure to aerosol from electronic smoking devices cannot be excluded as a possibility. 30. The State of California’s Tobacco Education and Research Oversight Committee (TEROC) “opposes the use of electronic smoking devices in all areas where other tobacco products are banned.”xlvi 31. An April 2014 Congressional Report investigating the marketing practices of nine of the largest electronic cigarette manufacturers, found the followingxlvii:  All nine of the companies used various marketing practices to appeal to youth;  Six electronic smoking device companies market electronic smoking devices in flavors that could appeal to children and teens, with flavors like Cherry Crush, Chocolate Treat, Peachy Keen, and Grape Mint;  These practices, many of which were self-reported by the companies, include sponsoring youth-oriented events such as music festivals, and handing out free product samples at as many as 348 events between 2012-2013. 32. One study examining the marketing claims featured on 59 single brand electronic smoking device retail websites that were online in 2012 found the followingxlviii:  95% of websites made health benefit claims such as statements about the absence of “tar” or “carcinogens” in the products;  22% of websites featured pictorial and video representations of doctors;  88% of websites made statements that electronic smoking devices can be smoked anywhere; and  71% of websites made statements that they can be used to circumvent smoke-free laws. 33. A study published in the Journal of Environmental and Public Health suggests that electronic smoking devices and other emerging tobacco products “may have the capacity to ‘re- normalize’ tobacco use in a demographic that has had significant denormalization of tobacco use previously.”xlix 34. The use of electronic smoking devices in smokefree locations threatens to undermine compliance with smoking regulations and reverse the progress that has been made in establishing a social norm that smoking is not permitted in public places and places of employment.l 35. Dozens of local jurisdictions within California regulate the use of electronic smoking devices in specific locations.li 36. The U.S. Food and Drug Administration has proposed regulations on electronic cigarettes based on an extensive set of findings, hereby incorporated by reference, including but not limited to findings about the addictive nature of nicotine, the impact of nicotine on youth and young adults, the potential health risks of e-cigarettes, and consumer confusion and misinformation about e-cigarettes.lii Ordinance No. NS-300.874 (Permits for Retailers of Tobacco Products and/or Electronic Smoking Devices) 1. The failure of retailers to comply with laws concerning tobacco products and electronic smoking devices, particularly the sale of such products to minors, threatens the health, safety and welfare of the residents of the County. 2. A local permitting system for retailers of tobacco products and/or electronic smoking devices is appropriate to ensure that retailers comply with all applicable laws and business standards of the County and to protect the health, safety and welfare of the residents of the County. 3. The California Legislature has recognized the danger of electronic smoking devices by prohibiting the sale or furnishing of electronic cigarettes to minors (Health and Safety Code Section 119405). However, this law does not prohibit self-service displays of electronic smoking devices in stores, which is the law for traditional tobacco products. 4. A requirement for face-to-face transactions (i.e., no vending machines sales or self-service displays) are a proven strategy for reducing minors’ access to tobacco products, as they require assistance from the store merchant, and prevent shoplifting of tobacco products.liii,liv 5. The California Tobacco Control Program’s “Healthy Stores for a Healthy Community” tobacco retailer observation survey, conducted in 2013 throughout California, including Santa Clara County, found the following:  The number of tobacco retailers selling electronic smoking devices in California has quadrupled in just two years (11% in 2011 to more than 45% in 2013, which is almost 16,500 stores);lv  As of July 2013, 47% of tobacco retailers in the County are also selling electronic smoking devices (approximately 677 stores across the county), and that number is predicted to be even higher now given the growing market for these products; lvi and  Nearly 20% of tobacco retailers selling electronic smoking devices in the County had electronic smoking devices on display in locations where youth are likely to be exposed to the products, such as near candy, ice cream, and slushie machines.lvii 6. Use of electronic smoking devices by minors has increased significantly in recent years, as evidenced by findings from the 2011 and 2012 National Youth Tobacco Surveylviii:  Between 2011 and 2012, the percentage of all students in grades 6 to 12 who had ever tried an electronic smoking device doubled from 3.3% to 6.8%. 9.3 percent of these students reported in 2012 that they had never smoked conventional cigarettes.  Between 2011 and 2012, the percentage of all high school students who had ever tried an electronic smoking device more than doubled from 4.7% to 10.0%.  7.2 percent of these students reported in 2012 that they had never smoked conventional cigarettes. 7. Both the U.S. Food and Drug Administration and the World Medical Association have expressed concern that electronic cigarettes can increase nicotine addiction among young people and lead young people to try other tobacco products, including conventional cigarettes.lix,lx 8. The U.S. Food and Drug Administration has proposed regulations on electronic cigarettes based on an extensive set of findings, hereby incorporated by reference, including but not limited to findings about the addictive nature of nicotine; the impact of nicotine on youth and young adults; the potential health risks of e-cigarettes; consumer confusion and misinformation about e-cigarettes; and the need for vending machine restrictions, health warnings and other regulations.lxi 9. The Surgeon General has found that the chemical nicotine is a powerful pharmacologic agent that acts in the brain and throughout the body, is highly addictive, and can cause acute toxicity. Nicotine adversely affects both maternal and fetal health during pregnancy and contributes to adverse outcomes such as preterm delivery and stillbirth; exposure in during fetal development has lasting adverse consequences for brain development. In addition, “the evidence is suggestive that nicotine exposure during adolescence, a critical window for brain development, may have lasting adverse consequences for brain development.”lxii 10. The immediate adverse physiologic effects from short-term use of electronic cigarettes are similar to some of the effects seen with tobacco smoke.lxiii 11. Nicotine is particularly hazardous to children, young people, pregnant women, nursing mothers, people with heart conditions and the elderly.lxiv 12. Use of electronic smoking devices, including the refillable nicotine cartridges, can pose a risk for nicotine poisoning (i.e. if a child of 30 Kilos of weight swallows the contents of a nicotine cartridge of 24 mg this could cause acute nicotine poisoning that most likely would cause death).lxv 13. A CDC study found the number of calls to poison centers involving e-cigarettes or the nicotine liquids used in e-cigarettes rose from one per month in September 2010 to 215 per month in February 2014.lxvi The study also found:  More than half (51.1 percent) of the calls to poison centers due to electronic smoking devices involved young children 5 years and under, and about 42 percent of the poison calls involved people age 20 and older.  The number of calls per month involving conventional cigarettes did not show a similar increase during the same time period. 14. Poisoning from conventional cigarettes is generally due to young children eating them. Poisoning related to electronic smoking devices involves the liquid containing nicotine used in the devices and can occur in three ways: by ingestion, inhalation or absorption through the skin or eyes.lxvii 15. State law explicitly permits cities and counties to enact local ordinances regulating the distribution of electronic cigarettes in a manner that is more restrictive than state law, to the extent not otherwise prohibited by federal law. (Health and Saf. Code, § 119405, subd. (d).) 16. An April 2014 Congressional Report investigating the marketing practices of nine of the largest electronic cigarette manufacturers, found the followinglxviii: a. All nine of the companies were using various marketing practices to appeal to youth; b. Six electronic smoking device companies market electronic smoking devices in flavors that could appeal to children and teens, with flavors like Cherry Crush, Chocolate Treat, Peachy Keen, and Grape Mint; c. These practices, many of which were self-reported by the companies, include sponsoring youth-oriented events such as music festivals, and handing out free product samples at as many as 348 events between 2012-2013. 17. Dozens of cities and counties in California have passed retailer licensing ordinances in an effort to stop minors from accessing tobacco products and electronic smoking devices.lxix 18. A requirement for a retailer permit will not unduly burden legitimate business activities of retailers who sell or distribute tobacco products or electronic smoking devices to adults but will allow the County to regulate the operation of lawful businesses to discourage violations of federal, state and local laws related to tobacco products and electronic smoking devices. 19. The County has a substantial interest in promoting compliance with federal, state and local laws intended to regulate sales and use of tobacco products and electronic smoking devices; in discouraging the illegal purchase of tobacco products and electronic smoking devices by minors; in promoting compliance with laws prohibiting sales of tobacco products and electronic smoking devices to minors; and in protecting children from being lured into illegal activity through the misconduct of adults. i U.S. Food and Drug Administration. (2001). Electronic Cigarettes. Available at: http://www.fda.gov/newsevents/publichealthfocus/ucm172906.htm ii U.S. Food and Drug Administration. (2001). Electronic Cigarettes. Available at: http://www.fda.gov/newsevents/publichealthfocus/ucm172906.htm iii Schripp, T., Markewitz, D., Uhde, E., & Salthammer, T. (2012). Does e-cigarette consumption cause passive vaping? Indoor Air. 23(1), 25–31. Doi:10.1111/j.1600-0668.2012.00792.x iv King, B., Alam S., Promoff, G., et al. (2013). “Awareness and Ever Use of Electronic Cigarettes Among U.S. Adults, 2010-2011.” Nicotine and Tobacco Research, doi: 10.1093/ntr/ntt013, 2013. v Corey, C., Johnson, S., Apelberg, B., et al. (2013). “Notes from the Field: Electronic Cigarette Use Among Middle and High School Students - United States, 2011- 2012.” Morbidity and Mortality Weekly Report (MMWR). 62(35):729–730. Available at: http://www.cdc.gov/mmwr/preview/mmwrhtml/mm6235a6.htm. vi The Health Consequences of Smoking: Nicotine Addiction, a report of the Surgeon General (1988), available at http://profiles.nlm.nih.gov/ps/access/NNBBZD.pdf vii Vardavas CI, Anagnostopoulos N, Kougias M, Evangelopoulou V, Connolly GN, Behrakis PJK. Short-term Pulmonary Effects of Using an Electronic Cigarette. CHEST. 2012;141(6):1400-1406. viii World Health Organization. Statement: Questions and answers on electronic cigarettes or electronic nicotine delivery systems, July 2013. Available at: http://www.who.int/tobacco/communications/statements/eletronic_cigarettes/en/ ix World Health Organization. Statement: Questions and answers on electronic cigarettes or electronic nicotine delivery systems, July 2013. Available at: http://www.who.int/tobacco/communications/statements/eletronic_cigarettes/en/ x Chatham-Stephens, K, Law, R, Taylor, E, et al. (April 2014). “Notes from the Field: Calls to Poison Centers for Exposures to Electronic Cigarettes — United States, September 2010–February 2014” Morbidity and Mortality Weekly Report xi CDC, April 3, 2014 Press Release: “New CDC study finds increase in e-cigarette-related calls to poison centers”. Available at: http://www.cdc.gov/media/releases/2014/p0403-e-cigarette-poison.html xii FDA and Public Health Experts Warn about Electronic Cigarettes (July 22, 2009), available at www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm173222.htm. xiii Etter, J.F. and Bullen, C. (2011) Saliva cotinine levels in users of electronic cigarettes. European Respiratory Journal. Vol 38, 1219-1220. xiv Grana, R and Ling, P M. (2014). “Smoking revolution: A content analysis of electronic cigarette retail websites. Am J Prev Med 46(4): 395-403. xv German Cancer Research Center. (2013). “Electronic Cigarettes - An Overview” Red Series Tobacco Prevention and Control. Available at: www.dkfz.de/de/tabakkontrolle/download/Publikationen/RoteReihe/Band_19_e-cigarettes_an_overview.pdf. xvi Goniewicz, M.L.; Knysak, J.; Gawron, M.; Kosmider, L.; Sobczak, A.; Kurek, J.; Prokopowicz, A.; Jablonska-Czapla, M.; Rosik-Dulewska, C.; Havel, C.; Jacob, P.; Benowitz, N., "Levels of selected carcinogens and toxicants in vapour from electronic cigarettes," Tobacco Control, March 6, 2013. xvii State of California Environmental Protection Agency, Office of Environmental Health Hazard Assessment, Safe Drinking Water and Toxic Enforcement Act of 1986. (2013) Chemicals known to the State of California to cause cancer or reproductive toxicity. Available at: http://oehha.ca.gov/prop65/prop65_list/files/P65single091313.pdf xviii German Cancer Research Center. (2013). “Electronic Cigarettes - An Overview” Red Series Tobacco Prevention and Control. Available at: www.dkfz.de/de/tabakkontrolle/download/Publikationen/RoteReihe/Band_19_e- cigarettes_an_overview.pdf. xix Williams, M.; Villarreal, A.; Bozhilov, K.; Lin, S.; Talbot, P., “Metal and silicate particles including nanoparticles are present in electronic cigarette cartomizer fluid and aerosol,” PLoS ONE 8(3): e57987, March 20, 2013. xx Schober W, Szendrei K, Matzen W, et al. (2013). Use of electronic cigarettes (e-cigarettes) impairs indoor air quality and increases FeNO levels of e-cigarette consumers. Int. J. Hyg. Environ. Health. Available at: http://dx.doi.org/10.1016/j.ijheh.2013.11.003 xxi Agency for Toxic Substances and Disease Registery (ATSDR). (2008). Toxic Substances Portal. Available at http://www.atsdr.cdc.gov/substances/index.asp xxii State of California Environmental Protection Agency Office of Environmental Health Hazard Assessment. (n.d.). Chronic Toxicity Summary: Toluene. CAS Registry Number: 108-88-3. Available at: http://oehha.ca.gov/air/chronic_rels/pdf/108883.pdf xxiii Environmental Protection Agency. (2012). Particle Pollution and Health. Available at: http://www.epa.gov/pm/2012/fshealth.pdf xxiv King, B., Alam S., Promoff, G., et al. (2013). “Awareness and Ever Use of Electronic Cigarettes Among U.S. Adults, 2010-2011.” Nicotine and Tobacco Research, doi: 10.1093/ntr/ntt013, 2013. xxv Regan AK, Promoff G, Dube SR, Arrazola R. (2013). Electronic nicotine delivery systems: adult use and awareness of the ‘e- cigarette’ in the USA. Tob Control. 2013 Jan;22(1):19-23. xxvi Adkison, S.E., et al. (Mar. 2013) “Electronic Nicotine Delivery Systems: International Tobacco Control Four-Country Survey,” Am J Prev Med. 44(3): 207–215. doi:10.1016/j.amepre.2012.10.018. xxvii Pearson, et al. (2012) “e-Cigarette Awareness, Use, and Harm Perceptions in US Adults,” Am J Public Health. 2012 September; 102(9): 1758–1766. doi:10.2105/AJPH.2011.300526. xxviii U.S. Food and Drug Administration. (2009). FDA and Public Health Experts Warn about Electronic Cigarettes. Available at: http://www.fda.gov/newsevents/newsroom/pressannouncements/ucm173222.htm. xxix Cameron, J M, Howell, D N, White, J R, Andrenyak, D M, Layton, M E, and Roll, J M. (2013). Variable and potentially fatal amounts of nicotine in e-cigarette nicotine solutions. Tob Control, 23:77-8. Available at: http://tobaccocontrol.bmj.com/content/early/2013/02/12/tobaccocontrol-2012-050604 xxx U.S. Food and Drug Administration. (2009). FDA and Public Health Experts Warn about Electronic Cigarettes. Available at: http://www.fda.gov/newsevents/newsroom/pressannouncements/ucm173222.htm. xxxi Chen, L. (2013). “FDA Summary of Adverse Events on Electronic Cigarettes.” Nicotine & Tobacco Research: Official Journal of the Society for Research on Nicotine and Tobacco. 15(2): 615–6. Doi:10.1093/ntr/nts145. xxxii U.S. Food and Drug Administration. (2009) FDA Warns Of Health Risk Posed By E-Cigarettes. Available at: www.fda.gov/downloads/forconsumers/consumerupdates/UCM173430.pdf xxxiii World Health Organization. Statement: Questions and answers on electronic cigarettes or electronic nicotine delivery systems, July 2013. Available at: http://www.who.int/tobacco/communications/statements/eletronic_cigarettes/en/ xxxiv World Medical Association. (2012). Statement on Electronic Cigarettes and Other Electronic Nicotine Delivery Systems. Available at: www.wma.net/en/30publications/10policies/e19/index.html.pdf?print-media-type&footer-right=[page]/[toPage] xxxv Grana, R; Benowitz, N; Glantz, S. “Background Paper on E-cigarettes,” Center for Tobacco Control Research and Education, University of California, San Francisco and WHO Collaborating Center on Tobacco Control. December 2013. xxxvi Goniewicz, M.L.; Knysak, J.; Gawron, M.; Kosmider, L.; Sobczak, A.; Kurek, J.; Prokopowicz, A.; Jablonska-Czapla, M.; Rosik-Dulewska, C.; Havel, C.; Jacob, P.; Benowitz, N., "Levels of selected carcinogens and toxicants in vapour from electronic cigarettes," Tobacco Control, March 6, 2013. xxxvii Schripp, T., Markewitz, D., Uhde, E., & Salthammer, T. (2012). Does e-cigarette consumption cause passive vaping? Indoor Air. 23(1), 25–31. Doi:10.1111/j.1600-0668.2012.00792.x xxxviii Henderson, TR; Clark, CR; Marshall, TC; Hanson, RL; & Hobbs, CH. “Heat degradation studies of solar heat transfer fluids,” Solar Energy, 27, 121-128. 1981. xxxix Williams, M.; Villarreal, A.; Bozhilov, K.; Lin, S.; Talbot, P., “Metal and silicate particles including nanoparticles are present in electronic cigarette cartomizer fluid and aerosol,” PLoS ONE 8(3): e57987, March 20, 2013. xl Westenberger, B.J., “Evaluation of e-cigarettes,” St. Louis, MO: U.S. Department of Health and Human Services (DHHS), Food and Drug Administration (FDA), Center for Drug Evaluation and Research, Division of Pharmaceutical Analysis, May 4, 2009 xli Flouris, A.D.; Chorti, M.S.; Poulianiti, K.P.; Jamurtas, A.Z.; Kostikas, K.; Tzatzarakis, M.N.; Wallace, H.A.; Tsatsaki, A.M.; Koutedakis, Y., "Acute impact of active and passive electronic cigarette smoking on serum cotinine and lung function," Inhalation Toxicology 25(2): 91-101, February 2013. xlii Schripp, T., Markewitz, D., Uhde, E., & Salthammer, T. (2012). Does e-cigarette consumption cause passive vaping? Indoor Air. 23(1), 25–31. Doi:10.1111/j.1600-0668.2012.00792.x xliii German Cancer Research Center. (2013). “Electronic Cigarettes - An Overview” Red Series Tobacco Prevention and Control. Available at: www.dkfz.de/de/tabakkontrolle/download/Publikationen/RoteReihe/Band_19_e-cigarettes_an_overview.pdf. xliv Schripp, T., Markewitz, D., Uhde, E., & Salthammer, T. (2012). Does e-cigarette consumption cause passive vaping? Indoor Air. 23(1), 25–31. Doi:10.1111/j.1600-0668.2012.00792.x xlv Schober W, Szendrei K, Matzen W, et al. (2013). Use of electronic cigarettes (e-cigarettes) impairs indoor air quality and increases FeNO levels of e-cigarette consumers. Int. J. Hyg. Environ. Health. Available at: http://dx.doi.org/10.1016/j.ijheh.2013.11.003 xlvi State of California Tobacco Education and Research Oversight Committee. (2013). Position on Electronic Cigarettes (e-cigarettes). Available at: http://www.cdph.ca.gov/services/boards/teroc/Documents/Positions/TEROC%20Official%20Position%20of%20E- Cigs_June%202013_final.pdf xlvii U.S. Congress, Senate and House of Representatives Report. “Gateway to Addictions?: A survey of popular electronic cigarette manufacturers and targeted marketing to youth. April 2014. Available at: http://democrats.energycommerce.house.gov/sites/default/files/documents/Report-E-Cigarettes-Youth-Marketing- Gateway-To-Addiction-2014-4-14.pdf xlviii Grana, R and Ling, P M. (2014). “Smoking revolution: A content analysis of electronic cigarette retail websites. Am J Prev Med 46(4): 395-403. xlix McMillen R, Maduka J and Winickoff J. (2011). “Use of Emerging Tobacco Products in the United States.” Journal of Environmental and Public Health. Doi:10.1155/2012/989474. l American Cancer Society Cancer Action Network, American Heart Association, Campaign for Tobacco Free Kids, American Lung Association. (2011). Policy Guidance Document Regarding E‐Cigarettes. Available at: http://www.acscan.org/content/wp-content/uploads/2013/06/Policy-Guidance-on-E-Cigarettes-.pdf. li American Lung Association in California, the Center for Tobacco Policy and Organizing. (2013). Local Policies on the use of Electronic Cigarettes. Available at: http://center4tobaccopolicy.org/wp-content/uploads/2013/11/Local-Policies-on-Use-of-E-Cigs-Nov-2013.pdf lii U.S. Food and Drug Administration. “FDA proposes to extend its tobacco authority to additional tobacco products, including e-cigarettes.” April 24, 2014. Available at: http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm394667.htm liii Caldwell MC, Wysell MC, Kawachi I. (1996). Self-service tobacco displays and consumer theft. Tob Control.5:160– 161. liv Lee RE, Feighery EC, Schleicher NC, Halvorson S. (2001). The relation between community bans of self-service tobacco displays and store environment and between tobacco accessibility and merchant incentives. Am J Public Health.91(12):2019-21. lv California Tobacco Control Program, Healthy Stores for a Healthy Community Survey, 2013 lvi Santa Clara County Public Health Department, Healthy Stores for a Healthy Community Survey, 2013 lvii Santa Clara County Public Health Department, Healthy Stores for a Healthy Community Survey, 2013 lviii Corey, C., Johnson, S., Apelberg, B., et al. (2013). “Notes from the Field: Electronic Cigarette Use Among Middle and High School Students - United States, 2011- 2012.” Morbidity and Mortality Weekly Report (MMWR). 62(35):729–730. Available at: http://www.cdc.gov/mmwr/preview/mmwrhtml/mm6235a6.htm. lix U.S. Food and Drug Administration. (2009). FDA and Public Health Experts Warn about Electronic Cigarettes. Available at: http://www.fda.gov/newsevents/newsroom/pressannouncements/ucm173222.htm. lx World Medical Association. (2012). Statement on Electronic Cigarettes and Other Electronic Nicotine Delivery Systems. Available at: www.wma.net/en/30publications/10policies/e19/index.html.pdf?print-media-type&footer- right=[page]/[toPage] lxi U.S. Food and Drug Administration. “FDA proposes to extend its tobacco authority to additional tobacco products, including e-cigarettes.” April 24, 2014. Available at: http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm394667.htm lxii The Health Consequences of Smoking: Nicotine Addiction, a report of the Surgeon General (1988), available at http://profiles.nlm.nih.gov/ps/access/NNBBZD.pdf lxiii Vardavas CI, Anagnostopoulos N, Kougias M, Evangelopoulou V, Connolly GN, Behrakis PJK. Short-term Pulmonary Effects of Using an Electronic Cigarette. CHEST. 2012;141(6):1400-1406. lxiv World Health Organization. Statement: Questions and answers on electronic cigarettes or electronic nicotine delivery systems, July 2013. Available at: http://www.who.int/tobacco/communications/statements/eletronic_cigarettes/en/ lxv World Health Organization. Statement: Questions and answers on electronic cigarettes or electronic nicotine delivery systems, July 2013. Available at: http://www.who.int/tobacco/communications/statements/eletronic_cigarettes/en/ lxvi Chatham-Stephens, K, Law, R, Taylor, E, et al. (April 2014). “Notes from the Field: Calls to Poison Centers for Exposures to Electronic Cigarettes — United States, September 2010–February 2014” Morbidity and Mortality Weekly Report lxvii CDC, April 3, 2014 Press Release: “New CDC study finds increase in e-cigarette-related calls to poison centers”. Available at: http://www.cdc.gov/media/releases/2014/p0403-e-cigarette-poison.html lxviii U.S. Congress, Senate and House of Representatives Report. “Gateway to Addictions?: A survey of popular electronic cigarette manufacturers and targeted marketing to youth. April 2014. Available at: http://democrats.energycommerce.house.gov/sites/default/files/documents/Report-E-Cigarettes-Youth-Marketing- Gateway-To-Addiction-2014-4-14.pdf lxix American Lung Association in California, the Center for Tobacco Policy and Organizing. (2013). Tobacco Retailer Licensing and Electronic Cigarettes. Available at: http://center4tobaccopolicy.org/wp-content/uploads/2013/08/E-cigarettes-in-TRL-8.9.13.pdf County of Santa Clara Public Health Department Administration 976 Lenzen Avenue, 2nd Floor San José, CA 95126 408.792.5040 Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith August 21, 2015 Dear Mayor and City Manager, Re: Support for Increasing the Minimum Age for Purchase of Tobacco to 21 In June 2015, the Santa Clara County Board of Supervisors took action to reduce tobacco use among youth and young adults by increasing the minimum age for the purchase of tobacco from 18 to 21 years in the unincorporated areas of the County. Our ordinance included electronic cigarettes in our definition of tobacco product. Santa Clara County has been a leader in protecting the health of its residents – children and youth in particular – from the devastating consequences of tobacco use. We recognize that all of the cities within Santa Clara County are essential partners in reducing tobacco use among youth and young adults and we know that you share our goal of improving health for everyone who lives or works in our county. I am writing to strongly encourage you to consider implementing similar measures within your city to maximize the public health impact for all of our county residents, and to offer our help in doing so. Despite the tremendous progress that has been made in reducing premature death and disease from tobacco use, the decline in youth smoking has slowed over the last decade. Youth smoking rates in Santa Clara County remain at 8%, the same as in 2001, and similar to the national trend for youth. Additionally, the rapid uptake of electronic cigarette use by youth is of great public health concern. We know that the younger a person is when they first try tobacco, the more likely they will be to get hooked and the more difficult it will be for them to ever quit smoking. It is estimated that 90% of tobacco users start before the age of 21; roughly 80% first try tobacco before age 18; and 75 percent of teen smokers continue into their adult years. A recent report by the Institute of Medicine predicts that raising the minimum age for the sale of tobacco products to 21 will, over time, reduce the smoking rate by about 12% and smoking-related deaths by 10%. By making it harder for teens and young adults ages 18 – 21 to get access to tobacco, we are preventing more lifetime smokers, thereby reducing future health care costs and the leading preventable cause of death. The Public Health Department is able to assist cities to better understand this issue and to provide data, model policy language, and evidence regarding the rationale for increasing the minimum of age for purchase of tobacco and electronic cigarettes to 21. Additionally, our County Counsel’s office is available to speak directly with counsel for cities that have any questions or concerns regarding the legal authority for regulation. We encourage you to take action on this important public health issue, and reach out to our staff who are available to assist you in your efforts. Attachment C Support for Increasing the Minimum Age for Purchase of Tobacco to 21 Page Two August 20, 2015 If you would like further information or assistance related to this issue, please contact Nicole Coxe at the Public Health Department at (408) 793-2745 or nicole.coxe@phd.sccgov.org. Sincerely, Sara H. Cody, MD Health Officer and Public Health Director cc: City Council City of Palo Alto | City Clerk's Office | 10/28/2015 12:15 PM Carnahan, David From:Marissa Fegan <marissafegan@gmail.com> Sent:Monday, October 26, 2015 5:25 PM To:Council, City Subject:Smoking Regulations Categories:Red Category To Palo Alto City Council members and all whom it may concern: My husband and I have recently moved to Palo Alto, and we love it here. It is a great area, with a positive atmosphere. We currently live in a multi-family apartment complex, and our new neighbors have started smoking in their apartment and on their balcony which is located right outside of our bedroom window. We are health-conscious individuals, and thus aware of the terrible effects of second hand smoke. Since the smoking began, I have been experiencing allergy-like symptoms in the evening and morning hours that I am home and thus susceptible to the smoke. I am currently pregnant, increasing our concern about this second hand smoke coming into our apartment. In a few months our newborn baby will be living in our bedroom, and thus we are again increasingly anxious and dismayed about the smoking habits of our neighbors. We have researched the current rules about smoking in Palo Alto, and were pleased to find that potential rules about smoking in multi-family apartment complexes seem to have been discussed by the Palo Alto City Council. We would like to add our voices to encourage the committee to pass regulations on the smoking of individuals in and around apartment complexes due to the effects of second-hand smoke on other residents. Please let us know if there is anything at all that we can do to encourage this regulation being passed promptly, and any rights that we have to protect our family. Thank you, Marissa Fegan City of Palo Alto (ID # 6403) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Paid Parking RFP Award Title: Approval of a Contract for the Downtown Paid Parking Study and Downtown Parking Management Evaluation With Dixon Resources for $100,000 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council authorize the City Manager or designee to execute the contract for the Downtown Paid Parking Study & Downtown Parking Management Evaluation to Dixon Resources in the amount not to exceed $100,000. Executive Summary As part of the integrated strategy to address Downtown traffic and parking concerns, staff is conducting a comprehensive study of parking management strategies, including paid parking for the Downtown core. This staff report outlines the goals of the RFP and the selection process for the chosen vendor, Dixon Resources. Background and Discussion The award of this contract follows several Council-directed initiatives related to Downtown parking and traffic issues. Figure 1 provides a summary of the planned and underway parking- related projects. City of Palo Alto Page 2 Figure 1: Downtown Parking Strategies Initiative Status Downtown Residential Preferential Parking (RPP) Program Program regulates neighborhood parking in the residential streets around the Downtown core. Phase 1 of the program was implemented September 2015; Phase 2 of the program, which begins to restrict employee parking, will begin in April 2016. Parking Guidance Systems (PGS) for Downtown Parking Facilities Staff engaged a consultant team in early 2015 which has met several times with the City and stakeholders on the design of parking guidance systems for Downtown parking facilities. The stakeholders will meet again in January 2016 to discuss schedule and coordination with the Parking Wayfinding project. Parking Access and Revenue Controls for the Garages (PARCS) Conceived of in tandem with the Parking Guidance Systems initiative, the PARCS project will address technologies needed to implement outcomes of the Paid Parking Study. Parking Wayfinding Staff has engaged a design team for new parking wayfinding signage for the Downtown. The designs have been vetted through ARB and staff expects to have final pricing sets by spring of 2016. Award of a contract by the City Council will be scheduled thereafter. Transportation Management Association (TMA) Staff engaged a business community-focused steering committee to jump-start an organization that would develop, manage and market transportation programs for the benefit of the Downtown community, with the goal of reducing use of single occupant vehicles (SOV), thereby reducing parking demand. The TMA is expected to be fully incorporated as an independent non- profit organization in the spring of 2016. As a major employer, the City will be represented on the TMA Board. Source: Planning Department, December 2015 All of the initiatives may regulate parking in some way, helping to maximize the existing parking facilities, directing visitors to parking spaces quickly and identifying a new parking “brand” for the City. Currently, parking in Downtown Palo Alto is free for visitors for two hours in the neighborhoods and surface lots, and for three hours in the garage facilities. Most of the Downtown Commercial core is encompassed by a “color zone” system, where a parker is able to park for a maximum of two hours in each individual zone. However, hourly employees have been identified moving their vehicles from one colored zone to another zone every two hours rather than pay for a parking permit in the garages. Charging for parking in the garages rather than on-street spaces incentivizes employees to park on the street rather than the garages. The paid parking study was envisioned as a way to ensure that the overall parking environment functions as a system to support short-term parking for customers, long term parking for employees and resident parking in neighborhoods. The project scope includes the following components: 1. Identification of City goals related to parking management in downtown Palo Alto 2. Inventory and analysis of existing on- and off-street parking demand, including mapping, user feedback, and usage trends for the streets in and around the Downtown core. City of Palo Alto Page 3 3. Evaluation of existing parking policies and regulations, including time restrictions, pricing, and relevant zoning restrictions. 4. Conducting user surveys and stakeholder interviews to assess parking issues and usage. 5. Evaluation of how to best use the City’s existing parking supply and recommend comprehensive paid parking strategies in Downtown Palo Alto. 6. Development of draft findings and recommendations for review by downtown stakeholders, the Planning & Transportation Commission, and the City Council, followed by preparation of a final report. The City RFP closed on October 6; four teams submitted proposals. A summary of the responding firms is provided in Figure 2: Figure 2: Firms Proposing on Paid Parking RFP Firm Price Dixon Resources $86,564 JR Parking $211,078 TJKM $85,520 Walker Parking $94,460 Source: Planning Department, December 2015 The City conducted interviews on November 3rd with a panel that included three city staff members and two downtown stakeholder (individuals who had business interests with Downtown). The panel unanimously decided that Dixon’s experience in working with similar communities and practical, ground-up experience familiarity with parking technology made them the unanimous choice for the City. Timeline Once awarded, Dixon’s work will take approximately four to five months to complete, depending on the number of stakeholder discussions and the recommendations delivered as part of the work. Resource Impact In addition to the proposed amount, the final contract includes a modest budget for reimbursable travel time as well as a contingency for additional public meetings. An amount of $100,000 was budgeted in the Fiscal Year 2016 Adopted Operating Budget for this purpose. No additional funding is required. Policy Implications Regulating parking is consistent with the City’s 3-pronged approach to reduce parking demand and to regulate parking within the Downtown core. In addition, existing comp plan policies also support the work: City of Palo Alto Page 4 Policy T-3: Support the development and expansion of comprehensive, effective programs to reduce auto use at both local and regional levels Policy T-2: Consider economic, environmental and social cost issues in local transportation decisions Goal T-8: Attractive, Convenient Public and Private Parking Facilities Policy T-45: Provide sufficient parking in the University Avenue/Downtown and California Avenue business districts to address long-range needs Program T-49: Implement a comprehensive program of parking supply and demand management strategies for Downtown Palo Alto Environmental Review Pursuant to Section 15262 of the California Environmental Quality Act (CEQA) Guidelines, this project is exempt from CEQA review. Attachments:  Attachment A: C16161014 Dixon Contract (PDF) ATTACHMENT A Professional Services Rev. March 31, 2015 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 Ninety One Thousand Five Hundred Sixty Four Dollars ($91,564.00). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed One Hundred Thousand Dollars ($100,000.00). The applicable rates and schedule of payment are set out at 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 at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared plans and specifications or DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Julie Dixon as the Principal to have supervisory responsibility for the performance, progress, and execution of the Services and David Cooker as the project Senior Associate to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jessica Sullivan, Planning & Community Environment Department, Transportation Division, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329- 2453. The project manager will be CONSULTANT’s point of contact with respect to DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements:  All printed materials provided by CCONSULTANT 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 CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks.  Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with 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 Division’s office.  Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 SECTION 25. MISCELLANEOUS PROVISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 25.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 25.8 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 25.9 All unchecked boxes do not apply to this agreement. 25.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 25.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 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 APPROVED AS TO FORM: DIXON RESOURCES UNLIMITED Attachments: EXHIBIT “A”: SCOPE OF WORK EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Includes Attachment “A”) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 President Professional Services Rev. March 31, 2015 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT will complete a comprehensive evaluation and plan for parking in Downtown Palo Alto, including the development of an effective pricing and management strategy to maximize the utility of existing parking and to better serve visitors, residents and employees. The project will include the following components: 1. CONSULTANT will work with City to define goals related to parking management in downtown Palo Alto 2. CONSULTANT will conduct inventory and analysis of existing on- and off-street parking demand, including mapping, user feedback, and usage trends. 3. CONSULTANT will conduct evaluation of existing parking policies and regulations, including time restrictions, pricing, and relevant zoning restrictions. 4. CONSULTANT will conduct user surveys and stakeholder interviews to assess parking issues and usage. 5. CONSULTANT will evaluate how to best use the City’s existing parking supply and recommend comprehensive paid parking strategies in Downtown Palo Alto. 6. CONSULTANT will develop draft findings and recommendations for review by downtown stakeholders, the Planning & Transportation Commission, and the City Council, followed by preparation of a final report. Phase 1: Existing Parking Conditions Analysis A. CONSULTANT will conduct kickoff meeting with City stakeholders (Parking, Facilities, Revenue Collections, Police) and establish project schedule, milestones and any required community input. Community input should include at a minimum several meetings with Downtown stakeholders. B. CONSULTANT will identify goals for parking pricing strategy with stakeholders. Determine what a successful paid parking program would look like in the Downtown core, and suggest a potential timeline for implementation. C. CONSULTANT will inventory existing parking conditions, including on- and off-street parking, using information provided by the City and field studies (including turnover and intercept studies). D. CONSULTANT will identify the user(s) and their specific needs relating to parking. E. CONSULTANT will conduct field surveys of parking utilization and turnover for all identified on- and off-street parking within the study area (shown in Attachment A). Surveys will be conducted on one non-Monday or Friday weekday and one Saturday each month for three months. F. CONSULTANT will evaluate where parking facility users are traveling throughout specified study area. G. CONSULTANT will evaluate and analyze current parking demand in designated study area. H. CONSULTANT will evaluate current parking policies and regulations, including time restrictions and pricing, and determine whether a structure should be changed and, if changed, a potential timeline for doing so. I. CONSULTANT will conduct stakeholder and public outreach via user surveys, interviews, and DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 meetings to understand day-to-day and seasonal parking issues and to determine potential for paid parking and potential pay structures. This engagement may include a public workshop to solicit feedback from user groups regarding parking usage, pricing strategies, and acceptance of potential paid parking. J. CONSULTANT will participate in stakeholder meetings (up to four, including the kickoff meeting) to discuss findings and get feedback from the group on analysis. Deliverables – Phase I: Existing Parking Conditions Analysis A. Summary of existing parking occupancy, turnover and parking habits based on data collected B. Gap analysis of current parking regulations and usage C. General themes and concerns garnered from the stakeholder and public engagement process Phase 2: Paid Parking Recommendations A. CONSULTANT will evaluate the feasibility of implementing paid parking in Downtown Palo Alto, including specific recommendations on pricing and timeline for implementation. All recommendations should tie to program goals stated in Phase 1. Strategies may include but are not limited to the following: tiered parking pricing based on proximity to Downtown, increasing existing permit fees, addressing availability of short-term parking permits, leasing of private parking spaces during off-peak hours, parking cash-out programs, etc. B. CONSULTANT will coordinate with City’s parking technology consultant (Walker Parking) in developing recommendations for paid parking methods that dovetail with the parking technology recommendations and that achieve identified goals, considering both simplicity of use and cost effectiveness (related to installation and maintenance). C. CONSULTANT will identify opportunities for additional parking supply, including parking reconfiguration, leased spaces, restriping, etc. D. CONSULTANT will identify opportunities for use of parking revenues to directly benefit the City, Downtown Palo Alto, and paying customers; provide possible revenue structures that would support stated goals. E. CONSULTANT will meet with stakeholders to assess viability of strategies. F. CONSULTANT may present strategies Planning & Transportation Commission to review potential strategies. G. CONSULTANT will support City staff in additional public engagement to share findings and recommendations for the paid parking strategy in Downtown Palo Alto. Deliverables - Phase 2: Paid Parking Recommendations A. Recommendation of paid parking strategy for Downtown Palo Alto, including implementation, priority of recommendations if phased implementation is necessary, parking technology, pricing structures, and use of revenue. In Downtown Palo Alto, currently parking is free for two hours in on-street parking spaces and three hours in garages and surface lots. Attachment A shows the boundaries of the Downtown color zone, a parking strategy implemented to address the problem of employees controlling on-street parking spaces in front of Downtown retail. The color zone prohibits cars from parking in a single color zone for more than 2 hours during any 8 hour period. However, employees and long-term parkers have learned that they DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 could avoid the color zone restrictions by moving their car to a different zone at the two hour mark. Palo Alto’s Downtown off-street parking facilities include six garages and twelve surface lots, with a combined parking inventory of 3,183 parking spaces. Figure 1 shows the total number of hourly spots and permit spots associated with each facility. Attachment A provides a map of the parking facility locations in Downtown. Figure 1: Total Spaces in Downtown Parking Assessment Inventory Facility Name Permit Hourly Total Garage R (Alma/High) 134 77 211 Garage Q (Private garage with city permit use) 134 0 134 Garage S/L (Bryant/Lytton) 381 307 688 Garage CW (Cowper Webster) 388 201 589 Garage CC (Civic Center) 509 183 692 Garage B (Private garage with city hourly use) 0 63 63 Lot C 27 25 52 Lot O 0 78 78 Lot A 0 68 68 Lot K 43 12 55 Lot F 0 46 46 Lot H 0 91 91 Lot N 0 46 46 Lot D 0 86 86 Lot P 0 51 51 Lot G 53 0 53 Lot X 31 0 31 Lot E 34 0 34 Lot T 24 28 52 800 High Garage 53 10 63 Total Spaces 1,811 1,372 3,183 All lots and garages except for 800 High are part of the Downtown Assessment District, which was implemented to help fund the construction of the newest parking facilities, Garage S/L and Garage R. Hourly parking in the garages is currently limited to 3 hours within a particular color zone, while parking in the lots is limited to 2 hours within the color zone. The only existing paid parking solutions in the Downtown district are annual and daily permit parking in the garages and surface lots. Employees who work in the Downtown Assessment District may purchase annual permits for a specific garage/lot, and must park in “permit” spaces rather than “hourly” spaces. Permits currently cost $466 for an annual permit and $17.50 for a daily permit. Annual permits are exclusively sold over the counter in City Hall. Daily parking permits can be purchased DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 at City Hall or from permit machines in two garages (Lot S and Lot C/W). Demand for the garages typically depends on location, and is diluted by the current availability of free on-street parking in the surrounding neighborhoods and Downtown. The City currently uses an online permit management system by Progressive Solutions to track waitlists at the Downtown parking facilities; however, the system has limited functionality and does not allow purchase of permits online. Additionally, because there is currently no access control at any of the parking facilities, there is no real-time interface between the permit database and the parking facility activity. The City has engaged a third-party online permit sales system for the Downtown RPP program, which could potentially replace the existing solution. The City has also contracted with a parking consultant to design Parking Access and Revenue Controls (PARCs) system and Parking Guidance System (PGS) specifications. Both projects will dovetail with the paid parking implementation in the Downtown core. In tandem with the implementation of parking management strategies, the city is also moving forward with a Transportation Management Association (TMA) to offer employers options to assist employees in reducing single occupancy vehicle trips and parking demand. There is potential for the revenue from paid parking to be invested in these TDM strategies, in addition to maintenance and improvement of the Downtown streetscape and bicycle/pedestrian facilities. RPP Program: As of September 15th, 2015, parking in the neighborhoods around Downtown is regulated to 2 hours without a permit, M-F, 8am – 5pm. DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 PARKING IN DOWNTOWN PALO ALTO Please refer to the map on the reverse side to find convenient short-term and long-term parking options in downtown Palo Alto. ■Free Parking Parking is provided for visitors and customers in the downtown area on the street,in off- street parking lots and in parking garages. ■Two-hour parking is provided in on- street spaces and in surface lots. ■Three-hour parking is provided in parking garages except in designated permit areas. Enforcement of parking regulations is conducted from 8 a.m.to 5 p.m.,Monday through Friday.Enforcement is NOT in effect before and after those times and on weekends and holidays.Restricted areas such as red curbs,spaces designated for persons with disabilities and any other locations prohibited by law are always in effect. Parking outside the color zone? Parking time limits are also enforced in signed two-hour on- street parking areas outside the Color Zone starting from the south side of Forest Avenue. ■Color Zone Parking The core business district of downtown Palo Alto is divided into four color-coded parking zones: ■Purple,Coral,Lime and Blue. ■Parking enforcement in effect Monday through Friday 8 a.m.to 5 p.m. ■Once the time limit expires in a given color zone you must move your vehicle out of that zone. ■Vehicles will be ticketed if they are reparked in the same color zone within the same enforcement day. Example:You park in a 2-hour space on the street in the Lime Zone at noon.(You may repark within the Lime Zone only during your initial two hours should you need to.) However,if you leave before the 2 hours are up,you cannot repark later that same day.Your car must leave the Lime Zone by 2 p.m.You may park in any other Color Zone except the Lime Zone,which you are now leaving. Thirty-minute green parking zones,yellow commercial loading zones,white passenger loading zones and blue disability designated spaces are exempt from the color zone reparking requirement. ■All Day Visitor Parking If the two-hour or three-hour time zones aren’t sufficient,visitors may purchase a one-day permit.Permits are valid in all off-street parking lots and garages.All-day permits are not valid for on-street parking spaces. Members of the parking assessment district may purchase daily permits in advance for visitors and guests to the downtown. All permits may be purchased at Palo Alto Civic Center,250 Hamilton Avenue on the first floor at Revenue Collections. A privately owned pay garage is located at 525 University Avenue. Construction worker vehicles require a special permit that can be purchased at the City of Palo Alto Development Center,285 Hamilton Avenue. ■Permit Parking for Employers and Employees Employees of businesses in the downtown parking assessment district may purchase quarterly or annual permits for long-term parking in any of the nine off-street parking lots and garages.Parking permits are issued for these locations (see map) – Civic Center Garage (CC),High/Alma South Garage (R), High/Alma North Garage (Q),Bryant/Lytton Garage (S/L),Webster/Cowper Garage (W/C) and the following surface lots – Gilman/Bryant Lot (E),Gilman/Waverley Lot (G),Lytton/ Waverley Lot (K),Lytton/Kipling Lot (T).Permits are also available at a reduced rate the Sheraton Lot (X) in signed permit parking area. Transferable Permits are also available for the following garages:Webster Cowper (WC), Bryant Lytton (S/L),and Civic Center (CC). Transferable permits are sold to one individual and can be used on multiple vehicles. Transferable permits are sold at a two- quarter maximum. Permits are sold on the first floor of Palo Alto Civic Center,250 Hamilton Avenue at the Revenue Collection Counter. ■Public Transportation Palo Alto is served by several transit agencies including Caltrain commuter rail,Samtrans busses,Valley Transportation Authority (VTA) busses,Dumbarton Express busses and the Marguerite and Palo Alto Shuttles.The University Avenue Transit Center is a popular destination for many transit riders. Transit schedules are available at Palo Alto Civic Center,at the Caltrain Depot and on the internet at www.511.org.Transit,rideshare, traffic and bicycling information can be obtained by dialing 511on the telephone. The Marguerite and Palo Alto Shuttle systems are free.The Marguerite Shuttle serves the Stanford University Campus and surrounding locale.The Palo Alto Shuttle runs two routes in Palo Alto and serves many popular destinations. ■Shuttle information: Palo Alto Shuttle:650-329-2520 or www.cityofpaloalto.org/transpor- tation/shuttle Marguerite Shuttle:650-723-9362 http://transportation.stanford.edu ■Ridesharing information: Ridesharing information for carpool or vanpool services can also be obtained at www.511.org or by calling 511. ■Bicycling: Ample bicycle parking is available throughout the downtown business district.Local bicycling information is available on the Internet at www.cityofpaloalto.org/bike. ■Q&A I come downtown several times a day. Is there short-term parking available? Yes, there are several 30-minute parking spaces throughout the downtown area (see map).These parking spaces are exempt from color-zone enforcement,which means you may repark in a 30-minute parking space. How much do parking citations cost? Parking citations cost a minimum $27.That means that one ticket a month will cost more than an annual parking permit. I work downtown. How can I get a parking permit? Just visit or call Revenue Collections on the first floor of Palo Alto Civic Center.Check with Revenue Collections 650-329-2317 for current permit pricing.Less expensive permits are available at the Sheraton Hotel (Lot X). ■For More Information,Call: City of Palo Alto: . . . . . . . . . . . . . .650-329-2100 Bicycle: . . . . . . . . . . . . . . . . . . . .650-329-2520 Parking Enforcement: . . . . . .650-329-2687 Parking Permits: . . . . . . . . . . .650-329-2317 Police Department (Non-Emergency) . . . . . . . . . .650-329-2413 Parking Citations . . . . . . . . . . .650-329-2252 Palo Alto Chamber of Commerce . . . . . . . .650-324-3121 Palo Alto Downtown Business and Professional Association . . . . . . .650-462-1795 Bay Area Transit Information . . .511 Palo Alto Shuttle . . . . . . . . . . . . . .650-329-2520 Stanford Marguerite . . . . . . . . . . .650-723-9362 This brochure is a collaborative project of the City of Palo Alto and Palo Alto Chamber of Commerce. Revised July 2004. This brochure is a collaborative project of the City of Palo Alto, The Palo Alto Chamber of Commerce and the Palo Alto Downtown Business and Professional Association. ATTACHMENT "A"DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 KEY TO PARKING LOTS AND GARAGES A Emerson/Lytton Lot Ramona/University Garage Ramona/Lytton Lot Civic Center Garage Emerson/Ramona Lot Hamilton/Waverley Lot Gilman/Bryant Lot Florence/Lytton Lot Gilman/Waverley Lot Lytton/Waverley Lot Bryant/Lytton Garage Sheraton Hotel Lot Pay Toilet B C D E F G K S/L P High/Hamilton Lot High/Alma North Garage High/Alma South Garage Emerson/High Lot Cowper/Hamilton Lot Lytton/Kipling Lot Private Pay Garage Webster/Cowper Garage 30-Minute Parking Spaces Train Station Transit Stop Marguerite Shuttle Stop Bicycle Boulevard/Bikestation® Public Restroom Q R T $ WC underpass to stanford university Q High/Alma North Garage Permit Parking O Emerson/High Lot 2-Hour Parking R P High/ Hamilton Lot 2-Hour Parking Emerson/ Lytton Lot 2-Hour Parking Emerson/ Ramona Lot 2-Hour Parking Ramona/ University Garage 3-Hour Parking Ramona/ Lytton Lot 2-Hour & Senior Permit Parking Civic Center Garage 3-Hour & Permit Parking A C N B CC PURPLE ZONE CORAL ZONE 3-Hour & Permit Parking Florence/ Lytton Lot 2-Hour Parking POST OFFICE 2-Hour Parking Gil m a n / B r y a n t L o t Pe r m i t Pa r k in g Bryant/Lytton Garage Gi l m a n / W a v e r l e y L o t Pe r m i t Pa r k in g LLyttytton Aon Avvenueenue UUnivniversitersity Ay Avvenueenue HHamiltamilton Aon Avv enueenue FFororest Aest Avvenueenue AA lm a S lm a S trtr ee t ee t EE me r s o n S me r s o n S trtr ee t ee t BB rr yy anan t S t S trtr ee t ee t WWaa vv erer lele y S y S trtr ee t ee t WWeb s t eb s t er S er S trtr ee t ee t TT as s o S as s o S trtr ee t ee t KK ip l i n g S ip l i n g S trtr ee t ee t Lytton/Waverley Lot 2-Hour & Permit Parking K K S/L F D E G Lytton/ Kipling Lot 2-Hour & Permit Parking Private Parking Garage Cowper/Hamilton Lot 2-Hour Parking Webster/Cowper Garage 3-Hour & Permit Parking T $ H WC Parking lot and garage restrictions and color zone requirements are in effect 8 a.m.– 5 p.m. Monday to Friday only, holidays excepted. Yellow commercial-loading zones, 30-minute parking spaces,white passenger-loading zones and disability designated spaces are exempt from the color-zone regulations. COLOR ZONES LIME ZONE BLUE ZONE ▲TO HWY 101 El Palo Alto Tr a n si t C e n t e r ▲ CC N H X O High/Alma South Garage 3-Hour and Permit Parking Lytton/ Waverley Lot Permit Parking Hamilton/Waverley Lot Bi k e s t a t i o n ® PT RR PT RR RR ▲ EE l C l C am i n o R am i n o R ea l ea l PT Pe r m i t Pa r k in g X RR am o n a S am o n a S trtr ee t ee t FF lo r lo r en c en c e S e S trtr ee t ee t GG il m a n S il m a n S trtr ee t ee t CC oo wpwp er S er S trtr ee t ee t HH ig h S ig h S trtr ee t ee t ▲ ▼ ▼ ▼ ▼ ▼ ▼▼▼ ▼▼ ▼ ▲ ▲ ▲ ▲▲▲▲ ▲▲ ▲▲▲▲▲▲▲▲▲▲ ▲▲ ▲▲ ▲ ▲ ▲ ▲ ▲▲ ▼ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ TO HWY 280 ▲ ▲ ▲▲ ▲▲ ▲ ▲ ▲▲ Na n A g g – D e s i g n e r A r t h u r R u d a – P r o d u c t i o n M e t r o P r i n t i n g – P r i n t e r ATTACHMENT "A"DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion No. of Days/Weeks From NTP 1. Phase 1 12 -16 weeks 2. Phase 2 4 Weeks DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) and reimbursable expenses shall not exceed $91,564.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $100,000.00. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $91,564.00 and the total compensation for Additional Services does not exceed $8,436.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $6,720.00 (1 Kick-off, 5 stakeholder meetings, 1 Final Presentation) Task 2 $15,549.00 (Travel: 1 Kick-off, 5 stakeholder meetings, 1 Final Presentation) Task 3 $39,960.00 (Field surveys: One Wed & One Saturday 3 months) Task 4 $6,220.00 (Summary of existing parking occupancy, turnover and parking habits) Task 5 $5,220.00 (Gap analysis of current parking regulations and usage) Task 6 $5,695.00 (Paid Parking Recommendations) Task 7 $7,200.00 (Use of TBOPS) DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 Sub-total Basic Services $86.564.00 Reimbursable Expenses $5000.00 Total Basic Services and Reimbursable expenses $91,564.00 Additional Services (Not to Exceed) $8,436.00 Maximum Total Compensation $100,000.00 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 $2,500.00 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 expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 EXHIBIT “C-1” HOURLY RATE SCHEDULE Labor Categories Hourly Rate Sr. Associate, Principal $160 Data Collector, Associate, Sr. Associate $111 Associate, Sr. Associate, Principal $139 to $145 DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 Professional Services Rev. March 31, 2015 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE EMAILED TO: InsuranceCerts@CityofPaloAlto.org DocuSign Envelope ID: 4A016E1B-5AB3-4472-9E8D-E81E5F50EA11 City of Palo Alto (ID # 6456) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Second Reading Planning Codes Update Title: SECOND READING: Approval of Planning Codes Update Ordinance to Amend Land Use Related Portions of Titles 16 and 18 of the Palo Alto Municipal Code. The Affected Chapters of Title 16 Include Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District)), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement), 18.04 (Definitions), 18.08 (Designation and Establishment of Districts), 18.10 (Low Density Residential RE, R-2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential RM-15, RM-30, RM-40 Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial CN, CC and CS Districts), 18.18 (Downtown Commercial CD Districts), 18.20 (Office, Research and Manufacturing MOR, ROLM, RP and GM Districts), 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new Chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Non-conforming Uses and Non-complying Facilities) and 18.77 (Processing of Permits and Approvals) From: City Manager Lead Department: Planning and Community Environment RECOMMENDATION Staff recommends that the Council conduct a second reading and adopt the attached ordinance (Attachment A). BACKGROUND On December 7, 2015, the City Council reviewed and adopted (on first reading) a draft ordinance amending various sections of the municipal code. City of Palo Alto Page 2 That ordinance has been modified to incorporate the Council’s desired changes, which are detailed in Attachment B (Draft Action Minutes) and Attachment C (Summary of Ordinance Changes), and which include elimination of portions of the draft ordinance that the City Council did not discuss or take action on. Also in response to Council’s discussion on review of EIRs requiring a Statement of Overriding Consideration, staff has added the following clarification to Section 18.31.010 of the ordinance: “For projects requiring a statement of overriding considerations, the PCE Director shall refer any action on the entitlements to the City Council.” Since the California Environmental Quality Act requires the decision maker on the project to certify the environmental document, staff recommends adding this additional clarification to ensure the public understands that the Council, and not the Director, will be making the decisions on the entitlements for those projects requiring an EIR with a Statement of Overriding Considerations. The modifications included in the ordinance presented for approval this evening are shown in Attachment C and constitute minor clarifications and deletions which do not necessitate another first reading or referral to the Planning and Transportation Commission. Staff will return to the City Council in early 2016 to continue a discussion regarding sections of the ordinance that were deferred, as well as other possible amendments to the planning codes, including provisions related to basements, single family home remodels, and other topics. Attachments:  Attachment A: Ordinance Amending Planning Code (PDF)  Attachment B: City Council December 7, 2015 DRAFT Action Minutes (PDF)  Attachment C: Modifications to Amended Planning Code Ordinance (PDF) NOT YET APPROVED 151014 jb 0131490A 1 December 15, 2015 Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District)), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement), 18.04 (Definitions), 18.08 (Designation and Establishment of Districts), 18.10 (Low Density Residential RE, R-2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential (RM-15, RM-30, RM-40) Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial (CN,CC and CS) Districts), 18.18 (Downtown Commercial (CD) District), 18.20 (Office, Research and Manufacturing (MOR, ROLM, RP and GM) Districts)), 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Nonconforming Uses and Noncomplying Facilities), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Sections 16.20.010 (Definitions), 16.20.070 (Inspection), 16.20.140 (Projecting signs), 16.20.180 (Classification of signs), 16.20.210 (Abatement of nonconforming signs), 16.20.240 (Unsafe and unlawful signs), and 16.20.270 (Enforcement -Citation authority), and Tables 1, 2, and 3 of Chapter 16.20 (Signs) of Title 16 (Building Regulations) of the Palo Alto Municipal Code (PAMC) are amended to read as follows: 16.20.010 Definitions (a) The following words and phrases whenever used in this chapter shall be construed as defined in this section: . . . (17) "Wall sign" means any sign posted or painted or suspended from or otherwise fixed to the wall of any building or structure in an essentially flat position, or with the exposed face of the sign in a plane approximately parallel to the plane of such wall. Any sign suspended from or attached to, and placed approximately parallel to the front of a canopy, porch, or similar covering structure shall be deemed to be a wall sign. 16.20.070 Inspection The building official, Director of Planning and Community Environment (PCE Director) or his designee may, at any time, make such inspection as may be necessary or appropriate to ascertain whether any sign will comply or is complying with this chapter and other applicable laws. If required by the building official, an inspection shall be called for the permittee upon the completion of the structural portions of every sign and before the structural connections to the building or structure are concealed or covered. 16.20.140 Projecting signs Every projecting sign shall comply with the requirements of this section. Attachment A NOT YET APPROVED 151014 jb 0131490A 2 December 15, 2015 (a) Projecting signs in the GM zones and on El Camino Real frontage in the CS and CN zones. (1) Area. No such sign shall exceed five square feet in area. (2) Height. No part of any projecting sign shall exceed the height of the building’s adjacent parapet upon or in front of which it is situated, or in the case of buildings having sloping roofs, above the roof ridge. Any such sign which projects over public property shall have a clearance of ten feet above the ground. (3) Location. No such sign shall project more than one foot over public property. (b) Projecting Signs in Other Zones. (1) Area. No such sign shall exceed three square feet in area. (2) Height. No part of any projecting sign shall exceed a height of twelve feet, nor shall any part of such sign extend above the top level of the wall upon or in front of which it is situated. Any such sign over any public or private sidewalk or walkway shall have a minimum clearance below the sign of seven feet. (3) Location. No such sign shall be placed over or above any public sidewalk or other public place unless the sign is situated under a marquee, porch, walkway covering or similar covering structure. . . . 16.20.180 Classification of signs Every sign erected or proposed to be erected shall be classified by the chief building official PCE Director in accordance with the provisions of this chapter. Any sign which does not clearly fall within one of the classifications provided herein shall be placed by the chief building official PCE Director in the classification which the sign, in view of its design, location and purpose, most nearly approximates. Such classification by the building official PCE Director shall be final. 16.20.210 Abatement of nonconforming signs Nonconforming signs shall either be made to conform with the provisions of this chapter or be abated within the applicable period of time hereinabove set forth. In the event they are not, the building official PCE Director shall order the sign abated by the owner of the property and any other person known to be responsible for the maintenance of the sign. It is thereafter unlawful for any such person to maintain or suffer to be maintained on any property owned or controlled by him any such sign. Unless some other mode of abatement is approved by the building official or PCE Director in writing, abatement of nonconforming signs shall be accomplished in the following manner: (a) Signs painted on buildings, walls or fences: by removal of the paint constituting the sign or by permanently painting over it in such a way that the sign shall not hereafter be or become visible; NOT YET APPROVED 151014 jb 0131490A 3 December 15, 2015 (b) Other Signs. By removal of the sign, including its dependent structures and supports; or pursuant to a sign permit duly issued, by modification, alteration or replacement thereof in conformity with the provisions of this chapter. 16.20.240 Unsafe and unlawful signs (a) Public Property. Any sign posted on public property contrary to the provisions of Section 16.20.100 may be removed by the division of inspectional services or the police department. (b) Unsafe or Abandoned Signs. Any sign deemed by the police department, or the chief building official or PCE Director to be (1) unsafe, due to interfering with the public's health, safety, welfare or convenience, or (2) abandoned, including but not limited to election signs posted more than six days after the election to which they relate, may be removed by the division of inspectional services or the police department. (c) Whenever a sign, other than those on public property or those deemed to be unsafe or abandoned, is found to be erected or maintained in violation of any provision of this chapter or of any other ordinance or law, the building official or PCE Director may order that such sign be altered, repaired, reconstructed, demolished or removed as may be appropriate to abate such condition. Any work required to be done shall, unless a different time is specified, be completed within ten days of the date of such order. Failure, neglect or refusal to comply with such order of the building official or PCE Director shall be sufficient basis for the revocation of any permit or approval granted under this chapter and shall constitute a separate offense. In addition to any other remedies provided by law, the building official may remove, or cause to be removed any such sign erected or maintained in violation of the provisions of this chapter. 16.20.270 Enforcement - Citation authority Persons employed in the following designated employee positions are authorized to exercise the authority provided in Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter: PCE Director (or designee), chief building official, assistant building official and code enforcement officer. Chapter 16.20 — Table 1 Allowable Sign Area for Freestanding Signs up to Five Feet High NOTE: THESE ARE MAXIMUM DESIGN DIMENSIONS, AND MAY BE REDUCED IN THE DESIGN REVIEW PROCESS PURSUANT TO CHAPTER 16.4818.77 (Processing of Permits and Approvals) . . . NOT YET APPROVED 151014 jb 0131490A 4 December 15, 2015 Chapter 16.20 — Table 2 Allowable Sign Area for Freestanding Signs Over Five Feet High NOTE: THESE ARE MAXIMUM DESIGN DIMENSIONS, AND MAY BE REDUCED IN THE DESIGN REVIEW PROCESS PURSUANT TO CHAPTER 16.4818.77 (Processing of Permits and Approvals) . . . Chapter 16.20 — Table 2 Allowable Sign Height for Freestanding Signs Over Five Feet High NOTE: THESE ARE MAXIMUM DESIGN DIMENSIONS, AND MAY BE REDUCED IN THE DESIGN REVIEW PROCESS PURSUANT TO CHAPTER 16.4818.77 (Processing of Permits and Approvals) . . . SECTION 2. Section 16.24.010 of Chapter 16.24 (Fences) of Title 16 (Building Regulations) of the PAMC is amended to read as follows: 16.24.010 Definitions Throughout this chapter, the following definitions shall apply: (a) Height Measurement. Except as otherwise provided in this chapter, height of fences or walls between the setback line and lot line shall be measured from natural grade, as determined by the chief building official or Director of Planning and Community Environment (PCE Director) or designee. . . . NOT YET APPROVED 151014 jb 0131490A 5 December 15, 2015 16.24.080 Violations - Penalty - Enforcement (a) No person shall erect, construct or maintain any fence, wall or structure in the nature of a fence which does not meet the requirements of this section. (b) Violation of any provision of this chapter is an infraction, punishable as provided in this code. Each day of violation constitutes a separate offense and may be separately punished. (c) Persons employed in the following designated employee positions are authorized to exercise the authority provided in Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter: chief building official, assistant building official, PCE Director or designee, and code enforcement officer. SECTION 3. Section 16.57.010 (Applicability) of Chapter 16.57 (In-Lieu Parking Fee for New Nonresidential Development in the Commercial Downtown (CD) Zoning District) of Title 16 (Building Regulations) of the PAMC is amended to read as follows: 16.57.010 Applicability The in-lieu parking fee regulations set forth in this chapter shall apply only to nonresidential development within the University Avenue parking assessment district which meets the eligibility criteria set forth in subsection (d) of Section 18.49.100 18.18.090 of this code. In accordance with subsection (a) of Section 18.49.100 18.18.090 of this code, payment of the fee established by this chapter shall be a condition of the approval of or permit for any new development, any addition or enlargement of existing development, or any use of any floor area that has never been assessed under any Bond Plan G financing pursuant to Title 13 of this code. SECTION 4. Title 18 (Zoning) Table of Contents of the PAMC is amended to add Chapter 18.36 (HD Hospital Districts). SECTION 5. Section 18.01.025 (Zoning Code Interpretation) is added to Chapter 18.01 (Adoption, Purposes, and Enforcement) of Title 18 (Zoning) of the PAMC to read as follows: 18.01.025 (Zoning Code Interpretation) Whenever in the opinion of the Planning and Community Environment Director (PCE Director) there is any question regarding the interpretation of the Comprehensive Plan or the planning and land use provisions of Titles 16, 18 or 21 to any specific case or situation, the PCE Director shall have the authority to interpret such planning codes. When in the opinion of the PCE Director a formal written decision is warranted, the Director shall make the written decision available to the public by posting on the City’s website. The interpretation shall become effective fourteen consecutive calendar days from the date of posting unless appealed under this section. The interpretation shall become the standard interpretation for future application of that provision of this Chapter unless changed by the Council on appeal. In accordance with the provisions of Section 18.77.070(f), any person may appeal the PCE Director’s written interpretation prior to its effective date. All final written interpretations made under this section shall be made publicly available on the City’s website. Staff shall NOT YET APPROVED 151014 jb 0131490A 6 December 15, 2015 prepare a quarterly Information Report to the Council summarizing all final interpretations made under this section. SECTION 6. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) is amended to read as follows: 18.04.030 Definitions (a) Throughout this title the following words and phrases shall have the meanings ascribed in this section. . . . (53) "Facility" means a structure, building or other physical contrivance or object. . . . (B) "Noncomplying facility" means a facility which is in violation of (i) any of the site development regulations or other regulations established by this title, but was lawfully existing on July 20, 1978, or (ii) any amendments to this title, but was lawfully existing prior to or the application of any district or regulation to the property involved by reason of which adoption or application the facility became noncomplying. Sometimes this Code interchangeably refers to “noncomplying facilities” as “legal noncomplying”, “grandfathered” or “grandparented” facilities. (For the definition for "nonconforming use" see subsection (143)(B)). . . . (65) "Gross floor area" is defined as follows: (A) Non-residential & Multifamily Inclusions: For all zoning districts other than the R-E, R- 1, R-2 and RMD residence districts, "gross floor area" means the total area of all floors of a building measured to the outside surfaces of exterior walls, and including all of the following: (i) Halls; (ii) Stairways measured at each floor; (iii) Elevator shafts measured at each floor; . . . (B) Non-residential & Multifamily Exclusions: For all zoning districts other than the R-E, R- 1, R-2 and RMD residence districts, "gross floor area" shall not include the following: . . . (iv) Except in the CD District and in areas designated as special study areas, minor additions of floor area approved by the director of planning and community environment for purposes of resource conservation or code compliance, upon the determination that such minor additions will increase compliance with environmental health, safety or other federal, state or local standards. Such additions may include, but not be limited to, the following: NOT YET APPROVED 151014 jb 0131490A 7 December 15, 2015 a. Areas designed for resource conservation, such as trash compactors, recycling, and other energy facilities meeting the criteria outlined in Section 18.42.120 (Resource Conservation Energy Facilities); b. Areas designed and required for hazardous materials storage facilities, disability related handicapped or seismic upgrades. For the purposes of this section disability related upgrades are limited to the incremental square footage necessary to accommodate disability accessminimum extent necessary and shall be subject to the Director’s approval not to exceed 500 square feet per site. Disability related upgrades shall only apply to remodels of existing buildings and shall not qualify for grandfathered floor area in the event the building is later replaced or otherwise redeveloped. (v) In commercial and industrial districts except in the CD District and in areas designated as special study areas, additions of floor area designed and used solely for on-site employee amenities for employees of the facility, approved by the director of planning and community environment, upon the determination that such additions will facilitate the reduction of employee vehicle use. Such additions may include, but are not limited to, recreational facilities, credit unions, cafeterias, day care centers, automated teller machines, convenience stores, and on-site laundry facilities. dry cleaners. (C) Low Density Residential Inclusions and Conditions: In the RE and R-1 single-family residence districts and in the R-2 and RMD two-family residence districts, "gross floor area" means the total covered area of all of all floors of a main structure and accessory structures greater than one hundred and twenty square feet in area, including covered parking and stairways, measured to the outside of stud walls, including the following: (i) Floor area where the distance between the top of the finished floor and the roof directly above it measures seventeen feet or more shall be counted twice; (ii) Floor area where the distance between the top of the lowest finished floor and the roof directly above it measures twenty-six feet or more shall be counted three times; (iii) Carports and garages shall be included in gross floor area; (iv) The entire floor area (footprint) of a vaulted entry feature that extends above 12 feet measured from grade, whether enclosed or unenclosed, shall be counted twice in the calculation of gross floor area; (v) The footprint of a fireplace shall be included in the gross floor area, but is only counted one time; (vi) All roofed porches, arcades, balconies, porticos, breezeways or similar features when located above the ground floor and more than 50% covered by a roof or more than 50% enclosed shall be included in the calculation. (vii) Recessed porches on the ground floor extending in height above the first floor shall be included once in the calculation. (D) Low Density Residential Exclusions: In the RE and R-1 single-family residence districts and in the R-2 and RMD two-family residence districts, "gross floor area" shall not include the following: NOT YET APPROVED 151014 jb 0131490A 8 December 15, 2015 . . . (v) Open or partially enclosed (less than 50% enclosed) porches, whether recessed or protruding, located on the first floor, and for R-1 zones porches reaching a height of less than 12 feet measured from grade as set forth in Section 18.12.040(b), shall be excluded from gross floor area, whether covered or uncovered. Recessed porches located on the first floor with a depth of less than 10 feet shall be excluded from the calculation if the exterior side(s) of the porch is open. . . . (142) “Usable open space” means outdoor or unenclosed area on the ground, or on a roof, balcony, deck, porch, patio or terrace, designed and accessible for outdoor living, recreation, pedestrian access, or landscaping, but excluding parking facilities, driveways, utility or service areas. Usable open space may be covered if at least 50% open on the sides. Usable open space shall be sited and designed to accommodate different activities, groups, active and passive uses, and should be located convenient to the intended users (e.g., residents, employees, or public). . . . SECTION 7. Section 18.08.080 (Interpretation of Land Use Classifications) is added to Chapter 18.08 (Designation and Establishment of Districts) of Title 18 (Zoning) to read as follows: 18.08.080 Interpretation of Land Use Classifications The PCE Director shall have the authority to interpret whether a land use is similar to other permitted or conditionally permitted land uses listed in any Zoning District. Such interpretations may be appealed in accordance with Section 18.77.070(f). Staff shall prepare a quarterly Information Report to the Council summarizing all final interpretations made under this section. SECTION 8. Sections 18.10.040 (Development Standards) and 18.10.060 (Parking) of Chapter 18.10 (Low Density Residential RE, R-2 and RMD Districts) of Title 18 (Zoning) of the PAMC are amended to read as follows: 18.10.040 Development Standards . . . (h) Location of Noise-Producing Equipment All noise-producing equipment, such as air conditioners, pool equipment, generators, commercial kitchen fans, and similar service equipment, shall be located outside of the front, rear and side yard setbacks. Such equipment may, however, be located up to 6 feet into the street side yard setback. All such equipment shall be insulated and housed, except that the Planning Director may permit installation without housing and insulation, provided the equipment is located within the building envelope and where a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure NOT YET APPROVED 151014 jb 0131490A 9 December 15, 2015 compliance with the City's Noise Ordinance at the nearest property line. Any replacement of such equipment shall conform to this section where feasible; replacement of equipment for which permits were obtained prior to these restrictions is allowable in the same location provided the replacement equipment complies with the City’s noise ordinance. All service equipment must meet the City Noise Ordinance in Chapter 9.10 of this code. 18.10.060 Parking . . . (f) Design of Parking Areas Parking facilities shall comply with all applicable regulations of Chapter 18.83 18.54 (Parking Facility Design Standards). . . . SECTION 9. Sections 18.12.040 (Site Development Standards) (Tables 2 and 3), 18.12.050 (Permitted Encroachments, Projections and Exceptions), 18.12.060 (Parking), 18.12.070 (Second Dwelling Units), 18.12.090 (Basements), 18.12.100 (Regulations for the Single Story Overlay (S) Combining District), 18.12.110 (Single Family Individual Review), 18.12.120 (Home Improvement Exception) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the PAMC is amended to read as follows: 18.12.040 Site Development Standards . . . TABLE 2 R-1 RESIDENTIAL DEVELOPMENT STANDARDS R-1 R-1 Subdistricts Subject to Regulations in Chapter: R-1 (7,000) * R-1 (8,000) * R-1 (10,000) * R-1 (20,000) * * Subdistricts based on minimum lot size (sq. ft.) Minimum Site Specifications Site area (sq. ft.) All lots except flag lots (1) Flag lots Site Width (ft) Site Depth (ft) 6,000 7,000 8,000 10,000 20,000 As established by Section 21.20.301 (Subdivision Ordinance) 60 100 Maximum Lot Size Lot area (sq. ft.) 9,999 13,999 15,999 19,999 39,999 18.12.040(d) Minimum Setbacks Front Yard (ft.) Setback lines imposed by a special setback map pursuant to Chapter 20. 08 of this code may also apply 18.12.040(e) 18.12.050 Contextual (2) NOT YET APPROVED 151014 jb 0131490A 10 December 15, 2015 Rear Yard (ft.) Interior Side Yard (ft.) Street Side Yard (ft.) 20 6 8 16 Maximum Height (as measured to the peak of the roof) (ft.) Standard Maximum Height for buildings with a roof pitch of 12:12 or greater With (S) Combining 18.04.030(a)(67) 18.12.050 30 (3) 33 (3) 17 feet; limited to one habitable floor (4, 5) 18.12.100 Side Yard Daylight Plane (Excludes street side yards) Initial Height Angle (Degrees) 18.04.030(44) 18.12.050 10 feet at interior side lot line (6) 45 (6) Rear Yard Daylight Plane Initial Height Angle (Degrees) 18.12.050 16 feet at rear setback line (6) 60 (6) Maximum Site Coverage: Single story development With (S) Combining Multiple story development Additional area permitted to be covered by a patio or overhang 18.04.030(a)(86A) Equivalent to maximum allowable floor area ratio (7) Equivalent to maximum allowable floor area ratio (7) 35% (7) 5% Maximum Floor Area Ratio (FAR) First 5,000 sq. ft. of lot size Square footage of lot size in excess of 5,000 sq. ft. Table 3 18.04.030(a)(65C) 18.12.040(b) .45 .30 Maximum House Size (sq. ft.) 6,000 (8) Residential Density One unit, except as provided in Section 18.12.0970 Parking See Residential Parking, Section 18.12.060 Chs. 18.52, 18.54 . . . TABLE 3 SUMMARY OF GROSS FLOOR AREA FOR LOW DENSITY SINGLE FAMILY RESIDENTIAL DISTRICTS Description Included in GFA Excluded from GFA Accessory structures greater than 120 sq. ft. √ Second floor equivalent: areas with heights >17' √ (counted twice) Third floor equivalent: areas with heights > 26' √ (counted three times) NOT YET APPROVED 151014 jb 0131490A 11 December 15, 2015 Third floor equivalent, where roof pitch is > 4:12 √ up to 200 sq. ft. of unusable space Garages and carports √ Porte cocheres √ Entry feature < 12' in height, if not substantially enclosed and not recessed √ (counted once) Vaulted entry > 12' in height √ (footprint counted ti) Fireplace footprint √(counted once) First floor roofed or unenclosed porches √ First floor recessed porches <10' in depth and open on exterior side √ Second floor roofed or enclosed porches, arcades, balconies, porticos, breeze- ways √ Basements (complying with patio & lightwell requirements described in Section 18.12.070090) √ Areas on floors above the first floor where the height from the floor level to the underside of the rafter or finished roof surface is 5 or greater √ Bay windows (if at least 18" above interior floor, does not project more than 2', and more than 50% is covered by windows) √ Basement area for Category 1 & 2 Historic Homes or contributing structure within a historic district (even if greater than 3') √ Unusable attic space for category 1 & 2 Historic Homes √ (up to 500 sq. ft.) (c) Substandard and Flag Lots The following site development regulations shall apply to all new construction on substandard and flag lots in lieu of comparable provisions in subsection (a). . . . (2) Flag Lots . . . (B) Flag Lot Development Standards: (i) The maximum height shall be 17 feet, as measured to the peak of the roof. (ii) There shall be a limit of one habitable floor. Habitable floors include lofts, mezzanines, and similar areas with interior heights of five feet (5') or more from the roof to the floor, but exclude basements and exclude attics that have no stairway or built-in access. The chief building official shall make the final determination as to whether a floor is habitable. (iii) Front Setback: 10 feet. Flag lots are not subject to contextual front setback requirements. (iv) Flag lots are not subject to contextual front setback requirements. . . . (e) Contextual Front Setbacks The minimum front yard ("setback") shall be the greater of twenty feet (20') or the average setback, if the average front setback is 30 feet or more. "Average setback" means the NOT YET APPROVED 151014 jb 0131490A 12 December 15, 2015 average distance between the front property line and the first main structural element, including covered porches, on sites on the same side of the block, including existing structures on the subject parcel. This calculation shall exclude flag lots and existing multifamily developments of three units or more. For calculation purposes, if five (5) or more properties on the block are counted, the single greatest and the single least setbacks shall be excluded. The street sideyard setback of corner lots that have the front side of their parcel (the narrowest street-facing lot line) facing another street shall be excluded from the calculations. For blocks longer than 600 feet, the average setback shall be based on the no more than ten sites located on the same side of the street and nearest to the subject property, plus the subject site, but and for a distance no greater than 600 feet. Blocks with three (3) or fewer eligible parcels are not subject to contextual setbacks. Structures on the site in no case may be located closer than twenty feet (20') from the front property line. . . . (l) Location of Noise-Producing Equipment All noise-producing equipment, such as air conditioners, pool equipment, generators, commercial kitchen fans, and similar service equipment, shall be located outside of the front, rear and side yard setbacks. Such equipment may, however, be located up to six feet into a street sideyard setback. All such equipment shall be insulated and housed, except that the planning director may permit installation without housing and insulation, provided the equipment is located within the building envelope and where a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure compliance with the city's Noise Ordinance at the nearest property line. Any replacement of such equipment shall conform to this section where feasible, except the Director may allow replacement of existing equipment in a non-complying location, if such equipment had prior building permit(s), with equipment that meets the City’s Noise Ordinance. All service equipment must meet the city's Noise Ordinance in Chapter 9.10 of the Municipal Code. 18.12.050 Permitted Encroachments, Projections and Exceptions . . . (D) Special Setbacks. In cases where a special setback is prescribed pursuant to Chapter 20.08 of the Municipal Code, and the existing setback is less than the special setback distance, and at least 14 feet for the front setback or at least 10 feet for the street side yard setback, the existing encroachment may be extended for a distance of not more than 100% of the length of the encroaching wall to be extended, provided that the total length of the existing encroaching wall and the additional wall shall together not exceed one-half the maximum existing width of such building. . . . (3) Allowed Projections (A) Cornices, Eaves, Fireplaces, and Similar Architectural Features For cornices, eaves, fireplaces, and similar architectural features, excluding flat or continuous walls or enclosures of usable interior space, the following projections are permitted: NOT YET APPROVED 151014 jb 0131490A 13 December 15, 2015 (i) A maximum of two feet into a required side yard. Fireplaces in a required side yard may not exceed five feet in width. Fireplaces not exceeding five feet in width may project into a required side yard no more than two feet. (ii) A maximum of four feet into a required front yard. (iii) A maximum of four feet into a required rear yard. (B) Window Surfaces (i) Window surfaces, such as bay windows or greenhouse windows, may extend into a required rear yard a distance not to exceed two feet, into a required street side setback a distance not to exceed three feet, or into a required front yard a distance not to exceed three feet. (ii) Window surfaces may not extend into required interior side yards, with the exception that one greenhouse window with a maximum width of six feet, framed into a wall, may project into the interior side yard no more than two feet. The window surface may not extend into any yard above a first story. 18.12.060 Parking Off-street parking and loading facilities shall be required for all permitted and conditional uses in accord with Chapters 18.52 and 18.54 of this title. The following parking requirements apply in the R-E, R-2 and RMD R-1 districts. These requirements are included for reference purposes only, and in the event of a conflict between this Section 18.1012.060 and any requirement of Chapters 18.52 and 18.54, Chapters 18.52 and 18.54 shall apply, except in the case of parcels created pursuant to Section 18.10.130 18.12.140 (c) (subdivision incentive for historic preservation). . . . 18.12.070 Second Dwelling Units . . . (c) Development Standards for Attached Second Dwelling Units Attached second dwelling units are those attached to the main dwelling. Attached unit size counts toward the calculation of maximum house size. All attached second dwelling units shall be subject to the following development requirements: (1) The minimum site area shall meet the requirements specified in subsection (b) above. (2) Maximum size of living area: 450 square feet. The second dwelling unit and covered parking shall be included in the total floor area for the site, but the covered parking area is not included in the maximum 450 square feet for attached unit. Any basement space used as a second dwelling unit or portion thereof shall be counted as floor area for the purpose of calculating the maximum size of the second unit. (3) Maximum size of covered parking area for the second dwelling unit: 200 square feet. NOT YET APPROVED 151014 jb 0131490A 14 December 15, 2015 . . . (d) Development Standards for Detached Second Dwelling Units Detached second dwelling units are those detached from the main dwelling. All detached second dwelling units shall be subject to the following development requirements: (1) The minimum site area shall meet the requirements specified in subsection (b) above. (2) Minimum separation from the main dwelling: 12 feet. (3) Maximum size of living area: 900 square feet. The second dwelling unit and covered parking shall be included in the total floor area for the site, but the covered parking area is not included within the maximum 900 square feet for detached unit. Any basement space used as a second dwelling unit or portion thereof shall be counted as floor area for the purpose of calculating the maximum size of the second unit. (4) Maximum size of covered parking for the second dwelling unit: 200 square feet. . . . 18.12.100 Regulations for the Single Story Overlay (S) Combining District . . . (c) Application for a Single Story (S) Combining District (1) Application to create or remove a single-story overlay district may be made by an owner of record of property located in the single-story overlay district to be created or removed. (2) Application shall be made to the director on a form prescribed by the director, and shall contain all of the following: (A) A written statement setting forth the reasons for the application and all facts relied upon by the applicant in support thereof. (B) A map of the district to be created or removed that includes the address location of those owners whose properties are subject to the zoning request. Boundaries shall correspond with certain natural or man-made features (including, but not limited to, roadways, waterways, tract boundaries and similar features) to define an identifiable neighborhood or development. For creation of a single-story overlay district, the area shall be of a prevailing single story character, such that a minimum of 80% of existing homes within the boundaries are single story. (C) For creating a single-story overlay district, a list of signatures evidencing support by: (i) 70% of included properties; or (ii) 60% of included properties where all included properties are subject to recorded deed restrictions intended to limit building height to a single story, whether or not such restrictions have been enforced. For the removal of a single-story overlay district, a list of signatures evidencing support by 70% of included properties, whether or not deed restrictions intended to limit the building height to NOT YET APPROVED 151014 jb 0131490A 15 December 15, 2015 single story apply. "Included properties" means all those properties inside the boundaries of the district proposed to be created or removed. The written statement or statements accompanying the signatures must state that the signer is indicating support for a zone map amendment that affects his or her property. One signature is permitted for each included property, and a signature evidencing support of an included property must be by an owner of record of that property. (D) A fee, as prescribed by the municipal fee schedule, no part of which shall be returnable to the applicant. . . . 18.12.120 Home Improvement Exception (a) Purpose A home improvement exception ("HIE") enables a home improvement or minor addition to an existing single-family or two-family home, or accessory structure, or both, to be consistent with the existing architectural style of the house or neighborhood, to accommodate a significant or protected tree, or to protect the integrity of a historic structure in conformance with the Secretary of the Interior's Standards for Historic Rehabilitation. By enabling adaptive reuse of existing buildings, the home improvement exception promotes retention of existing houses within the city. (b) Applicability A home improvement exception may be granted as part of a proposed improvement or addition to an existing single-family or two-family structure, or accessory structure, or both, in the RE, R-1, RMD, or R-2 district, as limited in subsection (c). A home improvement exception may be granted as described in subsections (1) through (14) of subsection (c), but may not exceed the limits set forth in those subsections. In order to qualify for a home improvement exception, the project must retain at least 75% of the existing exterior walls, including exterior finishes such as siding or cladding. … SECTION 10. Sections 18.13.010 (Purposes), and 18.13.050 (Village Residential Development) of Chapter 18.13 (Multiple Family Residential RM-15, RM-30, and RM-40 Districts) of Title 18 (Zoning) of the PAMC are amended to read as follows: 18.13.010 Purposes This section specifies regulations for three multiple family residential districts. (a) RM-15 Low Density Multiple-Family Residence District [RM-15] The RM-15 low-density multiple-family residence district is intended to create, preserve and enhance areas for a mixture of single-family and multiple-family housing which is compatible with lower density and residential districts nearby, including single-family residence districts. The RM-15 residence district also serves as a transition to moderate density multiple- NOT YET APPROVED 151014 jb 0131490A 16 December 15, 2015 family districts or districts with nonresidential uses. Permitted densities in the RM-15 residence district range from eight to fifteen dwelling units per acre, with no required minimum density. (b) RM-30 Medium Density Multiple-Family Residence District [RM-30] The RM-30 medium density multiple-family residence district is intended to create, preserve and enhance neighborhoods for multiple-family housing with site development standards and visual characteristics intended to mitigate impacts on nearby lower density residential districts. Projects at this density are intended for larger parcels that will enable developments to provide their own parking spaces and to meet their open space needs in the form of garden apartments or cluster developments. Permitted densities in the RM-30 residence district range from sixteen to thirty dwelling units per acre, with no required minimum density. (c) RM-40 High Density Multiple-Family Residence District [RM-40] The RM-40 high density multiple-family residence district is intended to create, preserve and enhance locations for apartment living at the highest density deemed appropriate for Palo Alto. The most suitable locations for this district are in the downtown area, in select sites in the California Avenue area and along major transportation corridors which are close to mass transportation facilities and major employment and service centers. Permitted densities in the RM-40 residence district range from thirty-one to forty dwelling units per acre, with no required minimum density. 