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HomeMy WebLinkAbout2023-08-08 Policy & Services Committee Agenda PacketPOLICY AND SERVICES COMMITTEE Regular Meeting Tuesday, August 08, 2023 Council Chambers & Hybrid 7:00 PM Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621) Meeting ID: 946 1874 4621    Phone: 1(669)900‐6833 PUBLIC COMMENTS Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the  Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. CALL TO ORDER PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda.  ACTION ITEMS 1.Approval of Office of City Auditor FY2024 Task Orders; CEQA Status – Not a project 2.Receive and Discuss the Seismic Risk Assessment Study and Seismic Hazards Identification Ordinance Update 3.Referral: Discussion of City Council Procedures and Protocols Censure Policy FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN    Meeting ID: 946‐1874‐4621   Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 1 Regular Meeting August 08, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org POLICY AND SERVICES COMMITTEERegular MeetingTuesday, August 08, 2023Council Chambers & Hybrid7:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621)Meeting ID: 946 1874 4621    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the  Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted. CALL TO ORDER PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda.  ACTION ITEMS 1.Approval of Office of City Auditor FY2024 Task Orders; CEQA Status – Not a project 2.Receive and Discuss the Seismic Risk Assessment Study and Seismic Hazards Identification Ordinance Update 3.Referral: Discussion of City Council Procedures and Protocols Censure Policy FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to CLICK HERE TO JOIN    Meeting ID: 946‐1874‐4621   Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at(650)329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 2 Regular Meeting August 08, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org POLICY AND SERVICES COMMITTEERegular MeetingTuesday, August 08, 2023Council Chambers & Hybrid7:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621)Meeting ID: 946 1874 4621    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the  Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.CALL TO ORDERPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. ACTION ITEMS1.Approval of Office of City Auditor FY2024 Task Orders; CEQA Status – Not a project2.Receive and Discuss the Seismic Risk Assessment Study and Seismic HazardsIdentification Ordinance Update3.Referral: Discussion of City Council Procedures and Protocols Censure PolicyFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s) ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to CLICK HERE TO JOIN    Meeting ID: 946‐1874‐4621   Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at(650)329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 3 Regular Meeting August 08, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org 2 7 6 8 Policy & Services Committee Staff Report From: City Auditor Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: August 8, 2023 Report #:2307-1786 TITLE Approval of Office of City Auditor FY2024 Task Orders; CEQA Status – Not a project BACKGROUND The City Auditor recommends that the Policy & Services Committee recommend City Council approval for the following Task Orders: 1) FY24-Task 01 – Citywide Risk Assessment 2) FY24-Task 02 – Annual Audit Plan 3) FY24-Task 03 – External Financial Auditor 4) FY24-Task 05 – Various Reporting & City Hotline 5) FY24-Task 06 – Evaluation and Benchmarking ANALYSIS In accordance with our agreement with the City1 including Amendment No. 1 to the contract2, Baker Tilly is required to conduct recurring activities each year. Those recurring activities including the following tasks outlined in our agreement: •Task 1: Citywide Risk Assessment •Task 2: Preparation of Annual Audit Plan •Task 3: Assist with Selection of a Financial Auditor and Assist in Managing the Financial Audit •Task 5: Various Tasks including periodic reporting, fraud/waste/abuse hotline, office administrative functions 1 September 28, 2020: Baker Tilly Contract Approval - https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11624.pdf?t=64761.15 2 May 9, 2022: Baker Tilly Contract Amendment No. 1 Approval - https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220509/20220509pccsmamended-linked.pdf Item 1 Item 1 Staff Report     Packet Pg. 4     2 7 6 8 •Task 6: Evaluation and Benchmarking The Office of the City Auditor (OCA) is seeking approval from the Policy & Services Committee of the Tasks Orders that correspond to the Tasks outlined above and recommendation to forward these task orders to the City Council for approval. The Task Orders provide the contractual authority to begin this work in the new Fiscal Year 2024. An excerpt from the contract outlining these tasks is below for ease of reference. Task 1 “Beginning with year 1 and continuing at a minimum every other year thereafter, prepare a citywide risk assessment following the same review and approval requirements described in Task 2. The risk assessment process will be the primary determinant of subsequent audit activity.” Task 2 “Prepare an annual audit plan for review by the City Manager and appropriate City Council committee(s), and approval by the City Council, that identifies preliminary objectives of each audit to be performed, the schedule for each audit, and the estimated not to exceed resources and costs for each audit. The City Auditor shall consult with the City Attorney as necessary when developing audit plans. The annual audit plan will be largely based on the risk assessment required in Task 1.” Task 3 “Selection of External Financial Auditor and Annual Audit Coordination: Coordinate the annual external financial audit in each year of the contract term. Pursuant to the City Charter, the City Auditor shall oversee the selection process for the annual external financial auditor.” Task 5 “Preparation of Quarterly Reports, Annual Status Report, Provision of City Hotline, and Other Ongoing Office Administrative Functions: Prepare and issue quarterly reports describing the status and progress toward audit completion, to be provided as information reports to the City Council and reviewed by the appropriate committee, unless other reporting methods are directed by Council. Prepare and issue an annual report in the first quarter of each fiscal year on the status of recommendations made in completed audits, to be provided as an information report to the City Council and reviewed by the appropriate committee, unless other reporting methods are directed by Council. Maintain and respond to the City’s employee “hotline” function provided through voicemail, email or written submissions. Coordinate referrals as appropriate to other City offices, departments or divisions and incorporate relevant referrals into future risk assessments, audit plans or audit activity as appropriate.” Item 1 Item 1 Staff Report     Packet Pg. 5     2 7 6 8 This task provides for authorization of travel during the full 2024 fiscal year assuming a trip every other month (total of 6 trips). Although the contract stipulated an on site presence every two weeks by the Office of the City Auditor, leveraging remote work efficiencies and ensuring economical use of contract authority and funds, this task order revises that frequency. Baker Tilly will use discretion to ensure travel is used to minimize travel expenses and maximize effectiveness of time on site, ultimately ensuring alignment with audit work schedules and Council and Committee activities. Additionally, the current contract, Amendment NO.13, includes the budget schedule for FY 2023, FY 2024, and FY 2025 that shows a budget amount of $60,000 each year for Task 5. The main activities related to this task have been meetings with management and City Council members and preparing staff reports for City Council and Committee meetings. However, Baker Tilly needs to perform other activities normally performed by the Internal Audit function, namely, engagement project management and annual audit plan monitoring. Therefore, the Maximum Compensation Amount in the proposed task order for Task 5 is $90,000 that includes a $30,000 transfer from the Task 4 budget amount of $582,250 shown in the current contract. Task 6 “Undergo a peer evaluation following the guidelines of the Association of Local Government Auditors every two years (i.e., at the end of the initial contract term, then every other year thereafter throughout the contract term), or as required by the City Council, so that performance of the internal audit function can be objectively assessed. Prepare a cost per audit analysis following the first completed fiscal year, to be submitted at the beginning of the second fiscal year and every year thereafter throughout the contract term, that includes benchmark agencies determined by the CITY, and obtain independent third-party certification of data accuracy. The cost per audit analysis will be used to evaluate the cost effectiveness of services provided by the CONSULTANT. This evaluation will be incorporated into ongoing performance assessments as required and will help ensure that fees for service provision throughout the duration of the Agreement are objectively determined and mutually agreed upon. This evaluation and report from the peer evaluator will be presented to the Policy and Services Committee and City Council in alignment with typical audit reporting activities.” The current contract, Amendment NO.1, includes the budget schedule that shows Task 6 budget amounts of $21,000, $6,000, and $21,000 for FY 2023, FY 2024, and FY 2025, respectively. In preparation for and support of a peer evaluation in FY 2024, the Maximum 3 May 9, 2022: Baker Tilly Contract Amendment No. 1 Approval - https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220509/20220509pccsmamended-linked.pdf Item 1 Item 1 Staff Report     Packet Pg. 6     2 7 6 8 Compensation Amount in the proposed task order for Task 6 is $24,000 that includes a $18,000 transfer from the Task 4 budget amount of $582,250 shown in the current contract. As a result of transfers to Task 5 and Task 6, the remaining Task 4 budget amount is to be adjusted to $534,250 for which an audit plan will be presented to the Policy and Services Committee and City Council in coming months. The table below summarizing two budget amount transfers from Task 4 to Task 5 and Task 6 shows the net effect on the total contract value is $0. FISCAL/RESOURCE IMPACT Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY 2024 Operating Budget for the Office of the City Auditor. STAKEHOLDER ENGAGEMENT No stakeholder outreach was necessary to create task orders for the tasks described in the signed contract. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the Auditor task orders are administrative activities that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: TASK ORDER FY24-01 Citywide Risk Assessment Attachment B: TASK ORDER FY24-02 Annual Audit Plan Attachment C: TASK ORDER FY24-03 External Financial Auditor Attachment D: TASK ORDER FY24-05 Various Reporting & City Hotline Attachment E: TASK ORDER FY24-06 Evaluation and Benchmarking APPROVED BY: Adriane D. McCoy, City Auditor FY 2023-24 Budget per Amendment 1 Transfer Updated Budget Amount Task 4 $582,250 -$48,000 $534,250 Task 5 $60,000 $30,000 $90,000 Task 6 $6,000 $18,000 $24,000 TOTAL $648,250 $0 $648,250 Item 1 Item 1 Staff Report     Packet Pg. 7     PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-01 Citywide Risk Assessment Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order 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. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-01 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: November 1, 2023 COMPLETION: June 30, 2024 4 TOTAL TASK ORDER PRICE: $35,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 1 Attachment A - TASK ORDER FY24-01 Citywide Risk Assessment     Packet Pg. 8     Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting the Citywide Risk Assessment involves four (4) primary steps:  Step 1: Project Planning & Management  Step 2: Information Gathering  Step 3: Analysis  Step 4: Reporting Step 1 – Project Planning & Management This step includes those tasks necessary to solidify mutual understanding of the risk assessment scope, objectives, deliverables, and timing as well as ensuring that appropriate client and consultant resources are available and well-coordinated. Tasks include:  Finalize project design – The first project activities will be to: o Identify communication channels and reporting relationships and responsibilities of project staff o Review and confirm project timelines o Review and confirm deliverables  Arrange logistics/administrative support – Matters to be addressed include schedules for interviews and data collection, contact persons in the departments, any other logistical matters, etc.  Conduct kick-off meeting with key project stakeholders Step 2 – Information Gathering This step involves gathering information, through various means, that will enable the project team to understand the various risks facing the City. Tasks include:  Request and review background information – the project team will develop an information request(s) in order to obtain various background information from the City. The request will include, but not be limited to: Item 1 Attachment A - TASK ORDER FY24-01 Citywide Risk Assessment     Packet Pg. 9     o Strategic plan(s) o Financial reports, including the most recent City Budget and Comprehensive Annual Financial Report (CAFR) o Operational policies and procedures o Municipal code o Consulting reports o Other relevant information and reports  Conduct interviews with City Council and management o Risk assessment interviews, aimed at understanding City functions and identifying risks, will be conducted with City Council members as well as department and division  Conduct a risk assessment survey, if necessary  Conduct research into key risks in order to identify relevant information to assess risks Overall, the project team will consider the risk categories including:  Strategic  Financial  Technology  Human Capital  Operational  Reputational  Economic  Compliance Step 3 – Risk Analysis In Step 3, the project team will develop a risk assessment consisting of auditable areas (also referred to as an audit or risk universe). The risk assessment will be prepared in consideration of the following risks types:  Environment, Strategy, and Governance – risks that have an organization wide impact and are not subject to a specific department or function (e.g., ethics)  Significant Projects and Initiatives – risks associated with large projects (e.g., capital projects, technology implementation) or City initiatives (e.g., employee engagement initiative).  Function Specific Risks – risks associated with a specific department or function (e.g., procurement policy compliance) The project team will assess the likelihood and impact of potential adverse events in order to quantitatively score each auditable area for purposes of prioritizing audit activities. Step 4 – Reporting In Step 4, the project team will finalize the draft Risk Matrix and prepare a draft Risk Assessment Report. The project team will ask for input (general completeness, risk scoring) on the Risk Matrix from key project stakeholders. Upon finalization of the Risk Matrix, the project team will finalize the Risk Assessment Report. Item 1 Attachment A - TASK ORDER FY24-01 Citywide Risk Assessment     Packet Pg. 10     Deliverables: The following deliverables will be prepared as part of this engagement:  Risk Assessment Report  Presentation of Results to City Council (note that this may be combined with presentation of the Task 2 Annual Audit Plan) Schedule of Performance Anticipated Start Date: November 1, 2023 Anticipated End Date: June 30, 2024 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $35,000. The not-to-exceed budget is based on an estimate of 200 total project hours, of which 20 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto. Item 1 Attachment A - TASK ORDER FY24-01 Citywide Risk Assessment     Packet Pg. 11     PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-02 Annual Audit Plan Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order 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. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-02 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: November 1, 2023 COMPLETION: June 30, 2024 4 TOTAL TASK ORDER PRICE: $10,500 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 1 Attachment B - TASK ORDER FY24-02 Annual Audit Plan     Packet Pg. 12     Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to preparing the Annual Audit Plan involves two (2) primary steps:  Step 1: Consultation with City Council and Management  Step 2: Reporting Step 1 – Consultation with City Council and Management The Risk Matrix and Risk Assessment Report will serve as the primary drivers of the Annual Audit Plan. The project team will initiate discussions over Risk Assessment results, potential audit activities, and audit coverage with City Council and Management. The purpose of those conversations will be to understand the priorities of City Council, and to develop a Draft Annual Audit Plan: The Draft Annual Audit Plan will identify the following components for each audit activity:  Audit activity type – audit or consulting activity  Audit objectives and scope  Anticipated budget – both in terms of hours and budget  Anticipated timeline Step 2 – Reporting The project team will present the Draft Annual Audit Plan to the City Council in order to obtain input on each potential audit activity. Upon refining the plan, the project team will finalize the Annual Audit Plan for presentation to City Council. Deliverables The following deliverable will be prepared as part of this engagement:  Annual Audit Plan Item 1 Attachment B - TASK ORDER FY24-02 Annual Audit Plan     Packet Pg. 13     Schedule of Performance Anticipated Start Date: November 1, 2023 Anticipated End Date: June 30, 2024 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $10,500. The not-to-exceed budget is based on an estimate of 50 total project hours, of which 10 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto. Item 1 Attachment B - TASK ORDER FY24-02 Annual Audit Plan     Packet Pg. 14     PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-03 External Financial Auditor Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order 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. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-03 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024 4 TOTAL TASK ORDER PRICE: $15,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 1 Attachment C -TASK ORDER FY24-03 External Financial Auditor     Packet Pg. 15     Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to the Office of the City Auditor’s role on the financial audit involves one (1) primary step in FY23:  Step 1: Assistance in Managing the Financial Audit Step 1 – Role in Managing the Financial Audit In FY23, the project team will assist in managing the financial audit and presenting financial audit results to the Finance Committee and to the City Council, in accordance with municipal code. Deliverables: Legislative documents will be prepared to present the financial statements and reports prepared by an external auditor to the Finance Committee Schedule of Performance Anticipated Start Date: July 1, 2023 Anticipated End Date: June 30, 2024 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $15,000. The not-to-exceed budget is based on an estimate of 40 total project hours, of which 40 are estimated to be completed by the City Auditor. Item 1 Attachment C -TASK ORDER FY24-03 External Financial Auditor     Packet Pg. 16     Reimbursable Expenses Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $3,250. The following summarizes anticipated reimbursable expenses:  Round-trip Airfare – $1,000  Ground Transportation (car rental or Uber/taxi) - $400  Hotel accommodation - $1,500 (4 nights)  Food and incidentals – $350 Item 1 Attachment C -TASK ORDER FY24-03 External Financial Auditor     Packet Pg. 17     PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-05 Various Reporting & City Hotline Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order 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. