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HomeMy WebLinkAboutStaff Report 4122 City of Palo Alto (ID # 4122) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/23/2013 City of Palo Alto Page 1 Summary Title: Update to Heidelberg Agreement Title: Reauthorization to Engage in a Non-Binding "Smart Cities Alliance Agreement" with the City of Heidelberg, Germany, and Direction on Exploring Future "Smart City" Alliance From: City Manager Lead Department: City Manager Recommendation Staff recommends that City Council reapprove the agreement between the City of Heidelberg, Germany and the City of Palo Alto, replacing the word “partnership” with “alliance”. Background On August 12, 2013, City Council approved Staff Report #3973 to authorize the Mayor to execute the “Smart Cities Partnership Agreement” with the City of Heidelberg, Germany at a ceremony to be held in October, 2013. Discussion The City of Palo Alto received a request from Heidelberg’s Mayor to change the word “partnership,” in the agreement to “alliance.” The term “alliance” is more typically used in Europe than “partnership”. While we may continue to refer to our Smart City initiatives as partnerships, this change would be appropriate. The word change would not change the conditions of the agreement. The Heidelberg Mayor feels that the word change better highlights the difference between smart city agreements and sister city agreements. City of Palo Alto Page 2 The Mayor and City Manager will also be traveling to our Sister City Enschede, The Netherlands, on this trip. Enschede is also interested in exploring a Smart City “alliance” with Palo Alto. Mayor Scharff and I will be discussing this with their Mayor and City Manager. Our trip will occur October 6-13. In related matters, Vice Mayor Shepherd will traveling to China on behalf of the City with the Bay Area Council, October 12-20. On that trip, she will be participating in a Smart City Symposium in Yangpu District Shanghai (our Smart City Partner in China). Attachments:  Attachment A: Heidelberg Agreement with Edits (PDF)  Attachment B: Heidelberg Agreement Final (PDF)  Attachment C: 8-12-13 Staff Report (PDF)  Attaachment D: 08-12-13 CC Minutes Excerpt (DOC) Page | 1 Smart Cities Alliance Partnership between the City of Heidelberg, Germany, and the City of Palo Alto, California, USA Introduction The City of Heidelberg, Germany and the City of Palo Alto, California are interested in formalizing their relationship, especially in the areas of cultural exchange, environmental sustainability and innovation- driven economic development. As such, both entities would like to engage in a non-binding “Smart Cities” Alliance Partnership to work together to strengthen ties. Goal of the agreement The principal goal of the alliance partnership is to leverage the assets of both Heidelberg and the City of Palo Alto (cutting-edge research, talented workforce, world class educational institutions, emerging technologies, engaged communities, forward-thinking policies and strategies, diverse populations, etc.) to exchange ideas and value, especially in the areas of environmental sustainability and innovation- driven economic development. Areas for collaboration Heidelberg and Palo Alto, through the sharing of information and “best practices” will assist each other by sharing our perspectives, successes, and challenges, especially in the areas of economic and environmental sustainability. We will strive to understand our respective places and cultures, and seek to align partner in specific areas with a focus on mutual benefit. Once we have built a strong foundation, we will seek to create mutual programs with measurable results. These programs will target the areas of sustainable practices & community engagement, as well as the development, market introduction, and application of new technologies. Areas of specific interest include assistance to businesses that are developing technology in energy efficiency, cloud computing, interactive digital arts and gaming, nanotechnology, biotechnology/ medical devices/ health care, sustainable development, electric vehicles and “smart automotive”, renewable energy, and design. Cooperation or collaboration in these areas will be on an activity-by- activity basis and through mutual consultation. Both Palo Alto and Heidelberg will facilitate global growth for local businesses and community engagement by functioning as the gateway to European and United States’ markets and communities respectively. This gateway concept will include assisting in identifying community leaders, research institutions, and companies for visitation, venues for further outreach, and the sharing of information to assist business growth. A contact person will be identified in each location to assist with coordination of activities. The identified contact person will work with business associations and research institutes to assist with connectivity to the appropriate resources or