18.13.050 Village Residential Development . . . TABLE 3 VILLAGE RESIDENTIAL DEVELOPMENT TABLE Village Residential Subject to Regulations in: Minimum Site Specifications Site Area (ft2) 6,000 Site Width (ft) 50 Site Depth (ft) 100 Minimum Setbacks RM-15 development standards apply to perimeter of site Minimum Lot Specifications (1) 1,500 Lot Area (ft2), Attached Units Lot Area (ft2), Detached Units 2,500 Maximum Lot Area (ft2) 4,000 Front lot setback (ft) 5 Rear lot setback (ft) 3 Side lot setback (ft) 0 Distance between detached units (ft) 3 Maximum House Size (ft 2) 2,500(2) Maximum Height (ft ) 30 NOT YET APPROVED 151014 jb 0131490A 17 December 15, 2015 Daylight Planes RM-15 development standards apply to perimeter of site Maximum Site Cove rage RM-15 development standards apply to entire site Maximum Floor Area Ratio (FAR)(3) 0.5:1 applied to entire site Maximum Residential Density (units ) Maximum number of units per acre 12 Minimum Site Open Space (4) 35% of entire site 18.13.040(e) Minimum Usable Open Space (per unit)(3) 300 sq. ft. Minimum common open space (per unit) No requirement 18.13.040(e) Minimum private open space (per unit) 100 sq. ft. Performance Criteria Ch. 18.23 Landscape Requirements 18.1440.130 Parking(5) See provisions of Chapter 18.52 Ch. 18.52 . . . SECTION 11. Section 18.14.030 (Below Market Rate Housing Bonus Requirements) of Chapter 18.14 (Below Market Rate Housing Program) of Title 18 (Zoning) of the PAMC is amended to read as follows: (a) Developers of projects with five or more units must comply with the requirements set forth in Program H-36 H3.1.2 of the City of Palo Alto Comprehensive Plan. The BMR Program objective is to obtain actual housing units or buildable parcels within each development rather than off-site units or in-lieu payments. . . . SECTION 12. Section 18.15.020 (Definitions) of Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows: 18.15.020 Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: . . . (s) “Replace” means either of the following: (1) If any dwelling units described in 18.15.030(h) are occupied on the date that the application is submitted to the City, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in 18.15.030(h) in a development with occupied units, the proposed housing development shall NOT YET APPROVED 151014 jb 0131490A 18 December 15, 2015 provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. (2) If all dwelling units described in 18.15.030(h) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. (st) “Restricted affordable unit” means a dwelling unit within a development which will be available at an affordable rent or affordable sales price for sale or rent to very low, lower or moderate income households. (tu) “Senior citizen housing development” means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been “designed to meet the physical and social needs of senior citizens,” and which otherwise qualifies as “housing for older persons” as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. SECTION 13. Sections 18.15.030 (Density Bonuses), 18.15.040 (Development Standards for Affordable Units), and 18.15.100 (Regulatory Agreement) of Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: 18.15.030 Density Bonuses . . . (h) An applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price NOT YET APPROVED 151014 jb 0131490A 19 December 15, 2015 control through the City’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies: (i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 18.15.030. (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. (hi) Certain other types of development activities are specifically eligible for a density bonus pursuant to state law: (i) A development may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (ii) A condominium conversion may be eligible for a density bonus or concession pursuant to the requirements set forth in Government Code Section 65915.5. (ij) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part of the rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone. (jk) Notwithstanding any provision of this chapter, all developments must satisfy all applicable requirements of the city’s Below Market Rate Housing Program, which may impose requirements for restricted affordable units in addition to those required to receive a density bonus or concessions. . . . 18.15.040 Development Standards for Affordable Units . . . (b) Moderate income restricted affordable units shall remain restricted and affordable to the designated income group for a minimum period of 559 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very low and lower restricted affordable units shall remain restricted and affordable to the designated income group for a period of 30 55 years for both rental and for-sale units (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). . . . 18.15.050 Development Concessions and Incentives This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915. NOT YET APPROVED 151014 jb 0131490A 20 December 15, 2015 (a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. (b) Additional parking incentives for transit oriented projects. (i) Notwithstanding paragraph (a) above, if a development includes the maximum percentage of low- or very low income units provided for in section 18.15.030(b) and is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, then, upon request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments. (ii) Notwithstanding paragraph (a) above, if a development consists solely of rental units, exclusive of a manager’s unit, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios: (A) If the development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit. (B) If the development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (C) If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. NOT YET APPROVED 151014 jb 0131490A 21 December 15, 2015 (iii) Notwithstanding paragraphs (i) and (ii), the city may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (a) if the city has conducted an area wide or citywide parking study in compliance with Government Code Section 65915(p)(7). (bc) Other incentives and concessions. A development is eligible for other concessions or incentives as follows: . . . 18.15.100 Regulatory Agreement . . . (d) The regulatory agreement shall be consistent with the guidelines of the city’s Below Market Rate Program and shall include at a minimum the following: . . . (iv) Term of use restrictions for restricted affordable units of at least 559 years for moderate income units and at least 30 55 years for low and very low units; . . . SECTION 14. Sections 18.16.050 (Office Use Restrictions) and 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: 18.16.050 Office Use Restrictions The following restrictions shall apply to office uses: (a) (a) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional, and Business offices shall not be located on the ground floor, unless any of the following apply to such officessuch offices either: (1) Have been continuously in existence in that space since March 19, 2001, and as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter 18.30(I); (2) Occupy a space that was not occupied by housing, neighborhood business service, retail services, personal services, eating and drinking services, or automotive service on March 19, 2001 or thereafter; (3) In the case of CS zoned properties with site frontage on El Camino Real, were not occupied by housing on March 19, 2001; (4) Occupy a space that was vacant on March 19, 2001; (5) Are located in new or remodeled ground floor area built on or after March 19, 2001 if the ground floor area devoted to housing, retail services, eating and drinking services, personal services, and automobile services does not decrease; NOT YET APPROVED 151014 jb 0131490A 22 December 15, 2015 (6) Are on a site located in an area subject to a specific plan or coordinated area plan, which specifically allows for such ground floor medical, professional, and general business offices; or (7) Are located anywhere in Building E or in the rear 50% of Building C or D of the property at the southeast corner of the intersection of Park Boulevard and California Avenue, as shown on sheet A2 of the plans titled “101 California Avenue Townhouse/Commercial/Office, Palo Alto, CA” by Crosby, Thornton, Marshall Associates, Architects, dated June 14, 1982, revised November 23, 1982, and on file with the Department of Planning and Community Environment. . . . 18.16.060 Development Standards . . . (b) Mixed Uses . . . (9) Residential densities up to 20 units/acre only on CN zoned Hhousing iInventory sSites identified in the Housing Element.2007-2014 2014 Housing Element (1) Residential and nonresidential mixed use projects shall be subject to site and design review in accord with Chapter 18.30(G), except that mixed use projects with four nine or fewer units shall only require review and approval by the architectural review board. . . . SECTION 15. Sections 18.18.060 (Development Standards), 18.18.070 (Floor Area Bonuses, 18.18.080 (Transfer of Development Rights), and 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the PAMC are amended to read as follows: 18.18.060 Development Standards (a) Exclusively Non-Residential Use . . . Table 2 Exclusively Non-Residential Development Standards CD-C CD-S CD-N Subject to regulations in Section: Minimum Setbacks Front Yard (ft) Rear Yard (ft) Interior Side Yard (ft) Street Side Yard (ft) Minimum street setback for sites sharing a common block face with any abutting Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply None required 10’ (1) None required None required None required 20’ (1) -(4) -(4) -(4) NOT YET APPROVED 151014 jb 0131490A 23 December 15, 2015 residential zone district Minimum yard (ft) for lot lines abutting 10’(1) 10’(1) 10’(1) Maximum Site Coverage None Required 50% Maximum Height (ft ) Standard Within 150 ft. of an abutting residential zone district 50 50 25 – (3) – (3) – (3) Maximum Floor Area Ratio (FAR) 1.0:1 (5) 0.4:1 (5) 0.4:1 (5) 18.18.060(e) 18.18.070 Maximum Floor Area Ratio (FAR) for Hotels 2.0:1 2.0:1 N/A 18.18.060(d) Maximum Size of New Non-Residential Construction or Expansion Projects 25,000 square feet of gross floor area or 15,000 square feet above the existing floor area, whichever is greater, provided the floor area limits set forth elsewhere in this chapter are not exceeded Daylight Plane for lot lines abutting one or more residential zone districts. Initial Height at side or rear lot line Slope – (2) 10 10 – (2) 1:2 1:2 . . . (b) Mixed Use . . . (4) For sites abutting an RM-40 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet. (1) Residential and nonresidential mixed use projects shall be subject to site and design review in accord with Chapter 18.30(G), except that mixed use projects with four or fewer nine or fewer units shall only require review and approval by the architectural review board. . . . (e) Exempt Floor Area When an existing building is being expanded, square footage which, in the judgement of the chief building official, does not increase the usable floor area, and is either necessary to conform the building to Title 24 of the California Code of Regulations, regarding disability relatedhandicapped access, or is necessary to implement the historic rehabilitation of the building, shall not be counted as floor area. For the purposes of this section disability related upgrades are limited to the incremental square footage necessary to accommodate disability access minimum extent necessary and shall be subject to the Director’s approval not to exceed 500 square feet per site. Disability related upgrades shall only apply to remodels of existing buildings and shall not qualify for grandfathered floor area in the event the building is later replaced or otherwise redeveloped. . . . NOT YET APPROVED 151014 jb 0131490A 24 December 15, 2015 18.18.080 Transfer of Development Rights . . . (h) Transfer Procedure Transferable development rights may be transferred from a sender site (or sites) to a receiver site only in accordance with all of the following requirements: (1) An application pursuant to Chapter 16.48 Chapter 18.76 of this code for major ARB review of the project proposed for the receiver site must be filed. The application shall include: (A) A statement that the applicant intends to use transferable development rights for the project; (B) Identification of the sender site(s) and the amount of TDRs proposed to be transferred; and (C) Evidence that the applicant owns the transferable development rights or a signed statement from any other owner(s) of the TDRs that the specified amount of floor area is available for the proposed project and will be assigned for its use. (2) The application shall not be deemed complete unless and until the city determines that the TDRs proposed to be used for the project are available for that purpose. (3) In reviewing a project proposed for a receiver site pursuant to this section, the architectural review board shall review the project in accordance with Section 16.48.120 Chapters 18.76 and 18.77 of this code; however, the project may not be required to be modified for the sole purpose of reducing square footage unless necessary in order to satisfy the criteria findings for approval under Chapter 16.4818.76 or any specific requirement of the municipal code. (4) Following ARB approval of the project on the receiver site, and prior to issuance of building permits, the director of planning and community environment or the director’s designee shall issue written confirmation of the transfer, which identifies both the sender and receiver sites and the amount of TDRs which have been transferred. This confirmation shall be recorded in the office of the county recorder prior to the issuance of building permits and shall include the written consent or assignment by the owner(s) of the TDRs where such owner(s) are other than the applicant. 18.18.120 Grandfathered Uses and Facilities (a) Grandfathered Uses (1) The following uses and facilities may remain as grandfathered uses, and shall not require a conditional use permit or be subject to the provisions of Chapter 18.70: (A) Any use which was being conducted on August 28, 1986; or NOT YET APPROVED 151014 jb 0131490A 25 December 15, 2015 (B) A use not being conducted on August 28, 1986, if the use was temporarily discontinued due to a vacancy of 6 months or less before August 28, 1986; or (C) Any office use existing on April 16, 1990 on a property zoned CD and GF combining, which also existed as a lawful conforming use prior to August 28, 1986, notwithstanding any intervening conforming use. (2) The grandfathered uses in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the buildingshift the building footprint; (C) shall not result in an increase of the height, length, building envelope, building footprint or any other increase in the size of the improvement. For purposes of this section, “building envelope” shall mean the three dimensional shape and size occupied by an existing building. It is not the maximum, buildable potential of the site; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; or (E) in the case of medical, professional, general business or administrative office uses of a size exceeding 5,000 square feet in the CD-S or CD-N district that are deemed grandfathered pursuant to subsection (1), such remodeling, improvement, or replacement shall not result in increased floor area devoted to such office uses. (F) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. (3) If a grandfathered use deemed existing pursuant to subsection (1) ceases and thereafter remains discontinued for 12 consecutive months, it shall be considered abandoned and may be replaced only by a conforming use. (4) A use deemed grandfathered pursuant to subsection (1) which is changed to or replaced by a conforming use shall not be reestablished, and any portion of a site or any portion of a building, the use of which changes from a grandfathered use to a conforming use, shall not thereafter be used except to accommodate a conforming use. (b) Grandfathered Facilities NOT YET APPROVED 151014 jb 0131490A 26 December 15, 2015 (1) Any noncomplying facility existing on August 28, 1986 and which, when built, was a complying facility, may remain as a grandfathered facility and shall not be subject to the provisions of Chapter 18.70. (2) The grandfathered facilities in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not shift the relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint, or any other increase in the size of the improvement. (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; (E) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. SECTION 16. Section 18.20.040 (Standards for GM, MOR, ROLM, RP Zones) of Chapter 18.20 (Office, Research and Manufacturing (MOR, ROLM, RP and GM) Districts of Title 18 (Zoning) of the PAMC shall be amended as follows: 18.20.040 Site Development Standards . . . (a) Development Standards for Non-Residential Uses Table 2 shows the site development standards for exclusively non-residential uses in the industrial and manufacturing districts. TABLE 2 INDUSTRIAL/MANUFACTURING NON-RESIDENTIAL SITE DEVELOPMENT STANDARDS MOR ROLM ROLM (E) RP RP(5) GM Subject to Regulations in Chapter: Minimum Site Specifications Site Area (sq. ft.) 25,000 1 acre 1 acre 5 acres 1 Site Width (ft.) 150 100 100 250 Site Depth (ft.) 150 150 150 250 Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply. Front Yard (ft) 50(3) 20 20 100 (1) NOT YET APPROVED 151014 jb 0131490A 27 December 15, 2015 Rear Yard (ft) 10(3) 20 20 40 Interior Side Yard (ft) 10 20 20 40 Street Side Yard (ft) 20(3) 20 20 70 Minimum Yard (ft) for site lines abutting or opposite residential districts 10(3) 20 20 . 10 18.20.060(e)(1)(D) 18.20.060(e)(1)(E) Maximum Site Coverage 30% 30% 30% 15% Maximum Floor Area Ratio (FAR) 0.5:1 0.4:1(4) 0.3:1(4) 0.4:1 W 0.3:1(4) 0.5:1 Parking See Chs. 18.40, 18.42 18.52, 18.54 Chs. 18.40, 18.42 18.52, 18.54 Landscaping See Section 18.20.050 (Performance Criteria) 18.20.050 Maximum Height (ft) Standard 50 35(4) 35(4) 50 Within 150 ft. of a residential zone<5) 35 35 35 35 Within 40 ft. of a residential zone(5) 35 25 25 35 Daylight Plane for site lines having any part abutting one or more residential districts. Initial Height - (2) 10 Slope -(2) 1:2 . . . SECTION 17. Section 18.23.050 (Visual, Screening and Landscaping) of Chapter 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts is amended as follows: . . . (B) Requirements (i) Walls facing residential properties shall incorporate architectural design features and landscaping in order to reduce apparent mass and bulk. (ii) Loading docks and exterior storage of materials or equipment shall be screened from view from residential properties by fencing, walls or landscape buffers. (iii) All required interior yards (setbacks) abutting residential properties shall be planted and maintained as a landscaped screen. (iv) Rooftop equipment or rooftop equipment enclosures shall not extend above a height of 15 feet above the roof and any enclosed rooftop equipment nearest residential property shall be set back at least 20 feet from the building edge closest to the residential NOT YET APPROVED 151014 jb 0131490A 28 December 15, 2015 property or a minimum of 100 feet from the residential property line, whichever is closer. Roof vents, flues and other protrusions through the roof of any building or structure shall be obscured from public view by a roof screen or proper placement. See Section 18.40.090 (height limit exceptions) for further restrictions. SECTION 18. Chapter 18.31 (CEQA Review) of Title 18 (Zoning) of the Palo Alto Municipal Code is adopted as a new chapter to read as follows: 18.31.010 Delegation of CEQA Authority The PCE Director or other decision maker as delegated in this Code shall have authority to make California Environmental Quality Act (CEQA) decisions relating to planning and land use entitlements, except that any Environmental Impact Report requiring a statement of overriding considerations shall be considered by the City Council. For projects requiring a statement of overriding considerations, the PCE Director shall refer any action on the entitlements to the City Council. 18.31.020 Incorporation of State CEQA Guidelines Resolution No. 6232 is hereby repealed and the full text of the State CEQA Guidelines adopted as 14 California Code of Regulations, Title 14, Section 15000, et seq., and any subsequent amendments thereto, are hereby incorporated by reference into this Chapter. If there is a conflict between the procedural provisions of the State Guidelines and this Chapter, the more restrictive provision shall apply. 18.31.030 CEQA Appeals Any person may appeal to the City Council from the decision of a non-elected decision- making body of the City to certify an environmental impact report, approve a negative declaration or mitigated negative declaration or determine that a project is not subject to Public Resources Code Section 21080 et seq. (California Environmental Quality Act) if that decision is not otherwise subject to further administrative review. Any such appeal must be filed on a form specified by the Director and must be filed within the same time period governing appeals of the underlying entitlement decision or within fourteen consecutive calendar days of the date that the environmental decision is made, if there is no appeal of the entitlement. The appellant shall state the specific reasons for the appeal. The appeal must be accompanied by the required filing fee. SECTION 19. Section 18.34.040 (Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations) of Chapter 18.34 (Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: 18.34.040 Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations . . . (e) Density, FAR, and Height Bonus Provisions NOT YET APPROVED 151014 jb 0131490A 29 December 15, 2015 The following provisions are intended to allow for increased density, FAR, height, and other development bonuses upon construction of additional below market rate (BMR) housing units. The bonus allowances shall be allowed subject to the following limitations: (1) Bonuses are only applicable where below market rate (BMR) units are provided in excess of those required by Palo Alto's BMR program as set forth in Section 18.14.030(a) andstated in Program H-3.1.26 of the Housing Element adopted on December 2, 2002. Key elements of the BMR Program H-36 include: (A) Five or more units: Minimum 15% of units must be BMR units; (B) Five or more acres being developed: Minimum 20% of units must be BMR units; and (C) BMR units shall meet the affordability and other requirements of Program H- 36 H-3.1.2 and the city's BMR Program policies and procedures. (2) The following BMR bonuses shall be considered and may be approved upon rezoning to the PTOD district: (A) Density Increase: Density may be increased above the maximum base density allowed (40 units per acre), such that at least one additional BMR unit is provided for every three additional market rate units constructed. The resultant density may not exceed fifty units per acre. Density shall be calculated based on the gross area of the site prior to development. (B) FAR Increase: For projects with a residential density greater than thirty units per acre, the allowable residential FAR may be increased. The FAR increase shall be equivalent to 0.05 for each additional 5% (in excess of the city requirements) of the total number of units that are proposed as BMR units, but may not exceed 50% of the residential FAR prior to the bonus, and may not exceed a total FAR of 1.5. (C) Height Increase: For projects with a residential density greater than 30 units per acre, the allowable project height may be increased. The height increase shall be equivalent to one foot above the maximum for each additional 5% (in excess of the city requirements) of the total number of units that are proposed as BMR units, but may not exceed a maximum height (50 feet). (D) Other incentives for development of BMR units, such as reduced setbacks and reduced open space, may be approved where at least 25% of the total units constructed are BMR units and subject to approval by the architectural review board. (3) The provisions of this section are intended to address the density bonus requirements of state law within the PTOD District, and the maximum bonus density, FAR, and height may not be further exceeded. The provisions of this section are intended to address the density bonus requirements of state law within the PTOD District. The maximum bonus density available under this section shall be the greater of the bonus density allowed under this chapter or under the city’s density bonus provisions contained in Chapter 18.15. SECTION 20. Sections 18.40.030 (Measurement), 18.40.70 (Projections into Yards) and 18.40.090 Height Exceptions) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of PAMC are amended to read as follows: NOT YET APPROVED 151014 jb 0131490A 30 December 15, 2015 18.40.030 Measurement. Distances between buildings, or between any structure and any property line, setback line, or other line or location prescribed by this title shall be measured to the nearest vertical support or wall of such structure. Where one or more buildings do not have vertical exterior walls, the distances between the buildings shall be prescribed by the building official. In the application of measurements specified by this title in both English and metric measure, metric measure shall be applied for all new construction; provided, that where existing structures, uses, areas, heights, dimensions, or site improvements have been based upon English measures, the exact metric equivalent of the English measures prescribed by this title may continue to be used for improvements, extensions, and revisions to such facilities or uses. It is the purpose of this title to facilitate conversion from English to metric measures with minimum impact on property and improvements and changes thereto, and the building official, director, director of planning and community environment and other persons responsible for interpretation and enforcement of this title shall, in case of conflict or difference between English and metric measurements, apply the provisions of this title in the less restrictive manner of this section 18.40.070 Projections into Yards The director may grant a temporary use permit authorizing the use of a site in any district for a temporary use, subject to the following provisions. . . . SECTION 21. Sections 18.52.060 (Parking Assessment Districts and Areas - General) and 18.52.070 (Parking Regulations for CD Assessment District) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the PAMC are amended to read as follows: 18.52.060 Parking Assessment Districts and Areas - General . . . (b) In-lieu fees Except as provided in subsection (c) below, wWithin any parking assessment district established by the city for the purpose of providing off-street parking facilities, all or a portion of the off- street parking requirement for a use may be satisfied by payment of assessments or fees levied by such district on the basis of parking spaces required but not provided. 18.52.070 Parking Regulations for CD Assessment District With respect to on-site and off-site parking space requirements for nonresidential uses within an assessment district wherein properties are assessed under a Bond Plan G financing pursuant to Title 13, the requirements of this Section 18.52.040 shall apply in the CD Assessment district in lieu of comparable requirements in this Chapter 18.52. Requirements for the size and other design criteria for parking spaces shall continue to be governed by the provisions of Chapter 18.54. . . . NOT YET APPROVED 151014 jb 0131490A 31 December 15, 2015 SECTION 22. Sections 18.70.010 (General Application) and 18.70.080 (Noncomplying Facility Enlargement) of Chapter 18.70 (Nonconforming Uses and Noncomplying Facilities) of the PAMC are amended to read as follows: 18.70.010 General application. Except as provided by this chapter Title or otherwise provided by law, a nonconforming use may be continued, and a structure containing or used by one or more nonconforming uses may be maintained, or a noncomplying facility may be maintained. A nonconforming use is a use which existed legally under the provisions of its zoning classification prior to a rezoning action or annexation which rendered such use not in conformance with the provisions of such new zoning classification. A noncomplying facility is a facility which existed legally under the provisions of its zoning classification prior to a rezoning action or annexation which rendered such facility not in compliance with the provisions of such new zoning classification. 18.70.080 Noncomplying facility - Enlargement. (a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. (b) Except in areas designated as special study areas, the director of planning and community environment may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following: (1) Amenity space area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias, on-site laundry facilities, and daycare facilities. (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and (3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades. . . . SECTION 23. Section 18.76.020 (Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of PAMC is amended to read as follows: 18.76.020 Architectural Review NOT YET APPROVED 151014 jb 0131490A 32 December 15, 2015 . . . (b) Applicability . . . (2) Major Projects. The following are "major projects" for the purposes of the architectural review process set forth in Section 18.77.070, and are subject to review by the architectural review board: . . . (E) Any project using transferred development rights, as described in Chapter 18.87 18.18. . . . SECTION 24. Sections 18.77.060 (Standard Staff Review Process), 18.77.070 (Architectural Review Process), and 18.77.075 (Low-Density Residential Review Process) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) the Palo Alto Municipal Code are amended to read as follows: 18.77.060 Standard Staff Review Process . . . (f) Decision by the Council The recommendation of the planning and transportation commission on the application shall be placed on the consent calendar of the council within 30 45 days. The council may: (1) Adopt the findings and recommendation of the planning and transportation commission; or (2) Remove the recommendation from the consent calendar, which shall require three votes, and direct that the application be set for a new noticed hearing before the city council, following which the city council shall adopt findings and take action on the application. (A) Discuss the application and adopt findings and take action on the application based upon the evidence presented at the hearing of the planning and transportation commission; or (B) Direct that the application be set for a new hearing before the city council, following which the city council shall adopt findings and take action on the application. . . . 18.77.070 Architectural Review Process . . . (d) Decision by the Director Upon receipt of a recommendation of the architectural review board: (1) Within 3 5 working days, the director shall prepare a written decision to approve the application, approve it with conditions, or deny it. NOT YET APPROVED 151014 jb 0131490A 33 December 15, 2015 . . . (f) Decision by the City Council The appeal of the director's decision shall be placed on the consent calendar of the city council within 30 45 days. The city council may: (1) Adopt the findings and decision of the director; or (2) Remove the appeal from the consent calendar, which shall require three votes, and direct that the appeal be set for a new noticed hearing before the city council, following which the city council shall adopt findings and take action on the application. (A) Discuss the appeal and adopt findings and take action on the appeal based upon the evidence presented at the hearing of the architectural review board; or (B) Direct that the appeal be set for a new hearing before the city council, following which the city council shall adopt findings and take action on the application. . . . 18.77.075 Low-density Residential Review Process . . . (f) Final Director’s Decision . . . (g) Decision by the City Council If a timely appeal is received by the City, the director's decision on the application shall be placed on the consent calendar of the city council within 30 45 days. The city council may: (1) Adopt the findings and recommendation of the director; or (2) Remove the recommendation from the consent calendar, which shall require four three votes, and direct that the application be set for a new noticed hearing before the city council, following which the city council shall adopt findings and take action on the application. set the application for a new hearing before the city council, following which the city council shall adopt findings and take action on the application. . . . SECTION 25. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 26. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. NOT YET APPROVED 151014 jb 0131490A 34 December 15, 2015 SECTION 27. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b) and 15301, 15302 and 15305 because it simply provides a comprehensive permitting scheme. SECTION 28. This ordinance shall not apply to any planning or land use applications deemed complete as of the effective date of this ordinance. SECTION 29. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Planning & Community Environment CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting December 7, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:06 P.M. Present: Berman, DuBois, Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Burt Study Session 1.Prescreening of a Proposed Hotel Development at 744-750 San Antonio Road. Special Orders of the Day 2.Fire Safety Month Poster Award Recognition to Palo Alto Unified School District Students for Excellence in Design, Art and Messaging. Agenda Changes, Additions and Deletions None. Consent Calendar MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to approve Agenda Item Numbers 3-9 and continue Agenda Item Number 10- Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement… to December 14, 2015. 3.Resolution 9563 Entitled, “Resolution of the Council of the City of Palo Alto Summarily Vacating Public Easement at 3264 Kipling Avenue.” Attachment B DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 12/7/15 4. Resolution 9564 Entitled, “Resolution of the Council of the City of Palo Alto Summarily Vacating Public Easement at 4252 Manuela Court.” 5. Adoption of an Ordinance to add Chapter 10.51 to the Palo Alto Municipal Code to Permanently Implement the Crescent Park No Overnight Parking Program and Expand the Boundaries of the Program. 6. Approve Amendment Number One to Contract Number C1415263 With Townsend Public Affairs to add 24 Months of Service at a Cost of $8,500 per Month, Totaling $204,000, for a Total Contract Amount not to Exceed $391,000 for State Legislative Advocacy Services. 7. Budget Amendment Ordinance 5365 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto to Appropriate $203,561 From the Residential Housing Fund for Rehabilitation of the Colorado Park Apartments Consistent With Prior Loan Approval.” 8. Adoption of an Ordinance Re-Titling and Amending Municipal Code Chapter 5.30 (Plastic Foam and Non-Recyclable Food Service Containers and Packaging Items) to Prohibit Sale of Non-Recyclable Plastic Foam at Retail Establishments Such as Grocery Stores, Pharmacies, Mail Service Stores and Hardware Stores. 9. Resolution 9565 Entitled, “Resolution of the Council of the City of Palo Alto Revising the Citywide Records Retention Schedule and Repealing Resolution No. 8688.” 10. Approval of Amendment Number Three to the Palo Alto-Stanford Fire Protection Agreement With the Board of Trustees of the Leland Stanford Junior University Extending the Term for One Year for a Total Fee of $6.5 Million, and Approval of a Related Budget Amendment Ordinance Reducing the General Fund Budget Stabilization Reserve by $675,000 to Offset a Reduction in FY 2016 Fire Department Revenues. MOTION PASSED: 7-0 Scharff not participating, Burt absent Action Items 11. PUBLIC HEARING: Review and Adoption of an Ordinance to Amend Land Use Related Portions of Titles 16 and 18 of the Palo Alto DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 12/7/15 Municipal Code. The Purposes of the Code Amendments and Additions are to: (1) Improve the Use and Readability of the Code, (2) Clarify Certain Code Provisions, and (3) Align Regulations to Reflect Current Practice and Council Policy Direction. The Affected Chapters of Title 16 Include but are not Limited to Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement), 18.04 (Definitions), 18.08 (Designation and Establishment of Districts), 18.10 (Low Density Residential RE, R- 2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential (RM-15, RM-30, RM-40) Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial (CN,CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts)), 18.20 (Office, Research and Manufacturing (MOR, ROLM, RP and GM) Districts), 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new Chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Non-conforming Uses and Non-complying Facilities), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals). Public Hearing opened at 7:14 P.M. Public Hearing closed at 7:26 P.M. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to adopt Ordinance Sections 1-3, modifying Municipal Code Title 16 (Group 1 Interpretations of 16.20 (Signs)). MOTION PASSED: 8-0 Burt absent MOTION: Council Member DuBois moved, seconded by Council Member Wolbach to adopt Ordinance changes in Group 2 with Staff’s suggested changes to American’s with Disabilities Act (ADA) language, and with changes to Zoning Code Interpretation and Interpretation of Land Uses in order to include a process to bring changes to Council quarterly for approval. DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 12/7/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “bring changes to Council quarterly for approval” with “bring an Information Report to Council quarterly.” AMENDMENT: Mayor Holman moved, seconded by Council Member XX to add to the Motion, when a project Staff Report is written that requires a formal written interpretation as referenced in Municipal Code Section 18.01.025 the description of that determination shall be called out in the Staff Report. AMENDMENT WITHDRAWN BY THE MAKER MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Berman to adopt Ordinance Sections 10-13, modifying Municipal Code Chapters 18.13-18.15. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “replace in Municipal Code Sections 18.15.040(b), and 18.15.100(d)(iv), “59 years” with “55 years.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “replace in Section 19 of the Ordinance, Municipal Code Section 18.34.040(e)(3) with “the provisions of this section are intended to address the density bonus requirements of state law within the PTOD District. The maximum bonus density available under this section shall be the greater of the bonus density allowed under this chapter or under the City’s density bonus provisions contained in Chapter 18.15.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to remove from Municipal Code Section 18.13.010(a), (b), and (c), “with no required minimum density.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED PASSED: 7-1 Wolbach no, Burt absent DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 12/7/15 MOTION: Council Member Scharff moved, seconded by Council Member Kniss to adopt Ordinance Sections 14-15, modifying Municipal Code Chapters 18.16 and 18.18 including Staff proposed changes to Municipal Code Section 18.18.120(a)(2)(C). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the end of the Motion, “to replace ‘volume of space that is’ with ‘three dimensional shape and space.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “in Municipal Code Section 18.18.060(e), replace “minimum extent necessary” with “incremental square footage necessary.” MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Wolbach moved, seconded by Council Member DuBois to approve Ordinance Sections 16-21, modifying Municipal Code Chapters 18.20-18.52. SUBSTITUTE MOTION: Mayor Holman moved, seconded by Council Member DuBois to continue discussion of the addition of Municipal Code Sections 18.31.010, 18.31.020, and 18.31.030. SUBSTITUTE MOTION FAILED: 3-5 DuBois, Holman, Schmid yes, Burt absent MOTION PASSED: 7-1 Holman no, Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Berman to approve Ordinance Sections 22-24, modifying Municipal Code Chapters 18.70-18.77. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to continue Municipal Code Section 18.76.020 to the next available meeting. MOTION RESTATED: Council Member Scharff moved, seconded by Council Member Berman to approve Ordinance Sections 22 and 24, modifying Municipal Code Chapters 18.70-18.77 with the exception of Municipal Code Section 18.76.020. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 12/7/15 MOTION AS AMENDED PASSED: 8-0 Burt absent MOTION: Council Member Scharff moved, seconded by Council Member Kniss to continue Attachment E of the Staff Report to a date uncertain. SUBSTITUTE MOTION: Vice Mayor Schmid moved, seconded by Mayor Holman to set a hard stop of 11:00 P.M. SUBSTITUTE MOTION FAILED: 4-4 DuBois, Filseth, Holman, Schmid yes, Burt absent MOTION PASSED: 5-3 Filseth, Holman, DuBois no, Burt absent 12. PUBLIC HEARING: Certification of the Final Environmental Impact Report (FEIR) and Approval of the Record of Land Use Action to Allow Demolition of Four Existing Structures Totaling 265,895 Square Feet and Construction of Four Two-Story Office Buildings Totaling 265,895 Square Feet of Floor Area With Below and At-Grade Parking and Other Site Improvements Located at 1050 Page Mill Road. Zoning District: Research Park (RP). Environmental Assessment: An Environmental Impact Report has Been Prepared. (STAFF REQUESTS ITEM BE CONTINUED TO JANUARY 11, 2016). Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 10:33 P.M. Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 1 December 15, 2015 Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 16 (Building Regulations), Chapters 16.20 (Signs), 16.24 (Fences), and 16.57 (In-Lieu Parking Fees for New Non-Residential Development in the Commercial Downtown (CD) Zoning District)), and Title 18 (Zoning), Chapters 18.01 (Adoption, Purposes and Enforcement), 18.04 (Definitions), 18.08 (Designation and Establishment of Districts), 18.10 (Low Density Residential RE, R-2 and RMD Districts), 18.12 (R-1, Single Family Residence District), 18.13 (Multiple Family Residential (RM-15, RM-30, RM-40) Districts), 18.14 (Below Market Rate Housing Program), 18.15 (Residential Density Bonus), 18.16 (Neighborhood, Community, and Service Commercial (CN,CC and CS) Districts), 18.18 (Downtown Commercial (CD) District), 18.20 (Office, Research and Manufacturing (MOR, ROLM, RP and GM) Districts)), 18.23 Performance Criteria for Multiple Family, Commercial, Manufacturing and Planned Community Districts), 18.31 (CEQA Review - a new chapter), 18.34 (PTOD Combining District Regulations), 18.40 (General Standards and Exceptions), 18.52 (Parking and Loading Requirements), 18.70 (Nonconforming Uses and Noncomplying Facilities), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) Changes made to Planning Code Ordinance from first reading: SECTION 5. Section 18.01.025 (Zoning Code Interpretation) is added to Chapter 18.01 (Adoption, Purposes, and Enforcement) of Title 18 (Zoning) of the PAMC to read as follows: 18.01.025 (Zoning Code Interpretation) Whenever in the opinion of the Planning and Community Environment Director (PCE Director) there is any question regarding the interpretation of the Comprehensive Plan or the planning and land use provisions of Titles 16, 18 or 21 to any specific case or situation, the PCE Director shall have the authority to interpret such planning codes. When in the opinion of the PCE Director a formal written decision is warranted, the Director shall make the written decision available to the public by posting on the City’s website. The interpretation shall become effective fourteen consecutive calendar days from the date of posting unless appealed under this section. The interpretation shall become the standard interpretation for future application of that provision of this Chapter unless changed by the Council on appeal. In accordance with the provisions of Section 18.77.070(f), any person may appeal the PCE Director’s written interpretation prior to its effective date. All final written interpretations made under this section shall be made publicly available on the City’s website. Staff shall prepare a quarterly Information Report to the Council summarizing all final interpretations made under this section. SECTION 6. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) is amended to read as follows: 18.04.030 Definitions Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 2 December 15, 2015 (a) Throughout this title the following words and phrases shall have the meanings ascribed in this section. . . . (B) Non-residential & Multifamily Exclusions: For all zoning districts other than the R-E, R-1, R-2 and RMD residence districts, "gross floor area" shall not include the following: . . . (iv) Except in the CD District and in areas designated as special study areas, minor additions of floor area approved by the director of planning and community environment for purposes of resource conservation or code compliance, upon the determination that such minor additions will increase compliance with environmental health, safety or other federal, state or local standards. Such additions may include, but not be limited to, the following: a. Areas designed for resource conservation, such as trash compactors, recycling, and other energy facilities meeting the criteria outlined in Section 18.42.120 (Resource Conservation Energy Facilities); b. Areas designed and required for hazardous materials storage facilities, disability related or seismic upgrades. For the purposes of this section disability related upgrades are limited to the incremental square footage necessary to accommodate disability access minimum extent necessary and shall be subject to the Director’s approval not to exceed 500 square feet per site. Disability related upgrades shall only apply to remodels of existing buildings and shall not qualify for grandfathered floor area in the event the building is later replaced or otherwise redeveloped. . . . SECTION 7. Section 18.08.080 (Interpretation of Land Use Classifications) is added to Chapter 18.08 (Designation and Establishment of Districts) of Title 18 (Zoning) to read as follows: 18.08.080 Interpretation of Land Use Classifications The PCE Director shall have the authority to interpret whether a land use is similar to other permitted or conditionally permitted land uses listed in any Zoning District. Such interpretations may be appealed in accordance with Section 18.77.070(f). Staff shall prepare a quarterly Information Report to the Council summarizing all final interpretations made under this section. SECTION 9. Sections 18.12.040 (Site Development Standards) (Tables 2 and 3), 18.12.050 (Permitted Encroachments, Projections and Exceptions), 18.12.060 (Parking), 18.12.070 (Second Dwelling Units), 18.12.090 (Basements), 18.12.100 (Regulations for the Single Story Overlay (S) Combining District), 18.12.110 (Single Family Individual Review), 18.12.120 (Home Improvement Exception) of Chapter 18.12 (R-1 Single- Family Residential District) of Title 18 (Zoning) of the PAMC is amended to read as follows: Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 3 December 15, 2015 . . . 18.12.120 Home Improvement Exception (a) Purpose A home improvement exception ("HIE") enables a home improvement or minor addition to an existing single-family or two-family home, or accessory structure, or both, to be consistent with the existing architectural style of the house or neighborhood, to accommodate a significant or protected tree, or to protect the integrity of a historic structure in conformance with the Secretary of the Interior's Standards for Historic Rehabilitation. By enabling adaptive reuse of existing buildings, the home improvement exception promotes retention of existing houses within the city. (b) Applicability A home improvement exception may be granted as part of a proposed improvement or addition to an existing single-family or two-family structure, or accessory structure, or both, in the RE, R-1, RMD, or R-2 district, as limited in subsection (c). A home improvement exception may be granted as described in subsections (1) through (14) of subsection (c), but may not exceed the limits set forth in those subsections. In order to qualify for a home improvement exception, the project must retain at least 75% of the existing exterior walls, including exterior finishes such as siding or cladding. . . . SECTION 13. Sections 18.15.030 (Density Bonuses), 18.15.040 (Development Standards for Affordable Units), and 18.15.100 (Regulatory Agreement) of Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: . . . 18.15.040 Development Standards for Affordable Units . . . (b) Moderate income restricted affordable units shall remain restricted and affordable to the designated income group for a minimum period of 559 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very low and lower restricted affordable units shall remain restricted and affordable to the designated income group for a period of 55 years for both rental and for-sale units (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). . . . 18.15.050 Development Concessions and Incentives Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 4 December 15, 2015 This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915. (a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. (b) Additional parking incentives for transit oriented projects. (i) Notwithstanding paragraph (a) above, if a development includes the maximum percentage of low- or very low income units provided for in section 18.15.030(b) and is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, then, upon request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments. (ii) Notwithstanding paragraph (a) above, if a development consists solely of rental units, exclusive of a manager’s unit, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios: (A) If the development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit. (B) If the development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 5 December 15, 2015 (C) If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (iii) Notwithstanding paragraphs (i) and (ii), the city may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (a) if the city has conducted an area wide or citywide parking study in compliance with Government Code Section 65915(p)(7). (c) Other incentives and concessions. A development is eligible for other concessions or incentives as follows: . . . 18.15.100 Regulatory Agreement . . . (d) The regulatory agreement shall be consistent with the guidelines of the city’s Below Market Rate Program and shall include at a minimum the following: . . . (iv) Term of use restrictions for restricted affordable units of at least 55 years for moderate income units and at least 55 years for low and very low units; . . . SECTION 14. Sections 18.16.050 (Office Use Restrictions) and 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows: 18.16.50 Office Use Restrictions The following restrictions shall apply to office uses: (a) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional, and Business offices shall not be located on the ground floor, unless any of the following apply to such offices such offices either: (1) Have been continuously in existence in that space since March 19, 2001, and as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter 18.30(I); (2) Occupy a space that was not occupied by housing, neighborhood business service, retail services, personal services, eating and drinking services, or automotive service on March 19, 2001 or thereafter; Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 6 December 15, 2015 (3) In the case of CS zoned properties with site frontage on El Camino Real, were not occupied by housing on March 19, 2001; (4) Occupy a space that was vacant on March 19, 2001; (5) Are located in new or remodeled ground floor area built on or after March 19, 2001 if the ground floor area devoted to housing, retail services, eating and drinking services, personal services, and automobile services does not decrease; (6) Are on a site located in an area subject to a specific plan or coordinated area plan, which specifically allows for such ground floor medical, professional, and general business offices; or (7) Are located anywhere in Building E or in the rear 50% of Building C or D of the property at the southeast corner of the intersection of Park Boulevard and California Avenue, as shown on sheet A2 of the plans titled “101 California Avenue Townhouse/Commercial/ Office, Palo Alto, CA” by Crosby, Thornton, Marshall Associates, Architects, dated June 14, 1982, revised November 23, 1982, and on file with the Department of Planning and Community Environment. . . . SECTION 15. Sections 18.18.060 (Development Standards), 18.18.070 (Floor Area Bonuses, 18.18.080 (Transfer of Development Rights), and 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the PAMC are amended to read as follows: 18.18.060 Development Standards . . . (e) Exempt Floor Area When an existing building is being expanded, square footage which, in the judgement of the chief building official, does not increase the usable floor area, and is either necessary to conform the building to Title 24 of the California Code of Regulations, regarding disability related access, or is necessary to implement the historic rehabilitation of the building, shall not be counted as floor area. For the purposes of this section disability related upgrades are limited to the incremental square footage necessary to accommodate disability access minimum extent necessary and shall be subject to the Director’s approval not to exceed 500 square feet per site. Disability related upgrades shall only apply to remodels of existing buildings and shall not qualify for grandfathered floor area in the event the building is later replaced or otherwise redeveloped. . . . 18.18.080 Transfer of Development Rights . . . Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 7 December 15, 2015 (h) Transfer Procedure Transferable development rights may be transferred from a sender site (or sites) to a receiver site only in accordance with all of the following requirements: (1) An application pursuant to Chapter 18.76 of this code for major ARB review of the project proposed for the receiver site must be filed. The application shall include: (A) A statement that the applicant intends to use transferable development rights for the project; (B) Identification of the sender site(s) and the amount of TDRs proposed to be transferred; and (C) Evidence that the applicant owns the transferable development rights or a signed statement from any other owner(s) of the TDRs that the specified amount of floor area is available for the proposed project and will be assigned for its use. (2) The application shall not be deemed complete unless and until the city determines that the TDRs proposed to be used for the project are available for that purpose. (3) In reviewing a project proposed for a receiver site pursuant to this section, the architectural review board shall review the project in accordance with Chapters 18.76 and 18.77 of this code; however, the project may not be required to be modified for the sole purpose of reducing square footage unless necessary in order to satisfy the findings for approval under Chapter 18.76 or any specific requirement of the municipal code. (4) Following ARB approval of the project on the receiver site, and prior to issuance of building permits, the director of planning and community environment or the director’s designee shall issue written confirmation of the transfer, which identifies both the sender and receiver sites and the amount of TDRs which have been transferred. This confirmation shall be recorded in the office of the county recorder prior to the issuance of building permits and shall include the written consent or assignment by the owner(s) of the TDRs where such owner(s) are other than the applicant. 18.18.120 Grandfathered Uses and Facilities (a) Grandfathered Uses (1) The following uses and facilities may remain as grandfathered uses, and shall not require a conditional use permit or be subject to the provisions of Chapter 18.70: (A) Any use which was being conducted on August 28, 1986; or (B) A use not being conducted on August 28, 1986, if the use was temporarily discontinued due to a vacancy of 6 months or less before August 28, 1986; or Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 8 December 15, 2015 (C) Any office use existing on April 16, 1990 on a property zoned CD and GF combining, which also existed as a lawful conforming use prior to August 28, 1986, notwithstanding any intervening conforming use. (2) The grandfathered uses in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint or any other increase in the size of the improvement. For purposes of this section, “building envelope” shall mean the three dimensional shape and size occupied by an existing building. It is not the maximum, buildable potential of the site; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; or (E) in the case of medical, professional, general business or administrative office uses of a size exceeding 5,000 square feet in the CD-S or CD-N district that are deemed grandfathered pursuant to subsection (1), such remodeling, improvement, or replacement shall not result in increased floor area devoted to such office uses. (F) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. . . . SECTION 19. Section 18.34.040 (Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations) of Chapter 18.34 (Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows: 18.34.040 Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations . . . (e) Density, FAR, and Height Bonus Provisions The following provisions are intended to allow for increased density, FAR, height, and other development bonuses upon construction of additional below market rate (BMR) housing units. The bonus allowances shall be allowed subject to the following limitations: Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 9 December 15, 2015 (1) Bonuses are only applicable where below market rate (BMR) units are provided in excess of those required by Palo Alto's BMR program as set forth in Section 18.14.030(a) and Program H-3.1.2 of the Housing Element. Key elements of the BMR Program include: (A) Five or more units: Minimum 15% of units must be BMR units; (B) Five or more acres being developed: Minimum 20% of units must be BMR units; and (C) BMR units shall meet the affordability and other requirements of Program H- 3.1.2 and the city's BMR Program policies and procedures. (2) The following BMR bonuses shall be considered and may be approved upon rezoning to the PTOD district: (A) Density Increase: Density may be increased above the maximum base density allowed (40 units per acre), such that at least one additional BMR unit is provided for every three additional market rate units constructed. The resultant density may not exceed fifty units per acre. Density shall be calculated based on the gross area of the site prior to development. (B) FAR Increase: For projects with a residential density greater than thirty units per acre, the allowable residential FAR may be increased. The FAR increase shall be equivalent to 0.05 for each additional 5% (in excess of the city requirements) of the total number of units that are proposed as BMR units, but may not exceed 50% of the residential FAR prior to the bonus, and may not exceed a total FAR of 1.5. (C) Height Increase: For projects with a residential density greater than 30 units per acre, the allowable project height may be increased. The height increase shall be equivalent to one foot above the maximum for each additional 5% (in excess of the city requirements) of the total number of units that are proposed as BMR units, but may not exceed a maximum height (50 feet). (D) Other incentives for development of BMR units, such as reduced setbacks and reduced open space, may be approved where at least 25% of the total units constructed are BMR units and subject to approval by the architectural review board. (3) The provisions of this section are intended to address the density bonus requirements of state law within the PTOD District. The maximum bonus density available under this section shall be the greater of the bonus density allowed under this chapter or under the city’s density bonus provisions contained in Chapter 18.15. . . . SECTION 23. Section 18.76.020 (Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of PAMC is amended to read as follows: 18.76.020 Architectural Review . . . Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 10 December 15, 2015 (b) Applicability . . . (2) Major Projects. The following are "major projects" for the purposes of the architectural review process set forth in Section 18.77.070, and are subject to review by the architectural review board: . . . (E) Any project using transferred development rights, as described in Chapter 18.18. . . . (d) Findings Neither the director, nor the city council on appeal, shall grant architectural review approval, unless it is found that: (1) The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan; (2) The design is compatible with the immediate environment of the site; (3) The design is appropriate to the function of the project; (4) In areas considered by the board as having a unified design character or historical character, the design is compatible with such character; (5) The design promotes harmonious transitions in scale and character in areas between different designated land uses; (6) The design is compatible with approved improvements both on and off the site; (7) The planning and siting of the various functions and buildings on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community; (8) The amount and arrangement of open space are appropriate to the design and the function of the structures; (9) Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project's design concept; (10) Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles; (11) Natural features are appropriately preserved and integrated with the project; (12) The materials, textures, colors and details of construction and plant material are appropriate expression to the design and function and whether the same are compatible with the adjacent and neighboring structures, landscape elements and functions; Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 11 December 15, 2015 (13) The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment and whether the landscape concept depicts an appropriate unity with the various buildings on the site; (14) Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety which would tend to be drought-resistant and to reduce consumption of water in its installation and maintenance; (15) ITie project exhibits green building and sustainable design that is energy efficient, water conserving, durable and nontoxic, with high-quality spaces and high recycled content materials. The following considerations should be utilized in determining sustainable site and building design: (A) Optimize building orientation for heat gain, shading, daylighting, and natural ventilation; (B) Design of landscaping to create comfortable micro-climates and reduce heat island effects; (C) Design for easy pedestrian, bicycle and transit access; (D) Maximize on site stormwater management through landscaping and permeable paving; (E) Use sustainable building materials; (F) Design lighting, plumbing and equipment for efficient energy and water use; (G) Create healthy indoor environments; and (H) Use creativity and innovation to build more sustainable environments. (16) The design is consistent and compatible with the purpose of architectural review as set forth in subsection (a). 1. The design is consistent with applicable elements of the Palo Alto Comprehensive Plan, Zoning Code (including context-based design criteria, as applicable) and any relevant design guides. 2. The project has a unified and coherent design that creates an internal sense of order and desirable environment for occupants, visitors, and the general community, preserves, respects and integrates natural features and the historic character of the area when appropriate, provides harmonious transitions in scale and character to adjacent land uses and land use designations and enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas. 3. The design is of high aesthetic quality, using high quality materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. Attachment C NOT YET APPROVED 151014 jb 0131490 Attachment C 12 December 15, 2015 4. The design is functional, allowing for ease and safety of pedestrian and bicycle access and providing for elements that support the building’s necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). 5. The landscape design is suitable, integrated and compatible with the building and the surrounding area, is appropriate to the site’s functions, and utilizes drought- resistant plant material that can be appropriately maintained. The project incorporates design principles that achieve sustainability and green building requirements in areas related to energy efficiency, water conservation, building materials, landscaping, site planning and sensible design. CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending the Table of Organization for Fiscal Year 2016 to Incorporate Classification Title and Salary Changing the Name of the Classification From “Traffic Operations Lead” to“Traffic Engineering Lead (FIRST READING: December 14, 2015 PASSED: 9-0) The attached Ordinance was first heard by the Council on December 14, 2015 and is returning for the second reading. Below is the Motion passed by the Council and attached is the Ordinance. Consent Calendar Resolution 9567 Entitled, “Resolution of the Council of the City of Palo Alto Amending the Memorandum of Agreement for Service Employees International Union (SEIU), Local 521 to: 1) Increase the Salary Range for the “Traffic Operations Lead” Position in the Planning and Community Environment (PCE) Department, and 2) Change the Classification Title to “Traffic Engineering Lead”; and Adoption of a Related Ordinance Amending the Table of Organization.” MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to approve Agenda Item Numbers 5-16, incorporating comments from the City Manager relating to Agenda Item Number 10- Approval of the Fire Insurance Settlement Payment…, Agenda Item Number 18 Attachment B (Resolution Amending Salary Schedules) only, and 19-22a. MOTION FOR AGENDA ITEM NUMBERS 5-16, 18-22a PASSED: 9-0 ATTACHMENTS:  Attachment A: SEIU Table of Org Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 *NOT YET APPROVED* Attachment B 151123 jjs 0160090 1 Ordinance No. ________ Ordinance of the Council of the City of Palo Alto Amending the Table of Organization for Fiscal Year 2016 to Incorporate Classification Title and Salary Change The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. As part of its Budget Amendment Ordinance No. 5329 adopting the Fiscal Year 2016 Budget, Council adopted the Fiscal Year 2016 Table of Organization. B. As a result of subsequent Council action, a classification title and salary change is necessary to the Fiscal Year 2016 Table of Organization. This change is only needed to update the Table of Organization; funding has been identified in the Fiscal Year 2016 Adopted Budget. SECTION 2. The Table of Organization shall be amended as provided in Exhibit “1”. 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 finds that adoption of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ___________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ______________________________ Deputy City Attorney City Manager _____________________________ Director of Administrative Services ____________________________ Chief People Officer CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Municipal Code Section 2.07.010 to Update Post Government Employment Regulations to Include all City Department Heads (FIRST READING: December 14, 2015 PASSED: 9-0) (CLK) This Ordinance was first heard by Council on December 14, 2015 and was passed 9-0. Below is the motion for the item. 19. Adoption of an Ordinance Amending Municipal Code Section 2.07.010 to Update Post Government Employment Regulations to Include all City Department Heads. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to approve Agenda Item Numbers 5-16, incorporating comments from the City Manager relating to Agenda Item Number 10- Approval of the Fire Insurance Settlement Payment…, Agenda Item Number 18 Attachment B (Resolution Amending Salary Schedules) only, and 19-22a. MOTION FOR AGENDA ITEM NUMBERS 5-16, 18-22a PASSED: 9-0 ATTACHMENTS:  Attachment: Attachment A: Post Employment Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 NOT YET APPROVED 151201 ep ORD Amending PG employment 1 December 1, 2015 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 2.07.010 of the Municipal Code to Provide that Post-Government Employment Regulations Apply to All Department Heads The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 2.07.010 of Chapter 2.07 Post-Government Employment Regulations of the Palo Alto Municipal Code is amended to read as follows: “2.07.010 No representation for compensation. No city officer, department head, or city employee whose appointment requires confirmation by the city council under Title 2 of this code, shall, for compensation, act as agent or attorney for, or otherwise represent any other person or entity, by making any formal or informal appearance, or by making any oral or written communication, before the city council, any city board or commission, or any officer or employee of the city, if the appearance or communication is made for the purpose of influencing administrative or legislative action, or influencing any action or proceeding involving the issuance, amendment, awarding or revocation of a permit, license, grant, entitlement or contract, or the sale or purchase of goods, services or property. Administrative action does not include any action that is solely ministerial. This limitation shall expire one year after the officer, department head or employee has left employment with the city.” SECTION 2. The City Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the adoption of this ordinance. SECTION 3. This ordinance shall become effective upon the commencement of the thirty-first day after the date of its adoption. INTRODUCED PASSED: AYES: NOES: ABSTENTIONS: ABSENT: NOT YET APPROVED 151201 ep ORD Amending PG Employment 2 December 1, 2015 ATTEST: APPROVED: ______________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ____________________________ City Manager ______________________________ City Attorney City of Palo Alto (ID # 6475) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Adoption of an Ordinance to Require All Business to Subscribe to Recycling and Compost Service Title: Adoption of an Ordinance Amending Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code to Require All Businesses to Subscribe to Recycling and Compost Services and Comply with Refuse Sorting Requirements From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council adopt an ordinance amending Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code (Attachment A) to require all businesses to subscribe to recycling and compost services and comply with refuse sorting requirements. Executive Summary Staff is proposing changes to Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code with new requirements related to recycling and composting that will be referred to throughout this report as the Recycling and Composting Ordinance. The proposed changes also include updates to the ordinance text that will ensure consistency in the new requirements and definitions. The Recycling and Composting Ordinance would require customers to subscribe to all three services (garbage, recycling and compost) and to sort their waste properly. The proposal includes new enforcement provisions for the Commercial Sector, but not for the Residential Sector. Other Bay Area jurisdictions, such as San Francisco, Cupertino and many cities in Alameda County, have implemented similar ordinances resulting in improved rates of diversion City of Palo Alto Page 2 from landfills. On December 15, 2015, staff presented the proposed ordinance to the Finance Committee where it passed unanimously. Based on staff projections, the City’s diversion rate should increase to approximately 84% with the full implementation of and compliance with this proposed ordinance. Background Zero Waste Plan Development In 2004, City Council directed staff to develop a zero waste policy and implementation plan for Palo Alto. In 2005, a task force was formed to assist in the creation and development of a zero waste policy and strategic plan to guide City officials in reaching zero waste goals. With input from the community, businesses and industry experts, the Zero Waste Strategic Plan identified key objectives and strategies, including developing policies and incentives to eliminate waste at the source and maximize recycling through expanded collection programs, processing facilities, education, outreach and technical assistance. In October 2005 Council approved the strategic plan and adopted goals of 73% waste diversion by 2011 and zero waste by 2021 (CMR:382:05). Council also directed staff to develop a Zero Waste Operational Plan (ZWOP) identifying necessary policies, programs and facilities. The ZWOP, completed in June 2007 and approved by City Council on September 17, 2007, outlined many strategies that were included in the GreenWaste of Palo Alto contract implemented in 2009, resulting in a rise in the City’s waste diversion rate from 62% to 80% in 2014. The ZWOP also included a policy recommendation to develop a “mandatory” recycling ordinance as a key strategy to achieve zero waste. Despite the 80% diversion rate, tons of recoverable materials are sent to the landfill each year. A waste characterization study performed in 2012 determined that over 70% of the City’s garbage is recoverable, approximately 21,000 tons of compostable and recyclable material. The study found that food scraps and food soiled paper were the largest constituents of the recoverable material. The landfilling of compostable materials results in greenhouse gas emissions equivalent to 5,000 metric tons of carbon dioxide. The landfilling of recyclable materials results in more greenhouse gas emissions. Every aluminum can, plastic bottle, glass jar, cardboard box or piece of paper not recycled results in virgin City of Palo Alto Page 3 materials needing to be mined for manufacturing. While some recyclable materials (~ 18%) are recovered at the Sunnyvale Material and Recovery Transfer (SMaRT) Station, many of the recyclable materials are buried at Kirby Canyon Landfill in south San Jose. This “waste” of recyclable materials results in greenhouse gas emissions estimated at 17,000 metric tons of carbon dioxide equivalent per year. Eliminating these emissions by achieving zero waste is a key component of the City’s Sustainability/Climate Action Plan. Additionally, the State of California through CalRecyle, the state’s regulatory agency overseeing solid waste disposal, has identified “moving organics out of the landfill” as its top priority in achieving the state’s 75% recycling goal. Specifically, by April 1, 2016, the state will require all local governments to have a program in place to collect organics from entities generating 10 cubic yards or more of organics per week. City of Palo Alto Page 4 Key 2015 Zero Waste Initiatives Staff identified three initiatives to increase the City’s waste diversion rate by focusing on compostable materials: 1. Implement a new residential food scraps collection program; 2. Implement a new recycling and composting ordinance; and 3. Extend and add scope to the GreenWaste contract to manage these new program activities. 2015 Three Zero Waste Initiatives Date Item Staff Report No. Mar. 3 Submitted plan to the Finance Committee Staff Report 5546 Mar. 23 Council approval of Residential Food Scraps Program Staff Report 5558 Jun. 15 Council approval of GreenWaste contract amendment no. 2 Staff Report 5763 Nov. 2 Council meeting - Recycling and Composting Ordinance (Council motion directed staff to return to the Finance Committee) Staff Report 6081 Dec. 15 Finance Committee meeting - Recycling and Composting Ordinance Staff Report 6340 Jan 11 Council Meeting – First reading of Recycling and Composting Ordinance Staff Report 6475 TBD Council Meeting – Second reading of Recycling and Composting Ordinance Staff Report TBD On July 1, 2015, the City began food scraps and food soiled paper collection for single-family residential customers. Eighteen thousand households in the City can now place their food scraps and food soiled paper directly into the green cart with their yard trimmings. This program is estimated to divert 3,000 tons of compostable materials annually. Current Success and Challenges in Diverting Materials from the Landfill The City’s 80% waste diversion rate from landfills has remained relatively stable City of Palo Alto Page 5 since 2010, meaning that the City will not reach zero waste without addressing the remaining recoverable materials found in garbage. Nearly 70% of what is discarded in the black, garbage container could either be recycled or composted (Figure 1). This is likely due to two factors: (1) not everyone sorts properly and (2) the majority of commercial customers do not subscribe to compost service. Figure 1: Material Recoverability in Citywide Garbage To address the sorting issue, City staff and GreenWaste Environmental Outreach Coordinators provide signage and training. Encouraging commercial customers to subscribe to compost service, however, presents a different challenge. Since 2009 commercial customers have had the option to subscribe to a voluntary compostable collection service. Over 30% percent of commercial customers, including many of the large corporate campuses and restaurants, subscribe to this optional compost service. This program has been successful in diverting 11,000 tons of food scraps and food soiled paper from the landfill to anaerobic digestion and/or composting. Nonetheless, 7,000 tons of commercially generated compostable material still ends up buried in the landfill. In 2014, staff surveyed many commercial customers who do not have compost service to understand what barriers kept them from subscribing. The majority responded with “compost service was not required.” Despite the fact that nearly all would save on their utility bill, most did not feel that subscribing to compost service was worthwhile. City of Palo Alto Page 6 The GreenWaste contract amendment went into effect July 1, 2015. The amended and restated contract includes a modification that provides a greater incentive to GreenWaste to collect compostable materials. Discussion To minimize the amount of material sent to the landfill and reduce greenhouse gas emissions, the Recycling and Composting Ordinance would require all customers to subscribe to recycling and compost service and sort properly. The Recycling and Compost Ordinance proposed by staff (Attachment 1) covers more customers than adopted California State legislation (AB341 and AB1826). Based on staff projections, the City’s diversion should increase to around 84%with the full implementation of and compliance with this proposed ordinance.. Requiring recycling, compost, and garbage containers for all customers through a modification of the Municipal Code will need coordinated outreach, education and enforcement efforts to ensure that discards are sorted properly. Proposed Ordinance Changes The proposed ordinance changes (Attachment 1), are differentiated into two categories: 1) Recycling and Composting elements - requiring customers to subscribe to all three services and sort their waste properly (highlighted track-changes); and 2) Updated definitions and other text for consistency with current practices and guidelines (track-changes); As mentioned above, the recycling and composting provisions would require all commercial customers (including multifamily customers) to subscribe to all three waste services and sort discards properly; garbage in the black container, recyclables in the blue container and compostables in the green container. Other changes to the ordinance include updating definitions and text for consistency with current practices and guidelines. For example:  Determining the level of service required for customers – i.e. containers sufficient to hold solid waste (5.20.080), recyclable materials (5.20.090), City of Palo Alto Page 7 and compostable materials (5.20.100) for one week;  Clarifying how refuse containers shall be stored and maintained (5.20.120);  Strengthening the language related to litter around refuse containers (5.20.130) and litter on the streets (5.20.160);  Eliminating sections related to the now-closed Palo Alto Landfill; and  Deleting services that are no longer offered (5.20.210 “Manure Containers”). Based on direction from Council on November 2, 2015, sections that address the specifics of the Recycling and Composting Ordinance are highlighted in yellow in Attachment 1 with the full ordinance text. The other changes are in redline/strikeout. The modified ordinance also includes a definition of “salvage” taken from Section 5.24 (Construction and Demolition Debris Diversion Facilities). Salvage is allowed in Section 5.20.110(f) and addressed in greater detail as part of Title 16 Building Regulations and City green building codes (no modification proposed as part of Attachment 1 updates). The term “general contractor” was also revised to the original “contractor” in this section. Section 5.20.109 (Requirements for special events) was also revised to include only items related to sorting refuse properly. Text pertaining to single-use food service items is no longer in the ordinance text under “special events.” Compliance and Enforcement Approximately 1,000 commercial customers currently do not subscribe to compost service. These customers will be required to subscribe in three phases based on the amount of waste they produce. All food service establishments and multifamily customers will be included in the first phase. The phases are outlined in the “Timeline” section below. In cases where a separate container is not feasible, staff will work with customers to identify opportunities to share service or determine whether the customer may qualify for a “de minimus” exemption. Compliance activities for not sorting waste in the proper container would range from notifications to additional fees and fines. Single-family customers will not see a change. As is the current procedure, customers would receive notifications (cart tags) if their carts are contaminated. Although no fees or fines will be levied, flagrant contamination could cause GreenWaste to reject their load until contaminants are removed. City of Palo Alto Page 8 Multifamily customers would not be subject to fees or fines, provided the complex has easily accessible containers and signage for all recyclables, compostables and garbage. Should managers/owners of multifamily buildings fail to provide appropriate containers and signage, the owner would be subject to the same fees and enforcement actions for commercial customers. Administrative citations will not apply to individual sorting errors as defined in section 5.20.030(b). Proposed Compliance Process For Commercial Customers: Incidents Compliance Action (Commercial Customers Only) 1 Cart Tag – Notifies customer of contamination. The material in the container will still be collected. 2 A representative from GreenWaste will make a site visit and offer to provide training to the customer’s staff, tenants and/or janitorial staff. The material in the container will still be collected. 3 The City would send a letter to the customer including details of the contamination witnessed and previous efforts to resolve the problem and warn of possible fees or fines for future flagrant contamination. The material in the container will still be collected. 4 and beyond The customer would have two options: (1) the customer could remove contamination and pay a “return trip” fee as indicted in the commercial refuse rate schedule or (2) the customer could elect not to remove the contamination and pay both a “return trip” fee and an “extra solid waste pick-up” fee for the extra sorting and disposal of the waste. The current fee for a “return trip” is $77.00 and “extra solid waste pick-up” is based on the size and type of container. 5 and beyond The customer would be subject to administrative penalties for non- compliance with the City’s municipal code. Note: GreenWaste reserves the right to not collect recyclable or compostable City of Palo Alto Page 9 materials that may jeopardize the integrity of processing equipment and/or the marketability of the materials. Business and Multifamily Outreach Outreach efforts included a September utility bill insert directing customers to www.cityofpaloalto.org/rc-ordinance and to take a Recycling and Composting Ordinance Survey, as well as staff meetings with the Palo Alto Chamber of Commerce, Downtown Business Association and merchants of California Avenue. These efforts were undertaken in order to increase awareness of the upcoming changes and to better understand potential barriers to compliance. A few themes emerged from the survey and comments at the meetings, including:  Education of proper sorting - focusing efforts on janitorial staff, workers and tenants;  Unauthorized use of customer containers;  Cleanliness - keeping refuse areas clean; and  Responsibility – tenants and managers/owners for sorting errors. In response, staff is having GreenWaste broaden outreach to businesses, provide more sorting signage, schedule more sorting trainings and develop an online toolkit for janitorial services, offices and restaurants. GreenWaste is also working with downtown and California Avenue customers to provide bin locks where appropriate and identify shared service opportunities to minimize the number of refuse containers in alleys. GreenWaste is promoting its low-cost “bin wash” service to help customers comply with the cleanliness requirements in the Recycling and Composting Ordinance. To address the “ick-factor” related to food scraps, City staff has identified and is educating customers on best management practices and lessons learned from other communities to avoid creating odors or vector problems. Staff recognizes the challenges of guaranteeing proper sorting where there is no responsibility/accountability for doing so. For multifamily customers, an additional fee will be levied only if managers/owners fail to provide sufficient containers and signage. Staff believes managers/owners have more tools to ensure proper sorting, including adding appropriate language to leases advising tenants of sorting responsibilities and penalties and training janitorial services, with support from GreenWaste, to sort properly. Education and outreach to City of Palo Alto Page 10 customers, janitorial staff, workers and tenants will be the primary method of ensuring compliance. Although most commercial customers surveyed don’t subscribe because it’s not required, they indicated they could comply with the ordinance and sort their refuse properly. Timeline The ordinance will apply to commercial customers and be phased in as follows:  Phase 1: April 1, 2016, all commercial customers generating 8 cubic yards of garbage per week, all multifamily customers and all food service establishments would be required to subscribe to compost service. Phase 1 represents about 150 customers that do not currently subscribe.  Phase 2: January 1, 2017, all commercial customers generating 2 cubic yards or more of garbage per week will be required to subscribe to compost service. This phase represents about 220 customers that do not currently subscribe.  Phase 3: January 1, 2018, all commercial customers will be required to subscribe. This phase represents about 600 customers that do not currently subscribe. Staff will develop outreach and provide education focused primarily on those affected at each phase of implementation. Resource Impact Staff estimates that the impact of this Recycling and Composting Ordinance would result in a modest reduction in net income to the Refuse Fund. When this ordinance is fully implemented (in three years), the net impact is projected to be a net income reduction of approximately $78,000 per year. Revenue would be reduced because of customers downsizing their garbage service as they divert compostables to compost service (green container). For the commercial sector, compost service is currently priced at a 10% discount relative to the equivalent- sized garbage container. Of the 70% of commercial customers currently not subscribing to compost service, most could see a reduction in their utility bill if City of Palo Alto Page 11 they sort properly and downsize their garbage container. The following net income estimates to the Refuse Fund are cumulative: Full Year of implementation Per Year Net Income Reduction Year 1 <$43,000> Year 2 <$66,000> Year 3 <$78,000> The above estimates are based on several assumptions, which include 1) the amount of tons of compost material diverted from the garbage; and 2) the shift in customer service subscription levels (i.e., reduction in the size of garbage container and increase in the size of the compost and/or recycling container). Staff will continuously review actual costs and revenue information and propose Refuse Rate adjustments as appropriate. Policy Implications Reducing the amount of recyclable and compostable materials landfilled is a key strategy of the Zero Waste Operational Plan and a goal of the Comprehensive Plan and Sustainability/Climate Action Plan. Environmental Review The Recycling and Composting Ordinance, as a key strategy in the Zero Waste Operational Plan, will have a positive impact on the environment by dramatically reducing greenhouse gas emissions – estimated to be the equivalent of 22,000 metric tons of carbon dioxide annally. The additional collection of compostable material using existing collection vehicles and current routes is consistant with previous CEQA reviews. The Recycling and Composting Ordinance does not constitute a new or substantially changed project under CEQA. Attachments:  Attachment A: Proposed Ordinance Chapter 5.20 and 18.23 (DOCX) 150807 jb 00710649B 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending and Restating Chapter 5.20 of Title 5 and Amending Section 18.23.020 of Chapter 18.23 of Title 2 of the Palo Alto Municipal Code Pertaining to the Collection, Removal and Disposal of Refuse The Council of the City of Palo Alto does ordain as follows: SECTION 1. Chapter 5.20 of Title 5 of the Palo Alto Municipal Code is hereby amended to read, as follows: "CHAPTER 5.20 COLLECTION, REMOVAL AND DISPOSAL OF SOLID WASTE AND RECYCLABLE MATERIALSREFUSE 5.20.010 Definitions. Within and limited to this chapter, theThe following words and phrases whenever used in this chapter shall be construed as defined in this section, unless the context indicates otherwise. (1) “Bin” shall means a detachable solid waste or recycablerefuse container used in connection with commercial/industrial premises with a 1 to 8 cubic yard capacity, equipped with a lid, and designed for mechanical pick-up by collection vehicles. (2) “Box”, sometimes known as a "roll-off" or "drop" box, means a wheeled or sledded container or compactor, generally 7 to 50 cubic yards in size, suitable for the storage and collection of commercial or industrial solid waste or recyclable materials. (3) “Cart” means a wheeled container receptacle larger than a Standard container and smaller than a bin, equipped with a lid, and designed for mechanical pick-up by collection vehicles. (4) “City” means the government of the City of Palo Alto, defined in Section 1.04.050(1) of the municipal code, with a principal place of business at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. (4) “City landfill” means the City of Palo Alto’s landfill, located at 2380 Embarcadero Road, Palo Alto, California. (5) “City manager” means the person referred to in Section 2.08.140 of the municipal code,City Manager of the City of Palo Alto or the city manager’s or designee. (6) “Collection agreement” means a contract with the cityCity for the collection of 150807 jb 00710649B 2 solid waste and recyclable materials,refuse pursuant to Section 5.20.040. (7) “Collector” means one or more persons authorized under by Section 5.20.040 to provide solid waste, recyclable materials, or solid waste and recyclable materialsthe collection, removal processing and disposal services of refuse pursuant to one or more written contracts with the city. (8) “Commercial/industrial business owner” means any person , firm, corporation or other enterprise or organization holding or occupying, alone or with others, commercial/industrial premises, whether or not it is the person holdser of the title or the is the record owner of record of the commercial/industrial premises. (9) “Commercial/industrial premises” means all any occupied real property in the cityPalo Alto, except property occupied by federal, state or local governmental agencies which do not consent to their inclusion, and except residential premises as defined in subsection (3127) hereof, and shall include, without limitation, any wholesale and or retail establishments, restaurants and food service establishments, bars, stores, shops, shopping center, offices, industrial establishments, manufacturing establishments, service stations, repair, research and development establishments, professional, services, sports or recreational facilityies, any place or premises where an animal is maintained or sheltered, construction or demolition sites, a multiple dwelling that is not a residential premises, and any other commercial or industrial business facilityies, structures, sites, or other establishments in the cityPalo Alto. (10) “Compostable materials” means organic materials designated by the City as approved for collection and processing, including, without limitation, yard trimmings, food scraps, soiled paper and compostable plastics, but excluding animal manure, sewage sludge, and human biological wastes. (110) “Composting” means the controlled, biological decomposition of organic materials into humus for use as a soil amendment, conditioner or fertilizer or for any other similar use or purpose. (121) “Construction and/or demolition site” means any real property in the cityPalo Alto, in on or fromat which a building or structure, or any portion thereof, is being fabricatedconstructed, assembled, erected or demolished, and which producesduring which construction or demolition waste which must be removed from the property. (132) “Construction and/or demolition waste” means any solid waste generated as the result of construction or demolition work, including, without limitation, discarded packaging or containers and waste construction materials, whether brought on site for fabrication or used in construction or resulting from demolition, excluding liquid waste and hazardous waste. (143) “Container” means any bin, box, cart, compactor, drop box, roll-off box, or receptacle, used for the storage of solid waste, recyclable materials, compostable materials or other materials designated by the City for collection by the collector.standard container, mini- can container of cart. 150807 jb 00710649B 3 (154) “Director” means the person referred to in Section 2.08.190 of the Municipal Code, director of public works for the city of Palo Alto or the director's designee. (165) “Disposal or processing facility” means a landfill facility,or a recycling facility, or a composting facility or a solid waste transfer or processing station. (17) “EPA” means the federal Environmental Protection Agency or successor agency. (18) "Food service establishment" means any establishment, located or providing food within Palo Alto, which provides prepared and ready-to-consume food or beverages, for public consumption, including, but not limited to, any retail service establishment, eating and drinking service (as defined in Chapter 18.23), takeout service (as defined in Chapter 18.23), supermarket, delicatessen, restaurant, food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or outdoor vendor or caterer which provides prepared and ready-to-consume food or beverages, for public consumption. (1916) “Hazardous waste” means waste defined as hazardous by Public Resources Code section 40141, as it now exists or may subsequently be amended, namely, a waste or combination of wastes, which because ofdue to its quantity, concentration, or physical, chemical or infectious characteristics, may do either of the following: (i) cause or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; (ii) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported, or disposed of, or otherwise managed. "Hazardous waste" includes extremely hazardous waste and acutely hazardous waste, and any other waste as may hereafter from time to time be designated as hazardous by the Environmental Protection Agency ("EPA") or other agency of the United States Government, or by the California Legislature or any agency of the State of California empowered by law to classify or designate waste as hazardous, extremely hazardous or acutely hazardous. (20) “Home composting” means the controlled decomposition of organic material, including, without limitation, yard trimmings and kitchen scraps, into humus by any person owning or occupying any place or premises in Palo Alto. (2117) “Manure” shall means the waste droppings from of any animal. (18) “Manure container” shall mean Standard containers or bins, or other receptacles approved by the Director for the placement of manure, which are equipped with substantial lids or covers adequate to keep flies from the interior thereof. No Manure container shall exceed seventy-two cubic feet in capacity. (19) “Mini-can container” means a round, metallic or plastic can with a close fitting cover, handles and side bails with a maximum capacity of twenty gallons or seven and one-half dekaliters, or such other container not larger than a standard container as may be approved by the director. 150807 jb 00710649B 4 (22) “Multifamily property” means any residential premise with five or more attached units with shared service. (23) “Organic wastes” means “compostable materials.” (240) “Person” means any individual, or entity referred to in Section 1.04.050(5) of the Municipal Code and including any general partnership, limited partnership, limited liability partnership, or limited liability companyassociation, firm, partnership, corporation, or any other group or combination thereof acting as a unit. (251) “Place or premises” means every residential premises and commercial/industrial premises, including any structure, apparatus, or portion thereof occupied or operated by any person and situated on an integral parcel of land undivided by a public street, highway, or railway. (262) “Public solid waste or recycling receptacles” means receptacles any container for the collection of solid waste, or recyclableing materials or compostable materials that are both located on public property and intended for use by the general public. (273) “Recyclable materials” means those materials designated by the City that are as suitable for collection and transport to a material recovery facility for processing into a recycled content product, including, without limitation, newspaper, paper, cans, corrugated cardboard, glass and certain types of plastic, and metalsrecycling. (284) “Recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become Solid solid waste, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. Recycling This term does not include transformation as that term is defined in Public Resources Code section 40180201. (29) “Refuse” means and includes compostable materials, recyclable materials and solid waste. (30) “Refuse service” means the weekly or other periodic collection, processing and disposal of materials properly deposited in the collector-provided containers for solid waste, as well as weekly collection and processing of recyclable materials and weekly collection and processing of compostable materials. (25) “Resident” means any person living within the territorial limits of the city of Palo Alto, whether or not the person owns the place or premises which he or she occupies, and any person who is a nonresident employee of the city of Palo Alto, a municipal corporation, and every member of his or her household related by blood, marriage, or adoption or a domestic regular partner. 150807 jb 00710649B 5 (3126) “Residential householder” means any person or persons holdingowning or occupying residential premises in the cityPalo Alto, whether or not the owner of the residential premise. (3227) “Residential premises” means any residential dwelling unit within the cityPalo Alto, including, without limitation, a multiple unit residential complexes, such as a rental housing projects, condominiums, apartment houses, mixed condominiums and rental housing, and a mobile home parks, except any multiple dwelling which, with the prior written approval of the director, receives commercial bin service. (33) "Salvage" means the controlled removal of construction or demolition debris/material from a permitted building, construction, or demolition site for the purpose of recycling, reuse, or storage for later recycling or reuse. Examples include air conditioning and heating systems, columns, balustrades, fountains, gazebos, molding, mantels, pavers, planters, quoins, stair treads, trim, wall caps, bath tubs, bricks, cabinetry, carpet, doors, ceiling fans, lighting fixtures, electrical panel boxes, fencing, fireplaces, flooring materials of wood, marble, stone or tile, furnaces, plate glass, wall mirrors, door knobs, door brackets, door hinges, marble, iron work, metal balconies, structural steel, plumbing fixtures, refrigerators, rock, roofing materials, siding materials, sinks, stairs, stone, stoves, toilets, windows, wood fencing, lumber and plywood. (28) “Residential recycling collection” means the process by which recyclable materials and yard trimmings are placed at the curb of a residence for collection, removal and disposal. (3429) “Solid waste” shall means all putrescible and nonputrescible solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanating from Residential residential premises or commercial/industrial premises, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, discarded home and industrial appliances, manure, vegetable or animal carcasses, solid or semisolid wastes, and other solid and semisolid wastes. “Solid waste” shall not include liquid wastes or sewage, abandoned vehicles, hazardous waste, or recyclable materials or compostable materials. (350) “Solid waste enterprise” shall mean any individual, partnership, joint venture, unincorporated private organization, or private corporationperson regularly engaged in the business of providing solid waste, or recyclable materials or compostable materials handling services. (31) “Solid waste or recyclable materials handling services” shall mean the collection, transportation, storage, transfer, or processing of solid waste or recyclable materials. (32) “Source separated commingled recyclable materials” are source separated recyclable materials in any combination of two or more source separated single recyclable materials. 