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-05 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024 4 TOTAL TASK ORDER PRICE: $90,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 1 Attachment D - TASK ORDER FY24-05 Various Reporting & City Hotline     Packet Pg. 18     Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly will provide the following services in Task 5:  Quarterly Reports  Annual Status Report  Provision of the City Hotline  Office Administrative Functions Deliverables: The following deliverable will be prepared as part of this engagement:  Quarterly Reports (4 in FY24)  Annual Status Report Schedule of Performance Anticipated Start Date: July 1, 2023 Anticipated End Date: June 30, 2024 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $90,000. The not-to-exceed budget is based on an estimate of 300 total project hours, of which 170 are estimated to be completed by the City Auditor. Reimbursable Expenses The City Auditor anticipates a trip every other month (total of 6 trips). Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $19,500. Item 1 Attachment D - TASK ORDER FY24-05 Various Reporting & City Hotline     Packet Pg. 19     The following summarizes anticipated reimbursable expenses:  Round-trip Airfare – $6,000 (6 round trip flights)  Ground Transportation (car rental or Uber/taxi) - $2,400  Hotel accommodation - $9,000 (24 nights)  Food and incidentals – $2,100 Item 1 Attachment D - TASK ORDER FY24-05 Various Reporting & City Hotline     Packet Pg. 20     PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-06 Evaluation and Benchmarking Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order 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. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-06 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024 4 TOTAL TASK ORDER PRICE: $24,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 1 Attachment E - TASK ORDER FY24-06 Evaluation and Benchmarking     Packet Pg. 21     Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to undergoing a peer review involves three (3) primary steps:  Step 1: Preparation for a peer review  Step 2: A peer review by an independent evaluator  Step 3: Cost per audit analysis Step 1 – Preparation for a peer review The Office of the City Auditor (OCA) will conduct a self-assessment before a peer review. Step 2 – A peer review by a qualified organization OCA will undergo a peer review conducted by an independent evaluator. In order to accomplish this task, OCA will:  Request a peer review from the Association of Local Government Auditors (ALGA)  Provide documents and answer questions as requested by ALGA  Obtain a peer review report from ALGA Step 3 – Cost per audit analysis OCA will prepare a cost per audit analysis. Deliverables: Legislative documents will be prepared to present a peer review report from an independent evaluator. Schedule of Performance Anticipated Start Date: July 1, 2023 Anticipated End Date: June 30, 2024 Item 1 Attachment E - TASK ORDER FY24-06 Evaluation and Benchmarking     Packet Pg. 22     Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $24,000. The not-to-exceed budget is based on an estimate of 95 total project hours, of which 25 are estimated to be completed by the City Auditor. Reimbursable Expenses Baker Tilly anticipates no travel costs. All procedures including interviews and documentation reviews are expected to be completed remotely. Item 1 Attachment E - TASK ORDER FY24-06 Evaluation and Benchmarking     Packet Pg. 23     2 6 7 7 Policy & Services Committee Staff Report From: Chantal Gaines, Deputy City Manager Meeting Date: August 8, 2023 TITLE Receive and Discuss Seismic Risk Assessment Study and Seismic Hazards Identification Ordinance Update RECOMMENDATION Staff recommend the Policy and Services Committee receive a report from staff on the 2016 Seismic Risk Assessment Study and discuss the Council-directed update to the Seismic Hazards Identification Ordinance. No action is recommended at this time. OVERVIEW This report updates the Policy and Services Committee on progress on the Seismic Hazards Ordinance update project; no Policy and Services Committee action is required or requested at this time. Staff recommends that the Policy and Services Committee review the Seismic Risk Assessment Study prepared by Rutherford + Chekene (R+C) (Attachment A), structural engineers. During the discussion, staff requests Committee members’ input regarding the proposed next steps. The Council identified the update of the seismic ordinance as a part of the Community Health and Safety Priority in January 2023. This item is further nested under “Invest in reliable safety infrastructure and systems.”1 EXECUTIVE SUMMARY As the Planning and Development Services Department (PDS) prepares to draft amendments and updates to the Palo Alto Municipal Code for the Regulation of Seismically Vulnerable Buildings, staff seeks to familiarize the Policy and Services Committee with the topic, resources needed, and gain high level input on the proposed action plan. The Seismic Risk Assessment was prepared in 2016 and made available to the City Council in 2017. Since that time, the composition of nearly the entire Council has changed significantly. Therefore, staff desired to reintroduce the topic and report contents to the Policy and Services Committee before undertaking outreach, pursuing consultants, and other work associated with prior Council direction. 1 https://medium.com/paloaltoconnect/council-adopts-extensive-objectives-building-upon-selection-of-2023-priorities- 13413012919e Item 2 Item 2 Staff Report     Packet Pg. 24     2 6 7 7 This report begins with the background section, giving a brief history of the project. That is followed by the policy implications, then a discussion of resources and draft work plan, and environmental review. That is followed by a summary of the Seismic Risk Assessment Study. This summary largely mirrors an informational report submitted to Council in April 2017. Lastly, the full study is provided as an attachment. Additional information can be found in additional prior reports linked throughout the report. Staff wishes to note that the City’s contract with the consultant team that prepared the studies has long since concluded. Staff regret that the consultant team is not available for preparation of this staff report or nor during the Committee’s discussion. BACKGROUND Concise Project History The effort to update the City’s seismic ordinance began with City Council direction in 2014. At that time, following the 6.0 magnitude earthquake in August 2014 in the Napa Valley and the Office of Emergency Service’s Threats and Hazard Identification and Risk Assessment Report, the Council directed staff to identify and prioritize buildings that pose a potential seismic hazard in Palo Alto; review ‘best practices’ used by other communities for addressing retrofit of seismically vulnerable buildings; and review current and pending State legislation addressing these building types. A competitive bidding process was conducted and Rutherford + Chekene was selected to perform a comprehensive assessment of the expected performance of the City’s building stock in potential earthquakes, including a community engagement effort to help identify resiliency goals and associated mitigation policies and programs. The study was prepared and provided to Council as an informational report on April 16, 2017. On November 13, 2017, via a consent item, the Council directed staff to “Return to Policy and Services Committee With Amendments to the Municipal Code for the Regulation of Seismic Vulnerable Buildings.” To accomplish this directive, staff will engage a consultant to assist with designing an updates seismic hazards identification and mitigation program. Staff will then bring forward proposed legislative changes (draft ordinance) to Council for consideration and ultimately adoption. Finally, once adopted staff will implement the policy (adopted ordinance) and associated seismic hazards identification program. Follow-up to this direction was subsequently hampered by limited resources, staff turnover, and other priorities. In fiscal years 2022-2023 and 2023-2024, the Council appropriated funding to the Planning and Development Services Department to carry out the update of the Palo Alto Municipal Code. The funds are designated to hire a consultant to aid in the development of the updated ordinance. Appropriated in fiscal years 2022-2023 and 2023-2024, the amount available totals $225,000. Staff will carry out a Item 2 Item 2 Staff Report     Packet Pg. 25     2 6 7 7 competitive procurement process, expecting to have a consultant team on board and ready to begin work by January 2024. Detailed Project History On September 15, 2014, the City Council directed staff to work with the Policy and Services Committee to address the following: A. Identification and prioritization of buildings that pose a potential hazard in an earthquake, including soft-story buildings and other types of construction B. Review of "best practices" from other cities regarding prioritization of various seismically vulnerable buildings, including retrofit incentives and requirements C. Review of current or pending State legislation related to soft-story buildings and other structurally deficient buildings Two events precipitated the Council’s direction: (1) the 6.0 magnitude earthquake on August 24, 2014, in Napa Valley and (2) the City Council’s review of the Office of Emergency Service’s Threats and Hazard Identification and Risk Assessment report on September 15, 2014, which identified over 130 seismically vulnerable buildings. Palo Alto Seismic Hazards Identification program In 1986, the City Council adopted the Seismic Hazards Identification Program codified at PAMC Section 16.42.2 This ordinance established a mandatory evaluation and reporting program and created incentives for property owners primarily in the Downtown area to voluntarily upgrade their structurally deficient buildings. Three categories of buildings were identified, including: 1. Category I Buildings: Buildings constructed of unreinforced masonry (except for those smaller than 1,900 square feet with six (6) or fewer occupants). These buildings are located in the Downtown Commercial area. 2. Category II Buildings: Buildings constructed prior to January 1, 1935, containing one hundred (100) or more occupants. 3. Category III Buildings: Buildings constructed prior to August 1, 1976, containing three hundred (300) or more occupants. The categories used in 1986 were developed by a citizens’ committee, reviewed by staff and the Policy and Services Committee, and adopted by the City Council. These categories were created to record known URM buildings and other potentially structurally deficient buildings with relatively high numbers of occupants. This program identified 89 buildings and was successful in two significant ways. One hundred percent 2 This section of the Palo Alto Municipal Code is available here: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-74168 Item 2 Item 2 Staff Report     Packet Pg. 26     2 6 7 7 (100%) of the property owners complied with the ordinance and submitted engineering reports detailing structural deficiencies and recommendations to strengthen structures to alleviate the threat of collapse. Further, as of 2017, approximately 74 percent (74%), or 66 buildings, were strengthened, demolished, or proposed to be demolished. An updated status of these buildings is being prepared in anticipation of releasing a request for proposals (RFP) for the consultant team for this phase of the project. Part of this success may be attributed to incentives that allowed upfront engineering report costs be applied toward permit fees and the ability for property owners in the Downtown Commercial (CD) district to add up to 2,500 square feet of new floor area, or twenty-five percent (25%) of the existing building area, whichever is greater, to the site without having to provide additional parking. This floor area bonus could be used onsite or transferred to another owner or property in the Downtown Commercial district. Approximately 21 property owners took advantage of this incentive. More recently, the City Council adopted an ordinance updating PAMC 18.18 modifying the seismic incentive so that parking must now be provided if an owner seeks to add 2,500 square feet or 25% of the total building area in the CD District. Despite its successes, some buildings identified from that original inventory remain vulnerable. Further, there are other building types in the City that were not surveyed prior to adoption of the 1986 ordinance. For example, problems with soft-story wood-frame construction were documented following the 1994 Northridge Earthquake, which resulted in changes to construction industry standards a few years later. In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an “Inventory of Soft-First Story Multi-Family Dwellings in Santa Clara County.” According to the report, the City of Palo Alto had 130 soft story multi-family buildings including 1,263 residential units housing 3,158 occupants. Other construction types of concern that were not surveyed in 1986 include non-ductile concrete buildings, older steel moment frame buildings, and older concrete tilt-up buildings, in addition to soft story wood-frame construction. The City’s existing ordinance requires annual reporting to the City Council on the status of the program. This reporting appears to have ended in 2004 for unknown reasons. The draft ordinance may consider reviving or adjusting the reporting requirement. Seismic Risk Assessment Study On December 9, 2014, the Policy and Services Committee of the Palo Alto City Council recommended the City Council authorize an RFP to develop information for use in updating the City’s Seismic Hazards Identification Program (Ordinance 3666). The City Council approved the recommendation, and staff prepared an RFP. Item 2 Item 2 Staff Report     Packet Pg. 27     2 6 7 7 A consulting team led by Rutherford + Chekene was selected to: A. Summarize relevant state and local seismic mitigation legislation B. Obtain detailed information on Palo Alto’s existing building stock C. Develop conceptual retrofits for vulnerable building types D. Make loss estimates of expected damage to current and retrofitted building E. Work with a City advisory group to develop policy recommendations for consideration by the Council. A stakeholder Advisory Group was convened and was an essential element in discussing earthquake risks in Palo Alto’s existing building stock prepared by the consultant team and in reviewing policy alternatives. Members included people with a range of relevant expertise and interests, including interested citizens, earthquake risk and engineering experts, local developers and owners, and representatives of various community groups. City departments also participated in the Advisory Group, including Building, Planning, Fire, Office of Emergency Services, and Public Works. See Attachment C for a list of Advisory Group members. A summary of the R+C report is provided after the “Environmental Review” section of this report. ANALYSIS Overall, an updated seismic ordinance aims to enhance the resilience of Palo Alto when seismic activity occurs. Decreasing the number of buildings that sustain significant damage from an earthquake and limiting the loss of life or injury that may occur are two ways the city can be more resilient. With more structures suitable for occupancy after an earthquake, the City and its residents can more quickly recover from the event. Further, with more multifamily structures habitable, fewer residents will be displaced after an earthquake. The desire to increase resilience, speed recovery, and limit the loss of life and limit property damage must be weighed against the risk earthquakes pose and balanced with the cost of retrofitting buildings. The R+C recommendations aim to balance resilience and recovery with risk and cost. As the report further elaborates, different communities have balanced these objectives in a variety of ways. Ranging from developing completely voluntary retrofitting programs to mandatory retrofitting programs where the retrofits must occur within a fixed timeline. Likewise, other California communities have created a range of incentives and/or financing options to help property owners retrofit more cost effectively. These range from local development standards or incentives (such as permit fee reduction, additional development rights, etc.) to tailored financing programs. As Council seeks to create safer buildings, especially dwelling units, this goal must be balanced with the real costs property owners will incur to retrofit their buildings. Without appropriate incentives, available financing, or other policy mechanisms, the costs of retrofits may be passed on to tenants in the form of increased rents. Even if these financing tools are available additional policies may be considered to limit the impact retrofitting may have on tenant rents. Item 2 Item 2 Staff Report     Packet Pg. 28     2 6 7 7 Proposed Action Steps This section describes actions staff anticipate, pending Committee discussion and further Council direction. In addition, this section notes decision points when Council direction will be needed to advance the project. The following list outlines a high-level action plan, with associated sequencing of steps. Of note, there is some overlap between action steps. Staff look forward to the Policy and Services Committee’s suggestions on the proposed action steps. •Develop and release a Request for Proposals for a consultant/consultant team (consultant): During the study period of this effort, R+C provided significant technical expertise and additional project management skills and resources that led to a very thorough report. In addition to the study, the consultant assisted with preparing for and facilitating the Advisory Group. Based on this experience, staff requested additional resources for a new contractor that will be identified through a competitive bidding process. Based on the volume of procurements from PDS and other departments that require Purchasing assistance, staff hope to release the RFP and receive initial responses back by the end of 2023. This would allow proposal review and any interviews to be conducted in late 2023/early 2024. Following selection of the consultant, staff will bring a contract forward to City Council for consideration and approval. •Refresh aspects of the Seismic Risk Assessment study as needed. The study remains very relevant and, due to its thorough nature, comprehensive. There may be limited need for the selected consultant to refresh certain aspects of the report. These updates may include assessing if the building code updates in the past two code update cycles have any bearing on this project. In addition, we want to assess if enhanced seismic knowledge from the past several years (often gained after an earthquake) indicates a need to expand or otherwise adjust the building categories considered for inclusion in the seismic program. Lastly, given the rapid and steep increase in construction costs due to materials and labor cost increases, refreshing the cost estimates for 2023 dollars may be prudent. The differences in actual costs shape the incentives and/or financing options considered by the Council. •Refresh the review of other cities policies, programs, and progress since 2017. The report reviewed the seismic programs undertaken by several California jurisdictions. Programs were at various stages of implementation at the time the report was written. The consultant team may be asked to review the progress and/or changes to the programs that have occurred in the intervening years. In addition, if a notable new program or policy has been adopted and implemented by a California jurisdiction, the consultant will review and summarize that program. Item 2 Item 2 Staff Report     Packet Pg. 29     2 6 7 7 Lastly, if any changes to California state law have occurred that impact the City of Palo Alto’s ordinance, the consultant will be asked to summarize the law(s) and their impact on this project. •Establish and execute a community engagement strategy. The consultants, along with City staff, will re-establish the Advisory Group to assist in discussing the project and providing feedback on the ordinance as it is drafted for Council consideration. The Advisory Group will continue to include a wide range of stakeholders throughout Palo Alto and including partner City departments. With clear tasks, scope, and meeting schedule along with skilled facilitation, this group can once again provide valuable insight to staff and policy makers to shape a policy that can be successfully implemented. •Return to Council and/or Policy and Services Committee for policy direction based on preliminary recommendations and policy framework. As the framework for a policy is proposed by staff and the consultant, with assistance from the Advisory Group, staff will return to Council for direction. This