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HomeMy WebLinkAboutStaff Report 2509-5196CITY OF PALO ALTO CITY COUNCIL Monday, October 20, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     7.Approve Contract Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) in the Amount of $26,775 for one Additional Poll (Four Polls, Total) for the Potential November 2026 Ballot Measure for a Total Not to Exceed Amount of $153,000 and Approve Budget Amendments in the General Fund and the Cubberley Property Infrastructure Fund; CEQA Status: Not a Project City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: October 20, 2025 Report #:2509-5196 TITLE Approve Contract Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) in the Amount of $26,775 for one Additional Poll (Four Polls, Total) for the Potential November 2026 Ballot Measure for a Total Not to Exceed Amount of $153,000 and Approve Budget Amendments in the General Fund and the Cubberley Property Infrastructure Fund; CEQA Status: Not a Project RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or designee to execute Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) (Attachment A) for one additional poll in an amount not-to-exceed $26,775 for consultant services related to the November 2026 ballot measure for the Cubberley Project. This amendment results in a revised total contract not-to-exceed amount of $153,000 and 2. Amend the FY 2026 Budget Appropriation (requires 2/3 approval) for the : a. General Fund by: i. Increasing the transfer to the Cubberley Property Infrastructure Fund by $700,000, and ii. Decreasing the Real Property Investment Reserve by $700,000 b. Cubberley Property Infrastructure Fund by: i. Increasing the transfer from the General Fund by $700,000, and ii. Increasing the Cubberley Community Center Redevelopment Capital Improvement Project (CB-26000) by $700,000. BACKGROUND Fairbank, Maslin, Maullin, Metz, and Associates (FM3) is engaged to conduct public opinion research on the November 2026 ballot measure for the Cubberley Project. Staff’s updated workplan presented to the City Council on June 10, 20251 included three rounds of polling: the first poll released in April 2025, the second released November 2025, and the third and final released in April 2026. The contract with FM3 was approved by the City Council on February 24, 20242 and totaled $126,225. These services were exempted from solicitation under the City Manger’s authority (PAMC 2.30.360(b)(2) based on timelines established in the Cubberley workplan and known expertise of FM3 with the City and other surrounding areas. As the Cubberley project has advanced a fourth poll is now recommended. Adding a fourth poll increases the total not-to-exceed amount of the contract from $126,225 to $153,000. The original FM3 contract was one of several contracts funded by the General Fund Real Property Reserve that was established to support real property acquisition activities. The FY 2025 Adopted Operating Budget included $1.0 million and the FY 2026 Adopted Operating Budget includes $0.7 million for this reserve. Various Council actions in FY 2025 transferred the $1.0 million reserve to the Cubberley Community Center Redevelopment CIP Project (CB- 26000)2,3,4. Funding is to be used for the Cubberley Master Plan, CEQA environmental review, public opinion research activities, ballot measure strategy consulting services and other associated costs. ANALYSIS On August 5, 2025, staff met with the Cubberley Ad Hoc Committee and recommended that an additional poll be added to the workplan. In the first poll, likely voters communicated three priorities in support of a bond measure: 1.Building Standards: Palo Alto residents deserve a community center that is modern, safe, and accessible to the entire community, 2.Early Childhood Education: this project will create a dedicated space for childcare and early childhood education for families from all walks of life, and 3.Affordability: Palo Alto should invest in creating an affordable, accessible place where people can gather to learn, play, read, enjoy the arts, experience joy, and connect with one another. The additional poll will assist with narrowing concepts and priorities to help inform the Cubberley master planning process and develop the ballot measure question. Staff will discuss the next and second round of polling during the October 20, 2025 Cubberley Project Study Session. The next, or second poll, will be launched in early November 2025. The third poll will 1 City Council, June 10, 2025: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83442 2 City Council, February 24, 2025: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83267 3 City Council, December 2, 2024: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83117 4 City Council, December 16, 2024: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83167 be launched in February/March 2026, and the final round launched in May 2026. The third and the final rounds of polling will test