investment locations in Heidelberg and Palo Alto. Page | 2 Partners The Cities will work to promote mutually beneficial relationships through Stanford and Heidelberg Universities to foster internships and cross-businesses/ cultural exchanges. In addition, at least one joint event will be pursued to engage leaders in both cities towards some meaningful dialogue and measurable outcomes. Alliance Partner Organizations To effectively accomplish the above goals, it is critical that other organizations partners in addition to the local government participate in this mission. The following are potential Alliance Partner organizations Heidelberg Heidelberg University Heidelberg Club International Chamber of Industry and Commerce Rhine- Neckar Heidelberg Technologiepark Palo Alto Palo Alto Chamber of Commerce Stanford University Stanford Research Park Palo Alto Unified School District Palo Alto Community Environmental Action Partnership Neighbors Abroad Duration of the Alliance Partnership The partnership Alliance will be in effect between Heidelberg and Palo Alto for a period of five years from November 1, 2013. After November 1, 2018, this Alliance will automatically renew on each anniversary date unless notice of non-renewal is provided by either party 30 days prior to the renewal date. Both cities agree to review progress on a bi-annual basis. This alliance partnership expresses the mutual intention of Heidelberg and Palo Alto to foster collaboration in areas of economic and environmental sustainability. Nothing contained in this document shall be construed as forming a contract, business entity, partnership or fiduciary relationship or any other legal obligation between Heidelberg and Palo Alto. This alliance Partnership is acknowledged and agreed to on behalf of the City of Heidelberg, Germany and this _________ day of _____________, 2013 in the City of Heidelberg, Germany by _______________________________, Dr. Eckart Würzner, Mayor of the City of Heidelberg (Signature) Page | 3 This alliance partnership is acknowledged and agreed to on behalf of the City of Palo Alto, California, USA, on this __________ day of _____________________in the City of Heidelberg, Germany, by ______________________________, H. Gregory Scharff, Mayor of the City of Palo Alto, California (Signature) Page | 1 Smart Cities Alliance between the City of Heidelberg, Germany, and the City of Palo Alto, California, USA Introduction The City of Heidelberg, Germany and the City of Palo Alto, California are interested in formalizing their relationship, especially in the areas of cultural exchange, environmental sustainability and innovation- driven economic development. As such, both entities would like to engage in a non-binding “Smart Cities” Alliance to work together to strengthen ties. Goal of the agreement The principal goal of the alliance is to leverage the assets of both Heidelberg and the City of Palo Alto (cutting-edge research, talented workforce, world class educational institutions, emerging technologies, engaged communities, forward-thinking policies and strategies, diverse populations, etc.) to exchange ideas and value, especially in the areas of environmental sustainability and innovation-driven economic development. Areas for collaboration Heidelberg and Palo Alto, through the sharing of information and “best practices” will assist each other by sharing our perspectives, successes, and challenges, especially in the areas of economic and environmental sustainability. We will strive to understand our respective places and cultures, and seek to align in specific areas with a focus on mutual benefit. Once we have built a strong foundation, we will seek to create mutual programs with measurable results. These programs will target the areas of sustainable practices & community engagement, as well as the development, market introduction, and application of new technologies. Areas of specific interest include assistance to businesses that are developing technology in energy efficiency, cloud computing, interactive digital arts and gaming, nanotechnology, biotechnology/ medical devices/ health care, sustainable development, electric vehicles and “smart automotive”, renewable energy, and design. Cooperation or collaboration in these areas will be on an activity-by- activity basis and through mutual consultation. Both Palo Alto and Heidelberg will facilitate global growth for local businesses and community engagement by functioning as the gateway to European and United States’ markets and communities respectively. This gateway concept will include assisting in identifying community leaders, research institutions, and companies for visitation, venues for further outreach, and the sharing of information to assist business growth. A contact person will be identified in each location to assist with coordination of activities. The identified contact person will work with business associations and research institutes to assist