milestone will allow the Council to digest the policy options, consider consequences of each option, and consider staff’s recommended policy path. This recommendation will include potential incentives and/or financing tools as well as a draft implementation plan. Staff, with the consultant team, plan to present a framework for the policy with preliminary recommendations. The framework and recommendations will build on the options presented in the 2016 R+C Risk Assessment. The recommendations will have greater detail and resolution to questions raised in the study. •Draft ordinance in accordance with Council direction. Once Council provides clear direction based on the policy framework (described immediately above), staff and the consultant team will draft the ordinance and return to Council for adoption. Depending on the nature of the ordinance and overall program, a recommendation from the Planning and Transportation Commission may be needed. This would occur prior to Council consideration of the draft ordinance. •Council adoption of the ordinance and appropriation of implementation funds as needed. Council will consider, potentially amend, and ultimately adopt the ordinance. At the same time, staff would bring forward an implementation plan and a request for additional resources for the plan. Additional resources might include specific expertise in the plan review team of PDS, need for outreach and promotion of the new policy, new or augmented technology, or additional needs to successfully implement the program. Resources needs will also vary greatly depending on the overall design of the program. For example, a mandatory retrofit program with a fixed timeline may need greater resources than a voluntary retrofit program. Item 2 Item 2 Staff Report     Packet Pg. 30     2 6 7 7 RESOURCE IMPACT In fiscal years 2022-2023 and 2023-2024, the Council appropriated funding to the Planning and Development Services Department to carry out the update of the Palo Alto Municipal Code. The funds are designated to hire a consultant to aid in the development of the updated ordinance. Appropriated in fiscal years 2022-2023 and 2023-2024, the amount available totals $225,000. Staff will carry out a competitive procurement process, expecting to have a consultant team on board and ready to begin work in January 2024. In addition, managers and leaders within PDS will need to dedicate significant time to the project. This includes the Chief Building Official, the Assistant Chief Building Official, and a Management Specialist. Further, partner departments, such as the Office of Emergency Services, the Fire Department, and others may be requested to participate in the Advisory Group, review the draft ordinance, and assist with implementation to the extent the adopted program requires deployment of their skills and is within the department’s purview. ENVIRONMENTAL REVIEW The preparation of the Seismic Risk Assessment Study is exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15306 (Information collection leading to an action which a public agency has not yet approved, adopted, or funded). SEISMIC RISK ASSESSMENT STUDY This section summarizes the Seismic Risk Assessment Study. The full study is provided as an Attachment to this report. This summary provides a high-level overview. Readers seeking deeper knowledge and understanding may review the accompanying section of the full study. This section repeats, nearly verbatim, the staff report published on April 16, 2017 and again in November 2017. The information is repeated here for the benefit of Council members and Committee members as a refresher or introduction to the study and report’s original publication. In addition, the information is repeated here to help inform the public to aid their participation in the Committee discussion and/or the project overall. The risk assessment carried out by R+C included a series of task reports. They have been combined into one composite report as Attachment A and include surveys of state and local seismic policies and practices, an inventory of buildings in Palo Alto, a summary of vulnerable building categories, conceptual seismic retrofitting of representative vulnerable buildings, loss estimates for the current condition of the building stock and if buildings are retrofit, a review of past seismic retrofits in Palo Alto from selected City records, and a discussion of additional recommended program features for an improved seismic risk mitigation program. Table 1 summarizes the outcome of the seismic risk assessment and includes the Advisory Group discussions. The table is organized around eight vulnerable building categories or building types. Categories I, II and III encompass the identified vulnerable buildings for the 1986 ordinance and are primarily located in the downtown commercial district. Categories IV through VIII include additional Item 2 Item 2 Staff Report     Packet Pg. 31     2 6 7 7 buildings at risk, as identified in the Seismic Risk Assessment Study; these buildings are located throughout the City. Survey of State and Local Seismic Policies The risk assessment study includes two reports that address (1) a detailed review of the seismic risk management policy context within the State of California including relevant State legislation, and (2) the status of local seismic safety and mitigation programs. Development of the reports included searches of legislative data bases, search and review of published and online reports and materials, phone interviews with community leaders as well as local and State government staff, and development of insights from the consulting team based on their experiences in this arena. The two reports were discussed at Advisory Group meetings and helped inform the development of potential seismic risk management policies relevant to Palo Alto. State Level Policy Review The report on State level risk mitigation policies provides review of relevant historic and pending (in 2017) State legislation related to seismic risk mitigation of vulnerable buildings. High level legislative findings from the report include the following: A. Palo Alto is affected by numerous relevant California existing laws and regulations dating from the 1930s through the present. These laws regulate many aspects of Palo Alto’s built environment, including certain classes of building uses such as hospitals, public schools, and essential facilities; setting code minimums for new construction; and mandating land use planning and real estate disclosure measures for natural hazards including earthquakes. Unreinforced masonry (URM) is at present the only structural system type for which the State requires local jurisdictions to have a program. B. If it so chooses, Palo Alto has wide authority to expand or strengthen its approaches to seismic mitigation. The power to do more about earthquake vulnerabilities is primarily in the hands of the local jurisdictions that have significant discretion in the kinds of policies they can adopt. C. Palo Alto has many additional actions it can take to make sure it is complying and taking greatest possible advantage of State level regulations and opportunities. Based on what state laws allow and, in some cases, recommend, policy directions Palo Alto could pursue going forward include the following: Item 2 Item 2 Staff Report     Packet Pg. 32     2 6 7 7 Table 1: Summary of Recommended Policy Directions from the Seismic Risk Management Program Advisory Group Category Approx. Number Building Type Date of Construction Occupants Evaluation Report Voluntary, Triggered, or Mandatory Retrofit1 Deadlines for Evaluation Report and Retrofit Construction (years)2 Disclosure Potential Incentives Current Program (Potential Revision in Italics) I 10 Un- reinforced masonry N/A Over 6 (and over 1,900 sf) Required Mandatory Report: Expired Construction: 2-4 II 4 Any Before 1/1/35 Over 100 Required Voluntary or Triggered III 9 Any Before 8/1/76 Over 300 Required Voluntary or Triggered Report: Expired Construction • Voluntary: Not required • Triggered: At sale or renovation Website listing and tenant notification Fee waiver, expedited permitting, FAR bonus/ transfer of development rights (TDR) Expanded Program IV 294 Soft-story wood frame Before 1977 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Fee waiver, expedited permitting, TDR, parking exemptions, permission to add units V 99 Tilt-up Before 1998 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Same as Categories I, II and III VI 37 Soft-story concrete Before 1977 Any Required Voluntary, Triggered or Mandatory VII 35 Steel moment frame Before 1998 Any Required Voluntary, Triggered or Mandatory Report: 2-4 Construction • Voluntary: Not required • Triggered: At sale or renovation • Mandatory: 6-8 Same as above Same as Categories I, II and III VIII TBD Other older non-ductile concrete Before 1977 Any Not rec. at this time Not recommended at this time Report: N/A Construction: NA N/A N/A 1Voluntary: Retrofit is voluntary. Triggered: Retrofit is triggered when the building is sold or undergoes substantial renovation. Mandatory: Retrofit is required per a fixed timeline. 2Deadlines provide a potential range. Timelines would vary depending on tiers or priority groupings of different subcategories. Item 2 Item 2 Staff Report     Packet Pg. 33     Item No. 2.Page 11 of 35 Figure 1: Category IV, Wood-frame Soft Story Building built before 1977 Earthquake Damage Figure 2: Category I, Unreinforced Masonry Building Earthquake Damage Figure 3: Category I, Unreinforced Masonry Building Earthquake Damage Item 2 Item 2 Staff Report     Packet Pg. 34     Item No. 2.Page 12 of 35 A. Implement measures to increase the effectiveness of its current program, for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation B. Expand the City’s current voluntary seismic mitigation programs to address additional building types, uses, or sizes C. Add mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story wood frame or concrete buildings D. Upgrade the City’s current voluntary URM program to make retrofitting mandatory E. Create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types F. Craft a program that combines any or all of the above measures. Local precedents for all of these types of approaches exist G. Continue the status quo current program Local Program Best Practice Assessment The local program best practices assessment report reviews current practices among local jurisdictions and agencies that require seismic retrofitting. The report summarizes what has been done legislatively and programmatically to increase awareness, assess, and motivate mitigation of seismically vulnerable buildings. Palo Alto is currently laying a solid foundation for future program development through this study. Through this study, the City has invested in new inventory and risk information as well as community outreach and internal staff discussions. In doing so, it is joining a group of leading California coastal jurisdictions such as Berkeley, Oakland, San Francisco and Los Angeles that have recently stepped up their earthquake risk reduction efforts. San Leandro and Fremont have also had policies in place for over a decade. While there is much learning and information sharing going on, each jurisdiction has developed their own customized policy package. There is no single best model that Palo Alto can straightforwardly adopt. Existing local approaches differ widely in the following ways: A. Policy mechanisms used to achieve progress B. Scope of targeted building types or uses addressed C. Prioritization for retrofit among vulnerable structures and compliance timeframes D. Types of incentives offered to property owners E. Disclosure measures used to increase public awareness Policy Mechanisms The policy mechanisms being used by other jurisdictions range from inventory only with no subsequent requirements to mandatory retrofit completion in under five years. In between are more gradual approaches such as voluntary retrofit advocacy, incentives, provisions that make building deficiencies more visible to the public (disclosure measures), and mandatory screening and evaluation requirements. An important policy decision is whether any mandated actions are implemented on a fixed timeline or triggered at sale or at some renovation cost threshold. Item 2 Item 2 Staff Report     Packet Pg. 35     Item No. 2.Page 13 of 35 Scope of targeted building types and characteristics The most commonly addressed building type is unreinforced masonry (URM) construction due to state law SB 547, passed in 1986. Over half of URM building programs in the state require mandatory retrofit, often but not always, with a time frame on the order of ten to twenty years. By 2006, seventy percent of all identified URM buildings statewide were either demolished or retrofitted. Retrofit rates on average were three times higher in jurisdictions with mandatory retrofit compared to voluntary programs. Jurisdictions used a wide variety of both financial and policy incentives to assist URM building owners. Some voluntary URM building programs coupled with incentives, including Palo Alto’s, have achieved similar rates of success to mandatory programs. More recent programs have focused on soft-story wood frame multi-family residential buildings, including ten Bay Area jurisdictions and, most recently, Los Angeles as of 2015. Soft-story wood frame building programs range in requirements from notification only to mandatory retrofit. Several jurisdictions have innovatively used intermediate mandatory screening and evaluation phases to further assess risk exposure and determine the final set of buildings that will be affected by retrofit requirements. Soft-story wood frame programs have largely been supported in the local community. Compliance timeframes in soft-story wood frame programs tend to be short, on the order of two to seven years. A comparatively small number of Southern California jurisdictions have acted to address older concrete buildings, including Los Angeles, Burbank, Santa Monica, and Long Beach. Non-ductile concrete frame and tilt-up concrete structures, in particular, are known to pose serious risks. Programs aimed at older concrete buildings range from voluntary guidelines to mandatory evaluation and full retrofit requirements. Timeframes on mandatory retrofit of older concrete buildings vary greatly, from years to decades. Information about the implementation and outcomes of these few programs is very limited. Incentives To complement program compliance requirements, jurisdictions can offer either financial or policy oriented incentives. Financial incentives in increasing order of cost and implementation difficulty include: waivers or reductions of building department fees, pass through of retrofit costs to tenants (in jurisdictions with rent control), property-assessed financing loads, subsidized or special term loans, real estate transfer tax rebates, special district or historic designation tax reductions, tax credits, grants, and general obligation bonds. Program incentives, in order of increasing difficulty, include: exemption from future retrofit requirements, expedited reviews, exemption or relief from standards or non-conforming conditions, condominium conversion assistance, technical assistance for retrofitting, zoning incentives, transfer of development rights, and density or intensity bonus such as a floor area or floor area ratio bonus. Jurisdictions vary widely in the extent and type of incentives offered, and many offer a number of different types of incentives. Item 2 Item 2 Staff Report     Packet Pg. 36     Item No. 2.Page 14 of 35 Disclosure Measures Public disclosure provides a powerful mechanism for influencing the opinions and actions of owners, renters, and buyers, particularly in programs without mandatory retrofitting requirements. Officially publicizing a city’s concerns about deficiencies of a specific building type could, for instance, change public opinion about the resale or rental value of listed properties, an owner’s eligibility for refinancing or future loan terms, or the cost of purchasing property and earthquake insurance. Jurisdictions have used a variety of techniques to motivate attention to seismic risk concerns. Disclosure measures include the following: A. Mandatory disclosure at time of sale: Sellers of property are required to disclose features that could relate to earthquake performance. B. Recorded notice on deed: Jurisdictions can record on the property title or deed, the fact that the building is subject to additional requirements related to its seismic vulnerability status. C. Public listing of affected properties: Jurisdictions that operate web sites to describe their programs can feature a full list of property addresses and the compliance status of the property. Generally, owner names are not listed. D. External signage: California law requires signage on all URM buildings. Similar signage has been required since 2007 on soft-story wood frame buildings in the City of Berkeley and non- complying soft-story wood frame buildings in San Francisco. E. Tenant notification: Owners are required to present straightforward, standardized information about the listed status of the property. F. Earthquake performance rating systems: Owners can be either encouraged or required to have their building rated on a standardized scale that classifies expected performance in an earthquake. In 2015, the City of Los Angeles launched a voluntary effort to encourage owners to rate the properties using the US Resiliency Council’s rating system and pledged to rate its own public buildings. For more information about the US Resiliency Council, see their website at <http://www.usrc.org/>. Palo Alto Options Based on the review of state and other jurisdiction policies, alternative program options for Palo Alto were identified: 1. Status Quo: In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. Floor area ratio bonuses are (were) available and could continue to be offered. 2. Increase Number of Building Types Regulated, but Retrofit Remains Voluntary: Additional categories of structures are added to the mandatory evaluation requirements beyond those of the current ordinance. These could include any or all of the building types discussed above, potentially also using additional location, use, or occupancy criteria. 3. Increase Number of Building Types Regulated with Additional Disclosure Measures Incorporated: This option would be similar to Option 2, but with increased use of disclosure Item 2 Item 2 Staff Report     Packet Pg. 37     Item No. 2.Page 15 of 35 measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. 4. Increase Number of Building Types Regulated, Some Building Types Have Voluntary Retrofit and a Few Building Types Have Mandatory Retrofit, with Enforcement by a Trigger Threshold: This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. 5. Increase Number of Building Types Regulated, Retrofits for Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline: This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. 