150807 jb 00710649B 6 (33) “Source separated recyclable materials” means recyclable materials which are separated from solid waste by the generator at the location where it was created, not mixed with or containing more than incidental solid waste, as determined by the director. (364) “Source separated single recyclable materials” are source separatedmeans recyclable materials that are separated from other recyclable materials or solid waste and placed in separate containers according to type or category of materials and can be directly marketed as a distinct single commodity, as determined by the director. (35) Standard container means a metallic or plastic can with a close fitting cover, handles and side bails of a capacity of more than twenty gallons or seven and one-half dekaliters but not exceeding thirty-two gallons or twelve dekaliters, or such container other than a mini-can container as may be approved by the director. (376) “Yard trimmings” means any plant trimmings generated from the maintenance or alteration of public, commercial premises or residential premises landscapes, including, without limitation, grass cuttings, yard clippings, leaves, tree trimmings, pruning, brush and weeds, excepting those materials which are prohibited under written rules and regulations promulgated by the director. 5.20.020 Declaration of policy (a) The accumulation, collection, removal and disposal of solid waste and recyclable materialsrefuse must be controlled by the cityCity for the protection of the public health, safety and welfare. The councilCouncil finds that to give practical effect to this policy a comprehensive system for the periodic collection, removal and disposal of solid waste and recyclable materialsrefuse from all places or premises is essential and benefits all occupants of places or premises., and, therefore, Aall such occupants of places or premisesare made shall be liable for the solid waste and recyclable materialsrefuse collection charges established by the councilCouncil for the collection, removal and disposal of solid waste and recyclable materialsrefuse. (b) The City complies with the applicable provisions of the California Integrated Waste Management Act, as amended, codified in the Public Resources Code section 40000 et seq. The law requires that, by and after January 1, 2000, fifty percent (50%) of the solid waste generated must be diverted through some source reduction, recycling, and composting activities. (c) The City also complies with the 75 percent recycling goal included as part of AB 341 Mandatory Commercial Recycling Law, adopted on October 6, 2011, which includes modifications to the Public Resources Code. (d) AB 1826, which amended the law in 2014, imposes organic waste recycling requirements with a mandate that will begin on April 1, 2016. 150807 jb 00710649B 7 (e) The City may adopt, implement, and enforce requirements, rules and regulations for local compostable materials and local recyclable materials that are more stringent or comprehensive than California law. 5.20.030 Discarding of solid waste and recyclable materialsrefuse (a) No person shall throw, drop, leave, place, keep, accumulate, or otherwise dispose of any solid waste or recyclable materialsrefuse upon private property either with or without the intent to later remove the same from such that place or premises, or upon any street, public right-of-way, sidewalk, gutter, stream, or creek, or the banks thereof, or any public place or public property. (b) All persons shall separate their refuse according to its characterization as solid waste, compostable materials, or recyclable materials, and place each type of refuse in a separate container designated for disposal of that type of refuse. No person may mix any type of refuse, or deposit refuse of one type in a collection container designated for refuse of another type, except as otherwise provided in this chapter. This section shalldoes not prohibit the placement of solid waste or recyclable materialsrefuse in public solid waste or recycling receptacles, or in containers, bins or boxes for collection in accordance with the provisions of this chapter, or at the city landfill or posted recycling centers in accordance with the procedures thereof. This section does not prohibit any person from engaging in home composting. Administrative citations or any other enforcement actions will not apply to this paragraph for a person occupying a residential premise. 5.20.040 Collection, removal and disposal only by authorized persons (a) The cityCity shall authorize, permit, regulate and control the collection, removal and disposal of all solid waste and recyclable materialsrefuse generated at all places or premises. For this purpose, the City may enter into a collection agreement with one or more solid waste enterprises may be entered into by the city with or without advertising for bids. The collection agreement shall not be or be deemed or construed as a franchise nor be deemed or construed as such. (b) Notwithstanding any permit issued by any other governmental agency authorizing the collection of solid waste or recyclable materialsany type of refuse, no person other than a person with a collection agreement, or his or herits duly authorized agents or subcontractors, as provided in Section 5.20.070, shall negotiate or contract for, undertake to receive, collect, remove, transport, or dispose of any solid waste or recyclable materialstype of refuse from within the city Palo Alto for a fee, service charge or other consideration therefor, except as specifically provided herein. (c) No person shall interfere in any manner with the lawful operations of the collector or the collector’sits duly authorized agents or subcontractors. 150807 jb 00710649B 8 (d) Except as otherwise provided in this chapter, each residential householder and commercial/industrial business owner shall utilize the services of the collector for the collection of solid waste and recyclable materialsrefuse from the residential or commercial/industrial premises held or occupied by such that owner or occupant and shall pay the fees for such services asthe fees approved by the city councilCouncil. No residential householder or commercial/industrial business owner shall enter into an agreement with a solid waste enterprise for the collection of for agreement for solid waste or recyclable materialsrefuse handling services with any person, firm, or corporation other than the collector, except as otherwise provided in this chapter. 5.20.050 No unauthorized bins, boxes, or containers. (a) Except as expressly authorized by this Chapter 5.20, no person other than a collector may place a bin, box ora container within the cityPalo Alto. (b) The cityCity shall notify, in writing, any person who violates this Section 5.20.050 that the prompt and permanent removal of such the bin, box or container from the place or premises is required. The cityCity shall deliver such the written notice by posting a copy of the notice prominently upon the bin, box, or container. If the bin, box, or container is identified with by the name and telephone number of the solid waste enterprise servicing it, as required by Section 5.20.130(e), the city City shall also endeavor to contact the enterprise by telephone. The Ffailure of the City to notify telephonically the owner of the presence of the container at the place or premises telephonically shall not invalidate the notice. The city City may impound or cause to be impounded any such bin, box or container if the same is not permanently removed from the place or premises within the time set forth in the notice, which time shall be not less than twenty-four hours after the posting of the notice, or not less than six business hours after the telephonic notification, if any notice is provided. For purposes of this Section 5.20.050, “business hours" shall means the hours of 7:00 a.m. to and 6:00 p.m., Monday through Saturday. Any person who violates this Section 5.20.050 shall be liable to the city City for all fines and charges levied in connection with the collection, transportation, storage and handling of such that bin, box or container by the cityCity. The bin, box or container impounded by the city City shall be retrieved by the owner or his or her representative immediately after all applicable fines and charges have been paid. The city City manager may delegate to the collector the authority to impound any unauthorized bins, boxes, and containers and to collect the fines and charges levied by the cityCity. (c) Upon posting of a written notice of violation upon the unauthorized bin, box or container, the customer person using the unauthorized bin, box or container shall immediately cease placing solid waste and recyclable materialsrefuse therein. 5.20.060 Contracting for special hauling services. Any owner, or occupant or tenant of any place or premises may contract with the collector or his or herits duly authorized agents or subcontractors, as provided in Section 5.20.070, but not otherwise, for special hauling services for the collection, removal and disposal of solid waste in excess of the regular services provided by the collector. 150807 jb 00710649B 9 5.20.070 Use of agents or subcontractors by the collector. The city City may provide in any written contract entered into pursuant to Section 5.20.040(a) that the collector may designate, in writing, one or more agents or subcontractors who may collect, remove, and dispose of such solid waste or construction and demolition waste as may be in excess of the regular collection made by the collector, subject to the limitations set forth in the collection agreement. 5.20.080 Number of solid waste containers required. (a) No All persons owning or occupying any place or premises where solid waste is created, produced or accumulated shall subscribe and pay for this type of refuse service and shall subscribe and pay forfail to procure a sufficient number of containers to hold all solid waste created, produced or accumulated at or on the place or premises during a one-week period, unless a more frequentdifferent frequency for a collection schedule has been approved or directed pursuant to this chapter. (b) Every place or premises shall receive solid waste service at the automatic service level, unless a person who is duly authorized to represent the place or premises selects a different service level which meets the requirements of this section. The following automatic service levels shall apply for new customers: (1) Single family residential users: one Standard container; (2) Two-family dwellings, three-family dwellings, apartment houses and multiple dwelling buildings: one Standard container per dwelling unit; and (3) Motel, hotel, trailer park or mobile home park: one Standard container per dwelling unit or space. (4) Manufacturing, commercial or institutional establishments: two Standard containers. (c) In determining the sufficiency of the number of Containers required for any of the following places or premises, the following minimum standards shall apply: (1) Single family residential users: one Mini-can container; (2) Two-family dwellings, three-family dwellings, apartment houses and multiple dwelling buildings: one Mini-can container per dwelling unit; (3) Motel, hotel, trailer park or mobile home park: one Standard container per dwelling unit or space; and (4)Manufacturing, commercial or institutional establishments: one Standard container. 150807 jb 00710649B 10 (d) Unless otherwise approved by the Director pursuant to rules and regulations prescribed by the City: Standard containers shall not exceed sixty pounds or twenty-seven kilograms in weight when filled with Solid waste for collection, removal and disposal; Mini-can containers shall not exceed forty pounds or eighteen kilograms in weight when filled with Solid waste for collection, removal and disposal; and Standard containers or Mini-can containers used for Yard trimmings shall not exceed forty pounds or eighteen kilograms in weight when filled for collection, removal and disposal. 5.20.090 Collection and ownership of recyclable materials – Residential Premises. (a) All persons owning or occupying any place or premises where recyclable materials are created, produced or accumulated shall subscribe and pay for this type of refuse services and shall subscribe and pay for a number of containers sufficient to hold all recyclable materials created, produced or accumulated at the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter.The city shall provide a program for the collection of recyclable materials from residential premises. For the purposes of this Section, recyclable materials includes yard trimmings and any other similar materials designated by the director. (b) Recyclable materials placed for curbside residential recycling collection in or outside of a container shall become the property of the collector at the time of placement at the curb or other designated location for collection in or outside of the container. The collector shall have the exclusive right to collect such the recyclable materials, unless the collection agreement specifies a different arrangement. (c) The disposal of solid waste and compostable materials in containers designated for the collection of recyclable materials is prohibited. Recyclable materials that are placed in a recyclable materials container for collection by the collector must be free of solid waste and compostable materials. (c) If Recyclable materials placed for curbside residential recycling collection are not collected as part of the city’s program for residential recycling collection, the person who placed the recyclable materials for curbside residential recycling collection is entitled to receive a written explanation pertaining to the failure of the collector to collect and dispose of the recyclable materials. It shall be the responsibility of the person who places the Recyclable materials for residential recycling collection to remove the recyclable materials within twenty- four hours of receipt of the explanation. The collector is expressly authorized to reject Recyclable materials that are not free of all but incidental amounts of putrescible solid and semisolid wastes, or that are not free of hazardous wastes. 5.20.100 Collection and ownership of recyclable compostable materials – Commercial/industrial premises. (a) The city shall provide a program for the collection of recyclable materials from commercial/industrial premises. 150807 jb 00710649B 11 (b) When recyclable materials are placed in bins, boxes, or containers that the city or the collector provide for the collection of recyclable materials, such recyclable materials shall become the property of the city or the collector, as the case may be. The city or the collector shall have the exclusive right to collect recyclable materials from such bins, boxes, or containers. (a) All persons owning or occupying any place or premises where compostable materials are created, produced or accumulated shall subscribe and pay for this type of refuse services and shall subscribe and pay for a number of containers sufficient to hold all compostable materials created, produced or accumulated at the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (b) Compostable materials placed for curbside collection in a container shall become the property of the collector at the time of placement at the curb or other designated location for collection of the container. (c) On or after April 1, 2016, all commercial premises at which 8 cubic yards or more of solid waste refuse service is subscribed per week, multifamily properties, and food service establishments shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the places or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (d) On or after January 1, 2017, all commercial premises where 2 cubic yards or more of solid waste refuse service is subscribed per week, shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (e) On or after January 1, 2018, all commercial premises at which solid waste refuse service is subscribed, shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (f) The City may direct the collector to audit individual solid waste streams generated at commercial premises to determine the owner, occupant or tenant’s compliance with this section. 5.20.105 Contamination of containers (a) No person subscribing to refuse service shall dispose or permit the disposal of solid waste in a container designated for the collection of recyclable materials or compostable materials. The person shall remove any solid waste deposited in the recyclable materials and compostable materials containers before the collection of the recyclable materials and compostable containers occurring that week. 150807 jb 00710649B 12 (1) The collector will notify any person who occupies commercial premises whenever the City or the collector determines the recyclable materials or compostable materials container of that person is contaminated with solid waste and the waste must be removed. After the person removes the solid waste from the recyclable materials and compostable materials container, the collector will return to the commercial premises to service the container or containers and the person occupying the commercial premises will be charged a “return trip” fee specified in the refuse rate schedules. (2) If the person occupying the commercial premises does not remove the waste from the recyclable materials and compostable materials containers by the scheduled pick-up date, the containers will be serviced at the next business day and the person occupying the commercial premises will be charged both an “extra solid waste pick-up” fee and a “return trip” fee in addition to the refuse charges that apply to the level of service subscribed by the person occupying the commercial premises. The extra solid waste pick-up fee shall be determined according to the size of the contaminated recyclable materials or compostable materials container and the established rates approved by the City. (3) The fees outlined in 5.20.105 (a)(1) – (2) will also apply if a person occupying a commercial premises places recyclable materials in containers designated for compostable materials or compostable materials in containers designated for recyclable materials. (4) On or after July 1, 2021, if a person occupying a commercial premises places recyclable materials and/or compostable materials in containers designated for solid waste, the person will be subject to a “contamination” fee. (5) A person occupying residential premises will not be subject to a “return trip” fee, an “extra solid waste pick-up” fee, a “contamination” fee, an administrative citation or any other enforcement action. A multifamily property will not be subject to a “return trip” fee or an “extra solid waste pick-up” fee if owners or managers of the multifamily property can demonstrate compliance with Section 5.20.108 to the satisfaction of the director. (b) No person shall dispose of commercial grease or cooking oil in a compostable materials container. 5.20.108 Requirements for owners or managers of multifamily properties and commercial premises. (a) The owner or manager of any multifamily property or commercial premises must provide a level of refuse service sufficient to contain the refuse generated by the owners, occupants, tenants, employees, contractors, and customers of the property or premises. (b) The owner or manager of any multifamily property or commercial premises must provide the number and type of containers at the property or premises sufficient to make the 150807 jb 00710649B 13 source separation of refuse convenient for the owners, occupants, tenants, employees, contractors, and customers of the property or commercial premises. (c) The three types of containers shall: (1) Be appropriate in number and size with respect to the quantity of solid waste, compostable materials, and recyclable materials anticipated to be generated at the property or premises; (2) Bear appropriate signage and be color-coded – blue containers for recyclable materials, green containers for compostable materials, and black containers for solid waste – to identify the type of refuse to be contained and meet any additional design criteria established by the City; and (3) Be placed as close together as practicable to provide equally convenient access to users. (d) The owner or manager of any multifamily property or commercial premises shall provide information or training for new occupants, tenants, employees and contractors, including janitors, on the manner of source separation of solid waste, compostable materials, and recyclable materials. The owner or manager shall provide information or train current occupants, tenants, employees and contractors at least once per calendar year. (e) The owner or manager of any commercial premises or their contractor shall collaborate with on-site janitors to create effective source separation programs. (f) The use of public solid waste, recycling, or composting receptacles by any commercial premises is prohibited. 5.20.109 Requirements for special events. (a) The promoter or coordinator of a special event held in Palo Alto must provide a level of refuse service sufficient to contain the refuse generated at the special event. (b) The promoter or coordinator shall provide containers at appropriate locations at the special event to facilitate the source separation of solid waste, compostable materials, and recyclable materials by event employees, vendors, and attendees. (c) The three types of containers shall: (1) Be appropriate in number and size with respect to the quantity of solid waste, compostable materials, and recyclable materials anticipated to be generated at the property or premises; (2) Bear appropriate signage and be color-coded – blue containers for recyclable materials, green containers for compostable materials, and black containers for solid waste – to identify the type of refuse to be contained and meet any additional design criteria established by the City; and (3) Be placed together as a waste station to provide equally convenient access to users. 150807 jb 00710649B 14 (d) If the promoter or coordinator determines that vendor booths at the special event will require refuse containers, the vendors shall receive from the promoter or coordinator a set of refuse containers that bear appropriate signage and are color-coded to identify the type of waste to be contained. (e) The use of public solid waste recycling or composting receptacles at special events is prohibited. The promoter or coordinator shall remove or cover all public solid waste recycling or composting receptacles to prevent their use during the special event. 5.20.110 Exclusions (a) Residential Householder Exclusion. No provision of this chapter shall prevent a residential householder from collecting and disposing of occasional loads of solid waste generated in or on his or herat the residential premises, or from composting yard trimmingsat home, or from selling, donating or disposing of recyclable or compostable materials generated in or on his or herat the residential premises. The containers provided by the collector may not be used for activities authorized by this paragraph (a). Notwithstanding the foregoing, no residential householder shall employ or engage any solid waste enterprise, other than the collector to haul or transport solid waste, or recyclable materials, or compostable materials to a disposal or processing facility.; nor shall any No residential householder may collect or dispose of solid waste generated elsewhere than in or on his or herat a location that is not the residential premises. (b) Gardener's Exclusion. No provision of this chapter shall prevent bar a gardener, tree trimmer or other person engaged in a similar trade from collecting and disposing of grass cuttings, prunings, and similar materialyard trimmings not containing other solid waste whenever the collection and disposal are incidental to providing such the gardening, tree trimming or similar services. (c) Commercial Source Separated Recyclable Materials and Compostable Materials (1) Commercial/industrial business owners shall retain the right to donate or sell recyclable materials and compostable materials, or to pay fees for services to solid waste enterprises other than the collector for the collection of particular recyclable materials and compostable materials, so long as all recyclable materials and compostable materials collected are source separated single recyclable materials and compostable materials. Glass, tin, aluminum, and plastics can be collected as source separated commingled recyclable materials. The director may authorize, by written rules and regulations, collection of other recyclable materials as source separated commingled recyclable materials. All rRecyclable materials and compostable materials collected pursuant to this paragraph (c) must shall be taken transported to a recyclable materials and compostable materials ing facility achieving a diversion rate of 90 percent and where not more than 10 percent of the materials are, and not disposed of in a landfill. 150807 jb 00710649B 15 (2) Commercial/industrial business owners shall demonstrate compliance with the provisions of this paragraph (c) upon at the request of the director. (3) The city City may require any recycler, junk dealer or other enterprise engaged in the business of buying and marketing recyclable materials and compostable materials to provide the city City with information pertaining to such the collection and, including without limitation, the amount of recyclable materials and compostable materials collected from within the city’sPalo Alto’s territorial limits. (d) Collection of Source Separated Single Recyclable Materials. No provision of this chapter shall prevent a recycler, junk dealer or other enterprise engaged in the business of buying and marketing source separated single recyclable materials in the stream of commerce and which buys such materials for marketing and not for disposition in a landfill or transfer station (as defined in Public Resources Code Section 40200), from buying recyclable materials for a monetary or other valuable consideration. ; nor shall any provision of this chapter prevent suchA recycler, junk dealer or enterprise which buys such recyclable materials shall not be prohibited from removing and transporting such those materials to a destination for marketing in the stream of commerce. (e) Renovation, Rebuilding, Repairs. No provision of this chapter shall prevent a commercial/industrial business owner from arranging for any worn, spent, or defective equipment, or part thereof, used in such the commercial business and requiring renovation, rebuilding, recharging, regeneration or repair, to be picked up, renovated, rebuilt, recharged, regenerated or otherwise restored and repaired and returned to such that commercial/industrial business owner.; nor shall any provision of this chapter prevent aAny person engaged in the business of renovating, rebuilding, recharging, regenerating, or otherwise restoring or repairing such the equipment or part thereof, is not prohibited from transporting the same from or returning it to the commercial business, or from removing, transporting or disposing of any suchthe equipment, or part thereof, replaced in connection with an equipment repair or service contract. (f) Contractors' Exclusions. In addition to the authority granted by paragraph (c) of this Section 5.20.110, no provision of this chapter shall prevent a licensed contractor having aunder contract for the demolition or reconstruction of a building, structure, pavement, or concrete installation from marketing any saleable items salvaged from such the demolition or reconstruction, or from causing such the salvageable items or Cconstruction or demolition waste to be removed and transported from the place or premises aton which such waste is generated, pursuant to the provisions of the demolition or construction contract, subject to the following: (1) Such The collection, removal and disposal activity shall be performed only by the licensed contractor having theunder contract for the Cconstruction or demolition work that generated such the salvageable items or Construction or demolition waste, or by regularly employed personnel carried on the licensed contractor's payroll records as an employee. 150807 jb 00710649B 16 (2) For purposes of this paragraph (f), no bins or boxes that are detachable from the vehicle that delivered them to the Construction or demolition site can be used. (23) All vehicles used in to carrying out suchfacilitate the collection, removal and disposal activities shall be owned by or under the exclusive control of the licensed contractor and shall meet all of the requirements of this chapter and all other laws, statutes, rules, regulations and ordinances of the state of California and the cityCity. All vehicles shall be subject to inspection by and the approval of the director from time to time. (g) Reinforced Concrete Exclusion. In addition to the authority granted by paragraph (f) of this Section 5.20.110, nothing in this chapter shall prevent a commercial/industrial business owner, residential householder, or licensed contractor from using a solid waste enterprise other than the collector to dispose of reinforced concrete. (h) Document Destruction Service. No provision of this chapter shall prevent any person engaged in the business of destroying or disposing of secret, confidential or sensitive documents from transporting or disposing of such those documents, provided the transport and disposal of the documents are incidental to the as a part of such document destruction or disposal service. (i) Self-Haul Exclusion. In addition to the authority granted by paragraph (a) of this Section 5.20.110 nothing in this chapter shall prevent a commercial/industrial business owner or residential householder from, on a regular basis, collecting and disposing of solid waste generated in or onat their place or premises, in lieu of availing themselves of the services of the collector. No residential householder or commercial/industrial business owner shall employ or engage any solid waste enterprise, other than the collector, to haul or transport such materialsthe solid waste to a disposal or processing facility. Any residential householder or commercial/industrial business owner who pursuant to this paragraph (hi) seeks to on a regular basis collect and dispose of solid waste generated in or onat the place orir premises, must shall first obtain a self-haul permitapproval from of the directorcity, and must comply with the procedures for applicable to self-hauling that areto be adopted by the city council by resolution. (j) General Requirement. In all cases where the right to an exclusion pursuant to this Section 5.20.110 is exercised, disposal shall be made at a disposal or processing facility which that meets all applicable regulatory requirements. Any disposal by a person exempted under this section shall not be relieved such person from of any obligation or liability imposed by this chapter or any other city ordinance, resolution, rule or regulation for the payment of the minimum solid waste and recyclable materials disposal rates imposed pursuant to this chapter, or or of rates for the use of the city landfill, or of any other applicable rates or fees. Notwithstanding the foregoing, any person with a valid self-haul permit obtained pursuant to paragraph (hi), and who does not use the solid waste collection services offered by the collector, shall be exempt from the payment of the solid waste collection rates imposed for use of the services provided by the collector. 150807 jb 00710649B 17 (k) Backhauling Compostable Materials. A commercial business may opt out of the compostable materials service levels required by this chapter, provided that business verifies to the satisfaction of the director that all compostable materials generated on-site will be transported to a central facility to be later composted or otherwise recycled at a 90 percent rate and not placed in a landfill. (l) Space Limitations for Existing Structures. The director may grant a written exemption for any existing commercial business structure that lacks sufficient storage space for compostable materials or recyclable materials from all or portions of this section in accordance with the written rules and regulations established by the director. The director, in cases where space constraints are determined to exist, shall also evaluate the feasibility of shared container usage by contiguous businesses or multifamily property structures. (m) De Minimus Exception. The director may waive any of the requirements of this section if documentation satisfactory to the director, based upon rules and regulations, is provided to establish that the materials in any type of container, on an on-going basis is incidental to any other materials originating from that collection location. 5.20.120 Recycling storage design requirementsRefuse containers. The design of any new, substantially remodeled, or expanded building or other facility shall provide for proper storage, handling, and accessibility which will accommodate the Solid waste and Recyclable materials loading anticipated and which will allow for the efficient and safe collection. The design shall comply with the applicable provisions of Sections 18.22.100, 18.24.100, 18.26.100, 18.32.080, 18.37.080, 18.41.080, 18.43.080, 18.45.080, 18.49.140, 18.55.080, 18.60.080, and 18.68.170 of Title 18 of this Code. (a) All types of refuse containers shall be kept in a sanitary condition with the lids closed except whenever they are being loaded or unloaded. (b) Refuse containers suitable for residential places or premises shall be provided by the collector or the City. Any container shall be of a size based upon the subscription service level requested by the person responsible for the payment of charges therefor or as may be required by this chapter. Any container shall not be loaded with more than the quantity of materials that either can fit in the container with its lid closed or is in excess of the weight limit marked on the container, when the lid is closed. All containers for use at commercial premises shall be provided by or approved by the collector, except for industry-approved grease or cooking oil tallow containers that shall be provided by a designated tallow hauler. (c) Refuse containers shall be collected by the collector whenever the containers are placed in a solid waste enclosure or at the authorized collection area. Collection may be made at another location upon approval of the director, based upon the subscription service level requested. 5.20.130 Maintenance and placement of bins, boxes, and containers. 150807 jb 00710649B 18 (a) The commercial/industrial business owners andor residential householder , as the case may be, shall maintain their bins, boxes, and containers on at their places and premises, and the areas in whichwhere the containersy are located, in a good, usable, clean and sanitary condition, and shall ensure that the lids or cover on the bin, box, or container is are kept fully closed, and shall ensure that there is no litter underneath or surrounding the containers. No refusesolid waste or recyclable materials are shall be placed outside of the bin, box, or container. Bins, boxes, and cContainers shall at all times be maintained by the commercial business owners and residential householders kept in a manner that will prevents leakage, spillage and the escape emission of odors. Commercial premises sharing receptacles placed outside of retail areas, must also share equally in the responsibility of emptying the receptacles so that they do not overflow and maintaining the area around the receptacles so that it is free of loose litter. (b) The location or placement of bins, boxes, or containers at any place or premises shall be subject to the approval of the director. Every commercial/industrial business owner shall provide a location on at the commercial/industrial premises for the bins, boxes, and/or containers they use, and shall keep the area in good repair. (c) Any collection agreement may provide for the rental of approved bins, boxes and containers approved by the collector to customers. The collector shall be responsible for maintaining maintenance of the bins, boxes andrental containers by keeping the containers in good and sanitary condition (ordinary wear and tear excepted) and shall repaint such the bins, boxes and containers at a frequency as determined by the citydirector. The collector and the renter shall determine and agree upon plan with the customer the placement of the bins, boxes, and containers to minimize traffic, aesthetics and other potential effects that may be problems associated with their placement. (d) Where a bin, box, or container is not rented from the collector but is rented from another solid waste enterprise and approved by the cityCity, the customer renter shall be responsible for ensureing that the bins, boxes, or containers meets the same standards of quality and upkeep as aremaintenance applicable to the bins, boxes, and containers supplied by the collector. The renter shall procure the written standards or rules and regulations of the collector prior to renting from another solid waste enterprise. (e) Anyll bins, boxes, and containers of a one cubic yard or more greater size shall be identified with the name and telephone number of the collector or other solid waste enterprise servicing the bins, boxes, and containers. The container shall be identified by the type of materials that can be deposited in the container.. 5.20.140 Frequency of solid wasterefuse collection. The Collector or his or herits duly authorized agents or subcontractors shall collect solid wasterefuse from all residential premises and commercial/industrial premises within the cityPalo Alto at least once a week, unless the director authorizes less a different frequency oft collection as provided in Section 5.20. 150807 jb 00710649B 19 5.20.150 Collection hours, quietness of collections, and collection of equipment. (a) Solid waste and recyclable materials collectionsRefuse shall be made collected only between the hours of six 6:00 a.m. and six 6:00 p.m. in residential districts and at schools, churches, and commercial premises located in commercial districts properties adjacent to residential districts. (b) Refuse shall be collected only between the hours of 4:00 a.m. and 9:00 p.m. Solid waste and recyclable materials collections in commercial districts other than as indicated in (a) above shall be made between the hours of four a.m. and nine p.m., subject to such any reasonable modifications of collection periods as the director may impose. (c) All collections shall be made as quietly as possible. All trucks and equipment for solid waste and recyclable materialsrefuse collection shall be operated in a manner that complies comply with the noise ordinance codified in the provisions Chapter 9.10 Title 9 of the municipal Municipal codeCode. All unnecessarily noisy trucks or equipment for such collections are prohibited. 5.20.160 Litter, Sspillage or leakage of solid waste and recyclable materialsrefuse. All solid waste and recyclable materialstypes of refuse hauled by any person over public streets in the cityPalo Alto shall be securely tied and covered during hauling thereof so asin order to prevent litter and the leakage, spillage, or blowing or dropping of refuse of any type on to public streets. No person shall allow any solid waste or recyclable materials of any kind whatsoevertype of refuse to leak, spill, scatter, blow or drop from any vehicle operated on any public streets within the CityPalo Alto. 5.20.170 Special permits in hardship cases. (a) Upon a showing of hardship by the owner, or occupant or tenant of a place or premises, the director may issue or cause to be issueda special written permits authorizing variations froma variance with the provisions of this chapter yet the variance will be subject to the imposition of such terms and conditions as the or shedirector may deem necessary to protect the public health, and safety and welfare. 5.20.180 No Accumulation of solid waste or recyclable materialsrefuse. (a) Every No person shall keep the place or premises occupied by him or her, and every owner of any unoccupied place or premises shall keep the same, in a clean and sanitary condition and shall not cause, suffer or permit any solid wastetype of refuse to accumulate in, on or about suchat its place or premises for a period in excess of one calendar week, except the director may authorize by written rules and regulations a different frequency of less frequent collection, removal and disposal of refuse for compactors at commercial/industrial premises. This provision shall not be construed to prohibit any person from keeping temporarily storing building materials in, on or aboutat any place or premises during the period of active 150807 jb 00710649B 20 construction, reconstruction or repair of a building or structure thereon under a current valid building permit, nor the keeping ofstoring wood neatly piledin an orderly pile upon suchat the place or premise for household use, nor the retaining compostable materials for home composting of yard trimmings purposes. 5.20.190 No bBurning, burial, or dumping of solid waste or recyclable materialsrestrictions. (a) No person shall burn any solid waste or recyclable materialsrefuse within the cityPalo Alto at any time. (b) No person shall bury or dump any solid waste or recyclable materialstype of refuse within the cityPalo Alto. Compostable materials may be buried on-site by the occupant of the residential place or premises, except at the city landfill in accordance with the procedures thereof, at any time. 5.20.200 Hazardous waste. No person shall deposit any Hazardous hazardous waste in the city landfill nor in any bin, box, ora container. 5.20.210 Manure containers required. (a) Any and all manure produced, kept or accumulated within or upon any place or premises shall be placed without delay in a manure container. (b) All manure containers shall be kept closed at all times excepting when the manure is being placed into or taken out of the manure containers and shall be kept at all times in the rear of the place or premises and not less than one hundred feet or thirty and one-half meters from any residence. (c) Manure may be mixed with solid waste in the same standard container when it is to be disposed of with and in the same manner and at the same time as solid waste, but in such case, each standard container so used, including its contents, shall not exceed sixty pounds or twenty-seven kilograms in weight, and shall be equipped with a lid or cover adequate to keep flies from the interior thereof. 5.20.220 Scavenging prohibited. (a) No person shall scavenge in any city-operated Disposal or processing facility, including the city landfill, nor disturb nor remove any material therein, without the express advance permission of the director. (ab) No person shall tamper with, modify, scavenge from or deposit any type of refuse placed in any refuse container solid waste or recyclable materials in, any solid waste or recyclable materials bin, box, or container which has is not been provided for his or herthe use 150807 jb 00710649B 21 of that person, without the permission of the person responsible for owner of the container and payment of the fees therefor under this chapter. (bc ) Except as otherwise provided in Sections 5.20.090110 and 5.20.110090 of this code, no person shall collect any type of refuse originating the recyclable materials from any residential place or premises or any posted recycling centers within the cityPalo Alto. (cd) The foregoing prohibitions are in addition to the prohibitions set forth in Section 41950 et seq. of the Public Resources Code. 5.20.230 No trespassing in city landfill. No person shall enter, be upon, or remain in the city landfill, except during the hours of operation posted on the main entrance thereto, or except as may be authorized in advance by the director. 5.20.240 Schedule of rates for the use of the city landfill. (a) The schedule of rates for the classification of vehicles carrying the solid waste and the maximum load for use of the city landfill shall be set forth in the municipal fee schedule. (b) Vehicles operated by the city may be allowed toll-exempt use of the city landfill. Vehicles operated by any collector of the city may also be exempt if their contract so provides, and the collector produces the same for inspection if requested by a city landfill employee. (c) Vehicles owned by the Palo Alto Unified School district may be allowed toll-exempt use of the City Landfill. 5.20.250 Liability for payment of rates. (b) Except as set forth in Section 5.20.110(h), every person with residential premises or commercialoccupying, owning, controlling, or maintaining place or premises within the cityPalo Alto shall be liable for the payment of the refuse service rates, including any solid waste collection rates authorized by the cityCity. 5.20.260 Penalty for failure to pay collection rate. (a) All collection rates and charges imposed by the council Council pursuant to the provisions of this chapter for the collection, removal and disposal of solid wasteall types of refuse shall be a civil debt owing to the city City from the owner, occupant or person maintaining or controlling the place or premises receiving the services. (b) All such collection rates and charges shall be billed along with other municipal utility bills, if so billed, and shall be subject to the provisions of the city’s City’s utility rates and regulations governing the collection and payment of other utility rates. The City may by agreement permit the collector or other person to collect the applicable rates and charges for 150807 jb 00710649B 22 refuse service. Notwithstanding the foregoing, fees for the use of drop-boxes may be collected by the collector. (c) The collection of the rates imposed pursuant to this chapter shall be in addition to any other remedies available to the city City for the failure of any person to pay the rates. 5.20.280 Administration by city City manager. (a) The city City manager or designee shall adopt such written rules and regulations, not inconsistent with this chapter, as may be necessary for the proper administration and enforcement of this chapter. Such The written rules and regulations may include, but are not limited to, regulations relating to the required frequency of solid waste and recyclable materialsrefuse collection from various types of places or premises, the types of special bins, boxes, and containers required for placement at certain classes of places or premises, and regulations governing the vehicles used in making such collections, and regulations governing the use and operation of the city landfill. (b) The city City manager shall resolve all disputes concerning the administration or enforcement of this chapter, and. H his or her decision in such matters shall be final. 5.20.290 Penalty for violation. Violation of any provision of this chapter shall be subject to the provisions and penalties set forth in Title 1 of the Municipal Code unless otherwise specified.this code. SECTION 2. Section 18.32.020 of Chapter 18.23 of Title 18 is hereby amended to read, as follows: 18.23.020 RefuseTrash Disposal disposal areasand Recycling (A) Purpose Assure that development provides adequate and accessible interior areas or covered exterior enclosures for the storage of trash and recyclable materialsrefuse in appropriate containers with storage capacity for a maximum of one week,, and that trash refuse disposal and recycling areasstructures and enclosures are located as far from abutting residences as is reasonably possible. (B) Requirements (i) Refuse disposal and structures and enclosures Trash disposal and recyclable areas shall be accessible to all residents or users of the property. (ii) Compostable materials and recyclable materials Recycling facilities shall be located, sized, and designed to encourage and facilitate convenient use. 150807 jb 00710649B 23 (iii) Refuse disposalTrash disposal and recyclable areas shall be screened from public view by masonry or other opaque and durable material, and shall be enclosed and covered. Gates or other controlled access shall be provided where feasible. Chain link enclosures are strongly discouraged. (iv) Refuse disposal structures and enclosures Trash disposal and recycling structures shall be architecturally compatible with the design of the project. (v) The design, construction and accessibility of recycling refuse disposal areas and enclosures shall be subject to approval by the architectural review boardArchitectural Review Board, in accordance with design guidelines adopted by that board Board and approved by the city councilCouncil pursuant to Section 18.76.020. SECTION 3. The Council finds that the adoption of this ordinance is not considered a project under the California Environmental Quality Act or the CEQA Guidelines, therefore, no environmental impact assessment is necessary. // // // // SECTION 4. This ordinance shall be effective on the commencement of the thirty-first day after the date of its adoption. 150807 jb 00710649B 24 City of Palo Alto (ID # 6487) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Resolution Approving Terms for PAPMA Title: Adoption of Resolutions Approving Terms of Agreement With the Palo Alto Police Managers' Association and Amending the Merit System Rules and Regulations to add Chapter 19 (PMA Agreement) From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the City Council: (1) Approve and authorize the City Manager to sign the attached Letter Agreement setting certain wages, benefits, and terms and conditions of employment for employees represented by the Palo Alto Police Managers’ Association (PAPMA); and, (2) Adopt the attached resolution adding Chapter 19 to the Merit System Rules and Regulations incorporating collectively bargained agreements for PAPMA into the City’s Merit Rules and Regulations At the time of this writing, the Letter Agreement is pending ratification by PAPMA membership; staff will remove this item from the Council’s agenda in the event the Letter Agreement is not ratified prior to the Council meeting. Background The Palo Alto Police Lieutenants and Captains separated from the unrepresented Management/ Professional Unit and formed their own bargaining unit (PAPMA) in late 2009. The unit consists of 7 Full Time Equivalent employees. The City began bargaining with PAPMA in early 2010 to create an initial Memorandum of Agreement (MOA) and to negotiate concessions to pay and benefits consistent with other managers at the City. The parties did not reach agreement and the City declared impasse in May 2012. The City implemented six terms modifying benefits for PAPMA employees in July 2012. (CMR #3034). In early May 2013, the parties re-commenced bargaining on an initial MOA. The parties reached agreement on several additional employee concessions and changes to pay consistent with changes made in the Management/Professional unit, but were unable to reach agreement City of Palo Alto Page 2 on all terms. In June 2013, the parties agreed to implement a limited number of tentative agreements immediately via letter agreement, while continuing negotiations towards an overall MOA. (CMR #3902). In the absence of a Memorandum of Agreement formalizing all pay, benefits and working conditions, the City is generally obligated to maintain the status quo represented by the Management and Professional Compensation Plan effective in 2009, except as modified by the parties’ agreement and/or those terms imposed by the City Council following a declaration of impasse. Discussion Following the City Council’s approval of the June 2013 letter agreement, the parties have continued to meet occasionally to work towards a full MOA. Recently, the parties reached agreement on several key proposals, including salary, health benefits, retirement benefits, and retiree health benefits, to be implemented through June 30, 2017. The parties have reduced these agreements to writing in the attached Letter Agreement (Attachment A), which is now before the Council for approval. A. Salary The parties have also agreed to modify the Captain and Lieutenant pay ranges consistent with the changes being proposed for the Palo Alto Police Offices’ Association. The movement of pay ranges will result in an increase to the current pay of PAPMA members. Upon ratification, the Captain and Lieutenant classifications will receive a 2.5% general salary increase as well as a 3% market/equity adjustment. On June 30, 2016 and June 30 2017, the Captain and Lieutenant classifications will receive an additional 2.5% general salary increase as well as a 0.5% market/equity adjustment. In the event the parties are unable to reach agreement and approve/ratify an MOA by June 30, 2016, the terms of the Letter Agreement will remain in effect, but salary and market adjustments for the pay periods including June 30, 2016 and June 30, 2017 will be converted to 0% (zero percent). B. Retirement Currently, all unit members pay the full 9% California Public Employees Retirement System (CalPERS) Member Pension Contribution. The parties have agreed to modify the Member Pension Contribution by increasing their contribution towards the Employer share of Pension in accordance with California Government Code Section 20516 (Employees Sharing Additional Cost). Upon ratification and as soon as administratively possible, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension. Effective the pay period that includes June 30, 2016, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 2%. Lastly, effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution City of Palo Alto Page 3 required, pay an additional 1% towards the Employer share of Pension for a total of 3% and shall extend beyond the expiration of this Letter Agreement. C. Active health benefits In 2014, the City moved to health premium contributions based on fixed dollar amounts rather than percentage contributions for employees in the Service Employees International Union (SEIU) and Management and Professional units. Under this Letter Agreement, the City’s contributions for PAPMA will similarly be converted to fixed dollar contributions. D. Retiree health benefits The City currently administers a multi-tiered system of retiree medical benefits with different benefits and/or requirements based on hire date and retirement date. Most pertinent to this discussion, management employees hired before January 1, 2004 currently receive benefits under section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA) upon retirement, while management employees hired on or after January 1, 2004 currently receive benefits under section 22893 of the PEMHCA upon retirement. Section 22892 simply requires employers to provide benefits in an equal amount for both employees and retirees. Section 22893, by contrast, provides benefits to retirees on a graduated scale based on years of service and a statewide average of healthcare costs calculated by CalPERS. Although the City originally shifted new hires to benefits under section 22893 as a cost-saving measure, in recent years, some employees have expressed a preference for the benefit structure under section 22893 (i.e. the post-2004 benefit) rather than the benefit structure of section 22892 (i.e. the pre-2004 benefit). In June 2015, the City Council approved a settlement agreement providing active Palo Alto Police Officers’ Association (PAPOA) members subject to the section 22892 benefit with a one- time, irrevocable option to elect benefits under section 22893. (CMR #5834). As part of this Letter Agreement, eligible PAPMA members would receive a similar one-time opt in. E. Remaining negotiations The parties have set a deadline of June 30, 2016 to reach agreement on a full MOA. Over the past several years, the parties have reached a number of tentative agreements on almost all aspects of an MOA and the current Letter Agreement addresses several key issues. While a few issues remain outstanding that may require additional negotiations, the parties are confident that they will be able to finalize an initial MOA in short order. As noted above, in the event the parties are unable to reach agreement on and approve/ratify an MOA by June 30, 2016, the terms of the Letter Agreement will remain in effect, but salary and market adjustments for the pay periods including June 30, 2016 and June 30, 2017 will be converted to 0% (zero percent). Policy Implications City of Palo Alto Page 4 Approval of the proposed settlement and adoption of the associated resolutions is consistent with the Council’s policy direction to seek structural changes in employee compensation, including changes in active and retiree medical benefits. Resource Impact The incremental cost of this package (over current costs for PAPMA) over the one and a half year term is approximately $154,734 in the General Fund. This represents approximately 7.6% of budgeted total compensation (salary and benefits) for PAPMA. The total cumulative cost over the two year term of the agreement is approximately $317,736 in the General Fund. Any salary and benefit cost changes due to this agreement will be incorporated in the FY 2017 Proposed Budget scheduled for release to the City Council late April 2016. Environmental Review Approval of the Letter Agreement and adoption of the associated resolution are not projects for purposes of the California Environmental Quality Act and therefore no environmental review is required. Attachments:  2015-12-22 (2015 PMA Letter) Reso Adding Chapter 19 to MSRR (PDF)  PMA Salary Schedule (PDF)  PMA Side Letter Draft (PDF) NOT YET ADOPTED  20151222 jjs 016‐HR 1  Resolution No. _____  Resolution of the Council of the City of Palo Alto Adding Section 1901  to the City of Palo Alto Merit System Rules and Regulations,  Incorporating by Reference Collectively Bargained Agreements with  the Palo Alto Police Managers’ Association   The Council of the City of Palo Alto RESOLVES as follows:    SECTION 1.  Section 1901 of the Merit System Rules and Regulations is hereby added to  read as follows:    “1901. Memorandum of Agreement incorporated by reference. Upon adoption  by the Palo Alto City Council and for the duration of its effective term, any  Memorandum of Agreement or other collectively bargained agreement by and  between the City of Palo Alto and the Palo Alto Police Managers’ Association  (PAPMA) is hereby incorporated into these Merit System Rules and Regulations  by reference as though fully set forth herein. Said agreement shall apply to all  employees in classifications represented by PAPMA, except where specifically  provided otherwise herein.    In the case of conflict with this chapter and any other provisions of the Merit  System Rules and Regulations, this chapter will prevail over such other provisions  as to employees represented by said PAPMA.”    SECTION 2.  It is not the intent of the City Council in adopting this Resolution to create  any right or obligation extending beyond the effective term of any collectively bargained  agreement.    SECTION 3.  The Council finds that this is not a project under the California  Environmental Quality Act and, therefore, no environmental impact assessment is necessary.    INTRODUCED AND PASSED:    AYES:     NOES:     ABSENT:     ABSTENTIONS:    ATTEST:        ___________________________  ______________________________  City Clerk     Mayor    APPROVED AS TO FORM:    APPROVED:    ___________________________  ______________________________  Deputy City Attorney    City Manager    NOT YET ADOPTED  20151222 jjs 016‐HR 2        _____________________________        Director of Administrative Services           ____________________________        Director of Human Resources    Job Code FLSA Status Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 $ 67.50 $ 84.37 $ 101.25 $ 14,624.00 $ 175,490.00 149 Exempt Police Liet-Adv 086 $ 58.56 $ 73.19 $ 87.83 $ 12,686.00 $ 152,235.00 Effective 06/30/2016 Job Code FLSA Status Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 $ 69.53 $ 86.91 $ 104.30 $ 15,064.00 $ 180,773.00 149 Exempt Police Liet-Adv 086 $ 60.32 $ 75.39 $ 90.47 $ 13,068.00 $ 156,811.00 Effective 06/30/2017 Job Code FLSA Status Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 $ 71.62 $ 89.52 $ 107.43 $ 15,517.00 $ 186,202.00 149 Exempt Police Liet-Adv 086 $ 62.13 $ 77.66 $ 93.20 $ 13,461.00 $ 161,533.00 *If the parties reach agreement on an MOA that is approved by the City Council and ratified by the Union by June 30, 2016, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on June 30, 2016 and June 30, 2017. If an MOA is not approved and ratified by June 30, 2016, salary increases and market adjustments shall be 0% for both June 30, 2016 and June 30, 2017. City of Palo Alto  Police Management Association Salary Schedule  Effective upon ratification Effective 06/30/2017* Effective 06/30/2016* • CITY OF PALO ALTO TO: CITY OF PALO ALTO MEMORANDUM HONORABLE CITY COUNCIL Item# 19 FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES AGENDA DATE: JANUARY 11, 2016 SUBJECT: Resolution Approving Terms for PAPMA RE: PMA Side Letter Agreement . ID#:6487 The attached agreement with PMA is being placed into the Council packet late due to the winter holidays and the need to have the agreement reviewed by legal counsel. The attached agreement was signed by PMA on January 4, 2016. ·�s�� Assistant City Manager Attachment City of Palo Alto and Palo Alto Police Managers' Association Letter Agreement: January 11, 2016 -June 30, 2017 Section I. Introduction and Term In 20 I 0, the City of Palo Alto (City) and the Palo Alto Police Managers' Association (Association) began formal negotiations to complete the first Memorandum of Agreement (MOA) between the City and Association. In 2013, although the parties have previously reached a number of tentative agreements, both parties recognize that there remain a limited number of issues to be resolved before a complete MOA can be prepared for approval by the City Council and ratification by the Union. While the parties continue to work towards an MOA, they wish to memorialize and implement the following key terms without further delay. The term of this Letter Agreement shall commence on January 11, 2016 and shall expire on June 30, 2017. Although the parties will continue to meet and confer regarding an MOA during the term of this Letter Agreement, neither party shall be obligated to bargain with respect to any matter specifically addressed herein. Nothing in this Letter Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation at any time. The terms of this side letter shall be incorporated in the final MOA representing the term of January 11, 2016 to June 30, 2017. Section II. Salary Etlective the first full pay period after ratification by the Association and City Council approval of the Side Letter, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased as set forth in Appendix A-I to reflect salary increases and market adjustments. If the parties reach agreement on an MOA that is approved by the City Council and ratified by the Union by June 30, 2016, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on June 30, 2016 and June 30, 2017 as set forth in Appendix A-2. If an MOA is not approved and ratified by June 30, 2016, salary increases and market adjustments shall be 0% for both June 30, 2016 and June 30, 2017. Section III. Retirement A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (Cal PERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the ·'single highest one (I) year period" per California government Code section 20042. All unit members in the 3%@ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. City of Palo Alto and Palo Alto Police Managers' Association Letter Agreement: January 11, 2016 -June 30, 2017 B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the Cal PERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. C. Third Tier "2.7% at 57" Safety Retirement ("New" PEPRA Employees) For those employees hired on or after January I, 2013, the Cal PERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate wi II be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law. D. Additional Employee PERS Contributions Effective as soon as administratively possible all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required per CalPERS 20516 contract amendment, pay an additional 1 % towards the Employer share of Pension. Effective the pay period that includes June 30, 2016, all employees regardless of pension formula in this unit shall, in addition lo the Member Contribution required, pay an additional I% towards the Employer share of Pension for a total of 2%. Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional I% towards the Employer share of Pension for a total of 3%. Such contributions under CalPERS 20516 will be provided on a pre­ tax basis to the extent allowable by law. E. 1959 Survivor Benefit The City will continue to provide the basic level (Level I) of the 1959 Survivor Benefit to eligible employees per Government Code section 21571. F. Military Service Credit The City will continue to contract with CalPERS to provide Military Service Credit as Public Service. City of Palo Alto and Palo Alto Police Managers' Association Letter Agreement: January 11, 2016 -June 30, 2017 Section IV. Active Health Plans The maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical PEMHCA Additional Ci!Y Total maximum City Total maximum City Premium contribution* Contribution contribution* contribution* Category 2016 (effective pay period (effective pay period including January I I, including January I, 2016) 2017) Employee $125.00 $618.00 $743 $773 only Employee+ $125.00 $1,360.00 $1,485 $1,544 I Employee+ $125.00 $1,806.00 $1,931 $2,008 2 or more *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. This contribution amount is based on half of the eight percent historical trend. Section V. Retirement Medical Plan A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January I, 2004 as outlined below. For employees who retire before June I, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January I, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Emplovees Hired on or After January l, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above: City of Palo Alto and Palo Alto Police Managers' Association Letter Agreement: January 11, 2016 -June 30, 2017 The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January l, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (I 0) years; each additional service credit year after Ten (I 0) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred ( l 00%) percent of annuitant­ only coverage and Ninety (90%) percent of the additional premium for dependents. Palo Alto Police Managers' Association City of Palo Alto Date Dania Torres Wong Date Date Natalie Korthamar Date Sandra Blanch Date Molly Stump Date Jim Keene Date City of Palo Alto (ID # 6381) City Council Staff Report Report Type: Action Items Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Public Hearing on Objections to Weed Abatement and Adoption Title: PUBLIC HEARING: on Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated From: City Manager Lead Department: Fire Recommendation Staff recommends that Council hold a public hearing to hear and consider any objections to the proposed destruction and removal of weeds, and adopt the attached Resolution (Attachment A) ordering the abatement of weed nuisances in the City of Palo Alto. Executive Summary The City of Palo Alto contracts with Santa Clara County Agriculture and Resource Management to remove and destroy weeds, as defined in Chapter 8.08 of the Palo Alto Municipal Code. This hearing allows all those affected and listed on the County’s 2016 Weed Abatement Program Commencement Report (Attachment B) to be heard and have their objections and comments considered by Council before the Council adopts a Resolution ordering the abatement of weed nuisances in the City. Background The Council adopted Resolution 9569 on December 14th, 2015 and declared weeds to be a nuisance and ordered the abatement of that nuisance as called for in Chapter 8.08 of the Palo Alto Municipal Code. The Resolution provided for a public hearing date of January 11th, 2016 and required notice to interested property owners and the public. Updated fees associated with the Weed Abatement Program are included as Attachment C. Discussion The Santa Clara County Department of Agriculture and Resource Management administers the contract for abatement of weeds within the City of Palo Alto. Upon notification of the City Council’s December 14, 2015 action declaring weeds to be a nuisance and ordering abatement thereof, the Department of Agriculture and Resource Management took proper steps to notify City of Palo Alto Page 2 each property owner by mail of the proposed weed abatement action on respective properties and posted, on the public notice bulletin board, a list of the properties affected. The Department of Agriculture and Resource Management has furnished copies of the property listing to the City Clerk and the City Fire Marshal. The City Clerk also posted and published notice of the hearing as required. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the Council may allow or overrule any or all objections. If objections are overruled, the Council is deemed to have acquired jurisdiction to proceed with abatement of weed nuisances upon Council Adoption of the attached Resolution. The County will be asked to perform the abatement work to destroy and remove any weeds. Resource Impact All Charges for the weed abatement services are included as a special assessment on bills for property taxes levied against the respective lots and parcels of land, which are considered liens on these properties. Policy Implications This procedure is consistent with existing City policies and Chapter 8.08 of the Municipal Code. Environmental Review Santa Clara County has determined the Weed Abatement Program to be Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Sections 15308. Attachments:  Attachment A: Resolution - Ordering Weed Nuisance Abated (PDF)  Attachment B: 2016 PA Commencement Report (PDF)  Attachment C: 2016 PAL Notice Price (PDF) Attachment A {date] sh ________1 Resolution No. _____ Resolution of Intention of the Council of the City of Palo Alto Declaring Weeds to be a Nuisance and Setting January 11, 2016 for a Public Hearing for Objections to Proposed Weed Abatement R E C I T A L S A. On December 14th, 2015, the Palo Alto City Council adopted Resolution No. 9569 declaring weeds to be a nuisance and setting January 11th, 2016 at 6:00 p.m., or as soon thereafter as the matter may be heard, in the Civic Center as the time and place for a hearing of objections to the proposed destruction and removal of weeds; and B. In accordance with said Resolution, notice of such hearing was given in the manner provided by law, as appears from the affidavits on file in the Office of the City Clerk; and C. All persons desiring to be heard were given an opportunity to be heard, and all matters and things pertaining to said weed abatement were fully heard and considered by this Council. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Any and all objections to the proposed destruction and removal of such weeds are overruled. SECTION 2. The Fire Chief hereby is ordered to do all things necessary and authorized in Chapter 8.08 of the Palo Alto Municipal Code to abate such nuisance, or cause the same to be abated by contract with the County of Santa Clara. // // // // // // // Attachment A {date] sh ________2 SECTION 3. The County of Santa Clara as lead agency has determined that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15308 as an action by regulatory agencies authorized by state or local ordinance to assure the maintenance, restoration, enhancement, or protection of the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Fire Chief _____________________________ Director of Administrative Services 2016 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO EXHIBIT A ll19 931 2s8 I J5 435 2225 425 739 780 3 t0l 3085 609 3489 315 Situs APN AV 003-21-063 sT 003-34-006 RD 120-02-017 sr 120-27-463 AV 124-49-429 sr 124-20-AA1 AV 124-31-427 AV 127-34-101 DR 127-35-030 RD 127-53-007 RD 127-53-008 AV 132-A4-1A2 sT 132-05-108 AV 132-32-A29 AV 132-32-037 RD 132-32-054 1 32-33-050 AV 132-34-012 AV 132-34-425 AV 132-34-032 BLV132-34-050 132-41-472 13246-107 FIFE GUINDA MIDDLEFIELD RAMONA SEALE ALMA STANFORD COLORADO CLARA MIDDLEFIELD MIDDLEFIELD ASHTON COWPER OLIVE OLIVE PAGE MILL NO SITUS FERNANDO MATADERO MATADERO PARK CURTNER EL CAMINO JUE KENNETH R GOUYET ALBERT AND CALISA C EQUITY SMART INVESTMENTS LP KODA ROSS K TRUSTEE BOWERS THOMAS A TRUSTEE & ET LEE STEPHEN AND YVETTE C NICHOLLS MAzuE L TRUSTEE HUANG HSING Y ETAL BANQUE RAYMOND J FISHER LLC WINDY HILL PV 3 LP DOROTHEA DIANA MC CALLEY RODEzuCK C ET AL SMITH BOYD C AND JILL J TRUSTEE SI 43 LLC HOHBACH REALTY CO LP AT&T Communications ATT: Richard S. REHABILITATION HOUSING AJLOLIN ENTERPRISES LLC RUEHL KARL K AND SIGRID T BROSZ KAROLYN CURTNER iNVESTMENT GROUP LLC NULL POBOX33 93I GUINDA ST 57OI LONETREE BLVD UNIT P O BOX 156 435 SEALE AVE 2225 ALMAST 425 STANFORD AVE 757 SEMINOLE WAY 780 CLARA DR 4861 SALLY CT 530 EMERSON ST STE 150 609 ASHTON AVE 3489 COWPER ST 3260 ASH ST IO6OO N DE ANZA BL STE 2OO 29 LOWERY DR 870 N. MCARTHY BLVD. 1796 BAY RD 186 CAMELIA DR 2391 GABRIEL AVE 3605 PARK BLVD 1880I BELGROVE CIR 4073 EL CAMINO REAL (-TTY/STATF', PALO ALTO PALO ALTO ROCKLTN SOUTH DOS PALOS PALO ALTO PALO ALTO PALO ALTO PALO ALTO PALO ALTO LTNION CITY PALO ALTO PALO ALTO PALO ALTO PALO ALTO CUPERTINO ATHERTON MILPITAS EAST PALO ALTO DALY CITY MOLTNTAIN VIEW PALO ALTO SARATOGA PALO ALTO CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA 94302-0083 94301-3319 9s76s 9366s 94301-3828 94301-3905 94306-1149 943034723 94303-390s 94587 94301 94306-3610 94306-36r7 94306 95014 94027 95035-5 125 94303 94015 94040-1415 94306-2853 9s070 94306-4002 195 325 220 290 3605 405 4073 23 records of 54 Santa Clara County Weed Abatement Program Page 1 Situs 2016 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CITY OF PALO ALTO EXHIBIT A (-ÍTY/STATF', 4195 2321 2238 2250 2t95 2120 3700 3741 4031 795 4175 531 590 4155 3460 3495 3500 4208 295 262 285 849 4243 EL CAMINO WELLESLEY COLUMBIA COLUMBIA COLUMBIA COLUMBIA EL CAMINO LAGLiNA AMARANTA CEREZA ALTA MESA IRVEN MAYBELL AMARANTA HILLVIEV/ DEER CREEK DEER CREEK W RUTHELMA CHARLESTON W WHITCLEM CHARLESTON MESA MANUELA HOUSTON BERKELEY PALO ALTO PALO ALTO PALO ALTO PALO ALTO LOS ALTOS PALO ALTO PALO ALTO PALO ALTO PALO ALTO SANTA CLARA PALO ALTO REDWOOD CITY SAN FRANCISCO PORTOLA VALLEY PALO ALTO PALO ALTO PALO ALTO PALO ALTO PALO ALTO PALO ALTO LOS ANGELES ST ST ST ST ST APN 132-46-119 137-02-024 1 37-05-094 1 37-05-095 1 37-06-036 '137-06-0BB 137-11-078 1 37-1 4-069 137-21-434 137-21-064 137-25445 137-25-OA8 1 37-25-088 137-26-401 142-16-459 142-16-062 142-16-A66 148-02-002 1 48-02-01 0 148-02-444 148-03-033 175-41-437 1 75-02-053 CALIFORNIA LUBzuCANTS REAL CULPEPPER BENJAMIN J BANNICK MATTHEW TRUSTEE TAGGART KENNETH AND CYNTHIA EDELMAN ANDREA TRUSTEE HALL LOIS M TRUSTEE KSS INVESTMENT LLC BENES FRANCIS M ET AL HAMLETT MILDRED LAMB MARY ELLEN ALINA MYRNA AND MYRNA ALINA JANUARIO AMERICO M AND LINDA A VILKIN PETER CORLAYNANCY LELAND STANFORD JR LTNIV THE BD LELAND STANFORD JR UNIV BOARD LELAND STANFORD JR LINIVERSITY SHIU BOON W HE SHUDONG AND CHEN ZHENG VAN ZANT STEVEN L NGUYEN JIM T.L.T. LLC WEAKLAND ALAN TRUSTEE & ET AL PO BOX 2967 335 PANORAMIC WAY 2238 COLUMBIA ST P O BOX 51177 2195 COLUMBIA ST 1I35 HOPKINS AVE 1380 MIRAVALLE AVE 3747 LAGLTNA AVE 403 I AMARANTA AVE 795 CEREZA DR 4175 ALTA MESA AVE 2422 GALLUP DR 673 MAYBELL AVE 28IO BLENHEIM AVE 1OI CALIFORNIA AVE STE 150 PORTOLA RD 35OO DEER CREEK RD 4208 RUTHELMA AVE 295 W CHARLESTON RD 262WHITCLEM DR 3289 SOUTH CT PO BOX 1667 5I5 S FLOWER ST FLOOR 25 TX CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA 77252-2967 94704 94306-0000 94303 94306-1233 94301-343s 94024-5744 94306-262s 94306-3103 94306-3145 94306-3931 95051-t212 94306-3817 94063 941r1 94025 94304 94306-4109 94306-4128 94306-41t2 94306-2951 94302 90071 AV AV DR AV CT AV AV LN RD RD AV RD DR RD AV CT 46 records of 54 Santa Clara County \ileed Abatement Program Page2 Situs APN 2016 WEED ABATEMENT PROGRAM COMMENCEMENT REPORT CIry OF PALO ALTO EXHIB¡T A 4103 4t l0 890 900 2946 3l l1 RD RD LN LN RD DR DR DR OLD TRACE OLD TRACE MOCKINGBIRD MOCKINGBIRD OLD ADOBE ALEXIS ALEXIS ALEXIS 175-20-078 '175-20-080 175-24-082 175-24-083 175-2t-092 182-44-404 18243,418 182-43-034 CTTY/STATE PALO ALTO PALO ALTO PALO ALTO PALO ALTO LOS ALTOS PALO ALTO PALO ALTO SAN FRANCISCO 94306 94306-3727 94306-3719 94306-3119 94022 94304-1301 94304-1306 SMITHWICK ALTON D AND URSULA DHALIWAL JASMINE TRUSTEE JOSHI VIVEK TRUSTEE & ET AL LIVINGSTON DANIEL S TRUSTEE GROVE ANDREW S AND EVA R HV/ANG CHERNG-DAW AND BI- CABACCAN JOSELITO C HWA GEORGE AND EILEEN PO BOX 60065 4I IO OLD TRACE RD 890 MOCKINGBIRD LN 9OO MOCKINGBIRD LN I71 MAIN ST #278 2946 ALEXIS DR 3III ALEXIS DR 29 VENTRIS RD B-4 9/F CA CA CA CA CA CA CA 54 records of 54 Santa Clara County Weed Abatement Program Page 3 Attachment A (over) TRA 06 Notice to Destroy Weeds NOTICE IS HEREBY GIVEN that on December 14, 2015, pursuant to the provisions of Section 8.08.020 of the Palo Alto Municipal Code, the City Council passed a resolution declaring that all weeds growing upon any private property or in any public street or alley, as defined in Section 8.08.020 of the Palo Alto Municipal Code, constitute a public nuisance, which nuisance must be abated by the destruction or removal thereof. NOTICE IS FURTHER GIVEN that property owners shall without delay remove all such weeds from their property, and the abutting half of the street in front and alleys, if any, behind such property and between the lot lines thereof as extended, or such weeds will be destroyed or removed and such nuisance abated by the County authorities, in which case the cost of such destruction or removal will be assessed upon the lots and lands from which, or from the front or rear of which, such weeds shall have been destroyed or removed and such cost will constitute a lien upon such lots or lands until paid and will be collected upon the next tax roll upon which general municipal taxes are collected. All property owners having any objections to the proposed removal of such weeds are hereby notified to attend a meeting of the Council of said City, to be held in the Council Chambers of the City Hall at 250 Hamilton Ave., Palo Alto, California, on Monday, January 11, 2016 at 6:00 p.m., or as soon thereafter as the matter can be heard, when their objections will be heard and given due consideration. Attachment C (over) The language and format for this notice is required by California Health and Safety Code Sections 14891 Et. Seq. PALO ALTO WEED ABATEMENT PROGRAM SCHEDULE January 11, 2016 Public hearing to consider objections to Abatement List. April 30, 2016 PARCEL ABATEMENT DEADLINE Parcel must be free from hazardous vegetation by this date or Inspector will order abatement. July/August 2016 Assessment Hearing date to be scheduled by City Council. 2016 COUNTY WEED ABATEMENT FEES Properties in the Weed Abatement Program, you will be responsible for an annual inspection fee of $55.00 per parcel. Please be advised that the property owner of any parcel found to be non-compliant on or after the April 30th deadline will be charged an inspection fee of $440.00 and the property will be scheduled for abatement by the County contractor. If you complete the abatement work before the County contractor performs the abatement, you will not incur further charges. Should the abatement work be performed by a County contractor, you will be assessed the contractor’s charges plus a County administrative fee of $335.00 per parcel. 2016 COUNTY CONTRACTOR’S WEED ABATEMENT PRICE LIST A) Disc Work** PARCEL SIZE: 1st Disc + 2nd Disc = Total Discs 0-12,500 sq.ft. $170.00 $114.41 $284.41 12,501sq.ft.- 43,560sq.ft. $192.66 $170.00 $362.66 Larger than 1 Acre $339.99 $119.00 $458.99 (PER ACRE) ** It is required that parcels be disced twice a year. The cost for the first discing is higher due to additional work normally required during the first discing. B) HANDWORK $5.10 PER 100 sqft C) FLAIL 6 Foot Mower $5.67 PER 1000 sqft MOWING 12 Foot Mower $5.67 PER 1000 sqft D) LOADER WORK $45.34 PER HOUR E) DUMP TRUCK $45.34 PER HOUR F) BRUSH WORK $8.51 PER 100 sqft G) BOOM MOWING $5.67 PER 1000sqft G) DUMP FEE 100% Added to orders with debris removal at 100% of the dump site charge. *Please note this program does not offer herbicide application as a method of abatement. City of Palo Alto (ID # 6379) City Council Staff Report Report Type: Action Items Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: 224 Churchill Setback Variance Title: PUBLIC HEARING: Approval of a Record of Land Use Action for a Variance to Allow for a Reduction in the Required Front Setback (Contextual) from 37 Feet 1-1/4 Inches to 32 Feet for a New Two-Story Single Family Residence Located at 224 Churchill Avenue. Exempt from CEQA. From: City Manager Lead Department: Planning and Community Environment This item was on the consent calendar of the November 16, 2015 City Council meeting and was removed for further discussion by Council Member DuBois, seconded by Mayor Holman, and third by Council Member Filseth. The staff report with attachments is included with this transmittal. After receiving public comment, the City Council may approve or deny the requested variance. If approved, the Council may require modifications. Attachments:  Attachment A: November 16, 2015 City Council Staff Report (PDF) City of Palo Alto (ID # 6168) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/16/2015 City of Palo Alto Page 1 Summary Title: 224 Churchill Setback Variance Title: Approval of a Record of Land Use Action for a Variance to Allow for a Reduction in the Required Front Setback (Contextual) from 37 Feet 1-1/4 Inches to 32 Feet for a New Two-Story Single Family Residence Located at 224 Churchill Avenue From: City Manager Lead Department: Planning and Community Environment Recommendation Adopt the findings and recommendation of the Planning and Transportation Commission to approve a variance for the property at 224 Churchill Avenue as documented in the attached Record of Land Use Action. Executive Summary This report transmits the Planning and Transportation Commission’s (PTC) recommendation supporting a variance to reduce the contextual front setback from approximately 37 feet to 32 feet. This decision is supported in part due to the substantial front yard setback on the neighboring property, which was used to calculate the contextual setback for the subject property. While staff did not initially support the requested variance, favoring instead a zoning text amendment, the granting of the variance is not detrimental to the neighborhood or in conflict with the Comprehensive Plan. Background The applicant proposes to construct a new 4,644 two story single family residence with an attached garage, carport and 1,723 square foot basement in the Seale Addition neighborhood. The project complies with all applicable code requirements, except for one notable provision, which is the reason for the subject variance. Properties on this block are subject to a front yard contextual setback. For the subject property, the setback is 37 feet 1-1/4 inches; the applicant proposes a 32 foot setback. Project Site The project site is located on Churchill Avenue near the Emerson Street intersection. The Attachment A City of Palo Alto Page 2 property is a conforming 13,000 square feet rectangular interior lot, 100 foot wide by 130 foot deep. The site is currently developed with a 3,818 square foot single family residence and 1,500 square foot basement that is proposed to be demolished. The property is located within the R-1 (10,000) zone district and is subject to a special setback of 24 feet along Churchill Avenue as well as the contextual front setback. Conceptual Front Setback A front yard residential setback is the minimum distance a home may be placed in relation to its front property line. The standard setback in the residential district is 20 feet. However, in some areas, there are also special setbacks with a greater distance requirement. The subject property has a 24 foot special setback. The code also has a third front setback criteria called a conceptual front setback which is designed to protect neighborhoods which have developed over time with greater setbacks. For block faces with five or more qualifying properties, homes that have the greatest setback and the shortest setback are removed from the calculation eliminating the outlier properties. Certain properties are not included in the calculation, notably lots with three or more units, flag lots and corner lots. Based on an evaluation of the subject property relative to the three other (four total) qualifying parcels, the conceptual front setback back for the project is 37 feet 1-1/4 inches. Because there are only four qualifying parcels (including the subject property) the outlier properties are not excluded from the averaging calculation. On this block existing front yard setbacks range from approximately 22 – 69 feet. The larger setback is provided on a property with a deeper lot and a home that was constructed in 1927 with approximately 3,000 square feet of gross floor area. Director’s Determination The director reviewed a request for a variance to encroach into the required conceptual front setback by approximately 5 feet for a 32 foot setback from the front property line. When reviewing a request for a variance, the director, and City Council on appeal, must consider the following findings: 1. Because of special circumstances applicable to the subject property, including (but not limited to) size, shape, topography, location, or surroundings, the strict application of the requirements and regulations prescribed in this title substantially deprives such property of privileges enjoyed by other property in the vicinity and in the same zoning district as the subject property. Special circumstances that are expressly excluded from consideration are: a. The personal circumstances of the property owner, and b. Any changes in the size or shape of the subject property made by the property owner or his predecessors in interest while the property was subject to the same zoning designation. 2. The granting of the application shall not affect substantial compliance with the regulations or constitute a grant of special privileges inconsistent with the City of Palo Alto Page 3 limitations upon other properties in the vicinity and in the same zoning district as the subject property, and 3. The granting of the application is consistent with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning), and 4. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, will not be detrimental to the public health, safety, general welfare, or convenience. While able to support Findings 2, 3, 4 above, the Director was not able to support Finding 1. Specifically, the application of the conceptual setback did not appear to deprive the owner of privileges enjoyed by other property owners in the vicinity and that there was nothing about the lot that created a special circumstance. The additional five foot setback did reduce the amount of private rear yard space available, but it did not reduce the buildable potential of the lot. Moreover, the applicant submitted plans in compliance with the conceptual front setback that is being processed through development services department, in case the variance was denied. To staff, this underscored the perspective that the conceptual front yard setback was an inconvenience to the preferred design solution, but did not result in a special circumstance necessitating a variance. The director’s decision was made on May 18, 2015 and a request by the applicant for hearing followed on June 2, 2015. Planning & Transportation Commission The PTC unanimously supported (Chair Tanaka absent) the applicant’s request for the variance. The Commission noted that the adjacent parcel with the approximate 69 foot setback was an outlier that, consistent with the intent of the code, ought to be excluded from the calculation to determine the conceptual front setback. Commissioners cited the Comprehensive Plan and the desire to maintain neighborhood character as reasons to support the variance, noting that a 32 foot setback was more in keeping with the neighborhood. Commissioners commented that the objective of the special setback was not met as a result of the conceptual setback requirement and further observed that averaging all these parcels had the effect of pulling all front setback lines further away from the street. Commissioners noted the high cost of land values in the city and the desire for larger backyards and related the increased setback to the loss of enjoyment to this property owner. The absence of any neighborhood opposition was also noted by the Commission. Based on the PTCs deliberation, staff prepared variance findings, which are documented in the Record of Land Use Action and added a list of standard conditions that will apply to the project. The Record of Land Use Action is provided in Attachment B. Council Review Authority The Palo Alto Municipal Code (PAMC) outlines that variances are generally approved or denied by the Director of Planning and Community Environment. The Code allows, however, for anyone to request a hearing before the PTC, as was made by the applicant in this case. PAMC Section 18.77.060(f) states the recommendation of the Planning and Transportation City of Palo Alto Page 4 Commission shall be placed on the Consent Calendar of the Council for final decision. The Council may: 1. adopt the findings and recommendation of the Planning and Transportation Commission; or 2. remove the recommendation from the consent calendar, which shall require three votes, and a. discuss the application and adopt findings and take action on the application based upon the evidence presented at the hearing of the Planning and Transportation Commission; or b. direct that the application be set for a new hearing before the City Council, following which the City Council shall adopt findings and take action on the application. The decision of the Council is final. Discussion This report transmits the PTC’s recommendation on the variance as required by the municipal code. While staff initially reached a different conclusion on the variance, this difference in perspective is rooted in process as opposed to outcome. Staff does not consider the applicant’s request detrimental to adjacent or surrounding properties or inconsistent with the General Plan. However, to affect this change, staff recommended a zoning text amendment that would modify the existing standard of excluding outlier properties from the contextual front setback determination. Because the results of a future text amendment could be similar to the PTCs recommendation, staff supports moving the project forward and not being pulled off consent. Policy Implications Each variance is evaluated on a case by case basis and staff does not anticipate any concerns about setting a precedent if the City Council were to support the PTC recommendation. While there may be other more appropriate pathways to effectuate the applicant’s request, the reduction in the contextual front yard setback from 37 to 32 feet is not significant and not detrimental to the neighborhood. Environmental Review The project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines Section 15303, New Construction or Conversion of Small Structures. Attachments:  Attachment A: PTC Staff Report with attachments (PDF)  Attachment B: Record of Land Use Action (DOC)  Attachment C: Excerpt Minutes of September 9, 2015 P&TC Meeting (PDF)  Attachment D: Map of Churchill Avenue Estimated Existing Front Setback (PDF) City of Palo Alto Page 5  Attachment E: Project Plans (DOCX) City of Palo Alto (ID # 5904) Planning & Transportation Commission Staff Report Report Type: Meeting Date: 9/9/2015 City of Palo Alto Page 1 Summary Title: 224 Churchill Setback Variance Title: 224 Churchill Avenue [14PLN-00364]: Request for hearing and Planning and Transportation Commission recommendation regarding the Director of Planning and Community Environment’s denial of a Variance application to allow for a reduction in the required front setback (contextual) from 37 feet- 1 1/4 inches to 32 feet for a new, two story single family residence at 224 Churchill Avenue. From: Jodie Gerhardt, Interim Planning Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the Planning and Transportation Commission (PTC) recommend that the City Council uphold the Director’s decision to deny the Variance request for a 5 foot 1 ¼ inch encroachment into the required front (contextual) setback along Churchill Avenue for the construction of a new two story single family residence. Background Process History On September 18, 2014, the applicant, Geoff Campen of Klopf Architecture submitted an Individual Review application on behalf of Bogdan and Oana Cocosel for demolition of an existing single family residence with basement and the construction of a new two story single family residence with an attached garage, carport and expanded basement at 224 Churchill Avenue. The application included a variance request to locate the proposed residence 5 feet 1 ¼ inch closer to the front property line than allowed by the front (contextual) setback of 37 feet 1 ¼ inches required for this site. This proposal would result in a front setback of 32 feet. The application was reviewed for conformance with both the Individual Review and Variance regulations. During the review process, the applicant was informed the Individual Review component of the application may proceed forward subject to revisions in the location of the proposed building to meet the required front (contextual) setback and other applicable requirements of the Palo Alto Municipal Code (PAMC) and the Individual Review Guidelines. In August, the applicant submitted a complete, revised plan set with a proposal that met the Attachment A City of Palo Alto Page 2 required front (contextual) setback in addition to other applicable requirements and was tentatively approved on September 8, 2015. The request for variance was denied by the Director of Planning and Community Environment (Director) on May 18, 2015 for non-conformance with the three required findings for variance approval set forth in the Palo Alto Municipal Code (PAMC) Section 18.76.030(c) (Attachment A). This determination was based upon a review of all information contained in the project file and the review of the variance proposal in comparison with all applicable zoning and municipal code requirements. On June 2, 2015, the applicant filed an appeal of the Director’s decision to deny the variance and requests a public hearing by the PTC. Project Description The applicant proposes to demolish the existing 3,818 square foot (sf) single family residence with 1,500 square foot basement and construct a new 4,644 two story single family residence with an attached garage, carport and 1,723 sf basement in the Seale Addition neighborhood. The existing, minimal traditional style home was built in 1940 and later modified. The survey provided in the plan set: 1. Does not show a garage, 2. Shows the forward-most wall of the existing home located a distance of 34.9 feet from the front property line, and 3. Shows two posts supporting the covered landing for the entry placed approximately 28 feet from the front property line. The property is located within the R-1(10,000) zone district and is subject to a special setback of 24 feet along Churchill, as well as a contextual setback of 37 feet 1 ¼ inches from the front property line. The proposed home has a modern architectural language and use of materials. Roofs are flat with either parapets expressed or deep horizontal overhangs. Primary materials are fiber cement board panels, channel glass (vertically channeled panels), horizontal composite siding, smooth stucco, and painted wood (at fascias). The window frames are aluminum with clear glass and no divisions/muntins. PTC Purview The Variance request for this project was submitted in conjunction with an Individual Review application for the construction of a new, two story single family residence. The PTC's purview is limited to the Variance request for the house to encroach into the front (contextual) setback only. The Commissioners comments and recommendation on this application should be specifically related to the front (contextual) setback variance. Discussion The subject property is a 100 foot wide by 130 foot deep interior lot (13,000 square feet) located on Churchill Avenue near the Emerson Street intersection, in the Single Family City of Palo Alto Page 3 Residential zoning district (R-1, (10,000)). The site is currently developed with a single family residence with a covered porch in front that is setback approximately 28 feet 11 inches from the front property line. This building is proposed to be demolished for the construction of a new two story residence. The block in which the site is located has a wide variation of lot sizes, widths, and depths. Development standards for the R-1 (10,000) zoning district require a front setback of 20 feet. In addition, Churchill Avenue has a 24 foot “special setback” on both sides of the street, between Alma Street and Embarcadero Road. Lastly, Section 18.12.040(e) of the PAMC, states the minimum front setback shall be the greater of twenty feet (20') or the average setback, if the average front setback is 30 feet or more. This side of the block has an average front setback is 37 feet 1 ¼ inches. Hence, the minimum required front setback for this property is 37 feet 1 ¼ inches. The applicant must request a variance to encroach in this setback. Summary of Key Issues The issue for the PTC's consideration is the proposed front setback encroachment. In accordance with Section 18.14.040 (e) of the PAMC, the front contextual setback is calculated as follows: (e) Contextual Front Setbacks The minimum front yard ("setback") shall be the greater of twenty feet (20') or the average setback, if the average front setback is 30 feet or more. "Average setback" means the average distance between the front property line and the first main structural element, including covered porches, on sites on the same side of the block, including existing structures on the subject parcel. This calculation shall exclude flag lots and existing multifamily developments of three units or more. For calculation purposes, if five (5) or more properties on the block are counted, the single greatest and the single least setbacks shall be excluded. The street sideyard setback of corner lots that have the front side of their parcel (the narrowest street-facing lot line) facing another street shall be excluded from the calculations. For blocks longer than 600 feet, the average setback shall be based on the ten sites located on the same side of the street and nearest to the subject property, plus the subject site, but for a distance no greater than 600 feet. Blocks with three (3) or fewer parcels are not subject to contextual setbacks. Structures on the site in no case may be located closer than twenty feet (20') from the front property line. In the case of this project, there are a total of six lot on the same side of the block. With the exclusion of the corner lots, which front other streets, there are four properties that factor into the average setback calculation. These properties include: Property Existing Front Setback 224 Churchill Avenue (subject property) 28’ 11 1/16” 236 Churchill Avenue 69 1 1/2” City of Palo Alto Page 4 250 Churchill Avenue 32’ 260 Churchill Avenue 21’ The average of these setbacks is 37 feet 1 ¼ inches which, according to the contextual setback regulations constitutes the minimum required setback for the proposed development at 224 Churchill Avenue. The applicant has contended that the deep setback of the adjacent lot (236 Churchill Avenue) is an “outlier” whose inclusion in calculating the average setback yields deeper front setback for the subject property than the properties in the vicinity and reduces backyard space on the subject lot as the basis of the argument in favor of the variance for a reduced front setback. (Attachment B and Attachment C) Section 18.76.030, Variance, of the PAMC outlines the purpose of a variance and the findings that shall be made for the granting of a Variance. The purpose of a variance in accordance with Section 18.76.030 is as follows: 1) Provide a way for a site with special physical constraints, resulting from natural or built features, to be used in ways similar to other sites in the same vicinity and zoning district; and 2) Provide a way to grant relief when strict application of the zoning regulations would subject development of a site to substantial hardships, constraints, or practical difficulties that do not normally arise on other sites in the same vicinity and zoning district. The subject property is a 13,000 square foot conforming lot. It is 3,000 square foot larger than the minimum lot size for the R-1 sub district in which it is located with no special natural or built physical constraints on site that would preclude the construction of a two family residence in conformance with the Site Development Standards applicable to all properties in the zoning district. The existing buildings including a single family residence and an accessory structure are proposed to be demolished. The trees on the site are not located in the building envelope. However, encroachment in the front (contextual) setback would bring the proposed development closer to a 42 inch diameter oak tree (protected tree) located in the front yard of the subject property. As such the development if a single family residence can occur on this lot in compliance with the development standards that would be applicable to all lots in the vicinity and in the R-1 zoning district. While the relatively deeper setback of the adjacent property impacts the average, the resulting setback is still much less than the set back of the neighboring lot at 236 Churchill Avenue. Regulations pertaining to contextual setback calculation include a provision for excluding lots with the greatest and least setback in the case of five or more lots, in this instance would mean including four lots in the average setback calculation to determine the front setback for the City of Palo Alto Page 5 subject lot. However, the strict application of this regulation does not constitute a substantial hardship, constraint, or practical difficulty for the development of the property as demonstrated by the development plans (Attachment D). It appears that the Variance request is a function of the applicant/owner’s desire for a larger backyard, which is understandable, but also a personal preference/circumstance. Personal circumstance is not a criterion for evaluating a variance request. Attachment A outlines staff recommended findings for denial of the Variance. Particularly staff believes that 1) there are no special circumstances that the strict application of requirements and regulations would deprive the subject property of the privileges enjoyed by other properties in the vicinity and in the same zoning district, 2) the granting of the variance would be a grant of a special privilege inconsistent with the limitations on other properties in the vicinity and the applicable zoning district and that it would be 3) inconsistent with the Palo Alto Comprehensive Plan, the Individual Review Guidelines and the intent of the contextual setback requirements which direct site planning to take cues from adjacent properties. Alternatives If the Director’s decision to deny the variance is upheld, the applicant would have the following options: 1. Build the home as approved in the Individual Review application (14PLN-00364), which provides a front setback of 37 feet 1 ¼ inches, in conformacne with the required front (contextual) setback requirement. 