with connectivity to the appropriate resources or investment locations in Heidelberg and Palo Alto. Page | 2 The Cities will work to promote mutually beneficial relationships through Stanford and Heidelberg Universities to foster internships and cross-businesses/ cultural exchanges. In addition, at least one joint event will be pursued to engage leaders in both cities towards some meaningful dialogue and measurable outcomes. Alliance Organizations To effectively accomplish the above goals, it is critical that other organizations in addition to the local government participate in this mission. The following are potential Alliance organizations Heidelberg Heidelberg University Heidelberg Club International Chamber of Industry and Commerce Rhine- Neckar Heidelberg Technologiepark Palo Alto Palo Alto Chamber of Commerce Stanford University Stanford Research Park Palo Alto Unified School District Palo Alto Community Environmental Action Partnership Neighbors Abroad Duration of the Alliance The Alliance will be in effect between Heidelberg and Palo Alto for a period of five years from November 1, 2013. After November 1, 2018, this Alliance will automatically renew on each anniversary date unless notice of non-renewal is provided by either party 30 days prior to the renewal date. Both cities agree to review progress on a bi-annual basis. This alliance expresses the mutual intention of Heidelberg and Palo Alto to foster collaboration in areas of economic and environmental sustainability. Nothing contained in this document shall be construed as forming a contract, business entity, fiduciary relationship or any other legal obligation between Heidelberg and Palo Alto. This alliance is acknowledged and agreed to on behalf of the City of Heidelberg, Germany and this _________ day of _____________, 2013 in the City of Heidelberg, Germany by _______________________________, Dr. Eckart Würzner, Mayor of the City of Heidelberg (Signature) Page | 3 This alliance is acknowledged and agreed to on behalf of the City of Palo Alto, California, USA, on this __________ day of _____________________in the City of Heidelberg, Germany, by ______________________________, H. Gregory Scharff, Mayor of the City of Palo Alto, California (Signature) City of Palo Alto (ID # 3973) City Council Staff Report Report Type: Action Items Meeting Date: 8/12/2013 City of Palo Alto Page 1 Summary Title: International Relationships Title: Review of the City of Palo Alto/ Neighbor's Abroad Sister Cities Program, Discussion of International Relationships Strategy, Authorization to Engage in a Non-Binding "Smart Cities Partnership Agreement" with the City of Heidelberg, Germany, and Direction on Exploring Future "Smart City" Partnerships From: City Manager Lead Department: City Manager Recommendation Staff recommends that Council review and discuss the background and history of the City’s international relationships, and Motion: 1. Authorize the Mayor to execute the attached “Smart Cities Partnership Agreement” (Attachment 5) with the City of Heidelberg, Germany at a ceremony to be held in October, 2013. 2. Discuss the Bay Area Council’s invitation to the Mayor and/or other Council Members to represent the Council in the US-China Collaboration Symposium in October, 2013, with special focus on the Smart Cities Conference in Yangpu, Shanghai 3. Direct staff to work with Stanford University to explore the creation of a Government Innovations and Entrepreneurship Fellowship. 4. Direct staff to work in collaboration with Neighbors Abroad and other community volunteers to explore the addition of the “Smart City” concepts to existing Sister Cities who might be interested. City of Palo Alto Page 2 Background Sister Cities International and Neighbors Abroad Sister Cities International (SCI) was created in 1956 by President Dwight D. Eisenhower, who “envisioned an organization that could be the hub of peace and prosperity by creating bonds between people from different cities around the world.” In a post-war era, SSI promoted “citizen diplomacy”; promoting peace and prosperity by creating opportunities for people to learn about other people and cultures and build lifetime friendships [see additional sources 1 below]. The intent was that upon a foundation of mutual understanding, a new era of peaceful collaboration between cities, and ultimately nations, would be catalyzed. In the early 1960s, citizen leaders in Palo Alto formed Neighbors Abroad, an organization meant to create and manage the City’s emerging international relations strategy based on the principles of SCI, focused primarily on cultural and educational exchanges. Palo Alto’s first official Sister City relationship was forged in 1963 with Palo, Leyte, Philippines. It was followed in 1964 by Oaxaca, Mexico. Since then, several more official Sister City relationships developed: Enschede, Netherlands (1980); Linkoping, Sweden (1987); Albi, France (1994); and Tsuchiura, Japan (2009). With the