6. Increase Number of Building Types Regulated, but More Categories are Required to Have Mandatory Retrofits: This alternative is similar to Option 5, but retrofitting would be required for additional categories on a fixed timeline. Other Program Features and Implementation Factors By updating its current ordinance, Palo Alto has a variety of opportunities to expand and better link its earthquake mitigation program efforts to other City efforts in support of community resilience goals. For instance, Palo Alto could encourage a building occupancy and resumption program like San Francisco, encourage or fund installation of strong motion instruments, or pursue special programs or requirements for cell phone towers, facades, private schools, and/or post-earthquake shelter facilities. Building Inventory Summary of Survey Methodology One of the first steps in the Seismic Risk Assessment Study was to develop a digital inventory of buildings in Palo Alto that includes all the information necessary to build the exposure model for the loss estimate. Information sources used to develop the inventory included county tax assessor files, City GIS files, a survey done by the Palo Alto Fire Department and San Jose State University of soft-story wood frame buildings, field notes from the building department files of selected buildings when the 1986 ordinance was being developed, Google Earth and Street View visual reviews, and an extensive visual sidewalk survey. After the sidewalk surveys and additional quality assurance refinements, the study identified a total of 2,632 buildings in the study group for Palo Alto. This included 66 buildings subject to Palo Alto’s current seismic mitigation ordinance, because 23 of the original 89 buildings subject to the ordinance have been demolished. Not all buildings were field surveyed and not all key attributes needed for loss estimation were available for all buildings. For buildings that were not surveyed and were missing information, the missing attributes were developed using statistical comparisons with buildings that were surveyed on a sector- by- sector basis. A multi-step procedure was developed to fill in other Item 2 Item 2 Staff Report     Packet Pg. 38     Item No. 2.Page 16 of 35 missing attributes based on the best available comparative information. As a result, while the information for buildings that were not surveyed may not be fully accurate at the individual building level, the overall data set is seen as sufficiently representative for the type of loss estimates used in the project and relative comparisons made between different building types that are discussed ahead. Replacement Cost Values for Palo Alto In addition to the information discussed above, a locally-customized replacement cost had to be established for each building. Standard 2014 RS Means Replacement Cost values included in the project loss estimation software (Hazus) used were reviewed as a starting point, but not considered representative for Palo Alto. R+C and Vanir Construction Management prepared adjustments to RS Means values to capture 2016 data and local factors unique to Palo Alto. These were reviewed by a task group of the City’s project Advisory Group that included local design professionals and developers familiar with the local cost climate. The group recommended an increase of the values in general and identified target values for selected common occupancies. Based on these recommendations, R+C updated the values and Vanir reviewed them and revised the non-targeted occupancies for estimating consistency. The resulting replacement costs are shown in Table 2, and were used in the loss calculations. It is noted that resulting costs are 1.7-2.6 times the RS Means-based Hazus default values (2014 cost data), and that costs are intended to be representative of averages across the town. Item 2 Item 2 Staff Report     Packet Pg. 39     Item No. 2.Page 17 of 35 Table 2: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Factor for Palo Alto Escalation Factor from 2014 costs to 2016 costs Demo & Minimal Sitework (5’ around building) [$/SF] Soft Cost Premium2 Average 2016 Palo Alto Cost w/ Soft Costs [$/SF] Multiplier (Replaced with Soft Costs / RS Means) Multi Family, duplex $130.75 40%10%$17.50 20%$263 2.01 Multi Family, triplex/quad $114.94 40%10%$17.50 20%$233 2.03 Multi Family, 5-9 units $206.41 40%10%$17.50 20%$402 1.95 Multi Family, 10-19 units $194.12 40%10%$17.50 20%$380 1.96 Multi Family, 20-49 units $212.26 40%10%$17.50 20%$413 1.95 Multi Family, 50+ units $199.90 40%10%$17.50 20%$390 1.95 Temporary Lodging $217.83 40%10%$17.50 20%$424 1.94 Institutional Dormitory $234.44 50%14%$25.00 20%$511 2.18 Nursing Homes $238.07 50%12%$25.00 20%$510 2.14 Retail Trade $121.66 80%10%$17.50 20%$310 2.55 Wholesale Trade $118.13 60%10%$17.50 20%$$270 2.29 Personal & Repair Services $143.47 60%10%$17.50 20%$324 2.26 Professional/Technical/ Business Services $194.52 65%12%$17.50 20%$452 2.33 Banks $281.88 40%12%$25.00 20%$560 1.99 Hospitals $372.59 50%14%$35.00 20%$807 2.16 Medical Office/Clinics $267.85 20%10%$17.50 20%$445 1.66 Entertainment/Recreation $248.61 25%12%$25.00 20%$448 1.80 Theaters $186.45 35%12%$25.00 20%$368 1.98 Parking $84.59 20%10%$17.50 20%$155 1.83 Heavy $144.71 25%10%$17.50 20%$260 1.80 Light $118.13 25%10%$17.50 20%$216 1.83 Food/Drugs/Chemicals $229.48 30%12%$17.50 20%$422 1.84 Metal/Minerals Processing $229.48 30%12%$17.50 20%$422 1.84 High Technology $229.48 40%14%$17.50 20%$461 2.01 Item 2 Item 2 Staff Report     Packet Pg. 40     Item No. 2.Page 18 of 35 Construction $118.13 30%10%$17.50 20%$224 1.89 Church $118.13 50%12%$25.00 20%$268 2.27 Agriculture $199.08 10%12%$17.50 20%$315 1.58 General Services $152.63 40%10%$17.50 35%$341 2.23 Emergency Response $259.52 40%14%$25.00 35%$593 2.28 Schools/Libraries $193.00 40%12%$25.00 35%$442 2.29 Colleges/Universities $214.91 60%12%$25.00 35%$554 2.58 Notes: 1. RS Means average cost includes RS Means default location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. 3. Costs are intended to be representative of average in Palo Alto across the town, including downtown areas together with other areas in the city. 4. Costs were previously prepared following a 3/7/2016 discussion with the Palo Alto Seismic Risk Program Advisory Group Technical Advisory Committee. Table includes minor updates based on internal review between Rutherford + Chekene and Vanir Construction Management to achieve improved relative ratios between different occupancy types. Number and Distribution of Vulnerable Buildings by Aggregate Size and Value Table 3 shows how the number and aggregate value of Palo Alto’s buildings is distributed by type of structure, using the FEMA Model Building Type classification system for structural system. The table is sorted by aggregate building value. Wood frame buildings make up about 60% of the number of buildings and represent 35% of the total value. About 20% of the buildings are concrete, and they represent over 40% of the total value. Of the remaining 20%, about two- thirds are masonry buildings, and one-third steel. However, the steel buildings represent about twice the value of the masonry buildings. Item 2 Item 2 Staff Report     Packet Pg. 41     Item No. 2.Page 19 of 35 Table 3: Distribution of number of buildings, building area, and building value by Model Building Type. Model Building Type Number of Buildings Aggregate Square Feet (1,000) Aggregate Building Value ($M) Concrete shear wall (C2)318 9,699 4,082 Concrete tilt-up (PC1)242 8,054 3,368 Wood frame larger residential (W1A)331 8,403 3,232 Wood frame commercial/industrial (W2)307 6,209 2,369 Steel braced frame (S2)50 3,116 1,391 Wood frame smaller residential (W1)898 3,821 1,278 Steel moment frame (S1)75 3,005 1,242 Reinforced masonry, wood floor (RM1)285 2,806 1,209 Reinforced masonry, concrete floor (RM2)30 574 211 Steel light metal frame (S3)41 533 177 Precast concrete frame (PC2)5 334 125 Concrete moment frame (C1)18 325 117 Steel frame with concrete shear walls (S4)13 162 72 Unreinforced masonry bearing wall (URM)9 274 15 Concrete with masonry infill (C3)8 26 8 Steel frame with masonry infill (S5)2 6 3 Totals 2,632 47,346 18,899 The study group of buildings can be further divided into age groups separated by significant milestones in building code implementation. The following age groups were selected: pre-1927, 1927-1961, 1962-1976, 1977-1997, and 1998 to present. The milestones reflected include the first earthquake code in Palo Alto in 1926, adoption of the 1961 Uniform Building Code (UBC) and associated more stringent design requirements, code changes in the 1976 UBC following the 1971 San Fernando Earthquake, and code changes in the 1998 UBC following the 1994 Northridge Earthquake. Figure 1 shows a histogram of the year built of the buildings in the study group. Item 2 Item 2 Staff Report     Packet Pg. 42     Item No. 2.Page 20 of 35 Figure 1: Distribution of year built of buildings in study group with significant changes in the building design practice. Vulnerable Building Categories One of the important tasks in the risk assessment study was to identify potentially vulnerable building categories specific to Palo Alto. Using the building inventory that was developed early in the project, R+C identified potentially vulnerable structural system types based on insights from past earthquake events, milestone improvements in seismic code requirements made in Palo Alto, rankings in prominent seismic risk assessment tools such as the 2015 edition of FEMA P-154 Rapid Visual Screening of Buildings for Potential Seismic Hazards, results from past seismic risk assessment studies in California communities, and engineering judgment. The building categories were then evaluated in analytical loss estimate studies, described ahead, which helped to narrow in on the most important categories for Palo Alto. Key building vulnerability metrics include the risk of deaths and injuries, the cost of damage, and the extent of downtime or loss of use. Buildings in the identified vulnerable building categories tend to perform poorly with respect to all three of these metrics though the relative degree of vulnerability to each factor varies. Item 2 Item 2 Staff Report     Packet Pg. 43     Item No. 2.Page 21 of 35 Community Resilience Community resilience is improved if residents have homes that remain usable after an earthquake and if businesses can still operate. From a program perspective, the consultant team and advisory group believe that the greatest reduction in losses and the largest benefit to community resilience will come from seismically retrofitting building types known to be both potentially hazardous and present in significant numbers in Palo Alto. In addition to the three categories already in Palo Alto’s seismic hazard identification ordinance (Categories I, II, and III below), five additional categories of vulnerable building types were identified. All five categories meet the criteria of being potentially hazardous and having a significant presence in Palo Alto. The eight categories and the approximate number of buildings included in each category, as of original report publication in 2017, are as follows: 1. Category I: Constructed of unreinforced masonry, except for those small than 1,900 square feet with six or few occupants (10 remaining buildings in Palo Alto) 2. Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (4 remaining buildings) 3. Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (9 remaining buildings) 4. Category IV: Pre-1977 soft-story wood frame (294 buildings) 5. Category V: Pre-1998 tilt-up concrete (99 buildings) 6. Category VI: Pre-1977 concrete soft-story (37 buildings) 7. Category VII: Pre-1998 steel moment frame (35 buildings) 8. Category VIII: Other pre-1977 concrete construction (170 buildings) The technical assessment confirms that the potential reduction in losses from retrofitting is significant for these categories. Conceptual Seismic Retrofitting of Representative Vulnerable Buildings Retrofit was considered for all buildings that have not already been retrofitted and were either constructed before 1961 or between 1962 and the “benchmark” year with a soft story. A “benchmark” year is when the code requirements for that building type became similar to those currently in place. Consistent with typical practice, the performance of the retrofitted buildings in an earthquake is assumed to be less than that of newly constructed buildings. For estimating the cost of retrofit for the improved buildings, R+C developed conceptual designs for Model Building Types that represent a significant number and value of Palo Alto’s building stock, as well as a significant loss and loss reduction after retrofit. This process identified wood frame (W1, W1A, W2), steel moment frame (S1), concrete shear wall (C2), concrete tilt-up (PC1), and reinforced masonry (RM1) and unreinforced masonry (URM) as appropriate candidates. For each Model Building Type, the age, square footage and number of stories were reviewed to identify a “prototype” building. In cases where the prototype building was not representative of more than two-thirds of the total number of buildings, multiple prototypes were considered. Item 2 Item 2 Staff Report     Packet Pg. 44     Item No. 2.Page 22 of 35 Figure 2: Retrofit scheme for Large Multi-family Soft-Story Wood Frame Building. An example of a conceptual retrofit for the W1A prototype building is shown in Figure 2 from a 2000 brochure by R+C for the City of San Jose entitled “Practical Solutions for Improving the Seismic Performance of Buildings with Tuck-under Parking.” The retrofit elements were keyed to representative details in 2006 FEMA 547 Techniques for the Seismic Rehabilitation of Existing Buildings, and a written description of collateral impacts was developed as well to provide sufficient detail to allow a rough order of magnitude cost estimate to be prepared. The cost estimators of Vanir Construction Management used the conceptual designs to estimate a range of probable cost to implement the retrofits. The retrofit costs for each prototype building are shown in Table 4. These costs include hard costs, which are the costs the owner pays the contractor, plus a design contingency since these are conceptual retrofits. The estimate further includes soft costs, representing architect and engineer design fees, testing and inspection costs, permit fees, and an owner change order contingency. Item 2 Item 2 Staff Report     Packet Pg. 45     Item No. 2.Page 23 of 35 Considered costs do not include hazardous material abatement, costs associated with performing the work while occupants are using the building, triggered accessibility upgrades, cost premiums associated with retrofit of a historic building, tenant relocation or business interruption during construction, project management, renovation, financing, repair of existing conditions, and legal fees. These costs are more variable and project and site specific, and are typically not included in loss estimates for this type of study. The retrofit costs were extrapolated to Model Building Types not represented by a prototype retrofit as shown in the fifth column of Table 4. Table 4: Conceptual retrofit cost. Retrofit Prototype Model Building Type Stories Square Feet Used for Model Building Types Used for Square Feet Average Retrofit Cost ($/SF) 1 Wood frame smaller residential (W1) 2 5,320 W1 All 12 2 Wood frame larger residential (W1A) 2 9,500 W1A < 15,000 11 3 Wood frame larger residential (W1A) 3 30,000 W1A ≥ 15,000 6 4 Wood frame commercial/industrial (W2) 2 10,000 W2 All 14 5 Steel moment frame (S1)2 43,900 S1, S2, S3 All 10 6 Concrete shear wall (C2)1 5,000 C1, C2, S4, PC2 < 10,000 50 7 Concrete shear wall (C2)2 17,280 C1, C2, S4, PC2 ≥ 10,000 40 8 Concrete tilt-up (PC1)1 18,435 PC1 < 25,000 29 9 Concrete tilt-up (PC1)2 38,400 PC1 ≥ 25,000 21 10 Reinforced masonry, wood floor (RM1) 1 2,750 RM1, RM2 < 5,000 74 11 Reinforced masonry, wood floor (RM1) 2 8,150 RM1, RM2 ≥ 5,000 46 12 Unreinforced masonry bearing wall (URM) 1 5,000 URM, S5, C3 All 110 Item 2 Item 2 Staff Report     Packet Pg. 46     Item No. 2.Page 24 of 35 Loss Estimate Findings for Current Condition Hazus is a geographic information system (GIS) based, standardized, nationally applicable multi- hazard loss estimation methodology and software tool. It is used by local, state, and federal government officials for preparedness, emergency response, and mitigation planning. The Advanced Engineering Building Module from the latest Hazus version 3.1 was used to conduct the loss estimates in the study so that individual buildings could be analyzed using the specific inventory data collected for Palo Alto. Analyses were conducted for two specific earthquake scenarios developed by the United States Geological Survey (USGS): a major M7.9 San Andreas Fault event, and a strong M6.7 San Andreas Fault event. Contour plots for the short period spectral acceleration for the two M6.7 and M7.9 scenarios are shown in Figure 3. Spectral acceleration is a measure of the building response to shaking at the site. Figure 2: Predicted short period spectral acceleration in vicinity of Palo Alto (city boundary shown) for two selected San Andreas Fault scenarios. Item 2 Item 2 Staff Report     Packet Pg. 47     Item No. 2.Page 25 of 35 Estimated Losses for Buildings in Their Current Condition Table 5 summarizes the total loss calculated by Hazus for the as-is condition for the two earthquake scenarios. The results show that the estimated losses to Palo Alto buildings and contents in a M6.7 scenario will be significant, on the order of $1.2 billion. Though ground shaking in the M7.9 scenario is only about 25% larger than it is in the M6.7 scenario, overall building and content losses double to $2.4 billion. Average building damage and content damage also approximately double with a M7.9 event. The difference in the number of buildings that are heavily damaged with the larger earthquake is more pronounced with a 12-fold increase from the M6.7 to the M7.9 scenarios. This is shown in the fourth column of Table 5 as the number of buildings with a damage ratio exceeding 20%. Table 5: Total losses for study group in as-is condition. Earthquake Scenario Building Value1 ($B) Content Value2 ($B) Number of Bldgs. with Damage Ratio ≥ 20%3 Estimated Building Damage4 ($B) Estimated Content Damage4 ($B) Total Building and Content Damage ($B) M7.9 18.9 17.3 224 1.7 0.7 2.4 M6.7 18.9 17.3 19 0.8 0.4 1.2 Ratio of M7.9/M6.7 2 2 2 Notes: 1. Building value is the complete replacement cost for the building, and includes the structure, architectural, mechanical, electrical, and plumbing components (e.g., ceilings and lighting). 2. Content value includes the complete replacement cost of furniture and equipment that is not integral with the structure (e.g., computers and other supplies). They are estimated as a percent of structure replacement value, dependent on occupancy. 3. Damage ratio is defined as the cost of repairing damage divided by the replacement cost of the building. 4.Estimated building and content damage cost is the cost associated with repair and replacement of the building and its content. To put the loss from building damage in context, the average annual valuation of Palo Alto construction permits was $400M between 2013 and 2016 (which represents a boom period). The total loss of $1.7B in a major M7.9 earthquake represents more than four years’ worth of construction, and the total loss of $0.8B in a strong M6.7 earthquake represents more than two years’ worth of construction. It should be noted that these losses do not include the effects of lives lost and business disruption, or the ripple effects in the local economy or real estate market. Much of this loss will Item 2 Item 2 Staff Report     Packet Pg. 48     Item No. 2.Page 26 of 35 not be insured. Estimated Losses by Building Type It is important to look at multiple metrics when deciding which buildings are the most vulnerable and significant to the community as a whole. Table 6 breaks out the estimated loss and damage ratio for various model building types, and it can be seen that it depends on the metric used which building type is considered the poorest performer. Looking at the total loss alone, concrete bearing wall buildings and commercial wood frame buildings are responsible for the highest total loss. This tracks well with the earlier finding that these structural systems are the most prevalent ones. If we look at the highest average building damage ratio instead, buildings with unreinforced masonry bearing walls and unreinforced masonry infills are the most prone to damage. However, not very many of them exist in Palo Alto, and as a result they do not represent much of the aggregate loss. Table 6: Top three vulnerable building types ranked by total loss, average damage ratio, and number of severely damaged buildings. Building Type Number of Buildings Building Value ($M) M7.9 EQ Total Building + Content Losses ($M) M7.9 EQ Average Building Damage Ratio M7.9 EQ Number of Bldgs. with Damage Ratio ≥ 20% Concrete shear wall (C2)318 4,082 477 14%75 Concrete tilt-up (PC1)242 3,368 365 12%32 Wood frame commercial/industrial (W2)307 2,369 216 9%9 Steel frame with masonry infill (S5)2 3 1 38%1 Unreinforced masonry bearing wall (URM)9 15 4 29%9 Concrete frame with masonry infill (C3)8 8 2 29%6 Concrete shear wall (C2)318 4,082 477 14%75 Concrete tilt-up (PC1)242 3,368 365 12%32 Steel moment frame (S1)75 1,242 130 18%27 Loss Estimate Findings with Buildings Retrofitted A second Hazus AEBM run was done assuming a retrofitted building stock. For this model run, it was assumed that a building would be retrofitted if it has not already been retrofitted and was either constructed before 1961 or between 1962 and the benchmark year with a soft story. The Hazus model was rerun with the updated properties simulating retrofit. Item 2 Item 2 Staff Report     Packet Pg. 49     Item No. 2.Page 27 of 35 Table 7 shows the resulting total losses and damage ratios after buildings have been retrofitted. Though total losses are still significant, comparing the results of Table 7 with Table 5 shows a reduction in total loss of 45% for the M7.9 scenario, and 33% for the M6.7 scenario. In other words, aggregate loss to the community if all considered properties were retrofit could be reduced by one third in a very plausible event and almost halved in a much larger event. Another important improvement is the reduction of the number of buildings with more than 20% damage. The M7.9 scenario shows