2. Retain 75 percent of the exterior walls of the main dwelling, which would allow retention of the existing legal non-conforming front setback. Policy Implications The granting of the variance would not be consistent with the Site Development Standards in the applicable zoning district and Individual Review Guidelines that direct site planning to take cues from adjacent property conditions. It is noted that the adjacent property does have a substantial front yard setback that results in a greater setback for the subject property. The code contemplates these outlier conditions, but only when five or properties are being referenced. If the PTC agrees that the conditions create an unanticipated negative affect for the applicant, the proper remedy is to modify the zoning code to account for these circumstances. Granting a variance for this condition is, from staff’s perspective, not the proper path to address the issue. Environmental Review The project is exempt from the provisions of the California Environmental Quality Act per CEQA Guidelines Section 15303, New Construction or Conversion of Small Structures. Courtesy Copies: Geoff Campen City of Palo Alto Page 6 Oana Cocosel Attachments:  Attachment A: Director's Denial Letter and Findings (PDF)  Attachment B: Applicant's Variance Request Letter (PDF)  Attachment C: Letter of Appeal (PDF) ATTACHMENT A ATTACHMENT B ATTACHMENT C ACTION NO. 2015-____ RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 224 CHURCHILL AVENUE: VARIANCE APPLICATION (14PLN-00364) On November ___, 2015, the Council of the City of Palo Alto approved the Variance application for a 32 foot front setback, a 5 foot 1 ¼ inch encroachment into the required front (contextual) setback, along Churchill Avenue for the construction of a new two story single family residence in the R-1 (10,000) Residential Zoning District, 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. Request by Geoff Campen for a Variance to allow the construction of a new two story approximately 4,644 sq ft house with a 1,723 sq ft basement in the R-1(10000) Zoning District. The request includes a variance request for the contextual front setback. (“The Project”). B. The project site is located on Churchill Avenue near the Emerson Street intersection. The property is a conforming 13,000 square feet rectangular interior lot, 100 foot wide by 130 foot deep. The property is located within the R-1 (10,000) zoning district and is subject to a special setback of 24 feet along Churchill as well as a contextual setback of 37 feet 1 ¼ inches from the front property line. C. The Planning and Transportation Commission (Commission) reviewed and recommended approval of the Project on September 9, 2015. The Commission’s recommendations are contained in CMR # 6168 and the attachments to it. SECTION 2. Environmental Review. The City as the lead agency for the Project has determined that the project is exempt from environmental review under provisions of the California Environmental Quality Act (CEQA) Section 15303, New Construction or Conversion of Small Structures. SECTION 3. Variance Findings The decision to approve the Variance was based upon the following findings indicated under PAMC Section 18.76.030(c), and subject to Conditions of Approval, listed below: 1. Because of special circumstances applicable to the subject property, including (but not limited to) size, shape, topography, location, or surroundings, the strict application of the requirements and regulations prescribed in this title substantially deprives such property of privileges enjoyed by other property in the vicinity and in the same zoning district as the subject property. Attachment B The subject parcel has a shallower lot depth (130 feet) compared to the other three parcels on the block (200 feet) that are considered in the evaluation of the contextual front yard setback. Contextual setbacks are derived from averaging the setback of the three other properties, including the adjacent property which has a residential structure set back approximately 69 feet. Other structures in this block are setback between 21 and 32 feet. The resulting contextual setback for the subject property is approximately 37 feet. This additional setback pushes the otherwise compliant residential structure further on the lot reducing the depth of the rear yard. The combination of the shallow lot depth and strict application of the zoning code deprives the owner privileges enjoyed by the three other, Churchill Avenue facing, properties on the block. 2. The granting of the application shall not affect substantial compliance with the regulations or constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and in the same zoning district as the subject property. The variance does not convey a grant of special privilege. The existing structure on the subject property has a setback of 22 feet. The new setback authorized by the variance would require a 32 foot setback. Other Churchill Avenue facing properties on this block have setbacks that range from 25 to 31 feet, excluding the one outlier property with an approximate 69 foot setback. Accordingly, the subject property will be more in line with other structures on the block. Moreover the project with the variance remains compliant with other regulations and is compatible with the general character of the area. 3. The granting of the application is consistent with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance. The project is consistent with the following Comprehensive Plan Policy L-12, which seeks to preserve the character of residential neighborhoods by encouraging new or remodeled structures to be compatible with the neighborhood and adjacent structures; 4. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, will not be detrimental to the public health, safety, general welfare, or convenience. The proposed improvements to the existing single-family home are compatible with the surrounding residential neighborhood and will, subject to this variance approval, will be compliant with all the City’s regulations (Planning, Building, Fire, etc.) and, therefore, will not be detrimental to public health, safety, and welfare. Moreover, the reduced front yard setback is compatible with other front yard setbacks in the area. SECTION 5. Variance Approvals Granted. Variance Approval is granted by the City Council under Palo Alto Municipal Code Section 18.77.060 for application 14PLN-00364, subject to the conditions of approval in Section 6 of the Record. SECTION 6. Conditions of Approval. PLANNING DIVISION CONDITIONS: 1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "Cocosel Residence 224 Churchill Avenue Palo Alto, California ,” stamped as received by the City on August 3, 2015 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval. 2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. 4. REQUIRED PARKING: All single family homes shall be provided with a minimum of one covered parking space (10 foot by 20 foot interior dimensions) and one uncovered parking space (8.5 feet by 17.5 feet). 5. UTILITY LOCATIONS: In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. 6. NOISE PRODUCING EQUIPMENT: All noise producing equipment shall be located outside of required setbacks, except they may project 6 feet into the required street side setbacks. 7. IMPERVIOUS SURFACE. A minimum of 60 % of the required front yard shall have a permeable surface that permits water absorption directly into the soil (Section 18.12.040 (h)). 8. PRIVACY PANELS: The privacy panels shown at the side of upper floor balcony are required to ensure the project's conformance with the City's IR Guidelines and therefore are required as permanent features of the design and must remain for the life of the structure. 9. BALCONY: The upper floor balcony shall be open above as shown on the Square Footage Diagram, Second Level (Sheet A0.9). The openings above the balcony are required for compliance with the Floor Area requirements of the Palo Alto Municipal Code (PAMC) and must remain open for the life of the structure. 10. REQUIRED LANDSCAPING/TREES. Additional landscaping shall be added near the left, rear corner of the lot to include two medium-sized evergreen screening trees (one to each side of the existing tree shown on Sheet A0.4, Neighborhood Privacy Diagram) to improve the privacy condition. The trees shall be 24-inch box planting size and be shown on the site plan filed for a building permit noted by botanical name. This landscaping is required to ensure the project's conformance with the City's IR Guidelines and therefore must remain for the life of the structure. 11. PROJECT ARBORIST. The project (certified) arborist shall ensure that the project conforms to all Planning and Urban Forestry conditions related to landscaping/trees. 12. TREE PROTECTION FENCING. Tree protection fencing shall be required as shown on the Site Plan (Sheet A0.2) 13. PLANNING FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, fenestration and hard surface locations. Contact your Project Planner at the number below to schedule this inspection. 14. INDEMNITY: 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. 15. GREEN BUILDING & ENERGY REACH CODE REQUIREMENTS. NOTICE FOR PERMIT APPLICATIONS SUBMITTED ON OR AFTER 6/22/15.: Please be advised that the Palo Alto City Council has approved Energy Ordinance 5326 and Green Building Ordinance 5326 for all new permit applications with an effective date for June 22nd, 2015, as summarized below. To review the specific changes, visit the Development Services webpage .On the left hand side under “explore”, hover over “Green Building” and select “Compliance” You may also email Melanie Jacobson at Melanie.Jacobson@CityofPaloAlto.org for specific questions about your project. 1) GREEN BUILDING CONDITIONS OF APPROVAL a) The project is a new construction residential building of any size and therefore must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments) plus Tier 2 minimum pre-requisites and electives outlined in Appendix A4* (with local amendments). The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process. The project must select a Green Building Special Inspector from the City’s list of approved inspectors. PAMC 16.14.080 (Ord. 5324 § 1 (part), 2015) *Note: Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined in Appendix A4.2 Energy Efficiency. All energy efficiency measures are found in the 2013 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 & 16.18 as described in the Energy Reach Code section below. b) EMERGENCY DROUGHT REGULATIONS: The project is a residential new construction project with a landscape of any size included in the project scope and therefore must comply with Potable water reduction Tier 2 in accordance with the Emergency Drought Regulations effective June 1st, 2015. Documentation is required to demonstrate that the Estimated Total Water Use (ETWU) falls within a Maximum Applied Water Allowance (MAWA) using the ET adjustment factor (ETAF) of 0.55 for landscaped areas. Vegetable gardens and other areas that qualify as Special Landscape Areas (SLA) will be given an ETAF of 1.0. (PAMC 16.14 (Ord. 5324 § 1 (part), 2015) and the Emergency Drought Regulations link below. The project applicant shall indicate the requirements on the Permit Plans. http://www.documents.dgs.ca.gov/bsc/2015TriCycle/BSC-Meetings/Emergency- Regs/HCD-EF-01-15-ET-Pt11.pdf c) The project is a residential construction project of any size and therefore must meet the enhanced construction waste reduction at tier 2 (75% construction waste reduction). PAMC 16.14.160 (Ord. 5324 § 1 (part), 2015) d) The project is a new detached single-family dwelling and therefore shall comply with the following requirements for electric vehicle supply equipment (EVSE) as shown in : (a) The property owner shall provide as minimum a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet (Level 2 EVSE). The raceway shall terminate in close proximity to the proposed location of the charging system into a listed cabinet, box, enclosure, or receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. The raceway shall have capacity to accommodate a 100-ampere circuit. (b) Design. The proposed location of a charging station may be internal or external to the dwelling, and shall be in close proximity to an on-site parking space. The proposed design must comply with all applicable design guidelines, setbacks and other code requirements. PAMC 16.14.420 (Ord. 5234 § 2, 2015) 2) LOCAL ENERGY REACH CODE CONDITIONS OF APPROVAL a) The project includes new residential construction of any size and therefore triggers the Local Energy Efficiency Reach Code. For all new single-family residential, the performance approach specified within the 2013 California Energy Code shall be used to demonstrate that the TDV Energy of the proposed building is at least 15% less than the TDV Energy of the Standard Design. (Ord. 5324 § 1 (part), 2015) 3) Additional Green Building and Energy Reach Code information, ordinances and applications can be found at http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp. If you have any questions regarding Green Building requirements please call the Green Building Consultant at (650) 329-2179. PUBLIC WORKS URBAN FORESTRY CONDITIONS 1. WALKWAYS: Walkways must be constructed at grade using a base such as geo-grid or structural soil. No compaction or excavation is permitted within tree protection zones. 2. LANDSCAPING: Landscaping must be compatible with oaks growing on the property. 3. LANDSCAPE PLANS: Landscape plans, including but not limited to plants, lighting, and irrigation must be certified by the landscape architect and/or project arborist and then approved by the urban forestry group. 4. TREE PROTECTION FENCING. Tree #5 is required to be protected with Type I fencing. 5. TREE PROTECTION VERIFICATION. Prior to demolition, grading or building permit issuance, a written verification from the contractor that the required protective fencing is in place shall be submitted to the Building Inspections Division. The fencing shall contain required warning sign and remain in place until final inspection of the project. 6. 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 to be implemented by Contractor. 7. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, (Kielty Arborist Services, 650-515-9783), or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 8. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 9. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and 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 Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. PUBLIC WORKS ENGINEERING CONDITIONS The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc. These comments are provided as a courtesy and are not required to be addressed prior to the Planning entitlement approval: 1. 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. 2. STREET TREES: As part of this project, the applicant is required to plant two new 24-in box Autumn Blaze Maple street trees in the public right of way adjacent to the property frontage. One tree shall replace the existing Black Locust and the second shall be planted 30-ft from the existing Magnolia (Tree T3) within the planter strip. Illustrate the tree on the architectural site plan and the grading and drainage plan with the following note: "New street tree required: Plant 24-in box Autumn Blaze Maple per Public Works Engineering detail #604 and install automatic irrigation per #513. Contact Public Works Urban Forestry at 650.496.5953 prior to planting to inspect tree stock and irrigation adequacy. 3. BASEMENT DRAINAGE: Due to high groundwater throughout much of the City and Public Works prohibiting the pumping and discharging of groundwater, perforated pipe drainage systems at the exterior of the basement walls or under the slab are not allowed for this site. A drainage system is, however, required for all exterior basement- level spaces, such as lightwells, patios or stairwells. This system consists of a sump, a sump pump, a backflow preventer, and a closed pipe from the pump to a dissipation device onsite at least 10 feet from the property line, such as a bubbler box in a landscaped area, so that water can percolate into the soil and/or sheet flow across the site. The device must not allow stagnant water that could become mosquito habitat. Additionally, the plans must show that exterior basement-level spaces are at least 7-3/4" below any adjacent windowsills or doorsills to minimize the potential for flooding the basement. Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. 4. BASEMENT SHORING: Shoring for the basement excavation, including tiebacks, must not extend onto adjacent private property or into the City right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. Additionally, please be advised that slope-cut shoring will likely be infeasible for this project given proximity to the existing Oak tree in the front yard. The applicant shall include a shoring plan prepared by a licensed engineer which utilizes a method that minimizes soil disturbance associated with the excavation adjacent to the protected tree. Slope-cut shoring or other methods may be applied to other areas provided it won't encroach on neighboring properties, impact existing structures or disturb other protected trees 5. DEWATERING: Basement excavations may require dewatering during construction. Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is disallowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. The geotechnical report for this site must list the highest anticipated groundwater level. We recommend a piezometer to be installed in the soil boring. The contractor must determine the depth to groundwater immediately prior to excavation by using the piezometer or by drilling an exploratory hole if the deepest excavation will be within 3 feet of the highest anticipated groundwater level. If groundwater is found within 2 feet of the deepest excavation, a drawdown well dewatering system must be used, or alternatively, the contractor can excavate for the basement and hope not to hit groundwater, but if he does, he must immediately stop all work and install a drawdown well system before he continues to excavate. Public Works may require the water to be tested for contaminants prior to initial discharge and at intervals during dewatering. If testing is required, the contractor must retain an independent testing firm to test the discharge water for the contaminants Public Works specifies and submit the results to Public Works. Applicant shall install a water station for the reuse of dewatering water. This water station shall be constructed next to the right-of-way and shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station shall also be sued for onsite dust control. Applicant shall meet with Public Works to coordinate the design details. Public Works reviews and approves dewatering plans as part of a Street Work Permit. The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review, but the contractor will still be required to obtain a street work permit prior to dewatering. Alternatively, the applicant must include the above dewatering requirements in a note on the site plan. Public Works has a sample dewatering plan sheet and dewatering guidelines available at the Development Center and on our website. 6. WATER FILLING STATION: Due to the California drought, applicant shall install a water station for the non-potable reuse of the dewatering water. This water station shall be constructed within private property, next to the right-of-way, (typically, behind the sidewalk). The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station may also be used for onsite dust control. Before a discharge permit can be issued, the water supply station shall be installed, ready for operational and inspected by Public Works. The groundwater will also need to be tested for contaminants and chemical properties for the non-potable use. The discharge permit cannot be issued until the test results are received. Additional information regarding the station will be made available on the City's website under Public Works. 7. 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 splashblocks 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 New Single Family Residences: http://www.cityofpaloalto.org/civicax/filebank/documents/2717 8. GRADING PERMIT: The site plan must include an earthworks table showing cut and fill volumes. If the total is more than 100 cubic yards, a grading permit will be required. An application and plans for a grading permit are submitted to Public Works separately from the building permit plan set. The application and guidelines are available at the Development Center and on our website. 9. 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. The sheet is available here: http://www.cityofpaloalto.org/civicax/filebank/documents/2732 10. 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. 11. 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. 12. 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. 13. RESIDENTIAL STORM WATER TREATMENT: This project may trigger the California Regional Water Quality Control Board's revised provision C.3 for storm water regulations (incorporated into the Palo Alto Municipal Code, Section 16.11) that apply to 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. Term of Approval. Variance Approval. In the event actual construction of the project is not commenced within two years of the date of council approval, the approval shall expire and be of no further force or effect, pursuant to Palo Alto Municipal Code Section 18.30(G).080. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney City of Palo Alto Page 1 1 2 Planning and Transportation Commission Verbatim Minutes September 9, 2015 3 4 EXCERPT 5 6 Public Hearing7 1. 224 Churchill [14PLN-00364]: *Quasi-Judicial Request for hearing and Planning and8 Transportation Commission recommendation regarding the Director of Planning and Community 9 Environment’s denial of a Variance application to allow for a reduction in the required front setback 10 (contextual) from 37 feet-1 1/4 inches to 32 feet for a new, two story single family residence at 224 11 Churchill Avenue. For more information, contact Jodie Gerhardt at Jodie.gerhardt@cityofpaloalto.org 12 13 Acting Chair Fine: Item Number 2 is 224 Churchill. This is a quasi-judicial matter and a request for14 hearing and Planning and Transportation Commission (PTC) recommendation regarding the Director of15 Planning and Community Environment’s denial of a variance application, deny a front setback. Are there16 any disclosures?17 18 Commissioner Downing: I’m not sure if this is exactly applicable, but I did look up this property on19 Google Maps. I did look up a satellite image of this just for your information (FYI) because I wasn’t quite20 getting a full picture of it just from the description.21 22 Acting Chair Fine: Thanks. Can we go with the presentation please.23 24 Jodie Gerhardt, Interim Planning Manager: Yes, thank you. My name is Jodie Gerhardt, Interim Current25 Planning Manager. The subject property in front of you is located at 224 Churchill Avenue and is a 10026 by 130 deep lot located on Churchill Avenue in the R-1 10,000 zoning district. The proposal would27 demolish an existing single family home and construct a new two-story home with an attached garage28 and a basement level. The individual review, this project does have two components and so the29 individual review component of the project, which is the two-story home which included a compliant30 setback was recently approved on September 8th and the variance would allow a 5 foot 1.25 inch31 encroachment into the front contextual setback was denied in May and the property owner has requested32 this hearing.33 34 So just to give a little bit of background about how we arrived at this front setback, this particular35 property does in a sense have three front setbacks. There is the standard 20 foot setback for any R-136 zoned property, there is also a special setback that is on Churchill Avenue and that is 24 feet in this case.37 Also contained in the code in the R-1 section of the code is the contextual front setback which in this38 case averages out to the 37 feet 1.1 inch and a fourth, one and a fourth inches. So hence given all of39 the different requirements the contextual front setback being the greatest is actually the front setback40 that needs to be applied on the property.41 42 So we do have a diagram that shows how that contextual front setback was arrived at. I believe the43 applicant will go into a little bit more detail about that, but we do take out the smallest and the largest44 property, we take out any corners that are facing another street and that sort of thing before we look at45 the average. Then just to give you an idea about how the existing house sits on the property there is an46 existing front porch that’s about 26 feet back and the main house is 34 feet back from the front property47 line. And then the proposal the IR proposal that was approved actually shows the house all the way back48 at the 37 feet; however, the proposal before you today with the variance is to have a 32 foot front49 setback.50 51 So in the attachments we do have the findings for the variance that further explain why the project was52 denied. There, we believe that there are no special circumstances related to this project and actually53 Attachment C City of Palo Alto Page 2 there is an oak tree that’s located in the front yard. So having the house set back further is actually 1 helpful to that oak tree giving it more room to breathe. The granting of the variance would be a special 2 privilege that would be inconsistent with other properties and it would be inconsistent with the 3 Comprehensive Plan, the individual review guidelines, and the intent of the contextual front setback. This 4 concludes staff presentation, thank you. 5 6 Jonathan Lait, Assistant Director: If I could just make one clarification, maybe ask Jodie to help me out 7 with this. I believe in the presentation there was a comment that the greatest setback and the 8 shallowest setback are thrown out in the discussion, but I think that’s when there’s five or more parcels 9 in play and here there are less than five. So those, those extremes are not removed in the consideration 10 of the subject proposal. 11 12 Acting Chair Fine: And I believe the applicant would like to make a presentation? 13 14 Bogdan Cocosel: Hi, I’m Bogdan Cocosel, my wife. Actually we own basically the property at 224 15 Churchill and so thank you very much for taking the time actually to listen to kind of our point of view 16 here. And we have been residents of Palo Alto for almost eight years now and this is our first house. We 17 had no idea what we were getting into. So now we know a lot more. So in interest of time, actually I’m 18 going to pass the microphone along actually to Richard which will explain basically some of the definitions 19 that are applicable kind of here and then John who’s our architect actually will present basically the 20 design implications and the contextual setback issues. 21 22 Richard McDonald, Hopkins & Carley: Good evening, Commissioners; my name is Richard McDonald. I’m 23 an attorney with Hopkins & Carley. I represent the applicant, the property owners, Mr. and Mrs. Cocosel. 24 25 My contribution tonight is very brief. I just wanted to point out to the Commission that the manner in 26 which we’re, we have tried to frame our appeal as well as the project itself would be to allow this 27 Commission to make the findings necessary under the code to find, to grant a variance and with 28 particular regard to the issue of substantial hardship. As a lawyer I look at case law and the cases that 29 have looked at and evaluated the issue of substantial hardship define it in a way that we are trying to 30 frame our appeal and it would allow the Commission to find the variance. A substantial hardship under 31 the cases and I’m citing now a case for the record and ready reference is the Committee to Save the 32 Hollywood Land Specific Plan versus City of Los Angeles in which the granting of a variance was upheld. 33 And the case cites the definition of unnecessary hardship as where the natural condition or topography of 34 the land places the land owner at a disadvantage vis-à-vis other land owners in the area such as 35 peculiarities of the size, shape, or grade of the parcel. The Zach Keysian case also discerned in the 36 hardship requirement an additional finding that the hardship be substantial and that the exception sought 37 must be in harmony with the intent of the zoning laws. I can provide the legal side of 161 Cal Ave. 38 fourth at Page 1168. So we’ve attempted to again frame this appeal in the context that would allow the 39 Commission to make the findings necessary in a manner consistent with the case law and that is indeed 40 in our view and I’ll let the architect describe the project on its merits in more detail and I thank you for 41 your time. 42 43 John Kluf, Kluf Architecture: The diagram that’s up or sorry, I’m sorry. My name is John Kluf of Kluf 44 Architecture, thank you for hearing our case. If you take a look at the diagram that’s up on the board 45 the block has a special setback of 24 feet which was mentioned and the subject house, our project, 37 46 foot setback. The purpose, the reason behind that setback is an oversized setback at the neighboring 47 property which is clearly an outlier on this block. And we’re asking for a still quite large setback of 32 48 feet, which is farther back than all the other houses on the block except for this outlying property. 49 50 You can see from the diagram the outlying lot is the largest on the block and it’s also much deeper than 51 our lot. So deep in fact that if we had to set our house back to match theirs for some reason on a 52 contextual basis our house would be deep into the rear setback and would not even be buildable. That’s 53 the difference in the lots. 54 55 City of Palo Alto Page 3 Also the tree was mentioned. We all love big oak trees and the arborist’s report indicates that the oak 1 tree on the lot will be protected with a setback of 32 feet. We’re not asking to go any farther forward 2 than what the arborist approved for the tree. Next slide. 3 4 This shows what the contextual setback would be if the outlying properties were excluded. The staff 5 report contains our variance application and on Page 2 of our letter we cite an excerpt from the 6 Committee of the Whole from June 18, 2001, and it indicates that the committee intended to exclude 7 outliers from the contextual setback calculations, but because the way the law was drafted this intention 8 to eliminate outliers is not always borne out in practice. For blocks with three or fewer houses not 9 applicable because there’s no contextual setback requirement. For blocks with four houses the 10 contextual setback applies, but outliers can’t ever be excluded. For blocks with five or six houses the 11 contextual setback applies, but it’s a crap shoot whether the outliers would or would not be excluded. 12 That’s our situation. 13 14 We lost the dice roll because both the corner lots have front doors that face the side street. Please note 15 that the garages of the front, of the corner lots face Churchill. So for all intents and purposes these 16 houses are part of the perceived street wall on Churchill, but because their front doors face the side 17 streets they don’t count in the calculation. So we’re left with four houses and the outliers may not be 18 eliminated. If one of these houses were remodeled so that the front door faced Churchill, but no other 19 changes were made we’d have five houses that count on this block and outliers would be excluded. 20 Furthermore, if there was one more house on this block for a total of seven the outliers would be 21 excluded. If the outliers were excluded we’d have a contextual setback calculated just under 32 feet and 22 we’re asking for 32 feet. So if one front door changed on this block or there were one more house on 23 the block our requested setback would comply with the contextual setback. Our proposal clearly 24 complies with the intent of the code which is to remove outliers and respond to context. Only the 25 technicalities of one front door happens to be facing on a corner lot or how many lots are on a block 26 determines that we need a larger setback. Next slide please. 27 28 This one further explores the intent of the committee on contextual setbacks. The committee excerpt 29 and our variance letter also states contextual setbacks should not be applied for blocks with special 30 setbacks. Clearly this did not make it into the law since our block has a special setback, but we’re still 31 subject to the contextual setback requirement. To explore this briefly without the contextual setback the 32 special setback of 24 feet would govern and so our 32 foot setback is far in excess of that. This diagram 33 also illustrates that our setback request of 32 feet exceeds the hypothetical contextual setback had say 34 both the corner houses had their front doors and not just their garages facing Churchill. Next slide 35 please. 36 37 The intent of contextual setbacks is to minimize the effects of outliers. This diagram shows that as each 38 property develops over time on this block each house would be pulled back farther and farther because 39 the contextual setback is increased each time. The effect over time of the outliers pulling back the other 40 houses on the block creates divots in the street wall and leaves void spaces. And pages five, the next 41 two slides show this is the larger block in the current situation and the next slide shows that over time as 42 contextual setbacks would be applied on these blocks that have five or six houses you’re creating divots 43 that pull these houses back from the street wall and are contrary to the idea of working into context. 44 45 So in conclusion, the conditions that disadvantage our client are that their block has one huge property 46 with a very deep front setback. This house is an outlier and pulls all the other houses back as the 47 contextual setback is currently calculated. Without this house the 32 foot setback we’re asking for would 48 fit nicely within the contextual setback on this block. The block also has six houses on it, not seven, and 49 of the six houses both front doors of both corner houses happen to face the side streets. If there were 50 just one more house or if just one more corner lot had a front door facing Churchill the outlying 51 properties would be eliminated and our requested setback would be in compliance technically as well as 52 with the intent of the code. 53 54 These conditions on the block disadvantage our clients forcing them to move their house further back on 55 the lot leaving a large unusable front yard and a smaller rear than their neighbors. Our request complies 56 City of Palo Alto Page 4 with the intent of the contextual setbacks which was to eliminate outliers and create a more uniform 1 street wall. Because the number of our houses on the block and because of the fact that both corners 2 happen to have front doors on the side streets the law taken literally means that our property would have 3 to be setback farther from the street wall than what would make sense for its contextuality. As Ms. 4 Gerhardt stated in her staff report, blocks with our number of houses are not well thought through in this 5 code. Her recommendation was to change the code, but variances are the vehicle for allowing projects 6 like ours that comply with the intent of the code on lots like ours that have hardships as defined in the 7 case law to be approved while the law is reconsidered. Therefore, we respectfully ask you to overturn 8 the denial of our variance and support our appeal. Thank you. 9 10 Acting Chair Fine: Thank you. I’d like to open up any public comments. Do we have any speaker cards 11 on this issue? None? Ok, then let’s turn it over to the Commission. Maybe let’s have five minutes for 12 questions. We’ll start that side. Commissioner Downing. 13 14 Commissioner Downing: Sure. So if I can get some clarity on the property is there a pool at the back of 15 the property in the backyard? 16 17 Mr. Cocosel: No. 18 19 Commissioner Downing: No pool, ok. And then have you had any conversations with your neighbors 20 about your intended designs? Have they expressed any concerns or issues? 21 22 Mr. Cocosel: We have, we had conversation with them. Their only concern was basically to postpone the 23 build for a year so that doesn’t affect the school schedule. 24 25 Commissioner Downing: Ok and then the last question I have is the difference, the difference here that’s 26 being asked between the 37 feet and the 32 feet it’s not a particularly large one. It’s five feet difference, 27 but I guess I’m wondering if there’s a particular significance there? Like if there’s something you’re 28 planning for that backyard that would, that this would get in the way of or is it just that it creates more 29 unusable space for you? 30 31 Mr. Cocosel: It’s basically the unusable space. If you look actually on the diagram actually the yard 32 actually is very small in the back because most of it is actually in the front. And the connectivity within 33 the city backyards that actually creates a view for all of these city properties actually like all our 34 neighbors actually have very low fences in order to kind of enjoy visiting each other’s back yards and if 35 we move the house basically [unintelligible] the, their view, right? And similarly for us of course, but it’s 36 also for them. 37 38 Commissioner Downing: Ok, thank you. 39 40 Acting Chair Fine: Commissioner Gardias. I’m just going to go down the line. 41 42 Commissioner Gardias: Thank you, Mr. Chairman. So the question is to the staff. Could you please tell 43 us what is the history behind those parcels where those houses subject of that great outliers are? There 44 is couple of the properties here on this considered block and on the adjacent block where the middle 45 houses are pretty much set back farther and I was just passing by them yesterday and I thought that 46 maybe there was some historical reason that those houses maybe were developed earlier and then would 47 be a change in the habits or accommodations or the design style that was causing the properties just to 48 farther flow toward the street that was changing the, pretty much the nature of how the houses were 49 placed on the property. But this could have been just my thinking so if you could just put some historical 50 layer on top of this I would appreciate this. Thank you. 51 52 Mr. Lait: I appreciate your observation on that. Unfortunately we don’t have any historical knowledge 53 about the pattern of development in the block and why this property that we’re talking about was 54 setback further or on the other block why it was setback further. 55 56 City of Palo Alto Page 5 Commissioner Gardias: But the house in the middle is earlier? It’s much older? 1929, so it’s a earlier 1 property than the adjacent properties, right? 2 3 Mr. Cocosel: The property that is newer is actually the one next to the outlier the one to the right of the 4 outlier, which is 1988 I think so it’s a few years before contextual setback. So they were not subject to 5 contextual setback when they did it. They were subject to [unintelligible]. 6 7 Commissioner Gardias: Ok. So the observation I had could be right? Those houses in the middle of 8 those two blocks were developed earlier. 9 10 Mr. Cocosel: Pretty old. 1939 this one. 11 12 Commissioner Gardias: Ok. Thank you. 13 14 Acting Chair Fine: Acting Chair Rosenblum. Acting Vice-Chair. 15 16 Acting Vice-Chair Rosenblum: Hi, my question’s for staff. I found the argument by the applicant pretty 17 compelling, which is that the intent of the setback is to have uniformity in our neighborhoods. And it 18 does seem that there is a mathematical issue with only having a couple of houses to compare which 19 means that you have to have the outliers included and the technicality of the two corner lots happening 20 to have their doors on the other side, but if you look at not only this block, but the two adjacent blocks 21 the two blocks or the three blocks across from those blocks it’s much more uniform to comply with the 22 applicant’s wishes. They would put the neighborhood into much greater uniformity. So I’m curious in 23 your opinion is that not the spirit of the setback ruling? I understand and you stated very clearly that this 24 is in violation of the letter of the ruling and I agree with that. There’s a ruling that if there are five, if 25 there are fewer than five properties then the outlier shall not be included and therefore at least this 26 mathematical anomaly of having a major outlier included in the sample, but I’m curious if you also think 27 that this is in violation of the spirit of what’s trying to be achieved which is uniformity? 28 29 Mr. Lait: No, I don’t believe that it is in violation of the spirit of the contextual… I mean I think the fact 30 that you have an outlier is part of the context and that is repeated on this block and it’s on the adjacent 31 block and I don’t know that because you have an outlier that suddenly the argument of context is pushed 32 aside. At some point the drafters when they when this was adopted made a very deliberate decision to 33 make a distinction between four and five lots and the corner lots and the outliers. So I’m clearly 34 empathetic to the condition that the applicant that they find themselves in, but I don’t believe it 35 inconsistent with the intent to approach it the way that the staff’s approached it. I don’t think it’s 36 particularly inconsistent the way the applicant’s proposed it, but all things being equal what we have to 37 fall back on is how the code is drafted and how this particular project applies to that circumstance. 38 39 Acting Vice-Chair Rosenblum: Except that the code asks us to do a balancing test around the contextual 40 environment which is again I think any kind of plain reading of this is that what they’re proposing is much 41 more in line. If we took them the deviation of their lot versus the others you’re getting a higher deviation 42 by going with staff proposal than what they are doing, which would be a lower deviation and so I think 43 that that’s why you bring it in front of humans to help with that judgement. They’ve applied the 44 algorithm citywide and I think this is a weird circumstance that you happen to have two houses that don’t 45 count and then you get below the minimum so this kind of strange outlier does count and therefore I 46 mean I don’t think all these things can be made by machines. So anyway I think you’ve answered my 47 question and I get it. I think that’s my only question. So thank you. 48 49 Acting Chair Fine: I tend to agree with Acting Vice-Chair Rosenblum that the issue really is that the 50 outliers can’t be excluded and that the contextual setback may need an update as mentioned in the 51 report. So I think something I would comment on, so I’m questioning it. I guess my question is more 52 that in the Director’s opinion this variance doesn’t meet the findings, but I had some specific questions 53 about that. Finding Number 1 is about special circumstances for size, shape, topography, location, and 54 surroundings. Doesn’t this fit the definition of location and surroundings? 55 56 City of Palo Alto Page 6 Mr. Lait: I think you have to continue reading the [unintelligible] finding which talks about how those 1 conditions would deprive the property owner from the privileges enjoyed by the properties. And the fact 2 that they can build an otherwise good compliant structure and achieve the same floor areas that the 3 other properties in the area can achieve that the setbacks there’s nothing about the setback itself that 4 constrains the development. 5 6 Acting Chair Fine: So I guess maybe the privilege I’m speaking of then is the extra five feet in the private 7 backyard. I think it’s also laudable of them that they might want to share with their neighbors a little bit 8 in terms of sight lines and stuff. But everybody wants a little bit more space in the backyard and it 9 seems like this contextual setback in this issue is doing exactly that to make this five feet in front rather 10 than behind. Does that count as a privilege? 11 12 Mr. Lait: From staff’s perspective it does not. 13 14 Acting Chair Fine: Ok, why not? 15 16 Mr. Lait: Well we speak of privilege I think what we’re talking about is how other similarly zoned similarly 17 shaped properties enjoy and develop their property based on this, these standards that are set forth with 18 the height, the setbacks, the floor areas, and so forth and yeah there’s a greater setback that’s required 19 in front, but that’s not denying the property owner use or enjoyment of the property. And I guess I 20 mean again I’m very empathetic to the condition and I think where we find ourselves is that it’s the it’s 21 more of a process to how to get it’s a process of getting the applicant from where they are to where they 22 want to be and if it is the case that the finding cannot be met we don’t approve a finding a variance 23 when really what we need to do in this particular case is amend the code which we think is the solution. 24 I think if we, I appreciate the purpose section we’re trying to do and the interest in wanting to solve the 25 problem, but I think there’s the proper way to solve the problem and that’s kind of and that’s why we 26 landed on the decision point that we did with respect to the variance part of it. 27 28 Acting Chair Fine: So I’m not going have you repeat Commissioner Rosenblum’s question about the spirit 29 of variances and how they are meant to be a stop gap or escape valve. Hypothetically what happens if 30 the City approves a variance without meeting the findings? Is that even possible? Does it open loop 31 hole? 32 33 Mr. Lait: Well, so I think decision maker and I’ll let the attorney speak to the legal aspect of it, but this 34 body so the Director makes a decision based on a set of circumstances, the administrative record, so on 35 so forth. This body in its review of the administrative record may very well come to a different 36 conclusion and that’s perfectly fine. It would be based, I mean you would articulate your reasons why 37 you believe the finding could be made. And that information would be then moved forward to the City 38 Council for their deliberation. 39 40 Acting Chair Fine: Those are my questions. Commissioner Michael. 41 42 Commissioner Michael: So in no particular order, I’m inclined to think that the applicant’s case is 43 persuasive to me. I was particularly interested in the comments from the applicant’s architect and share 44 some of the thoughts expressed by Vice-Chair Rosenblum. I’m not certain that there’s this bar that has 45 to be crossed of amending the code. One of the words in the code might be something that we could 46 interpret in conjunction with findings and that’s the word average. When I went to this first of all 47 knowledge I did a Google search and it directed me to Wikipedia. It turns out that average has many 48 meanings and I think that the staff report clearly applies the arithmetic mean and by no means is it clear 49 to me that the arithmetic mean is an appropriate formula or methodology for average in this setting. So 50 without amending the code I mean the other most common applications of average are mean, median, 51 and mode. If there’s probably because the limitations of the small data set you really can’t use mode, 52 but if you had median it would be 32 feet with the three other parcels. So without amending the code 53 you should adopt the methodology of median rather than arithmetic mean and we’re done. 54 55 City of Palo Alto Page 7 I think that the anomalies that are created in the historic application of this code section I mean there’s 1 three or fewer parcels or five or more are indications of the requirement of a judgement. I think the 2 taking out the smallest and the largest when there’s five or more is application of the methodology of the 3 truncated mean. The truncated mean is probably a preferred or more accurate methodology when 4 determining an average. And so in that case you would without question take out the 236 Churchill 5 property and then and work the analysis from there. 6 7 On the substantial hardship question I really think that the issue of the usability of the backyard in 8 relationship to the overall lot size is a question of potential or actual substantial hardship and just as a 9 disclosure I have a property which has an unusable backyard because there’s a very small rear setback. 10 And we’ve had some problems with how we would use the site which we had to do sort of a planning 11 battle in that community until we get a solution, but I think that the forcing the house to be located 12 further back because of this I think stretched interpretation of contextual setback does in fact lead to a 13 finding of depriving a property owner of privileges owned by other adjacent properties and I would 14 support that as a finding. 15 16 And then I’m a retired lawyer and so the looking into the intent of the committee is something that I 17 think is of great importance with the issue of whether or not if there’s a special setback applicable to a 18 block then this would be carved out from the contextual setback applications. I think that may be a 19 finding that you come to looking at the committee proceedings and another justification for deciding in 20 favor of the applicant. I think that the whether or not to exclude the outlier is not really the right 21 question. I think the other questions that I raised earlier could be dispositive and that’s the basis on 22 which I would suggest that we at the appropriate time side with the applicant’s request. 23 24 Mr. Lait: There’s not a question to staff, but I just wanted to make two comments if that’s ok? So the 25 code sets forth the, what a required rear setback is and it’s 20 and in this case the applicant’s proposing 26 46. So from at least the code perspective that minimum number of yards is provided for amply. And 27 with the comment about the definition of average the code actually tells us what average is, there’s a 28 definition that says average means and it talks about the distance between the property line to the front. 29 So I don’t think there’s means for interpretation with the code that is, speaks to that, that definition. And 30 that’s in the contextual front setbacks portion of the code. 31 32 Commissioner Michael: I think in the Comprehensive Plan there’s some great deference given to the 33 character of existing, the existing character of neighborhoods. And I think the notion that there should 34 be sort of a cookie cutter 20 foot backyard setback isn’t in the character of this neighborhood. I think it’s 35 a more ample lot and in proportion the balance between the front and the rear that may in fact be a 36 substantial hardship so I would quibble with the application of a cookie cutter measurement in this 37 particular neighborhood. And what was the other comment? I didn’t… 38 39 Mr. Lait: Average. 40 41 Commissioner Michael: Oh, so I think your citation of the code still doesn’t address the question of 42 whether you use the arithmetic mean, the truncated mean, the median, or some other methodology that 43 might be appropriate. If in fact this code section should be revised that in Palo Alto will be sort of a 44 never ending process and we need to make a decision with this property sooner than that revision can 45 happen. 46 47 Commissioner Alcheck: Ok, thank you for your report. In my ongoing effort to be thorough and concise 48 I’ll start at the end. I would enthusiastically support recommending that City Council grant this variance 49 and there’s a little bit of irony here. Tonight we’re going to hear on Item 5 areas where we can create 50 greater clarity in our code because it’s not really precise and it doesn’t achieve all of its objectives on the 51 way we intended it to. And I think this is sort of a great example of how there was an intent that is not 52 being met in this particular block and unfortunately our code can’t really serve every possible scenario 53 well. And that’s why it’s and we have an ongoing process of editing it as we discover issues we try to 54 address them and sometimes we don’t and I think when we don’t do it as quickly as theoretically 55 humanly possible some people suffer as a result and I think that this could be interpreted as a hardship. 56 City of Palo Alto Page 8 1 There’s a lot of unique things going on on this site. The neighbor who has the enormous setback, I’m 2 guessing here, but I would be interested to know if that property is half an acre. It looks like it’s over 3 20,000 square feet (sf). And it’s very convenient for the largest parcel on this map or on this on the map 4 I have to have a huge setback because it doesn’t impact his ability to have a house the maximum size 5 home you can have in Palo Alto is 6,000 sf. If you have a 20,000 plus square foot lot 6,000 is your limit 6 even theoretically the equation to determine your square footage could get you higher, 6,000 is your cap. 7 I don’t know if the lot’s 20,000, but I’m guessing because of its width and depth. And so this individual 8 could theoretically put their lot anywhere within the setbacks and still have ample use of the space. So I 9 think that the fact that that particular home is set back so far suggesting that there is a disadvantage on 10 all the lots. 11 12 I also think that I am not a huge fan of contextual applications of our code because in this particular 13 instance there’s a special setback so 90 percent of our R-1 or maybe more is subject to the standard 14 setback of 20 and then we have certain streets where we have a special setback, in this case 24, which 15 means that there was an intent that the homes come within 24 feet as opposed to 20. Which I would 16 argue 20 is actually a very small setback in residential neighborhoods which then implies that we do have 17 a preference for homes being kind of close to our streets and a preference for larger backyards. And the 18 fact that in this particular street they set a special setback of 24 implies that they had this secondary 19 standard and I think you see that in many of the homes on both sides of the street and all along the rest 20 of the street past these, this block. 21 22 I think that I know the, I know that according to the letter of the law you can’t, you can’t not include this 23 parcel and I think that’s why the basis for the Director’s decision and for the Planning staff’s decision is 24 coming from. I think we’re in a position to determine whether or not there should be some flexibility 25 because of the hardship created by that calculation. I don’t think we need to sort of get too heavy into 26 the definition of average. I think we can accomplish this by suggesting that this outlier shouldn’t be 27 included. Again it’s extremely convenient for the, this size lot to have the largest setback and as a result 28 he’s affecting the parcels all around him. 29 30 I really think it’s a mistake to assume that our code is perfect. And I think there are always going to be 31 some technicalities that we, that should be considered at this level and I think that if we assume that the 32 implications of the code, I think it’s I also think it’s can be a dangerous game to sort of evaluate intent. I 33 feel much more comfortable looking at the street and saying look, maybe the, I’ll end here. Maybe the 34 definition of contextual setback is X, but when you think of the context of the actual street the suggested 35 36 foot setback is that what it is? 37 foot setback doesn’t seem contextual at all. It seems like it would 36 create another outlier, which I think would be unfortunate and for that reason I maintain my original 37 statement which is that I would enthusiastically support a Motion to recommend that the Council grant 38 this applicant a variance. 39 40 Acting Chair Fine: Thank you. Commissioner Downing, another question? 41 42 Commissioner Downing: Well, I’d like to make a comment. So in terms of whether or not this is 43 compliant with our Comprehensive Plan, there’s actually a policy in the Comprehensive Plan which 44 specifically says that you cannot build a tall fence in front of your property and which specifically says 45 that the view of the house should not be obstructed. The Comprehensive Plan itself says that we want 46 neighborhoods where you can walk down the street and you can actually see the houses. That’s one of 47 our aesthetic goals, it’s one of our preferences. The house that is the outlier and the house which now 48 this house is supposed to emulate actually doesn’t follow that policy, you can’t even see that house from 49 the street it’s so far back and so wooded in front of it. And so following the house that’s already not 50 compliant with the Comprehensive Plan I think is odd and I don’t think that’s really where we want to go. 51 52 And I agree that within this language without needing to go any further we can find, I think we can find 53 the things that we need. This talks about special physical constraints. I think the fact that this is the 54 only lot that’s so short on that, this entire street is a real physical constraint. That is weird. It is a 55 peculiarity for that particular street. I would also add that in terms of constraints I sort of hear well, they 56 City of Palo Alto Page 9 still get a big backyard, but this larger house has enough room that it has an accessory dwelling unit. I’m 1 not sure that if this setback were permitted as it were that it would actually still have room for an 2 accessory dwelling unit or if it did whether or not it would still look as nice and give as much space as 3 one would want. So I think that not being able to build such a unit or being able to build it with further 4 constraints really does impinge on this, these people’s enjoyment of their property. So I think there are 5 real physical constraints here. 6 7 And I think that it’s also, I do think that this rule qualifies for rule cleaning up because it’s a very odd 8 rule. Because it’s a rule that only applies in blocks of four. How odd. We have one rule for five and up 9 and we have one rule for three and under and then we have yet another rule for four. Really? Really 10 four deserved a special rule? So I would definitely put this on the list of things that we should go back 11 and we should look at and I agree with the applicants that I mean if you follow this rule to its logical 12 conclusion all the houses on this street end up being pulled back, all of them over time. Which again 13 runs counter to an explicit goal we actually have in the Comprehensive Plan and it makes this street less 14 walkable, it makes it less enjoyable, it makes it feel less safe when you can’t actually see any of the 15 houses. So that’s my thought. 16 17 Acting Chair Fine: Thank you. Commissioner Gardias. 18 19 Commissioner Gardias: Thank you, Mr. Chairman. So I’m going to offer a different perspective on this. I 20 believe that when I read the code and when I walk around this neighborhood it makes sense. It pretty 21 much reflects this was happening in this neighborhood a hundred years ago when this neighborhood was 22 created or maybe a little bit earlier. But nonetheless this is R-1 10,000 sf lots and then pretty much 23 when they were built back then that was pretty much the style and the setback as it is expressed in the 24 code it pretty much follows the style of this neighborhood and doesn’t allow just to create the uniform 25 line specifically just to preserve the way of life that the citizens of this neighborhood had decided to erect 26 many years ago. So I believe that this makes sense from this perspective, but then of course there is a 27 question on this specific property and approach to this four lot calculation of the property so just 28 agreeing with the specifics of this, of this code pronunciation I want to just go back to the property for a 29 moment. So because, because this property is truly affected by this one, one building and then by 30 building new house the owner loses the privilege of just having the house being closer to the street 31 where actually the house already is, right? We’re just because of this restrictions we’re just we’re forcing 32 the owner to set the house farther back because of this regulation. So giving that loss of right I would 33 support some, some ease on this property to allow this proposal as it was presented, but of course as I 34 just mentioned before I totally support the way that this neighborhood is zoned with the existing setback 35 because I think this reflects the historical nature of the and the intent of the zoners. Thank you. 36 37 Acting Chair Fine: Acting Vice-Chair Rosenblum. 38 39 MOTION 40 41 Acting Vice-Chair Rosenblum: Yes, I’d like to make a Motion that we accept the applicant’s call for an 42 approved variance. 43 44 SECOND 45 46 Commissioner Alcheck: Second. 47 48 Acting Chair Fine: Would you like to speak to your Motion? 49 50 Acting Vice-Chair Rosenblum: Sure. I’ll just repeat some of the points that have already been made. I 51 do believe that this represents a substantial hardship. Palo Alto land is scarce. We enjoy any bit of land 52 that allows us to sit in our backyard with slightly less obstructed views. Neighbors will also appreciate 53 that. That is I think the value to any of us living in Palo Alto we know that is significant. So I accept that 54 this is a substantial detriment to their life. At the same time I think that actually their application makes 55 the neighborhood more consistent, which is the intent of the setback, of our setback codes. So I think 56 City of Palo Alto Page 10 this both makes the neighborhood more consistent and does allow the applicant and their neighbors 1 something better. So I think sort of triumph of human logic over the algorithm. 2 3 Acting Chair Fine: Would you like to speak to your second? 4 5 Commissioner Alcheck: I’ll just add that I want to clarify that I support this Motion not because I think 6 that this we need to create equity among parcels that are different. I think that the underlying theme 7 here is: are we, is the intent of the special setback and more particularly the context of the neighborhood 8 being preserved here or not? And I want to add another point that I think is just really relevant. We are 9 very aware of how involved our community is in decisions like this and I think it’s very telling that allow 10 me to make an assumption here that the neighbors were notified about the meeting and the fact that we 11 don’t have a neighbor here suggesting otherwise I think speaks volumes about this. We didn’t get any 12 emails about this item from any neighbors suggesting they were opposed to this decision and or this the 13 potential for this decision and I think that that’s also very telling. So that’s it. 14 15 Acting Chair Fine: Any other comments from the Commission? I’ll just say I want to thank the applicant 16 and their team for coming. I especially found the diagrams extraordinarily helpful and I do want to echo 17 the issue that I think over time this does have a downhill effect on the neighborhood especially with 18 regard to the Comp Plan. That said I just want to put it out there does the Commission feel we could 19 provide the proper findings to accept this variance? A number of us have each touched on those various 20 three findings we need to make and then we’re going to focus one to explicitly address in our Motion. 21 Commissioner Downing. 22 23 Commissioner Downing: I feel that this Commission has made pretty good arguments for why we do see 24 this as a real constraint, why we see actual physical constraints on this property and the way that this 25 property is shaped as well as the lack of actual lack of enjoyment that this kind of hole makes. 26 27 MOTION 28 29 Acting Chair Fine: Anything else? Let’s take a vote. All those in favor? Great, so the Motion passes and 30 just for the record the Motion that we… we’re talking, the Motion passes unanimously. Thank you. And 31 we were using the staff recommendation, but instead of the word uphold we say reject. Great, thank 32 you so much. 33 34 MOTION PASSED (6-0-1, Chair Tanaka absent) 35 36 Mr. Cocosel: Thank you very much. 37 38 Commission Action: Motion by Acting Vice-chair Rosenblum, second by Commissioner Alcheck to 39 accept Applicants request for variance. Motion passes unanimously (6-0-1, Chair Tanaka absent) 40 15 1 0 160 180 14 9 2 159 8 14 2 0 215 227 14 8 5 14 2 9 14 2 1 0 240 242 244 14 4 4 14 4 0 256 70 14 0 4 14 3 6 231235 237 241 225 259 15 7 0 215 3 6 236 237 250 260 15 2 0 15 0 0 15 0 5 15 2 1 224 251 14 5 0 263 20 15 2 5 15 0 1 15 3 5 301305 15 5 1 14 4 5 215 15 2 0 15 3 6 15 6 4 15 7 0 159 1 EMERSON STREETEMERSON STREET CHURCHILL AVENUE BRYANT STREET BRYANT STREET This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Corner Lots (not included in setback analysis) Property Lines abc Building Roof Outline 24' Special Setback on Churchill Ave 0'100' CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2015 City of Palo Alto RRivera, 2015-11-03 16:17:52Churchill Contextual FSetback Analysis (\\cc-maps\gis$\gis\admin\Personal\RRivera.mdb) ~37.2' ~32.7' ~24.7' ~33.6' ~37.9' 21' 32' 69' 1.5" 26' 3.375" 24' Special Setback on Churchill Ave Note: Analysis is average of 224-260 Churchill Avenue measured from front property line to front of existing structure 200 Block of Churchill Avenue Estimated Existing Front Setbacks Average Front Setback = 37' 1.25" Attachment E Hardcopies to Councilmembers and Libraries Only Plans for the project can be viewed by clicking the link below: http://www.cityofpaloalto.org/gov/depts/pln/new_projects/residential_projects.asp#C City of Palo Alto (ID # 6220) City Council Staff Report Report Type: Action Items Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: 1050 Page Mill Road - Review of Final EIR and Project Title: PUBLIC HEARING: Approval of the Final Environmental Impact Report (FEIR) and Record of Land Use Action to Allow Demolition of Four Existing Structures Totaling 265,895 sf and For Construction of Four Two-Story Office Buildings Totaling 265,895 Square Feet of Floor Area with Below and At- Grade Parking and Other Site Improvements. Zoning District: Research Park (RP) located at 1050 Page Mill Road. Environmental Assessment: A Final Environmental Impact Report has been prepared From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that City Council: 1. Certify the Final Environmental Impact Report and Adopt a project specific Mitigation Monitoring and Reporting Program (Attachments G); and, 2. Adopt a Record of Land Use Action (Attachment A) approving the Architectural Review application for four new office buildings at 1050 Page Mill Road. Executive Summary The project includes the redevelopment of the existing 13.5-acre lease parcel with four two- story buildings with one level of below grade parking under each building. The four new office buildings with the same total floor area as the existing structures would be placed around the perimeter of the site, leaving a landscaped central plaza area. As noted in the Final Environmental Impact Report (EIR), implementation of this project would result in significant environmental impacts that can be mitigated via mitigation measures that are proposed for inclusion as conditions of approval. All substantive comments on the Draft EIR have been responded to in the Final EIR. Prior to making a decision to approve the discretionary applications, the EIR must be certified. Pursuant to the City’s local guidelines for implementing the California Environmental Quality Act (CEQA) and past practice, only the City Council has the authority to certify EIRs. For this reason, the subject project is being considered by the City Council instead of the Director of City of Palo Alto Page 2 Planning and Community Environment, which would otherwise be the typical process for Architectural Review projects not requiring an EIR. The Architectural Review Board (ARB) has reviewed and recommends approval of the project. The Planning and Transportation Commission reviewed the Draft EIR and Final EIR and recommends certification. The record reflects public comments from individuals opposed to the project due to traffic concerns, pedestrian and bicycle access, and objection to the replacement of the existing building’s complete floor area. A proposed Record of Land Use Action is included as Attachment A and includes proposed findings and conditions to approve the project. Attachment G includes required CEQA Findings. Background The proposed project includes demolition of four existing buildings and storage structure, totaling 265,895 square feet of floor area, historically used for offices and R&D, as well as construction of four two-story office buildings totaling 265,895 square feet with associated site improvements on a 13.5 acre lease parcel. The four new buildings are proposed to be placed around the edge of the site, leaving a landscaped central plaza area that would include seating and pedestrian walkways. Plans have been provided to the Council and are available on the City’s website: http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2642&TargetID=319. The applicant is currently targeting Leadership in Energy and Environmental Design (LEED) Platinum status for the project with the inclusion of photovoltaics covering all roofs to generate 150,000 kilowatt-hours (kWh) per year. Primary access would be from Page Mill Road at Hansen Way, a signalized intersection. Currently access is also provided to California Avenue, northwest of the site, through a connecting parking lot at 1117 California Avenue. The proposed project would maintain this connection; however, access between the adjoining parking lots would be limited by installation of an arm gate at the connection point. This arm gate would be controlled by access cards that would be issued only to employees and visitors of 1117 California Avenue. Therefore, Page Mill Road would serve as the single point of ingress/egress to the 1050 Page Mill Road project site. The proposed project includes 348 automobile parking spaces around the perimeter of the site, as well as below-grade garage parking spaces in each building (539 garage spaces) for a total of 887 code compliant automobile spaces. The project would also provide 101 bicycle parking spaces. Site Information City of Palo Alto Page 3 The project site, located within the Stanford Research Park, is rectangular in shape and has an area of approximately 587,363 square feet (sf). The site fronts onto Page Mill Road and currently has access to California Avenue via a driveway easement through 1117 California Avenue. The property is currently occupied by four structures totaling 265,895 sf of floor area with the front building along Page Mill Road currently occupied by Machine Zone. The existing parking lot contains 564 automobile parking spaces; less than currently required by the Municipal Code. The site has a Comprehensive Plan land use designation of Research/Office Park and a zoning designation of Research Park (RP) district. The Research/Office Park land use designation allows office, research, and manufacturing establishments whose operations are buffered from adjacent residential uses. The RP zoning district allows a limited group of research and manufacturing uses that may have unusual requirements for space, light, and air. The project site is surrounded by existing Research and Development (R&D) uses, with the exception of the Mayfield Fire Station #2 located to the south along Hanover Street. Across Page Mill Road to the east, the buildings contain additional research and manufacturing uses. Building Design The applicant’s project description (Attachment D) contains a narrative about the building design. As shown in the project plans on sheets A2.1 thru A2.4 and A5.1, the proposed buildings would consist of clear glass envelopes with glass vertical fins for shading. Visual interest and additional shading would be provided by the use of aluminum ribbon type sunshades. The impervious footprint of the development would be reduced by approximately five (5) percent with the inclusion of below grading parking under the four proposed structures. These parking facilities, along with trash facilities, would be dispersed around the site to allow for efficient circulation. Circulation Primary access would be from Page Mill Road at Hansen Way, a signalized intersection. As shown on the vicinity map in the plan set, California Avenue is northwest of the site, and the 1117 California Avenue office building is located between the project site and California Avenue. The parking lots for 1117 California Avenue and the project site are connected. Although this is not a public right of way, this connection facilitates vehicular access between Page Mill Road and California Avenue. The proposed project parking lot would maintain this connection; however, access between the adjoining parking lots would be limited by installation of an arm gate at the connection point. While details for the gate are not included in the plan set, the applicant proposes an arm gate that would be controlled by access cards that would be issued to the business at 1117 California Avenue. This would provide for all employees and visitors to 1117 California Avenue to have access from both California Avenue and Page Mill Road, as is currently provided. Employees and visitors to 1050 Page Mill Road would not be given access City of Palo Alto Page 4 cards and therefore would not have access to or from California Avenue via this connection. Page Mill Road would serve as the single point of ingress/egress to the 1050 Page Mill Road project site. As explained in the Draft EIR, the additional traffic expected to enter the site from Page Mill Road would result in queuing impacts, as eastbound cars stack-up to make a left turn into the site. This potential impact would be addressed by reconfiguring and extending the turn lane, which would affect the configuration of the westbound turn lane serving Hansen, necessitating improvements to the Page Mill/Hansen intersection. Parking Per the PAMC 18.52, an office use of 265,895 sf in size would require a minimum of one automobile parking space per 300 gross square feet of floor area, or 886 total parking spaces. The site is currently under parked with 564 parking spaces. This project would increase parking supply by 323 spaces for a total of 887 spaces, bringing the site into conformance with the City’s parking regulation. The applicant also proposes to keep an additional 86 parking spaces in landscape reserve. No parking spaces would be provided for the 10,745 sf of on-site employee amenity space. In accordance with the PAMC 18.52.050, the Planning Director may allow for an adjustment to the parking requirement that would exempt from the required parking calculation any building space that is considered to be on-site employee amenities. The proposed amenity space is equal to four percent of the total square footage, which is below the percentage of amenity space provided in more recent approvals and is anticipated to reduce employee vehicle trips. The project would also provide 101 bicycle parking spaces on the site, with a total of 24 short- term spaces located at each building entry and 77 long-term spaces divided equally between the four garages, twelve (12) spaces over the Code requirements. Landscaping The project is required to conform to the City parking design standards contained in Chapter 18.54 of the PAMC and preserve mature trees as possible. The County of Santa Clara has jurisdiction over Page Mill Road as it is a Country expressway. The County typically does not permit trees to be within seven feet of the roadway for safety and road maintenance concerns. Landscaping would include significant trees, and various ground cover and low plantings as shown on sheet L2.0. The proposed project includes the retention of 81 of the existing 225 trees, 20 of which are protected trees as defined by the PAMC. These mature trees and additional new trees will ensure the projects conformance with the requirement to shade 50 percent of the parking spaces within 20 years. The project also includes landscaped islands in conformance with the Code requirement of one island every 10 spaces. Where some of these islands would normally be too small to support a mature tree, staff will worked with the applicant to enlarge the island or add structural soil to support additional tree growth at the Building permit stage. City of Palo Alto Page 5 Lighting/Glare Impacts As shown on Sheets E 1.1 thru E2.2, proposed lighting would include pole lighting as well as bollard style lights, wall wash and in-ground lighting. All pole lighting would be directed downward to ensure minimal spillover of light across property lines. All proposed lighting would be installed along interior driveways and walkways. The lighting would have a maximum average ‘foot-candle’ of 29.5 along the Building 1 perimeter pathway, which would quickly reduce to 0.1 foot-candle at any property line. Architectural Review (ARB) The ARB conducted a preliminary review of the conceptual project design on December 3, 2013. The five public speakers for the item expressed concerns about 1) vehicular traffic on California Avenue, 2) construction activities/traffic from all new development in the area, 3) incorporation of pathways for bikes and pedestrians, 4) connectivity to public transportation, 5) allowed floor area ratio, and 6) alignment of a spine road to break up the Research Park super- blocks. To initiate the EIR process, the City circulated a Notice of Preparation (NOP) and Initial Study (IS) (available online at http://www.cityofpaloalto.org/civicax/filebank/documents/48391) to solicit agency and public comments on the scope of the environmental analysis to be included in the EIR. The Initial Study concluded the project could have potential impacts on the environment, and therefore further study was needed in the form of a Draft EIR. The topics identified in the study as having potential impacts are Air Quality, Biological Resources, Hazards and Hazardous Materials, Noise, and Transportation and Traffic. On November 20, 2014, an EIR scoping meeting was held by the ARB to inform the public that the City was beginning preparation of a Draft EIR for the redevelopment of the subject property. On July 30, 2015 the ARB reviewed the formal project and the Draft EIR. A copy of the staff report can be viewed at https://www.cityofpaloalto.org/civicax/filebank/documents/48290 The ARB voted unanimously to recommend approval of the project with certain items to return to the ARB subcommittee for review. Those items included additional information about bike parking to ensure they are conveniently located, details of any perimeter fencing, railing details, roof screen material details, ensure convenient pedestrian and bike circulation throughout the site and onto other sites, and the addition of a TDM condition as offered by the applicant. The ARB discussed and heard comments from concerned residents about the project’s floor area and suggested this aspect of the project be fully vetted before any approvals are granted. Planning and Transportation Commission (PTC) On August 12, 2015, the PTC reviewed the Draft EIR and provided comments. Those comments and responses are provided in the attached Final EIR. During the comment period on the DEIR the City received a total of three (3) comment letters and multiple verbal comments during the public hearings. The FEIR includes responses to the three comment letters and all verbal comments made at the two public hearings. The commonly raised comments were (1) floor City of Palo Alto Page 6 area ratio, (2) traffic baseline, and (3) pedestrian and bicycle access. The PTC reviewed the Final EIR on November 18, and December 9, 2015, and recommended Council approval of the Final EIR. Overall the PTC considered the EIR adequately discussed and mitigated all impacts, including traffic. One commissioner, however, voted against certification based on concern that the baseline traffic conditions inappropriately credited more office space than warranted. Part of this conclusion was supported with a reference to the zoning district’s purpose section, which states office use should be limited and used to primarily to serve research and development uses. The commissioner also expressed concerns regarding the thresholds of significance used to evaluate traffic impacts. A discussion regarding the baseline conditions used in the environmental document is provided later in this report. The PTC staff reports and the verbatim minutes can be viewed on the City’s website at http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Discussion The applicant is proposing to redevelop a site within the Research Park with land uses consistent with the Comprehensive Plan and zoning regulations. The project complies with all applicable standards; however, as provided below, there is public objection to replacing the existing square footage on site. The community also expressed an interest in a ‘Spine Road’ to break up the large leaseholds between California Avenue and Page Mill Road and provide more access routes to alleviate congestion on nearby streets. Access to and from the project site from California Avenue was another concern expressed by area residents, which is addressed in the proposal. An EIR was prepared for this project to evaluate potential environmental impacts. The report concludes that all impacts are less than significant with mitigation. One mitigation measure requires left turn lane improvements to address potential queuing impacts on Page Mill Road to access the project site. These and another issues regarding pedestrian and bicycle access between these two streets is provided below. The attached Record of Land Use Action (Attachment A) details the project’s compliance with the ARB findings and Comprehensive Plan consistency. Zoning Compliance and Existing FAR The RP zoning district has a minimum 20 foot requirement for front, rear, side yard setbacks, and a height limit of 35 feet. The site must also abide by a special setback of 50 feet along Page Mill Road. The proposed buildings will be set back 50 feet from the front property line and a minimum of 70 feet from the side and rear property lines. The maximum allowable lot coverage is 30% and the maximum Floor Area Ratio (FAR) in the RP district is 0.4:1 (or 40 percent of the site area). The Stanford Research Park is one single 700 acre parcel. While the Municipal Code typically uses complete legal lots to calculate FAR and City of Palo Alto Page 7 other development standards, for the projects in the Research Park, current practice is and has been to evaluate a project’s development potential based on lease lines established by Stanford. The lease line boundaries serve as the baseline to measure setbacks, floor area and other development standards. In the late 1950s, development of the contiguous leasehold between California Avenue and Page Mill Road began and continued through 1980. At the time, all buildings complied with applicable regulations based on the established practice. Around 1999, this larger leasehold was modified creating two separate leaseholds. A new building was proposed on the resulting smaller leasehold (near California Avenue), which met applicable standards for floor area, etc. based on the new leasehold boundaries. However, this lease division resulted in the larger leasehold (near Page Mill Road) having more building floor area than would have otherwise been allowed if the practice of determining permissible floor area were followed. Staff is unable to determine the exact reason why this was not identified as an issue and addressed at the time the leasehold change was proposed and implemented, but it appears to be an oversight. Since then, Stanford and the City are more engaged in conversations about development activity in the Research Park and staff receives information about all affected properties when new lease lines are proposed or adjusted. When the subject application was filed, staff took the position that the existing buildings were noncomplying facilities and as such, pursuant to the municipal code, would be permitted to be replaced to the same noncomplying floor area, but could not expand. This position relies on a provision in the code that is paraphrased below: PAMC 18.70.100: ….a noncomplying facility in the RP district existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. As noted above, the subject building became ‘noncomplying’ in or around 1999. The noncomplying facility position is predicated on the ongoing application of using the lease lines to establish building potential. Stanford has provided a letter, which is included with this report as Attachment F. The letter is generally consistent with staff’s position and further explains that the leasehold practice is a desirable approach to looking at the entire 700 acre parcel as one lot for development purposes. If development were evaluated from this perspective there would be less predictability about how much building area could be placed on various leases throughout the Research Park. However, while staff supports allowing the subject building to be reconstructed at its current floor area, staff does not believe this authorizes the collective building area in the Research Park to exceed the floor area ratio for the entire 700 acre site and that a comparable City of Palo Alto Page 8 reduction, approximately 30,950 sf, elsewhere in the park would ultimately be needed if the Research Park were fully built out. There remains, approximately, over three quarters of one million square feet of building potential in the Research Park. Staff intends to include a findings indicating that the property owner will provide a full accounting of existing square feet in the Stanford Research Park and report any lease line changes on an annual basis.1 Mitigation for Traffic Impacts As explained in the Draft EIR, the additional traffic expected to enter the site from Page Mill Road would result in queuing impacts, as eastbound cars stack-up to make a left turn into the site. This potential impact would be addressed by reconfiguring and extending the turn lane, which would affect the configuration of the westbound turn lane serving Hansen, necessitating improvements to the Page Mill/Hansen intersection. Spine Road As noted earlier, comments were raised in the ARB prelim process and the scoping process regarding the idea of a “spine road” through the site. The spine road was an idea that commercial traffic could be diverted from California Avenue if a road parallel to California, mid- block, were planned for and implemented as sites within the superblock redeveloped. Though this idea has not been advanced as part of the project (and is not required for vehicle circulation pursuant to the environmental analysis), staff requested that the project site plan preserve the potential for east-west pedestrian and bicycle circulation through the site. This circulation is currently proposed via a route that jogs through the central plaza in front of Building 3 and is a private path, such that public access could be limited by the property owner. Pedestrian and Bicycle Access At the ARB’s July Hearing, the public requested convenient pedestrian and bike circulation throughout the site and onto other sites. The property owner, Stanford, is not willing to voluntarily grant a public access easement across its property. It should also be noted that such an easement would only be across the 1050 Page Mill leasehold which would fall short of a connection to California Avenue, as an additional easement would be needed across the leasehold at 1117 California Avenue. However, per the site design, physical bike and pedestrian access will be incorporated into the project’s landscape design. The vehicular gate will also be design to allow for bikes and pedestrians to get around it easily. However, for the public to legally go from California Avenue to Page Mill Road, they would need to use the existing sidewalks at Hanover Street. Restricted Access To/From California Avenue Primary access to the site would be from Page Mill Road at Hansen Way, a signalized intersection. Currently access is also provided to California Avenue, northwest of the site, through a connecting parking lot at 1117 California Avenue. The proposed project would 1 If Council is supportive of evaluating development standards on a lease line basis it may want to consider amending the Zoning Code to clarify this longstanding practice. This would provide both a contractual and a regulatory basis for evaluating FAR based on lease lines, rather than on the entire 700 acre parcel. City of Palo Alto Page 9 maintain this connection; however, access between the adjoining parking lots would be limited by installation of an arm gate at the connection point. This arm gate would be controlled by access cards that would be issued only to employees and visitors of 1117 California Avenue. Therefore, Page Mill Road would serve as the single point of ingress/egress for the 1050 Page Mill Road project site. Environmental Review City staff has worked with our environmental consultant, Dudek, to prepare an EIR that analyzes the project for potential environmental impacts in accordance with the California Environmental Quality Act (CEQA) (Attachment G). The City began the environmental analysis with an Initial Study which is available online. The environmental analysis determined that the project could have a significant impact on the environment, which triggered the requirement to prepare an EIR. The City prepared a Draft EIR to provide the public and responsible agencies information about potential adverse effects on the local and regional environment associated with the proposed project. The five environmental topics covered in the Draft EIR are Air Quality, Biological Resources, Hazards and Hazardous Materials, Noise, and Transportation and Traffic. The Draft EIR is provided as Attachment G for Council Members and may be viewed on the City’s website at http://www.cityofpaloalto.org/planningprojects and/or http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2642&TargetID=319. The initial 45 day public comment period on the Draft EIR began on July 24, 2015 and ran through September 8, 2015. The public was invited to comment on the Draft EIR at the PTC’s August 12, 2015 public hearing. All substantive comments received during the comment period were responded to in the Final EIR. At the PTC’s November 18, and December 9, 2015 hearing, they reviewed the Final EIR and made a recommendation to the City Council regarding Final EIR certification. For each of the five topics, the Draft EIR describes the existing environmental and regulatory conditions, presents the criteria used to determine whether an impact would be significant, analyses significant impacts, identifies mitigation measures for each significant impact, and discusses the significance of impacts after mitigation has been applied. Potential direct, indirect, and cumulative impacts are all considered. The Draft EIR also analyzed impacts associated with Energy Consumption; however, these impacts were found to be less-than- significant and do not require mitigation. The Final EIR contains the Draft EIR, the comments received during the public review period, responses to the comments, and any revisions to the Draft EIR needed as a result of public agency and public comments. The following discussion briefly describes three sections of the EIR: (1) The baseline conditions; (2) A summary of potentially significant impacts; (3) Significant and unavoidable impacts (of which there are none). City of Palo Alto Page 10 Baseline Conditions According to Section 15125 of the California Environmental Quality Act (CEQA) Guidelines, an EIR must include a description of the existing physical environmental condition in the vicinity of the project as they exist at the time when the Notice of Preparation (NOP) is published. However, the CEQA Guidelines also recognize that physical environmental conditions may vary over a range of time, the use of environmental baselines that differ from the date of the NOP is reasonable and appropriate in certain circumstances when doing so results in a more accurate or informative environmental analysis. At the time the application for the proposed project was submitted to the City of Palo Alto and initial data collection for technical studies began, the existing buildings at the project site were vacant. From the mid-1950s to 2009, Beckman Coulter, Inc. used the site largely for manufacturing with office/research and development in the building that fronts on Page Mill Road. In 2009, Facebook subleased the entire property and the use converted largely to office. Later in November 2014, when the NOP for this Draft EIR was published, a portion of the existing buildings on site were occupied by Google and Nest Labs Inc. However, the buildings had been mostly vacant for at least a couple of years before the Google and Nest Labs leases were signed in late 2013 and early 2014 respectively. These leases ended in January 2015. From August 2014, Machine Zone Inc. has occupied Building 1 for office space. As a result, use of the existing space has varied over time. Based on historical usage and current square footage configurations, the following land use conditions are used to define the baseline land use conditions at the project site: 67.4% office space, 16.3% manufacturing space, and 16.3% research and development space. While an alternate baseline could have been selected for the analysis, these baseline assumptions are reasonable because they reflect historic use of the site and consideration of the fluctuations in tenancy. Also, the technical analyses that form the basis of the Draft EIR contain sufficient information to allow comparisons between expected conditions with the proposed project and past site conditions. Summary of Potentially Significant Impacts The Draft EIR identifies potentially significant environmental effects of the project in regards to five issues: Air Quality; Biological Resources; Hazards and Hazardous Materials; Noise; and Transportation and Traffic. The Draft EIR also analyzed impacts associated with Energy Consumption; however, these impacts were found to be less-than-significant and do not require mitigation. The following is a brief overview of each issue, the existing setting, the impacts that would result from the proposed project and the mitigation measures recommended in the EIR to lessen the project impacts. Air Quality The air quality chapter analyzes violations of the City’s air quality standard, which is based on Bay Area Air Quality Management District (BAAQMD) criteria, due to project construction (including demolition). The proposed project is below the operational screening criteria size of 323,000 square feet for an office research park; as such, the project would have a less-than- City of Palo Alto Page 11 significant impact related to air quality during operation. While the emissions are anticipated to remain below the Bay Area Air Quality Management District thresholds, all projects are required to implement the District’s standard construction emissions measures to minimize pollutant emissions. The EIR includes mitigation measures to ensure compliance with emission control measures during project construction consistent with BAAQMD’s Bay Area 2010 Clean Air Plan. In addition to basic emissions control measures, daily use of construction equipment would be limited to 6, rather than 8, hours per day per piece of equipment and diesel particulate filters would be used on construction equipment. These measures would reduce the impact to less than significant. Biological Resources The biological resource concerns of the project relate to migratory birds and bats that could nest and/or forage onsite as well as the existing trees on-site and on adjacent properties. The project includes tree planting and the preparation of a Tree Protection and Preservation Plan in conformance with the City’s tree protection ordinances. The EIR includes mitigation measures for pre-construction surveys be submitted to the City by a qualified biologist to determine if there are active bird nests, bat roosts, or bat maternal colonies on the project site. If an active nest is identified, the biologist shall consult with CDFW to determine if construction activities would affect the nest. If construction would disturb the special-status species, construction-free buffer zones will be established around the nest. This procedure would ensure that project construction would not disturb the reproductive behavior of special-status species. These measures would reduce the impact to less than significant. Hazards and Hazardous Materials The hazardous material concerns on the project include the on-site potential for release of hazardous materials during demolition and construction (i.e., asbestos, lead, contaminated soils). The project’s use of hazard substances and wastes during construction is also analyzed. The effects of the contaminated ground-water plume that underlies the project site on indoor air quality within the proposed buildings is also evaluated. The EIR includes requirements for construction waste disposal and inspection by City staff. The mitigation requires the project applicant to consult with the City’s Public Works Department and hazardous material consultants to amend the Soil Management Plan to address the presence of VOCs and TPH contamination. The mitigation also requires that an environmental specialist be retained to analyze the existing buildings for hazardous building materials prior to demolition, construction workers be familiarized with the Soil Management Plan, preparation of a scope of work for asbestos abatement, and the inspections and verifications by the City and BAAQMD. Workers involved in demolition will be required to comply with state and federal regulations related to LCM and ACM handling and disposal. The project applicant/construction contractor will prepare a dewatering plan and groundwater extraction design plans, which will be reviewed by the City’s Public Works Department, to ensure proper testing and treatment of groundwater potentially impacted by VOCs. A waterproofing/vapor barrier membrane will be included in the building plans to prevent the migration of vapor from groundwater into the indoor air of the basement parking garage, and the project applicant shall sample VOC concentrations to ensure City of Palo Alto Page 12 VOC concentrations in the basement are below levels harmful to health. These measures would reduce the impact to less than significant. Noise Noise impacts associated with the project include exposing people to and generating noise levels beyond what is considered acceptable under City standards, including an increase in noise levels above those existing without the project. The EIR includes mitigation measures that set performance standards for the proposed buildings’ windows, walls, and rooftop mechanical equipment that would ensure protection of employees and nearby residents from adverse noise exposure making this a less than significant impact with mitigation. Transportation and Traffic The transportation impacts of the project include the addition of vehicle trips to intersections without adequate queue lengths. The transportation section also analyzes the addition of vehicle trips to existing intersections in the project vicinity but does not find significant decreases in level of service or significant increases in the V/C ratio. The provision of bicycle and vehicle parking onsite was reviewed for conformance with City policy. The transportation section also discusses the project’s site access by vehicles, bicycles and pedestrians. The proposed project does not cause a significant impact to the level of service at any nearby intersections. However, the project does have significant impacts related to intersection queuing; mitigation is provided to ensure improvements are made to reduce these queues to less-than-significant levels. During operation, the project would have adequate emergency access; however, mitigation is provided for temporary impacts to emergency access, which could occur during construction. Mitigation measures require the project applicant to construct improvements and/or provide fair share allocation of funds necessary to construct improvements to intersections with adverse queuing impacts. The project includes adequate parking on-site for autos and bicycles. The project applicant will prepare a Construction Traffic Management Plan to address construction traffic and staging in order to maintain safety for roadway users and ensure emergency access to the project site. These measures would reduce the impact to less than significant. Significant and Unavoidable Impacts The analysis of the EIR concludes that the implementation of the proposed project would not result in any significant unavoidable impacts. The project would have potential significant air quality, biological resources, hazardous material, noise, and traffic impacts. However, the project includes mitigation that would reduce these impacts to less-than-significant level. Policy Implications The project is subject to ARB findings, which are expanded upon in Attachment A. Additionally, there are a number of Comprehensive Plan policies that should be considered when evaluating this project, including the following. More policies and analysis is provided in Attachment A. City of Palo Alto Page 13  Policy L-44: Develop the Stanford Research Park as a compact employment center served by a variety of transportation modes.  