goal of “promot[ing] international and inter-cultural understanding” [see additional sources 2 below], the 50 years of international relationships for Palo Alto through Neighbors Abroad has been very successful. This is evidenced not only by the continued relationships between citizens in Palo Alto and our sister cities, but also in the numerous programs, visits, and student exchanges that continue to be organized and produced by Neighbors Abroad. Many of these events are documented in El Chisme de Neighbors Abroad, their bi-monthly publication. In fact, within the last year, the City has partnered with Neighbors Abroad to host visits from citizens and leaders from 5 of our 6 Sister Cities (Palo, Oaxaca, Enschede, Linkoping, and Tsuchiura). It is important to note that in conversations with each of our Sister Cities it has become clear that they are all interested in a more focused relationship, especially as it relates to economic development. City of Palo Alto Page 3 Managing an official Sister-City relationship requires a great deal of energy and commitment. Neighbors Abroad established a program management structure that largely relies on a volunteer Vice President to lead each relationship. This creates a risk to the sustainability of the program if their effort to engage new members in the leadership pipeline is unsuccessful. Further, while SCI has adapted its emphasis to include economic partnerships as a focus area, Neighbors Abroad has deliberatively not done so. Staff recommends working together with Neighbors Abroad to ensure that our established relationships continue, allowing the flexibility to transition the nature of our collaborations as appropriate. “Smart Cities” Partnerships In the 50 years since 1963, Palo Alto/Stanford has emerged as a global center for technology and innovation. This has had an important impact on our appeal to other cities as a potential strategic partner. This interest is evidenced by the regular visits by leaders from cities all over the world. Environmental sustainability, innovation-driven economic development, and educational exchanges are just a few areas where a mutually beneficial, strategic, and focused relationship could be fruitful for those cities and ours. Especially in the last decade, changes in the geo-political landscape, technological advancements, and the globalization of the world economy have made new types of collaboration and partnership possible. It is now appropriate to review our international relationships and explore structures and strategies attuned to this changing landscape and which allow for the flexibility to experiment with new approaches. Because the Sister-City model does not allow for such smaller, focused, relationships, the concept of a “Smart-City” partnership has materialized as a potential new model worth testing. A smart city, as defined by the United Cities for Local Governments, is “a type of city that uses new technologies to make them more livable, functional, competitive, and modern through the use of new technologies, the promotion of innovation and knowledge management, bringing together 6 key fields of performance: the economy, mobility, the environment, citizenship, quality of life and, finally, management.” [See additional sources 3 below] City of Palo Alto Page 4 The idea of the “Smart City” partnership is to create a vehicle by which the City can engage with another city or region of the world around strategically targeted topic areas that benefits the City, its people, and community. The partnership would be short-term (less than 5 years) in duration, and be expected to provide valuable results measured through mutually-established metrics. These topic areas could draw from the Smart City movement, which includes: Support for Entrepreneurship Retaining and attracting talent and promoting creativity Education Online public services Transparent governance Promoting ICT (information and communications technology) and Innovation Smart mobility Culture and Identity Accessibility and e-inclusion [3] City of Heidelberg, Germany For several years, the City of Heidelberg, Germany, has been in discussions with City Leaders about engaging in such a partnership. In October, a presentation was given to the Council by representatives from Heidelberg and SAP regarding the City of Heidelberg. This presentation is attached (Attachment 4), and highlights several of the key aspects of Heidelberg as well as areas of potential collaboration with the City of Palo Alto. Heidelberg is a city of approximately 150,000 people that takes up approximately 68 square miles at the center of the Neckar River Triangle in Germany. It is home to several institutions of scientific and technical research, and boasts an economy largely driven by invention and innovation. City of Palo Alto Page 5 Staff was especially impressed with their leadership in the area of environmental sustainability, both in terms of their City’s goals as well