a reduction from 224 buildings to 6 buildings. This means that the probability of building collapse and resulting injuries and fatalities has become very low. Finally, the damage and loss of the M7.9 scenario remain approximately two times the amount of loss sustained in the M6.7 scenario. This suggests that the retrofit has a similar impact for both levels of ground shaking. Table 7: Total losses after retrofitting. Earthquake Scenario Building Value ($B) Content Value ($B) Estimated Building Damage ($B) Number of Bldgs. with Damage Ratio ≥ 20% Estimated Content Damage ($B) Total Building & Content Damage ($B) M7.9 18.9 17.3 0.9 6 0.5 1.3 M6.7 18.9 17.3 0.5 0 0.3 0.8 Ratio of M7.9/M6.7 2 -2 2 Table 8 breaks out the reduction in total loss by model building type for the M7.9 scenario, and shows the associated retrofit cost. The average reduction in loss varies by building type. URM buildings showed the highest reduction in loss after retrofit as a percentage of the loss itself. Steel braced framed buildings showed the lowest reduction in losses as a percentage of the loss itself. Wood frame and concrete buildings are responsible for the largest reduction in total loss, with wood frame construction representing over 20% of the loss reduction, and concrete buildings over 50%. It should be noted that the data in Table 8 also includes buildings that were not retrofitted. As a result, further parsing of the data is needed to better understand which buildings are responsible for the most loss, and those that can be improved more cost-effectively. Table 8: Comparison of retrofit benefits and costs by Model Building Type. Model Building Type M7.9 EQ Average Damage ($/SF) M7.9 EQ Total Damage Reduction ($1,000) Average Damage Reduction ($/SF) Retrofit Cost ($/SF) Item 2 Item 2 Staff Report     Packet Pg. 50     Item No. 2.Page 28 of 35 Wood frame smaller residential (W1)16 13,775 4 12 Wood frame larger residential (W1A)25 61,317 7 6-11 Wood frame commercial/industrial (W2)50 160,155 26 14 Steel moment frame (S1)62 76,150 25 10 Steel braced frame (S2)44 24,222 8 10 Steel light metal frame (S3)108 38,163 72 10 Steel frame with concrete shear walls (S4)101 11,118 69 40-50 Steel frame with masonry infill (S5)247 695 121 110 Concrete moment frame (C1)55 8,045 25 40-50 Concrete shear wall (C2)70 336,574 35 40-50 Concrete frame with masonry infill (C3)120 865 34 110 Concrete tilt-up (PC1)68 218,491 27 21-29 Precast concrete frame (PC2)21 0 0 21-29 Reinforced masonry, wood floor (RM1)59 87,697 31 46-74 Reinforced masonry, concrete floor (RM2)35 3,727 6 46-74 Unreinforced Masonry Bearing Wall (URM)23 5,216 19 110 Totals 51 1,046,210 22 Table 9 shows those types of buildings that may be considered good candidates for a retrofit program. Although representing only about 15% of the total inventory, these buildings are responsible for over 30% of the total loss. This is reflected in the considerably higher than average loss (fourth column of Table 9). The benefit of retrofit is also considerable for this group of buildings, since they are responsible for over 50% of the reduction in loss. Additionally, the cost to retrofit them is only a fraction of the losses avoided in a major event, ranging from a third for the concrete buildings to a tenth for the steel frames. Note that these values are based on conceptual retrofits. Actual retrofit costs for individual buildings would vary substantially. The steel moment frame benefit-to-cost ratio is higher than expected by engineering judgment, caused in part by a comparatively low retrofit cost for this Model Building Type. Table 9: Comparison of benefits and costs by selected Model Building Type, date and characteristics. Model Building Type Number of Buildings Total SF (1,000) M7.9 EQ Average Loss by Building ($/SF) M7.9 EQ Average Loss Avoided by Retrofit ($/SF) Average Cost to Retrofit ($/SF) (Average Loss Avoided) / (Average Retrofit Cost) Pre-1977 wood frame soft- story (W1, W1A, W2) 294 3,690 66 46 12 4 Pre-1998 tilt-up (PC1)99 3,078 106 71 23 3 Item 2 Item 2 Staff Report     Packet Pg. 51     Item No. 2.Page 29 of 35 Pre-1977 concrete soft-story (C1, C2, C3) 37 842 149 108 42 3 Pre-1998 steel moment frame (S1) 35 690 152 110 10 11 Review of Past Seismic Retrofits To gain a better understanding of the quality of the retrofits and identify relevant issues to updating Palo Alto’s seismic risk mitigation program, a sample of the submitted engineering studies and building retrofits drawings for existing buildings was reviewed. The review identified the following relevant needs for future seismic risk mitigation programs: A. Clear identification of retrofit design intent, scope, and limitations, also for voluntary retrofits B. Identification of existing structural systems C. Decision on requirements for buildings that have had partial seismic retrofits completed; and may have remaining seismic deficiencies Additional Recommended Program Features In addition to expansion of the building categories included within the City’s seismic risk mitigation program and refinement of disclosure measures and incentive options, a number of other program features are recommended. A.Use the current inventory, taking note of its limitations - The inventory developed for the effort to date involved use of digital information and field surveys. A complete field survey of all buildings in Palo Alto was outside the scope of the project. However, the inventory that has been developed is an excellent resource. The first step in any future ordinance will involve notification of building owners that they may be subject to the requirements of the ordinance. Those buildings that were field surveyed and fall within the scope of the ordinance can be notified using the existing inventory. For the remaining buildings, additional field survey is recommended. This would be a rapid visual assessment and could be conducted by City staff or outside consultants. B.Use an initial screening form phase - Typically, as part of the notification process, a screening form of about one page in length is sent. The owner is required to have a design professional, such as a structural engineer or architect, complete the form. This cost to confirm whether or not the building actually is subject to the City’s ordinance should be relatively nominal. C.Clearly specify seismic evaluation and retrofit scope - For all buildings subject to regulation, the seismic evaluation (and retrofit) methodology for each building category will need to be defined. Industry consensus standards exist and cover the vulnerable building categories identified for Palo Alto. These include the 2015 International Existing Building Code (IEBC) and 2014 ASCE 41-13 Seismic Evaluation and Retrofit of Existing Item 2 Item 2 Staff Report     Packet Pg. 52     Item No. 2.Page 30 of 35 Buildings. Both are currently being updated by groups of engineers and building officials. For soft-story wood frame buildings, there is also the 2012 FEMA P-807 Seismic Evaluation and Retrofit of Multi-Unit Wood-Frame Buildings with Weak First Stories. For steel moment frame buildings, there is also the 2000 FEMA 351 Recommended Seismic Evaluation and Upgrade Criteria for Existing Welded Moment Resisting Steel Structures. The following table provides recommended evaluation and retrofit standards. D.Provide detailed evaluation report submittal requirements - Minimum submittal requirements for evaluation reports will need to be defined. The above evaluation and retrofit standards provide some guidance but a short clear set of requirements will be beneficial. E.Specify how past partial retrofits will be handled: In the past, some buildings have had partial seismic retrofits where only selected portions of the seismic force-resisting system have been upgraded; Some seismic deficiencies may still exist in these structures. If mandatory retrofit requirements are implemented that provide for comprehensive retrofitting of the full seismic load path, there may be buildings with previous partial retrofits that do not fully comply and need remaining deficiencies to be addressed. The seismic evaluation reports will help identify these cases. F.Update both new and existing building permit submittal requirements: Review of City records found that basic information such as the building structural system, date of construction, and retrofit standard used (where applicable) are not readily available. It is recommended that submittals for permit for both new buildings and existing building renovations require this information. This will allow the city to have a much better understanding of its total building stock and its expected performance in an earthquake. G.Write a new ordinance or set of ordinances to update the program: After the Council has provided direction and the above issues have been addressed, an updated ordinance will need to be written. H.Carefully address program management and interdepartmental coordination needs: To successfully manage Palo Alto’s updated Seismic Risk Mitigation Program, an effective management plan is needed so that progress is monitored by the City and community intent is achieved. I.Delineate department and key staff responsibilities: For Palo Alto’s updated Seismic Risk Mitigation Program, City staff will be responsible for several categories of activities. These will include the basic activities such as managing the notification and inventory process, reviewing evaluation reports and plan checking retrofit construction documents, and field inspections of retrofit work. Less obvious activities will include evaluating requested exceptions to the program or alternative means of compliance; managing feedback from design professionals, owners, and the public; tying pre-earthquake retrofitting to post- earthquake safety evaluations records; and managing post-earthquake safety evaluation, Item 2 Item 2 Staff Report     Packet Pg. 53     Item No. 2.Page 31 of 35 repair, and recovery plans. Depending on the scale of the updated program, it is possible that additional staff members, consultants, and/or an appropriately experienced structural engineer may be needed to provide advice on technical and program management issues, particularly as the program moves to final definition and to initial implementation. Later, as is done in some communities, it may be desirable to create volunteer review boards of local structural engineers who review questions on the evaluation and retrofit criteria and provide the City with technical opinions that staff can use. Table 10: Recommended Evaluation and Retrofit Standards. Category Description Evaluation and Retrofit Standards I Unreinforced masonry IEBC Appendix Chapter A1 II Built before 1/1/35 with 100 or more occupants ASCE 41 III Built before 8/1/76 with 300 or more occupants ASCE 41 IV Pre-1977 soft-story wood frame IEBC Appendix Chapter A4, ASCE 41, or FEMA P-807 V Pre-1998 tilt-up IEBC Appendix Chapter A2 and ASCE 41 VI Pre-1977 soft-story concrete ASCE 41 VII Pre-1998 steel moment frame ASCE 41, or FEMA 351 VIII Other pre-1977 concrete ASCE 41 Item 2 Item 2 Staff Report     Packet Pg. 54     Item No. 2.Page 32 of 35 ADVISORY GROUP INPUT Summary Report of the Advisory Group The purpose of convening an Advisory Group composed of members with local expertise and construction experience was not to create a consensus document or ratify particular recommendations by majority vote. Instead, the goal was to educate, solicit, and explore the range of issues and opinions among interested parties who participated. A summary report, reviewed by all the members of the Group, was prepared to document their input in to the study (Attachment C). The Advisory Group was a first step in community engagement regarding seismic hazard reduction in Palo Alto. It was intended that the information in the Advisory Group’s summary memo would be provided to the City Council as they consider potential revisions to the City of Palo Alto’s seismic risk management program and seismic hazard identification ordinance. Preferred Policy Directions In summary, discussions with the Advisory Group revealed little to no support for maintaining the status quo. Strong support did exist for retrofitting buildings already in the program, particularly URM buildings, and for addressing more building types, particularly soft-story wood frame buildings and older concrete tilt-ups. For buildings addressed in the current ordinance, the group generally thought a mandatory retrofit requirement would be feasible and fair. Three decades later, market forces alone have clearly not been enough to motivate upgrade of these remaining structures. Because the barriers to retrofit work for these properties are not known, case-by-case management by City staff may be necessary. There was hesitance, however, about extending or increasing incentives for owners that had not voluntarily taken advantage of the FAR bonus available in the past. More detailed conversations took place about other building category priorities and policy features focused on extending the vulnerable building types they addressed and the requirements for retrofit compliance. These program alternatives are incorporated into Options 3, 4, and 5 (see the “Survey of State and Local Seismic Policies” section). The Advisory Group was briefed on structural types generally known to be vulnerable that are common or significant to Palo Alto and estimated to have reasonable loss reduction to retrofit cost ratios. The Group’s goal was to focus on a subset of categories that seemed to have high potential to benefit the owner, occupants, and the broader community. Some participants showed greater concern about residential properties, and debated whether commercial and residential properties should be treated the same or differently. The Advisory Group showed high interest in addressing multi-family residential earthquake risks, in particular by starting a soft-story wood frame program as many other California cities have done. One soft-story wood frame program approach discussed was to have two phases: 1) owners following notification would be given several years to do a voluntary retrofit, along with more generous incentives; and 2) later a mandatory timeline would kick in and incentives would be phased out. The group noted that exemptions such as parking requirements, permission to Item 2 Item 2 Staff Report     Packet Pg. 55     Item No. 2.Page 33 of 35 add other unit(s), or the ability to transfer development rights for additional square footage would likely be attractive and useful incentives for the multi-family soft story building type. Other vulnerable building categories of concern were also reviewed, including pre-1977 tilt-up concrete structures. There are a modest number of these buildings in Palo Alto, but Advisory Group members noted that their uses are changing. Many buildings previously used as warehouses are now being repurposed for office space. The higher occupancies increase the public safety stakes of any seismic deficiencies. Currently, there is no mandate in the regulations to address earthquake vulnerabilities while other upgrades and build out are being done to these structures. A substantial renovation trigger mandate might make sense, but the percent of the value of the structure used as a trigger might need to be lowered in order to get compliance. Such properties with more than one story should perhaps receive higher priority for retrofit. Potential Issues for Future Study and Consideration For some issues, based in part on Advisory Group discussions, additional information may be beneficial to help develop a strategy and to better understand potential impacts on key stakeholders and community concerns. Some of these issues are primarily economic and were outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. These issues include the following: A.Occupants and tenants a. How much would a typical retrofit add to the monthly rent of a multifamily soft-story wood frame apartment tenant? b. Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? c. If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? d. What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? B.Property owners, developers, and business owners a. What are the characteristics of property owners that would be affected? b. How might small businesses be affected compared to larger ones? c. How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? C.Impacts of Seismic Restoration on Retention of Historic Structures in the City a. How can we ensure that the review of initial seismic evaluations identify those structures that are listed in the City’s Historic Inventory or potentially significant and flag them for attention during subsequent review? b. How can we develop a clear process for reviewing proposed seismic retrofits to historic structures that is coordinated among responsible city departments and is consistent with Item 2 Item 2 Staff Report     Packet Pg. 56     Item No. 2.Page 34 of 35 current regulations and Community policies? c. How can we ensure that property owners take advantage of Seek out retrofit alternatives that are consistent with the Historic Building Code, historic characteristics of the structure, and provide the required most risk reduction? D.City departmental resources and budgets a. What would be the loss in revenue to the Building Department if fee waivers were offered? b. What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? c. What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? d. What would be the costs to provide and administer any incentives offered to property owners? E.Overall community economic health a. What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? F.Other related issues a. It was brought up in the Advisory Group that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with city departments agreeing to coordinate on a specified accelerated project review timeframe. b. Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. c. Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. d. The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated into the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. ATTACHMENTS Attachment A: Seismic Risk Assessment Study Final Report Item 2 Item 2 Staff Report     Packet Pg. 57     Item No. 2.Page 35 of 35 Attachment B: Seismic Risk Management Program Advisory Committee Members Attachment C: Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes (November 2016) Report #: 2307-1739 Item 2 Item 2 Staff Report     Packet Pg. 58     Final Report Seismic Risk Assessment Study Palo Alto, California 21 December 2016 #2015-087S Rutherford + Chekene 375 Beale Street, Suite 310 San Francisco, CA 94105 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 59     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 60     TABLE OF CONTENTS PALO ALTO SEISMIC RISK ASSSESSMENT STUDY Section / Subsection I.INTRODUCTION............................................................................................................................................. 1 II.LEGISLATIVE REVIEW REPORT....................................................................................................................... 5 1. Introduction ..................................................................................................................................... 7 2. Current California Seismic-Related Building Codes, Legislation, and Key Institutions .................... 7 3. Legislative Leadership and Recent Development.......................................................................... 18 4. Conclusions.................................................................................................................................... 20 5. References Cited............................................................................................................................ 24 III.LOCAL PROGRAM BEST PRACTICES ASSESSMENT ...................................................................................... 25 1. Introduction ................................................................................................................................... 28 2. Analysis of Policy Features and Outcomes of local Seismic Risk Mitigation Programs ................. 30 3. Implications and Potential Policy Directions for Palo Alto ............................................................ 67 4. References and Resources............................................................................................................. 77 IV. V. BUILDING INVENTORY FOR LOSS ESTIMATE............................................................................................... 79 VULNERABLE BUILDING CATEGORIES......................................................................................................... 