Policy L-48: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces.  Goal B-1: A thriving business environment that is compatible with Palo Alto’s residential character and natural environment. While it could be argued that the project is out of keeping with other specific Comprehensive Plan goals and policies such as those below, the project is consistent with the applicable Comprehensive Plan land use designation and staff believes that it is on balance consistent with the Comprehensive Plan as a whole.  Policy L-42: Encourage Employment Districts to develop in a way that encourages transit, pedestrian and bicycle travel and reduces the number of auto trips for daily errands.  Policy L-43: Provide sidewalks, pedestrian paths, and connections to the citywide bikeway system within Employment Districts. Pursue opportunities to build sidewalks and paths in renovation and expansion projects. There are at least two larger policy issues that are likely to be of interest with regard to this project. These involve the conversion from “research and development” to office space, which the City Council has expressed an interest in examining in an effort to ensure the Research Park as a whole does not lose its research and development focus. Both research and development and office space are permitted uses on the site, and staff expects the discussion of this issue to occur in the context of the Comprehensive Plan Update, along with a discussion of ways to effectively address vehicle trips to/from the Research Park via effective transportation demand management (TDM) programs, including transit (shuttle) and parking management strategies. Public Outreach Notice of this public hearing was provided by publication of the agenda in a local newspaper of general circulation. In addition, property owners and utility customers within 600 feet of the project site were mailed a notice card. Timeline Preliminary ARB meeting December 5, 2013 Formal Application submitted March 3, 2014 EIR scoping meeting before the ARB November 20, 2014 Release of the Draft EIR for the 45 day public comment period July 24, 2015 ARB meeting recommendation on AR July 30, 2015 PTC meeting on Draft EIR August 12, 2015 First PTC meeting on Final EIR November 18, 2015 PTC meeting on Final EIR December 9, 2015 Final EIR Certification by City Council January 11, 2015 City of Palo Alto Page 14 Final Decision on the Proposed Project by City Council January 11, 2015 Attachments:  Attachment A: Record of Land Use Action (DOCX)  Attachment B: Comprehensive Plan Table (DOCX)  Attachment C: Zoning Comparison Table (DOC)  Attachment D: Applicant's Project Description (PDF)  Attachment E: Applicant response to public comments (PDF)  Attachment F: Stanford response to public comments (PDF)  Attachment G: Environmental Impact Report (paper copies to Councilmembers only) (PDF)  Attachment H: CEQA Statement of Findings (DOC)  Attachment I: Draft Mitigation Monitoring Program (DOCX)  Attachment J: Project Plans (hardcopies to Councilmembers and Libraries only) (DOCX) Page 1 Attachment A APPROVAL NO. 2015-10 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 1050 PAGE MILL ROAD: ARCHITECTURAL REVIEW [FILE NO. 14PLN-00074] On January 11, 2015, the City Council approved certification of the Final Environmental Impact Report (FEIR) and Approval of the Architectural Review to Allow Demolition of Four Existing Structures Totaling 265,895 sf and Construction of Four Two-Story Office Buildings Totaling 265,895 Square Feet of Floor Area with Below and At-Grade Parking and Other Site Improvements Located at 1050 Page Mill Road, 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 March 3, 2014, Allison Koo (Sand Hill Properties) on behalf of Board of Trustees of the Leland Stanford Jr. University applied for an Architectural Review application to allow demolition of four existing structures totaling 265,895 square feet and construction of four two-story office buildings totaling 265,895 square feet of floor area with below and at-grade parking and other site improvements. B. Staff has determined that the proposed project is in compliance with the applicable RP development standards. C. Finding regarding monitoring of Stanford Research Park FAR to be provided under separate cover. D. Following staff review, the Architectural Review Board (ARB) considered and recommended approval of the Architectural Review application on July 30, 2015. E. Following ARB review, the Planning and Transportation Commission (Commission) reviewed the Draft Environmental Impact Report (EIR) on August 12, 2015 and the Final EIR on December 9, 2015 and recommended certification. F. On January 11, 2016, the City Council reviewed the project design and the EIR. After hearing public testimony, the Council voted to approve the project subject to the conditions set forth in Section 4 of this Record of Land Use Action. SECTION 2. ENVIRONMENTAL REVIEW. In conformance with the California Environmental Quality Act (CEQA), an Environmental Impact Report was certified by the City Council on January 11, 2015. The 1050 Page Mill Road Project Environmental Impact Report (EIR) (State Clearinghouse No. 2014112015) concluded that the proposed project(s) would not have a significant effect on the environment with mitigation as proposed. The EIR is available for Page 2 review on the City’s web site: http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2642&TargetID=319. All mitigation measures as stated in the approved Mitigation Monitoring and Reporting Program (MMRP) have been incorporated into the conditions of approval. SECTION 3. ARCHITECTURE REVIEW BOARD FINDINGS The design and architecture of the proposed improvements, as conditioned, complies with the Findings for Architectural Review as required in Chapter 18.76 of the PAMC. Comprehensive Plan and Purpose of ARB: Finding #1: The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. Finding #16: The design is consistent and compatible with the purpose of architectural review, which is to:  Promote orderly and harmonious development in the city;  Enhance the desirability of residence or investment in the city;  Encourage the attainment of the most desirable use of land and improvements;  Enhance the desirability of living conditions upon the immediate site or in adjacent areas; and  Promote visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other. The project is consistent with Findings #1 and #16 because: In conformance with the following Comp Plan Goals and Policies, the project will include high quality design compatible with surrounding development.  Policy L-1: A well-designed, compact city, providing residents and visitors with attractive neighborhoods, work places, shopping districts public facilities and open spaces.  Policy L-44: Develop the Stanford Research Park as a compact employment center served by a variety of transportation modes.  Policy L-48: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces.  Goal B-1: A thriving business environment that is compatible with Palo Alto’s residential character and natural environment. Compatibility and Character: Finding #2: The design is compatible with the immediate environment of the site. Finding #4: This finding of compatibility with unified or historic character is not applicable to the project (there is no unified design or historic character along this portion of El Camino Real). Finding #5: The design promotes harmonious transitions in scale and character in areas between different designated land uses. Finding #6: The design is compatible with approved improvements both on and off the site. Page 3 The project is consistent with Findings #2, #4, #5 and #6 because: The proposed buildings would replace existing Research & Development/Office buildings with two- story contemporary buildings. The project design is compatible with the forward thinking character of the Stanford Research Park in that its designed with high quality exterior finishes and human scaled buildings to create a campus like setting. The site incorporates work related functions with passive and active outdoor areas. The buildings are designed to integrate into the environmental setting and include intensive landscape plantings and outdoor features as well as pedestrian walkways to connect the larger area. Functionality and Open Space: Finding #3: The design is appropriate to the function of the project. Finding #7: The planning and siting of the building on the site creates an internal sense of order and provides a desirable environment for occupants, visitors and the general community. Finding #8: The amount and arrangement of open space are appropriate to the design and the function of the structures. The project is consistent with Findings #3, #7, and #8 because: The design is appropriate to the function of the project in that the placement of the two-story buildings create a series of human-scaled interconnected outdoor plaza that promote a quality of life for employees. The amount and arrangement of open space are appropriate to the design and the function of the structures in that the intensively landscaped central plaza provides outdoor rooms and event spaces which promotes participation and interaction with the environment. The architectural design emphasizes the use of natural daylight and other energy design elements that promote a healthy environment for employees. Circulation and Traffic: Finding #9: Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project’s design concept. Finding #10: Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles. The project is consistent with Findings #9 and #10 because: The project’s design concept provides adequate automobile, accessible and bicycle parking located conveniently with pedestrian access to the building entrances. Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles in that the existing access way off Page Mill Road and the interior perimeter road will be maintained for vehicular use. Bicycle parking is convenient and close to building entrances with long term bike parking in below grade parking garages. Landscaping and Plant Materials: Finding #11: Natural features are appropriately preserved and integrated with the project. Finding #12: The materials, textures and colors and details of construction and plant material are an appropriate expression to the design and function and compatible with the adjacent and Page 4 neighboring structures, landscape elements and functions. Finding #13: The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment on the site and the landscape concept depicts an appropriate unit with the various buildings on the site. Finding #14: Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety that would tend to be drought-resistant and to reduce consumption of water in its installation and maintenance. The project is consistent with Findings #11- #14 because: Several existing mature trees will be preserved and integrated into the project’s perimeter landscape. The building materials, textures and colors are complimentary to the environmental setting and the landscape design utilizes drought tolerant and native plants that are appropriate to the site. Exterior pathways connect one building to another and help complete the connection to the entire campus. Outdoor areas also contribute to adding functioning space that is compatible with the buildings and natural features of the site. Parking areas and buildings are well screened with intensive tree plantings and existing landscaping. Sustainability: Finding #15: The design is energy efficient and incorporates renewable energy design elements including, but not limited to: a. Careful building orientation to optimize daylight to interiors b. High performance, low-emissivity glazing c. Cool roof and roof insulation beyond Code minimum d. Solar ready roof e. Use of energy efficient LED lighting f. Low-flow plumbing and shower fixtures g. Below grade parking to allow for increased landscape and stormwater treatment areas The project is consistent with Finding #15 because: In accordance with the City’s Green Building Regulations, the building will satisfy the requirements for CALGreen Mandatory + Tier 2. The applicant is currently targeting Leadership in Energy and Environmental Design (LEED) Platinum status for the project with the inclusion of photovoltaics covering all roofs to generate 150,000 kilowatt-hours (kWh) per year. SECTION 4. Conditions of Approval. PLANNING DIVISION 1. The plans submitted for Building Permit shall be in substantial conformance with plans received and date stamped July 20, 2015, except as modified to incorporate these conditions of approval. Page 5 2. The ARB approval letter including all Department conditions of approval for the project shall be printed on the plans submitted for building permit. 3. Any exterior changes to the building such as size, location, materials or signage are subject to ARB review and approval prior to occupancy/installation. 4. Controlled Access: The project shall include a secure arm gate that restricts access between the subject site and 1117 California Avenue. This gate and associated access cards shall be maintained by the leaseholder and/or property owner. Access cards will only be issued to employees and visitors of 1117 California Avenue. Therefore, Page Mill Road would serve as the single point of ingress/egress for employees and visitors to the 1050 Page Mill Road site. The associated ingress/egress agreement shall be submitted to the City prior to the final Planning inspection, to the satisfaction of the Director of Planning. 5. Noise: In accordance with PAMC Section 9.10.040 no person shall produce, suffer or allow to be produced by any machine or device, or any combination of same, on commercial or industrial property, a noise level more than eight dB above the local ambient at any point outside of the property plane. 6. Amenity Space: The project shall include a minimum of 10,745 sf of amenity space. 7. Indemnity: 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. 8. Development Impact Fees. The proposed building will replace existing square footage, therefore no additional impact fees are due. 9. 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. 10. The approved use and/or construction are subject to, and shall comply with, all applicable City ordinances and laws and regulations of other governmental agencies. 11. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Jodie Gerhardt at Jodie.gerhardt@cityofpaloalto.org to schedule this inspection. Page 6 The applicant has included the following items in their project description, which are included below as conditions of approval. 12. Rooftop Photovoltaic Panels. Provided that the Feed In Tariff program for Palo Alto remains in effect at the rates as currently offered, the project will install Photovoltaic Panels on the roofs of the four proposed new buildings. Estimated that these panels will generate 400 Kw. 13. All Electric Building – No Natural Gas. Consistent with the City’s 2015 goal to reduce carbon emissions, the project will be powered entirely with electricity. Natural gas will not be used. 14. Energy Management Planning and LEED Certification. The Applicant will participate in the Department of Utilities net Zero Energy Design Review making use of groups such as Base Energy Community Group. The purpose is for the project to use the City’s High End Energy Modeling Services to provide design and engineering input to optimize the building’s performance for sustainable design and reduced energy use. In conjunction with these energy modeling services, the project, following its completion, will obtain LEED Platinum certification, to further its serving as a role model for Sustainable Design practices 15. EV Charging Stations. The project will provide eight Electrical Vehicle charging stations, subject to approval by the Director of Planning, with six in the underground structured parking garages, and two at grade that can be used by a public guest or client of the tenants and occupants of the site. 16. Comprehensive TDM Plan without any Parking Reduction. The proposed project will provide a comprehensive Transportation Demand Management Plan to be implemented by the Building Owner and made a condition, through lease covenants, with the new tenants for any tenant with greater than 20 employees. The project will provide a comprehensive TDM Plan despite not seeking or receiving any parking reduction as otherwise allowed under the Zoning Code. This plan shall be submitted to the Project Planner for review and approval prior to issuance of any Building permits. Annual updates shall be provided to the City, to the satisfaction of the Director of Planning and Community Environment. 17. Public Bicycle Pod. The applicant will offer the opportunity for a small bicycle pod for parking bicycles that may be used by the public. The City Transportation Division may determine that the site is unsuitable for a bicycle pod, but 1050 PMR will offer a location for a bicycle pod if it is useful. 18. Zip Car Locations. The applicant will offer locations for six Zip Cars. Zip Cars are installed based on economic analysis of usefulness by the provider of the vehicles. Applicant will cooperate with any Zip Car agency and the City Transportation Division to provide successful use of Zip Cars or similar by occupants of site. Page 7 19. Bicycle Paths. The project provides extensive bicycle paths on its site, and to other site, to encourage use of bicycles rather than single occupant vehicles. PUBLIC WORKS ENGINEERING PRIOR TO AN EXCAVATION AND GRADING PERMIT SUBMITTAL 20. GRADING PERMIT: An Excavation and Grading Permit is required for grading activities on private property that fill, excavate, store or dispose of 100 cubic yards or more based on PAMC Section 16.28.060. Applicant shall prepare and submit an excavation and grading permit to Public Works separately from the building permit set. The permit application and instructions are available at the Development Center and on our website. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp 21. ROUGH GRADING: provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, basement elevation, elevator pit elevation, ground monitoring wells, shoring for the proposed basement and utilities to remain, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for the basement access, crane locations (if any), parking for construction workers, etc. Plans submitted for the Grading and Excavation Permit, shall be stand-alone, and therefore the plans shall include any conditions from other divisions that pertain to items encountered during rough grading for example if contaminated groundwater is encountered and dewatering is expected, provide notes on the plans based Water Quality’s conditions of approval. Provide a note on the plans to direct the contractor to the approve City of Palo Alto Truck Route Map, which is available on the City’s website. 22. GEOTECHNICAL REPORT: Shall clearly identify the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be feet below existing grade. 23. NOTICE OF INTENT: If the proposed development disturbs more than one acre of land, the applicant will be required to comply with the State of California’s General Permit for Storm Water Discharges Associated with Construction Activity. This entails filing a Notice of Intent to Comply (NOI), paying a filing fee, and preparing and implementing a site specific storm water pollution prevention plan (SWPPP) that addresses both construction-stage and post construction Best Management Practices (BMP) for storm water quality protection. The applicant is required to submit two copies of the NOI and the draft SWPPP to Public Works Engineering for review and approval prior to issuance of the building permit. 24. LOGISTICS PLAN: The applicant and contractor shall submit a construction logistics plan to the Public Works Department that addresses all impacts to the public right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, on-site staging and storage areas, concrete pours, crane lifts, work hours, noise Page 8 control, dust control, storm water pollution prevention, contractor’s contact. The plan shall be prepared and submitted along the Rough Grading and Excavation Permit. It shall include notes as indicated on the approved Truck Route Map for construction traffic to and from the site. Permits from County or conditions for Page Mill associated with the off-haul. 25. DEWATERING: Basement excavation may require dewatering during construction. Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is not allowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. The geotechnical report for this site must list the highest anticipated groundwater level. We recommend that a piezometer be installed in the soil boring. The contractor shall determine the depth to groundwater immediately prior to excavation by using a piezometer or by drilling and exploratory hole. Based on the determined groundwater depth and season the contractor may be required to dewater the site or stop all grading and excavation work. In addition Public Works may require that all groundwater be tested for contaminants prior to initial discharge and at intervals during dewatering. If testing is required, the contractor must retain an independent testing firm to test the discharge water for contaminants Public Works specifies and submit the results to Public Works. 26. WATER FILLING STATION: Due to the California drought, applicant shall install a water station for the non-potable reuse of the dewatering water. This water station shall be constructed within private property, next to the right-of-way, (typically, behind the sidewalk). The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station may also be used for onsite dust control. Before a discharge permit can be issued, the water supply station shall be installed, ready for operational and inspected by Public Works. The groundwater will also need to be tested for contaminants and chemical properties for the non-potable use. The discharge permit cannot be issued until the test results are received. Additional information regarding the station will be made available on the City’s website under Public Works. 27. TRANSFORMER AND ELECTRIC UTILITIES: As brought up by Public Works Utilities during DRC, the electric utilities services located through the project site will need to be relocated prior to issuance of a building permit. Applicant shall coordinate with utilities the proposed electrical utility relocation and provide confirmation to Public Works Engineering that the phasing of electric relocation is resolved. Note that electric utility relocation may need to be completed in the field prior to issuance a grading and excavation permit. PRIOR TO ISSUANCE OF A BUILDING PERMIT 28. PUBLIC UTILITY EASEMENT: Based on the plans provided it is difficult to determine the portions of Public Utility Easements (PUE) that will need to be abandoned and where the proposed PUE will be located. Plan shall clearly show the location and width of the proposed public utility easements for reviewed and approved by the City prior to recordation. Note that no structures shall be located within an easement. Page 9 29. SHARED PARKING AND ACCESS AGREEMENT: Clarify who benefits for the shared parking agreement document 142259356 as shown on Sheet C1.0. Will the occupants of 142-20-090 continue to have access to park on 142-20-91? Will the proposed development of 142-20-091, continue to provide the min and max number of stalls as described in the agreement? 30. PAGE MILL ROAD: Is a County maintained Road. Applicant shall contact the County to obtain the necessary approvals and for any work proposed on Page Mill Road right-of-way. Applicant shall submit a copy of permit from County to the City. 31. GRADING AND DRAINAGE PLAN: Provide a separate Grading and Drainage Plan prepared by a qualified licensed engineer, surveyor or architect. Plan shall be wet-stamped and signed by the same. Plan shall include the following: existing and proposed spot elevations, earthwork volumes (cut and fill in CY), pad, finished floor, garage elevation, base flood elevation (if applicable) grades along the project conforms, property lines, or back of walk. See PAMC Section 16.28.110 for additional items. Projects that front directly into the public sidewalk, shall include grades at the doors or building entrances. Provide drainage flow arrows to demonstrate positive drainage away from building foundations at minimum of 2% or 5% for 10-feet per 2013 CBC Section 1804.3. Label the downspouts, splashblocks (2-feet long min) and any site drainage features such as swales, area drains, bubbler locations. Include grate elevations, low points, high points and grade breaks. In no case shall drainage across property lines exceed that which existed prior to grading per 2013 CBC Section J109.4. Provide the following note on the Final Grading Plans. “In my professional judgement, the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be feet below existing grade. As a result, the proposed drainage system for the basement retaining wall will not encounter and pump groundwater during the life of this wall.” 32. The site drainage system that collects runoff from downspouts and landscape area shall be a separated from the pump system that discharges runoff from light wells. Plot and clearly label the two separate systems and including the separate outfalls for each system. 33. ACCESSIBILITY: The path of travel does not connect buildings 2, 3 and 4 with building 1. Provide an accessible path of travel. 34. STORM WATER HYDRAULICS AND HYDROLOGY: Provide an analysis that compares the existing and proposed runoff calculations from the site for the 10 year storm event, 6 hour duration. The IDF tables and Precipitation Map for Palo Alto is available County of Santa Clara County Drainage Manual dated October 2007. The proposed project shall not increase runoff to the public storm drain system. 35. STAIRWELLS AND LIGHTWELLS: Due to high groundwater throughout much of the City and Public Works prohibiting the pumping and discharging of groundwater, perforated pipe drainage systems at the exterior of the basement walls or under the slab are not allowed for Page 10 this site. A drainage system is, however, required for all exterior basement-level spaces, such as lightwells, patios or stairwells. This system consists of a sump, a sump pump, a backflow preventer, and a closed pipe from the pump to a dissipation device onsite at least 10 feet from the property line, such as a bubbler box in a landscaped area, so that water can percolate into the soil and/or sheet flow across the site. The device must not allow stagnant water that could become mosquito habitat. Additionally, the plans must show that exterior basement-level spaces are at least 7-3/4” below any adjacent windowsills or doorsills to minimize the potential for flooding the basement. Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. 36. BIORETENTION SWALES shall be designed to use the full swale length for treatment, place the bubbler (outlet) and catch basin (inlet) at the ends of the swale. 37. UTILITES AND BIORETENTION AREAS: Due to maintenance and inspection requirements associated with treatment areas, utilities that are not associated with the bio-retention design, shall not be installed within the bio-retention areas. 38. STORM WATER TREATMENT: This project shall comply with the storm water regulations contained in provision C.3 of the NPDES municipal storm water discharge permit issued by the San Francisco Bay Regional Water Quality Control Board (and incorporated into Palo Alto Municipal Code Chapter 16.11). These regulations apply to land development projects that create or replace 10,000 square feet or more of impervious surface. In order to address the potential permanent impacts of the project on storm water quality, the applicant shall incorporate into the project a set of permanent site design measures, source controls, and treatment controls that serve to protect storm water quality, subject to the approval of the Public Works Department. The applicant shall identify, size, design and incorporate permanent storm water pollution prevention measures (preferably landscape-based treatment controls such as bioswales, filter strips, and permeable pavement rather than mechanical devices that require long-term maintenance) to treat the runoff from a “water quality storm” specified in PAMC Chapter 16.11 prior to discharge to the municipal storm drain system. Effective February 10, 2011, regulated projects, must contract with a qualified third-party reviewer during the building permit review process to certify that the proposed permanent storm water pollution prevention measures comply with the requirements of Palo Alto Municipal Code Chapter 16.11. The certification form, 2 copies of approved storm water treatment plan, and a description of Maintenance Task and Schedule must be received by the City from the third- party reviewer prior to approval of the building permit by the Public Works department. Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, third-party reviewer shall also submit to the City a certification for approval that the project’s permanent measures were constructed and installed in accordance to the approved permit drawings. 39. 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 Page 11 Worksheet for Land Developments form and instructions are available at the Development Center or on our website. PRIOR TO BUILDING PERMIT FINAL 40. STORMWATER MAINTENANCE AGREEMENT: The applicant shall designate a party to maintain the control measures for the life of the improvements and must enter into a maintenance agreement with the City to guarantee the ongoing maintenance of the permanent C.3 storm water discharge compliance measures. The maintenance agreement shall be executed prior to the first building occupancy sign-off. The City will inspect the treatment measures yearly and charge an inspection fee. There is currently a $381 (FY 2015) C.3 plan check fee that will be collected upon submittal for a grading or building permit. PUBLIC WORKS URBAN FORESTRY SECTION PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 40. BUILDING PERMIT SUBMITTAL- PROJECT ARBORIST CERTIFICATION LETTER. Prior to submittal for staff review, attach a Project Arborist Certification Letter that he/she has; (a) reviewed the entire building permit plan set submittal and, (b)* verified all his/her updated TPR mitigation measures and changes are incorporated in the plan set, (c) affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1) and, (d) understands that design revisions (site or plan changes) within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. * (b above) Other information. The Building Permit submittal set shall be accompanied by the project site arborist’s typed certification letter that the plans have incorporated said design changes for consistency with City Standards, Regulations and information: a. Applicant/project arborist’s final revised Tree Protection Report (TPR) with said design changes and corresponding mitigation measures. (e.g.: if Pier/grade beam=soils report w/ specs required by Bldg. Div.; if Standard foundation= mitigation for linear 24” cut to all roots in proximity) b. Palo Alto Tree Technical Manual Construction Standards, Section 2.00 and PAMC 8.10.080. c. Specialty items. Itemized list of any activity impact--quantified and mitigated, in the Tree Protection Zone (TPZ) for each tree. d. Oaks, if present. That landscape and irrigation plans are consistent with CPA Tree Technical Manual, Section 5.45 and Appendix L, Landscaping under Native Oaks and PAMC 18.40.130. 41. BUILDING PERMIT CORRECTIONS/REVISIONS--COVER LETTER. During plan check review, provide a separate cover letter with Correction List along with the revised drawings when resubmitting. State where the significant tree impacts notes occur (bubble) and indicate the sheet number and/or detail where the correction has been made. Provide: 1) corresponding revision number and 2) bubble or highlights for easy reference. Responses such as “see plans or report” or “plans comply” are not acceptable. Your response should be clear and complete to assist the re-check and approval process for your project. Page 12 42. TREE APPRAISAL & SECURITY DEPOSIT AGREEMENT. (Reference: CPA Tree Technical Manual, Section 6.25). Prior to the issuance of a grading or building permit, the applicant shall prepare and secure a tree appraisal and security deposit agreement stipulating the duration and monitoring program. The appraisal of the condition and replacement value of all trees to remain shall recognize the location of each tree in the proposed development. Listed separately, the appraisal may be part of the Tree Survey Report. For the purposes of a security deposit agreement, the monetary market or replacement value shall be determined using the most recent version of the “Guide for Plan Appraisal”, in conjunction with the Species and Classification Guide for Northern California. The appraisal shall be performed at the applicant’s expense, and the appraiser shall be subject to the Director’s approval. a. SECURITY DEPOSIT AGREEMENT. Prior to grading or building permit issuance, as a condition of development approval, the applicant shall post a security deposit for the 150% of the appraised replacement value of the following 23 Designated Trees: (ID numbers to be determined), to be retained and protected.. The total amount for this project is: $ To Be Determined with Urban Forestry staff. The security may be a cash deposit, letter of credit, or surety bond and shall be filed with the Revenue Collections/Finance Department or in a form satisfactory to the City Attorney. b. SECURITY DEPOSIT & MONITORING PROGRAM. The project sponsor shall provide to the City of Palo Alto an annual tree evaluation report prepared by the project arborist or other qualified certified arborist, assessing the condition and recommendations to correct potential tree decline for trees remain and trees planted as part of the mitigation program. The monitoring program shall end two years from date of final occupancy, unless extended due to tree mortality and replacement, in which case a new two year monitoring program and annual evaluation report for the replacement tree shall begin. Prior to occupancy, a final report and assessment shall be submitted for City review and approval. The final report shall summarize the Tree Resources program, documenting tree or site changes to the approved plans, update status of tree health and recommend specific tree care maintenance practices for the property owner(s). The owner or project sponsor shall call for a final inspection by the Planning Division Arborist. c. SECURITY DEPOSIT DURATION. The security deposit duration period shall be two years (or five years if determined by the Director) from the date of final occupancy. Return of the security guarantee shall be subject to City approval of the final monitoring report. A tree shall be considered dead when the main leader has died back, 25% of the crown is dead or if major trunk or root damage is evident. A new tree of equal or greater appraised value shall be planted in the same area by the property owner. Landscape area and irrigation shall be readapted to provide optimum growing conditions for the replacement tree. The replacement tree that is planted shall be subject to a new two-year establishment and monitoring program. The project sponsor shall provide an annual tree evaluation report as originally required. 43. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall include Page 13 a. SHEET T-1, BUILDING PERMIT. The building permit plan set will include the City’s full-sized, Sheet T-1 (Tree Protection-it's Part of the Plan!), available on the Development Center website at http://www.cityofpaloalto.org/civicax/filebank/documents/31783. The Applicant shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule. Monthly reporting to Urban Forestry/Contractor is mandatory. (Insp. #1: applies to all projects; with tree preservation report: Insp. #2-6 applies; with landscape plan: Insp. #7 applies.) b. The Tree Preservation Report (TPR). All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor, ArborResources, Inc., shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. 44. PLANS--SHOW PROTECTIVE TREE FENCING. The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show Type I or Type II fencing around each Regulated Trees, using a bold dashed line enclosing the Tree Protection Zone as shown on Standard Dwg. #605, Sheet T-1, and the City Tree Technical Manual, Section 6.35-Site Plans; or using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure. 45. SITE PLAN REQUIREMENTS: Plans with Public Trees shall show (a) Type II street tree fencing enclosing the entire parkway strip or, (b) Type I protection to the outer branch dripline (for rolled curb & sidewalk or no-sidewalk situations.) a. Add Site Plan Notes.) i. Note #1. Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated on Sheet T-1, in the Tree Protection Report and the approved plans”. ii. Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall add a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at 650-654-3351 "; iii. Note #3. Utility (sanitary sewer/gas/water/backflow/electric/storm drain) plan sheets shall include the following note: “Utility trenching shall not occur within the TPZ of the 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 for instructions.” iv. Note #4. “Basement or foundation plan. Soils Report and Excavation for basement construction within the TPZ of a protected tree shall specify a vertical cut (stitch piers may be necessary) in order to avoid over-excavating into the tree root zone. Any variance from this procedure requires Urban Forestry approval, please call (650) 496- 5953.” v. Note #5. “Pruning Restrictions. No pruning or clearance cutting of branches is permitted on City trees. Contractor shall obtain a Public Tree Permit from Urban Forestry (650-496-5953) for any work on Public Trees” Page 14 46. TREE REMOVAL—PROTECTED & RIGHT-OF-WAY TREES. Existing trees (Publicly-owned or Protected) to be removed, as shown accurately located on all site plans, require approval by the Urban Forestry Tree Care Permit prior to issuance of any building, demolition or grading permit. Must also be referenced in the required Street Work Permit from Public Works Engineering. a. Add plan note for each tree to be removed, “Tree Removal. Contractor shall obtain a completed Urban Forestry Tree Care Permit # (contractor to complete) separate from the Building or Street Work Permit. Permit notice hanger and conditions apply. Contact (650-496-5953).” b. Copy the approval. The completed Tree Care Permit shall be printed on Sheet T-2, or specific approval communication from staff clearly copied directly on the relevant plan sheet. The same Form is used for public or private Protected tree removal requests available from the Urban Forestry webpage: http://www.cityofpaloalto.org/gov/depts/pwd/trees/default.asp 47. Provide a Tree Relocation Plan. Please include the project arborist’s Tree Disposition and TRP information for the relocated trees. Include a comprehensive plan for each tree: Appraisal for security guarantee purpose, detailed instructions for implementation, tree condition, photo status of foliage and structure. Identify the primary contractor, project site arborist and professional tree locating company overseeing the effort, timing of phased boxing and relocation, watering schedule, moisture meter readings at three levels, storage locations, watering schedule, locations of final planting and soil modification (mechanical tilling, etc.) details for area abutting the relocated tree. The TRP shall be provided digitally to City. 48. Engineered Soil Mix shall be shown in the relevant civil sheets and landscape sheets to be located on both sides of each parking lot finger island and other areas for tree rooting soil. The ESM shall be displayed with cross-hatched areas at each installation location. The ESM Specifications (PW Section 30 & Detail #603a) shall be printed in the plan set or located in the site spec book. Pervious surface area and the cubic footage designated for ESM use shall be shown as well (ie dimensions of ESM area with minimum of 2’ depth). The pdf is attached to the email to the applicant. 49. A Security Bond shall be collected and Memorandum of Understanding signed and processed for the trees to be relocated and interior Protected Trees to be preserved. Contact Dave Dockter and Elise Willis for a draft MoU and to schedule an appointment to take in payment and paperwork. The MOU and Bond can be planned once we have tree value appraisals from the arborist and TRP addressed in #4. The TRP shall be and attachment to the MoU. 50. The plan set (site, demolition, grading & drainage, irrigation, tree disposition, utility sheets, etc.) must show Type I or modified Type III fencing around each Regulated Trees, using a bold dashed line enclosing the Tree Protection Zone as shown on Standard Dwg. #605 or using the Project Page 15 Arborist’s unique diagram for each Tree Protection Zone enclosure. The pdf is attached to the email to the applicant. 51. Please add the project arborist to the Project Directory on the cover sheet. 52. Please add the following notes to the site plan: a. “All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated on Sheet T-1, in the Tree Protection Report and the approved plans.” b. “Utility trenching shall not occur within the TPZ of the 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 for instructions.” c. “Basement or foundation plan. Soils Report and Excavation for basement construction within the TPZ of a protected tree shall specify a vertical cut (stitch piers may be necessary) in order to avoid over-excavating into the tree root zone. Any variance from this procedure requires Urban Forestry approval.” d. “Pruning Restrictions. No pruning or clearance cutting of branches is permitted on City trees. Contractor shall obtain a Public Tree Permit from Urban Forestry (650-496-5953) for any work on Public Trees.” 53. Please add the following note to the site, demo, grading & drainage, irrigation, landscape, and utility plans applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist." 54. Please add note to the planting plan for each protected tree to be removed: “Tree Removal. Contractor shall obtain a completed Urban Forestry Tree Care Permit (contractor to complete) separate from the Building or Street Work Permit. Permit notice hanger and conditions apply. Contact (650-496-5953).” 55. Plans shall show the application of root buffer around the protected trees to be maintained by Contractor and inspection of Project Arborist. Area within the dripline (10X the diameter) that is not fenced should have a 6-12 inch layer of wood chips topped with ¾” plywood to remain until final grading. Indicate areas of root buffer on the site plan. Page 16 56. NEW RIGHT-OF-WAY TREES--PLAN REQUIREMENTS. New trees shall be shown with a 10’ clear radius zone from any (new or existing) underground utility or curb cut, in coordination with all relevant plans (site, utility, irrigation, landscape, etc.) a. Add note on the Planting Plan that states, “Tree Planting. Prior to in-ground installation, Urban Forestry inspection/approval required for tree stock, planting conditions and irrigation adequacy. Contact (650-496-5953).” b. Landscape Plans shall state the Urban Forestry approved species, size and include relevant Standard Planting Dwg. #603, #603a or #604 (reference which), and shall note the tree pit dug at least twice the diameter of the root ball. c. Landscape plan shall include planting preparation details for trees specifying digging the soil to at least 30-inches deep, backfilled with a quality topsoil and dressing with 2-inches of wood or bark mulch on top of the root ball keeping clear of the trunk by 1-inch. d. Add note on the Planting & Irrigation Plan that states, “Irrigation and tree planting in the right-of-way requires a street work permit per CPA Public Works standards.” e. Automatic irrigation shall be provided for each tree. Standard Dwg. #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed at the edge of the root ball. Bubblers mounted inside an aeration tube are prohibited. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. 57. NEW TREES—SOIL VOLUME. Unless otherwise approved, plans shall indicate new right-of-way trees provided with 800 cubic feet of rootable soil area, utilizing Standard Dwg. #604/513. Rootable soil shall mean compaction less than 90% over the area, not including sidewalk base areas except when mitigated. Sidewalk or asphalt base underlayment [in lieu of compacted base rock] shall use an Alternative Base Material method such as structural grid (Silva Cell) or engineered soil mix (ESM). Design and manufacturer details shall be added to relevant civil and landscape sheets. Each parking lot tree in small islands and all public trees shall be provided adequate rootable soil commensurate to mature tree size. Note: this expectation requires coordination with the engineer, arborist and landscape architect. a. Minimum soil volume for tree size growth performance (in cubic feet): Large: 1,200 cu.ft. Medium: 800 cu.ft. Small: 400 cu.ft. b. Landscape Plan. When qualifying for parking area shade ordinance compliance (PAMC 18.40.130) trees shall be labeled (as S, M or L). c. Engineered Soil Mix (ESM). When approved, Engineered Soil Mix base material shall be utilized in specified areas, such as a sidewalk base or channeling to a landscape area, to achieve expected shade tree rooting potential and maximum service life of the sidewalk, curb, parking surfaces and compacted areas. Plans and Civil Drawings shall use CPA Public Works Engineering ESM Specifications, Section 30 and Standard Dwg. #603a. Designated Page 17 areas will be identified by cross-hatch or other symbol, and specify a minimum of 24" depth. The technology may be counted toward any credits awarded for LEED or Sustainable Sites certification ratings. 58. LANDSCAPE PLANS a. Include all changes recommended from civil engineer, architect and staff, including planting specifications if called for by the project arborist, b. Provide a detailed landscape and irrigation plan encompassing on-and off-site plantable areas out to the curb as approved by the Architectural Review Board. A Landscape Water Use statement, water use calculations and a statement of design intent shall be submitted for the project. A licensed landscape architect and qualified irrigation consultant will prepare these plans, to include: i. All existing trees identified both to be retained and removed including street trees. ii. Complete plant list indicating tree and plant species, quantity, size, and locations. iii. Irrigation schedule and plan. iv. Fence locations. v. Lighting plan with photometric data. vi. Landscape Plan shall ensure the backflow device is adequately obscured with the appropriate screening to minimize visibility (planted shrubbery is preferred, painted dark green, decorative boulder covering acceptable; wire cages are discouraged). vii. All new trees planted within the public right-of-way shall be installed per Public Works (PW) Standard Planting Diagram #603 or 604 (include on plans), and shall have a tree pit dug at least twice the diameter of the root ball. viii. Landscape plan shall include planting preparation details for trees specifying digging the soil to at least 30-inches deep, backfilled with a quality topsoil and dressing with 2-inches of wood or bark mulch on top of the root ball keeping clear of the trunk by 1-inch. ix. Automatic irrigation shall be provided to all trees. For trees, Standard Dwg. #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed at the edge of the root ball. Bubblers shall not be mounted inside an aeration tube. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. Irrigation in the right-of-way requires a street work permit per CPA Public Works standards. c. Add Planting notes to include the following mandatory criteria: i. Prior to any planting, all plantable areas shall be tilled to 12” depth, and all construction rubble and stones over 1” or larger shall be removed from the site. ii. A turf-free zone around trees 36” diameter (18” radius) required for best tree performance. d. Add note: “Mandatory Landscape Architect (LA) Inspections and Verification to the City. The LA shall verify the performance measurements are achieved with a letter of verification to City Planning staff, in addition to owner’s representative for the following: i. All the above landscape plan and tree requirements are in the Building Permit set of plans. Page 18 ii. Percolation & drainage checks have been performed and are acceptable. iii. Fine grading inspection of all plantable areas has been personally inspected for tilling depth, rubble removal, soil test amendments are mixed and irrigation trenching will not cut through any tree roots. iv. Tree and Shrub Planting Specifications, including delivered stock, meets Standards in the CPA Tree Technical Manual, Section 3.30-3.50. Girdling roots and previously topped trees are subject to rejection. 59. TREE PROTECTION VERIFICATION. Prior to demolition, grading or building permit issuance, a written verification from the contractor that the required protective fencing is in place shall be submitted to the Building Inspections Division. The fencing shall contain required warning sign and remain in place until final inspection of the project. DURING CONSTRUCTION 60. 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 to be implemented by Contractor. 61. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, ArborResources, (650-496-5953, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 62. CONDITIONS. All Planning Department conditions of approval for the project shall be printed on the plans submitted for building permit. 63. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 64. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and 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 Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. Page 19 65. 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 66. URBAN FORESTRY DIGITAL FILE & INSPECTION. The applicant or architect shall provide a digital file of the landscape plan, including new off-site trees in the publicly owned right-of-way. A USB Flash Drive, with CAD or other files that show species, size and exact scaled location of each tree on public property, shall be delivered to Urban Forestry at a tree and landscape inspection scheduled by Urban Forestry (650-496-5953). 67. LANDSCAPE CERTIFICATION LETTER. The Planning Department shall be in receipt of a verification letter that the Landscape Architect has inspected all trees, shrubs, planting and irrigation and that they are installed and functioning as specified in the approved plans. 68. PROJECT ARBORIST CERTIFICATION LETTER. Prior to written request for temporary or final occupancy, the contractor shall provide to the Planning Department and property owner a final inspection letter by the Project Arborist. The inspection shall evaluate the success or needs of Regulated tree protection, including new landscape trees, as indicated on the approved plans. The written acceptance of successful tree preservation shall include a photograph record and/or recommendations for the health, welfare, mitigation remedies for injuries (if any). The final report may be used to navigate any outstanding issues, concerns or security guarantee return process, when applicable. 69. PLANNING INSPECTION. Prior to final sign off, contractor or owner shall contact the city planner (650-329-2441) to inspect and verify Special Conditions relating to the conditions for structures, fixtures, colors and site plan accessories. POST CONSTRUCTION 70. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery. UTILITILES - WATER,GAS,WASTEWATER PRIOR TO SUBMITTAL OF DEMOLITION PERMIT 71. Prior to demolition, the applicant shall submit the existing water/wastewater fixture unit loads (and building as-built plans to verify the existing loads) to determine the capacity fee credit for the existing load. If the applicant does not submit loads and plans they may not receive credit for the existing water/wastewater fixtures. Page 20 72. The applicant shall submit a request to disconnect all utility services and/or meters including a signed affidavit of vacancy. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. PRIOR TO SUBMITTAL FOR BUILDING PERMIT 73. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.p.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 74. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. 75. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc). 76. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services. 77. The applicant's engineer shall submit flow calculations and system capacity study showing that the on-site and off-site water and sanitary sewer mains and services will provide the domestic, irrigation, fire flows, and wastewater capacity needed to service the development and adjacent properties during anticipated peak flow demands. Field testing may be required to determined current flows and water pressures on existing water main. Calculations must be signed and stamped by a registered civil engineer. The applicant is required to perform, at his/her expense, a flow monitoring study of the existing sewer main to determine the remaining capacity. The report must include existing peak flows or depth of flow based on a minimum monitoring period of seven continuous days or as determined by the senior wastewater engineer. The study shall meet the requirements and the approval of the WGW engineering section. No downstream overloading of existing sewer main will be permitted. 78. For contractor installed water and wastewater mains or services, the applicant shall submit to the WGW engineering section of the Utilities Department four copies of the installation of water and wastewater utilities off-site improvement plans in accordance with the utilities department design criteria. All utility work within the public right-of-way shall be clearly shown on the plans that are prepared, signed and stamped by a registered civil engineer. The contractor shall also submit a complete schedule of work, method of construction and the manufacture's literature on the materials to be used for approval by the utilities engineering section. The applicant's contractor Page 21 will not be allowed to begin work until the improvement plan and other submittals have been\approved by the water, gas and wastewater engineering section. After the work is complete but prior to sign off, the applicant shall provide record drawings (as-builts) of the contractor installed water and wastewater mains and services per City of Palo Alto Utilities record drawing procedures. For contractor installed services the contractor shall install 3M marker balls at each water or wastewater service tap to the main and at the City clean out for wastewater laterals. 79. Water, gas, and sewer utilities are connected from Page Mill Rd. to the front of the property accept for the gas meter/s (above ground). The water meter and City’s sewer clean out in the public right of way and the gas meter to be on private property all required to be approved by the utility inspector. 80. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans. 81. An approved reduced pressure detector assembly is required for the existing or new water connection for the fire system to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive (a double detector assembly may be allowed for existing fire sprinkler systems upon the CPAU’s approval). reduced pressure detector assemblies shall be installed on the owner's property adjacent to the property line, within 5’ of the property line. Show the location of the reduced pressure detector assembly on the plans. 82. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city building inspector is required for the supply pipe between the meter and the assembly. 83. Existing wastewater laterals that are not plastic (ABS, PVC, or PE) shall be replaced at the applicant’s expense. 84. Existing water services that are not a currently standard material shall be replaced at the applicant’s expense. 85. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 86. Each unit or place of business shall have its own water and gas meter shown on the plans. Each parcel shall have its own water service, gas service and sewer lateral connection shown on the plans. Existing utilities meeting current WGW utilities standards can be reused with CPAU engineering approval. Page 22 87. A separate water meter and backflow preventer is required to irrigate the approved landscape plan. Show the location of the irrigation meter on the plans. This meter shall be designated as an irrigation account an no other water service will be billed on the account. The irrigation and landscape plans submitted with the application for a grading or building permit shall conform to the City of Palo Alto water efficiency standards. 88. A new water service line installation for domestic usage is required. For service connections of 4- inch through 8-inch sizes, the applicant's contractor must provide and install a concrete vault with meter reading lid covers for water meter and other required control equipment in accordance with the utilities standard detail. Show the location of the new water service and meter on the plans. 89. A new water service line installation for irrigation usage is required. Show the location of the new water service and meter on the plans. 90. A new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements. 91. A new gas service line installation is required. Show the new gas meter location on the plans. The gas meter location must conform to utilities standard details. 92. A new sewer lateral installation per lot is required. Show the location of the new sewer lateral on the plans 93. The applicant shall secure a public utilities easement for facilities installed in private property. The applicant's engineer shall obtain, prepare, record with the county of Santa Clara, and provide the utilities engineering section with copies of the public utilities easement across the adjacent parcels as is necessary to serve the development. 94. Where public mains are installed in private streets/PUEs for condominium and town home projects the CC&Rs and final map shall include the statement: “Public Utility Easements: If the City’s reasonable use of the Public Utility Easements, which are shown as P.U.E on the Map, results in any damage to the Common Area, then it shall be the responsibility of the Association, and not of the City, to Restore the affected portion(s) of the Common Area. This Section may not be amended without the prior written consent of the City”. 95. Where there is more than one gas meter installed, a P.U.E is required for the gas service from the gas meters to the gas main. 96. All existing water and wastewater services that will not be reused shall be abandoned at the main per WGW utilties procedures. 97. Utility vaults, transformers, utility cabinets, concrete bases, or other structures can not be placed over existing water, gas or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict Page 23 with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas or wastewater mains/services or meters. New water, gas or wastewater services/meters may not be installed within 10’ or existing trees. Maintain 10’ between new trees and new water, gas and wastewater services/mains/meters. 98. To install new gas service by directional boring, the applicant is required to have a sewer cleanout at the front of the building. This cleanout is required so the sewer lateral can be videoed for verification of no damage after the gas service is installed by directional boring. T 99. The applicant shall obtain an encroachment permit from Santa Clara county department of transportation for all utility work in the county road right-of-way. The applicant must provide a copy of the permit to the WGW engineering section. 100. The applicant may require a construction permit from Santa Clara county valley water district if necessary for the utility service line to be installed by the City of Palo Alto Utilities. 101. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas & wastewater. 102. For contractor installed water and wastewater mains or services, the applicant shall prepare and submit to the WGW engineering section of the Utilities Department as-built drawings at the completion of construction of the installation of water and wastewater utilities to be owned and maintained by the City in accordance with: 1. Two sets of as-built drawings (hard copies). 2. As-built drawings in 2008 or 2010 AutoCAD format. 3. As-built drawings in .tiff format. 4. Survey points in .csv format for all new utility features. Note: All survey data shall be collected by a California Licensed Land Surveyor. The surveyor is responsible to setup all control points needed to perform the survey work. The accuracy for all survey data shall be +/- 1cm. Survey data to be collected (what's applicable): I. Collect horizontal and vertical data for: 1. Sanitary sewer manholes (rim and invert elevations and depth) 2. Storm drain manholes and catch basins (rim and invert elevations and depth) 3. Water valves (cover and stem elevations) II. Collect horizontal data only for: 1. Service or lateral connection points at the main 2. Fire hydrants 3. Water meters Page 24 4. Sanitary sewer cleanout boxes Use CPAU WGW Engineering’s "feature codes" for naming convention available from CPAU WGW Engineering 1007 Elwell Ct, Palo Alto, CA 94303 (650) 566-4501. All drawings and survey data shall be on the California State Plane Coordinate System - Zone 3 in units of feet. The horizontal datum shall be the North American Datum of 1983 (NAD83) and the vertical datum shall be based on Best or 93. FIRE DEPARTMENT 103. Fire sprinklers and fire alarm systems required in accordance with NFPA 13, NFPA 24, NFPA 72 and State and local standards. Sprinkler, fire alarm and underground fire supply installations require separate submittal to the Fire Prevention Bureau. 104. Sprinkler main drain must be coordinated with plumbing design so that the 200 gpm can be flowed for annual main drain testing for 90 seconds without overflowing the collection sump, and the Utilities Department approved ejector pumps will be the maximum flow rate to sanitary sewer. An acceptable alternative would be to direct sprinkler main drain to an approved landscape location. 105. Applicant shall work with Utilities Department to provide acceptable backflow prevention configuration. 106. All floor levels in multi-story buildings must be served by an elevator capable of accommodating a 24 x 84 inch gurney without lifting or manipulating the gurney. 107. Low-E glass and underground parking areas can interfere with portable radios used by emergency responders. Please provide an RF Engineering analysis to determine if additional devices or equipment will be needed to maintain operability of emergency responder portable radios throughout 97% of the building in accordance with the Fire Code Appendix J as adopted by the City of Palo Alto. A written report to the Fire Marshal shall be provided prior to final inspection. PUBLIC WORKS – WATERSHED PROTECTION GROUP We have reviewed the site floor plans for this project. Please note the following issues must be addressed in building plans prior to final approval by this department: 108. PAMC 16.09.170, 16.09.040 Discharge of Groundwater The project is located in an area of suspected or known groundwater contamination with Volatile Organic Compounds (VOCs). If groundwater is encountered then the plans must include the following procedure for construction dewatering: Prior to discharge of any water from construction dewatering, the water shall be tested for volatile organic compounds (VOCs) using EPA Method 601/602 or Method 624. The analytical results of Page 25 the VOC testing shall be transmitted to the Regional Water Quality Control Plant (RWQCP) 650- 329-2598. Contaminated ground water that exceeds state or federal requirements for discharge to navigable waters may not be discharged to the storm drain system or creeks. If the concentrations of pollutants exceed the applicable limits for discharge to the storm drain system then an Exceptional Discharge Permit must be obtained from the RWQCP prior to discharge to the sanitary sewer system. If the VOC concentrations exceed the toxic organics discharge limits contained in the Palo Alto Municipal Code (16.09.040(m)) a treatment system for removal of VOCs will also be required prior to discharge to the sanitary sewer. Additionally, any water discharged to the sanitary sewer system or storm drain system must be free of sediment. 109. PAMC 16.09.055 Unpolluted Water Unpolluted water shall not be discharged through direct or indirect connection to the sanitary sewer system (e.g. any uncovered ramps to the parking garage should be directed to the storm drain system). 110. PAMC 16.09.180(b)(9) Covered Parking Drain plumbing for parking garage floor drains must be connected to an oil/water separator with a minimum capacity of 100 gallons, and to the sanitary sewer system 111. PAMC 16.09.180(b)(10) Dumpsters for New and Remodeled Facilities New buildings and residential developments providing centralized solid waste collection, except for single-family and duplex residences, shall provide a covered area for a dumpster. The area shall be adequately sized for all waste streams and designed with grading or a berm system to prevent water runon and runoff from the area. 112. PAMC 16.09.180(b)(14) Architectural Copper On and after January 1, 2003, copper metal roofing, copper metal gutters, copper metal down spouts, and copper granule containing asphalt shingles shall not be permitted for use on any residential, commercial or industrial building for which a building permit is required. Copper flashing for use under tiles or slates and small copper ornaments are exempt from this prohibition. Replacement roofing, gutters and downspouts on historic structures are exempt, provided that the roofing material used shall be prepatinated at the factory. For the purposes of this exemption, the definition of "historic" shall be limited to structures designated as Category 1 or Category 2 buildings in the current edition of the Palo Alto Historical and Architectural Resources Report and Inventory. 113. PAMC 16.09.175(k) (2) Loading Docks (i) Loading dock drains to the storm drain system may be allowed if equipped with a fail-safe valve or equivalent device that is kept closed during the non-rainy season and during periods of loading dock operation. (ii) Where chemicals, hazardous materials, grease, oil, or waste products are handled or used within the loading dock area, a drain to the storm drain system shall not be allowed. A drain to the sanitary sewer system may be allowed if equipped with a fail-safe valve or equivalent device that is kept closed during the non-rainy season and during periods of Page 26 loading dock operation. The area in which the drain is located shall be covered or protected from rainwater run-on by berms and/or grading. Appropriate wastewater treatment approved by the Superintendent shall be provided for all rainwater contacting the loading dock site. 114. PAMC 16.09.180(b)(5) Condensate from HVAC Condensate lines shall not be connected or allowed to drain to the storm drain system. 115. PAMC 16.09.205 Cooling Towers No person shall discharge or add to the sanitary sewer system or storm drain system, or add to a cooling system, pool, spa, fountain, boiler or heat exchanger, any substance that contains any of the following: (1) Copper in excess of 2.0 mg/liter; (2) Any tri-butyl tin compound in excess of 0.10 mg/liter; (3) Chromium in excess of 2.0 mg/liter. (4) Zinc in excess of 2.0 mg/liter; or (5) Molybdenum in excess of 2.0 mg/liter. The above limits shall apply to any of the above-listed substances prior to dilution with the cooling system, pool, spa or fountain water. A flow meter shall be installed to measure the volume of blowdown water from the new cooling tower. Cooling systems discharging greater than 2,000 gallons per day are required to meet a copper discharge limit of 0.25 milligrams per liter. 116. PAMC 16.09.180(b)(b) Copper Piping Copper, copper alloys, lead and lead alloys, including brass, shall not be used in sewer lines, connectors, or seals coming in contact with sewage except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical. The plans must specify that copper piping will not be used for wastewater plumbing. 117. 16.09.180(12) Mercury Switches Mercury switches shall not be installed in sewer or storm drain sumps. 118. PAMC 16.09.205(a) Cooling Systems, Pools, Spas, Fountains, Boilers and Heat Exchangers It shall be unlawful to discharge water from cooling systems, pools, spas, fountains boilers and heat exchangers to the storm drain system. 119. PAMC 16.09.165(h) Storm Drain Labeling Storm drain inlets shall be clearly marked with the words "No dumping - Flows to Bay," or equivalent. Undesignated Retail Space: Page 27 120. PAMC 16.09 Newly constructed or improved buildings with all or a portion of the space with undesignated tenants or future use will need to meet all requirements that would have been applicable during design and construction. If such undesignated retail space becomes a food service facility the Sewer Use Ordinance requirements must be met. If a Cafeteria is planned for the site, the Food Service Establishment requirements must be met. BUILDING DIVISION Include in plans submitted for a building permit: 121. Separate submittals and permits are required for the following systems and components if utilized: E.V., P.V., and Solar Hot Water systems. 122. Deferred submittals shall be limited to as few items as possible. 123. Recycling areas (if applicable) are required to be accessible and require warning devices prior to entering parking and driveway areas. 124. All building exits shall include an accessible path to the public way. 125. Plans shall show accessible routes for both interior and exterior areas. 126. Please explain how the existing utility easements will be dealt with that are in areas where proposed new structures will be constructed upon them. GREEN BUILDING For design and construction of non-residential projects, the City requires compliance with the mandatory measures of Chapter 5, in addition to use of the Voluntary Tiers. (Ord. 5220 § 1 (part), 2013) NOTE: Please be advised that the Palo Alto City Council will be considering a new energy and green building ordinance in the second quarter of 2015. The following requirements are subject to change if the project submits for a building permit after the new requirements are adopted. To follow the ordinance changes, you may visit the Green Building Advisory Group webpage to view the agendas and meeting minutes. The following are required for Building Approval: 127. The project is a new nonresidential construction project greater than 1,000 square feet and therefore must comply with California Green Building Standards Code Mandatory plus Tier 2 requirements, as applicable to the scope of work. PAMC 6.14.180 (Ord. 5220 § 1 (part), 2013). The requirements are indicated on CS 0.2 of the formal ARB submittal. The project applicant shall Page 28 indicate the requirements on the Permit Plans. The submittal requirements are outlined here: www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp. 128. The project is a new building over 10,000 square feet and therefore must meet the commissioning requirements outlined in the California Building Code section 5.410.2 for Planning Approval. The project team shall submit the Owner’s Project Requirements (OPR) in accordance with section 5.410.2.1 with Basis of Design (BOD) in accordance with 5.410.2.2 that reflects the design elements finalized between Planning Approval and Permit Submittal. The project shall also submit a Commissioning (Cx) Plan in accordance with 5.410.2.3 and shall show the Cx plan on the Permit Plans. 129. The project is a nonresidential project exceeding $100,000 valuation and therefore must acquire an Energy STAR Portfolio Manager Rating and submit the rating to the City of Palo Alto once the project has been occupied after 12 months. PAMC 16.14.250 (Ord. 5220 § 1 (part), 2013). The Energy Star Project Profile shall be submitted to the Building Department prior to permit issuance. Submittal info can be found at: https://www.cityofpaloalto.org/gov/depts/utl/business/benchmarking_your_building.asp. 130. The project is greater than 100,000 square feet and is not within the boundaries of a recycled water project area and therefore must install dual plumbing for use of recycled water for toilet and urinal flushing. PAMC 6.14.190 (Ord. 5220 § 1 (part), 2013). The project applicant shall indicate the requirements on the Permit Plans. 131. The project is a new construction project with a landscape of any size included in the project scope and therefore must comply with Potable water reduction Tier 2. Documentation is required to demonstrate that the Estimated Total Water Use (ETWU) falls within a Maximum Applied Water Allowance (MAWA) using the appropriate evapotranspiration adjustment factor (ETAF) designated by the prescribed potable water reduction tier. PAMC 16.14.220 (Ord. 5220 § 1 (part), 2013). The project applicant shall indicate the requirements on the Permit Plans in coordination with the planting plan shown on L2.0 of the ARB submittal. The submittal requirements are outlined on the following site: http://www.cityofpaloalto.org/gov/depts/utl/residents/resrebate/landscape.asp. 132. The project includes a new or altered irrigation system and therefore must be designed and installed to prevent water waste due to overspray, low head drainage, or other conditions where water flows onto adjacent property, non-irrigated areas, walks, roadways, parking lots, or structures. PA 16.14.300 (Ord. 5220 § 1 (part), 2013). 133. The project includes a new or altered irrigation system and therefore the irrigation must be scheduled between 8:00 p.m. and 10:00 a.m. unless weather conditions prevent it. Operation of the irrigation system outside the normal watering window is allowed for auditing and system maintenance. Total annual applied water shall be less than or equal to maximum applied water allowance (MAWA) as calculated per the potable water use reduction tier. PAMC 16.14.310 (Ord. 5220 § 1 (part), 2013). ). The project applicant shall indicate the requirements on the Permit Plans. Page 29 134. The project is outside the boundaries of the recycled water project area and is greater then 1,000 square feet and therefore must install recycled water infrastructure for irrigation systems. PAMC 16.14.230 (Ord. 5220 § 1 (part), 2013). The project applicant shall indicate the requirements on the Permit Plans. 135. The project is a nonresidential new construction or renovation project and has a value exceeding $25,000 and therefore must meet Enhanced Construction Waste Reduction Tier 2. PAMC 16.14.240 (Ord. 5220 § 1 (part), 2013). The project shall use the Green Halo System to document the requirements. 136. The project includes non-residential demolition and therefore must meet the Enhanced Construction Waste Reduction - Tier 2. PAMC 16.14.270 (Ord. 5220 § 1 (part), 2013). The project shall use the Green Halo System to document the requirements. 137. The project is a new non-residential structure and therefore must comply with the City of Palo Alto Electric Vehicle Charging Ordinance 5263. The project shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for at least 25% of parking spaces, among which at least 5% (and no fewer than one) shall be EVSE Installed. The requirements shall be applied separately to accessible parking spaces. See Ordinance 5263 for EVSE definitions, minimum circuit capacity, and design detail requirements. PAMC 16.14.380 (Ord. 5263 § 1 (part), 2013) See https://www.cityofpaloalto.org/civicax/filebank/documents/43818 for additional details. EVSE parking analysis must be shown on the Permit Plans. The following are required at Post-Construction after 12 months of occupancy. 138. The project is a nonresidential projects exceeding $100,000 valuation and therefore must acquire an Energy STAR Portfolio Manager Rating and submit the rating to the City of Palo Alto once the project has been occupied after 12 months. PAMC 16.14.250 (Ord. 5220 § 1 (part), 2013). Submittal info can be found at: https://www.cityofpaloalto.org/gov/depts/utl/business/benchmarking_your_building.asp. The following are optional to the project team: Optional Zero Net Energy Design Review: 139. OPTIONAL: The project is a new construction or remodel of a commercial project and therefore may elect to engage the City of Palo Alto consultant, BASE Energy Inc, free of charge. BASE will assist the project in targeting Zero Net Energy and exceeding the Title 24 Energy Code. Rebates may be available via working with Base. For more information, visit cityofpaloalto.org/commercial program or call 650.329.2241. The applicant may also contact Ricardo Sfeir at BASE Energy at rsfeir@baseco.com to schedule a project kick-off. Utilities Incentives & Rebates 140. OPTIONAL: The project may be eligible for several rebates offered through the City of Palo Alto Utilities Department. These rebates are most successfully obtained when planned into the project early in design. For the incentives available for the project, please see the information provided on Page 30 the Utilities website: http://www.cityofpaloalto.org/gov/depts/utl/business/rebates/default.asp Bird-Friendly Building Design 141. OPTIONAL: The project contains a glazed façade that covers a large area. The project should consider bird-safe glazing treatment that typically includes fritting, netting, permanent stencils, frosted glass, exterior screens, and physical grids placed on the exterior of glazing or UV patterns visible to birds. In some cases, bird-friendly treatment is invisible to humans. Vertical elements of the window patterns should be at least 1/4 inch wide at a minimum spacing of 4 inches, or have horizontal elements at least 1/8 inch wide at a maximum spacing of 2 inches. The applicant should reference the San Francisco Guidelines for Bird-Safe Buildings: a. http://www.sf-planning.org/index.aspx?page=2506. SECTION 5. Term of Approval. Architectural Review Approval. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s), if applicable, is not secured for the project within the time limit specified above, the ARB approval shall expire and be of no further force or effect. Application for extension of this entitlement may be made 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 1050 Page Mill Road Page 1 __________________________________________________________________________________ ATTACHMENT B COMPREHENSIVE PLAN TABLE 1050 Page Mill Road / File No. 14PLN-00074 __________________________________________________________________________________ It has been determined that on balance the project is in conformance with the following policies of the 2010 Comprehensive Plan: COMPREHENSIVE PLAN POLICY CONSISTENCY REVIEW POLICY B-1: Use a variety of planning and regulatory tools, including growth limits, to ensure that business change is compatible with the needs of Palo Alto neighborhoods. The proposed project will no longer have direct access to California Avenue making it compatible with the nearby neighborhood. POLICY B-4: Nurture and support established businesses as well as new businesses. POLICY B-29: Facilitate Stanford’s ability to respond to changing market conditions that support the long-term viability of the Research Park. GOAL L-5: High Quality Employment Districts, Each With Their Own Distinctive Character and Each Contributing to the Character of the City as a Whole. The proposed buildings will be more open and energy efficient attracting world class and forward thinking companies that keep the Stanford Research Park vibrant. POLICY L-5: Maintain the scale and character of the City. Avoid land uses that are overwhelming and unacceptable due to their size and scale. The proposed buildings are in keeping with height and massing of surrounding Research Park buildings. The proposed two-story project provides a more inviting presence on Page Mill Road and is well-articulated in keeping with the size and scale of surrounding structures. POLICY L-42: Encourage Employment Districts to develop in a way that encourages transit, pedestrian and bicycle travel and reduces the number of auto trips for daily errands. PROGRAM L-43: Modify existing zoning regulations and create incentives for employers to provide employee services in their existing buildings—for example, office support services, restaurants, convenience stores, public gathering places, and child care facilities—to reduce the need for employees to drive to these services. The The project includes a minimum of 10,745 sf of amenity space, such as cafeterias and/or gyms that will be used by on-site employee and will facilitate the reduction of vehicle use. POLICY T-19: Improve and add attractive, secure bicycle parking at both public and private facilities. This project is consistent in that both adequate secured and public bicycle parking facilities, for a total of 101 spaces, would be provided at the project site. GOAL L-6: Well-designed Buildings that Create Coherent Development Patterns and Enhance City Streets and Public Spaces. POLICY L-48: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces. To help achieve quality design, the Architectural Review Board reviews buildings and site design for commercial and multi-family residential projects. The proposed building incorporates a unique ribbon sunshade and high quality materials which will be compatible with the various styles of the Research Park. 1050 Page Mill Road Page 2 POLICY L-43: Provide sidewalks, pedestrian paths, and connections to the citywide bikeway system within Employment Districts. Pursue opportunities to build sidewalks and paths in renovation and expansion projects. PROGRAM L-44: Design the paths and sidewalks to be attractive and comfortable and consistent with the character of the area where they are located. POLICY T-1: Make land use decisions that encourage walking, bicycling, and public transit use. POLICY T-23: Encourage pedestrian friendly design features such as sidewalks, street trees, on street parking, public spaces, gardens, outdoor furniture, art and interesting architectural details While the project does not provide legal access easements between properties, significant pedestrian pathways are provided throughout the project and along Page Mill Road that can be used to gain access to other parts of the Research Park. The proposal provides replacement office space in close proximity to transit facilities and the California Avenue commercial district. Bicycle usage is encouraged with ample bike parking. The project includes a large central plaza that creates outdoor rooms and opportunities for pedestrian activities. The unique design of the buildings, mature landscaping, and on site art work also encourage exploration of the site by pedestrians. POLICY L-44: Develop the Stanford Research Park as a compact employment center served by a variety of transportation modes. The Research Park has developed over time into a sprawling campus like setting. However, new projects now make accommodations for pedestrians, bicycles and shuttle buses to better transport employees to transit centers. POLICY L-70: Enhance the appearance of streets and other public spaces by expanding and maintaining Palo Alto’s street tree system. Page Mill Road is an Expressway maintained by the County and requires all trees be set back 7 feet. While this setback is not ideal, the City balances the need for safety with large canopy trees that will grow to shade the sidewalk. POLICY L-73: Consider public art and cultural facilities as a public benefit in connection with new development projects. Consider incentives for including public art in large development projects. The project will include public art as a component of the design, as part of the City’s art program. POLICY L-75: Minimize the negative physical impacts of parking lots. Locate parking behind buildings or underground wherever possible. POLICY L-77: Encourage alternatives to surface parking lots to minimize the amount of land that must be devoted to parking, provided that economic and traffic safety goals can still be achieved. The project is consistent with this policy as a significant portion of the parking would be situated in below grade garages. Surface parking would be situated around the perimeter of the site with only small portions viewed by the public from Page Mill Road. POLICY L-76: Require trees and other landscaping within parking lots. The proposal includes retention of mature perimeter trees along with a number of new trees in and around the parking lot. The addition of the new landscaping provides 50% shading. Note: This list is not exhaustive. Additional policies/programs may be added to this table for subsequent review and comment by the ARB and the public. ATTACHMENT C ZONING COMPARISON TABLE 1050 Page Mill Road 14PLN-00074 Table 1: COMPARISON WITH CHAPTER 18.20 (RP DISTRICT) Regulation Required in Research Park (RP) zone Existing Proposed Minimum Site Area 1 acre 13.48 acres 13.48 acres Minimum Front Setback 50 feet special setback along Page Mill Road 57.7 feet 50 feet + Interior Side Setback 20 feet 70 feet +/- 77 feet + Rear Setback 20 feet 29.4 feet 77 feet + Min. yard for site lines abutting or opposite residential districts 20 feet n/a n/a Max. Total Floor Area Ratio 40% (234,945 sf) 45.27% (265,895 sf) 45.27% (265,895 sf + 10,745 sf amenity space) Max. Site Coverage 30% (176.209 sf) 30.65% (180,045 sf) 25.52% (149,911 sf) Max. Building Height 35 ft (with additional 15 feet for mechanical) or 25 ft when located within 40 ft of residentially zoned property (4,5) 34 feet +/- (with additional mech. screen) 35 feet (mechanical screen will be 7 ft+/-) (4) See subsection 18.20.040(e) below for exceptions to height and floor area limitations in the ROLM and RP zoning districts. (5) Residential zones include R-1, R-2, RE, RMD, RM-15, RM-30, RM-40 and residential Planned Community (PC) zones. Table 1: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type of Parking Required Existing Proposed Auto Parking Bike Parking Loading Spaces 947 parking spaces (1/300 sf of gross floor area) 564 spaces 951 spaces, with 49 additional spaces in landscape reserve 89 spaces (1/3,000 sf - 80% long term and 20% short term bike parking) unknown 101 spaces (77 long term, 24 short term) 3 loading spaces for 200,000 sf or greater 6 loading docks 8 loading areas * On-site employee amenity space is exempted from the parking requirements 1 0 5 0 P a g e M i l l R o a d, P a l o A l t o Project Narrative - Formal ARB Review April 2, 2015 To: City of Palo Alto Planning Division Architectural Review Board Members From: 1050 Page Mill Road Property, LLC - Applicant Robert Giannini, Architect Subject: 1050 Page Mill Road, Palo Alto Preliminary Architectural Review Board Review We have benefited from our Preliminary hearing before the ARB on this project and are pleased to submit this application for your approval. We have listened to your valuable comments, worked with staff and our neighbors, and have refined the design and architecture in response. We are excited to take this meaningful step and have intentionally stayed within the City’s guidelines (Zoning and Design Guidelines) for development of this property so as to respect the community. 1050 Page Mill Road Property, LLC is the sponsor of this application for a new +/- 265,895 square foot, four building energy efficient Class-A office project to replace existing, obsolete buildings on the project site. The site, on the north side of Page Mill Road at Hansen Way, has a magnificent and expansive frontage. The site is +/- 13.48 acres and is zoned Research Park (RP). It currently contains two buildings; the front building facing Page Mill is a 2-story office building, and the rear building, internal to the site is primarily high bay one-story with a two-story portion at its south end. Building Area - Replacement Square Footage: The proposed new buildings will contain the same total floor area as the two existing buildings together, as reviewed and refined in our discussions with staff. In addition we are providing 10,745 sf of amenity space allocation bringing the total area of the project to 265,895 square feet. Because the amenity space does not count toward FAR, the proposed area of the new project represents replacement square footage. Parking: The site is currently 100% surface parked, and is, in fact, under-parked by current zoning standards. This proposal would bring the site to current parking standards. The proposed project also has surface parking, however In order to maximize the open area over half the parking will be below grade. Parking will be provided on the site at a ratio of 1/300sf, for a total of +/- 887 spaces. This ratio is the Palo Alto minimum requirement. We have provided space for an additional 86 spaces that the Owner may add in the future if needed by tenants, and to help ensure that project parking does not need to expand to the surrounding neighborhood streets. This has been shown on the site plan as “landscape reserve.” The total potential parking on site is therefore 973 spaces. Form4 Architecture, Inc. Attachment D 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 2 Palo Alto, California April 2, 2015 Please refer to the following table for a summary of the project’s data. We look forward to feedback from the Architectural Review Board and the City of Palo Alto on this proposed redevelopment project. Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 3 Palo Alto, California March 3, 2014 Architectural Design Narrative It is a pleasure to provide this design application for 1050 Page Mill Road. Several elements of the design were identified for further refinement and study as follows: SITE a)Conceal surface parking with more landscape. b)Create smaller landscape “rooms” for more intimate sized spaces in large site. c)Study the visitor experience and entry sequence. d)Study how to conceal cars as they queue after entering the site from Page Mill Road. SITE & ARCHITECTURE e)Explore ways to be even bolder with the curving aluminum ribbons and extend into the landscape. ARCHITECTURE f)Address issues of sustainability, and also the potential sight of interior office clutter, in buildings that with predominantly glass skins. g)Study ways to differentiate the buildings. Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 4 Palo Alto, California April 2, 2015 S I T E I S S U E S: ! a)Conceal surface parking with more landscape. Our initial proposal located about half the parking on the surface, and half below grade. We have now parked a higher ratio of cars in the below grade structure: 539 to 348 with space for an additional 86 surface spaces land banked. Circulation around the perimeter was also reworked in collaboration with the City arborist to avoid existing trees - especially at the secondary right in / right out driveway on Page Mill. The end result is there is less surface parking, and what remains is better screened. ! Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 5 Palo Alto, California March 3, 2014 ! b)Create smaller landscape “rooms” for more intimate sized spaces in large site; and c)Study the visitor experience and entry sequence. The diagram above shows the programming for the central open space: •Bicyclists entering the site from City streets will use the loop road to arrive at the main entry of each building where parking is provided for them. Secure parking is also provided for bikes in the garage of each building. Bicyclists are not encouraged to use the paths through the central open space as a courtesy to pedestrians circulating between buildings. See sheets A1.1 and A1.2 for bike parking locations. •Cars also use the loop road to quickly access surface and below grade parking. People that surface park enter the building through the auto side of the through lobbies. People who park in the garages enter the lobbies through the main elevator of each building. •The major pedestrian paths through the central open space are two broad diagonal promenades. One starts at the Page Mill main entry (near a city bus stop - see Site Circulation Diagram Sheet MP-2.4), and cuts all the way through the site. It starts at the street and moves through a series of wedge shaped land forms that are a stylized California native landscape. Diagonal paths are defined by the land forms and pass on bridges over bio-swales, past existing oak trees that are being saved, and walks that offer “short cuts” between buildings. The paths are dotted with spots to pull off, talk, meet, work outdoors, or just sit. •The promenade continues deeper into the site past a large Campus Green which can accommodate large numbers of people in “all hands meetings.” •The wedge of outdoor space ends in Town Square - a decomposed granite area with benches under a bosque of canopy trees. The edge along the far building (Building 3) is made up of broad steps that create a perch that looks back over the entire central space. •From that apex one may walk back along the second diagonal promenade that leads you back through the site with the front building (Building 1) as its terminus. Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 6 Palo Alto, California April 2, 2015 •A visitor entering the site by car experiences the long view through the central space before they turn right or left onto the loop road and make their way to each buildings main entry or garage ramp. The buildings all have through lobbies so once again as you enter a building you experience the open space on the other side of the lobby. •Pedestrians with business at the site may walk back through the diagonal promenades and the central green and enter the building through their garden entry sides. d)Study how to conceal cars as they queue after entering the site from Page Mill Road. ! The loop road has been redesigned to better move cars quickly through the site. Originally we split the road creating a decision point as you enter with a double row of parking. Our traffic consultant suggested that the traffic moves more quickly with no decision point, and less parking. This has the added benefit of more landscaping at this key point as well, and making for a safer pedestrian crossing from the central open space. e)Explore ways to be even bolder with the curving aluminum ribbons and extend into the landscape. There had been a suggestion that perhaps the aluminum ribbons on the building facades might break away and become more whimsical. We explored this, however became concerned that the character of the design changed from the goal of clean simplicity. The notion of pulling the building architecture into the landscaping was strong, however. Now it is the diagonal paths that slice through the site that become the landscape expression of the building’s ribbons. Changing from our original curvilinear gardenesque landscape to this more stylized version of the California hills seem to keep the building and landscape in the same family. Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 7 Palo Alto, California March 3, 2014 ! In addition we are proposing ponds along the promenades to reflect the ribbons into the water at their most dynamic inflection points. This will provide an ever changing impression of the ribbons leaping off the buildings perhaps than a literal material move. Of course water is a precious commodity in California - especially in drought years, and these ponds utilize a very small amount of water - as shallow as only a few inches. Besides providing that magical quality of water, these ponds, as well as the vertical glass fins, act as buffers between the pedestrian walkways and the interior offices. f)Address issues of sustainability, and also the potential sight of interior office clutter, in buildings that with predominantly glass skins. Core goals of the project are to bring the outdoors in, and to be highly sustainable. This has become even more challenging with the adoption of more stringent T-24 guidelines. We remain on track with both goals, however. Following are some of the strategies: •Careful daylighting studies, and the existence of even better LED lighting mean we can hold down the wattage necessary to light the building. Following is one of the hundreds of daylighting diagrams we have studied: ! Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 1 0 5 0 P A G E M I L L R O A D - Project Narrative - Formal ARB 8 Palo Alto, California April 2, 2015 •We are providing complete PV arrays for the building roofs. ! •Sun shading has become more refined and complete. ! •One element addresses both sustainability, and addressing seeing visual clutter through clear glass. We will specified fritted glass for the lowest 30” of both floors. This is a tried and true approach for us to control the clutter of desks and boxes on the floors, and also allows us to insulate that zone where needed. g)Study ways to differentiate the buildings. The above image also shows one of the strongest ways we have chosen to differentiate the buildings. The glass fins below the ribbon on the first floor, and to one side of the lobby, will be a transparent color; a different one for each building. It will occur on both the auto side and the courtyard side to assist in wayfinding. Thanks very much for your review of the various design aspects of this project! Form4 Architecture, Inc. 126 Post Street, 3rd floor, San Francisco, CA 94108 415 775-8748 fax 415 775-8752 ATTACHMENT E Attachment F Attachment G Environmental Impact Report (Hardcopies for P&TC, libraries and staff) http://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2642&TargetID-319 Attachment H 1050 Page Mill Road Project Statement of Findings SCH # 2014042050 December 2015 1050 Page Mill Road Statement of Finding i December 2015 TABLE OF CONTENTS Table of Contents ........................................................................................................................................ i I. Overview and Introduction ......................................................................................................... 1 II. Procedural History .................................................................... Error! Bookmark not defined. III. Statutory Requirements for Findings ......................................................................................... 