as their robust programs- especially those that engaged their citizenry in behavioral changes. This is exemplified by their inclusion in the C40, an internationally respected Climate Leadership Group, made up mostly of much larger cities. An overview of their environmental efforts is included in their collateral entitled “Climate Protection Commitment” included in this report (Attachment 6) Staff has also identified several current residents in Palo Alto from the Heidelberg region who have expressed their interest in volunteering in any effort to connect our two cities. In follow-up efforts and meetings, a “Smart City Partnership Agreement” has been drafted for the Council’s Consideration (Attachment 5) Yangpu District of Shanghai, China In November of 2012, the Council authorized the Mayor to execute an exploratory agreement with the District of Yangpu, Shanghai, China (Attachment 3). Staff and Council Members traveled to China with a Bay Area Council (BAC) Delegation, and returned with a presentation on their experiences in December. At that point, staff was given directions specific to continuing the Yangpu/Palo Alto relationship. An update of the efforts of staff and volunteers thus far was included in the Council Packet for 8/5/13 as an informational item. Of particular note is the successful completion of a pilot student exchange/ experiential learning program by six teens from Palo Alto High Schools. Staff was also directed to return to Council with a study session on International Relations. This action session of the Council is intended to allow for discussion, but also includes the flexibility for some specific actions for Council’s consideration. As noted in the informational report on 8/5/13, The City has also been invited by the Bay Area Council to take part in the “Smart City” Conference 2013 to be held in China. It begins outside Beijing in Tianjin and concludes in Yangpu, Shanghai. The Mayor and the City Manager (or appointees) have been invited to speak at the conference. Vice Mayor Shepherd has been participating in the steering committee process and expects to have an informative program involving green tech leaders, government officials and industry. The purpose is to promote 21st Century thinking on green efforts as China develops their domestic economy and City of Palo Alto Page 6 public services. The conference is scheduled for October 13-20, and all council members are welcome to attend. The Bay Area Council has created a special government rate for those interested in participating. City of Espoo, Finland and Aalto University In late May, 2013, The Mayor, Vice Mayor, City Manager, and Asst. Planning Director met with representatives from the Stanford Technology Venture Program, leaders from the City of Espoo, Finland, and the University of Aalto in Espoo. Through this interesting discussion, an idea emerged that a program between Palo Alto and a Stanford graduate student could be developed with a focus on government innovations and entrepreneurship. If such a program was also developed simultaneously between the City of Espoo and Aalto University, it could form the initial foundation for a very interesting “Smart Cities” Partnership as well. Discussion The City of Palo Alto has an opportunity to build on its international identity and the existing strong foundation of international relationships to create new value for the City. In this Digital Age, it is appropriate to build upon our goodwill and cultural exchanges to reach beyond to form new economic, technical, and innovation focused programs with other cities in the world. We can leverage our existing international relationships and add some new ones, especially those that benefit our city and enhance our position in the global marketplace. A nimble model such as the “Smart Cities” partnership allows us to explore potential relationships and engage in shorter term, focused collaboration towards specific and measureable goals. The “Sister City” model has an important place in the history of Palo Alto. It has provided a strong foundation for our international relations. The efforts of the Neighbors Abroad volunteers and Staff over the last 50 years have been remarkably valuable and fruitful for the City, especially from a cultural, City of Palo Alto Page 7 educational, and ambassadorial perspective. Staff recommends that the City continue to support the Sister City programs, visits, and exchanges largely managed by Neighbors Abroad. At the same time Staff can also work with Neighbors Abroad and other interested community members to create new strategic opportunities as well. These results-oriented relationships need not rise to the level of depth and permanence of the “Sister City”, and indeed should be lithe and flexible in their structure. It is intended that through the inclusion of a new Smart Cities model, Staff and Neighbors Abroad can work to attract a broader range of citizens to volunteer in the efforts. Given