85 CONCEPTUAL SEISMIC RETROFITTING OF REPRESENTATIVE VULNERABLE BUILDINGS............................. 87 LOSS ESTIMATING FINDINGS FOR EXISTING BUILDING STOCK................................................................... 91 LOSS ESTIMATING FINDINGS WITH BUILDINGS RETROFITTED................................................................... 97 REVIEW OF PAST SEISMIC RETROFITS....................................................................................................... 101 ADDITIONAL RECOMMENDED PROGRAM FEATURES .............................................................................. 103 VI. VII. VIII. IX. X. XI.QUESTIONS TO GUIDE COUNCIL DELIBERATIONS AND POTENTIAL ISSUES FOR FUTURE STUDY ............ 107 1. Questions to help guide council deliberations ............................................................................ 107 2. Potential issues for future study and consideration.................................................................... 108 Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page i Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 61     APPENDICES: Appendix A - Table of Historic California Earthquake Risk Reduction Legislation. Appendix B - Table of Contemporary California Earthquake Risk Reduction Legislation. Appendix C - Table Describing Incentives Used in Local Earthquake Risk Reduction Programs. Appendix D - Options for Moving to a Comprehensive, Resilience Approach Appendix E – Retrofit Concepts Designs for 12 Prototype Buildings Appendix F – Retrofit Cost Estimates for 12 Prototype Buildings Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page ii Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 62     CHAPTER I. INTRODUCTION In 1986, the City of Palo Alto was one of the first cities in California to establish a comprehensive seismic mitigation program. It covers unreinforced masonry buildings, buildings built before 1935 with over 100 occupants, and buildings built before August 1, 1976 with over 300 occupants. After 30 years, 75% of the 89 buildings included in the program have been demolished or retrofitted. The 2014 South Napa Earthquake spurred the City to reevaluate its program. They engaged a team led by Rutherford + Chekene (R+C) to perform a comprehensive assessment of the expected performance of the City’s building stock in potential earthquakes, and started a community engagement effort to help identify resiliency goals and associated mitigation policies and programs. The R+C project team includes Sharyl Rabinovici, a public policy and community engagement specialist; Hope Seligson (initially with MMI Engineering and now Seligson Consulting) for loss estimating; and Vanir Construction Management for cost estimation of building replacement cost and retrofitting. The technical assessment covered over 2,500 buildings (single family and two-family residences were excluded) with a wide array of potentially vulnerable structural systems. The findings show that the estimated losses to Palo Alto buildings and contents in a M7.9 scenario event will be significant, on the order of $2.4 billion. Furthermore, this figure does not include business disruption, or ripple effects in the local economy or real estate market, nor does it include the economic value of loss of life. Among the categories of highest concern are pre-1977 “soft-story” wood frame, pre-1978 tilt-up concrete, pre-1977 cast-in-place concrete construction, and pre-1998 steel moment frames. The technical assessment revealed that the potential reduction in losses from retrofitting these buildings is over $1 billion in a M7.9 scenario event. R+C’s scope included a series of tasks and associated task reports and presentations. These included the following:    A survey of state and local seismic policies and best practices; Development of a building inventory for Palo Alto using digital information and field surveys; Assignment of costs to buildings and contents in the inventory; Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 1 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 63     Description of vulnerable building categories, including five additional categories not covered under the current ordinance;     Conceptual seismic retrofitting of representative vulnerable buildings; Loss estimate findings in a major seismic event for the current condition and after retrofitting; Review of past seismic retrofits; and Discussion of additional recommended program features. These task reports and presentation information have been compiled to form this Seismic Risk Assessment Study. Each chapter in the study addresses one or more of the project task efforts. Appendices provide additional details for selected tasks. A Seismic Risk Management Advisory Group made up of community and industry stakeholders and City staff was appointed and was also an essential component of the overall project. The Advisory Group insured that local building experience and community priorities were considered as the study moved forward. The group met six times with City staff and the R+C team over a period of nine months. The Advisory Group was introduced to the findings regarding the community’s earthquake vulnerability, impacts on vulnerable building types, as well as the ‘best practices’ used by other communities to promote community wide welfare and to encourage seismic retrofit of various vulnerable buildings types. The Advisory Group then discussed the assessment findings and formulated potential directions for City of Palo Alto leaders to consider going forward in updating the City’s seismic mitigation programs. At the end of the Advisory Group process, a summary memo, reviewed by all members of the Group, was prepared to document their input to the study. The November 21, 2016 memo is entitled “Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes.” The following table summarizes the outcome of the seismic risk assessment and includes the Advisory Group discussions. The table is organized around eight vulnerable building categories or building types. Categories I, II and III encompass the identified vulnerable buildings for the 1986 ordinance and are primarily located in the downtown commercial district. Categories IV through VIII include additional buildings at risk, as identified in the Seismic Risk Assessment Study. These buildings are located throughout the city. There was little to no support for maintaining the status quo within the Advisory Group. As shown in the following table, the Advisory Group favored requiring property-owner prepared seismic evaluation reports for all categories, except for Category VIII (other older nonductile concrete buildings). They also favored mandatory retrofit for the remaining Category I unreinforced masonry buildings identified Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 2 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 64     in the 1986 ordinance that have not been seismically retrofitted or demolished. For the Category II and III buildings in the current ordinance, retrofit should be required when a certain event or “trigger” occurs such as when a substantial renovation occurs or the property is put up for sale. Among the new vulnerable building types, the greatest concern was expressed for soft-story wood frame buildings and older concrete tilt-up buildings. The Advisory Group thought that retrofit of these structures should be either mandatory or triggered by substantial renovation or sale. The Advisory Group was concerned about delay in the retrofit of these structures given the number of the vulnerable buildings, the number of people who could be affected should the buildings be significantly damaged, and the considerable cost to the community if the structures in these categories were lost because of an earthquake. The Advisory Group considered a timeline of 2-4 years for the mandatory evaluation report and 4-8 years to complete mandatory retrofit construction. The Advisory Group supported increasing disclosure measures on building status through website listing and tenant notification. They also suggested that the most beneficial financial and policy incentives to encourage compliance with the new requirements would be fee waivers, expedited permitting, and property-assessed financing tools. Following the preparation of the Advisory Group summary, R+C assisted City staff in preparing a staff memo for an upcoming City Council meeting. It includes more detailed recommendations to the Council on proposed revisions to the City’s seismic hazard mitigation ordinance and recommends that the Council provide direction to City staff on revising and expanding the City’s building code and related ordinances. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 3 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 65     Summary of Recommended Policy Directions from the Seismic Risk Management Program Advisory Group Category Approx. Building Number Type Date of Construction Occupants Evaluation Voluntary,Deadlines for Evaluation Report and Disclosure Retrofit Construction (years) Potential Incentives 2ReportTriggered, or Mandatory 1Retrofit Current Program (Potential Revision in Italics) I 10 Un- reinforced masonry NA Over 6 (and over 1,900 sf) Required Mandatory Report: Expired Construction: 2-4 Website listing and tenant Fee waiver, expedited permitting, FAR bonus/ transfer of development rights (TDR)notificationII4 9 Any Before 1/1/35 Over 100 Required Required Voluntary or Triggered Voluntary or Triggered Report: Expired Construction • Voluntary: Not required • Triggered: At sale or renovation III Any Before 8/1/76 Over 300 Expanded Program IV 294 Soft-story wood frame Before 1977 Before 1998 Any Any Required Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Report: 2-4 Same as above Fee waiver, expedited permitting, TDR, parking exemptions, permission to add units Same as Categories I, II and III V 99 Tilt-up Triggered or Mandatory Same as aboveConstruction • Triggered: At sale or renovation • Mandatory: 4-6 VI 37 Soft-story concrete Before 1977 Before 1998 Any Any Any Required Required Voluntary, Triggered or Mandatory Voluntary, Triggered or Mandatory Report: 2-4 Construction • Voluntary: Not required • Triggered: At sale or renovation • Mandatory: 6-8 Same as above Same as Categories I, II and III VII VIII 35 Steel moment frame Other older Before 1977 nonductile concrete TBD Not rec. at Not this time Report: NA NA NA recommended Construction: NA at this time 1Voluntary: Retrofit is voluntary. Triggered: Retrofit is triggered when the building is sold or undergoes substantial renovation. Mandatory: Retrofit is required per a fixed timeline. 2Deadlines provide a potential range. Timelines would vary depending on tiers or priority groupings of different subcategories. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 4 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 66     CHAPTER II. LEGISLATIVE REVIEW REPORT Executive Summary This chapter summarizes the seismic risk management policy context within the state of California to support Palo Alto’s current effort to update its program. The report was prepared per Task 2 of the Consulting Agreement between Rutherford + Chekene and the City of Palo Alto, dated August 17, 2015. The scope of Task 2 is to: Review existing and pending State legislation related to soft-story buildings and other seismically vulnerable buildings and provide a brief summary. Provide a concise review of relevant and pending state legislation, with a summary that can be presented at community and staff meetings or in reports to Council. The process of creating this legislative review included searches of legislative data bases, search and review of published and online reports and materials, several phone interviews with leaders in the engineering profession as well as local and state government staff, and development of insights from the consulting team based on their experiences in this arena. High level findings include the following: Palo Alto is affected by numerous relevant California existing laws and regulations dating from the 1930s through the present. These laws regulate many aspects of Palo Alto’s built environment, including certain classes of building uses such as hospitals, public schools, and essential facilities; setting code minimums for new construction; and mandating land use planning and real estate disclosure measures for natural hazards including earthquakes. Unreinforced masonry (URM) is at present the only structural system type for which the state requires local jurisdictions to have a program. If it so chooses, Palo Alto has wide authority to expand or strengthen its approaches to seismic mitigation. The power to do more about earthquake vulnerabilities is primarily in the hands of the local jurisdictions that have significant discretion in the kinds of policies they can adopt. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 5 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 67     Palo Alto has many additional actions it can take to make sure it is complying and taking greatest possible advantage of state level regulations and opportunities. In particular, opportunities exist now to align a new seismic program with two ongoing mandated planning efforts the City is already engaged in: Palo Alto’s General Plan and its Local Hazard Mitigation Plan. Based on what state laws allow and in some cases recommend, many broad policy directions exist for Palo Alto going forward in terms of updating its seismic mitigation program. For example, Palo Alto could choose to: (1) implement measures to increase the effectiveness of its current program, for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation; (2) expand the City’s current voluntary seismic mitigation programs to address additional building types or uses; (3) add mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story buildings or older concrete structures; (4) upgrade the City’s current voluntary URM program to make retrofitting mandatory; (5) create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types; (6) craft a program that combines any or all of the above measures. Local precedents for all these types of approaches exist and are described and discussed in a separate Task 3 report; or, (7) continue the status quo current program. Although formally outside the scope of the current effort, Palo Alto also has additional opportunities for strengthening and expanding its earthquake-related efforts in terms of land use planning, public education and awareness, and small residential structures, such as: (8) develop partnerships with the private and non-profit sectors to promote insurance take up and business continuity planning; and, (9) devote more resources to increasing awareness among its citizens about low cost or free ways to become more aware and prepared for disasters more broadly. Ultimately, the recommended policy directions and action steps for Palo Alto will be informed by related efforts in this project to analyze the most current vulnerability information available, and later determined through an inclusive decisionmaking process going forward. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 6 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 68     1. INTRODUCTION This report surveys the public policy landscape in the state of California related to earthquake mitigation and describes each policy or program’s relevance for Palo Alto and similar jurisdictions. The scope is intentionally broad so that it can serve as a primer or look-up resource for persons with varied levels of background knowledge about the topic. Section 2 organizes information about the reviewed policies, programs, and institutions based on the type of policy or program. These range from building codes and mitigation mandates to educational efforts and tax-based loan financing strategies. Section 3 briefly provides information about current State level policy leadership and the small amount of earthquake-related recent and proposed legislation. Section 4 presents options for Palo Alto through a summary of the review’s findings. Appendices A and B to this report provide detailed tables of current and pending or recent legislative proposals, respectively. The process of creating this Legislative Review included searches of the California’s LegInfo database,1 search and review of published and online reports and materials, several phone interviews with state and engineering profession leaders, and development of insights from the consulting team based on their experiences in this arena. This review covered over 50 related individual existing laws or passed referenda, in addition to the state’s Existing and Historic Building Code provisions. 2. CURRENT CALIFORNIA SEISMIC-RELATED BUILDING CODES, LEGISLATION, AND KEY INSTITUTIONS This section presents legislation and programs in narrative format to address interrelationships among these laws and to present broader implications for Palo Alto. Relevant laws and programs related to Palo Alto’s obligations and opportunities regarding earthquake mitigation are categorized by type and how each works. Specific laws referenced are shown in bold. The accompanying table in Appendix A lists the identified relevant current state legislation organized by year established. State laws related to seismic safety can be categorized as relating to building codes, targeting of existing building types or uses, land use planning, real estate practice requirements, and financial policies such as the tax code, insurance, and incentives. 1 http://www.leginfo.ca.gov (Accessed January 13, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 7 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 69     Building Codes New construction in Palo Alto is governed by the California Building Code (CBC) that is updated every three years. Updates are adopted by the City Council. The International Building Code (IBC) is the underlying model code on which the provisions of the CBC are based. Legally, every local jurisdiction in California is required to adopt the state building code and to enforce that code. Above and beyond the minimums of the CBC, each jurisdiction has flexibility if justified by local climatic, geological (including seismic), and topographical conditions. Several jurisdictions have done that as part of their seismic mitigation programs, as detailed later and in Chapter III. Standards for rehabilitation, renovation, repairs, retrofits, or additions to existing structures exist in Chapter 34 of the CBC. The International Existing Building Code (IEBC) provides additional specific methodologies that jurisdictions may decide to adopt in whole or in reference to particular sections. The City of Palo Alto has its own Historic Building Inventory of hundreds of buildings as well as several Historic Districts and both state and federally designated historic properties. Therefore, the State Historical Building Code2 is also relevant, as administered by the Division of the State Architect (DSA) under the Department of General Services. Officially designated historic structures are subject to different rules for rehabilitation which are generally more flexible and permissive than those in Chapter 34 of the CBC. Local jurisdictions can specify enhancements for seismic reasons as long as the justifications and nature of such changes are fully public and documented on record with the State 3 4Historical Building Safety Board. A detailed list of key provisions is given on the DSA website . Targeted Building Types Unreinforced Masonry (URM) Inventories of specific building types have formed the backbone of California seismic policy towards existing buildings since at least the 1930s, but it was the 1986 Unreinforced Masonry (URM) Law that firmly established the precedent of using inventories to promote retrofits of existing seismically vulnerable buildings. Through this policy, in Section 8875 of the California Government Code, the State Legislature required all 366 local governments in Seismic Zone 4 (the highest hazard level) to inventory their URM buildings, establish some kind of loss- 2 Health and Safety Code, Division 13, Part 2.7, §18950-18961. 