2 Legal Effects of Findings ............................................. Error! Bookmark not defined. IV. Definitions ...................................................................................................................................... 3 V. Project Background ....................................................................................................................... 4 VI. Project Objectives and Description ............................................................................................. 4 Project Objectives ............................................................................................................. 4 Project Description ........................................................................................................... 4 VII. Record of Proceedings .................................................................................................................. 5 VIII. General Findings ........................................................................................................................... 6 Impacts Determined to be Less Than Significant .... Error! Bookmark not defined. Significant and Potentially Significant Impacts Reduced to Less Than Significant With Implementation of Mitigation Measures ............................................................ 6 Significant and Unavoidable Impacts ......................................................................... 12 IX. Project Alternatives Findings .................................................................................................... 12 Feasibility of Project Alternatives ................................................................................ 12 X. Growth Inducement Findings ................................................................................................... 14 XI. Cumulative Impacts Findings ................................................................................................... 15 XII. Statement of Overriding Considerations ................................................................................. 18 Balancing Competing Goals ....................................... Error! Bookmark not defined. XIII. Conclusion ................................................................................................................................... 18 1050 Page Mill Road Statement of Finding i December 2015 I. OVERVIEW AND INTRODUCTION This Statement of Findings is made with respect to approval of a Major Architectural Review for the 1050 Page Mill Road project and states the findings of the City Council of the City of Palo Alto (“City Council”) relating to the potentially significant environmental effects of the project. This Statement of Findings addresses the environmental effects associated with the proposed 1050 Page Mill Road project, located in the City of Palo Alto on APN 142-20-091. The City Council, in the exercise of its independent judgment, makes and adopts the following findings to comply with the requirements of the California Environmental Quality Act (“CEQA”; Pub. Resources Code, §§ 21000 et seq.), and Sections 15091, 15092, and 15093 of the CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.). All statements set forth in this Resolution constitute formal findings of the City Council, including the statements set forth in this paragraph. These findings are made relative to the conclusions of the City of Palo Alto 1050 Page Mill Road Project Final Environmental Impact Report (State Clearinghouse No. 2014112015) (the “Final EIR”), which includes the Draft Environmental Impact Report (“Draft EIR”). The Final EIR addresses the environmental impacts associated with implementation of the 1050 Page Mill Road Project (the “Project”, as further defined in Section 2(b) below) and is incorporated herein by reference. The project requests that the City take the following actions: 1. Certify an Environmental Impact Report and adopt the Mitigation Monitoring Plan. 2. Approve a Major Architectural Review. 3. Approve an Environmental Compliance Review. Approval of the Major Architectural Review and other requested entitlements constitutes the project for purposes of CEQA and these determinations of the City Council. These findings are based upon the entire record of proceedings for the Project. The City Council finds as follows: 1. The record of proceedings in Section VII of these findings are correct and accurate. 2. The Final EIR has been prepared in accordance with all requirements of CEQA, the CEQA Guidelines, and the City’s Environmental Impact Ordinance, codified in Title 11 of the City’s Municipal Code. 3. The Draft EIR was presented to and reviewed by the Architectural Review Board and the Final EIR was presented to the Planning and Transportation Commission and the City Council. Both the Architectural Review Board and the Planning and Transportation Commission provided a recommendation to the City Council regarding certification of the Final EIR. 4. The Final EIR was prepared under the supervision of the City and reflects the independent judgment of the City. The City Council has reviewed the Final EIR, and bases the findings stated below on such review and other substantial evidence in the record. 1050 Page Mill Road Statement of Findings and Overriding Considerations 2 September 2015 5. The City finds that the Final EIR considers a reasonable range of potentially feasible alternatives, sufficient to foster informed decision making, public participation and a reasoned choice, in accordance with CEQA and the CEQA Guidelines. 6. The City Council hereby certifies the Final EIR as complete, adequate and in full compliance with CEQA and as providing an adequate basis for considering and acting upon the 1050 Page Mill Road project and makes the following specific findings with respect thereto. The City Council has considered evidence and arguments presented during consideration of the Project and the Final EIR. In determining whether the Project may have a significant impact on the environment, and in adopting the findings set forth herein, the City Council certifies that it has complied with Public Resources Code sections 21081, 21081.5, and 21082.2. 7. The City Council agrees with the characterization of the Final EIR with respect to all impacts initially identified as “less than significant” and finds that those impacts have been described accurately and are less than significant as so described in the Final EIR. This finding does not apply to impacts identified as significant or potentially significant that are reduced to a less than significant level by mitigation measures included in the Final EIR. The disposition of each of those impacts and the mitigation measures adopted to reduce them are addressed specifically in the findings below. 8. All mitigation measures in the Final EIR are adopted and incorporated into the 1050 Page Mill Road project. 9. The Mitigation Monitoring Program (MMP) includes all mitigation measures adopted with respect to the project and explains how and by whom they will be implemented and enforced. 10. The mitigation measures and the MMP have been incorporated into the Conditions of Approval for the Major Architectural Review and Environmental Compliance Review and have thus become part of and limitations upon the entitlements conferred by the Major Architectural Review, Environmental Compliance Review and other project approvals. 11. The descriptions of the impacts in these findings are summary statements. Reference should be made to the Final EIR for a more complete description. 12. The Planning and Community Environment Department is directed to file a Notice of Determination with the County Clerk within five (5) working days in accordance with CEQA §21152(a) and CEQA Guidelines §15094. III. STATUTORY REQUIREMENTS FOR FINDINGS Significant effects of the 1050 Page Mill Road project were identified in the Draft EIR. CEQA §21081 and CEQA Guidelines §15091 require that the Lead Agency prepare written findings for identified significant impacts, accompanied by a brief explanation of the rationale for each finding. Less than significant effects (without mitigation) of the project were also identified in the Draft EIR and Initial Study. CEQA does not require that the Lead Agency prepare written findings for less than significant effects. 1050 Page Mill Road Statement of Findings and Overriding Considerations 3 September 2015 CEQA requires that the Lead Agency adopt mitigation measures or alternatives, where feasible, to avoid or mitigate significant environmental impacts that would otherwise occur with implementation of the project. Project mitigation or alternatives are not required, however, where substantial evidence in the record demonstrates that they are infeasible or where the responsibility for modifying the project lies with another agency. Specifically, CEQA Guidelines §15091 states: (a) No public agency shall approve or carry out a project for which an EIR has been certified which identifies one or more significant environmental effects of the project unless the public agency makes one or more written findings for each of those significant effects, accompanied by a brief explanation of the rationale for each finding. The possible findings are: (1) Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the final EIR. (2) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency. (3) Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIR. The “changes or alterations” referred to in §15091(a)(1) above, that are required in, or incorporated into, the project which mitigate or avoid the significant environmental effects of the project, may include a wide variety of measures or actions as set forth in Guidelines §15370, including avoiding, minimizing, rectifying, or reducing the impact over time, or compensating for the impact by replacing or providing substitute resources. IV. DEFINITIONS The following definitions apply where the subject words or acronyms are used in these findings: “ARB” means the City of Palo Alto Architectural Review Board. “ACM” means asbestos-containing material. “BAAQMD” means the Bay Area Air Quality Management District. “City Council” means the City of Palo Alto City Council. “CEQA” means the California Environmental Quality Act (Pub. Resources Code §21000 et seq.). “Comprehensive Plan” means the City of Palo Alto Comprehensive Plan, as adopted in 2007 with subsequent amendments. “Condition” means a Condition of Approval adopted by the City in connection with approval of the project. 1050 Page Mill Road Statement of Findings and Overriding Considerations 4 September 2015 “City” means the City of Palo Alto. “Draft EIR” means the Draft Environmental Impact Report dated July 2015 for the proposed 1050 Page Mill Road project. “DTSC” means the California Department of Toxic Substances Control. “EIR” means environmental impact report. “Environmental Impact Ordinance” means the City of Palo Alto Environmental Impact Ordinance, as codified in Title 11 of the City of Palo Alto Municipal Code. “EPA” means the U.S. Environmental Protection Agency. “Final EIR” means the Final EIR as prepared for the project (which includes the NOP and Initial Study dated November 5, 2014, the Draft EIR dated July 2015, the Final EIR dated October 2015). “LCM” means lead-containing material. “MMP” means the Mitigation Monitoring Program for the project. “NOP” means Notice of Preparation of an EIR. “P&TC” means the City of Palo Alto Planning and Transportation Commission. “PCE” means the City of Palo Alto Planning and Community Environment Department. “Project” means the proposed 1050 Page Mill Road project. “Zoning Ordinance” means the City of Palo Alto Zoning Ordinance, including all amendments thereto. V. PROJECT BACKGROUND The project would demolish the existing 265,895 square feet of office, research and development, and warehouse space at 1050 Page Mill Road and construct four new office buildings totaling 265,895 square feet, and 10,745 square feet of amenity space. The existing and proposed office use is consistent with the Research and Development land use and zoning designations for the site. VI. PROJECT OBJECTIVES AND DESCRIPTION Project Objectives The Project Objectives of the project applicant are set forth in Section 2.3 of the Draft EIR, which is incorporated herein by reference. Project Description The proposed project would involve the demolition of 265,895 square feet of office, research and development, and warehouse space and 564 surface parking spaces, and the construction of a four two-story office buildings totaling 276,640 square feet (with 265,895 square feet for office space and 10,745 square feet of amenity space). A conceptual site plan of the proposed project is shown in Draft EIR Figure 2.4, and conceptual renderings are shown in Draft EIR Figure 2.5. 1050 Page Mill Road Statement of Findings and Overriding Considerations 5 September 2015 A complete description of the project as proposed by the project applicant is provided in Section 2.4 of the Draft EIR. VII. RECORD OF PROCEEDINGS In accordance with CEQA §21167.6(e), the record of proceedings for the City’s decision on the 1050 Page Mill Road project includes, without limitation, the following documents:  The NOP and all other public notices issued by the City in conjunction with the project;  All comments submitted by agencies or members of the public during the comment period on the NOP (provided in Appendix A of the Draft EIR);  The Draft EIR (July 2015) for the project;  All comments submitted by agencies or members of the public during the comment period on the Draft EIR;  All comments and correspondence submitted to the City with respect to the Project, in addition to timely comments on the Draft EIR;  The Final EIR (October 2015) for the project, including comments received on the Draft EIR and responses to those comments;  Documents cited or referenced in the Draft and Final EIRs;  The project MMP;  All findings and resolutions adopted by the City in connection with the project and all documents cited or referred to therein;  All reports, studies, memoranda, maps, staff reports, or other planning documents relating to the project prepared by the City, consultants to the City, or responsible or trustee agencies with respect to the City’s compliance with the requirements of CEQA and with respect to the City’s action on the project;  All documents submitted to the City (including the P&TC and City Council) by other public agencies or members of the public in connection with the project;  Any minutes and/or verbatim transcripts of all information sessions, public meetings, and public hearings held by the City in connection with the project;  Any documentary or other evidence submitted to the City at such information sessions, public meetings and public hearings;  The City of Palo Alto Comprehensive Plan and all environmental documents prepared in connection with the adoption of the Comprehensive Plan;  The City of Palo Alto Environmental Impact Ordinance and Zoning Ordinance (City of Palo Alto Municipal Code, Title 11 and Title 18), and all other City Code provisions cited in materials prepared by or submitted to the City; 1050 Page Mill Road Statement of Findings and Overriding Considerations 6 September 2015  Any and all resolutions and/or ordinances adopted by the City regarding the project, and all staff reports, analyses, and summaries related to the adoption of those resolutions;  Matters of common knowledge to the City, including, but not limited to federal, state, and local laws and regulations;  Any documents cited in these findings, in addition to those cited above; and  Any other materials required for the record of proceedings by CEQA §21167.6(e). The City Council has relied on all of the documents listed above in reaching its decision on the project, even if not every document was formally presented to the City Council, P&TC or City Staff as part of the City files generated in connection with the project. Without exception, any documents set forth above not found in the project files fall into one of two categories. Many of them reflect prior planning or legislative decisions of which the City Council was aware in approving the 1050 Page Mill Road project. (See City of Santa Cruz v. Local Agency Formation Commission (1978) 76 Cal.App.3d 381, 391-392; Dominey v. Department of Personnel Administration (1988) 205 Cal.App.3d 729, 738, fn. 6.) Other documents influenced the expert advice provided to City staff or consultants, who then provided advice to the City Council. For that reason, such documents form part of the underlying factual basis for the City Council’s decisions relating to approval of the 1050 Page Mill Road project. (See Public Resources Code §21167.6(e)(10); Browning-Ferris Industries c. City Council of City of San Jose (1986) 181 Cal.App.3d 852, 866; Stanislaus Audubon Society, Inc. v. County of Stanislaus (1995) 33 Cal.App.4th 144, 153, 155.) The official custodian of the record is the Planning and Community Environment Director, 285 Hamilton Avenue, Palo Alto, CA 94301. VIII. GENERAL FINDINGS Significant and Potentially Significant Impacts Reduced to Less Than Significant With Implementation of Mitigation Measures The City Council agrees with the characterization in the Final EIR with respect to all impacts initially identified as “significant” or “potentially significant” that are reduced to less than significant levels with implementation of the mitigation measures identified in the Final EIR. In accordance with CEQA Guidelines §15091(a), a specific finding is made for each impact and its associated mitigation measures in the discussions below. Mitigation measures are summarized below and are presented in full in the EIR and the MMP, which is incorporated herein by reference. Air Quality Impact 3.1-1: Violate any air quality standard or contribute substantially to direct and/or indirect emissions of criteria air pollutants by emitting more than 54 pounds per day and/or 10 tons per year of nitrogen oxides (NOx), reactive organic gases (ROG), and fine particulate matter (PM2.5), or by emitting more than 82 pounds per day and/or 15 tons per year of coarse particulate matter (PM10). 1050 Page Mill Road Statement of Findings and Overriding Considerations 7 September 2015 Air pollution emissions modeling for the project indicated that emissions would remain below these thresholds as long as the construction control measures included in Mitigation Measure AIR-1 are implemented. These include the standard construction emission control measures required by the BAAQMD as well as limitations on the maximum hours per day that each piece of equipment may operate and requirements for use of Tier 2 and Tier 3 engines with Level 3 Diesel Particulate Filters. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of Mitigation Measure AIR-1 will ensure that the potential for the project to adversely impact air quality would be reduced to a less- than-significant level. Explanation: This mitigation measure will ensure construction emissions remain below the BAAQMD thresholds for criteria pollutants. This measure would provide the maximum feasible reduction in project construction air pollution emissions and reduce the potential for exceeding non-attainment standards to a less-than- significant level. Significance After Mitigation: Less Than Significant. Biological Resources Impact 3.2-1:Adversely affect special status species directly or through habitat modification, interfere substantially with wildlife movement, or impede the use of native wildlife nursery sites. The project could affect nesting birds and/or roosting bats. Mitigation Measure BIO-1 requires completion of a nesting bird survey prior to and throughout construction and proscribes protection/avoidance measures to be implemented if nesting birds are identified. Mitigation Measure BIO-2 requires completion of a bat survey prior to construction and proscribes protection/avoidance measures to be implemented if roosting bats are identified. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measures identified above and included in the MMP will ensure that the potential for the project to adversely affect special status species, directly or indirectly, would be reduced to a less-than-significant level. Explanation: These mitigation measures will ensure nesting birds, roosting bats and other special status species are identified and that proper protocol is followed prior to beginning or resuming construction. This will reduce disturbances to active nesting areas and roosts, and disruption of reproductive behavior for special status species found on construction sites. Significance After Mitigation: Less Than Significant. 1050 Page Mill Road Statement of Findings and Overriding Considerations 8 September 2015 Hazards and Hazardous Materials Impact 3.3-1: Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials. Hazardous materials used routinely for construction as well as hazardous materials present in the onsite soils and buildings could be released to the environment during demolition and construction. Mitigation Measures HAZ-1 through HAZ-6 identify Best Management Practices and applicable California Department of Industrial Relations-Division of Occupational Safety and Health standards, require implementation of a Soil Management Plan and asbestos-removal plan, require inspection and a disposal plan for any polychlorinated biphenyls identified onsite, and require preparation and implementation of a dewatering plan and detailed groundwater extraction design. These measures would ensure that hazardous materials are not released to the environment. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measures identified above and included in the MMP will ensure that the potential for the project to result in hazardous material exposure during construction would be reduced to a less-than-significant level. Explanation: These mitigation measures will ensure that hazardous materials are controlled and disposed of properly during construction. These mitigation measures will reduce the potential for people or the environment to be exposed to hazardous construction materials on- or offsite to less-than-significant levels. Significance After Mitigation: Less Than Significant. Impact 3.3-2: Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment. Hazardous materials used routinely for construction as well as hazardous materials present in the onsite soils and buildings could be released to the environment during demolition and construction. Mitigation Measure HAZ-6 requires preparation and implementation of a dewatering plan and detailed groundwater extraction design and Mitigation Measure HAZ- 7 identifies construction standards to ensure that the proposed buildings are waterproof and appropriately ventilated such that individuals are not exposed to unacceptable concentrations of hazardous materials. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measure identified above and included in the MMP will ensure that the impacts related to contaminated soils and groundwater would be reduced to a less-than-significant level. 1050 Page Mill Road Statement of Findings and Overriding Considerations 9 September 2015 Explanation: These mitigation measures will ensure that contaminated soils and groundwater are removed from the project site and disposed of in an appropriate treatment facility, and prevent vapors from migrating from groundwater into the indoor air of the basement parking garage. Significance After Mitigation: Less Than Significant. Impact 3.3-3: Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would create a significant hazard to the public or the environment. The project site is located in an area with a known contaminated groundwater plume. Mitigation Measure HAZ-7 identifies construction standards to ensure that the proposed buildings are waterproof and appropriately ventilated such that individuals are not exposed to unacceptable concentrations of hazardous materials. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measure identified above and included in the MMP will ensure that the impacts related to groundwater vapors would be reduced to a less-than-significant level. Explanation: This mitigation measure will ensure vapors cannot migrate from the groundwater into the indoor air of the basement parking garage, and identify minimum requirements for garage ventilation. Significance After Mitigation: Less Than Significant. Impact 3.3-4: Create a significant hazard to the public or the environment from existing hazardous materials contamination by exposing future occupants or users of the site to contamination in excess of soil and groundwater cleanup goals developed for the site. The project site is located in an area with a known contaminated groundwater plume. Mitigation Measure HAZ-7 identifies construction standards to ensure that the proposed buildings are waterproof and appropriately ventilated such that individuals are not exposed to unacceptable concentrations of hazardous materials. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measures identified above and included in the MMP will ensure that the impacts related to groundwater vapors would be reduced to a less-than-significant level. 1050 Page Mill Road Statement of Findings and Overriding Considerations 10 September 2015 Explanation: This mitigation measure will ensure vapors cannot migrate from the groundwater into the indoor air of the basement parking garage, and identify minimum requirements for garage ventilation. Significance After Mitigation: Less Than Significant. Noise Impact 3.4-1: Expose people to or generate noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies. Individuals within the proposed buildings at the project site could experience interior noise levels that exceed the City’s standards. Mitigation Measure NOI-1 identifies minimum Sound Transmission Class (STC) ratings for windows and construction standards for exterior wall construction that will ensure the interior noise levels meet the California Green Building Standards Code requirement of Leq-1-hour 50 dBA or less. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measures identified above and included in the MMP will ensure that the impacts related to generated noise level would be reduced to a less-than-significant level. Explanation: This mitigation measure will ensure that performance standard is met by final building design to reduce amount of exposure to, and noise levels generated that exceed the standards established in the local general plan or noise ordinance. Significance After Mitigation: Less Than Significant. Impact 3.4-4: Noise generated during operation of the proposed project could cause a substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project. Rooftop mechanical equipment could generate an increase in noise levels at the nearest residential property that exceed 8 decibels. Mitigation Measure NOI-2 establishes the maximum allowable noise level for roof-top equipment to ensure that the project does not result in a significant permanent increase in ambient noise levels in the vicinity. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measure identified above and included in the MMP will ensure that the impacts related to noise generated during construction would be reduced to a less-than-significant level. Explanation: This mitigation measure will ensure that rooftop mechanical equipment falls under the maximum noise level requirement reducing the risk of generating noise 1050 Page Mill Road Statement of Findings and Overriding Considerations 11 September 2015 that will cause a permanent substantial increase in ambient noise levels in the project vicinity. Significance After Mitigation: Less Than Significant. Transportation and Traffic Impact 3.5-3: Result in inadequate emergency access. During construction, emergency access could be impaired. Mitigation Measure TRAF-1 requires preparation and implementation of a Construction Traffic Management Plan to demonstrate that access along Page Mill Road would not be impaired during construction. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measure identified above and included in the MMP will ensure that the impacts related to traffic and inadequate emergency access during construction would be reduced to a less-than-significant level. Explanation: This mitigation measure will ensure that a Construction Traffic Management Plan is in place to address possible traffic issues and reduce the potential for inadequate emergency access to a less than significant level. Significance After Mitigation: Less Than Significant. Impact 3.5-9: Cause queuing that exceeds queue storage capacity and interferes with traffic operations. The project could increase the number of vehicles needing to make left turns at the project access intersection. Mitigation Measure TRAF-2 requires the project applicant to construct the improvements necessary to accommodate the increased turn-lane traffic volumes while Mitigation Measure TRAF-3 requires the project applicant to contribute a fair share amount towards modification of the signal phasing for the Page Mill Road and Hanover Street intersection. Finding: Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the EIR. Implementation of the mitigation measure identified above and included in the MMP will ensure that the impacts related to queuing and interference with traffic operations during construction would be reduced to a less-than-significant level. Explanation: These mitigation measures will ensure that funds are allocated, and necessary road improvements are made to prevent queuing that interferes with traffic operations during construction. Significance After Mitigation: Less than Significant. 1050 Page Mill Road Statement of Findings and Overriding Considerations 12 September 2015 Significant and Unavoidable Impacts The City Council agrees with the characterization in the Final EIR that there are no significant and unavoidable impacts of the proposed project. IX. PROJECT ALTERNATIVES FINDINGS Feasibility of Project Alternatives Public Resources Code section 21002 provides that “public agencies should not approve projects as proposed if there are feasible alternatives or feasible mitigation measures available which would substantially lessen the significant environmental effects of such project[s].” When a lead agency finds, even after the adoption of all feasible mitigation measures, that a project will still cause one or more significant environmental effects that cannot be substantially lessened or avoided, it must, prior to approving the project as mitigated, first determine whether there are any project alternatives that are feasible and that would substantially lessen or avoid the project’s significant impacts. As stated in Section VIII above, there are no significant and unavoidable impacts associated with the proposed project. However, an alternatives analysis was completed and included in the Final EIR. Although an EIR must evaluate a range of potentially feasible alternatives, an agency decision- making body may ultimately conclude that a potentially feasible alternative is actually infeasible. (California Native Plant Society v. City of Santa Cruz (2009) 177 Cal.App.4th 957, 1001- 1002.) CEQA Guidelines §15126.6(f)(1) provides that among the factors that may be taken into account when addressing the feasibility of alternatives are “site suitability, economic viability, availability of infrastructure, general plan consistency, other plans or regulatory limitations, jurisdictional boundaries, and whether the proponent can reasonably acquire, control or otherwise have access to the alternative site.” Grounds for a conclusion of infeasibility might be the failure of an alternative to fully satisfy project objectives deemed to be important by decision-makers, or the fact that an alternative fails to promote policy objectives of concern to such decision-makers. (Id. at pp. 992, 1000-1003.) It is well established under CEQA that an agency may reject alternatives based on economic infeasibility. (Foundation for San Francisco’s Architectural Heritage v. City and County of San Francisco (1980) 106 Cal.App.3d 893, 913-914; San Franciscans Upholding the Downtown Plan v. City and County of San Francisco (2002) 102 Cal.App.4th 656, 774; Association of Irritated Residents v. County of Madera (2003) 107 Cal.App.4th 1383, 1399-1400; Sierra Club v. County of Napa (2004) 121 Cal.App.4th 1490, 1510.) In addition, the definition of feasibility encompasses “desirability” to the extent that an agency’s determination of infeasibility represents a reasonable balancing of competing economic, environmental, social, and technological factors supported by substantial evidence. (City of Del Mar v. City of San Diego (1982) 133 Cal.App.3d 410; 417.) Thus, even if a project alternative will avoid or substantially lessen any of the significant environmental effects of a proposed project as mitigated, the decision-makers may reject the alternative for such reasons. CEQA Guidelines §15126.6(f) states that the range of alternatives required in an EIR is governed by a “rule of reason” that requires the EIR to set forth only those alternatives necessary to permit a reasoned choice. Further, CEQA Guidelines §15126(a) requires that an EIR describe a 1050 Page Mill Road Statement of Findings and Overriding Considerations 13 September 2015 reasonable range of alternatives that would “feasibly obtain most of the basic project objectives” but would avoid or substantially lessen any of the significant environmental effects of the project and evaluate the comparative merits of the alternatives. Thus, the project objectives presented in the EIR provided the framework for defining the possible alternatives. Based upon guidance contained in the CEQA Guidelines and applicable case law as well as the project objectives, the Draft EIR considered one project alternative to the 1050 Page Mill Road project: the Reduced Project Alternative. The Draft EIR also considered the no project alternative as required by CEQA. The City Council finds that that a good-faith effort was made to evaluate a reasonable range of potentially feasible alternatives in the EIR that are reasonable alternatives to the project and could feasibly obtain most of the basic objectives of the project, even when the alternatives might impede the attainment of the project’s objectives and might be more costly. No Project Alternative The No Project Alternative assumes that the proposed 1050 Page Mill Road project would not be constructed and that the existing four buildings that total 265,895 square feet of general office and research and development space and surface parking for 564 cars would remain. No demolition would occur, and there would be no change in use or increase in office space. The EIR concluded that this alternative would have reduced impacts on air quality, biological resources, hazards and hazardous materials, and transportation and traffic. The No Project Alternative would not meet any of the proposed project objectives, and the existing buildings would not meet current standards for design, accessibility, hazardous materials, or seismic safety. Feasibility of the No Project Alternative: The City Council finds that this alternative is infeasible in that it meets none of the project objectives. Specifically, it does not support the project objectives of creating a modern, LEED-certified and efficient campus that will support research, development and innovation in Stanford Research Park, using architecture to create a varied and interesting Page Mill Road streetscape, or meeting current building standards. For all of the foregoing reasons, and for any of them individually, the City Council determines that the No Project Alternative is infeasible and is hereby rejected. Reduced Project Alternative The Reduced Project Alternative assumes that the project site will be redeveloped similar to the proposed project. However, the new building space on site would be limited to 225,000 square feet rather than the proposed 276,640 square feet. Parking would be slightly reduced, consistent with the City of Palo Alto Municipal Code parking requirements. This alternative would most likely result in a greater amount of landscaped area within in the project site. This alternative was considered and analyzed as an alternative that would meet the stated objectives of current standards for design, accessibility, hazardous materials, and seismic safety, and including outdoor gathering space. The EIR concluded that the Reduced Project Alternative meets most of the project objectives by redeveloping the site with a smaller square foot building that meets current standards and increasing the outdoor gathering spaces and connections between the interior and exterior 1050 Page Mill Road Statement of Findings and Overriding Considerations 14 September 2015 spaces. This alternative would also meet the objectives related to creating a modern, LEED- certified, efficient campus that would support research, development and innovation at Stanford Research Park and using architecture to create a varied and interesting Page Mill Road streetscape. Under the Reduced Project Alternative, the impacts to biological resources, hazards and hazardous materials and noise would be generally the same as under the proposed project. Impacts to air quality, and transportation and traffic would generally be reduced compared to the proposed project. Feasibility of the Reduced Project Alternative: While the alternative may be feasible and capable of meeting most of the basic project objectives, this alternative does not substantially reduce impacts compared to the proposed project. The Reduced Project Alternative would require the same mitigation measures for air quality, biological resources, hazards and hazardous materials, and noise as would be required under the proposed project. Further the proposed project would result in no significant and unavoidable impacts Therefore, under CEQA, the City Council is not required to adopt the Reduced Project Alternative. X. GROWTH INDUCEMENT FINDINGS Growth can be induced in a number of ways, such as through the elimination of obstacles to growth, through the stimulation of economic activity within the region, or through the establishment of policies or other precedents that directly or indirectly encourage additional growth. Induced growth would be considered a significant impact if it can be demonstrated that the potential growth would directly or indirectly have a significant effect on the environment. Residential development can induce growth by increasing the local population, which may lead to increased commercial activity, which may increase the local supply of jobs. Extension of public infrastructure or services can accommodate growth by removing constraints to development. A growth-inducing project directly or indirectly:  Fosters economic or population growth or additional housing;  Removes obstacles to growth;  Taxes community services or facilities to such an extent that new services or facilities would be necessary; or  Encourages or facilitates other activities that cause significant environmental effects. The 1050 Page Mill Road project would provide additional office space in the City by increasing the usable office space by approximately 99,120 square feet. This increase in office space would accommodate additional employees and could indirectly induce a small amount of growth because some employees would seek housing and purchase foods and services in the area. Finding: The 1050 Page Mill Road project would not induce substantial growth in the project area or region. 1050 Page Mill Road Statement of Findings and Overriding Considerations 15 September 2015 Explanation: The potential for growth inducement due to the increase in office space is not considered substantial. The increase in employment opportunities the project would provide would be insufficient to trigger noticeable changes in the housing market or demand for local goods and services. In addition, construction of the proposed project would be temporary and these short-term construction jobs are anticipated to be filled by workers who, for the most part, reside in the surrounding areas. XI. CUMULATIVE IMPACTS FINDINGS The City Council finds that the methodology used in the EIR to determine cumulative impacts complies with CEQA in that it assumed growth in accordance with the City of Palo Alto Comprehensive Plan as well as considering other known development projects in the region, and it provides an analysis of potential for the 1050 Page Mill Road project to contribute to cumulative impacts in the project area. Finding: The City Council finds that the project would result in a less than considerable contribution to significant cumulative impacts in the project area. Air Quality: Cumulative impacts to air quality may result in increases in pollutants for which the San Francisco Area Air Basin is designated as nonattainment for the California Ambient Air Quality Standards and National Ambient Air Quality Standards. The San Francisco Bay Area Basin is currently designated as a nonattainment area for State and national ozone standards and State particulate matter standards. The proposed project is consistent with the Bay Area 2010 Clean Air Plan, and land use and zoning designations for the project site. The proposed project would demolish existing office, research and development, and warehouse space and construct an equivalent amount of office space. The proposed project would generate an increase of 663 daily vehicle trips compared to baseline conditions. Further, the proposed project would replace old buildings with new, energy-efficient buildings and would provide for on-site solar power generation through roof-top photovoltaic panels. The proposed project would reduce regional air pollution associated with energy consumption. The operation of the proposed project would not result in emissions that violate any applicable air quality standards or contribute substantially to an existing or projected air quality violation. Due to the limited scope of new air pollutant emissions resulting from the proposed redevelopment project, the proposed project would result in a less-than-significant contribution to cumulative air quality impacts in the region. Biological Resources: Cumulative impacts to biological resources would occur if development in the region would result in a substantial loss of habitat for special- status species and sensitive vegetation communities. The project site is located within a highly developed area where the primary biological resource is the urban forest. The urban forest functions as an extension of the natural habitats near the San Francisco Bay and in the western foothills by providing coverage, forage, and nesting habitat for common and special-status wildlife species. The proposed project would result in potentially significant impacts to nesting birds, including raptors, and roosting bats. Under the City’s Tree Preservation Ordinance (Palo Alto 1050 Page Mill Road Statement of Findings and Overriding Considerations 16 September 2015 Municipal Code, Section 8.10; City of Palo Alto 2015), the City has established procedures and standards to encourage tree preservation. Project applicants are required to prepare a Tree Protection and Preservation Plan, to implement tree protection measures during construction, and to replace or compensate for any protected trees that are removed. Compliance with the Tree Preservation Ordinance ensures that the habitat value of the urban forest will be maintained in the cumulative conditions, and that cumulative impacts to special-status species and sensitive vegetation communities related to development within the urban forest will remain less than significant. Hazards and Hazardous Materials: Cumulative impacts related to hazards and hazardous materials would result from projects that combine to increase exposure to hazards and hazardous materials. The proposed project would result in significant impacts related to the potential for disposal and accidental release of hazardous materials during construction. In addition, the proposed project could result in a significant impact during operation due to the potential for vapor intrusion into the underground parking garages from contaminated groundwater below the site. With implementation of Mitigation Measures HAZ-1 through HAZ-7, impacts would be reduced to below a level of significance. Many of the past, present, and reasonably foreseeable projects in the vicinity of the proposed project include demolition of existing buildings and/or constructing of underground parking within or near the contaminated groundwater plume that underlies the project site. These projects have the potential to result in similar impacts as the proposed project due to the presence of contaminated groundwater and hazardous materials in existing buildings that could be released during demolition or remodeling, and the potential for an accidental release of hazardous materials. However, these projects would also be required to comply with the applicable state and federal regulations pertaining to hazardous materials and would be required to implement mitigation measures to ensure impacts remain below a level of significance. Impacts related to the presence of contaminated groundwater are generally site-specific in that there is potential for individuals to be exposed to trichloroethylene (TCE) or polychlorinated biphenyls (PCBs) through migration of vapor from the groundwater into a building. Any TCE released to the outside air would disperse quickly. Therefore, building construction in the cumulative scenario would not contribute to a local or regional increase in health hazards associated with exposure to TCE. Similarly, exposure to hazardous building materials during demolition or remodeling is a site-specific issue, where individuals within or adjacent to the project site could be exposed to air contaminants released through the demolition activities, but these activities would not contribute to ongoing localized or regional increases in concentrations or airborne hazardous materials. Finally, based on existing general plan and zoning designations, the project location is not designated by the City as land uses that use or transport substantial amounts of hazards material and would not increase exposure to hazardous materials in the project vicinity. Therefore, there is no known existing cumulative impact related to hazardous materials in the project area, and the proposed project would not result in a cumulatively considerable contribution to a cumulative impact. 1050 Page Mill Road Statement of Findings and Overriding Considerations 17 September 2015 Noise: Cumulative noise impacts are based on the anticipated cumulative traffic conditions. The cumulative traffic analysis identifies projected traffic volume data in the project vicinity with and without the proposed project for the 2025 cumulative scenario. The analysis assumes that the existing buildings at the project site would be reoccupied if the proposed project is not constructed. The relatively high traffic volumes on the surrounding roads are the primary sources of noise in the area. The Traffic Impact Analysis prepared by Hexagon Transportation Consultants indicates that the traffic volume associated with the proposed project is not expected to increase substantially over cumulative conditions without the proposed project. Therefore, the proposed project would not constitute a substantial portion of future cumulative traffic volume, and therefore noise levels, at noise sensitive receptors in the vicinity. The proposed project’s contribution to cumulative noise levels would be less than cumulatively considerable. Transportation and Traffic: The proposed project would result in a significant impact related to increased vehicle queue lengths, and this impact would be mitigated to a less-than-significant level. When combined with other past, present, or reasonably foreseeable projects, there is a potential for a substantial increase in traffic in the vicinity of the proposed project, which could cause a significant impact to traffic operations. Because the increases in delay at each intersection due to the proposed project would be less than the City’s thresholds in terms of seconds of delay and V/C ratio, the proposed project’s contribution to traffic at these intersections would be less than cumulatively considerable. Under cumulative conditions, both the eastbound lane of the project driveway and Page Mill Road intersection and the westbound lane of the Hanover Street and Page Mill Road intersection would exceed their storage capacity during the weekday AM peak- hours. As a result of the improvements required under Mitigation Measure TRAF-2, under cumulative plus project conditions, there would be sufficient storage capacity in the eastbound lane of the project driveway and Page Mill Road intersection to accommodate the 95th percentile queue in both the weekday AM and PM peak- hours. However, the 95th percentile queue in the westbound lane of the Hanover Street and Page Mill Road intersection would exceed the lane’s capacity under cumulative and cumulative plus project conditions. This would be a significant cumulative impact. However, traffic associated with the proposed project would not increase the queue length at the intersection of Hanover Street and Page Mill Road. Therefore, the proposed project would not contribute to this cumulative impact, and therefore the proposed project would have no cumulative impacts related to vehicle queueing. Explanation: The potential impacts of project activities are limited to site specific conditions and would not result in any cumulatively considerable contributions to cumulative impacts in the project vicinity or region. Significance After Mitigation: Less than Significant. 1050 Page Mill Road Statement of Findings and Overriding Considerations 18 September 2015 XII. STATEMENT OF OVERRIDING CONSIDERATIONS The 1050 Page Mill Road EIR concluded that there are no significant and unavoidable impacts of the proposed project. XIII. CONCLUSION The mitigation measures listed in conjunction with each of the findings set forth above, as implemented through the MMP, will eliminate or reduce to a less than significant level all adverse environmental impacts of the proposed project. Taken together, the Final EIR, the mitigation measures, and the MMP provide an adequate basis for approval of the 1050 Page Mill Road project. Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Introduction Section 15097 of the Guidelines for the California Environmental Quality Act (CEQA) requires that, whenever a public agency approves a project based on a Mitigated Negative Declaration (MND) or an Environmental Impact Report (EIR), the public agency shall establish a mitigation monitoring or reporting program to ensure that all adopted mitigation measures are implemented. This Mitigation Monitoring Program (MMP) is intended to satisfy this requirement of the CEQA Guidelines as it relates to the 1050 Page Mill Road Project (proposed project). This MMP will be used by City of Palo Alto (City) staff and mitigation monitoring personnel to ensure compliance with mitigation measures during project implementation. Mitigation measures identified in this MMP were developed in the EIR prepared for the proposed project. As noted above, the intent of the MMP is to ensure the effective implementation and enforcement of all adopted mitigation measures. The MMP will provide for monitoring of construction activities, as necessary, and in the field identification and resolution of environmental concerns. Mitigation Monitoring Program Description The City will coordinate monitoring activities and document the implementation of mitigation measures for each project component. The site-specific MMPs in Table 1 identify the project’s mitigation measures and the associated implementation, monitoring, timing and performance requirements. The table includes: 1. the full text of each applicable mitigation measure; 2. the party or parties responsible for implementation and monitoring of each measure; 3. the timing of implementation of each mitigation measure including any ongoing monitoring requirements; and 4. performance criteria by which to ensure mitigation requirements have been met. Following completion of the monitoring and reporting process, the final monitoring results will be recorded and incorporated into the project file maintained by the City’s Department of Planning and Community Environment. It is noted that mitigation measure numbering reflects the numbering used in the EIR prepared for the 1050 Page Mill Road project (Dudek 2015). Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 No mitigation measures are required for the following resources:  Aesthetics  Agriculture and Forestry Resources  Cultural Resources  Geology/Soils  Greenhouse Gas Emissions  Hydrology/Water Quality  Land Use/Planning  Mineral Resources  Population/Housing  Public Services  Recreation  Utilities/Service Systems Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria AIR QUALITY Mitigation Measure AIR-1: The following emission control measures shall be implemented during project construction. The City of Palo Alto (City) shall verify compliance with Items 1 and 9 prior to issuance of demolition, grading, and/or building permits. Items 2 through 8 (inclusive) shall be included as notes on construction plans and subject to verification through field inspections: 1. An inventory of construction equipment and schedule for equipment use shall be submitted to the City’s Public Works Department before issuance of demolition and/or grading permits. The inventory shall demonstrate that the off-road vehicle fleet used for project construction meets the following requirements: a. Through construction phasing and equipment scheduling, the project contractor shall limit equipment operation to a maximum of 6 hours per Applicant City of Palo Alto  Items 1 and 9 prior to issuance of demolition, grading or building permits.  For phone calls regarding dust, response and corrective action shall take place within 48 hours.  Items 2-8 (inclusive) included on construction plans, field inspections for verification may occur  Submission of construction equipment inventory and schedule to the City’s Public Works Department.  Publically visible sign posted at the project site.  Field inspections conducted to verify adherence to conditions. Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria day for each piece of active equipment. b. All rubber-tired dozers, tractors, loaders, and backhoes used at the site shall be Tier 3 engineers and shall have Level 3 Diesel Particulate Filters. c. All excavators and concrete/industrial saws used at the site shall be Tier 2 engines and shall have Level 3 Diesel Particulate Filters. 2. All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered two times per day. 3. All haul trucks transporting soil, sand, or other loose material off site shall be covered. 4. All visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited. 5. All vehicle speeds on unpaved roads shall be limited to 15 miles per hour. 6. All roadways, driveways, and sidewalks to be paved shall be completed as soon as possible. Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. 7. Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to 5 minutes (as required by the California airborne toxics control measure Title 13, Section 2485, of the California Code of Regulations). Clear signage shall be provided for construction workers at all access points. 8. All construction equipment shall be maintained and properly tuned in accordance with manufacturer’s at random. Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria specifications. All equipment shall be checked by a certified mechanic and determined to be running in proper condition before operation. 9. The construction contractor shall post a publicly visible sign at the project site with the telephone number and person to contact at the City of Palo Alto regarding dust complaints. This person shall respond and take corrective action within 48 hours. The Bay Area Air Quality Management District’s phone number shall also be visible to ensure compliance with applicable regulations. BIOLOGICAL RESOURCES Mitigation Measure BIO-1: If feasible, vegetation on the project site shall be removed outside of the bird-nesting season. If the start of site clearing, tree removal, or building demolition occurs between February 1 and August 31, a pre-construction survey for nesting birds protected under the Migratory Bird Treaty Act shall be conducted by a qualified biologist to identify the location of nests in active use that were established prior to the start of project implementation activities. The pre-construction survey shall take place no more than 7 days prior to initiation of construction. All trees and shrubs on the site shall be surveyed, with particular attention to any trees or shrubs that would be removed or directly disturbed. Further, the project applicant shall retain a qualified biologist to perform additional nesting bird surveys at least every 2 weeks during all phases of construction that occur during the nesting season. If an active nest of a protected bird is found on site at any time, the biologist shall, in consultation with the California Department of Fish and Wildlife (CDFW), determine whether construction work would affect the active nest or disrupt reproductive behavior. Criteria used for this evaluation shall include presence of visual screening between the nest and construction activities, and behavior of adult raptors in response to the surveyors or other ambient human activity. If construction could affect the nest or disrupt Applicant City of Palo Alto  Within 7 days of construction initiation if construction occurs between February 1 and August 31.  Verification of surveys prior to issuance of demolition permits.  Additional surveys performed every 2 weeks during construction that occurs during the nesting season.  Immediate consultation with California Department of Fish and Wildlife if active nests are found.  Pre-construction surveys and verification of surveys by the City of Palo Alto.  Additional surveys conducted every 2 weeks.  No construction within 300 feet of nests determined to be active.  Verification of consultation with CDFW if necessary. Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria reproductive behavior, the biologist shall, in consultation with CDFW, determine an appropriate construction-free buffer zone around the nest to remain in place until the young have fledged or other appropriate protective measures are taken to ensure no take of protected species occurs. If it is determined that construction will affect an active raptor nest or disrupt reproductive behavior, then avoidance is the only mitigation available. Construction shall not be permitted within 300 feet of such a nest until a qualified biologist determines that the subject nests are no longer active. Prior to issuance of a demolition permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 7 days of the proposed start of demolition. If active bird nests are present, the City shall verify that CDFW has been consulted and either determined that construction will not affect an active bird nest or that appropriate construction-free buffer zones have been established or other appropriate protective measures have been taken. Mitigation Measure BIO-2: No earlier than 30 days prior to initiation of construction activities, a pre-construction survey shall be conducted by a qualified biologist (i.e., a biologist holding a California Department of Fish and Wildlife (CDFW) collection permit and a Memorandum of Understanding with CDFW allowing the biologist to handle bats) to determine if active bat roosts or maternal colonies are present on or within 300 feet of the construction area. Surveys shall include the structures proposed for demolition. Should an active maternity roost be identified, the roost shall not be disturbed and construction within 300 feet of the maternity roost shall be postponed or halted until the juveniles have fledged and the roost is vacated, as determined by a qualified biologist. Consultation with CDFW shall also be initiated. Under no circumstance shall an active roost be directly disturbed. If nonbreeding bat hibernacula are found on the project site, the Applicant City of Palo Alto  Within 30 days of initiation of construction activities.  Verification of pre- construction surveys prior to issuance of demolition permits.  Pre-construction surveys and verification of surveys by the City of Palo Alto.  No construction within 300 feet of nests determined to be active.  Verification of consultation with CDFW if necessary. Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria individuals shall be safely evicted under the direction of a qualified bat biologist and with consultation with CDFW. These actions shall allow bats to leave during nighttime hours, thus increasing their chance of finding new roosts with a minimum of potential predation during daylight. If it is determined that construction will not affect roosting behavior or disrupt a maternal colony, construction may proceed without any restriction or mitigation measure. If it is determined that construction will affect an active bat roost or disrupt reproductive behavior, then avoidance is the only mitigation available. Under no circumstance shall an active roost be directly disturbed. Construction within 300 feet shall be postponed or halted until the roost is naturally vacated as determined by a qualified biologist. Prior to issuance of a demolition permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 30 days of the proposed start of demolition. If bats are present, the City shall verify that CDFW has been consulted and either determined that construction will not affect an active bat roost or disrupt a maternal colony, or that individuals in a nonbreeding bat hibernacula have been safely evicted. Due to regulations from the California Health Department, direct contact by construction workers with any bat is not allowed. CULTURAL RESOURCES Mitigation Measure CUL-1: In the event that subsurface cultural resources are encountered during ground-disturbing activities, work in the immediate vicinity shall be stopped and the City of Palo Alto contacted. A qualified archaeologist, as defined by the California Environmental Quality Act (CEQA) Guidelines and the City of Palo Alto, shall be retained to evaluate the archaeological discovery for its eligibility for local and State listing. The discovery or disturbance of Applicant City of Palo Alto  During ground disturbing activities  Cultural resource report shall be submitted to the City of Palo Alto and the Native American Heritage Commission when Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria any identified cultural resource shall be reported as appropriate to the City of Palo Alto and the Native American Heritage Commission. Identified cultural resources shall be recorded on California Department of Parks and Recreation form 523 (archaeological sites). Measures prescribed by these groups and required by the City shall be undertaken before construction activities are resumed. If disturbance of a project area cultural resource cannot be avoided, a mitigation program, including measures set forth in the City of Palo Alto’s Cultural Resources Management Program and in compliance with Sections 15064.5 and 15126.4 of the CEQA Guidelines, shall be implemented. appropriate.  Completion of California Department of Parks and Recreation form 523 when appropriate. HAZARDS AND HAZARDOUS MATERIALS Mitigation Measure HAZ-1: Hazardous materials shall not be disposed of or released onto the ground, the underlying groundwater, or any surface water. During construction, the project applicant’s contractor shall provide totally enclosed containment areas for all on- site trash containers during project construction. All construction waste, including trash and litter, garbage, other solid waste, petroleum products, and other potentially hazardous materials, shall be removed and relocated to a waste facility permitted to treat, store, or dispose of such materials. The City of Palo Alto shall periodically inspect the site throughout construction to ensure trash is properly contained. Applicant City of Palo Alto  During project construction  Applicant provides enclosed containment areas for all on-site trash containers, and all construction wastes disposed of at a waste facility approved to accept such materials.  Periodic field inspections conducted to verify compliance. Mitigation Measure HAZ-2: The project applicant, in consultation with the City of Palo Alto’s (City’s) Public Works Department, shall coordinate with Hargis + Associates Inc. and Beckman Coulter Inc. to amend the Soil Management Plan to address the presence of volatile organic compounds (VOCs) and total petroleum hydrocarbon (TPH ) contamination in the soils once these areas become accessible. The project applicant/construction contractor shall demonstrate to the Applicant  City of Palo Alto Public Works Department  San Francisco Regional Water Quality Control Board (RWQCB)  During construction activities, as soil areas become accessible.  Demonstrate adequate soil remediation to City of Palo Alto’s Public Works Department and the RWQCB.  Applicant maintains Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria satisfaction of the City’s Public Works Department and the Regional Water Quality Control Board that the soils have been adequately remediated. Copies of the Soil Management Plan shall be maintained on site during demolition and excavation. All construction workers on the project site shall be familiarized with these documents. copies of the Soil Management Plan on-site during demolition and excavation. Mitigation Measure HAZ-3: A scope of work for asbestos abatement and guidelines for proper asbestos removal shall be prepared following local, state, and federal regulations for any necessary removal of asbestos in accordance with the Professional Services Industries survey (2009). The City of Palo Alto’s (City’s) Public Works Department and the Bay Area Air Quality Management District shall review and approve the scope of work to remove asbestos. The Bay Area Air Quality Management District shall be notified at least 10 working days prior to any asbestos removal. The City of Palo Alto shall periodically inspect the site throughout asbestos removal operations to ensure regulatory compliance. The removal of asbestos- containing material shall be carried out by a contractor trained and qualified to conduct this work. Following asbestos abatement and removal, a final visual inspection and clearance air monitoring shall be performed to certify that industry clearance standards are met. Verification that all asbestos has been successfully remediated shall be provided to the City’s Public Works Department and the Bay Area Air Quality Management District. Applicant  City of Palo Alto Public Works Department  BAAQMD  Asbestos abatement scope of work prepared prior to building demolition.  City of Palo Alto to conduct field inspections during construction.  Air monitoring conducted throughout and upon completion of construction.  BAAQMD notified at least 10 working days prior to any asbestos removal.  Air monitoring during abatement and at time of final inspection show regulatory limits on asbestos dust are met.  Final visual inspection confirms work meets industry clearance standards.  Verification by City’s Public Works Department and the BAAQMD that all asbestos has been successfully remediated. Mitigation Measure HAZ-4: The project applicant shall include a provision in any contract with a construction contractor that every contractor/employer who performs demolition work at the project site shall comply with the California Division of Occupational Safety and Applicant City of Palo Alto Public Works Department  Demolition plans and contract specifications shall include appropriate measures  Demolition plans/contracts include all required abatement Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria Health worker protection rules, California Department of Public Health certification requirements, U.S. Environmental Protection Agency (EPA) standards, and state and federal disposal requirements. Any demolition activities likely to disturb lead-based paint/coatings or lead- containing materials (LCMs) shall be carried out by a contractor trained and qualified to conduct lead-related construction work. Asbestos-containing materials (ACMs) must be disposed of in accordance with the EPA’s Asbestos National Emissions Standards for Hazardous Air Pollutants, and LCMs must be handled in accordance with the California Division of Occupational Safety and Health Construction Lead Standard (8 CCR 1532.1) and disposed of in accordance with California Department of Toxic Substances Control and EPA requirements for hazardous waste. Demolition plans and contract specifications shall incorporate any necessary abatement measures required under these guidelines and regulations. The project applicant/construction contractor shall demonstrate to the satisfaction of the City’s Public Works Department that the abatement measures and all disposal requirements have been met. prior to issuance of demolition permits.  Control measures implemented during demolition. measures.  Demolition activities are performed by qualified and trained personnel.  LCMs and ACMs disposed of in accordance with the EPA’s Asbestos National Emissions Standards for Hazardous Air Pollutants, the California Division of Occupational Safety and Health Construction Lead Standard (8 CCR 1532.1), the California Department of Toxic Substances Control and EPA requirements for hazardous waste.  Approval from Public Works Department that abatement measures and disposal requirements have been met. Mitigation Measure HAZ-5: The project applicant/construction contractor shall retain a qualified environmental specialist to inspect the site buildings for the presence of polychlorinated biphenyls Applicant City of Palo Alto Public Works Department  Building inspection prior to demolition.  Demolition plans  Building inspection completed.  Demolition plans and Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria (PCBs), mercury, and other hazardous building materials prior to demolition. If found, these materials shall be managed in accordance with the Metallic Discards Act of 1991 and other state and federal guidelines and regulations. Demolition plans and contract specifications shall incorporate any necessary abatement measures in compliance with the Metallic Discards Act (California Public Resource, Section 42160 et seq.), particularly Section 42175, Materials Requiring Special Handling, for the removal of mercury switches, PCB-containing ballasts, and refrigerants. The project applicant/construction contractor shall demonstrate to the satisfaction of the City’s Public Works Department that the abatement measures and all disposal requirements have been met. include appropriate measures prior to issuance of demolition permits.  Control measures implemented during demolition. contract specifications shall incorporate all required abatement measures in compliance with the Metallic Discards Act (California Public Resource, Section 42160 et seq.).  Approval from Public Works Department that the abatement measures and all disposal requirements have been met. Mitigation Measure HAZ-6: The project applicant/construction contractor shall prepare a dewatering plan and detailed groundwater extraction design plans to the satisfaction of the City of Palo Alto’s (City’s) Public Works Department. The dewatering plan shall outline procedures designed to lower groundwater levels during excavation, and specify the number of groundwater dewatering wells with dedicated pumps that shall be installed around the site perimeter throughout project duration. The project applicant/contractor shall test the groundwater pumped during dewatering for volatile organic compounds (VOCs) using U.S. Environmental Protection Agency (EPA) Methods 601/602. If VOC concentrations are lower than the State Maximum Contamination Level of 5 micrograms per liter, the water may be discharged as described in the following text. If concentrations exceed 5 micrograms per liter, the water shall be treated with carbon to remove the trace levels of trichloroethylene prior to discharge. Any discharge shall occur in accordance with National Pollutant Discharge Elimination System (NPDES) Permit No. CAG912002, Order No. R2-2012-0012. Applicant City of Palo Alto Public Works Department  Dewatering plan prepared prior to site clearing/grading.  Dewatering plan implemented throughout construction.  A dewatering plan prepared and submitted to the City.  Plans shall include procedures to lower groundwater levels during excavation and specifies the number of groundwater dewatering wells with dedicated pumps that will be installed around the site perimeter.  Groundwater pumped shall be tested for volatile Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria If volatile organic compound concentrations are lower than the State Maximum Contamination Level, extracted groundwater shall go to a publically owned treatment work or to the storm drain network in accordance with the NPDES permit. A plan for groundwater discharge pretreatment shall be developed and kept on hand should implementation be necessary. The detailed groundwater extraction design shall outline chemical testing and thresholds as required by the publically owned treatment work or NPDES permit. It shall also provide the dewatering systems layout and well construction information, including depths, screened intervals, and pump settings. The City’s Public Works Department shall periodically inspect the site to ensure dewatering activities comply with the dewatering plan and no contaminated water is disposed of in the City’s storm drain system. organic compounds using EPA methods 601/602.  Any discharge shall be in compliance with NPDES Permit No. CAG912002, Order No. R2-2012- 0012.  Excavated groundwater shall be pre-treated as necessary and disposed of via the City’s storm drain network or publically owned treatment works.  Groundwater pretreatment plan developed and kept on hand.  Inspections by the Public Works Department to ensure compliance with dewatering plan. Mitigation Measure HAZ-7: The project applicant shall include in building plans the installation of a Cetco Coreflex or similar waterproofing/vapor barrier membrane to prevent the migration of vapor from groundwater into the indoor air of the basement parking garage. Specifically, the building plans shall provide for the following 1. Installation of a vapor barrier and waterproofing membrane below the building foundation Applicant City of Palo Alto Public Works Department  Building plans include required measures prior to issuance of building permit.  Compliance with building plans verified and air monitoring conducted prior to  Vapor barrier and waterproofing membrane included on building plans and installed.  Geotextile fabric on the backfill included on building plans Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria 2. Placement of a geotextile fabric on the backfill to protect the barriers from backfill puncture 3. Sealing of slab penetrations with a water-tight sealant 4. Testing of the installation of the barriers in the field 5. Submitting of post-construction, as-built drawings of the vapor barrier with the following: a. A stamp and a signature of a professional engineer b. A written professional engineer statement that assures the barrier was properly installed The building plans shall also demonstrate that garage ventilation equipment is sufficient to meet the National Fire Protection Association’s (NFPA’s) 2011 Standard for Parking Structures (NFPA 88A) to continuously provide a minimum of two air changes per hour. The project applicant shall demonstrate to the City of Palo Alto’s (City’s) Public Works Department that indoor air quality in the basement garage effectively maintains indoor air volatile organic compound (VOC) concentrations at levels not harmful to health (i.e., below appropriate environmental screen levels). An initial round of sampling shall be conducted upon construction completion and quarterly for the first year of operation. For each sampling event, a minimum of two 24-hour integrated indoor air samples shall be collected from the basement garage along with one 24-hour integrated air sample from an exterior location representative of issuance of certificate of occupancy.  Air monitoring conducted quarterly for one year following construction. and installed.  Slab penetrations sealed with water- tight sealant included on building plans and completed.  Field barrier testing included on building plans and completed.  Post-construction as built drawings of the vapor barrier submitted to the City.  Garage ventilation sufficient to continuously provide a minimum of two air charges per hour included on building plans and installed.  Air quality from basement garage sampled quarterly for the first year after construction.  Sampling shall include a minimum of two 24-hour integrated samples from basement garage along with one 24-hour integrated sample from an exterior Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria ambient/background conditions. Sampling and analytical procedures shall be conducted in accordance with the Department of Toxic Substance Control’s Vapor Intrusion Guidance (DTSC 2011). Results from the indoor air sampling shall be compared to established regulatory indoor air thresholds for residential and commercial use. The data shall be provided to the City’s Public Works Department and evaluated following the 1-year monitoring period. location representative of background conditions and be conducted according to the Department of Toxic Substance Control’s Vapor Intrusion Guidelines.  Data from sampling shall be provided to the Public Works Department and evaluated following the one year monitoring period. NOISE Mitigation Measure NOI-1: The project shall be designed to meet the following performance standards: The window Sound Transmission Class (STC) ratings and the exterior wall construction shall be designed to ensure that noise levels meet the California Green Building Standards Code requirement of Leq-1- hour 50 dBA or less, and documentation that project design meets this requirement shall be provided to the City of Palo Alto (City). STC ratings for selected assemblies shall be based on laboratory testing performed in accordance with American Society for Testing and Materials (ASTM) E-90 and comprise the entire window or door assembly, including the frame. If non-tested assemblies are to be used, an acoustical consultant shall review the glazing and frame submittals, and the STC rating of the glass may need to be increased. Applicant City of Palo Alto  Prior to issuance of building permit.  Approved building plans shall include window sound transmission class ratings and exterior wall construction that meet the California Green Building Standard Code requirements.  Documentation provided to the City showing that the project design meets requirements of the California Green Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria Building Code. Mitigation Measure NOI-2: Rooftop mechanical equipment shall generate a maximum noise level of 88 dBA measured at a distance of 5 feet from the equipment. Alternatively, the project applicant may retain an acoustical consultant to review mechanical noise as building design is refined to demonstrate that the noise generated by the selected rooftop mechanical equipment does not exceed 55 dBA at the property line. This acoustical analysis would be reviewed and approved by the City of Palo Alto (City) prior to issuance of any building permits. Applicant City of Palo Alto  Prior to issuance of building permits.  Noise generated by rooftop mechanical equipment shall not exceed requirements when measured.  Acoustical consultant shall demonstrate that rooftop mechanical equipment does not exceed requirements.  Review and approval of the acoustical analysis by the City. TRANSPORTATION AND TRAFFIC Mitigation Measure TRAF-1: Prior to issuance of demolition, grading, or building permits for the proposed project, the project developer shall prepare a Construction Traffic Management Plan that shall be subject to approval by the City of Palo Alto’s (City’s) Transportation Division. The goal of the Construction Traffic Management Plan will be to minimize traffic impacts to public streets and maintain a high level of safety for all roadway users. The plan will include the number and size of trucks per day, expected arrival/departure times, truck circulation patterns, location of truck staging areas, employee parking, and the proposed use of traffic control/partial street closures on public streets. The Construction Traffic Management Plan shall provide for attainment of the following performance standards, and the City’s Transportation Division staff shall conduct periodic monitoring during construction to ensure that these standards are met throughout project construction: Applicant City of Palo Alto Transportation Division  Prior to issuance of demolition, grading or building permits.  Control measures implemented throughout construction.  Construction Traffic Management Plan submitted to the City.  Plan shall include number and size of trucks per day, expected arrival/departure times, circulation patterns, location of truck staging areas, proposed use of traffic control/partial street closures on public streets, and demonstrate how Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria  Delivery trucks do not idle/stage within the public right-of- way.  All delivery trucks shall use Page Mill Road to access the site.  Any lane closures on southbound Page Mill Road are limited to a single lane during off-peak hours (8:30 a.m. to 3:30 p.m.).  All construction employees shall park on site.  Roadways, sidewalks, crosswalks, and bicycle facilities shall be maintained clear of debris (such as rocks) that could otherwise impede travel and impact public safety. performance standards will be attained.  Periodic field inspections to verify compliance. Mitigation Measure TRAF-2: The project applicant shall construct the improvements necessary to reconfigure the back-to-back left-turn pockets on Page Mill Road at Hansen Way and Hanover Street so that the westbound left-turn pocket at Hanover Street has approximately 550 feet of storage space with the option to add a second left-turn lane in the future, and the eastbound left-turn pocket at the project driveway/Hansen Way has approximately 225 feet of storage space. This change can be accomplished by reducing lane widths and modifying the center median such that the left-turn pockets are next to each other for a portion of their length rather than back-to- back. This may require minor modification to the traffic signal equipment within the median island at both Hansen Way and Hanover Street. Applicant City of Palo Alto  Prior to _____  Improvements to the back-to-back left turn pockets on Page Mill Road at Hansen Way and Hanover Street shall be completed leaving the westbound Hanover Street turn pocket with approximately 550 feet of storage space and the Hansen Way turn pocket with approximately 225 feet of storage space. Mitigation Measure TRAF-3: The project applicant shall provide a fair share allocation of funds necessary for the City of Palo Alto (City) Applicant City of Palo Alto  Prior to ______  A fair share allocation Attachment I Mitigation Monitoring Program 1050 Page Mill Road Project MMP 8548 October 2015 1 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria to change the intersection phasing for the Page Mill Road and Hanover Street intersection to an to eight-phase signal operation that would allow pedestrians to use both crosswalks across Page Mill Road simultaneously. The intersection shall be reconfigured to provide separate left-turn lanes in each direction on Hanover Street. of funds shall be provided to the City to change the intersection phasing for Page Mill Road and Hanover Street intersection to an eight phase signal operation. ATTACHMENT J PROJECT PLANS (Hardcopies submitted to Councilmembers and Libraries only) These plans can be reviewed at the following link: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=2642&TargetID=319 City of Palo Alto (ID # 6396) City Council Staff Report Report Type: Informational Report Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Utilities Quarterly Update Title: City of Palo Alto Utilities Update for the First Quarter of Fiscal Year 2016 From: City Manager Lead Department: Utilities This update, on water, gas, electric, wastewater collection and fiber utilities, efficiency programs, legislative/regulatory issues, utility-related capital improvement programs, operations reliability impact measures and a utility financial summary, is for the Council’s information. This update has been prepared to keep the Utilities Advisory Commission and Council apprised of the major issues that are facing the water, gas, electric, wastewater collection and fiber utilities. Items of special interest this quarter include: • an update on the reduced availability of on hydroelectric supplies due to the drought (page 1) • a chart showing retail natural gas commodity rates since July 2012 (Figure 6, page 9) • a chart showing the City’s water use compared to savings targets (Figure 11, page 13) • results from the summer 2015 Demand Response pilot program (page 16) • description of a social media campaign to support women engineers (page 19) • a final update on new state legislation from the 2015 session that was signed into law (page 20) • a report on actions by the State Water Resources Control Board to fine water agencies that did not meet their mandated water use reductions (page 24) • comparison tables showing that Palo Alto’s residential gas rates are lower than PG&E’s as a result of PG&E’s increasing expenditures on its gas pipelines (Table 11, page 29) Attachments:  Attachment A: Utilities Update for the First Quarter of Fiscal Year 2016 (PDF)         Utilities  Quarterly   Update  First Quarter of  Fiscal Year 2016  December 2015  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    i  Utilities Quarterly Update   Table of Contents  I. Electricity ...................................................................................................................... 1  Electric Supplies ............................................................................................................................................ 1  Electric Transmission Alternatives ................................................................................................................ 3  Electric Budget and Portfolio Performance Measures ................................................................................. 3  II. Natural Gas ................................................................................................................... 8  Market Price History and Projections ........................................................................................................... 8  Gas Supply Retail Rates ................................................................................................................................. 9  Gas Budget and Portfolio Performance Measures ..................................................................................... 10  III. Water ......................................................................................................................... 12  Water Availability ........................................................................................................................................ 12  Water Budget Performance Measures ....................................................................................................... 13  IV. Fiber Optics ................................................................................................................ 15  Commercial Dark Fiber Service ................................................................................................................... 15  V. Public Benefit, Demand Side Management Programs and Communications ............... 16  Energy Efficiency, Water Conservation and Local Renewable Energy Program Achievements ................. 16  Communications Update ............................................................................................................................ 18  VI. Research and Development and Innovation ............................................................... 19  Program for Emerging Technologies ........................................................................................................... 19  VII. Legislative and Regulatory Issues ................................................................................ 20  State Legislative Issues ................................................................................................................................ 20  Federal Legislative Issues ............................................................................................................................ 23  State Regulatory Proceedings ..................................................................................................................... 24  VIII. Utility Financial Summary ........................................................................................... 24  Electric Utility Overview .............................................................................................................................. 24  Gas Utility Overview.................................................................................................................................... 25  Wastewater Collection Utility Overview ..................................................................................................... 25  Water Utility Overview ............................................................................................................................... 25  Fiber Optic Utility Overview ........................................................................................................................ 26  CIP Reserves (Reappropriations and Commitments) Summary ................................................................. 28  Residential Bill Comparisons ....................................................................................................................... 29  Non‐Residential Bill Comparisons ............................................................................................................... 30  CIP Project Detail ........................................................................................................................................ 30       Utilities Quarterly Update for First Quarter of FY 2016  December 2015    ii  List of Figures  Figure 1:  Electric Supply Resource Projection, 2015 to 2017 (as of October 30, 2015) .............................. 2  Figure 2:  Northern California Peak Electric Prices (as of October 30, 2015) ............................................... 3  Figure 3:  FY 2016 Electric Load and Resource Balance ................................................................................ 6  Figure 4:  FY 2016 Electric Market Purchase Costs and Market Prices ......................................................... 7  Figure 5:  Natural Gas Prices – Historical and Projected as of October 19, 2015 ......................................... 8  Figure 6: CPAU’s Gas Commodity Rates—July 2012 through November 2015 ............................................ 9  Figure 7:  Cumulative Redwood Pipeline Cost vs. Market Benchmarks ..................................................... 10  Figure 8:  Natural Gas Consumption – Budget vs. Actual ........................................................................... 11  Figure 9:  Natural Gas Supply Cost – Budget vs. Actual .............................................................................. 11  Figure 10:  FY 2016 Natural Gas Prices ($/MMBtu) – Expected vs. Actual ................................................. 12  Figure 11: Water Use Compared to Target for Compliance Period ............................................................ 13  Figure 12:  Water Consumption – Budget vs. Actual .................................................................................. 14  Figure 13:  Water Cost – Budget vs. Actual ................................................................................................. 14  Figure 14: Demand Response Event Reduction .......................................................................................... 17    List of Tables  Table 1: FY 2016 Electric Utility Supply Cost Summary ................................................................................ 4  Table 2: FY 2015 Electric Load and Generation Compared to Budget Projections ....................................... 5  Table 3: Status to date of all applications to the Program for Emerging Technologies ............................. 20  Table 4: Financial Projections, FY 2016 ....................................................................................................... 27  Table 5: FY 2016 Operations Reserves ($000) ............................................................................................ 27  Table 6: Electric CIP Reappropriations and Commitments ......................................................................... 28  Table 7: Gas CIP Reappropriations and Commitments ............................................................................... 28  Table 8: Wastewater Collection Utility CIP Reappropriations and Commitments ..................................... 28  Table 9: Water Utility CIP Reappropriations and Commitments ................................................................ 28  Table 10: Residential Electric Bill Comparison ($/month) .......................................................................... 29  Table 11: Residential Natural Gas Bill Comparison ($/month) ................................................................... 29  Table 12: Residential Water Bill Comparison ($/month) ............................................................................ 29  Table 13: Residential Wastewater Collection (Sewer) Bill Comparison ($/month) .................................... 29  Table 14: Median Residential Overall Bill Comparison ($/month) ............................................................. 30  Table 15: Non‐Residential Electric Bill Comparison ($/month) .................................................................. 30  Table 16: Non‐Residential Natural Gas Bill Comparison ($/month) ........................................................... 30  Table 17: FY 2016 Q1 Reserve Report from the City’s Financial System .................................................... 31  Table 18: Electric Utility CIP Project Detail (pg 1/2) ................................................................................... 32  Table 19: Gas Utility CIP Project Detail (pg 1/2) ......................................................................................... 34  Table 20: Water Utility CIP Project Detail (pg 1/2) ..................................................................................... 36  Table 21: Wastewater Collection Utility CIP Projects ................................................................................. 38  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    1  I. Electricity  Electric Supplies   Western Area Power Administration (Western) Issues  Unfortunately the ongoing drought continues to keep projected Western Base Resource  generation levels well below long‐term average levels (399 GWh).  For the first quarter of FY  2016, Western supply delivered just 98 GWh (34% below long‐term average levels, and 0.5%  lower than in FY 2015). Even assuming median precipitation levels going forward, Western is  projected to supply only 254 GWh in FY 2016 (36% below long‐term average levels).    In addition to the effect on Base Resource generation, the current drought conditions are also  having a major impact on the City’s Central Valley Project Improvement Act (CVPIA) Restoration  Fund1 obligations. Palo Alto’s CVPIA Restoration Fund obligation for FY 2016 is expected to be  $6.1 million, an estimate that includes a significant cost carryover that power customers have  from their FY 2015 funding obligation.  This carryover amount will add an additional $0.9 million  to Palo Alto’s Restoration Fund costs, and is being collected over the months of December 2015  through August 2016.  For reference, FY 2014 Restoration Fund costs for Palo Alto (not  including a $1.3 million amount that was carried over to FY 2015) were $3.1 million.    Palo Alto’s contract with Western is in effect through 2024.  Western issued its first draft of the  2025 Power Marketing Plan to define the successor agreement.  Palo Alto is coordinating with  the Northern California Power Agency (NCPA) to develop comments on the proposal.    Calaveras Hydroelectric Project Issues  The drought conditions are having a similar impact on Calaveras; for the first quarter of FY 2016  Palo Alto’s share of this project’s generation was just 6 GWh (87% below the long‐term average  level, and 32% lower than in FY 2015).  Assuming median precipitation levels going forward,  Calaveras is projected to deliver just 67 GWh in FY 2016 (51% below long‐term average levels).    Renewable Energy Contract Summary  Since the last quarterly report, the second of the City’s five utility‐scale solar photovoltaic (PV)  projects under contract completed construction and began the testing and commissioning  process. The 27 megawatt (MW) Hayworth project near Bakersfield was completed in early  November and is expected to begin full commercial operation in early December 2015. When it  does so, it will join the 20 MW Kettleman project in Kings County, which was completed in July  and began commercial operations in August 2015. Meanwhile, the City’s counterparties report  that the remaining three solar PV projects that are in the development process continue to                                                          1 The Central Valley Project Restoration Fund was authorized in the 1992 CVPIA. This Fund provides funding from  project beneficiaries for habitat restoration, improvement and acquisition, and other fish and wildlife restoration  activities in the Central Valley Project area of California.  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    2  make good progress toward completion, and all are expected to begin operations around the  middle of 2016.    Electric Load and Resource Balance  The size of the committed and planned market purchases over the current and the next two  calendar years (CYs) (shown in Figure 1 below) reflects a significantly below average level of  hydroelectric output, as discussed above.  For CYs 2015 and 2016 combined, committed fixed‐ price forward market purchases currently account for approximately 418 GWh, which  represents 21% of the City’s total load for the two‐year period.  Net planned market purchases  represent another 12% of the City’s total load for this period.  (There are currently no planned  forward market purchases for CY 2017). Long‐term resources (everything but forward and  planned market purchases) currently account for the remaining 79% of the City’s total load over  the three‐year period of CY 2015 through CY 2017 (which has not changed since the time of the  previous quarterly report).    Figure 1:  Electric Supply Resource Projection, 2015 to 2017 (as of October 30, 2015)      Electric Market Price History and Projections  As of October 30, 2015, the price for on‐peak energy for November 2015 in Northern California  was $31.31 per megawatt‐hour (MWh), while the prices for December 2015 and January 2016  were $32.65/MWh and $32.51/MWh, respectively.  These values are all approximately  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    3  $4.84/MWh lower than they were at the time of the last quarterly report.2  On‐peak prices for  calendar year strips are in the range of $34 to $36/MWh for 2016 through 2018.  These prices  are approximately $2/MWh lower than they were at the time of the last quarterly report.   Figure 2 below illustrates historical monthly on‐peak prices and projected monthly forward  prices for Northern California from 2005 through 2022.    Figure 2:  Northern California Peak Electric Prices (as of October 30, 2015)      Electric Transmission Alternatives  Discussions with potential project partners for a transmission interconnection between the  SLAC National Accelerator Laboratory in Stanford and the City continue. The City is currently  working with Stanford to evaluate business models to enable Stanford’s continued participation  in the project.    Electric Budget and Portfolio Performance Measures  Electric Supply Cost Summary Compared to Budget Estimates  Table 1 below shows the City of Palo Alto Utilities’ (CPAU’s) supply cost by cost category  through the first quarter of FY 2016.  Supply costs were $0.9 million (3.4%) under budget                                                          2 Market prices for the previous quarterly report were from September 8, 2015.  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    4  primarily due to lower transmission costs than expected.  However, hydro costs increased.  The  low hydroelectric output has resulted in the need to purchase more energy in the market.   Hydroelectric costs do not decrease even when output is low, and the cost of Western  hydropower from the Central Valley Project (CVP) has actually increased due to the drought.   