the background and meetings between the City of Palo Alto and the City of Heidelberg, a short term Smart City Partnership between the two cities is a good chance to experiment with a new model and a chance to develop some measurable results. Additionally, Staff anticipates using it as a test case to draw new people and interest into our collaboration with Neighbors Abroad. A draft of a non-binding and exploratory agreement with Heidelberg was created for the Council’s consideration and approval, and is attached as (Attachment 5) Government Innovation and Entrepreneurship Fellowship Staff is also seeking the Council’s direction to work with Stanford to explore the interest in designing a fellowship that would focus on innovations in local government and entrepreneurialism. Staff would develop a framework for a potential program and return to Council for discussion/ action at a later time. Timeline Staff intends to return to Council with an update in the first quarter of 2014. Resource Impact Some staff time will be dedicated to this effort. it is likely that additional resources may be requested as part of any further staff recommendations, especially the creation of a Government Innovations/ Entrepreneurship Fellowship. City of Palo Alto Page 8 Additional Sources [1] www.sister-cities.org/mission-and-history [2] www.neighborsabroad.org [3] http://www.cities- localgovernments.org/committees/cdc/Upload/formations/smartcitiesstudy_en.pdf Attachments:  Attachment 1: Excerpt Minutes 10-22-12 (Heidelberg Presentation) (JPG)  Attachment 2: Excerpt Minutes 12-17-12 (Yangpu Partnership and Direction for Study Session) (PDF)  Attachment 3: Yangpu Partnership Agreement_Final (PDF)  Attachment 4: Heidelberg Presentation 10-12 PPT (PPTX)  Attachment 5: Heidelberg-Palo Alto Draft MOU_7-1-13 (DOCX)  Attachment 6: Heidelberg Climate Protection Commitment (PDF) CITY OF PALO ALTO CITY COUNCIL EXCERPT MINUTES Page 1 of 4 Special Meeting August 12, 2013 Review of the City of Palo Alto/Neighbor's Abroad Sister Cities Program, Discussion of International Relationships Strategy, Authorization to Engage in a Non-Binding "Smart Cities Partnership Agreement" with the City of Heidelberg, Germany, and Direction on Exploring Future "Smart City" Partnerships. Thomas Fehrenbach, Manager of Economic Development, reported the intent of the item was to build a framework and strategy for choosing cities and regions for partnership and methods to measure success. Staff sought Council direction to work with Neighbors Abroad and other volunteer leaders to explore a new model for future global partnerships. The first part of the recommendation authorized the Mayor to execute a Smart Cities Partnership Agreement with Heidelberg, Germany. Staff would utilize the non-binding agreement as a test case for a new model of partnership and work with Neighbors Abroad and other community members who supported the partnership. The idea was to build a structure for a fruitful exchange and to measure outcomes. If approved, the Mayor and Council Members would sign the agreement in October 2013 in Germany. Staff recommended the Council discuss the Bay Area Council's invitation to participate in the U.S.- China Symposium in October 2013 in Shanghai, China. The conference aligned with the City's current exploratory agreement with the Yangpu District in Shanghai. Staff could work with Stanford University to explore creation of a Local Government Innovations and Entrepreneurship Fellowship in the City Manager's office. That position could be mirrored at the University of Aalto in the City of Espoo, Finland. Staff could return to the Council in early 2014 with any plans for a fellowship. Staff requested Council direction to work with Neighbors Abroad to determine whether current sister cities were interested in a new relationship. Robert Moss felt the potential agreement with Yangpu regarding technological and scientific information could be a problem. Bing Wei, Bay Area Council, stated the agreement was designed to provide a broad structure for partnership. She supported the City signing an agreement with the City of Heidelberg. MINUTES Page 2 of 4 City Council Meeting Excerpt Minutes: 8/12/13 Vice Mayor Shepherd asked why Heidelberg would be considered a test case when the Yangpu agreement was in place. Mr. Fehrenbach indicated the cultural and business differences between the US and China allowed for the building of cultural understanding. Because the City had worked with Heidelberg over the past few years, the relationship was more tangible. MOTION: Vice Mayor Shepherd moved, seconded by Council Member Kniss to: 1) authorize the Mayor to execute the attached “Smart Cities Partnership Agreement” (Attachment 5) with the City of Heidelberg, Germany at a ceremony to be held in October 2013; 2) discuss the Bay Area Council’s invitation to the Mayor and/or other Council Members to represent the Council in the US-China Collaboration Symposium in October 