3 “Each local agency may make changes or modifications in the requirements contained in the California Historical Building Code, as described in Section 18944.7, as it determines are reasonably necessary because of local climatic, geological, seismic, and topographical conditions. The local agency shall make an express finding that the modifications or changes are needed, and the finding shall be available as a public record. A copy of the finding and change or modification shall be filed with the State Historical Building Safety Board. No modification or change shall become effective or operative for any purpose until the finding and modification or change has been filed with the board.” [Health and Safety Code §18959.f.] 4 http://www.dgs.ca.gov/dsa/AboutUs/shbsb/shbsb_health_safety.aspx (Accessed January 23, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 8 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 70     reduction or remediation program within four years, and report progress to the California Seismic Safety Commission (CSSC). Each county or municipality was allowed to design its own program. In general, three main types of local programs were utilized: 1) mandatory retrofit, 2) voluntary retrofit, and 3) notice to owners that the structure is a URM building. When retrofits were encouraged or required, the local government set the standards to be met. Palo Alto already had an inventory and program in place for URMs at the time the law was passed, and thus it was mainly subject to the reporting requirements. Mandatory signage was later required and is another controversial aspect of the State’s approach to URM buildings. Section 8875.8 of the Government Code increased enforcement efforts on the requirement for warning placards to be posted at the entrances to un-retrofitted URM buildings. In 2006, URM building owners had posted 758 signs (see Figure 1 for required text); almost all jurisdictions report the signage had no noticeable effects (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Figure 1: URM sign example text. Reviews of the URM Law by the CSSC have shown it to be a success over the long term. In 2006 (the last comprehensive state survey available), compliance with the policy was 93%, and over 70% of identified URM buildings have been either retrofitted or demolished (CSSC, Status of the Unreinforced Masonry Building Law, 2006). More than half (52%) of affected jurisdictions adopted a mandatory program, which has proven by far to be the most effective type. Eighty- seven percent of identified properties have been retrofitted or demolished in jurisdictions with mandatory programs, compared to thirteen to 25 percent in jurisdictions with other program types. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 9 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 71     Some of the URM law’s influences are subtler. The state URM law is credited with creating greater awareness among community leaders and increasing practical experience and capacity to address seismic policy implementation in local jurisdictions. It set the precedent of preserving “local choice” in how to address the problems of seismically-vulnerable existing buildings. This law also brought some public attention to the issue, through exposure to warning signs at building entrances. In jurisdictions with highly effective programs, the URM law likely set the stage for greater willingness to adopt stronger, more proactive approaches for other building types. Targeted Building Uses Hospitals Palo Alto is host to at least two major hospitals, the Palo Alto Veteran’s Administration Hospital and the Lucile Packard Children’s Hospital, as well as a number of urgent care clinics and other health care facilities, for instance related to Stanford Hospital. State-mandated seismic minimums and upgrade requirements for hospitals were put in place in 1973 through SB 1953 and periodically amended since. The Office of Statewide Health Planning & Development (OSHPD) develops guidelines, administers the program, and oversees compliance. Extraordinary resources have been spent to upgrade and develop new hospitals in response to SB1953, resulting in major improvements to both seismic safety and in patient care (OSHPD, 2005). However, progress has been slower than hoped, in part because of the costs of achieving the high levels of performance that the law demands but also because of program complexity and organizational difficulties in managing upgrade programs. A comprehensive study of SB 1953 implementation showed that even organizational leaders highly motivated to reduce risk in the context of strict mandates were not always able to achieve timely progress (Alesch, 2012). Public Schools Following the 1933 Long Beach quake that rendered over 230 Southern California schools unsafe, the Field Act was passed to require higher seismic design minimums in new public school construction. The 1939 Garrison Act required school districts to retrofit or replace pre- Field Act schools. However, many schools did not comply until the mid-1970s.The Division of the State Architect (DSA) oversees this program, and since 2002 has done tracking via the “AB Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 10 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 72     300 List.” 5 Further detail about Field Act implementation statewide can be found in formal state reports (See, e.g., CSSC, 2009). The status of approximately six Palo Alto area schools that have buildings on the “AB 300 List,” could be relevant to future policy development efforts depending on the extent to which the city relies on schools in its emergency response plans. Functioning schools are also known to play a large role in resumption of local business activity as part of recovery. Essential Services Buildings State law recognizes that buildings that house mission-critical jurisdictional services and administrative functions should be safe and functional after a major local event. Palo Alto is required by the California Essential Services Building Seismic Safety Act of 1986 to follow enhanced regulations during the design, rehabilitation, and construction of essential service facilities, defined as fire stations, police, California Highway Patrol, or sheriff offices, or any buildings used in part or whole to conduct emergency communications and operations. As with hospitals, the DSA develops and maintains the design and construction requirements and tracks compliance for this law. Land Use, Zoning, and Real Estate Disclosure Requirements General Plan Requirements According to the State Planning and Zoning Law, Palo Alto and other California jurisdictions have been required since 1971 to address earthquake vulnerabilities in their General Plans, currently in the Safety Element.6 The Governor’s Office of Planning and Research (OPR) provides General Plan Guidelines for what jurisdictions must do in creating and implementing their plans, mostly recently in 2011.7 Typical earthquake-related provisions focus on avoiding development in hazardous areas (for instance near known faults) and adoption of zoning and use requirements that can reduce hazards (such as creation of retention and recharge basins to lessen the impacts of storms). Palo Alto’s last General Plan was adopted over ten years ago. Since 2008, staff have been reviewing and updating different elements in turn. An analysis should be undertaken of any relevant earthquake hazard-related aspects in it, and care should be taken to align and integrate future mitigation program efforts with the City’s updated General Plan, which is 5 http://www.documents.dgs.ca.gov/dsa/ab300/AB_300_List.pdf (Accessed January 23, 2016). List described as up to date as of Thursday, September 10, 2015. 6 Government Code §65300-65303.4. https://www.opr.ca.gov/docs/complete_pzd_2011.pdf (Accessed, March 6, 2016).7 Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 11 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 73     currently in development. As of 2016, Palo Alto is working on a comprehensive update to be in effect through 2020 to 2030. More detail is available on a city website designed specifically as part of a highly engaged community involvement process.8 Zoning Palo Alto is on the list of California cities that contain some areas designated by the state as an “Earthquake Fault Zone” (Hart, 2010). The California Geological Survey (CGS) under the California Department of Conservation (DOC) oversees implementation of the Alquist-Priolo Earthquake Fault Zoning Act of 1972, a particularly important legacy policy in understanding California earthquake risk management policy. The CGS regularly conducts and updates studies that identify active faults. Buildings within an “Earthquake Fault Zone” face additional planning, use, and disclosure obligations. Additionally, the 1990 Hazards Mapping Act gave DOC responsibility for mapping areas prone to liquefaction, earthquake-induced landslides, and amplified ground shaking. Within these mapped Zones of Required Investigation, geotechnical investigations to identify hazards and formulate mitigation measures are required before permitting most development. Small Residential Real Estate Mandates and Disclosures All sellers of real property in Palo Alto are required to disclose certain facts about the building location and its condition related to earthquake hazards. These requirements began with the Natural Hazards Disclosure Act of 1990, which has detailed provisions for what sellers of real property are obligated to do and what kinds of information they must provide prior to point of sale. Requirements are more extensive when the property being sold lies within one or more of the state-mapped hazard areas, including landslides, liquefaction, and Earthquake Fault Zones.”9 Since 1993, all sellers of residential properties of four units or less must under Government Code Section 8897.1-8897.5: o Inform the buyer about known home weaknesses related to earthquake risk; o Properly strap the water heater; o If the home was built before 1960, deliver a copy to the buyer of the Homeowner’s Guide to Earthquake Safety10 brochure produced by the CSSC (The real estate agent is holds responsibility for this requirement being met); 8 9 http://www.paloaltocompplan.org/ (Accessed January 23, 2016). http://www.conservation.ca.gov/cgs/rghm/ap/Pages/disclose.aspx (Accessed January 20, 2016). Available at: http://www.seismic.ca.gov/pub/CSSC_2005_HOGreduced.pdf (Accessed February 1, 2016).10 Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 12 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 74     o Deliver to buyers a Natural Hazards Disclosure Form telling buyers whether the home is in an Earthquake Fault Zone or in a Seismic Hazard Zone; and, o Complete and deliver to buyers a Residential Earthquake Hazards Report. A similar document called the Commercial Property Owners Guide to Earthquake Safety11 makes recommendations for commercial property buyers and sellers at the time of sale. The only requirement is that sellers must deliver a copy of the booklet to a buyer, “as soon as practicable before the transfer,” (Government Code, Section 8893.2) if the property was built before 1975 and has precast (tilt-up) concrete or reinforced masonry walls and wood-frame floors or roofs. Palo Alto currently features links to both the aforementioned guides on its Building Department website. Legal Obligations to Tenants California case law in Green v. Superior Court (1974, 10 Cal.3d 616) established that a rental unit must be “fit to live in,” or “habitable.” In legal terms, “habitable” means that the rental unit is appropriate for occupation by human beings and that it substantially complies with state and local building and health codes that materially affect tenants’ health and safety (CA Civil Code §1941, 1941.1). At time of writing, no common law precedents could be identified regarding thresholds related to seismic risk that would be actionable for tenants to reasonably claim breach of a landlord’s implied warranty of habitability. California law is broad by stating that “other conditions may make a rented property not habitable” (CA Civil Code §1941, 1941.1). For example, a rented property may not be habitable if it does not substantially comply with building and housing code standards that materially affect tenants' health and safety (CDCA, 2012). This could be a lead or mold hazard, sanitation issues, or an endangering nuisance, but also potentially if the building is substandard because of a structural hazard. In seeking to develop any new programs, Palo Alto should consider conducting a legal analysis of this important but untested aspect of seismic mitigation policy. Some housing and tenant rights groups have asserted that soft-story and other generally accepted seismic vulnerabilities may constitute a deficiency that a landlord has an obligation to repair, regardless of whether the local jurisdiction has required such work. Citizen complaints of this nature surfaced in Berkeley for instance in 2008 to 2010 (personal communication, 2010 with Jay Kelekian, City of Berkeley Rent Stabilization Board President). 11 Available at: http://www.seismic.ca.gov/pub/CSSC_2006-02_COG.pdf (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 13 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 75     Special Earthquake-Related State-Level Entities and Programs Following are a few more important state-level entities and resources of which Palo Alto can take advantage. California Seismic Safety Commission (CSSC) The California Seismic Safety Commission (CSSC), established in 1975, advises the Governor, Legislature, and state and local governments on aspects of earthquake vulnerability and policy. Its staff offer technical assistance to cities in developing and carrying out seismic related programs. The CSSC is responsible for maintaining a five-year California Earthquake Loss Reduction Plan to establish strategy and coordination for state and local government actions to mitigate earthquake hazards. The most recent statewide Loss Reduction Plan was published in 2013 (CSSC, 2013). It contains detailed lists of policy issues and recommendations that, while comprehensive, prioritized, and sensible, have had limited traction owing to lack of elected official leadership and budget. Other duties include tracking progress on the state URM law and deriving policy lessons from earthquake events. Several CSSC publications are among the best resources for evaluating local mitigation programs. California Earthquake Authority (CEA) The California Earthquake Authority (CEA) is a privately-funded, publically managed non-profit entity that provides private insurance policies to homeowners and renters. Eligibility includes homes of four units or less through participating insurers. The earthquake insurance take-up rate statewide is around ten percent. As of January 2016, CEA-affiliated underwriters can now offer a premium discount up to 20% for mitigation investments made. The number of small residential buildings in Palo Alto whose owners carry earthquake insurance is not known, but those that do or that purchase it from hereon could be eligible for this discount. Palo Alto could potentially work to make sure this benefit is better advertised and utilized by building owners. Additionally, a substantial portion of CEA’s annual premium intake is legislatively required to be spent on efforts to achieve mitigation in one-to-four unit homes throughout the state. These funds have been invested in research as well as an important new mitigation grant program for small residential houses called Earthquake Brace and Bolt, which is further described in the Financial Incentives section on the California Residential Mitigation Program. Currently, enrollment for cities is closed but expansion is planned in the future. Governor’s Office of Emergency Services Formerly known as the California Emergency Management Agency, the Governor’s Office of Emergency Services (Cal-OES) coordinates statewide emergency preparedness and response activities. Palo Alto might have untapped opportunities to train City employees at CAL-OES’s Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 14 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 76     Specialized Training Institute.12 For instance, they have an “Essential Emergency Services Concepts – Earthquakes.” Financial Provisions, Tax Code, and Other Incentive Policies The potential difficulty of affording retrofit work is universally recognized as a barrier for public and private owners alike. A variety of reports have attempted to catalog incentive, financing and in-kind assistance options that are relevant to city earthquake and resilience programs (See e.g., ABAG, 1992; ATC, 2010; ABAG, 2014; MMC, 2015). This section highlights a few key pieces of enabling state legislation and federal tax programs that jurisdictions such as Palo Alto could utilize. Specific examples of how different jurisdictions have used specific financing and incentive programs are analyzed in the Task 3 Report. General Obligation, Special District, and Mello-Roos District Bonds Palo Alto is allowed to take on general obligation bond debt to help pay for retrofit or construction of new public buildings and to generate funds for providing loans to private owners for seismic work if doing so constitutes a compelling public purpose (Government Code §43600-43638; Government Code §29900-29930). Advocates have also speculated that communities might be able to use the Mello-Roos Community Facilities Act of 1982 (Government Code §53311-53317.5). This act allows localities in California to create special Capital Facilities Districts that can sell bonds to generate funds for infrastructure and community facilities and then levy additional property taxes on the real property owners in that district. Such taxes are not subject to Proposition 13 restrictions on property tax increases. Covered services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection in old or newly developing areas. The tax paid is used to make the payments of principal and interest on the bonds. Historic Property Tax Reductions Palo Alto has many historic structures and may be able to take advantage of the Mills Act of 1972,13 which gives local governments the authority to enter into contracts with owners who restore and maintain historic properties. In exchange, the property owners could get significant property tax savings. Although cumbersome, St. Helena, California is one example of a city that used this tool to help owners of unreinforced masonry buildings to seismically retrofit (ABAG, unpublished soft-story report, 2015). 12 See: http://www.caloes.ca.gov/cal-oes-divisions/california-specialized-training-institute (Accessed February 1, 2016). California Government Code, Article 12, §50280-50290, California Revenue and Taxation Code, article 1.9, §439-439.4.13 Further information available at: http://www.ohp.parks.ca.gov/?page_id=21412 (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 15 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 77     Limits on Increases on Property Tax for Seismic Retrofit Costs Existing state tax law (California Revenue and Taxation Code §74.5) provides that the cost of an earthquake retrofit should not increase the property assessment used to determine the amount of property taxes. The extent to which building owners take advantage of this benefit is unknown and might be low because of requirements to submit specific information to their County Assessor’s Office prior to conducting retrofit work. Many Assessors’ Offices do not have forms for this purpose and their staff is not trained to process this benefit. At this time, it is not known how Santa Clara County manages this issue. Palo Alto could potentially work to make sure this benefit is better advertised and truly available to building owners. Property Assessed Clean Energy (PACE) Financing New financing programs are starting to exist that could help owners in Palo Alto who might have difficulty securing financing on their own for a seismic retrofit. Based on the Property Assessed Clean Energy (PACE) model first pioneered for solar improvements, owners can apply for 100 percent financing for seismic retrofit work at competitive fixed rates over the useful life of the improvements, to be repaid over up to 20 years with an assessment added to the property’s tax bill. The levy stays with the building upon sale and costs can be shared with tenants. Both Berkeley and San Francisco are participating in the open access AllianceNRG Program14 that offer residential property owners this financing solution primarily for sustainability upgrades and seismic strengthening projects for soft-story construction are also eligible. The AllianceNRG program is offered through California’s Statewide Community Development Authority (CSCDA) and partnerships with additional communities are now being offered state-wide since 2015. After the concept was launched in Berkeley in 2008, PACE programs stalled in 2010 the country's two biggest home lenders, Fannie Mae and Freddie Mac, decided not to underwrite mortgages for PACE customers because it added too much risk in the event of a default because the PACE loan took precedence over the mortgage. Anecdotally, jurisdictions have had some difficulties implementing this type of program for energy improvements.15 Challenges include setting up this complex financing instrument which has heavy involvement of third parties, barriers to owners that want to refinance, and barriers to the transfer of a PACE-financed properties to a new owner. 