potential ballot measure language. FISCAL/RESOURCE IMPACT Table 1: Estimated Cubberley Costs FY 2025 FY 2026 Council Status Total Costs Master Plan Update (Concordia) $631,966 Approved $631,966 CEQA Environmental Review (Rincon) 202,322 Approved 202,322 Ballot Measure Polling (FM3)43,988 $109,012 $26,775 Contract Amendment Pending 153,000 Strategy Consultant (Lew Edwards Group) 27,000 81,000 Approved 108,000 Municipal Advisor (PFM)20,000 Below Authority Level 20,000 Legal Counsel 85,000 Below Authority Level 85,000 Geotech and Surveying 17,545 Below Authority Level 17,545 Engagement & Outreach Materials 13,795 51,000 Below Authority Level 64,795 Limited Term Staff Augmentation 100,000 Pending 100,000 General Expenses 100,000 Pending 100,000 Contractual Services 217,372 Pending 217,372 Total Estimated Costs $919,071 $780,929 $1,700,000 STAKEHOLDER ENGAGEMENT Community outreach and stakeholder engagement efforts for the project have been extensive and remain a central component of the overall process. The current focus is to encourage robust community participation through master planning meetings and associated polling activities. ENVIRONMENTAL REVIEW California Environmental Quality Control Act (CEQA) review is underway for the Cubberley Master Plan Project and will be brought to the City Council at a future date. Council action on this item is not a project defined by CEQA because voter polling is organizational administrative activity that will not result in a direct or indirect physical change in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: Amendment No 1 to Contract No. C25193598 with FM3 APPROVED BY: Lauren Lai, Administrative Services Director Vers.: Aug. 5, 2019 Page 1 of 10 AMENDMENT NO. 1 TO CONTRACT NO. C25193598 BETWEEN THE CITY OF PALO ALTO AND FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES, INC. This Amendment No. 1 (this “Amendment”) to Contract No. C25193598 (the “Contract” as defined below) is entered into as of October 20, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES, INC., a California Corporation, located at 2054 University Ave., Suite 600, Berkeley CA 94704 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of assessing and conducting research on public responses in connection with development of a Master Plan and placement of a General Obligation Bond Measure on the November 2026 Election Ballot for the Cubberley Project (the “Project”), as detailed therein. B. The Parties now wish to amend the Contract in order to (1) add to the Scope of Services, (2) conduct additional On-call Services by increasing the total not-to-exceed compensation amount by Twenty Six Thousand Seven Hundred and Seventy Five Dollars ($26,775) from One Hundred Twenty Six Thousand Two Hundred Twenty Five Dollars ($126,225) to a new not-to-exceed compensation amount of One Hundred Fifty Three Thousand Dollars ($153,000), (3) update the Schedule of Performance and (4) update schedule of rates, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C25193598 between CONSULTANT and CITY, dated February 24, 2025. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4, “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 2 of 10 The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Fifty-Three Thousand Dollars ($153,000). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Zero ($0) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Fifty-Three Thousand Dollars ($153,000), as detailed in Exhibit C. “Additional Services” means 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. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 3 of 10 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 4 of 10 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee FAIRBANK, MASLIN, MAULLIN, METZ & ASSOCIATES, INC. Officer 1 By: Name: Title: Officer 2 By: Name: Attachments: EXHIBIT “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) EXHIBIT “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) EXHIBIT “C” entitled “COMPENSATION, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Miranda Everitt Partner Partner and COO Curt Below Vers.: Aug. 5, 2019 Page 5 of 10 EXHIBIT A SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. CONSULTANT shall conduct research assessing potential approaches for the CITY to consider in the Cubberley Project and in the November 2026 election. Research will be performed as follows: Task 1: CONSULTANT shall conduct surveys with the following specifications: Questionnaire: Four (4) 15-to 20-minute questionnaires to assess public reactions to various components of a potential tax options. Work includes drafting polling outlines and questions, for staff, political strategy consultant, and City Council review, prior to conducting the surveys. Methodology: Dual-mode survey obtaining interviews via cell phone, landline, email and text message invitation Sample 400 to 600 voters likely to participate in the November 2026 election Questionnaire 15 to 20 minutes Community Engagement and Outreach for