When sales to CVP water customers are below average, as they currently are, some of the  unrecovered costs are allocated to power customers like CPAU.       Table 1: FY 2016 Electric Utility Supply Cost Summary         Supply Cost  Category Actuals,  Year To‐Date Month by Month Budget Variance July through June TOTAL 19.8 million Renewable Sources 5.2 million ‐1.6  million Western Hydro 4.0 million ‐0.8  million Transmission 4.5 million +1.6  million NCPA Services 0.7 million +0.0  million Capacity Amount Over (+) /   Under(‐) Budget Market Purchases $2.2 million +0.1  million Calaveras Hydro 3.0 million ‐0.0  million 0.3 million +0.0  million Carbon Neutral Costs 0.0 million ‐0.1  million ‐0.9  million Utilities Quarterly Update for First Quarter of FY 2016  December 2015    5  Electric Usage and Generation Summary Compared to Budget Estimates  Table 2 and Figure 3 below summarize the City’s electric supply sources through the first  quarter of FY 2016.  Hydroelectric generation was substantially below budget projections due  to drought conditions, requiring the purchase of additional energy in the forward and spot  markets.  New solar generation was also much lower than budgeted, but this is mainly due to  delays of the commercial operation dates for the City’s first two solar projects.     Table 2: FY 2015 Electric Load and Generation Compared to Budget Projections    Year To‐Date Month by Month Budget Variance July through June Generation Source Generation  Year To‐Date % of  Portfolio Month by Month Budget Variance July through June 38% 2% 9% 18% 4% 14% 14% TOTAL SUPPLY 256 GWh 100% Calaveras Hydro 6 GWh ‐18 GWh Amount Over (+) /   Under(‐) Budget Projection Load 256 GWh +2 GWh Amount Over (+) /   Under(‐) Budget Projection Western Hydro 98 GWh ‐14 GWh Landfill Gas 23 GWh ‐5 GWh Wind 47 GWh ‐0 GWh Forward Market 36 GWh +36 GWh Solar 10 GWh ‐8 GWh Spot Market 36 GWh +11 GWh +10 GWh Utilities Quarterly Update for First Quarter of FY 2016  December 2015    6  Figure 3:  FY 2016 Electric Load and Resource Balance       Utilities Quarterly Update for First Quarter of FY 2016  December 2015    7  Electric Market Prices and Costs Compared to Budget Estimates  Figure 4 shows monthly market prices and the cost of purchasing energy from the market.   Electric market prices through the first quarter of FY 2016 were lower due to lower natural gas  prices that impacted the electricity markets.  The cost of market purchases through the first  quarter of FY 2016 was about $70,000 lower than it would have been if all energy had been  purchased in the spot market3.  As discussed previously, the total cost of market purchases was  substantially higher than budgeted due to lower than projected output from hydroelectric and  renewable resources.         Figure 4:  FY 2016 Electric Market Purchase Costs and Market Prices                                                                3 Note that some market purchases are made on a forward basis to lock in market prices.   Utilities Quarterly Update for First Quarter of FY 2016  December 2015    8  II. Natural Gas  Market Price History and Projections  Ample supply and large volumes of gas in storage are keeping gas prices low.  Forward gas  prices at PG&E Citygate are in the $3.00 per million British Thermal Units (MMBtu) range for  the next 12 months.  Figure 5 below shows historical monthly bidweek index prices and forward  natural gas prices at PG&E Citygate as of October 19, 2015.      Figure 5:  Natural Gas Prices – Historical and Projected as of October 19, 2015         Utilities Quarterly Update for First Quarter of FY 2016  December 2015    9  Gas Supply Retail Rates  Since July 1, 2012, the commodity portion of CPAU’s retail gas rates for all customers varies  every month depending on the market price of natural gas.  Figure 6 below shows the actual  rates charged from July 2012 through November 2015.  These rates can also be found on our  web site at: http://www.cityofpaloalto.org/civicax/filebank/documents/30399.  Note that gas  commodity rates are currently at their lowest level since July 2012 when these costs began  being passed on directly to customers on a monthly basis.    Figure 6: CPAU’s Gas Commodity Rates—July 2012 through November 2015         Utilities Quarterly Update for First Quarter of FY 2016  December 2015    10  Gas Budget and Portfolio Performance Measures   Value of CPAU’s Share of Redwood Pipeline Capacity  Figure 7 below shows the cost of the Redwood gas transmission line compared to the value at  month‐ahead spot market prices as well as daily spot market prices.  The Redwood pipeline  allows the City to buy gas at the receipt point of Malin, Oregon and transport the gas to “PG&E  Citygate”, which is normally a higher value receipt point.  The City’s share of the Redwood  pipeline was a net benefit to the Gas Utility of approximately $93,000 through the first quarter  of FY 2016.  This is the difference between the value of Redwood capacity of $221,000 (the  difference of the monthly index prices at the ends of the Redwood pipeline in Malin, Oregon  and PG&E Citygate) and the transportation cost of using the Redwood pipeline of $128,000.      Figure 7:  Cumulative Redwood Pipeline Cost vs. Market Benchmarks      Natural Gas Consumption and Costs: Budget vs. Actual  Figure 8 and Figure 9 compare actual natural gas use and supply costs with the FY 2016 budget.   Natural gas use through the first quarter of FY 2016 was 31% below the budget forecast, and  costs were 58% lower than budgeted amounts.  Multiple station shut‐downs due to PG&E  construction and maintenance work were the main drivers of the lower than budget gas usage  and cost. Reduced gas usage may also be impacted by the drought and customer’s reduced  usage of (hot) water. Lower than budgeted gas prices were also a contributor to the lower than  budgeted commodity cost.    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    11  Figure 8:  Natural Gas Consumption – Budget vs. Actual      Figure 9:  Natural Gas Supply Cost – Budget vs. Actual    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    12  Figure 10 shows actual gas prices at PG&E Citygate (CG) versus gas prices that were projected  at the time the FY 2016 budget was developed.  Since July 2015, gas prices have been lower  than budget.  The price of gas is passed directly to consumers through the monthly‐varying,  market‐based commodity portion of CPAU’s gas retail rate.    Figure 10:  FY 2016 Natural Gas Prices ($/MMBtu) – Expected vs. Actual      III. Water  Water Availability  The State of California is in a fourth year of drought, and all water systems across the state have  been impacted.  Water storage utilized by City’s water supplier, the San Francisco Public  Utilities Commission (SFPUC), has been an effective tool for managing the system, but has been  heavily impacted by the consecutive dry years.  As of November 1, 2015 the total water in  storage for the SFPUC’s regional water system was only 46.6% of capacity.    The State Water Resources Control Board (SWRCB) mandated that Palo Alto reduce potable  water use for the compliance period (June 1, 2015 through February 28, 2016) by 24%  compared to usage during the same period in 2013.  On November 13, Governor Brown issued  an executive order that authorizes SWRCB to extend the mandatory statewide reduction in  urban potable water usage to at least October 31, 2016, if drought conditions persist through  January 2016.  Most of the savings will come from reduced outdoor irrigation during the  summer months.  CPAU has placed particular emphasis on continuing to irrigate and protect  the health of trees in the City while still reducing outdoor irrigation. As of November 18, the  City’s water use was 32.9% less than 2013 for the compliance period and is on track to meet the  24% target, as shown in Figure 11 below.    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    13      Figure 11: Water Use Compared to Target for Compliance Period      Water Budget Performance Measures  Figure 12 and Figure 13 below compare actual water consumption and water supply cost to the  FY 2016 budget projections.  The community has responded with substantial water savings  since the SFPUC called for voluntary reductions in January 2014.  CPAU has been working  diligently with the City’s interdepartmental drought team to ensure the message about  necessary water use reduction has been widespread, and to develop innovative solutions to  help the City and community members meet its water use reduction target. Actual water use  through the first quarter of FY 2016 was 3% lower than budget estimates.  Actual supply costs  through the first quarter of FY 2016 were 3% below budget, mostly due to the lower  consumption.    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    14  Figure 12:  Water Consumption – Budget vs. Actual      Figure 13:  Water Cost – Budget vs. Actual    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    15  IV. Fiber Optics  Commercial Dark Fiber Service   The total number of commercial dark fiber customers was 105 as of the end of the first quarter  of FY 2016. The total number of active dark fiber service connections serving commercial  customers and the City is 232 (some customers have multiple connections). Commercial  customers generate 81% of the dark fiber license revenues. Through the end of the first quarter  of FY 2016, six new dark fiber service connections to existing and new customers were  completed, while one service connection was disconnected.    Fiber Audit  On October 20, 2015, CPAU selected a vendor to provide professional services in the form of a  physical audit of the dark fiber optic network. The audit will aid CPAU to better operate and  maintain the fiber optic network. The retrieved data will provide complete fiber routes and  usage to optimize use and to minimize outages and optimize efficiency in designing and  installing new connections.  The principal objective of the audit is to collect information and  data that will verify customer connectivity and populate GIS.  The scope of the audit includes:  1. Conduct a physical audit of the CPAU’s fiber optic system;  2. Verify fiber routes and usage;  3. Verify equipment types and locations ‐ nodes, splices, enclosures, risers & slack loops;  4. Open and audit enclosures;  5. Take digital photographs of each fiber tray;  6. Track and document data; and  7. Identify and document immediate maintenance needs  8. Populate a centralized database for use by Marketing, Engineering and Operations.    Google Fiber   In September 2015, Google representatives informed staff about Google’s intent to announce  in early 2016 plans to begin building a fiber to the premise (FTTP) network in Mountain View,  Santa Clara, Sunnyvale, San Jose and Palo Alto.  This announcement is contingent on resolving a  number of issues by the end of the year with each city, including securing necessary approvals  from the respective Councils.  Generally, the neighboring cities appear to be on schedule to  meet an end of year target.    Council has tasked staff with managing two different projects, Google Fiber, and City Fiber and  Wireless Services, simultaneously.  Completion of both tasks may not be achievable on Google  Fiber’s timeline due to the complexity and size of the Google Fiber Project and Google’s desire  for an accelerated timeline; the City anticipates that substantial staff and third‐party  contracting resources for legal services, engineering, inspection, planning and administration  will be required in order to prepare for and implement any approved project.  The City has  already incurred, and will incur, costs and expenses beyond what the City would otherwise  recover for under the Municipal Fee Schedule and will request that Google reimburse the City  for such costs and expenses.  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    16    AT&T GigaPower  In April 2014, AT&T announced its plan to bring fiber to the Silicon Valley area. AT&T’s  “GigaPower” project is an upgrade to its existing U‐verse services (Project Lightspeed) and will  be deployed to residents initially in neighborhoods with high potential for adoption. AT&T plans  to begin construction and provide GigaPower service to selected neighborhoods in 2016 under  phase one of the project.    Citizen Advisory Committee  On October 29, 2015, staff met with the Citizen Advisory Committee (CAC) to review the  estimates for outside plant costs stated in the FTTP Master Plan report.  Representatives from  CTC Technology & Energy (CTC) presented a review of the assumptions used to support the cost  estimates. The purpose of this presentation was to respond to the Council’s request to update  CTC’s report if there is a disagreement between the report and the CAC’s recommendation.  A  follow up meeting with the CAC was held on November 12, 2015 to discuss and document any  disagreements the CAC may have with CTC’s reports, with a focus on the estimates for the  outside plant costs in the FTTP Master Plan.  Staff continues to work with the CAC to review the  CTC reports and document potential disagreements.  Staff and the committee also discussed  the feasibility of a “co‐build” concept with AT&T and Google Fiber and how the City can lay its  own conduit to the premise during the buildouts.   V. Public Benefit, Demand Side Management Programs and  Communications  Energy Efficiency, Water Conservation and Local Renewable Energy Program Achievements   CPAU offers a wide range of customer programs and services to encourage energy and water  efficiency and customer‐owned renewable generation. Some of these programs are  administered by CPAU staff, although the majority of the energy and water savings are  achieved through third‐party  administered programs. The Annual DSM Report summarizes  overall savings goals versus achievements, program‐level achievements and expenditures, as  well as key initiatives undertaken by CPAU. The Annual DSM Report for FY 2014 was provided  to UAC on May 6, 2015 and Council on May 18, 2015 (Staff Report 5708).    Home Efficiency Genie Program  Staff launched a new residential energy audit program called the Home Efficiency Genie where  residents pay a small co‐payment for an in depth building performance audit.  Over the first  three months since the program launched, it has been at full capacity and continues to grow.      Pilot Summer Demand Response Program   The pilot Demand Response (DR) program is designed to reduce the Utility’s summer peak load.  Such reductions have a value of approximately $20,000/MW. Over the past 5 years, the  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    17  program has reduced peak loads by 0.6 MW to 1.4 MW with the participation of about eight  large customers, including City Hall.     DR events were called on 5 days during the summer of 2015. A total of about 10 MWh was  reduced by 5 customers between 1pm and 5pm on these days, which earned the participating  customers incentive payments of approximately $5,000. Figure 14 below illustrates the 987 kW  reduction achieved on September 11, 2015.      Figure 14: Demand Response Event Reduction      With DR resources taking on a more important role to balance intermittent renewable  generation, staff is exploring ways to expand the program to add value to the electric supply  portfolio and reduce customer bills. Technologies tested through the Program for Emerging  Technology (PET) are being evaluated for implementation.  Flexible EV charging of electric  vehicles (EVs) is one such technology being evaluated.     Net Energy Metering Cap  On October 26, 2015 City Council approved a formal definition of the Net Energy Metering  (NEM) cap of 9.5 MW (Staff Report 6139). As of October 28, 2015, Palo Alto has 7.23 MW of  local solar photovoltaic (PV) capacity, representing 76% of the NEM cap.     Utilities Quarterly Update for First Quarter of FY 2016  December 2015    18  Georgetown University Energy Prize   Staff has been working with PAUSD high school students on an internship program that focuses  on energy efficiency outreach in support of the Georgetown competition. Staff has worked with  a consultant to provide an online energy and water use portal for our residential customers.  This portal will host the Georgetown competition statistics and rankings, and engage customers  with energy efficiency information. The National Resources Defense Council and Duke  University are assisting in designing an energy savings competition during the Georgetown  competition period (calendar years 2015 and 2016).    Education, Workshops and Community Outreach Activities   The summer and fall residential workshops and events continued this quarter. CPAU teamed  with BAWSCA and coordinated four water workshops to help customers get through the  current drought and prepare for potential heavy rains. Workshop topics included Water  Conservation 101, Maintaining Existing Landscape in a Drought, Rainwater Harvesting and  Greywater Reuse and Fundamentals of Waterwise Gardening. CPAU also hosted a hands‐on  workshop to re‐landscape in front of City Hall.  Approximately 150 residents attended these  workshops. CPAU also tabled at a Green Fest hosted by local high school students, the Midtown  Resident’s Association Ice Cream Social, a Colorado Avenue block party and a Santa Clara Valley  Water District led drought gear event. Approximately 980 residents attended these events.     CPAU hosted the Building Carbon Zero California Conference on November 13, 2015 at Lucie  Stern Community Theater and Community Center. Mayor Karen Holman kicked off the  conference and the keynote speaker was Nobel Peace Prize recipient Dr. Diana Ürge‐Vorsatz.  The event drew about 300 attendees.      Communications Update   This section summarizes communications highlights, updates on major campaigns and  noteworthy events.     FY 2016 Rate Adjustments  At the beginning of FY 2016, staff managed a comprehensive outreach campaign about utility  rate adjustments effective July 1, 2015, including developing FAQs, bill inserts, web resources,  staff training and correspondence with stakeholders such as customers, UAC and City Council.     Regulatory Reports – Public Awareness Component  Every year by July 1, water utilities are required to update an Annual Water Quality Report and  notify all customers that it is available. This year, to save print and postage expenses, CPAU  mailed a “mini insert” to inform customers that the 2014 Annual Water Quality report is  available online and also in hard copy format upon request.     Gas utilities are required to update and mail an Annual Gas Safety Awareness brochure to all  customers, as well as non‐customers living near a gas distribution pipeline, locators,  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    19  contractors, plumbers and excavators who work in their service area. CPAU mailed the gas  safety brochures in July.    Each year, electric utilities are required to disclose the power content of electric supply  resources delivered to customers, including renewable and non‐renewable sources, through a  Power Content Label. In September, CPAU mailed two different versions of the Power Content  Label to customers. Non‐residential customers received a Power Content Label with  information on the PaloAltoGreen program, since it is still available for their participation.  Residential customers received a Power Content Label without PaloAltoGreen renewable  energy certificate information, as the residential program was discontinued last year.    Social Media Campaign with APPA  In September, CPAU joined the American Public Power Association (APPA) to support the  #ILookLikeAnEngineer social media campaign. Female engineers were encouraged to post a  photograph of themselves in social media, highlighting the work they do as engineers. The  intent was to empower future generations of young women to pursue careers in the Science,  Technology, Engineering and Mathematical (STEM) industries. CPAU female engineers were  promoted through this campaign.     Drought Outreach  The City continued its drought response efforts, including enforcement of potable water use  restrictions and enhanced community outreach. Outreach messaging focused on the  importance of maximizing water savings during the summer months, as water savings are much  more difficult to achieve in the winter months. Utilities staff attended many speaking  engagements and community outreach events to emphasize the importance of continued  conservation, including hosting a public meeting in August.     The City promoted the new water waste reporting tool through PaloAlto311 and asked  community members to assist in identifying leaks or other areas of water waste. A new email  address, drought@cityofpaloalto.org was created to facilitate another method for customers to  communicate with the City and share water‐saving ideas for CPAU to post online and in social  media.  VI. Research and Development and Innovation  Program for Emerging Technologies  CPAU’s Program for Emerging Technologies, or PET, (www.cityofpaloalto.org/UTLInnovation)  provides the opportunity for local businesses and organizations to submit proposals for  innovative and impactful products to CPAU for review as a prospective partner. The goal is to  find and nurture creative products and services that will manage and better use electricity, gas,  water and fiber optic services.  From the program’s inception in June 2012 through the first  quarter of FY 2016, the program received a total of 45 applications.  Table 3 below summarizes  the status of all applications through the first quarter of FY 2016.   Utilities Quarterly Update for First Quarter of FY 2016  December 2015    20    Table 3: Status to date of all applications to the Program for Emerging Technologies   Deadline Total Received Under Review Declined/Closed Active Completed July 2012 2 0 2 0 0  Oct 2012 5 0 5 0 0  Jan 2013 1 0 1 0 0  April 2013 5 0 3 0 2  July 2013 3 0 2 0 1  Oct 2013 5 0 3 1 1  Jan 2014 3 0 3 0 0  April 2014 4 0 1 2 1  July 2014 2 0 2 0 0  Oct 2014 5 0 2 2 1  Jan 2015 2 0 1 1 0  April 2015 6 3 2 0 1  July 2015 2 1 0 0 1  TOTAL 45 4 27 6 8    PET Project Highlight from the first quarter of FY 2016:    Customer Engagement Portal for Energy and Water Use and Management – Staff has been  working with Nexant to launch a pilot portal called iEnergy for data management, analytics  and customer engagement.  Through the portal, utilities customers will be able to better  manage and control their energy and water usage.  For instance, portal users will be able to  view historical monthly consumption data, to receive information on CPAU’s efficiency  programs and rebates offerings, and to learn more about renewable energy and related  program opportunities.  Enrollment began in early November 2015.   VII. Legislative and Regulatory Issues   State Legislative Issues   CPAU staff participates on the legislative committees of the California Municipal Utilities  Association (CMUA) and NCPA.  2015 was the first year of California’s two‐year (2015‐2016)  legislative session and October 11 was the last day for the Governor to pass or veto bills passed by  the legislature.  The legislature reconvenes January 4, 2016.  Upcoming deadlines for the beginning  of next year are January 31 for each house to pass bills that were introduced in that house in 2015  (i.e., bills that stalled or were held in their house of origin this year) and February 19 for new bills  to be introduced. Much of the energy legislation this year targeted GHG emissions and  renewables, while much of the water legislation focused on conservation.  Anticipated legislative  focus for 2016 includes a successor to the net energy metering program (NEM 2.0), 2030 GHG  reductions goals, incentives for local solar, customer utility data disclosure, demand response and  energy storage targets, changes to the Power Content Label (PCL), Public Goods Charge for water,  further drought emergency actions, alternative and new water supplies (e.g. recycled water,  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    21  desalination) and California Environmental Quality Act (CEQA) legislation.  Following is a summary  of statutes passed in 2015.     Energy Legislation  AB 802 (Williams) – Energy efficiency:  This statute requires the California Public Utilities  Commission (CPUC) to authorize the investor‐owned utilities (IOUs) to provide incentives and  assistance for measures to conform a building to California Energy Commission's (CEC’s) energy  efficiency standards for existing buildings and to allow IOUs to recover in rates the reasonable  costs of those incentives and assistance. Currently, the IOUs’ energy savings only include those  that exceed Title 24 energy efficiency standards for existing buildings, so this will expand the  amount of cost effective programs that can be funded by the IOUs.   The statute also includes  benchmarking requirements, and applies to publicly owned utilities (POUs) such as City of Palo  Alto.  Utilities will be required to maintain records of the energy usage data of all buildings to  which they provide service for at least the most recent 12 month period and, upon the request  and authorization of the owner (or owner's agent), provide aggregated energy usage data for a  covered building to the owner or to the owner's account in the ENERGY STAR Portfolio Manager.   There are existing benchmarking requirements, but AB 802 expands the scope of buildings covered  and removes some of the customer privacy requirements.  Palo Alto does not have an automated  system for providing energy use data so any expansion of the program will require more resources  to either continue the manual process or automate.  Customer privacy issues will also need to be  reviewed.   Status: Approved by Governor, Chapter 590, Statutes of 2015  AB 1236 (Chiu) – Electric vehicle charging stations: This statute requires cities and counties to  create an expedited permitting and inspection process for electric vehicle (EV) charging stations.  A  particular concern for POUs was the apparent inconsistent treatment compared to the IOUs,  which retained the authority to set utility interconnection requirements.  Later amendments to  the bill included a provision that “[a]n application submitted to a city, county, or city and county  that owns and operates an electric utility shall demonstrate compliance with the utility’s  interconnection policies prior to approval”.  This retains the City’s flexibility to adopt utility  interconnection requirements should it be necessary.  Status: Approved by Governor, Chapter 598, Statutes of 2015  AB 1448 (Lopez) – Personal energy conservation/real property restrictions: This statute permits  tenants, as well as owners in a homeowners association (HOA), to use clotheslines and drying  racks if certain conditions are met, including that the clothesline or drying rack will not interfere  with the maintenance of the property. CMUA supported this bill.  Status: Approved by Governor, Chapter 602, Statutes of 2015  SB 272 (Hertzberg) – The California Public Records Act: local agencies: inventory: This statute  requires local agencies in implementing the California Public Records Act, to create a catalog of  enterprise systems, make the catalog publicly available upon request and post the catalog on the  local agency's Internet Web site.  CMUA opposed the bill on the grounds of cost impact to local  agencies and cybersecurity concerns with making information available about utility control  systems.  The final version of the language explicitly exempts infrastructure and mechanical  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    22  control systems that control or manage street lights, electrical, natural gas, or water or sewer  functions.  However, general cost impacts and security concerns remain for the General Fund.   Status: Approved by Governor, Chapter 795, Statutes of 2015  SB 350 (De León) – Clean Energy and Pollution Reduction Act of 2015: This is also referred to as  the 50‐50‐50 bill and was intended to implement the governor’s environmental goals. However,  last minute negotiations removed the transportation component of the bill.  This statute increases  the Renewable Portfolio Standard (RPS) to at least 50% by December 31, 2030.  Palo Alto  successfully negotiated to get accommodation for our hydro portfolio during high hydro years  (during years when hydro exceeds 50% of our portfolio, CPAU’s RPS requirement will be reduced).   Also inserted in the last days of the session is a requirement for the larger POUs (which will include  Palo Alto) to prepare integrated resource plans (IRPs).  While preparing an IRP per se is not a  burden for Palo Alto and is already done to a large extent in the preparation of LEAP, the language  is very prescriptive, hastily constructed, introduces redundant reporting requirements and  requires the IRP to be submitted to, and reviewed by, the CEC.  Despite a coordinated attempt to  remove or fix the IRP language, the momentum to pass SB 350 was unstoppable.  There will be a  concerted effort by NCPA and CMUA in the 2016 session to pass legislation to fix the more  erroneous sections of the IRP requirements.   Status: Approved by Governor, Chapter 547, Statutes of 2015  Water Legislation  AB 349 (Gonzalez) – Common interest developments: property use and maintenance: Current law  makes void and unenforceable any provision that prohibits use of low water‐using plants, or  prohibits or restricts compliance with water‐efficient landscape ordinances or regulations on the  use of water. This statute adds to the list anything that prohibits use of artificial turf or any other  synthetic surface that resembles grass. CMUA supported.  Status: Approved by Governor, Chapter 266, Statutes of 2015  AB 606 (Levine) – Water conservation: This statute requires, when the Department of General  Services replaces landscaping or irrigation on public property or when new public property is  added to the department's statewide property inventory, the department to reduce water  consumption and increase water efficiencies for that property, where feasible, through  replacement of landscaping, irrigation timers, or spray sprinkler heads, implementation of recycled  water irrigation, or any combination thereof.   CMUA supported.  Status: Approved by Governor, Chapter 665, Statutes of 2015  AB 786 (Levine) – Common interest developments: property use and maintenance: Current law  prohibits a homeowners association from imposing a fine or assessment on owners for reducing or  eliminating watering of vegetation or lawns during any period for which the Governor or the local  government has declared an emergency due to drought, unless recycled water (RW) is available.    This has been interpreted at times to mean RW available anywhere in the local system even if not  directly available to the homeowner. This statute clarifies that exception to only authorize the  imposition of a fine or assessment against the owner who directly receives RW from a retail water  supplier and fails to use that RW for landscaping irrigation.   CMUA supported.  Status: Approved by Governor, Chapter 780, Statutes of 2015  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    23  AB 1164 (Gatto) – Water conservation: drought tolerant landscaping: This statute prohibits a city,  including a charter city, county, and city and county, from enacting or enforcing any ordinance or  regulation that prohibits the installation of drought tolerant landscaping, synthetic grass, or  artificial turf on residential property.     Status: Approved by Governor, Chapter 671, Statutes of 2015  AB 1531 (Committee on Environmental Safety and Toxic Materials) – State Water Resources  Control Board: The California Safe Drinking Water Act requires the State Water Resources Control  Board to administer provisions relating to the regulation of drinking water to protect public health.  This bill authorizes the state board to adopt an emergency regulation, except a regulation that  establishes maximum contaminant levels for primary and secondary drinking water standards, that  is not more stringent than, and is not materially different in substance and effect from, the  requirements of a regulation promulgated under the federal Safe Drinking Water Act. The statute  requires that these emergency regulations not be subject to review by the Office of Administrative  Law and remain in effect until revised by the state board.  It also requires an owner of a public  water system to provide to the state board reports, test results, and certain other information  within 15 business days of receiving a request for those records from the state board.   Status: Approved by Governor, Chapter 673, Statutes of 2015  Federal Legislative Issues   In October the White House and congressional leaders reached an agreement on a two‐year  budget deal that raises the government debt ceiling, sets spending levels that will facilitate  passage of appropriations bills to fund the government and increases spending for defense and  domestic discretionary spending. The deal averts a potential government default or shut‐down,  but also extends for an additional year the cuts in Treasury payments for issuers of Build America  Bonds (BABs). These bonds were authorized in the American Recovery and Reinvestment Act of  2009, and were designed for public power systems and other units of local government to raise  capital to finance clean energy projects, and other essential facilities. To encourage the use of  BABs, the federal government provides a direct payment subsidy for a portion of the borrowing  costs. Although the BABs credit payments were intended to be guaranteed, the Office of  Management and Budget (OMB) determined that the mandated cuts to federal spending, known  as sequestration, would apply to BABs payments. This budget deal extends those cuts yet again,  and 6.8% will be trimmed off of the scheduled payments for FY 2016.    Legislative progress on energy related issues has been mixed: While bipartisan efforts for an  energy bill have broken down, bipartisan efforts on hydropower have been more successful with  Representatives Jerry McNerney (D‐CA) and Cathy McMorris Rodgers (R‐WA) teaming up to offer  an amendment reforming the hydropower licensing process at the Federal Energy Regulatory  Commission (FERC).  There was also progress on cybersecurity issues with the Senate adopting the  Cybersecurity Information Sharing Act of 2015 (CISA) on October 27. The legislation, coauthored  by Senator Dianne Feinstein, facilitates targeted information sharing on cyber threats between the  federal government and non‐federal entities, including public power systems. The House passed  similar legislation early this year, and it is expected that the differences between the measures will  be resolved quickly, and sent to the President for his expected signature.    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    24    State Regulatory Proceedings   California Energy Commission   RPS Enforcement Rule – Latest version was approved by the CEC at its October 14 business  meeting. Further modifications are expected in early 2016 based on SB 350’s 50% RPS by 2030  requirements; the rule may take a year or so to complete.     State Water Resources Control Board (SWRCB)  Californians reduced water use by more than 26 percent during September, exceeding Governor  Brown’s 25 percent conservation mandate for a fourth straight month. Nearly all water suppliers  in the state have complied with the conservation standards (water suppliers were allocated water  reduction targets based on their existing per capita usage, with Palo Alto’s target set at a 24%  reduction compared to 2013 consumption). However, on October 29, the SWRCB Office of  Enforcement issued enforcement actions against four urban water suppliers that have consistently  failed to meet their water conservation goals. Each of these suppliers has been issued a complaint  for a $61,000 penalty for failing to meet their mandated conservation tier standards.  SWRCB  continues to assess further emergency conservation mandates should the drought persist beyond  the end of the current emergency regulations.    VIII. Utility Financial Summary  This section describes the unaudited actual financial results for FY 2016 for all Utilities funds.   Note that Council adopted new long‐term Financial Plans starting with FY 2015 for the Electric,  Gas, Wastewater Collection, and Water Funds in June 2015.     Electric Utility Overview  Sales through the first quarter of FY 2016 were 1.1% higher than expected. Sales revenues have  consequently been higher, but due to the ongoing drought, deliveries from Western and  Calaveras hydroelectric resources have been lower than average.  While this has necessitated  greater electricity market purchases, market costs have been lower than projected.  The largest  cost increase has come from transmission access charges, which are much higher than  budgeted ($2.2 million). Current projections indicate higher net energy costs of $3.57 million  for FY 2016.    This combination of higher costs and lower revenues results in a decrease in the level of the  Supply Operations Reserve to $13.4 million.  Both the Distribution and Supply Operations  Reserves may fall below the FY 2016 reserve minimum guideline levels based on preliminary  reserve projections, in which case an additional transfer of funds or other intervention may be  requested. The Rate Stabilization Reserve has $14.4 million which could be used for this  contingency.    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    25  As shown in Table 6, the Electric Utility CIP Reappropriation and Commitment Reserves totaled  $10.9 million at the end of Q1 FY 2016, of which $4.5 million was under contract.      Gas Utility Overview  Gas Utility sales through the first quarter of FY 2016 were lower than budget by 10.2%. This  appears to be a continuation of the trend of lower usage seen in FY 2015, when sales were  13.2% lower than budget. While the decreased consumption has resulted in $289,000 lower  distribution sales revenue to date, it is too early in the winter heating season to determine  whether this trend will continue.  Gas supply revenues to date have also been lower than  budget by $199,000, or 13%, although costs are reduced as well since as gas prices are passed  through directly to customers through the market‐based monthly‐varying commodity rate. The  Operations Reserve is projected to be between the minimum and maximum reserve guideline  range for FY 2016.    As shown in Table 7, preliminary levels for the Gas Utility CIP Reappropriation and Commitment  Reserves totaled $8.2 million at the end of Q1 FY 2016, of which $3.8 million was committed to  projects under contract.      Wastewater Collection Utility Overview   While sales revenues are projected to be lower than the Financial Plan forecast, mainly due to  lower winter water usage and thus lower commercial wastewater revenues, the Wastewater  Collection Utility is not projected to have any significant deviations from the FY 2016 Financial  Plan.  The Operations Reserve is projected to be at the minimum reserve guideline level for FY  2016. Should it be needed, the CIP reserve has an additional $2.6 million that could be utilized  in case of emergency.    As shown in Table 8, the Wastewater Collection Utility CIP Reappropriation and Commitment  Reserves totaled $11.9 million at the end of Q1 FY 2016, of which $9.3 million was committed  to projects under contract.      Water Utility Overview   Due to the ongoing drought, the Water Fund continues to be volatile with respect to sales and  revenue. Because of the reductions in water use mandated by the SWRCB after the preparation  of the 2016 Financial Plan, sales revenues and purchase costs were revised downward and  Council activated the drought surcharge effective September 1, 2015.    The Financial Plan estimated water purchases of 4.77 million hundred cubic feet (CCF) for FY  2016, but this was revised down to 4.27 million CCF after the SWRCB mandate. Staff is  continuing to monitor revenues closely, and will likely return to City Council as part of the FY  2016 midyear budget review report with a recommendation to adjust revenues to align with  actual experience during the first six months of the fiscal year.  The Operations Reserve is  projected to be within the guideline range, but should it be needed, the CIP Reserve has an  additional $13.3 million that could be utilized.  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    26    As shown in Table 9, the Water Utility CIP Reappropriation and Commitment Reserves totaled  $12 million at the end of Q1 FY 2016, of which $7.1 million was for projects under contract.      Fiber Optic Utility Overview   Fiber sales and expenses through the first quarter of 2016 are $0.9 million and $0.6 million  respectively, both are in alignment with the FY 2016 budget. Expenses are expected to increase  by $1.4 million from FY 2015 to FY 2016, $2.4 million to $3.8 million respectively, primarily due  to the Fiber Optic System Rebuild CIP project.  The dark fiber network was constructed in the  early 1990s.  Several sections of the dark fiber system have either reached capacity or are in  need of repair, thus limiting the City’s ability to add new customer connections.  The CIP project  will increase system capacity and improve system reliability. Construction is expected to begin  in the second half of 2016.  As shown in Table 5, the Fiber Optics Rate Stabilization Reserve is  projected to be $22.4 million as of the end of FY 2016.   Utilities Quarterly Update for First Quarter of FY 2016  December 2015    27  Table 4: Financial Projections, FY 2016     Sales Volumes  Revenue  ($000)  Expense  ($000)  Net Reserve Change ($000)  Electric Utility  Financial Plan 247,195,295 kWh 129,249 (139,587) (10,338)  Current Forecast 249,847,699 kWh  126,982 (140,449) (13,467)  Change from  Financial Plan  2,652,404 kWh  (2,267) ( 862) (3,129)  1.1% (1.8%) 0.6%   Gas Utility   Financial Plan 4,472,093 therms 35,993 (40,683) (4,690)  Current Forecast 4,017,302 therms 35,505 (40,484) (4,979)  Change from  Financial Plan  ‐454,791 therms  ( 488)  199 ( 289)  ‐10.2% (1.4%) (0.5%)   Water Utility   Financial Plan 1,404,564 ccf 41,517 (46,454) (4,937)  Current Forecast 1,256,065 ccf 40,196 (44,905) (4,709)  Change from  Financial Plan  ‐148,499 CCF  (1,321) 1,549  228  ‐10.6% (3.2%) (3.2%)   Wastewater Collection Utility   Financial Plan  18,319 (20,164) (1,845)  Current Forecast  18,219 (20,164) (1,945)  Change from  Financial Plan   (100) ‐ ( 100)   0.1% 0.0%   Fiber Optic Utility    Financial Plan    4,842 (3,785) 1,057  Current Forecast  4,842 (3,785) 1,057  Change from  Financial Plan   0  0.0%  0  0.0%  0    Table 5: FY 2016 Operations Reserves ($000)    Electric  Supply  Electric  Distribution    Gas Water  Wastewater  Collection  Fiber  Optic *  Beginning 16,012 6,486 10,543 11,537 2,431 21,361  Projected Change (11,583) (1,884) (4,979) (4,709) (1,945) 1,057  Transfers 9,000 ‐ 3,400 5,500 2,000 ‐  FY 2016 Ending 13,429 4,602 8,964 12,328 2,486 22,418  Reserve Minimum 14,762 7,835 5,884 6,208 2,445 895  Reserve Maximum 29,523 15,670 11,768 12,415 6,112 2,238  * For Fiber Optics, the Reserve is the Rate Stabilization (not the Operations) Reserve    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    28  CIP Reserves (Reappropriations and Commitments) Summary  Table 6: Electric CIP Reappropriations and Commitments      Table 7: Gas CIP Reappropriations and Commitments      Table 8: Wastewater Collection Utility CIP Reappropriations and Commitments  .  Table 9: Water Utility CIP Reappropriations and Commitments    Includes unspent funds from previous years carried forward or reappropriated into the current fiscal year  **Equal to Reserve for Reappropriations + Reserve for Commitments (CIP Reserves).     Utilities Quarterly Update for First Quarter of FY 2016  December 2015    29  Residential Bill Comparisons    Table 10: Residential Electric Bill Comparison ($/month)  As of November 1, 2015  Season Usage (KWh/mo)  Palo Alto  PG&E  Santa Clara  Roseville  Winter  (Nov ‐Apr)  300 28.57 50.10 33.49 51.29 453 (Median) 48.49 81.09 51.19 68.27 650 76.33 130.73 73.99 96.92 1200 172.03 306.94 137.63 186.74   Table 11: Residential Natural Gas Bill Comparison ($/month)  As of November 1, 2015  Season Usage (therms) Palo Alto  Menlo Park, Redwood City,  Mountain View, Los Altos, and  Santa Clara (PG&E Zone X)  Roseville  (PG&E Zone S)  Winter  (Nov‐May)  30 33.06 37.03 37.03 54 (Median) 51.61 66.65 66.65 80 82.00 108.13 108.95 150 172.17 226.44 227.26   Table 12: Residential Water Bill Comparison ($/month)  As of November 1, 2015  Usage CCF/month Palo Alto  Menlo  Park  Redwood  City  Mountain  View  Los  Altos  Santa  Clara Hayward 4 41.31 44.11 43.69 31.46 32.75 16.64 28.68  (Winter median) 7 63.47 62.25 57.13 48.77 44.11 29.12 48.42 (Annual median)  9 82.51 74.36 66.77 60.31 51.68 37.44 61.58 (Summer median) 14 130.11 106.12 95.46 89.16 71.58 58.24 96.24 25 234.83 176.80 182.14 187.23 115.85 104.00 181.49 Based on the FY 2013 BAWSCA survey, the fraction of SFPUC as the source of potable water supply  was 100% for Palo Alto, 95% for Menlo Park, 100% for Redwood City, 87% for Mountain View, 10%  for Santa Clara and 100% for Hayward.    Table 13: Residential Wastewater Collection (Sewer) Bill Comparison ($/month)  As of November 1, 2015  Palo Alto Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward 31.95 81.08 74.95 28.80 32.01 37.94 28.93    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    30  Table 14: Median Residential Overall Bill Comparison ($/month)  As of November 1, 2015  Utility and Usage  Palo Alto  Menlo  Park  Redwood  City  Mountain  View Los Altos  Santa  Clara Hayward Electricity (453 kWh/mo) $ 48.49 $ 81.09 $ 81.09 $ 81.09 $ 81.09 $ 51.19 $ 81.09 Gas (54 th/mo) 51.61 66.65 66.65 66.65 66.65 66.65 66.65 Wastewater 31.95 81.08 74.95 28.80 32.01 37.94 28.93 Water (9 CCF/mo) 82.51 74.36 66.77 60.31 51.68 37.44 61.58 TOTAL $214.56 $303.18 $289.46 $236.85 $231.43 $193.22 $238.25   Non‐Residential Bill Comparisons    Table 15: Non‐Residential Electric Bill Comparison ($/month)  As of November 1, 2015  Usage (KWh/mo)  Palo Alto  PG&E  Santa Clara Roseville  1,000 127 182 172 141 160,000 17,245 21,740 19,573 20,208 500,000 50,430 61,900 59,928 50,263 2,000,000 178,800 222,356 231,682 184,675   Table 16: Non‐Residential Natural Gas Bill Comparison ($/month)    As of November 1, 2015  Usage (therms/mo) Palo Alto  PG&E  500 528 476  5,000 4,605 4,061  10,000 9,422 7,365  50,000 45,666 32,057    CIP Project Detail  Tables showing the details regarding the Capital Improvement Program projects are shown in:  1. Table 18 for the Electric Utility;  2. Table 19 for the Gas Utility;  3. Table 20 for the Wastewater Collection Utility; and  4. Table 21 for the Water Utility  Utilities Quarterly Update for First Quarter of FY 2016  December 2015    31  Table 17: FY 2016 Q1 Reserve Report from the City’s Financial System    Utilities Quarterly Update for First Quarter of FY 2016  December 2015    32  Table 18: Electric Utility CIP Project Detail (pg 1/2)     Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserves Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ONE‐TIME PROJECTS EL‐06001 230 kV Electric Intertie 80,360                       27,568        (80,360)          (775)            26,793        5,000               ‐              ‐              ‐              ‐              ‐              EL‐06003 Utility Control Center Upgrades ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐             400,000       ‐              ‐              ‐              EL‐10009 Street Light Sys Conversion Project 66,468                       89,727        (66,468)           ‐              89,727         ‐                  ‐              ‐              ‐              ‐              ‐              EL‐11014 Smart Grid Technology Installation 377,661                     303,056      (377,661)        (12,600)       290,456      60,610            1,000,000   1,000,000   3,000,000   3,000,000    ‐              EL‐10008 Advanced Metering Infrastructure 46,405                        ‐              (46,405)          (287)            (287)             ‐                  ‐              ‐              ‐              ‐              ‐              EL‐11016 Elec. Vehicle Charging Infrastructure ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13002 Quarry/Hopkins Substation 60kV Line ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐             100,000      750,000       ‐              ‐              EL‐13008 Upgrade Electric Estimating System 148,650                     148,650      (148,650)        (1,487)         147,163      17,404             ‐              ‐              ‐              ‐              ‐              EL‐16003 Substation Security ‐                             50,000         ‐                  ‐              50,000         ‐                  ‐              ‐              ‐              ‐              ‐              Subtotal, One‐time Projects 719,544                      619,001        (719,544)          (15,149)         603,852        83,014            1,000,000     1,500,000     3,750,000     3,000,000      ‐                SYSTEM EXPANSION EL‐11015 Reconductor 60kV Overhead Sys ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13005 Colorado 20/21‐Xfrmr Replacement ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              Subtotal, System Expansion ‐                               ‐                 ‐                    ‐                 ‐                 ‐                   ‐                ‐                ‐                ‐                ‐                RELIABILITY EL‐12002 Hanover 22 ‐ Xfrmr Replacement ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13004 Hansen Way/Hanover 12kV Ties ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13006 Sand Hill / Quarry 12 kV Tie 183,126                     183,154      (183,126)         ‐              183,154      25,000             ‐              ‐              ‐              ‐              ‐              EL‐14005 Reconfigure Quarry Feeders 380,782                     441,901      (380,782)        (10,695)       431,206       ‐                 500,000       ‐              ‐              ‐              ‐              EL‐15000 Colorado/Hopkins Sys. Improvement 50,000                       75,000        (50,000)           ‐              75,000         ‐                 750,000      750,000       ‐              ‐              ‐              EL‐15001 Substation Battery Replacement 400,000                     220,000      (400,000)        (11,600)       208,400      56,434             ‐              ‐              ‐              ‐              ‐              EL‐16002 Capacitor Bank Installation ‐                             75,000         ‐                  ‐              75,000         ‐                 275,000       ‐              ‐              ‐              ‐              Subtotal, Reliability 1,013,908                   995,055        (1,013,908)       (22,295)         972,760        81,434            1,525,000     750,000         ‐                ‐                ‐                UNDERGROUNDING EL‐06002 UG District 45 59,271                        ‐               ‐                  ‐              59,271         ‐                  ‐              ‐              ‐              ‐              EL‐08001 UG District 42 ‐                              ‐               ‐                  ‐               ‐               ‐                 50,000        2,000,000   250,000       ‐              ‐              EL‐11009 UG District 43 ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐             150,000      2,000,000   500,000       ‐              EL‐11010 UG District 47 1,898,524                  932,240      (1,898,524)     (998,923)     (66,683)       613,396           ‐              ‐              ‐              ‐              EL‐12001 UG District 46 484,811                     685,788      (484,811)        (11,535)       674,253       ‐                  ‐              ‐              ‐              ‐              Subtotal, Undergrounding 2,442,606                   1,618,028     (2,383,335)       (1,010,458)    666,841        613,396          50,000          2,150,000     2,250,000     500,000         ‐                4/12 KV CONVERSION EL‐08000 E. Charleston 4/12kV 60,861                       60,861        (60,861)           ‐              60,861         ‐                  ‐              ‐              ‐              ‐              ‐              EL‐09002 Middlefield/Colorado 4/12 kV ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐09004 W. Charleston/Wilkie Way 4/12 kV (701)                            ‐               ‐                  ‐              (701)             ‐                  ‐              ‐              ‐              ‐              ‐              EL‐12003 Hopkins Substation Rebuild ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13000 Edgewood/Wildwood 4/12 kV Tie ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐             50,000        400,000       ‐              ‐              EL‐14000 Coleridge/Cowper/Tennyson 4/12 kV ‐                              ‐               ‐                  ‐               ‐               ‐                 120,000      400,000       ‐              ‐              ‐              EL‐14004 Maybell 1&2 4/12 kV Conversion 188,649                     309,678      (188,649)        (3,277)         306,401       ‐                  ‐              ‐              ‐              ‐              ‐              Subtotal, 4/12 kV Conversion 248,809                      370,539        (249,510)          (3,277)           366,561         ‐                  120,000        450,000        400,000         ‐                ‐                Utilities Quarterly Update for First Quarter of FY 2016  December 2015    33  Table 18: Electric Utility CIP Project Detail (pg 2/2)     Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserves Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 UNDERGROUND REBUILDING EL‐04010 Foothills System Rebuild ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐05000 El Camino Underground Rebuild 25,124                       225,124      (25,124)           ‐              225,124       ‐                  ‐              ‐              ‐              ‐              ‐              EL‐09000 Middlefield Underground Rebuild 378,022                     407,927      (378,022)        (215,263)     192,664      67,835             ‐              ‐              ‐              ‐              ‐              EL‐09003 Rebuild UG Dist 17 (Downtown)‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐10006 Rebuild UG Dist 24 1,386,153                  1,483,524   (1,386,153)     (441,935)     1,041,589   15,443             ‐              ‐              ‐              ‐              ‐              EL‐11001 Torreva Court Rebuild ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐11003 Rebuild UG Dist 15 451,615                     452,748      (451,615)         ‐              452,748       ‐                  ‐              ‐              ‐              ‐              ‐              EL‐11004 Hewlett Subdivision Rebuild ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐              ‐              ‐              ‐              EL‐11006 Rebuild UG Dist 18 468,542                     42,955        (468,542)        (237,120)     (194,165)     23,000             ‐              ‐              ‐              ‐              ‐              EL‐11007 Rebuild Greenhouse Condo Area 26,117                       26,118        (26,117)           ‐              26,118         ‐                  ‐              ‐              ‐              ‐              ‐              EL‐16001 Underground System Rebuilt ‐                             300,000       ‐                  ‐              300,000       ‐                 300,000      300,000      350,000      350,000       ‐              EL‐11008 Rebuild UG Dist 19 98,871                       16,210        (98,871)          (78,735)       (62,525)        ‐                  ‐              ‐              ‐              ‐              ‐              EL‐12000 Rebuild UG Dist 12 9,028                          ‐               ‐                  ‐              9,028           ‐                  ‐              ‐              ‐              ‐              ‐              EL‐13003 Rebuild UG Dist 16 ‐                              ‐               ‐                  ‐               ‐               ‐                 300,000       ‐              ‐              ‐              ‐              EL‐14002 Rebuild UG Dist 20 ‐                              ‐               ‐                  ‐               ‐               ‐                 500,000      500,000       ‐              ‐              ‐              EL‐19000 Rebuild UG Dist 25 ‐                              ‐               ‐                  ‐               ‐               ‐                  ‐              ‐             50,000        500,000       ‐              EL‐16000 Rebuild UG Dist 26 ‐                             750,000       ‐                  ‐              750,000       ‐                  ‐              ‐              ‐              ‐              ‐              Subtotal, Underground Rebuilding 2,843,472                   3,704,606     (2,834,444)       (973,053)       2,740,581     106,278          1,100,000     800,000        400,000        850,000         ‐                ONGOING PROJECTS EL‐04012 Utility Site Security 274,148                     414,777      (274,148)        (118,533)     296,244      173,662           ‐              ‐              ‐              ‐              ‐              EL‐13007 Underground Dist. System Security 290,534                     290,534      (290,534)         ‐              290,534       ‐                 300,000      300,000       ‐              ‐              ‐              EL‐02011 Electric Utility GIS 300,077                     365,639      (300,077)        (27,796)       337,843      68,734            165,000      165,000      165,000      165,000       ‐              EL‐02010 SCADA System Upgrade 186,716                     176,525      (186,716)        (31,516)       145,009      50,000            270,000      60,000        65,000        65,000         ‐              EL‐89031 Communications System 107,699                     268,006      (107,699)        (3,972)         264,034       ‐                 100,000      100,000      100,000      100,000       ‐              EL‐89038 Substation Protection Improvements 169,521                     489,508      (169,521)        (47,928)       441,580      187,453          450,000      300,000      300,000      300,000       ‐              EL‐89044 Substation Facility Improvements 13,427                       245,640      (13,427)          (14,373)       231,267      17,639            195,000      195,000      195,000      200,000       ‐              EL‐98003 Electric System  Improvements 2,347,340                  2,983,288   (2,347,340)     (254,523)     2,728,765   2,720,809       2,000,000   2,000,000   2,000,000   2,000,000    ‐              Subtotal, Ongoing 3,689,462                   5,233,917     (3,689,462)       (498,641)       4,735,276     3,218,297       3,480,000     3,120,000     2,825,000     2,830,000      ‐                CUSTOMER CONNECTIONS (FEE FUNDED) EL‐89028 Electric Customer Connections 1,920,310                  3,800,000   (1,920,310)     (1,156,022)  2,643,978   366,576          3,108,000   3,219,888   3,335,804   3,455,893    ‐              Subtotal, Customer Connections 1,920,310                   3,800,000     (1,920,310)       (1,156,022)    2,643,978     366,576          3,108,000     3,219,888     3,335,804     3,455,893      ‐                GRAND TOTAL 12,878,111                 16,341,146   (12,810,513)     (3,678,895)    12,729,849   4,468,995       10,383,000   11,989,888   12,960,804   10,635,893    ‐                Funding Sources Connection Fees 1,550,000     (875,000)          1,650,000     1,650,000     1,700,000     1,700,000      ‐                Other Companies (Phone/CATV Co.) 180,000         ‐                   190,000        200,000        210,000        210,000         ‐                Other Utility Funds (Smart Grid)‐                (251,774)          600,000        600,000        2,000,000     2,000,000      ‐                Utility Rates 14,611,146   (11,683,739)     7,943,000     9,539,888     9,050,804     6,725,893      ‐                CIP‐RELATED RESERVES DETAIL 6/30/2015 (Actual) 9/30/2015 Reappropriations 9,068,111                   8,260,854      Commitments 3,810,000                   4,468,995      Utilities Quarterly Update for First Quarter of FY 2016  December 2015    34  Table 19: Gas Utility CIP Project Detail (pg 1/2)       Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserve  Fund Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ONE TIME PROJECTS GS‐09000 Gas Station 1 Rebuild ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              GS‐08000 Gas Station 2 Rebuild ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              GS‐10000 Gas Station 3 Rebuild 4                                      ‐               ‐                  ‐              4                     ‐                   ‐              ‐              ‐              ‐              ‐              GS‐11001 Gas Station 4 Rebuild ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              GS‐13003 COBUG emissions equipment ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              GS‐15001 Security at Receiving Stations 150,000                          150,000      (150,000)        (5,804)         144,196         125,000            ‐              ‐              ‐              ‐              Subtotal, One‐time Projects 150,004                           150,000        (150,000)          (5,804)           144,200           125,000            ‐                ‐                ‐                ‐                ‐                GAS MAIN REPLACEMENT (GMR) PROGRAM GS‐08011 GMR ‐ Project 18 ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              ‐              GS‐09002 GMR ‐ Project 19 526,621                           ‐              (526,621)        (68,899)       (68,899)          427,312            ‐              ‐              ‐              ‐              ‐              GS‐10001 GMR ‐ Project 20 2,311,602                         ‐              (2,311,602)     (23,297)       (23,297)          2,274,325         ‐              ‐              ‐              ‐              ‐              GS‐11000 GMR ‐ Project 21 867,159                           ‐              (867,159)        (57,006)       (57,006)          846,647            ‐              ‐              ‐              ‐              ‐              GS‐12001 GMR ‐ Project 22 295,985                          4,033,001   (295,985)        (114,891)     3,918,110      3,000               ‐              ‐              ‐              ‐              ‐              GS‐13001 GMR ‐ Project 23 ‐                                  620,650       ‐                  ‐              620,650          ‐                  3,010,000    ‐              ‐              ‐              ‐              GS‐14003 GMR ‐ Project 24 ‐                                   ‐               ‐                  ‐               ‐                  ‐                  640,000      3,100,000    ‐              ‐              ‐              GS‐15000 GMR ‐ Project 25 ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐             685,000      3,200,000    ‐              ‐              GS‐16000 GMR ‐ Project 26 ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐             678,200      3,300,000    ‐              GS‐20000 GMR ‐ Project 27 ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐             700,000       ‐              Subtotal, Gas Main Replacement Program 4,001,367                        4,653,651     (4,001,367)       (264,093)       4,389,558        3,551,284        3,650,000     3,785,000     3,878,200     4,000,000      ‐                TOOLS AND EQUIPMENT GS‐13002 General Shop Equipment/Tools 130,931                          100,000      (130,931)        (26,135)       73,865           16,936             100,000      100,000      100,000      100,000      100,000       GS‐01019 Global Positioning System 73,578                             ‐              (73,578)          (595)            (595)                ‐                   ‐              ‐              ‐              ‐              GS‐02013 Directional Boring Machine ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              ‐              GS‐03007 Directional Boring Equipment ‐                                   ‐               ‐                  ‐               ‐                  ‐                   ‐              ‐              ‐              ‐              ‐              GS‐03008 Polyethylene Fusion Equip. 29,168                             ‐               ‐                  ‐              29,168            ‐                   ‐              ‐              ‐              ‐              GS‐14004 Gas Distribution System Model 140,742                          87,690        (140,742)         ‐              87,690            ‐                   ‐              ‐              ‐              ‐              ‐              Subtotal, Tools and Equipment 374,419                           187,690        (345,251)          (26,730)         190,128           16,936             100,000        100,000        100,000        100,000        100,000         Utilities Quarterly Update for First Quarter of FY 2016  December 2015    35  Table 19: Gas Utility CIP Project Detail (pg 2/2)        Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserve  Fund Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ONGOING PROJECTS GS‐11002 Gas System Improvements 151,021                          292,669      (151,021)        (68,276)       224,393         100,557           231,913      238,870      246,036      253,417       ‐              GS‐03009 System Ext. ‐ Unreimbursed 284,821                          192,675      (284,821)        (25,651)       167,024          ‐                  198,500      204,455      210,590      216,908       ‐              GS‐80019 Gas Meters and Regulators 736,596                          344,690      (736,596)        (36,451)       308,239          ‐                  355,030      365,681      376,652      387,952       Subtotal, Ongoing Projects 1,172,438                        830,034        (1,172,438)       (130,378)       699,656           100,557           785,443        809,006        833,278        858,277         ‐                CUSTOMER CONNECTIONS (FEE FUNDED) GS‐80017 Gas System Extensions (252,428)                         950,000      252,428          (330,509)     619,491         49,731             978,500      1,007,855   1,038,091   1,069,233    ‐              Subtotal, Customer Connections (252,428)                          950,000        252,428            (330,509)       619,491           49,731             978,500        1,007,855     1,038,091     1,069,233      ‐                GRAND TOTAL 5,445,800                        6,771,375     (5,416,628)       (757,514)       6,043,033        3,843,508        5,513,943     5,701,861     5,849,569     6,027,510     100,000         Funding Sources Connection Fees 639,600        252,428            662,000        686,360        706,950        728,150         ‐                Utility Rates 6,131,775     (5,669,056)       4,851,943     5,015,501     5,142,619     5,299,360     100,000         CIP‐RELATED RESERVES DETAIL 6/30/2015 (Actual) 9/30/2015 Reappropriations 2,100,800                        2,199,525         Commitments 3,345,000                        3,843,508         Utilities Quarterly Update for First Quarter of FY 2016  December 2015    36  Table 20: Water Utility CIP Project Detail (pg 1/2)        Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserve  Fund Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ONE TIME PROJECTS WS‐07000 Regulation Station Imp. 1,116,781                   ‐              (1,116,781)    (997)            (997)              1,662,774          ‐            ‐            ‐            ‐            WS‐07001 Water Recycling Facilities 243,716                     193,358      (243,716)       (43,115)       150,243         7,244                 ‐            ‐            ‐            ‐            WS‐08001 Water Reservoir Coating 2,491,502                   ‐              (2,491,502)    (1,928)         (1,928)           1,715,670          ‐            ‐            ‐            ‐            WS‐09000 Seismic Water System 5,407,094                  241,621      (5,407,094)    (373,860)     (132,239)       2,688,222          ‐            ‐            ‐            ‐            WS‐11001 Vacuum Excavation Equip.‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐            ‐            ‐            WS‐13003 GPS Equipment Upgrade 200,000                      ‐               ‐                 ‐              200,000          ‐                     ‐            ‐            ‐            ‐            WS‐13004 Asset Mgmt. Mobile Sys. 92,163                       93,815        (92,163)         (595)            93,220            ‐                     ‐            ‐            ‐            ‐            WS‐13006 Meter Shop Renovations 46,892                        ‐               ‐                 ‐              46,892            ‐                     ‐            ‐            ‐            ‐            WS‐15004 Water System Master Plan 307,793                     231,600      (307,793)       (44,087)       187,513         90,243               WS‐08002 Emergency Water Supply 779,712                     270,083      (779,712)       (50,321)       219,762         518,849             ‐            ‐            ‐            ‐            Subtotal, One‐time Projects 10,685,653                  1,030,477     (10,438,761)    (514,903)       762,466         6,683,002            ‐              ‐              ‐              ‐              ‐              WATER MAIN REPLACEMENT PROGRAM WS‐08017 WMR ‐ Project 22 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐            ‐            ‐            WS‐09001 WMR ‐ Project 23 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐            ‐            ‐            WS‐10001 WMR‐Project 24 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐            ‐            ‐            WS‐11000 WMR‐Project 25 4,857,873                  731,786      (4,857,873)    (2,492,304)  (1,760,518)     ‐                     ‐            ‐            ‐            ‐            WS‐12001 WMR‐ Project 26 439,060                     5,926,260   (439,060)       (18,558)       5,907,702       ‐                     ‐            ‐            ‐            ‐            WS‐13001 WMR ‐ Project 27 ‐                             568,065       ‐                 ‐              568,065          ‐                    5,680,651 ‐            ‐            ‐            WS‐14001 WMR ‐ Project 28 ‐                              ‐               ‐                 ‐               ‐                 ‐                    585,107   5,851,070 ‐            ‐            WS‐15002 WMR ‐ Project 29 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐           602,660   6,026,602 ‐            WS‐16001 WMR ‐ Project 30 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐           620,740   6,207,400 WS‐19001 WMR ‐ Project 31 ‐                              ‐               ‐                 ‐               ‐                 ‐                     ‐            ‐            ‐           639,362    Subtotal, Water Main Replacement Prog. 5,296,933                    7,226,111     (5,296,933)      (2,510,862)    4,715,249       ‐                      6,265,758  6,453,730  6,647,342  6,846,762   ‐              Utilities Quarterly Update for First Quarter of FY 2016  December 2015    37  Table 20: Water Utility CIP Project Detail (pg 2/2)       Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserve  Fund Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ONGOING PROJECTS WS‐80014 Services/Hydrants 279,560                     243,080      (279,560)       (32,091)       210,989         ‐                    250,400   263,000   270,000   278,100    WS‐80015 Water Meters 444,276                     393,080      (444,276)       (175,663)     217,417        120,109            400,372   407,000   415,000   427,450    WS‐02014 W‐G‐W Utility GIS Data 239,789                     332,750      (239,789)       (83,386)       249,364        206,202            366,025   402,628   442,890   456,177    WS‐13002 Equipment/Tools 71,457                       50,000        (71,457)          ‐              50,000          8,468                50,000     50,000     50,000     50,000      WS‐11003 Dist. Sys. Improvements 183,057                     232,000      (183,057)       (42,029)       189,971        14,056              239,000   247,000   254,000   261,620    WS‐11004 Supply Sys. Improvements 93,128                       232,000      (93,128)         (37,176)       194,824        14,680              239,000   247,000   254,000   261,620    Subtotal, Ongoing Projects 1,311,267                    1,482,910     (1,311,267)      (370,345)       1,112,565      363,515              1,544,797  1,616,628  1,685,890  1,734,967   ‐              CUSTOMER CONNECTIONS (FEE FUNDED) WS‐80013 Water System Extensions (214,319)                    460,000      214,319        (259,940)     200,060        54,731              473,000   486,000   500,000   515,000    Subtotal, Customer Connections (214,319)                      460,000        214,319          (259,940)       200,060         54,731                473,000     486,000     500,000     515,000      ‐              GRAND TOTAL                    17,079,534    10,199,498    (16,832,642)   (3,656,050) 6,790,340     7,101,248         8,283,555 8,556,358 8,833,232 9,096,729 ‐            Funding Sources Connection/Capacity Fees 460,000         ‐                  473,000     486,000     500,000     515,000      Other Utility Funds (Asset Mgmt, GIS Systems) 221,833         ‐                  244,017     268,418     295,260     304,118      Utility Rates 9,929,415     (16,832,642)    8,283,555  8,556,358  8,833,232  9,096,729   ‐              CIP‐RELATED RESERVES DETAIL 6/30/2015 (Actual) 9/30/2015 Reappropriations (excl. Bond Funded) 9,793,534                    (310,908)        Commitments (excl. Bond Funded) 7,286,000                    7,101,248       Utilities Quarterly Update for First Quarter of FY 2016  December 2015    38  Table 21: Wastewater Collection Utility CIP Projects               Project #Project Name Reappropriated /  Carried Forward from  Previous Years Current Year  Funding   Budget  Amendments   Spending,  Current Year  Remaining in  CIP Reserve  Fund Commitments FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 SEWER SYSTEM REHABILITATION AND AUGMENTATION (SSR/A) PROGRAM WC‐07004 SSR/A ‐ Project 20 39,293                         ‐               ‐                   ‐              39,293            ‐                    ‐               ‐               ‐               ‐               WC‐08012 SSR/A ‐ Project 21 151,847                        ‐              (151,847)          ‐               ‐                 3,000                 ‐               ‐               ‐               ‐               WC‐09001 SSR/A ‐ Project 22 (42,912)                         ‐              42,912            (173)            (173)                ‐                    ‐               ‐               ‐               ‐               WC‐10002 SSR/A ‐ Project 23 982,263                        ‐              (982,263)          ‐               ‐                 224,253             ‐               ‐               ‐               ‐               WC‐11000 SSR/A ‐ Project 24 2,340,130                    206,084      (2,340,130)      (52,364)       153,720         2,224,520          ‐               ‐               ‐               ‐               WC‐12001 SSR/A ‐ Project 25 2,686,175                    528,246      (2,686,175)      (19,727)       508,519         2,238,570          ‐               ‐               ‐               ‐               WC‐13001 SSR/A ‐ Project 26 3,163,649                    268,014      (3,163,649)      (13,229)       254,785         2,962,292          ‐               ‐               ‐               ‐               WC‐14001 SSR/A ‐ Project 27 216,417                       3,358,133   (216,417)         (54,202)       3,303,931       ‐                    ‐               ‐               ‐               ‐               WC‐15001 SSR/A ‐ Project 28 ‐                              330,000       ‐                   ‐              330,000          ‐                   3,183,000    ‐               ‐               ‐               WC‐16001 SSR/A ‐ Project 29 ‐                               ‐               ‐                   ‐               ‐                  ‐                   340,000      3,270,000    ‐               ‐               WC‐17001 SSR/A ‐ Project 30 ‐                               ‐               ‐                   ‐               ‐                  ‐                    ‐              350,000      3,361,500    ‐               WC‐19001 SSR/A ‐ Project 31 ‐                               ‐               ‐                   ‐               ‐                  ‐                    ‐               ‐              360,000      3,462,500    WC‐20000 SSR/A ‐ Project 32 ‐                               ‐               ‐                   ‐               ‐                  ‐                   370,000       Subtotal, Sewer Rehab./Augmentation 9,536,862                    4,690,477     (9,497,569)        (139,695)       4,590,075        7,652,635         3,523,000     3,620,000     3,721,500     3,832,500      ‐                 ONGOING PROJECTS  WC‐13002 Fusion & Gen. Equip./Tools 78,132                        50,000        (78,132)            ‐              50,000            ‐                   50,000        50,000        50,000        50,000         WC‐15002 WW System Improvements 435,981                       232,000      (435,981)          ‐              232,000         196,697            239,000      246,000      253,000      260,000       WC‐99013 Sewer / Manhole Rehab. 621,917                       600,000      (621,917)          ‐              600,000         1,221,411         618,000      636,000      655,000      675,000       Subtotal, Ongoing Projects 1,136,030                    882,000        (1,136,030)         ‐                882,000           1,418,108         907,000        932,000        958,000        985,000         ‐                 CUSTOMER CONNECTIONS (FEE FUNDED) WC‐80020 Sewer System Extensions 210,275                       383,000      (210,275)         (121,482)     261,518         229,899            394,000      405,000      416,000      428,500       Subtotal, Customer Connections 210,275                       383,000        (210,275)           (121,482)       261,518           229,899            394,000        405,000        416,000        428,500         ‐                 GRAND TOTAL 10,883,167                  5,955,477     (10,843,874)      (261,177)       5,733,593        9,300,642         4,824,000     4,957,000     5,095,500     5,246,000      ‐                 Funding Sources Connection/Capacity Fees 383,000        (210,275)           394,000        405,000        416,000        428,500         Funded by Rates and Other Revenue 5,572,477     (10,633,599)      4,430,000     4,552,000     4,679,500     4,817,500      ‐                 CIP‐RELATED RESERVES DETAIL 6/30/2015 (Actual) 9/30/2015 Reappropriations 2,700,167                    (3,567,049)        Commitments 8,183,000                    9,300,642         CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR January 4, 2016 The Honorable City Council Palo Alto, California City of Palo Alto Sales Tax Digest Summary Second Quarter Sales (April - June 2015) The following files are attached for this informational report for which no action is required. ATTACHMENTS:  Attachment A: Sales Tax Digest Summary - Background and Discussion (PDF)  Attachment B: MuniServices Sales Tax Digest Summary (PDF)  Attachment C: Economic Categories and Segments (PDF)  Attachment D: MuniServices Economic News (PDF) Department Head: Harriet Richardson, City Auditor Page 2 Informational Report to the City Council BACKGROUND Sales and use tax represents about $26 million, or 15 percent, of projected General Fund revenue in the City’s Adopted Operating Budget for fiscal year 2015. This revenue includes sales and use tax for the City of Palo Alto and pool allocations from the state and Santa Clara County.1 The Midyear Financial Report shows that projected sales and use tax revenue increased to an estimated $29.2 million for fiscal year 2015. The $29.2 million includes an additional two months (i.e., 14 months) of revenue accruals. This is a one-time adjustment resulting from changes in the Government Accounting Standards Board’s rules regarding the timing for recognizing revenue. Fiscal year 2016 will reflect 12 months of sales and use tax receipts. We contract with MuniServices LLC (MuniServices) for sales and use tax recovery services and informational reports. We use the recovery services and informational reports to help identify misallocation of tax revenue owed to the City, and to follow up with the State Board of Equalization to ensure that the City receives identified revenues. We include sales and use tax recovery information in our quarterly reports to the Policy and Services Committee. The California Revenue and Taxation Code, Section 7056, requires that sales and use tax data remain confidential. Therefore, the City may not disclose amounts of tax paid, fluctuations in tax amounts, or any other information that would disclose the operations of a business. This report, including the attached Sales Tax Digest Summary, includes certain modifications and omissions to maintain the required confidentiality of taxpayer information. We share the information provided by MuniServices with the Administrative Services Department (ASD) for use in revenue forecasting and budgeting and with Economic Development for business outreach strategies. We coordinated this informational report with them. DISCUSSION MuniServices prepared the attached report (Attachment B) covering calendar year 2015 second quarter sales (April through June 2015). These funds are reported as part of the City’s fiscal year 2016 revenue. In December, ASD should receive information from the state on aggregate sales and use tax receipts for the third quarter of 2015. Following are some highlights of the sales and use tax information:  Palo Alto’s overall sales and use tax revenue (cash receipts) for the second quarter of 2015 increased by approximately $334,000, or 5.3 percent, including pool allocations, compared to the second quarter of 2014. For all Santa Clara County jurisdictions, sales and use tax revenue for the second quarter of 2015 increased by $3.8 million, or 3.9 percent, compared to the second quarter of 2014. 1 See definitions on page 3. Office of the City Auditor Sales Tax Digest Summary – Second Quarter Sales (April – June 2015) Attachment A City of Palo Alto | Office of the City Auditor | Sales Tax Digest Summary 2  Statewide, almost every region in California experienced an increase in sales and use tax revenue for the year ending in June 2015, with a one-year statewide increase of 4.3 percent.  Palo Alto’s sales and use tax revenue totaled $26.0 million for the year ending in June 2015, an increase of 1.7 percent from $25.6 million during the prior one-year period.  Excluding pool allocations and adjusting for prior-period and late payments, Palo Alto’s sales and use tax revenue for the second quarter of 2015 increased by 0.5 percent compared to the second quarter of 2014 and decreased by 0.3 percent compared to the prior year. More detailed information is shown in Attachment B. Economic Influences on Sales and Use Tax In its Economic News & Trends (Attachment C), MuniServices discusses economic influences, including national and state economic trends, employment, and auto and retail sales, that may affect the City’s sales and use tax revenue. Preliminary estimates from the California Employment Development Department show that the September 2015 unemployment rate, which is not seasonally adjusted, is 3.7 percent in Santa Clara County and 2.5 percent in Palo Alto. Economic Category Analysis MuniServices’ analysis of economic categories for the year ending June 2015 shows:  General retail comprised 38.3 percent of Palo Alto’s sales and use tax revenue, a 1.0 percent increase compared to the prior year.  Food products comprised 20.0 percent of total revenues, a 7.9 percent increase.  Construction comprised 4.0 percent of total revenues, an 87.4 percent increase.  Business-to-business comprised 14.1 percent of total revenues, a 22.7 percent decrease.  Miscellaneous/Other comprised 23.8 percent of total revenues, a 0.6 percent increase. Exhibit 1 - Comparison of Palo Alto’s Sales and Use Tax Revenue and Percent Change by Economic Category for the Year Ending June 2015 -50% -25% 0% 25% 50% 75% 100% General Retail Food Products Business to Business Construction Miscellaneous/Other Percent of Total Revenue Percent Change Attachment A City of Palo Alto | Office of the City Auditor | Sales Tax Digest Summary 3 The following chart shows sales and use tax revenue by geographical area based on information provided by MuniServices. Exhibit 2 – Palo Alto’s Sales and Use Tax Revenue by Geographical Area For the Year Ending June 2015 (Amounts include tax estimates and exclude pool allocations) DEFINITIONS In California, either sales tax or use tax may apply to a transaction, but not both. The sales and use tax rate in Palo Alto is 8.75 percent. Sales tax – imposed on all California retailers; applies to all retail sales of merchandise (tangible personal property) in the state. Use tax – generally imposed on consumers of merchandise (tangible personal property) that is used, consumed, or stored in this state; purchases from out-of-state retailers when the retailer is not registered to collect California tax, or for some other reason does not collect California tax; leases of merchandise (tangible personal property). Countywide/statewide pools – mechanisms used to allocate local tax that cannot be identified with a specific place of sale or use in California. Local tax reported to the pool is distributed to the local jurisdiction each calendar quarter using a formula that relates to the direct allocation of local tax to each jurisdiction for a given period. Examples of taxpayers who report use tax allocated through the countywide pool include construction contractors who are consumers of materials used in the improvement of real property and whose job site is regarded as the place of business, out-of-state sellers who ship goods directly to consumers in the state from inventory located outside the state, and California sellers who ship goods directly to consumers in the state from inventory located outside the state. Attachment A City of Palo Alto | Office of the City Auditor | Sales Tax Digest Summary 4 Other examples of taxpayers who report use tax through the pools include auctioneers, construction contractors making sales of fixtures, catering trucks, itinerant vendors, vending machine operators and other permit holders who operate in more than one local jurisdiction but are unable to readily identify the particular jurisdiction where the taxable transaction takes place. Respectfully submitted, Harriet Richardson City Auditor Sources: MuniServices California State Board of Equalization California Employment Development Department City of Palo Alto Fiscal Year 2015 Adopted Operating Budget Audit staff: Lisa Wehara Attachment A City of Palo Alto Sales Tax Digest Summary Collections through September 2015 Sales through June 2015 (2015Q2) www.MuniServices.com (800) 800-8181 Page 1 California Overview The percent change in cash receipts from the prior year was 4.3% statewide, 4.2% in Northern California and 4.3% in Southern California. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When we adjust for non-period related payments, we determine the overall business activity increased for the year ended 2nd Quarter 2015 by 2.9% statewide, 2.7% in Southern California and 3.2% in Northern California. City of Palo Alto For the year ended 2nd Quarter 2015, sales tax cash receipts for the City increased by 1.6% from the prior year. On a quarterly basis, sales tax revenues increased by 5.3% from 2nd Quarter 2014 to 2nd Quarter 2015. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. Excluding state and county pools and adjusting for anomalies (payments for prior periods) and late payments, local sales tax decreased by -0.3% for the year ended 2nd Quarter 2015 from the prior year. On a quarterly basis, sales tax activity increased by 0.5% in 2nd Quarter 2015 compared to 2nd Quarter 2014. Regional Overview This seven-region comparison includes estimated payments and excludes net pools and adjustments. % of Total / % Change City of Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 38.3 / 1.0 28.4 / 2.5 27.1 / 1.6 28.0 / 2.3 30.6 / 4.1 29.1 / 2.3 26.7 / 3.8 28.1 / 1.8 31.7 / 1.8 Food Products 20.0 / 7.9 20.1 / 5.8 21.4 / 6.8 17.0 / 6.0 16.1 / 4.5 21.1 / 5.6 17.0 / 5.4 18.4 / 3.6 30.8 / 4.6 Construction 4.0 / 87.4 9.2 / 6.5 9.3 / 6.8 11.1 / 6.6 11.7 / 7.7 8.1 / 7.3 10.8 / 2.8 13.0 / 5.7 9.2 / 2.2 Business to Business 14.1 / -22.7 16.8 / 2.1 19.6 / 3.7 13.8 / 1.8 13.8 / -0.3 16.7 / 0.8 16.1 / 5.5 9.2 / 5.0 6.1 / 22.3 Miscellaneous/Other 23.8 / 0.6 25.5 / 0.4 22.5 / 0.2 30.0 / 1.4 28.0 / 1.3 25.0 / -0.5 29.4 / 3.1 31.3 / -1.5 22.2 / -1.3 Total 100.0 / -0.3 100.0 / 2.9 100.0 / 3.3 100.0 / 3.0 100.0 / 3.1 100.0 / 2.4 100.0 / 4.0 100.0 / 1.8 100.0 / 3.1 City of Palo Alto State Wide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Restaurants Restaurants Restaurants Auto Sales - New Department Stores Restaurants Restaurants Service Stations Restaurants % of Total / % Change 17.8 / 7.7 14.1 / 7.3 15.1 / 7.8 12.3 / 7.3 13.6 / 2.0 15.3 / 6.9 11.0 / 8.6 12.5 / -9.2 22.1 / 5.3 2nd Largest Segment ***Auto Sales - New Auto Sales - New Department Stores Auto Sales - New Auto Sales - New Auto Sales - New Department Stores Misc. Retail % of Total / % Change *** / ***10.9 / 8.0 10.5 / 9.1 11.1 / 0.9 10.7 / 11.0 11.0 / 6.7 10.8 / 9.7 11.2 / 0.6 10.0 / 4.7 3rd Largest Segment Department Stores Department Stores Department Stores Restaurants Restaurants Department Stores Department Stores Auto Sales - New Service Stations % of Total / % Change 10.9 / -0.2 9.8 / 0.6 8.2 / 0.4 11.0 / 7.4 10.2 / 8.0 9.5 / 0.1 10.7 / 1.3 10.5 / 7.3 9.0 / -4.2 *** Not specified to maintain confidentiality of tax information CITY OF PALO ALTO ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 2nd QUARTER 2015 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 2nd QUARTER 2015 BENCHMARK YEAR 2015Q2 COMPARED TO BENCHMARK YEAR 2014Q2 Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 2 Gross Historical Sales Tax Performance by Benchmark Year and Quarter (Before Adjustments) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 BENCHMARK YEAR QUARTERLY Net Cash Receipts for Benchmark Year 2nd Quarter 2015: $25,998,149 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2015Q2 BMY is sum of 2015 Q2, Q1 & 2014 Q4, Q3) Restaurants 15% Department Stores 9% Miscellaneous Retail 8% Apparel Stores 6% Service Stations 3% Food Markets 2% Leasing 1%Recreation Products 1% All Other 39% Net Pools & Adjustments 16% Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 3 TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended 2nd Quarter 2015. The Top 25 Sales/Use Tax contributors generate 48.5% of Palo Alto’s total sales and use tax revenue. Anderson Honda Integrated Archive Systems Tesla Lease Trust Apple Stores Loral Space Systems Tesla Motors Audi Palo Alto Macy's Department Store Tiffany & Company Bloomingdale's Magnussen's Toyota Urban Outfitters Critchfield Mechanical Neiman Marcus Department Store Valero Service Stations CVS/Pharmacy Nordstrom Department Store Varian Medical Systems Eat Club Pottery Barn Kids Wilkes Bashford Fry's Electronics Shell Service Stations Hewlett-Packard Stanford University Hospital Sales Tax from Largest Non-confidential Economic Segments $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Benchmark Year 2015Q2 Benchmark Year 2014Q2 Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 4 Historical Analysis by Calendar Quarter Economic Category % 2015Q2 2015Q1 2014Q4 2014Q3 2014Q2 2014Q1 2013Q4 2013Q3 2013Q2 2013Q1 2012Q4 General Retail 30.4%2,009,743 1,797,756 2,591,589 1,994,264 2,032,155 1,791,298 2,585,931 1,945,413 1,959,201 1,759,098 2,444,528 Miscellaneous/Other 23.7%1,564,157 1,400,769 1,655,225 1,400,415 1,437,507 1,283,210 1,553,169 1,196,569 2,974,293 2,796,863 2,067,125 Food Products 17.6%1,167,014 1,061,755 1,096,087 1,054,462 1,051,681 972,997 1,009,848 950,359 966,208 882,949 905,156 Business To Business 12.6%833,370 757,827 885,327 596,226 970,762 858,119 1,268,059 848,634 800,341 592,136 1,101,068 Net Pools & Adjustments 15.7%1,039,250 968,777 1,178,482 945,653 786,945 1,013,633 1,095,801 924,963 1,227,552 1,162,968 1,155,841 Total 100.0%6,613,534 5,986,884 7,406,710 5,991,020 6,279,050 5,919,257 7,512,808 5,865,938 7,927,595 7,194,014 7,673,718 Economic Segments % 2015Q2 2015Q1 2014Q4 2014Q3 2014Q2 2014Q1 2013Q4 2013Q3 2013Q2 2013Q1 2012Q4 Miscellaneous/Other 38.6%2,549,852 2,370,361 2,906,134 2,211,697 2,577,014 2,328,959 3,184,808 2,230,000 3,943,660 3,584,353 3,451,258 Restaurants 15.8%1,045,011 942,709 962,018 936,160 940,540 870,158 890,739 833,865 845,107 771,596 782,184 Miscellaneous Retail 7.2%479,298 415,270 628,099 508,061 514,133 481,305 661,268 458,124 471,954 393,506 584,169 Department Stores 9.0%595,374 503,590 750,481 548,595 591,500 472,857 762,760 574,389 603,773 509,699 779,973 Apparel Stores 6.5%428,100 370,810 507,843 398,747 429,748 365,777 515,296 400,201 404,202 372,909 496,073 Service Stations 2.7%181,582 148,902 166,861 203,484 215,162 184,185 177,096 214,276 196,568 187,333 182,060 Food Markets 1.6%106,818 104,856 117,245 105,600 98,705 90,272 104,592 104,815 106,760 99,711 110,625 Business Services 1.8%120,003 103,773 131,505 66,163 62,060 63,768 61,832 57,139 67,759 63,791 73,619 Recreation Products 1.0%68,246 57,836 58,042 66,860 63,243 48,343 58,616 68,166 60,260 48,148 57,916 Net Pools & Adjustments 15.7%1,039,250 968,777 1,178,482 945,653 786,945 1,013,633 1,095,801 924,963 1,227,552 1,162,968 1,155,841 Total 100.0%6,613,534 5,986,884 7,406,710 5,991,020 6,279,050 5,919,257 7,512,808 5,865,938 7,927,595 7,194,014 7,673,718 *Net Pools & Adjustments reconcile economic performance to periods’ net cash receipts. The historical amounts by calendar quarter: (1) include any prior period adjustments and payments in the appropriate category/segment and (2) exclude businesses no longer active in the current period. Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 5 Quarterly Analysis by Economic Category, Total and Segments: Change from 2014Q2 to 2015Q2 Ge n e r a l R e t a i l Fo o d P r o d u c t s Co n s t r u c t i o n Bu s i n e s s t o Bu s i n e s s Mi s c / O t h e r 20 1 5 / 2 T o t a l 20 1 4 / 2 T o t a l % C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell 0.3%5.0%-8.5%18.1%-13.9%2,397,189 2,405,123 -0.3%Business Services Restaurants Service Stations Bldg.Matls-Whsle Cupertino 1.6%3.2%88.7%40.5%-13.4%6,476,742 4,850,583 33.5%Business Services Bldg.Matls-Whsle Office Equipment Service Stations Gilroy 1.0%3.1%-1.1%-2.0%7.2%3,484,029 3,391,420 2.7%Auto Sales - New Misc. Vehicle Sales Service Stations Health & Government Los Altos -5.0%8.2%-19.6%3.7%-11.7%551,023 558,317 -1.3%Food Markets Restaurants Service Stations Furniture/Appliance Los Gatos -4.8%1.3%-2.8%29.7%-11.1%1,706,078 1,751,534 -2.6%Furniture/Appliance Heavy Industry Miscellaneous Retail Service Stations Milpitas 6.8%2.6%73.5%45.6%-1.6%4,951,970 4,203,865 17.8%Office Equipment Bldg.Matls-Whsle Service Stations Bldg.Matls-Retail Morgan Hill -2.1%6.2%7.1%4.9%-1.6%1,871,550 1,849,232 1.2%Auto Sales - New Restaurants Service Stations Recreation Products Mountain View 1.3%14.5%-20.6%19.9%-9.9%3,897,695 3,706,309 5.2%Restaurants Business Services Service Stations Heavy Industry Palo Alto -1.0%7.6%110.9%-14.3%-2.4%5,574,280 5,543,984 0.5%Bldg.Matls-Whsle Restaurants Electronic Equipment Service Stations San Jose 1.1%4.5%-1.4%-3.0%-0.9%37,306,529 37,335,428 -0.1%Auto Sales - New Restaurants Service Stations Office Equipment Santa Clara -2.5%19.1%-7.4%-2.5%-0.4%11,085,824 10,954,822 1.2%Office Equipment Restaurants Electronic Equipment Furniture/Appliance Santa Clara Co.