2013, with special focus on the Smart Cities Conference in Yangpu, Shanghai; 3) direct Staff to work with Stanford University to explore the creation of a Government Innovations and Entrepreneurship Fellowship; and 4) direct staff to work in collaboration with Neighbors Abroad and other community volunteers to explore the addition of the “Smart City” concepts to existing Sister Cities who might be interested. Vice Mayor Shepherd believed the City should work with Neighbors Abroad to develop economic relationships. She reported on the student exchange with Yangpu. A closer relationship with Yangpu would provide good experiences. Palo Alto had a natural synergy with Heidelberg's green energy. All Council Members were invited to the symposium in Shanghai. Council Member Kniss indicated Neighbors Abroad made a difference in the cultural aspects of Sister Cities. The new model provided an opportunity to interact on a different level with Sister Cities. Council Member Price inquired whether Staff would provide additional details concerning the fellowship position with Espoo, Finland. Mr. Fehrenbach reported the partnership with Stanford University to create the fellowship was a concept at the current time. Staff requested Council direction to explore that opportunity. Council Member Price inquired about the expenses Council Members were expected to pay for the trips to Germany and China. Mr. Fehrenbach stated Council Members were expected to pay their expenses. The Bay Area Council provided a reduced rate. MINUTES Page 3 of 4 City Council Meeting Excerpt Minutes: 8/12/13 Council Member Price asked if Staff would present information regarding resources needed to work on these programs. Mr. Fehrenbach could return with information for Council consideration. Council Member Holman expressed concern about the impact of these programs on City resources. SUBSTITUTE MOTION: Council Member Holman moved, seconded by Council Member Klein to go forward with Staff recommendations 1 and 3 at this time: 1) authorize the Mayor to execute the attached “Smart Cities Partnership Agreement” (Attachment 5) with the City of Heidelberg, Germany at a ceremony to be held in October 2013; and 3) direct Staff to work with Stanford University to explore the creation of a Government Innovations and Entrepreneurship Fellowship. Council Member Holman felt proceeding in phases was prudent. Because of earlier Council comments, Recommendation Numbers 1 and 3 were logical first steps. Council Member Klein agreed the future was global partnerships. However, the Council needed to define its goals and determine metrics and resource impacts. He did not understand why Recommendation Number 2 needed Council action. Pamela Antil, Assistant City Manager, recalled that previously the Council decided Council Members would pay for travel. Staff provided Recommendation Number 2 to allow the Council to discuss payment of expenses. Council Member Schmid was excited by the prospect of building relationships with foreign cities. The intent was to build relationships with respect to technology, innovation and sustainability. One of the goals of the Heidelberg partnership was to assist businesses, which was not the City's responsibility. With respect to sustainability, exchanges with Heidelberg would benefit the City. He was attracted to Recommendation Number 3, because of the potential flow of ideas regarding government operations. That type of relationship could be valuable to the Council. Council Member Berman supported the Substitute Motion in order to understand the Smart City concepts and to solidify those concepts with a few cities. MINUTES Page 4 of 4 City Council Meeting Excerpt Minutes: 8/12/13 Mayor Scharff agreed with limiting action to Recommendation Numbers 1 and 3. The Substitute Motion did not preclude acting on Recommendation Number 4 once relationships were solidified with concrete proposals. Council Member Burt recommended the primary focus of the relationships relate to technology, innovation and government and best practices in sustainable cities. Heidelberg implemented innovative technologies that could benefit Palo Alto. He supported the Substitute Motion. Vice Mayor Shepherd wanted to include Recommendation Number 2 to allow Council discussion regarding payment of expenses. Recommendation Number 4 should be implemented to build a better relationship with Neighbors Abroad. Council Member Price supported the Substitute Motion. She acknowledged the important relationships built with Yangpu and China and the fine work of Neighbors Abroad. Because of impacts to City resources, she preferred to focus on Recommendation Numbers 1 and 3. With additional experience, the City could ensure future relationships were successful and mutually beneficial. Council Member Holman requested Staff provide possible funding sources for Council trips. SUBSTITUTE MOTION PASSED: 7-2 Kniss, Shepherd no ADJOURNMENT: The meeting was adjourned at 10:45 P.M.