the Site Master Plan: a) A community needs survey to assess perceived need for funding for a community center, and priorities in its design. This survey could also evaluate voter willingness to pay at the household level for a new center. The survey could also track key community satisfaction questions such as quality of life, satisfaction with specific services, and/or approval ratings for specific departments, as well as any other topics of interest to the city. Potential General Obligation Bond Measure: Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 6 of 10 b) A baseline survey to assess potential ballot measure language, willingness to pay at the household level, the importance of a range of project elements, and messaging for and against a measure. This could be conducted early in 2026. c) A tracking survey in the weeks before a ballot measure placement vote, assessing viability of the 75-word title and summary, tracking key perceptions, and messaging for and against a measure. A tracking survey is typically shorter than a baseline survey, and often has a slightly smaller sample size. Task 2: Following completion of the survey, the CONSULTANT shall provide the following deliverables: • A questionnaire with the topline results of the survey for easy reference. • A complete set of crosstabs in an easy-to-read, comprehensive format. • Verbatim responses to any open-ended questions. • A complete analysis of survey results in PowerPoint. • A presentation of the survey results. Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 7 of 10 EXHIBIT B SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) 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. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Number of Days/Weeks (as specified below) 1. a. Assess Community Needs Summer 2025 2. b. Baseline for Potential Ballot Measure Fall 2025/2026 3. c. Tracking for Potential Ballot Measure Winter/Spring 2026 4. d. Tracking for Potential Ballot Measure Spring/Summer 2026 Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 8 of 10 EXHIBIT C COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for 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 rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT $153,000 0 Total for Services and Reimbursable Expenses $153,000 Maximum Total Compensation $153,000 Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 9 of 10 REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Vers.: Aug. 5, 2019 Page 10 of 10 EXHIBIT C-1 SCHEDULE OF RATES COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT’s schedule of rates is as follows: Hourly Rate Tier $230 Partner $170 Senior Vice President $145 Manager $115 Senior Analyst/Researcher $90 Analyst $60 Administrative/Associate Docusign Envelope ID: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Certificate Of Completion Envelope Id: E078DD8F-4C5A-4701-83BE-5D85D4FD7D93 Status: Completed Subject: Complete with Docusign: Final Amend No.1 (C25193598) FM 3.pdf Source Envelope: Document Pages: 10 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Alice Harrison AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 alice.harrison@paloalto.gov IP Address: 170.85.54.83 Record Tracking Status: Original 9/23/2025 10:49:14 AM Holder: Alice Harrison alice.harrison@paloalto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: Docusign Signer Events Signature Timestamp Miranda Everitt Miranda@fm3research.com Partner Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 150.252.241.8 Sent: 9/23/2025 10:52:55 AM Resent: 9/23/2025 11:09:24 AM Viewed: 9/23/2025 11:10:21 AM Signed: 9/23/2025 11:10:50 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Curt Below Curt@fm3research.com Partner and COO Security Level: Email, Account Authentication (None)Signature Adoption: Drawn on Device Using IP Address: 150.252.241.1 Sent: 9/23/2025 11:10:51 AM Viewed: 9/23/2025 11:26:14 AM Signed: 9/23/2025 11:26:24 AM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cayla Koga cayla.koga@paloalto.gov Administrative Assistant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 9/23/2025 11:26:25 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Carbon Copy Events Status Timestamp Christine Paras christine.paras@paloalto.gov Asst. Director Administrative Services City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 9/23/2025 11:26:26 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Alyssa Ching alyssa.ching@paloalto.gov Administrative Assistant Security Level: Email, Account Authentication (None) Sent: 9/23/2025 11:26:26 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/23/2025 10:52:56 AM Envelope Updated Security Checked 9/23/2025 11:09:23 AM Envelope Updated Security Checked 9/23/2025 11:09:23 AM Envelope Updated Security Checked 9/23/2025 11:09:24 AM Certified Delivered Security Checked 9/23/2025 11:26:14 AM Signing Complete Security Checked 9/23/2025 11:26:24 AM Completed Security Checked 9/23/2025 11:26:26 AM Payment Events Status Timestamps