-39.5%-1.0%5.7%76.9%11.4%1,138,769 1,189,324 -4.3%Health & Government Office Equipment Miscellaneous Retail Food Markets Saratoga 34.2%9.2%60.3%54.4%-8.7%257,945 232,690 10.9%Miscellaneous Retail Restaurants Service Stations Miscellaneous Other Sunnyvale -5.2%6.7%10.7%11.5%-4.5%6,529,585 6,275,086 4.1%Electronic Equipment Bldg.Matls-Whsle Service Stations Office Equipment Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 6 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 El Camino Real 1,074,079 1,122,001 1,143,951 1,090,870 1,055,524 1,049,438 1,038,409 2,563,317 1,084,815 1,108,045 1,102,757 1,105,340 1,090,236 Town and Country 475,054 502,127 509,180 522,374 523,504 525,116 550,852 570,860 590,134 624,333 629,346 637,224 644,288 Midtown 179,250 181,352 181,654 183,780 184,646 185,301 185,348 185,472 185,910 187,120 188,251 192,122 194,028 East Meadow Area 94,868 81,598 67,124 74,680 77,869 100,045 103,590 107,316 109,171 114,419 104,735 117,701 172,602 Charleston Center 73,408 74,213 74,683 76,315 78,734 81,455 90,116 84,760 86,432 86,288 87,413 88,622 89,612 City of Palo Alto - Selected Geographic Areas of the City Benchmark Year 2nd Quarter 2015 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 El Camino Real Town and Country Midtown East Meadow Area Charleston Center *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2015Q2 BMY is sum of 2015 Q2, Q1 &2014 Q4, Q3) Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 7 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Stanford Shopping Ctr 5,281,772 5,345,618 5,388,747 5,519,326 5,501,836 5,508,513 5,637,256 5,647,210 5,685,894 5,713,169 5,726,273 5,769,236 5,775,751 Stanford Research Park 2,884,600 3,073,009 4,362,778 5,995,489 5,075,848 7,949,998 7,307,557 4,299,015 4,027,889 3,724,671 3,304,003 3,082,331 2,869,143 Downtown 3,044,755 3,047,356 3,013,183 3,007,123 3,027,279 3,022,194 3,068,553 3,108,592 3,124,224 3,189,273 3,220,248 3,251,198 3,318,323 San Antonio 2,212,977 2,103,881 2,114,306 2,047,925 1,997,654 2,106,291 2,122,586 2,234,235 2,393,463 2,453,548 2,495,915 2,504,156 2,465,311 California Avenue 999,421 1,020,704 1,034,151 1,058,098 1,072,925 1,078,153 1,104,341 1,104,237 1,109,685 1,119,047 1,120,996 1,113,385 1,108,904 City of Palo Alto - Selected Geographic Areas of the City Benchmark Year 2nd Quarter 2015 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 Stanford Shopping Ctr Downtown #REF!San Antonio California Avenue 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Stanford Shopping Ctr Downtown San Antonio California Avenue $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Stanford Shopping Ctr Stanford Research Park Downtown San Antonio California Avenue *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2015Q2 BMY is sum of 2015 Q2, Q1 & 2014 Q4, Q3) Attachment B City of Palo Alto www.MuniServices.com (800) 800-8181 Page 8 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Valley Fair 6,621,598 6,708,343 6,855,987 6,865,443 6,808,919 6,815,517 6,883,838 6,885,378 6,958,214 7,108,448 7,455,179 7,588,546 7,273,028 Stanford Shopping Ctr 5,281,772 5,345,618 5,388,747 5,519,326 5,501,836 5,508,513 5,637,256 5,647,210 5,685,894 5,713,169 5,726,273 5,769,236 5,775,751 Oakridge Mall 3,925,454 3,947,751 3,957,195 3,972,739 3,974,067 3,954,094 3,924,360 3,934,469 3,972,556 4,005,370 4,040,521 4,159,367 4,236,080 Hillsdale 2,315,120 2,381,548 2,348,668 2,367,315 2,356,855 2,367,935 2,387,185 2,374,185 2,401,370 2,438,295 2,450,278 2,494,792 2,513,866 Santana Row 1,961,561 1,867,513 1,819,616 1,795,942 1,938,742 2,156,984 1,765,101 2,453,638 2,523,193 2,525,349 2,565,665 2,634,908 2,706,867 City of Palo Alto - Regional Shopping Mall Comparison Benchmark Year 2nd Quarter 2015 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Valley Fair Stanford Shopping Ctr Oakridge Mall Hillsdale Santana Row *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2015Q2 BMY is sum of 2015 Q2, Q1 & 2014 Q4, Q3) Attachment B Economic Categories and Segments Economic Category Economic Segment Description Business to Business - sales of tangible personal property from one business to another business and the buyer is the end user. Also includes use tax on certain purchases and consumables. Business Services Advertising, banking services, copying, printing and mailing services Chemical Products Manufacturers and wholesalers of drugs, chemicals, etc. Electronic Equipment Manufacturers of televisions, sound systems, sophisticated electronics, etc. Energy Sales Bulk fuel sales and fuel distributors and refiners Heavy Industry Heavy machinery and equipment, including heavy vehicles, and manufacturers and wholesalers of textiles and furniture and furnishings Leasing Equipment leasing Light Industry Includes, but is not limited to, light machinery and automobile, truck, and trailer rentals Office Equipment Businesses that sell computers, and office equipment and furniture, and businesses that process motion pictures and film development Construction Building Materials – Retail Building materials, hardware, and paint and wallpaper stores Building Materials - Wholesale Includes, but is not limited to, sheet metal, iron works, sand and gravel, farm equipment, plumbing materials, and electrical wiring Food Products Food Markets Supermarkets, grocery stores, convenience stores, bakeries, delicatessens, health food stores Food Processing Equipment Processing and equipment used in mass food production and packaging Liquor stores Stores that sell alcoholic beverages Restaurants Restaurants, including fast food and those in hotels, and night clubs Attachment C Economic Categories and Segments Economic Category Economic Segment Description General Retail – all consumer focused sales, typically brick and mortar stores Apparel Stores Men’s, women’s, and family clothing and shoe stores Department Stores Department, general, and variety stores Drug Stores Stores where medicines and miscellaneous articles are sold Florist/Nursery Stores where flowers and plants are sold Furniture/Appliance Stores where new and used furniture, appliances, and electronic equipment are sold Miscellaneous Retail Includes, but is not limited to, stores that sell cigars, jewelry, beauty supplies, cell phones, and books; newsstands, photography studios; personal service businesses such as salons and cleaners; and vending machines Recreation Products Camera, music, and sporting goods stores Miscellaneous/Other Miscellaneous/Other Includes but not limited to health services, government, nonprofit organizations, non- store retailers, businesses with less than $20,000 in annual gross sales, auctioneer sales, and mortuary services and sales Transportation Auto Parts/Repair Auto parts stores, vehicle and parts manufacturing facilities, and vehicle repair shops Auto Sales - New New car dealerships Auto Sales - Used Used car dealerships Miscellaneous Vehicle Sales Sale and manufacture of airplanes and supplies, boats, motorcycles, all-terrain vehicles, trailers and supplies Service stations Gas stations, not including airport jet fuel Attachment C Econ omic Ne ews & Trrends ECONO MIC NEWS && TRENDS October 13, 2015 Attachment D Economic News & Trends October 13, 2015 2 www.MuniServices.com CONTENTS  Section 1 - U.S. Economy (Indicators, Outlook, Trends, Inflation Gap Between Goods and Services)  Section 2 - California’s Economy (Indicators, Revenue, Real Estate, Drought)  Section 3 - California’s Employment (Indicators, Jobs, Minimum Wage)  Section 4 - Building and Development (Commercial, Urban Growth, Mall Trends)  Section 5 - Shared Economy (Demographics)  Section 6 - On-Line Sales (Quarterly Retail Ecommerce Sales for 2nd Q 2015)  Section 7 - Services Spending (The Changing Economy)  Section 8 - Auto Sales (California Auto Outlook and 2nd Q 2015 Results)  Section 9 - Gasoline (Predictions, National Average)  Section 10 - Retail (Store Openings, Pop-Up Retail, Early Holiday Forecasts)  Section 11 - Grocery Stores (Expansions, Closures and News)  Section 12 - Restaurants (Impact on the Economy, Consumer Spending) CLIENT SERVICE TEAM Patricia Dunn (Patricia.Dunn@MuniServices.com) (Contracts) Julia Erdkamp (Julia.Erdkamp@MuniServices.com) (Client Service Manager) Mary Flynn (Mary.Flynn@MuniServices.com) (Client Service Manager) Bret Harmon (Bret.Harmon@MuniServices.com) (Client Service Manager) Doug Jensen (Doug.Jensen@MuniServices.com) (Executive Vice President, Client Services) Fran Mancia (Fran.Mancia@MuniServices.com) (Vice President, Government Relations) Brenda Narayan (Brenda.Narayan@MuniServices.com) (Government Relations/ Economic News and Trends Editor) Marina Sloan (Marina.Sloan@MuniServices.com) (Client Service Manager) Attachment D Economic News & Trends October 13, 2015 3 www.MuniServices.com SECTION 1 - U.S. ECONOMY (INDICATORS, OUTLOOK, TRENDS, INFLATION GAP BETWEEN GOODS AND SERVICES) Economic Indicators Source: The Bureau of Economic Analysis (September, 2015) Real Gross National Product (GNP) is goods and services produced: increased at an annual rate of 3.9 percent in 2015Q2; in 2015Q1, the real GDP increased 0.6 percent. Real Gross Domestic Purchases (GDP) is purchases of goods and services regardless of where produced: increased at an annual rate of 3.6 percent in 2015Q2; in 2015Q1, the real GDP increased 3.6 percent. Current-Dollar Gross Domestic Purchases (GDP) is goods and services regardless of where produced: increased by 6.1 percent in 2015Q2, in contrast to an increase of 0.8 in 2015Q1. Real Gross Domestic Income (GDI) is income earned by the production of goods and services: increased 0.7 percent in 2015Q2, compared to an increase of 0.4 percent in 2015Q1. Estimates of GDP and GDI may vary in a given quarter, but they tend to follow similar patterns of change over time. Real Personal Consumption Expenditures (PCE) is expenditures for goods and services: increased by 0.4 percent in 2015Q2, compared with an increase of 1.8 percent in 2015Q1. Economic Outlook Source: Kiplinger Economic Outlooks (October, 2015); Anderson Forecast (September, 2015); http://www.usatoday.com/story/money/business/2015/10/06/us-trade-deficit-china-japan-imports-exports/73441758/ (October, 2015) Gross Domestic Product: 2.7% in second half of 2015; 2.5% for the year Interest Rates: By end 2015, 10-year notes at 2.3%; mortgages, 4.1% Business Spending: Increasing by 4% in 2015 Housing: Single-family starts rising 12% in second half of 2015 (1.14 million units in 2015, 1.42 in 2016 and 1.44 in 2017 Unemployment: Falling to 5% by year-end Inflation: 2.5% for 2016, up from 1.5% in 2015 Retail Sales: Up 4.5% to 5% this year, excluding gasoline sales US Trade Deficit: Increased 15.6% to $48.3 billion in August. Exports of goods and services dropped 2% to $185.1 billion, while imports rose 1.2% to $233.4 billion. The drop in exports reflected lower sales of manufactured goods such as computers, industrial machinery and autos and a drop in exports of U.S. energy products, and to a stronger dollar. The Gap in Inflation Between Goods and Services May Widen Source: https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-trends/2015-economic-trends/et- 20150602-the-gap-between-services-inflation-and-goods-inflation.aspx Because goods account for the bulk of international trade, a stronger dollar keeps prices for goods lower. Sharp appreciation of the dollar over the last three quarters may push the prices of goods even lower in the next few months, widening the gap and impacting sales tax revenues (Federal Reserve Bank of Cleveland). So a strong dollar is a double edged sword that may actually hurt sales tax revenues. Attachment D Economic News & Trends October 13, 2015 4 www.MuniServices.com Trends / “Picking Up Steam and Watching the Headwinds” Source: https://beaconecon.com/archive/presentations/2015.8.5_NCSL2015Thornberg.pdf (August, 2015) Picking up steam: Slower start to year transitory; solid acceleration in domestic demand; labor markets turned a corner; worker wages about to start rising; credit expanding on many levels; asset markets/ tech is not in a bubble yet; interest rates aren’t going anywhere; commodity prices down; housing market bouncing. Watch the headwinds: State and local budgets still stressed; global economy has slowed, particularly in Asia; housing and housing policy in California; frothy markets could start becoming an issue; growing inequality/ political gridlock. What not to worry about the economy The stronger US dollar Student debt Asset bubbles Drought Consumer spending Labor markets California business Taxes Politics What to worry about the economy China Educational choices Bad financial regulation Water policy Savings rates Growing inequality California housing Lack of public investment A lack of engagement SECTION 2 - CALIFORNIA’S ECONOMY (INDICATORS, REVENUE, REAL ESTATE, DROUGHT) California Economy (Indicators) Source: Fast Facts, by the Assembly Committee on Jobs, Economic Development and the Economy (September, 2015)  California GDP: In 2014 grew from $2.2 billion to $2.3 billion; California is the eighth largest in the world, larger than Russia, Italy, India, and Canada.  Largest private industry sectors: Finance, insurance, real estate, rental, and leasing (20.2% of state GDP); trade, transportation, and utilities (12.7% of total GDP); professional and business services (12.0% of state GDP); and manufacturing (12.0% of state GDP).  Employment/ Workers: 19 million workers in the California labor force in August 2015 with 17.8 million individuals employed. A month over increase of 12,000 jobs, and represents a 425,000 (2.4%) increase in jobs over the prior year.  Employment/ Sectors: For August, 2015, non-farm employment rose in seven industry sectors: largest gains were in the government (+31,300); leisure and hospitality (+10,600); trade, transportation, and utilities (+7,900); education and health services (+3,800); financial activities (+1,600); construction (+700); and information (+300) (Source: EDD Labor Market Review, August 2015).  Per Capita Personal Income (PCPI): The population of California in 2014 was 38,802,500 (rank is 1st in the nation). In 2014, California had a PCPI of $49,985. This PCPI ranked 11th in the US and was 109 percent of the national average, $46,049. The 2014 PCPI reflected an increase of 3.9 percent from 2013. The 2013-2014 national change was 3.6 percent. In 2004, the PCPI of California was $37,244 and ranked 9th in the US. The 2004-2014 compound annual growth rate of PCPI was 3.0 percent. The compound annual growth rate for the nation was 3.0 percent. Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 5 www.MuniServices.com California’s Economic Update (Revenues) Source: Department of Finance, Finance Bulletin (September, 2015) Revenues: August year-to-date revenues are $474 million above the forecast of $13.364 billion. Preliminary agency cash for August total revenues was $108 million above the 2015-16 Budget forecast. Personal income tax: $33 million above the month’s forecast of $4.142 billion. Proposition 63 requires that 1.76 percent of the total personal income tax collections be transferred to the Mental Health Services Fund; the amount transferred in August was $1 million higher than the forecast of $74 million. Year to date revenues are $162 above the forecast. Sales and use tax: $42 million above the month’s forecast of $1.96 billion. Year-to-date, sales tax cash is $5 million above forecast. August cash includes the remaining portion of the final payment for the second quarter sales, which was due July 31. August receipts also include the first prepayment for third quarter sales. Corporation tax: $25 million below the month’s forecast of $123 million. Prepayments were $8 million above the forecast of $88 million and other payments were $24 million higher than the $93 million forecast. Total refunds for the month were double the forecast of $57 million. Year-to-date revenues are $42 million below forecast. Insurance tax: $25million above the $432 million estimated for August. Year-to-date revenues are $48 million above the forecasted $407 million. Revenues from the estate, alcoholic beverage and tobacco taxes, and pooled money interest: came in $1 million below the $37 million that was expected. California’s Employment, Homeownership, and Real Estate Economy Sources: UCLA Anderson, Beacon Economics, Department of Finance, Legislative Analyst Office Employment Forecast: Total employment growth at 2.7% in 2015; 2.2% in 2016; and 1.4% in 2017. Real personal income is estimated to be 4.6% in 2015 and forecast to be 4.5% in 2016, and 4.2% in 2017. Unemployment should drop below 6.0% through balance of 2015. Housing: Starts of 1.14 million units this year, 1.42 in 2016 and 1.44 million in 2017; home prices in California will become increasingly less affordable over the next two years, as the amount of building will not meet new demand. Rental Housing: Declining homeownership rate is a rise in renting. Multi-family housing starts, which bottomed in 2009 at 112,000 units, will exceed 400,000 in 2015; and average 460,000 units over the next two years. Homeownership: 40 percent of those born in 1960 owned a home at age 30, 27 percent of those born in 1980 did. Housing costs: 46% of renters, compared to 40% ten years ago paying more than 30% of their income on rent. Real Estate Sales: July sales of existing single-family homes increased 2.7 percent from June and 12.7 percent from July 2014 to 449,530 homes. Median Home Price: The statewide median home price in July was $488,260, down 0.3 percent from June but up by 5.4 percent from a year earlier. California’s Drought and Impact on Agriculture Source: Center for Business and Policy Research at the University of the Pacific The severe drought has had limited statewide economic costs for the past two years, reducing state GDP by about 0.1% in 2014 and 2015. Strong market conditions have more than offset water shortages for farms. The value of agricultural production increased in 2014 even though about 5% of irrigated acres were fallowed. While the broad economic impacts of the drought have been modest, the environmental and community impacts have been severe in some areas as evidenced by destructive wildfires, fish species on the brink of extinction, and thousands of dry wells. Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 6 www.MuniServices.com California's Drought / Downstream Impacts on California’s Economy Source: https://watershed.ucdavis.edu/files/biblio/Final_Drought%20Report_08182015_Full_Report_WithAppendices.pdf California's ongoing drought will cost the economy an estimated $2.74 billion in 2015 and lead to the loss of 10,000 seasonal farm jobs, despite overall health in the state's agricultural sector. Agricultural economists at the University of California, Davis, said the drought, entering its fourth year, would impact the state more in 2015 than in 2014, when the total cost to the economy was estimated to be $2.2 billion. The focus of the report is on agricultural production including crops, livestock and dairies. Products from agriculture serve as production inputs for much larger value added sectors like food processing which have a higher share in the economy. California’s Industry Impacted if China’s Economic Growth Slows Sources: CapRadio.org California Exports to China: California goods will be more expensive in Chinese markets; a weaker Chinese economy will mean less demand for California exports. Agriculture and high-tech goods are California’s largest exports to China. Apple products are made in China, but they’re shipped back to California to be sold from the United States. The Service Sector in California: More than one million Chinese tourists visited California in 2014 and spent $2.5 billion. Education in California: UC and CSU are banking on filling budget holes by enrolling more international students. International student enrollment in UC increased nearly fivefold from 2007 to 2014/2015, from 1.8 percent to 8.5 percent. SECTION 3 - CALIFORNIA’S EMPLOYMENT AND LABOR (INDICATORS, JOBS, MINIMUM WAGE) California Labor Market Indicators Source: http://www.labormarketinfo.edd.ca.gov Unemployment rate: 6.1 (August) / 6.2 (July); Drop Change -0.1 Labor Force: 19,035,200 (August) / 19,039,600 (July); Drop Change -4,400 Employment: 17,872,100 (August) / 17,859,900 (July); Increase Change 12,200 Unemployment: 1,163,100 (August) /1,179,700 (July); Drop Change -16,600 Non Farm Jobs: 16,185,100 (August) / 16,148,800 (July); Increase Change 36,300 UI Initial Claims: 181,893 (August) /214,100 (July); Drop Change -32,207 Minimum Wage Increase on January 1, 2016 Source: http://www.sacbee.com; https://beaconecon.com/products/employment_report Advocates for a statewide $15 per hour minimum wage are moving to November 2016 initiative. The Fair Wage Act of 2016 will raise the minimum wage for all California workers by $1 annually, effective January 2017. Once the minimum wage reaches $15, it will automatically go up each year to match the cost of living. The state’s minimum wage is $9 an hour and will rise to $10 on January 1, 2016. Cities will have the option of setting higher local minimum wages. Benefits: Higher wages for workers (net loss of public support services); increased local spending Cost: Higher labor costs, reduced profits & investments for businesses; reduced employment & higher costs for consumers Industry shift: High for low skilled labor substitution Low margin businesses: Small businesses in low income neighborhoods may be forced out of business Impact: Projected job loses including one third of job losses will occur for workers under 25; and for those without a high school diploma; reduced business investment, reduced educational attainment; some reduction in need for public benefits Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 7 www.MuniServices.com SECTION 4 - BUILDING AND URBANIZATION (COMMERCIAL, URBAN GROWTH, MALL TRENDS) California’s Commercial Real Estate Source: http://www.anderson.ucla.edu/media-relations/2015/allen-matkinsucla-forecast-summer-survey (August, 2015) Commercial construction activity in California has risen to its highest level since 2001. Available financing, low cap rates, an increasingly high demand from technology, advertising, media and information companies, and a shortage of multi-family housing have sparked the industry boom. The outlook for the next three years is for continued growth in commercial property development. Urbanization’s Impact Source: http://www.globest.com/reforum/69_16/national/development/Urbanizations-Impact-362240-1.html?page=4 In 2013, 2.3 million more people were living in metro areas than in 2012; 269.9 million people are living in and around cities. McKinsey & Company research concludes that urban expansion is unprecedented and could inject up to $30 trillion a year into the world economy by 2025. The Great Outdoors: Key to Success for Today’s Malls Source: http://www.globest.com/blogs/counterculture/retail/The-Great-Outdoors-The-Key-to-Success-for-Todays-Malls- 361698-1.html Mall owners and operators are beginning to understand that outdoor spaces deliver tremendous value when it comes to driving traffic and increasing length of stay. For this reason, many once-traditional indoor malls are being redeveloped and revitalized in order to add outdoor dining and socialization hubs where consumers can relax and spend time. SECTION 5 - SHARED ECONOMY (DEMOGRAPHICS) The Sharing Economy / Demographics Source: http://www.pwc.com/us/en/industry/entertainment-media/publications/consumer-intelligence-series/assets/pwc- cis-sharing-economy.pdf PricewaterhouseCoopers’ 2015 study is a snapshot of the business of sharing (automotive, retail and consumer goods, hospitality, entertainment, media and communications. Airbnb averages 425,000 guests per night, totaling more than 155 million guests stay annually, nearly 22% more than Hilton Worldwide, which served 127 million guests in 2014. Uber operates in more than 250 cities worldwide and as of February 2015 was valued at $41.2 billion, that exceeds the market capitalization of companies such as Delta Air Lines, American Airlines and United Continental. PwC’s projections show that five key sharing sectors, travel, car sharing, finance, staffing, and music and video streaming, have the potential to increase global revenues from roughly $15 billion today to around $335 billion by 2025. The study found 19 percent of U.S. adults have engaged in the sharing economy as either a buyer or a seller. 1 in 4 sellers are over 55. A recent Airbnd company survey found that among the hosts who are 50-plus, about half of them rely on their Airbnb income to make ends meet, and more than 30 percent say hosting helps them afford to stay in their homes. The hosts set their own rates. The typical hosts over age 50 earn about $7,500 a year from renting out their property through the site. Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 8 www.MuniServices.com SECTION 6 - ON-LINE SALES (QUARTERLY RETAIL ECOMMERCE SALES FOR 2ND Q 2015) Quarterly Retail E-Commerce Sales / 2nd Q 2015 Source: http://www.census.gov (CB15 - 133)  Estimate: Adjusted for seasonal variation, but not for price changes, was $83.9 billion, an increase of 4.2 percent (±0.9%) from the first quarter of 2015.  Total retail sales: Estimated at $1,171.5 billion, an increase of 1.6 percent (±0.2%) from the first quarter of 2015.  Increase in estimates: Increased 14.1 percent (±1.1%) from the second quarter of 2014 while total retail sales increased 1.0 percent (±0.4%) in the same period.  E-commerce sales: Accounted for 7.2 percent of total sales.  Not adjusted basis: Totaled $78.8 billion, an increase of 5.1 percent (±0.9%) from the first quarter of 2015. The second quarter 2015 e-commerce estimate increased 14.4 percent (±1.1%) from the second quarter of 2014 while total retail sales increased 0.9 percent (±0.4%) in the same period. E-commerce sales in the second quarter of 2015 accounted for 6.6 percent of total sales.  Next release: 3Q2015 Quarterly Retail E-Commerce sales estimate is released 11.17.15 SECTION 7 - SERVICES SPENDING (THE CHANGING ECONOMY) The Changing Economy - Gap Between Goods and Services / Expect Proposed Legislation in 2016 “Don’t Be Fooled – Services Should Be Subject to Sales Tax” an article in Tax Analysts by Deputy Publisher David Brunori captures a national perspective on the issue are reasons why services should be subjected to tax. Foremost, the sales tax should fall on all final consumption preferably at a very low rate and everything we buy should be subject to tax.  There is no economic or tax policy reason to tax the purchase of a toaster oven, but exempt the purchase of a haircut or accounting service. They’re both consumption.  Exempting services narrows the base and results in higher taxes on everything else.  Exempting services creates a government-led incentive to spend money on services over things that are taxable. The tax laws shouldn’t be used to mess with markets in that manner.  Taxing services would make the system less regressive; rich people buy more services than poor people.  The exemption in a service-dominated economy is very expensive. The Wall Street Journal cited of the change for related products and services for the five years ended in May 2015:  Television set (-57.7); cable / satellite service (13.7)  Bottle of wine @ home(-0.6); bottle of wine @ restaurant (12.0)  Men’s suits and coats (-3.7); dry cleaning (9.2)  Household cleaning products (0.3); household domestic service (7.8)  Stationary (-1.4); postage for mail delivery (19.2)  Sports equipment (-15.3); tickets to sporting event (17.3) Senator Hertzberg introduced SB 8 in 2015 to broaden the tax base by imposing a sales tax on services. This bill did not allow an increase sales tax on services for local voter-approved district taxes and did not lower the sales tax rate. The discussion and action on a bill is expected to continue during the 2016 Legislative Session. Although MuniServices has not seen draft language we are told a proposal would be comprehensive, capturing most services. Assuming there is no rate decrease a proposal would is expected to raise over $120 billion a year. Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 9 www.MuniServices.com SECTION 8 - AUTO SALES (CALIFORNIA AUTO OUTLOOK AND 2ND Q 2015 RESULTS) California Auto Outlook/ 2nd Q 2015 / Released August 2015 Source: http://www.cncda.org/CMS/Pubs/Cal%20Covering%202Q%2015%20Ver%202.pdf New Car Registrations: New light vehicle registrations exceeded one million units during the first six months of 2015 and improved 11.5 percent versus the first half of 2014. The market was up 105 percent from the recession low-point in 2009. Reasons: Strong consumer affordability, pent-up-demand, and the impressive array of advanced technologies being offered on new cars and trucks boost the state’s new vehicle market. Forecast: The momentum should continue into 2016, as well. Registrations for all of this year are expected to approach two million units, with another increase likely in 2016. Trends in the State Market  The top 15 selling brands: Jeep, Subaru, Mazda, Lexus, Chevrolet, and Mercedes had the biggest percentage increases during the first six months of 2015  Passenger car registrations: Increased 7.3 percent in the first half of this year, while market share fell 2.3 points  Light truck registrations: Improved 18.4 percent; used vehicle registrations increased by less than one percent  Car Registrations: Used registrations were up 0.9 percent in the first half of this year, versus a year earlier. The new vehicle market continued to post larger percentage gains. New registrations increased 11.5 percent so far this year. New vehicle registrations have remained well above six-year old used registrations. Used car registrations were up 0.9 percent, while light trucks increased 0.8 percent. Korean brand used registrations improved 17.8 percent. The three year old or newer market was up 13.8 percent, while the four to six year old market fell 6.6 percent.  Tracking the used car vehicle market: Franchised dealership share use vehicle market remains above 20 percent Hybrid and Electric New Vehicle Registrations Year 2011 2012 2013 2014 2015 YTD Hybrid Registration 58,563 94,878 11,692 115,544 56,117 Plug-In Hybrid Registration 1662 14,103 20,633 29,949 12,022 Electric Registration 5,302 5,990 21,912 29,536 16,930 Market Share Toyota 20% (Toyota, Lexus, and Scion), Honda 12.4% (Honda and Acura), Ford 10.5% (Ford and Lincoln), GM 10.0% (Buick, Cadillac, Chevrolet, and GMC), Nissan 9.1% (Nissan and Infiniti), Hyundai 7.8% (Hyundai and Kia), FCA 6.5% (Chrysler, Dodge, Fiat, Jeep, and Ram), VW 4.9% (Audi, Bentley, Volkswagen, and Porsche), BMW 4.5% (BMW, Rolls Royce, and MINI), MB 3.9% (Mercedes Benz and smart), Other 9.4% (all other brands). Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 10 www.MuniServices.com SECTION 9 - GASOLINE PRICES (PREDICTIONS, NATIONAL AVERAGE) California Gas Could Reach $4 a Gallon in Month Source: http://www.mercurynews.com/bay-area-news/ci_25115475/california-gas-could-reach-4-gallon-month The prediction: Energy experts predict a 50-cent rise in prices as supplies tighten, an annual event as refineries scale back production for maintenance, The record: Even the high end of the prediction is far below the record $4.67 a gallon set in California on October 9, 2012, following a fire at the Chevron refinery in Richmond and pipeline disruptions between Northern and Southern California. Big price spikes this time of year are common. National average: Last year the national average jumped 49 cents from Jan. 1 to Feb. 27, peaking at $3.79. In 2012 pump prices surged 66 cents from the same date to a peak of $3.94 on April 5. In 2011 prices soared 91 cents to a peak of $3.98 on May 5. But over the course of the year, prices may stay relatively low. Crude oil: The Federal Energy Information Administration reports that crude oil will average $93.22 a barrel in 2014, 11 cents less than the September outlook. SECTION 10 - RETAIL NEWS (STORE OPENINGS, POP-UP RETAIL, EARLY HOLIDAY FORECASTS) Retailers Raise Number of Store Openings Planned for the Next Two Years Source: http://nreionline.com, September 29, 2015 Nationwide, there were 42,554 stores on the board for the next year and 79,655 stores on the board for the next two years to open as per the National Retailer Demand Monthly. Top: Subway, Dollar General, Five Guys Burgers and Fries, Family Dollar and Pizza Hot taking the top spots. Expansion in store openings: The top four include entertainment, crafts, childcare/learning centers and restaurants. Shrinkage in store openings: Toy stores, laundromats, book stores and car care and car service establishments. Pop Up Retail Stores Source: http://www.inquisitr.com, September 25, 2015 There are many types of pop-up stores and they range from the modular retail establishments up to those that are housed in shipping containers. Impact on the economy: Pop-up stores spur spontaneous purchases, because the temporary nature of pop-up stores creates a good sense of urgency among the customers to purchase what they want. Unlike the traditional retail establishments, these types of stores have presented themselves as the limited edition. A Case that Costco and Other Warehouse Clubs have Transformed Retail More than Amazon Source: www.washingtonpost.com From the arrival of e-books and digital music in the 1990’s to the recent explosion of online subscription services such as Stitch Fix or Birchbox, it’s easy to see just how dramatically e-commerce has changed our shopping routines. There’s a shopping trend that has had a transformative effect on the retail industry during the last two decades: The rise of Costco, Sam’s Club and other warehouse clubs. A University of Chicago study on how the structure of the retail sector has changed over the last 15 to 20 years, and, in a new National Bureau of Economic Research working paper, make the case that warehouse clubs have had a greater effect on the retail landscape than e-commerce. Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 11 www.MuniServices.com Retail Stores Source: www.plainvanillashsell.com (July, August, September and October) Macys: Closing up to 40 stores American Apparel: Filed for bankruptcy protection Dollar Store: Entering new markets and adding new locations Uniqlo: Reducing expansion from a goal to open 15 new stores to five, for a total of 44 Costco: To build 32 new stores in the U.S. and abroad Herman Miller: Will open 6 Design Within Reach stores in fiscal 2016; the first two will open in Scottsdale and Berkeley Quiksilver: Closing 27 stores including three in Orange County Forever 21: Contemplating downsizing some of its biggest stores, according to people familiar with the matter. Goodwill: Going upscale with boutiques; currently in Orange County; 60 stores nationwide Stein Mart: 9 new store openings fall of 2015; new sites planned for 2016 DSW Inc.: Plans the opening of 22 new stores in the fall of 2015; including California locations H&M: Expanding Collection of Style line with 27 new stores globally, including in the U.S, specifically in Costa Mesa Staples/ Office Depot: Staples will acquire Office Depot which is on track to close by the end of 2015 Sportsman's Warehouse: Expanding to four new retail locations including Rohnert Park Holiday Spending/ Forecasts (ShopperTrak, Deloitte and AlixPartners) Source: http://www.cnbc.com/2015/10/05/holiday-spending-forecasts-the-real-story.html (October 10, 2015)  According to PwC's survey, which polled more than 2,000 consumers and 230 retailers and manufacturers between July and August, shoppers plan to spend on average $1,018 during the holidays.  Retailers should brace themselves for another year of tepid growth, predicting slower sales growth than in 2014.  67 percent of shoppers with an annual income of less than $50,000 indicate they plan to spend the same or less than they did in 2014, compared to 64 percent of those making $50,000 or more.  Consumers who earn at least $50,000 will spend on average $1,331 which is double that of the $681 shoppers who earn less than $50,000 plan to spend.  Millennials are the "retail prize" this holiday season, with 47 percent of consumers between 18 and 34 planning to spend more. That compares to 25 percent of older shoppers.  Much of the $63 billion that PwC estimates millennials will spend this year won't go toward traditional holiday categories like apparel or consumer electronics. Instead, the group plans to spend 52 percent of its holiday dollars on experience-related purchases including travel and entertainment, compared to 39 percent of older shoppers. Holiday Spending/ Forecasts (National Retail Federation) Source: http://www.philly.com/philly/business/retail/20151009_National_retail_trade_group_predicts_slight_decline_in_holiday_s eason_sales.html (October 9, 2015)  NRF reports holiday-season sales are forecast to increase 3.7 percent  Online sales on mobile devices are expected to rise 6 percent, up from last year's 5.8 percent gain  Retailers to hire about 750,000 seasonal workers nationwide, up from last year's 715,000 Attachment D ECONOMIC NEWS & TRENDS October 13, 2015 12 www.MuniServices.com SECTION 11 - GROCERY STORES (EXPANSIONS, CLOSURES AND NEWS) Expansions, Closures and News Source: http://www.theshelbyreport.com Fresh & Easy: Closing 14 stores in Southern California (Fountain Valley, Lake Forest, Seal Beach, San Diego and Los Angeles) Fresh Market: Pulled out of Southern California Sprouts: Opening 12 locations including areas in California (Alhambra, Los Angeles and San Clemente, Clovis and Oakland) Hagen: Will sell 36 stores in California and Nevada (Smart and Final and Gelsons expected to purchase) Smart & Final: Plans to open 100 new stores over the next four years; includes its "Extra!" and "Cash & Carry" formats Grocery Outlet Bargain Market: Plans to open 14 stores in the greater Los Angeles area beginning in December; the goal is to open 20 to 30 stores each year in Southern California over the next several years Aldi’s: In March 2016 will open in Southern California Dash In’s: Adding six to 10 new stores per year over the next several years Whole Foods: Laying off about 1,500 employees; will stop selling goods made by prison labor by April 2016, if not sooner SECTION 12 - RESTAURANTS (IMPACT ON THE ECONOMY, CONSUMER SPENDING) Impact on the Economy and Consumer Spending Source: http://www.businessinsider.com/average-american-family-is-going-to-be-700-richer-this-year-and-thats-good- news-for-the-economy-2015-10 For most Americans, trying to cut back on bills involves a mix of discipline and sacrifices. Drivers around the country have been getting a reprieve due to falling gas prices. It’s been estimated that in 2015, Americans will save about $700 from the dip. According to the J.P. Morgan Institute, Americans spend about 80 cents for every dollar they’ve saved. They’re going out to restaurants, which accounted for nearly 20 percent of gas savings, shopping for clothes, and buying groceries, electronics, and appliances. David’s Tea: Has a current base of 168 stores and North American potential for 550 stores Dave & Buster’s: Plans to have added eight to nine new locations this year, an increase of one unit from earlier projections Del Taco: To expand in Central California by 27 stores McDonald's Corporation: Cutting 225 jobs; more than half of them at the company headquarters in Illinois Slapfish: A Huntington Beach-based fast-casual seafood restaurant opened at Los Angeles International Airport; expansion in 2015 includes both franchise and corporate locations including Orange County LaBoulange: In mid-June announced by Starbucks the closing of 23 stores Planet Fitness: Continues to expand, adding 38 new locations Attachment D City of Palo Alto (ID # 6477) City Council Staff Report Report Type: Informational Report Meeting Date: 1/11/2016 City of Palo Alto Page 1 Summary Title: Homelessness Activities Title: Addressing Homelessness in Support of a Healthy and Safe Palo Alto From: City Manager Lead Department: City Manager Recommendation This report is provided for City Council information only at this time, and provides an overview of current City activities related to homelessness and upcoming Council agenda items on the topic. Executive Summary The beginning of winter provides a tangible reminder of the ongoing needs of the unhoused members of our society. This report provides a summary of existing winter shelter programs. At the same time, recognizing that homelessness is a year-round issue, this report also discusses ongoing programs and options for additional resource allocation. Within the next two months, Council will have the opportunity to discuss several related issues: • HSRAP funding allocation • Countywide Plan to End Homelessness • Cities Association request to support a resolution from the County’s Housing Services Task Force, and to join the “All the Way Home Campaign.” This report provides background information that should be helpful to the Council in considering these items. Staff anticipates bringing back to Council a broader discussion on the City’s role and available resources to assist in homelessness issues in the months ahead. Discussion The Santa Clara County Office of Supportive Housing takes the lead on cold weather shelters in the County1. 1 More information can be found at the county webpage https://www.sccgov.org/sites/oah/Pages/Office-of- Affordable-Housing.aspx. City of Palo Alto Page 2 In North County, a shelter at the former Onizuka Air Force Station in Sunnyvale is expected currently to provide 100-125 additional beds through March 31st. Beds at the Shelter will be on a referral only basis by North County Homeless Services Agencies, meaning that an individual has a bed for a three month period. However if someone does not arrive by 7pm, their spot will be given away that night for a walk in. This facility provides a 100-person capacity and increases to 125 during inclement weather, defined as: • A forecasted overnight low of 38 degrees or lower with a probability of rain less than 50%; or • A forecasted overnight low of 42 degrees or lower with a probability of rain of 50% or greater. The County of Santa Clara is providing financial support to agencies to increase their capacity for additional cold weather spots for the same period as the main shelter. These beds will also be on a referral basis, and locally include Hotel de Zink – Palo Alto Rotating Church Shelter operated by Inn Vision Shelter Network – increase of 5 spots beds or 20 in total, and Project WeHope – East Palo Alto - increase of 20 spots beds. Warming centers are also available throughout the county. In Palo Alto, the Opportunity Center serves as a “warming center station” for Palo Alto during regular hours of operation of Monday-Friday, 8am – 4pm. See attached for full program information on the North County Cold Weather Shelter Program. The City was recently asked by County staff if we could open the Cubberley Community Center as a shelter during periods of inclement weather this winter. In light of incompatibility with other uses at Cubberley and the surrounding neighborhood, City staff responded that we would not recommend City Council approval. Current and Recent Year-Round Efforts Recognizing that our long-term societal goal is to minimize the causes and effects of homelessness, the City of Palo Alto as with other communities worldwide has employed various strategies to address this vexing problem. At this time, there are estimates of 100-400 unhoused individuals in Palo Alto, representing a significant increase over prior years. The 2015 bi-annual Santa Clara County Homeless Point in Time (PIT) Count taken in February 2015 lists Palo Alto’s homeless count as 219 (prior counts are: 2011 – 151, 2013 – 157.) Some of this increase is believed by some to have resulted from closure of the Sunnyvale armory and “the Jungle” encampment in San Jose just before the PIT count was taken. Causes and effects of homelessness are varied and debated. Clearly this can be a public health issue, impacting individuals and the community with physical and mental health dimensions. In some cases, public safety concerns are also present. City of Palo Alto Page 3 The City currently supports several organizations that provide direct services to homeless individuals. Resources currently deployed includes roughly $600,000 per year, primarily to the Downtown Streets Team, with smaller amount contributions to Momentum for Mental Health, InnVision Shelter Network and Peninsula HealthCare Connections. Through a separate collaboration with the County, Peninsula HealthCare Connections – New Directions, the City’s support is also providing one case manager and related expenses ($125,000/year for two years) through June 2016. At this point, 810 people have been housed, with 7 more currently in the housing search process aidded by the case manager. In addition, Avenidas and City staff are in discussions about increasing services to senior homeless individuals. The City has recently experienced an increase in senior homeless persons who often spend time in Cogswell Plaza. The City has requested that Avenidas consider, as part of its partnership with the City, additional provision of services to the homeless. Avenidas has agreed to discuss. Staff believes that overall these services are productive and working for a majority of affected individuals. However, these services are not effective for individuals with severe substance abuse and/or mental health issues. Further, there are a small number of individuals (estimated by PAPD at less than 20) who generate a large number of the quality of life and property crime problems in the downtown area. To address this latter segment, the Police Department’s 54-person Special Enforcement Detail is tasked with ongoing enforcement. This has resulted in issuance of 500 citations and execution of approximately 150 bench warrants over the past year. The City Attorney’s Office is responsible for prosecuting violations of the Palo Alto Municipal Code. Over the past year, the Office has taken a more hands on role in this area, replacing outside counsel with a staff attorney, who is typically in court at least once a week on these issues. Enforcement approaches have been frustrating for all involved, with limited ability to compel compliance, given that jails are full and early release routine and an expensive bench warrant system for individuals that fail to appear. Downtown businesses have similarly expressed frustration with the City’s limited ability to effectively address conduct (Code violations) that they see as a threat to business. While the criminal justice system is a necessary component of a multi-faceted approach to address community health and safety, it is limited in its ability to address fundamental issues that contribute to quality of life challenges downtown and throughout the community. Further Addressing Both Ends of the Spectrum of Needs Clearly this is a complex and regional issue, one for which the City has considered and pursued numerous strategies over time. On a County wide basis, key resolutions have been forwarded for consideration of City support on addressing homelessness. City of Palo Alto Page 4 1) County Plan to End Homelessness in Santa Clara County – 2015-2020 – Lead Agency – Destination Home - a public-private partnership. Through a Collective Impact Approach, the Plan was created as a community-wide roadmap to end homelessness for the next five years, and is proposed to guide government, nonprofits and other community members as they make decisions about funding, programs, priorities and needs (Tentative Council Date 1-25-16) Santa Clara County Housing Task Force Recommendations In November, the Santa Clara County Cities Association received an update from the SCC Housing Task Force (HTF) and a request from Cities Association President/HTF Member Jason Baker to support a Resolution declaring homelessness a crisis and a call to action on the implementation of affordable housing funding strategies as an effort to prevent homelessness and ensure coordinated efforts countywide. It also received a request for cities to join the Santa Clara County and City of San Jose “All the Way Home Campaign” - matching homeless veterans with housing units. A fact sheet is attached with more information. Other specific strategies have been suggested, such as pay-for-success grant funding models and motel vouchers for families with minors, as well as operational practices such as the availability of public restrooms and other facilities. Next Steps In all likelihood, undertaking a meaningfully greater role will require some additional program management resources within the City. Given the range of strategies involved, the City’s current decentralized services in related areas could thereby be better coordinated and focused on gaps between services. This would accompany direct services, such as case managers dedicated to specific segments of the population. Staff is currently formulating options and recommendations on how to respond, and expect to be looking at some near term (mid-year or FY 17 Budget) proposals to support our efforts. Attachments:  ATTACHMENT A: Homeless Veterans Fact Sheet (PDF) 1 Source: Santa Clara County Point-In -Time Census and Survey Comprehensive Report 2015, https://www.sccgov.org/sites/opa/nr/Documents/SantaClaraCounty_HomelessReport_2015_FINAL.pdf Homeless Veterans in Santa Clara County There are currently 703 homeless veterans in Santa Clara County, 683 are single and 20 are living in families. Females comprise 13% of single homeless veterans and 65% of homeless veterans in families. 314 veterans are considered chronically homeless, which is 46% of the homeless veteran population. Only 37% of homeless veterans are sheltered, with 63% unsheltered. 71% of homeless veterans were living in this county when they most recently became homeless. Additionally, 8% were in a hospital or treatment facility just prior to becoming homeless and 23% are experiencing homelessness for the first time. Many U.S. veterans experience conditions that place them at increased risk for homelessness, including higher rates of Post-traumatic Stress Disorder (PTSD), Traumatic Brain Injury (TBI), sexual assault and physical disability. Veterans experiencing homelessness are more likely to live on the street than in shelters and often remain on the street for extended periods of time. 1 About the Campaign The “All the Way Home” campaign is targeted at ending veteran homelessness. The City of San Jose, the County of Santa Clara, the Housing Authority of the County of Santa Clara and Destination: Home are collaborating to address this community crisis. It is inspired by First Lady Michelle Obama’s 2015 Mayors Challenge to End Veteran Homelessness, in partnership with the Veteran’s Administration and Housing and Urban Development (HUD). The campaign will work with landlords and apartment owners to increase access to rental units for homeless veterans and their families. Outreach will also be made to corporations and faith based groups to aid with land acquisition, housing development, access to rental units, financial assistance and services. Funding Committed to End Veteran Homelessness The City of San Jose will be committing up to $6 million for new housing opportunities that could serve more than 100 veterans. Recently, the Board of Supervisors authorized an additional $1.5 million a year in housing and services for homeless veterans. The Housing Authority annually has up to $7.445 million available through Veterans Affairs (federally supported) Supportive Housing (VASH) Vouchers. The Need Santa Clara County has one of the most expensive rental markets in the nation. With vacancy rates at an all time low, we need our community partners to work with us to match veterans with housing units, ensuring that we are able to bring them All The Way Home. The Housing Authority estimates that $3.835 million of our VASH funding eligibility of $7.445 million (51.5%) will not be spent due to the inability of our veterans to be able to rent an apartment. The Campaign is actively seeking partner landlords who will rent vacant units to homeless veterans. In exchange, the veteran’s rent will be subsidized through the federal or local government. Contact information If you are interested in being involved in the “All the Way Home” campaign to end veteran homelessness or have questions about the campaign, please contact colleen@destinationhomescc.org. FACT SHEET: HOMELESS VETERANS IN SANTA CLARA COUNTY Homeless Veterans 37% 63% 0 20 40 60 80 Sheltered Veterans Unsheltered Veterans 0 50 100 59% Psychiatric or Emotional 53% Physical Disability 44% PTSD 53% Chronic Health Issues 18% Traumatic Brain Injury Health Conditions Among Homeless Veterans Homeless Veterans CITY OF PALO ALTO OFFICE OF THE CITY CLERK January 11, 2016 The Honorable City Council Palo Alto, California Independent Police Auditor's Second Report - 2014 Attached you will find the Independent Police Auditor's Second Report - 2014. ATTACHMENTS:  Attachment: PAPD FINAL 12 29 15 (2nd rpt 2014) (PDF) Department Head: Beth Minor, City Clerk Page 2 1 OIR GROUP www.oirgroup.com INDEPENDENT POLICE AUDITOR’S SECOND REPORT - 2014 Presented to the Honorable City Council City of Palo Alto January 2016 Prepared by: Michael Gennaco and Stephen Connolly Independent Police Auditors for the City of Palo Alto Michael.Gennaco@oirgroup.com Stephen.Connolly@oirgroup.com 2 I. Introduction This is the second of two reports covering the eighth year in which the Independent Police Auditor (“IPA”) has monitored the internal review processes of the Palo Alto Police Department (“PAPD”). It primarily covers activity from the second half of 2014, including complaint investigations, internally generated misconduct investigations, and reviews of two different Taser deployments. The report features discussion of four allegations of misconduct that were investigated internally by the Department and completed within the audit period, with the exception of one case that was completed earlier in 2014 but not included in our last report.1 That case involved a female arrestee who had raised three different allegations against the Department that related to her initial time in custody. Another case related to a female driver who was stopped for speeding on her way to urgent care for medical treatment; she questioned the officer’s timing and decision-making in giving her a citation under the circumstances. Two other cases involved bicyclists who took issue with being stopped. One received a citation, the legitimacy of which he questioned. The other did not, but found it curious that he had been stopped at all given the officer’s alleged comments to him about the rationale. As with our prior reports, the IPA reviewed the completed case materials with an eye toward the thoroughness and legitimacy of the investigations, and the potential for systemic reforms. As discussed below, we concurred with the discipline-related “bottom line” outcomes in each of the above cases – only one of which resulted in a finding that policy had been violated. This was one component of the female arrestee’s three-part complaint. On the whole, the Department did a creditable job of taking misconduct allegations seriously, investigating them thoroughly, and responding appropriately. We did, however, also note several elements within those cases that prompted questions or recommendations for the Department. These concerned the potential strengthening of investigative or substantive protocols, and are detailed below. The Department also had two different Taser deployments during this time period. The IPA found the Taser activations to be consistent with relevant Department policies for use of the device. However, in one of the cases, we found several aspects of the incident that seemed to warrant further attention from a training and tactical perspective. 1 The Department had completed the case and provided the materials in a timely fashion to the IPA for review. The omission from our previous report was inadvertent. 3 II. Case Reviews Case # 1 Factual Overview: This incident, from the fall of 2013, began in the early-morning hours with the arrest of two individuals under separate circumstances, about twenty minutes apart. The first was a male who was taken into custody for a probation violation after attempting to flee from a PAPD officer. The second, who eventually became the complainant, was a female who was suspected of being involved in an assault at a bar. According to the police report, the female had allegedly thrown a glass at another patron and was escorted out by private security, at which point responding officers arrested her. She had been drinking, and by all accounts (including her own) she was somewhat intoxicated. After she was handcuffed, and as she was being escorted to a car for transport by Officer A, she abruptly fell and hit her head on the ground. Paramedics responded, but she declined treatment and was eventually placed in the back seat of Officer B’s radio car. According to the police report, after being transported separately to the station, the male and female suspect eventually both ended up in the back seat of Officer B’s car for the trip from the station to the jail. They were still handcuffed and seat belted, but the car lacked any sort of partition to separate the two arrestees from each other. Palo Alto has police cars that record activity that occurs in the back seat during transport of arrestees. The police report indicated that during the trip to the main jail (which lasted approximately twenty-five minutes), there were at least two instances in which the male suspect slid closer to the female suspect and twisted his body so as to contact her breast with his elbow. He also apparently touched her with his (cuffed) hands on different occasions, though this was difficult to verify from the recording. The recording indicates that the female, who was groggy and appeared to doze off intermittently, repeatedly admonished the male to stop touching her, and spoke to Officer B in an effort to get his help. Each time, though, the male had moved away, and the female was not verbally specific about the nature of the touching that was occurring.2 The officer ended up taking no action apart from a few spoken directions to the male passenger. Once they had arrived at the jail and were going through the intake process, the female did specifically mention that the male had been touching her breasts. This initiated an investigation into what had happened, which included questioning of the male suspect and 2 The IPA had the opportunity to review various recordings from the in-car video system, as is standard in its monitoring of cases. While the female’s words and actions make it clear that she is aware of what the male is doing in the backseat and is bothered by it, her overall manner appears to reflect annoyance or irritation, as opposed to fear or agitation. However, at one point, she does say, “That’s sexual harassment. Hey, this guy is touching me.” 4 review of the tape. (This led to an additional police report and charges against the male for battery; he was later convicted of that crime.) Meanwhile, according to the police report, because of her earlier head injury, jail staff refused to accept the female, and Officer B ultimately transported her to the hospital for treatment. Several days later, the female came to the PAPD to make a formal complaint. First, she asserted that her fall and subsequent injury was the fault of Officer A, who was “pulling on” her arm as he escorted her to the radio car. Second, she believed it was improper for her to have been placed in the backseat of the car with the male arrestee who molested her during the drive. Finally, she felt that Officer B, who was driving the car, had been inadequately responsive to her requests for help as she reacted to the other suspect’s battery of her. Outcome and Analysis: The Department conducted a thorough investigation of the complaint, and analyzed the individual components carefully in arriving at policy and disciplinary determinations. It ultimately concluded that Officer A was not culpable for the fall that caused the complainant to injure her eye. It determined that the transport to the main jail in the back seat, which resulted in her being contacted sexually by the male suspect, was inappropriate and should not have occurred; it found the responsible supervisor had violated Department policy in authorizing the dual transport. Finally, it found that Officer B, who was driving the car, had not fallen below appropriate standards of care and attentiveness. As discussed below, the IPA concurs with these findings, though all three of the decisions were arguably “close calls” for different reasons. It also recognizes that the Department’s actions in responding to the complainant’s allegations of sexual harassment/battery, once they became understood at the jail, were swift and appropriate: a report detailing the male suspect’s actions was completed within hours, and was sent for prosecutorial review. Finally, the IPA believes the Department made appropriate gestures toward addressing the issue systemically on a “going forward” basis – though we also recommend further consideration of possible policy amendments. Allegation of Causing Fall: The complainant’s contention was that the escorting officer caused her to fall and injured her eye by pulling on her arm aggressively as she walked with him, in handcuffs. The fall did, in fact, occur. However, the notion that it was Officer A’s fault was not conclusively supported by the surveillance camera that depicted the incident. Instead, she seems to have very suddenly tangled feet with the officer before falling quickly. She was turning away from him at the time, perhaps to talk to a bystander. She herself seemed initially unsure about what had happened, and only began to blame Officer A after another person at the scene suggested he had been to blame. The suspect’s level of intoxication and her high heels as factors may have contributed to her unsteadiness. This is both accurate and relevant, and speaks to the lack of improper intent on 5 the part of the escorting officer. Arguably, though, it also suggests that he should have been more attentive as he led her to the car, to the extent her precariousness made a fall more foreseeable than it normally would have been. However, considering the totality of the circumstances surrounding this sudden and unfortunate accident, we find PAPD’s disposition of this aspect of the complaint to be reasonable. Similarly arguable is the failure to take the suspect to the hospital for medical clearance prior to bringing her to the station (and ultimately, to jail). According to the police report, though paramedics were summoned to the scene to treat her, she refused treatment because of concerns about the cost. Nonetheless, the decision-making PAPD supervisors could have overridden her preference in order to make sure that her head injury was adequately addressed. The choice to proceed without a hospital stop was not egregious – it appears to have been given some consideration, and her injury was not so obviously significant as to require the opposite outcome. Furthermore, the suspect’s reluctance to go to the doctor because of financial concerns was adamant and persistent. But head injuries merit special care and consideration, both medically and from a risk management perspective, and it ultimately turned out that the jail staff would not accept her for booking until she had been cleared at the hospital after all.3 Decision to Conduct Dual Transport: The Department does and did have a policy relating to the transport of multiple passengers in the same radio car. While it discourages the combining of male and female prisoners, it does not prohibit it. Instead, the language allows for the exercise of discretion when strict separation is “not practicable”, which provides some degree of latitude. Additionally, the same policy puts some burden on the transporting officer when a dual transport of a male and female is occurring. It is expected that the officer will monitor the prisoners to ensure that no inappropriate interactions are occurring. This makes sense, of course, and arguably relieves some of the responsibility from Supervisor C or a similarly situated supervisor. In this incident, however, the decision proved to be ill-fated. (The performance of Officer B, who drove the male and female, is discussed below.) The IPA acknowledges that it is important when analyzing such situations to be wary of hindsight. It seems obvious now, given what happened, that to invest the resources in a separate transport would have been “better” and worth the inconvenience. But the fact that it was not obvious beforehand makes some sense in the context of past practice and the unexpected audacity of the male suspect. Still, the Department’s decision to hold the supervisor accountable is appropriate. Bad outcomes do inevitably influence retrospective analysis, and the incident was serious and 3 She was ultimately cleared for booking by a doctor after a few hours of treatment and observation. 6 significant enough to merit a formal sanction – even while acknowledging the mitigating factors and lack of wrongful intent. Here, it seems reasonable to point to the increased risk factors, such as the female’s intoxication and grogginess and recent fall, and conclude that the normal policy that discourages dual transports should definitely have prevailed over the exception. Officer’s Failure to Intervene During Transport: As noted above, the relevant Department policy about dual transports specifically cites the expectation that the driver will monitor activity in the back seat to prevent problems from arising. (The same policy, though, also assumes a physical barrier in the back of the car, which PAPD did not have available at that time.) It is clear from the video of the transport that Officer B did not realize the extent or specifics of what was happening. A closer question is whether he should have, given the available facts. Here, the Department found that Officer B’s performance had not fallen below expectations to the point of a policy violation warranting discipline. The IPA, having reviewed the video of the transport and the police reports finds this result reasonable, if debatable. This is because the decision to transport had not been his, because of the surreptitious nature of the suspect’s actions, and because of the ambiguity in the female arrestee’s complaints and requests for intervention during the trip. The video of the transport shows that there were also long stretches during the ride in which the male and female were apart from each other and not in conflict. It also shows the secrecy and wariness with which the male suspect looked for opportunities to touch the sleepy female without being detected by the officer. The video is also slightly misleading to the extent it offers a clearer angle of events than Officer B’s own more obstructed vantage point.4 Obviously, he was also rightly attentive to his driving responsibilities as well. The female’s comments – both to Officer B and to the male – are only intermittent and do not directly describe what is happening. If the IPA had been the decision maker in this matter we might have found the acts of the officer in violation of policy but it does not find the Department’s ultimate disposition to be unreasonable. As indicated by the police reports, the officer moved promptly and effectively at the end of the transport to notify supervision, review the video evidence, and document the male suspect’s actions. 5 4 PAPD officials also noted in discussions with the IPA that the lighting in the video recording is brighter than the officer would have seen, and that the relevant audio was captured by a microphone in the rear of the vehicle – which means it was clearer and louder than it would have seemed to the officer. 5 Another issue discussed with the Department by the IPA, was that Officer B’s radio was playing music during the ride. This arguably had the potential to interfere with Officer B’s 7 Importantly, the Department also used this incident, and the feedback that emerged from the investigation, to focus renewed attention on its dual transport policy. It has taken pains to reinforce the expectation that such transports should be much more of an exception than they had apparently become. And, as it updates its fleet of vehicles, it has invested in cars that have a partition in the back seat that would physically separate passengers in the event such a transport was not avoidable. Incidents like this have a powerful influence on Department behavior in the short run, and the additional remedial steps should help ensure the longer-term prevention of a similar issue.6 At the same time, another remedial measure worth considering relates to strengthening of the actual policy language for dual transports. To review: such transports, though discouraged, are not prohibited by the policy. There are reasons for this, since maintaining some flexibility for unique or extreme circumstances is a regular part of law enforcement’s exercise of discretion. Here, though, the “exception language” is more open-ended and vague than it should be. The IPA has no reason to doubt the Department’s representations that the evaluation of this case last year had a significant impact on executive-level attention to the issue, and on supervisory understanding of the need to be vigilant and protective of prisoner welfare during transport. However, even with the best of intentions, “lessons learned” and points of emphasis have a way of fading with time. The memorializing of current concerns through a stronger, more restrictive policy would help ensure a lasting positive impact from this case.  Recommendation 1: PAPD should strengthen its policy to require a stronger degree of exigency before a dual transport is authorized, to document the exigency when a dual transport is authorized, to require that any dual transport is only undertaken in a radio car with a physical barrier between the two individuals, and to require the transporting officer to immediately stop the transport should an arrestee complain of conduct by the other individual. ability to perceive what was occurring; however, the Department has no specific policy precluding the use of the radio in that way. 6 While not part of the administrative process, to provide further Departmental learning and guidance out of this incident, the Department conducted an extensive de-briefing to all of its members and used that discussion to remind them to take arrestees who have been injured to a medical facility for clearance before booking them. 8 Case # 2 Factual Overview: A Palo Alto police officer was working a traffic detail when he observed a female driving at speeds above the posted limit. As indicated in the body camera the officer was wearing at the time, the officer stopped the car in the driveway of an urgent care facility. The driver explained that she was on her way to the facility because of symptoms that caused her concern, and that she had received advice to come in for treatment from the urgent care personnel. The officer instructed the female to leave the car in the driveway of the facility and proceed directly to the urgent care desk. The officer followed the female inside the facility as she talked with reception personnel. As the female was waiting to be treated, the officer asked urgent care personnel if she had time to move her car since it was illegally parked in the driveway. The officer then asked the female to park her car legally and issued her a citation for speeding. The female later complained that the officer failed to provide her with adequate medical care. The female indicated that because the officer followed her into the urgent care facility, her medical treatment was delayed. The female explained that if the officer had just written her a ticket, she could have then proceeded into the facility and received more timely care. Outcome and Analysis: PAPD conducted an objective and thorough investigation. The handling supervisor interviewed appropriate witnesses and collected and evaluated supporting data, such as the video and audio evidence.7 To his credit, the investigator also performed time assessments on whether writing a citation prior to accompanying the female inside would have caused her to be seen by medical personnel more quickly. The Department determined that the officer did not violate policy. (Citing her first would perhaps have delayed things more than the course of action that did occur, which involved having her check in before writing the ticket.) The IPA concurs with this assessment. In addition to the ultimate issue of whether the officer violated policy, the IPA notes the following additional matters worthy of discussion: Failure to Record Follow-Up Telephone Interview: The interviews conducted by the investigator were tape recorded – with one notable exception. While the initial interview with 7 Virtually all of the interaction between the officer and the female was captured on a body-worn camera deployed by the officer. PAPD has been utilizing this technology since 2014 year in a pilot program involving a limited number of officers. The audio/video record from the camera is of high quality and effectively encapsulates conversations and actions by the officer and the complainant. 9 the urgent care intake person was tape recorded, the investigator telephonically re-contacted the employee and asked several follow-up questions. The follow-up interview was not recorded because the investigator failed to use a recorded line to do so. PAPD is equipped with recorded lines. Ideally, the supervisor would have used a recorded line so that the follow up interview could also have been recorded. PAPD Presence During the Conversation Between the Female and Urgent Care Reception Personnel: The body-worn camera worn by the officer showed that he was present and proximate to the female when she reported to the reception center of the urgent care facility. During that interaction, the female was asked about symptoms that were the basis for her distress and visit. Because the conversation was captured by the body-worn camera, it is clear that the officer was close enough to overhear the conversation. Medical information is protected by state and federal law to ensure that such closely held and private information is kept from unnecessary third parties. In some situations, law enforcement cannot help to overhear conversations between medical care providers and patients for purposes of affording treatment. However, in this case, it was improvident and unnecessary for the officer to stand by the female while she described her medical condition to a medical care provider. His presence likely contributed to her distress and her unhappiness over the way he handled the situation. It would have been helpful had PAPD supervision identified this particular issue and informally raised the matter with the officer; the officer may have benefited from additional insight into the complainant’s perspective. IPA recommends that PAPD use this opportunity to remind its personnel of the need for discretion and sensitivity in this arena. Providing Guidance to PAPD Members on Exceptions to Recording. Recognizing competing privacy interests in the medical arena, some police departments body-worn camera policies instruct their members not to activate a camera when a health care provider is discussing medical issues with a patient or when an officer is in the hospital for the sole purpose of waiting for an arrestee to be medically cleared. PAPD should consider whether such guidance would be helpful to its officers regarding the use of the body worn cameras. To summarize, the IPA offers the following recommendations based on this case:  Recommendation 2: PAPD should remind supervisors of the need to take advantage of recorded lines when conducting follow up telephone administrative interviews.  Recommendation 3: PAPD should remind its members to avoid listening in when individuals are providing medical information to medical practitioners.  Recommendation 4: PAPD should consider whether written guidance should be provided to its officers regarding the deactivation of body worn cameras when medical information is being shared between a health care provider and a patient. 10 Case # 3 Factual Overview This case involved a complaint by a male bicyclist who was detained and cited by a patrol officer for riding his bike on the wrong side of the road. At the time of his detention, the male requested the presence of a supervisor. When one responded to the scene, he alleged that that stop had lacked legal justification, and that the officer had used profanity in initially ordering him to stop his bicycle. Several days later, the man responded to the station to lodge his complaint formally and to provide an interview to PAPD supervisors. Outcome and Analysis The Department determined that the main thrust of the complaint – that the stop had lacked a proper basis, was unfounded. The IPA concurs with this assessment. Regarding the intake interview, the IPA had the opportunity to listen to a recording of the interview with the complainant, and found the approach of the Department’s representatives to be impressive. While being respectful and welcoming to him, they also refrained from being condescending and took the time to explain and clarify things about which the complainant was mistaken. In short, they took him seriously and worked to make the interaction as constructive as possible. The complainant felt comfortable enough to assert himself, and was also receptive to the information from the officers. While the complainant raised issues about the circumstances of the stop (timing, location, lack of lights and sirens), the in-car video evidence corroborates the citation that was issued by the officer. In fact, the complainant’s version does not significantly vary dispute as to what specifically is depicted in the video evidence, though the time gap between where the improper riding occurred and the actual stop may have contributed to legitimate confusion. And while the complainant seemed to believe the officer was lying in wait and making a special effort to find an infraction by following him, the recording does not corroborate this perception. Instead, the slight delay occurred because the officer was initially busy on the radio with another matter. The audio recording does corroborate the complainant’s contention that the officer used profanity, but this was not formally evaluated. Instead, the Department chose to focus only on the detention’s legitimacy. This decision was based on the framing of issues by the complainant, who apparently seemed less concerned about the discourtesy component than about the validity of the stop. The IPA believes the Department could have handled this latter component of the incident more effectively. To a certain extent, it does make sense for a complainant’s own priorities to drive the investigation, and in this case it is true that the cyclist was not fixated on 11 the profanity/discourtesy problem. However, the Department’s decision here falls short of the inclusive, comprehensive approach to internal review that the IPA espouses. In our view, the complainant’s articulated issues and subjective priorities in any case should be a floor, not a ceiling. Just as a plainly wrong allegation does not gain value because someone is passionate about it, a reasonable concern should not be dismissed because the complainant does not consider it a priority or take pains to repeatedly emphasize it. The officer’s use of profanity was not egregious in this instance.8 Because the complainant was not prompt in immediately obeying the initial instructions to stop riding and pull over, the officer’s more direct instruction to him juxtaposed with a small dose of profanity does arguably fit within the oft-cited “command presence” rationale for the use of strong language in a tactical, calculated way.9 But it was, in our view, significant enough to address during this investigation. In short, profanity matters enough to the Department to have a policy about it – as it should, given the impression that it makes on the public. Accordingly, it should have mattered enough to be more thoroughly considered by PAPD. Case # 4 Factual Overview: This complaint began with a father visiting the PAPD station on behalf of his teenage son. The father mentioned having read about questionable Taser deployment by PAPD against a juvenile on a bicycle, which had received recent media attention. The coverage apparently prompted him to inform the Department about an encounter that allegedly had occurred some six months earlier. The father asserted that his son – while riding a bicycle – had been stopped by an unnamed officer for speeding and subjected to a search of his bag before being allowed to go with a verbal warning. It bears noting that the teenager and his father are African-American, though PAPD officials say that neither of them expressly alleged racial bias or “profiling” as the reason for the stop. 8 The IPA reviewed the recording of the encounter, and it should be noted that, for the most part, the officer is markedly controlled and professional in dealing with a contentious and unhappy subject. 9 While the IPA is familiar with this argument from its work with a variety of agencies, and sees the legitimacy of it in theory, we are also wary of it as an exception that too often swallows the rule. 12 Based on the facts provided by the father10, the Department made an initial effort to find documentation and other available evidence relating to the stop. It was unable to do so. Subsequent efforts to contact the father by phone and e-mail were not successful. However, the father re-initiated contact with the Department several months later. This time, he brought his son to the station with him. The father explained that national media coverage of controversial police events elsewhere had helped motivate him to make further inquiries, and express dissatisfaction regarding the lack of results from his previous contact. The handling supervisor had the opportunity to speak with the son as well, and obtained some clarifying details as the son and father collaborated on the submission of a written complaint form. The son provided some additional identifying details, including a physical description of the involved officer. Again, though, the Department was unable to locate any record of the contact at issue, in spite of taking pains to do so in its follow-up investigation. After a further round of due diligence (which included reviews of call logs, data bases, dispatch records and in- car videos from the date at issue and a broader range within that month), the Department decided to close the complaint as “Not Sustained.”11 Outcome and Analysis: PAPD appears to have responded to this complaint in a conscientious fashion. After both the initial and subsequent in-person contacts with the father, Department officials made a concerted effort to investigate the circumstances of the stop, but were unable to find relevant supporting information. There are various possible explanations for this, ranging from a mistake of recollection by the complainant to a failure by the involved officer in properly logging the contact. It is also possible that the incident involved another agency, or did not occur at all. Importantly, though, the substance of the complaint itself – as described – further limits the possibility that misconduct occurred. In his own version of events, the teenage cyclist reported he was puzzled by the reason for the stop, given that he was in a dedicated bike lane and moving slower than car traffic. But he also indicated he had consented to it without hesitating, that the officer had been polite and even apologetic, and that the officer had not in fact searched his bag. The stop had apparently lasted only about two minutes. 10 These included the date and time, an approximate address, and of course the name of his son. 11 The gap of several months between the incident and the original complaint, while not insurmountable, also contributed to the challenges of the investigation. 13 III. Taser Cases Case # 1 Overview: An officer with the Palo Alto Police Department observed a subject kicking a male who was on the ground in a parking lot. According to the officer, the subject had blood on his hands and on his head. The officer saw that the man on the ground was in the fetal position and had blood on his face. The officer reported that he identified himself as a police officer, ordered the suspect to raise his hands and called for assistance over his radio. The officer indicated that he then drew his Taser from his holster and pointed it at the subject but did not immediately activate it. The officer reported that he observed a third individual nearby who he initially thought may have been a lookout to the assault. According to the officer, the subject turned and began to run into a narrow and dark alley. The officer reported that he then discharged his Taser at the subject’s torso at a distance of approximately 20 feet. Neither of the two probes of the Taser made contact with the subject and he continued to run down a narrow alleyway. The officer chased after the subject and when the subject realized there was no egress from the alleyway, he turned around to face the officer and went down to the ground. The officer handcuffed the subject without incident. According to the officer, he then instructed the subject to sit down on top of some milk crates in the alley. The officer reported that he observed what he believed was a wallet protruding from the subject’s pant pocket and attempted to remove the wallet but the subject became extremely upset with him and attempted to stand up. The officer indicated that he put his foot on top of one of the subject’s shoes and one of his hands on top of his left shoulder. The officer reported that the subject then leaned back against the alley wall and stood up. According to the officer, he tried to push the subject back down into a sitting position but that he was overpowered by the subject. The officer reported that he told the subject to sit back down but he refused. According to the officer, because he believed that the subject was going to attempt to flee, he grabbed the subject’s left leg with his hands and kicked the subject’s right leg out from under him. The officer reported that the subject fell onto the ground, landing on his buttocks and back. The officer reported he had attempted to activate his MAV recording system while he was initially walking toward the disturbance but did not know if it had activated.12 12 It had not, in fact, activated. 14 The officer reported that he had used the Taser because he believed it to be the most appropriate tool to subdue the subject and to keep him from becoming a danger to the public should he escape. The investigation revealed that the subject had assaulted the individual on the ground as well as a second individual the officer had initially thought was a lookout for the subject, causing them both injuries. When interviewed after his arrest, the subject asserted that he had no recollection of the incident. According to the investigative report, a PAPD officer overheard hospital staff say that the subject had a blood alcohol content of .0392%. Outcome and Analysis: Policy Determination: The PAPD investigator relied on available evidence, including testimony and surveillance video cameras from adjoining businesses. IPA does not find that the use of the Taser fell outside its use of force policy. The officer had indeed interrupted the subject committing a violent felony and at the time the Taser was deployed, the subject posed the requisite threat level that justified its activation.13 Consideration of Force Options: At the same time, we question the advisability (as opposed to permissibility) of the use of this weapon in this circumstance. This is because of the physical limitations of the Taser as they applied to these facts. Tasers are designed to propel two darts on separate leads in the direction of the subject. Ideally, the Taser probes will imbed in the subject’s body some distance apart. With an ideal spread of several inches, an electric current created between the two probes will effectively incapacitate the subject. However, if both probes do not strike the subject, the Taser will be ineffective. The Taser is designed so that the probes spread after they are ejected so they do not strike near each other on the body. Taser instructors teach that the ideal distance the officer should be from the subject for successful deployment is 7-10 feet at which point the spread of the darts is 16 inches. Taser cartridges have leads of 10, 15 or 25 feet, depending on the model. A review of the Taser Cam footage suggests that the subject was approximately 15 to 25 feet from the officer when the Taser was discharged. This, of course, averages to 20 feet – or twice the recommended ideal distance for Taser activation. However, PAPD did not document the length of the leads of the Taser cartridge deployed in this case. This matters because if the cartridge deployed were equipped with the shorter leads, there was actually no likelihood that the Taser activation would have been successful. Even if the cartridge contained 25-foot lines, 13 In spite of the analysis in this case, IPA cautions against overuse of the potential threat a subject might pose as justification for use of the Taser against someone who is fleeing (as opposed to being actively assaultive). If agencies are not vigilant in their assessments, reliance on the “threat” exception can potential render the basic prohibition meaningless. A second Taser incident, discussed below, offers an interesting point of contrast. 15 considering the spread of the probes at that distance, the likelihood of the officer being able to strike the torso of the subject with both probes was extremely low. In light of these limitations, in IPA’s view the Taser was seemingly not the most practicable weapon choice or tactic for the officer to deploy. This conclusion seemed to have been borne out by the result, since the Taser deployment was ineffective. Unfortunately, these limitations on the viability of the Taser were not set out by PAPD in its use of force analysis – at least as reflected in the materials made available to the IPA. Interestingly, as we discussed this point subsequently with PAPD management, we were informed that that cartridge was indeed a “25-foot” model, and that considerable internal discussion and assessment of the incident had in fact occurred among Department executives. We are gratified to hear it, have no reason to dispute it, and concede that the totality of information known to the decision-makers may well have militated more obviously in favor of the officer’s tactics even though the deployment of the Taser did, in fact, prove ineffective. But this cuts both ways: because the available documentation did not capture the fuller analysis, we have no basis for assessing it. Nor can we track the way that “lessons learned” might have been produced and disseminated to the involved officer and the Department as a whole. An atmosphere of rigorous self-scrutiny is no small thing in law enforcement. We recognize the dynamic nature of these force encounters and the distastefulness to some officers of what can seem like “Monday Morning Quarterbacking.”14 And our sense is that the culture and protocols of the Department are increasingly geared toward thoughtful and holistic review, which is very positive. At the same time, we encourage PAPD to be mindful of the importance of “showing its work” and creating a more robust record of the meaningful evaluations that it does. Narrow Scoping of the Force Analysis: As noted above, when the handcuffed subject began to become uncooperative with the officer, he reported the use of a takedown that caused the subject to fall to the ground. This action qualifies as a use of force under PAPD policy, but was not addressed during the use of force analysis. A comprehensive use of force analysis should include an investigation, review, and analysis of all force used during an incident. However, in this instance, there was insufficient distillation of the facts with regard to the takedown. For example, while the investigative report indicates that a responding supervisor witnessed the officer push the subject to the ground, the witness description of that event in the police report is terse and does not include whether the supervisor believed the force he observed was appropriate. More importantly, a reserve PAPD officer was on scene prior to the supervisor’s arrival, yet there is no written account of whether he observed the use of force in the 14 To extend the sports metaphor, though, we also observe that successful athletic teams routinely review tape on “Monday Morning” with an exacting eye– even after a victory, so that they can be improved and better prepared for the next game. 16 alley. With regard to the review and analysis of the takedown use of force, there was no analysis or conclusion about whether the force was consistent with PAPD’s use of force policy. The Rank of the Investigating Officer: In this case, an officer was assigned to conduct the force investigation of a peer officer. While the officer was serving as an acting supervisor and the watch commander, it is preferable to have force investigations conducted by individuals of higher rank than the involved officer.15 If resource issues prevent a supervisor from being available to conduct the investigation, the extenuating circumstances should be documented in the report. The Failure to Obtain Medical Records of the Subject: As noted above, while some evidence of the subject’s blood alcohol level was obtained as a result of overhearing comments from medical personnel, a comprehensive force investigation would necessarily obtain medical records of the subject. In this case particularly, where there was an unexplained head injury to the subject and where the actual blood alcohol content was relevant, it would have been important for the Department to obtain the medical records, not only for the use of force investigation but for any eventual charges to be lodged against the subject. Unfortunately, this was not apparently undertaken in this case. To summarize, the IPA offers the following recommendations based on this case:  Recommendation 5: PAPD should instruct its supervisors to recognize that any use of force analysis should include an assessment of the tactical appropriateness of the force option.  Recommendation 6: PAPD should instruct its supervisors of the need to consider, investigate, and evaluate all uses of force that occur during an incident.  Recommendation 7: PAPD should endeavor to assign a use of force investigation to a member of higher rank than the involved officer and should document the extenuating circumstances if staffing limitations preclude this.  Recommendation 8: PAPD should ensure by written investigative protocols that medical records of any person that force is used upon are obtained and incorporated into the use of force report. Case # 2: Factual Overview: This incident began with a confrontation at a bar, and a subject who was intoxicated, behaving obnoxiously, and refusing to leave. At one point, he brandished a large knife from 15 PAPD management informed us that the officer in this case was not an emergency stand-but was instead assigned on a longer-term basis to the rank of acting supervisor, as a means of dealing with staffing issues. 17 within his backpack after making a verbal threat to bar security. When the first officer arrived within a minute or two of the call for service, witnesses pointed out the suspect, who at this point was outside the bar and on the move. The suspect ignored the officer’s commands to stop, and a short foot pursuit ensued through a nearby restaurant and then the street. The officer eventually used his Taser in an effort to stop the suspect’s attempts to flee. The initial deployment was limited in its effectiveness and the pursuit continued. Then the officer used a second cartridge that incapacitated the subject and allowed an assisting officer to handcuff him without further incident. At the hospital, the Department documented the suspect’s injuries (which were minor, and primarily consisted of swelling from the Taser probes) and attempted to interview him about what had occurred, in keeping with its standard protocols. This was approximately an hour after the arrest. The suspect was combative with hospital staff to the point where they sedated him intravenously. Eventually, officers did take statements from the suspect, but they were interspersed with profanities and largely incoherent. The suspect’s statements, other than establishing his condition/state of mind, were of limited usefulness in determining what had occurred. Outcomes and Analysis: The Department conducted a thorough investigation that consisted of detailed reports from responding officers, witness statements from the bar, physical evidence, and technical evidence from the Taser itself. Based on our review of that information, the IPA finds that the Taser deployment is consistent with Departmental policy. Clearly, the suspect’s initial actions in the bar, his belligerence, and the knife that he possessed warranted his apprehension. The use of the Taser was both a valid force option for the physical circumstances and a justifiable option under Department guidelines. This was true even though the suspect appeared to be fleeing as opposed to actively engaging, because the use of the Taser was warranted by the threat he was reasonably perceived to have posed to others in the crowded area. Overall, the officer’s report is uniquely comprehensive and persuasive in articulating his perceptions and decision-making. He shows a strong grasp of Department policy and the reasons behind it, and does a good job of explaining how and why he used the Taser as events unfolded. For example, he is careful to account for the continuing threat he perceived, even after he noted the suspect dropping or discarding the large knife that he had presumably brandished at the bar. The officer did not discount the possibility that the suspect possessed other weapons in his backpack – and that theory turned out to be correct as well as plausible. Two other knives, wrapped in a towel, were also tossed by the suspect during the pursuit. 18 The officer’s account also explains the need for the second cartridge and the repeated cycling of the Taser. It primarily arose from the inadequate spread of the first set of probes. Importantly, when the Taser finally did work effectively to halt the suspect’s progress and illicit his cooperation, he was handcuffed without further force. This case appears to be a relatively straightforward example of an effective deployment that fit within the PAPD policy and training for Taser use. The IPA’s primary question, which it raised with PAPD management, related to the interview of the suspect at the hospital. As a general rule, those statements have significant importance for both evidentiary and risk management purposes. In this case, the clarity and value of them was undermined significantly by the suspect’s extreme intoxication and medical sedation. As Department management noted, creating a record of the suspect’s actual state of irrationality had significance of its own, and the IPA acknowledges the legitimacy of this point. Ideally, though, a supplemental interview with the suspect at a later time, when he had had some time to recover, might have been beneficial. It is a practice that the Department should consider as an option in subsequent force investigations. In doing so, it must perhaps balance perfection against practicality, and the evidence in this case was already quite substantial. However, the IPA recommends that the Department at least consider the option in subsequent cases when the interview is compromised by the subject’s medical condition, and critical facts are less clear.  Recommendation 9: PAPD should develop investigative protocols that instruct supervisors that if the person upon who forced is used is apparently intoxicated and/or displaying outward signs of irrationality/emotionality when interviewed, the supervisors should attempt to re-interview the individual after some time has passed and the effect of intoxication or other factors has been mitigated. IV. General Observations Use of Counseling to Provide Further Guidance to Officers To its credit, even when PAPD finds no violations of policy by its members and accordingly no finding of discipline or recordation of any adverse action in the officer’s personnel file, it often takes advantage of the opportunity to provide counseling. For example, it has taken the time to discuss with members issues such as the best use of officer discretion and various alternatives to handling a stop other than writing a citation such as issuing a written warning, sending the citation to the court as a complaint to be filed, or issuing a verbal warning. IPA commends PAPD supervision for initiating these types of counseling sessions. The mere fact that a citation can be issued does not necessarily mean it should be issued; both the law and Department practice gives officers discretion about whether to cite, in recognition of the common sense and judgment that goes into effective law enforcement. These types of 19 interventions show a holistic and constructive attitude toward complaint assessment that the IPA endorses. Letters to Complainants Do Not Convey Full Nature of Department’s Holistic Response. Per Department policy and state law, upon completion of the investigation and disposition of a citizen complaint, PAPD prepares and forwards a letter notifying the complainant of its findings. In our review of these letters, they generally state only the ultimate disposition reached by the Department. Even in cases which resulted in a broader discussion with the officer about how his or her conduct might have been better, the complainant is not informed in the letter that such a holistic response was generated. In our view, providing this additional information would likely be of interest – and perhaps affirmation – to the complainant about the value of the process. Concerns about confidentiality and officer privacy rights dictate the inclination of many agencies to take a minimalist approach to notification letters. Another concern is the workload involved in tailoring letters individually, rather than offering more standard and concise language. While these factors are understandable16, the Department generates relatively few complaints, and more can be said without encroaching on legal restrictions. In the IPA’s view, it would be both feasible and beneficial to use these letters as an opportunity to provide more satisfaction and information to complainants about the Department’s remedial actions.  Recommendation 10: PAPD should compose citizen letters that more fully explain to the complainant the Department’s investigative efforts and responses. Officers Are Afforded the Ability to Review Video and Audio Evidence of Relevant Events Potentially Contaminating Their Recall. Current PAPD protocols allow that prior to involved officers being interviewed, they are able to review any mobile audio visual recordings from their patrol cars and any recordings made by their body cameras. Allowing an officer to review audio/video footage before being interviewed is likely to distort pure recall either consciously or subconsciously. Studies by experts in witness memory have repeatedly established that subjecting witnesses to external evidence can cause them to supplant or modify what they actually recall with what they see from the recorded evidence. As a result, allowing personnel to view a video or listen to audio prior to interviewing the involved officers eliminates the ability to obtain a pure unvarnished account of the event from them. A “view and listen first” practice can also create the impression that the Department is attempting to influence the officers’ accounts so that they can be tailored to the audio and video 16 Indeed, PAPD has explained that it has deliberated on this issue and sincerely believes the limited approach is more advisable for a variety of reasons. 20 evidence that has already been gathered. Such an impression could reduce confidence in the Department’s objectivity in addressing allegations of misconduct. Finally, a “view and listen first” practice is not consistent with current investigative practices PAPD employs on a daily basis. For example, bank employee victims are not shown surveillance videos of a robbery prior to being interviewed. IPA recommends that when PAPD is investigating the conduct of an officer, it should set out a written procedure whereby the investigator is to first interview the officer about his recollections, then provide the opportunity for the officer to view any audio or video of the incident, and afford the officer the opportunity to expand or modify his first response based on review of the recording. Under this practice, the Department is able to obtain a pure statement of the officer’s recollection, yet provide the opportunity for the officer to use the recording to refresh his or her memory of the events at issue. This is an issue that the IPA has previously raised with the Department, most recently in a report on cases from the first half of 2013. At that point, PAPD acknowledged the issue as one that generates debate and different approaches throughout law enforcement, and said that it was in communication with stakeholders such as the District Attorney’s Office regarding possible modifications to its protocol. PAPD does participate in a county-wide agreement not to allow “view first” interviewing or reporting in officer-involved shootings and other serious incidents in which the officer’s conduct receives automatic formal review. Driven by the county District Attorney’s Office, this is an important step. Nonetheless, the IPA believes that the same reasoning applies to any case in which the conduct of an officer is under review, and encourages the Department to look for ways to alter its practice and bring it in line more consistently with the District Attorney’s guidance.17  Recommendation 11: PAPD should develop written protocols so that when an employee’s conduct is under review, an interview of the employee occurs before the member is afforded an opportunity to review any recording of the incident. V. Conclusion Thank you for the continued opportunity to monitor PAPD on behalf of the community it serves. Please feel free to contact us at your convenience with questions or other feedback. 17 It should be noted that the Department has discussed the issue recently with the IPA. While its rationales for following a “view first” approach in more routine law enforcement reporting contexts (including citizen complaint cases) are not persuasive to us, they are sincere and shared by other law enforcement agencies.