14 15 https://www.alliancenrg.com/retail/ (Accessed January 20, 2016). See e.g., http://www.voiceofsandiego.org/topics/science-environment/some-homeowners-looking-to-move-must-deal- with-a-change-of-pace/ (Accessed February 2, 2016. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 16 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 78     California Residential Mitigation Program (CRMP) Palo Alto and other cities can benefit if the citizens can stay in their homes and “shelter in place” following a major local quake. One new important effort on this front is the California Residential Mitigation Program (CRMP). It was formed in August 2011 to carry out mitigation programs to assist California homeowners who wish to seismically retrofit their houses. CRMP’s goal is to provide grants and other types of assistance and incentives for these mitigation efforts. The California Residential Mitigation Program is a joint-exercise-of-powers entity (JPA) formed by two core members: the California Earthquake Authority (a public instrumentality of the State of California known as CEA) and the Governor’s Office of Emergency Services (Cal- OES). CRMP is a legally separate entity from its members. The first of these programs, Earthquake Brace + Bolt: Funds to Strengthen Your Foundation (EBB)16 was launched as a pilot project in September 2013 in selected zip codes only. EBB offers a cash grant up of to $3,000 for qualifying bolts or sill anchoring installment. Homeowners must register and be accepted into the program, with a cap on the number of participants. The current registration window was open from January 20 to February 20, 2016. Participation is determined by lottery if more applications are received than funds are available. At present, no Palo Alto zip codes are in the program. The selection of the specific neighborhoods and zip codes was based upon analysis of U.S. Census data identifying areas of high seismicity and having a concentration of owner-occupied homes built in 1979 or earlier. According to personal communications with CEA mitigation program representatives, Palo Alto zip codes are not likely to be prioritized highly owing to the modest number of very old single family homes. Federally Mandated Municipal Obligations and Opportunities Even though the focus of this review is California, two particularly relevant federal programs for Palo Alto are described below. As with the state, no centralized governmental authority exists at the federal level to regulate issues of seismic safety. Instead, authorities and strategies are widely distributed among agencies at the local, state, and federal levels. For instance, the Department of Housing and Urban Development operates several initiatives related to safer homes and resilient communities,17 and the General Services Administration must confront seismic risk concerns as it manages most federal facilities. The federal role is concentrated in FEMA and principally focused on emergency response and recovery, although mitigation is also addressed. 16 https://www.earthquakebracebolt.com/ (Accessed January 23, 2016) See, e.g., the Smart Growth America Resilience States program, http://www.smartgrowthamerica.org/resilience/17 (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 17 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 79     Local Hazard Mitigation Planning Under the Disaster Management Act The federal Disaster Management Act of 2000 (DMA) and subsequent amendments specify that local jurisdictions and states must have approved Hazard Mitigation Plans in place in order to be eligible for aid following Stafford Act Disaster declarations and a variety of other benefits. The State of California Multi-Hazard Mitigation Plan of 201318 is a comprehensive source of information about state level requirements, mitigation strategies, as well as local and state progress and opportunities for coordination (CSSC, 2013b). Palo Alto current complies with the DMA through its participation in the 2011 Santa Clara County’s Office of Emergency Services Annex to a 2010 region-wide “umbrella” Local Hazard Mitigation Plan (LHMP) created by the Association of Bay Area Governments (ABAG). To create the plan, representatives from County departments, private sector businesses, stakeholders, and thirteen of the fifteen incorporated cities in Santa Clara County collaborated in identifying and prioritizing potential and existing hazards. Mitigation objectives were identified and prioritized and specific action steps are listed, many of which have been taken. Palo Alto is currently preparing its contributions for updates to the Santa Clara County LHMP which must be completed, submitted to the state, and approved by June 2017. The LHMP process creates an opportunity to build synergies between an updated seismic program and other mitigation efforts city and county-wide. Federal Emergency Management Agency (FEMA) Pre-Disaster Mitigation Grants Cities such as Palo Alto are eligible to apply to the Pre-Disaster Mitigation (PDM) Grant Program19, created by Section 203 of the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act, funded annually by Congressional appropriation. The program aims to assist States, territories, Federally-recognized tribes, and local communities in implementing a sustained pre-disaster natural hazard mitigation program. Cities must submit a detailed application during an open window to an annual competition. This program awards planning and project grants as well as providing assistance in raising public awareness about reducing future losses before disaster strikes. The program works on a 75%/25% cost share between FEMA and the local jurisdiction, respectively, with a maximum grant of $3 million. Cities can submit applications for multiple projects. Palo Alto could apply for support for future projects ranging from updating city owned structures, direct financing or grants to a private class of buildings or specific important structure. 18 19 Available at: http://hazardmitigation.calema.ca.gov/docs/SHMP_Final_2013.pdf (Accessed February 1, 2016). http://www.fema.gov/hazard-mitigation-grant-program (Accessed January 15, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 18 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 80     The disaster occurrence that opens a funding availability window does not necessarily have to affect Palo Alto directly. For instance, any California jurisdiction with an active LHMP was permitted to propose projects based on the Presidential Disaster Declaration for the 2015 Valley and Butte fires. Finally, if City of Palo Alto employees have not already taken advantage of it, training opportunities are available at the FEMA Emergency Management Institute in Maryland.20 3. LEGISLATIVE LEADERSHIP AND RECENT DEVELOPMENTS Palo Alto citizens are represented in the state Senate by Jerry Hill (D) and in the Assembly by Rich Gordon (D), 24th District, both with terms ending in 2016. High earthquake exposure throughout coastal California has led legislators from a variety of districts to author legislative proposals. Most recently, leadership has come from elected officials Nazarian, Chiu, and Monning. Several different committees in the California Assembly and Senate have jurisdiction over issues related to seismic safety and mitigation, building codes, and earthquake-related programs. In the Assembly, the Committee on Housing and Community Development has jurisdiction over building standards, common interest developments, eminent domain, farm worker housing, homeless programs, housing discrimination, housing finance (including redevelopment), housing, natural disaster assistance and preparedness, land use planning, mobile homes/manufactured housing, and rent control. The Assembly Committee on Local Government has authority over a range of General Plan, city finance, and housing policies. The most relevant Senate committee is Transportation and Housing, which governs issues such as transfer of ownership, financing districts, manufactured housing, building codes and standards, and common interest developments. Through these committees, legislators have considered several pieces of legislation related to earthquake mitigation in recent years. This review identified around ten such pieces of legislation debated in the 2013 to 2015 California legislative sessions, including passed, pending, vetoed or never fully heard bills (see Appendix B). Three key legislative proposals of interest to Palo Alto are briefly described here. Vetoed: Seismic Mitigation Tax Credits In the most recent session, Assembly Member Adrin Nazarian (District 46 in the San Fernando Valley) has sponsored legislation to create a state-wide seismic mitigation tax credit. The 2015 version AB 428 passed the legislature but was vetoed by the Governor based on funding availability, lack of technical and administrative capacity in the Franchise Tax Board, and the 20 https://training.fema.gov/emi.aspx (Accessed February 1, 2016). Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 19 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 81     program’s potential complexity. The law would create a first-come first serve state tax credit equal to 30 percent of a “qualified taxpayer’s” “qualified costs” incurred for “seismic retrofit construction.” Pending: Permissions to Expand CEA Insurance Mitigation Discounts CEA was active in promoting legislation last year to empower the CRMP to offer grants for small residential retrofit work. Currently pending are AB 1429 (Chiu) and AB 1440 (Nazarian) that will provide $3 million dollars to the CRMP for expanding its current EBB program. Dead: Soft-Story and Older Concrete Mitigation Program Authorization AB 2181 (Bloom)21 would authorize each city, city and county, or county to require that owners assess the earthquake hazard of soft story residential buildings and older concrete residential buildings. It includes older concrete residential buildings constructed prior to the adoption of building codes that ensure ductility, and to initiates programs to inform owners, residents and the public about such dangers. There is no state law that forbids such programs, but this law if passed would remove any ambiguity that such programs are permitted and further justify local actions to that effect. 4. CONCLUSIONS Palo Alto is affected by numerous California laws and regulations related to seismically vulnerable structures, dating from the 1930s to the present day. The requirements relate to many aspect of the city’s built environment, including:    Code minimums for new construction; Standards for seismic rehabilitation, including special provisions for historic properties; Special programs and expectations for certain classes of use such as hospitals and public schools, and essential facilities;   Mandatory and voluntary unreinforced masonry programs; Mandated zoning and land use planning requirements that restrict use and add requirements;   Grant and insurance programs available to one to four unit dwellings; Financing authorities such as issuance of general obligation bonds and provisions for handling of property taxes for the costs of needed seismic retrofit; and 21 http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2181 (Accessed February 1, 2016. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 20 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 82     Real estate disclosure requirements. Beyond some recent and pending efforts related to funding small residential mitigation grant programs and Earthquake Early Warning, there is no apparent momentum at this time for new statewide initiatives. That being said, Palo Alto can take any of several actions listed below to make sure it is complying with and taking the greatest possible advantage of existing state laws and programs. For example:   Palo Alto could confirm that all its URM buildings maintain the required signage. Palo Alto could investigate the status of the approximately six Palo Alto area schools that have buildings on the State’s “AB 300 List” related to the Garrison Act.   Palo Alto could identify and review the status of public facilities covered under the Essential Services Building Seismic Safety Act and review its policies for guiding future planning for or rehabilitation of such structures. Palo Alto could take advantage of the current update process for its Local Hazard Mitigation Plan to develop a strong, coherent, shared vision for how the city is going to address earthquake risk, and encourage jurisdictions and special districts nearby to do the same. Resources from FEMA Hazard Mitigation Grants and knowledgeable partners such as the Association of Bay Area Governments may be available to assist in this effort.   Palo Alto could work carefully to incorporate the most up-to-date assessment of local earthquake vulnerabilities as it revises the Safety Element of its General Plan. Palo Alto could make sure its employees have taken advantage of the best available state and federal emergency management training programs that are relevant to earthquake disasters and recovery. Palo Alto could develop partnerships and devote resources to more fully realizing the benefits of statewide offerings of tax relief and requirements regarding real estate disclosure in private sales. These policies aim to empower buyers and sellers to be better informed and able to make better mitigation decisions for themselves but may be carried out incorrectly and are under-enforced. Palo Alto could, for instance, work to make sure building owners apply for relief from any property assessment increases that would otherwise result from investing in an earthquake retrofit. Palo Alto could seek closer ties to the California Earthquake Authority to help in promoting mitigation and insurance coverage for one to four unit homes. CEA has recently been one of Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 21 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 83     the lead entities in offering policy ideas and grant funding for earthquake mitigation of small residential structures.   Palo Alto could evaluate whether it contains any vulnerable historic properties that might be eligible for tax credits under the Mills Act. This Act provides the most significant direct source of financial support from the state for local seismic retrofitting. Palo Alto could investigate the issue of seismic habilitability minimums for suspected earthquake vulnerable buildings. Legal uncertainty exists about whether tenants are already entitled under current state law to request that their landlord upgrade a structure for being “substandard.”   Palo Alto could join with fellow jurisdictions in advocating for changes in state law to promote seismic mitigation. Palo Alto could develop partnerships and devote resources to bringing more awareness among its citizens about low cost or free ways to become more aware and prepared for disasters more broadly. Cal-OES and many other state and non-profit institutions offer free online tools such as http://myhazards.caloes.ca.gov/ to help citizens understand their risks and take private action. The power to address unmet seismic safety and recovery concerns clearly rests in the hands of cities, counties, and special districts. If it so chooses, Palo Alto has legal authority to widen and/or strengthen its structural mitigation program. Based on what state laws allow and in some cases recommends, this review revealed the following non-exhaustive list of policy directions Palo Alto could pursue going forward: 1. Palo Alto could implement measures to energize and raise the effectiveness of its current program (outlined in City of Palo Alto Municipal Code 16.40), for instance by offering additional or larger incentives or devoting more resources to program visibility and implementation. Making the current program more effective would likely require additional funding sources. Other jurisdictions are experimenting with some success in using tools such as the new state-wide PACE financing program. Palo Alto could investigate opportunities to establish special Mello-Roos or Mills Act districts to help finance local seismic mitigation. 2. Palo Alto could expand its voluntary seismic mitigation program to address one or more combinations of additional building types, occupancy levels, or uses. The State Legislature has Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 22 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 84     formally passed advisory legislation that encourages jurisdictions to adopt policies for building types like soft-story and older concrete.22 3. Palo Alto could create mandatory screening or evaluation measures for one or more vulnerable building types such as soft-story buildings or older concrete structures. Local precedents for these approaches exist and are described and discussed in a separate Task 3 report. 4. Palo Alto could make its current voluntary URM program mandatory. Mandatory URM programs in the State have been on average three times more effective than voluntary ones. 5. Palo Alto could create a program that mandates seismic retrofits for one or more additional (non-URM) vulnerable building types. The State Legislature has formally passed legislation that authorizes cities to adopt rehabilitation requirements for such programs This is important because cities must reference acceptable standards that state clearly how owners can comply with the requirement to retrofit. 6. Palo Alto could craft a program that combines any or all of the above measures. The Task 3 report shows that most leading local earthquake programs involve a customized mixture of goals, requirements, and features. 7. Palo Alto could continue the status quo current program. Nothing under current state law requires Palo Alto to change its current approach. The City of Palo Alto is currently gathering up to date earthquake risk information about its building stock and engaging its citizens and local experts in order to develop and evaluate specific policy alternatives. The ultimate goal is to recommend to city leaders the best possible policy directions for Palo Alto moving forward. 22 Health and Safety Code §19160-19168 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=hsc&group=19001- 20000&file=19160-19168 Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 23 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 85     5. REFERENCES CITED ABAG. (1992). Seismic Safety Incentive Programs: A Handbook for City Governments. Association of Bay Area Governments, Oakland. ABAG. (2014). Soft-Story Housing Improvement Plan for the Cit of Oakland. Oakland. Retrieved from http://resilience.abag.ca.gov/wp-content/documents/OaklandSoftStoryReport_102914.pdf Alesch, D. J. (2012). Natural Hazard Mitigation Policy: Implementation, Organizational Choice, and Contextual Dynamics. New York, NY: Springer Business Science. ATC. (2010). Here Today—Here Tomorrow: The Road to Earthquake Resilience in San Francisco. Community Action Plan for Seismic Safety, Redwood City. Retrieved from http://sfgov.org/esip/sites/default/files/FileCenter/Documents/9757-atc522.pdf CDCA. (2012). California Tenants: A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities. Retrieved January 16, 2016, from http://www.dca.ca.gov/publications/landlordbook/catenant.pdf CSSC. (2006). Status of the Unreinforced Masonry Building Law. California Seismic Safety Commission, Sacramento. CSSC. (2009). The Field Act and its Relative Effectiveness in Reducing Earthquake Damage in Public Schools Appendices. California Seismic Safety Commission, Sacramento. CSSC. (2013). California Earthquake Loss Reduction Plan / Pre-Earthquake Economic Recovery. California Seismic Safety Commission, Sacramento. CSSC. (2013). California Enhanced State Multi-Hazard Mitigation Plan. Sacramento: California Seismic Safety Commission. Hart, W. A. (2010). Special Publication 42 (Fault-Rupture Hazard Zones in California)y. Retrieved from http://www.conservation.ca.gov/cgs/rghm/ap/Pages/affected.aspx MMC. (2015). Developing Pre-Disaster Resilience based on Public and Private Incentivization. National Institute of Building Sciences, Multihazard Mitigation Council of the Center on Fire, Insurance, and Real Estate. OSHPD. (2005). California's Hospital Seismic Safety Law: History, Implementation and Progress. Sacramento. Palo Alto Seismic Risk Assessment Study Final Report December 21, 2016 Page 24 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 86     CHAPTER III LOCAL PROGRAM BEST PRACTICES ASSESSMENT Executive Summary This chapter summarizes the status of local seismic safety and mitigation programs in California with the purpose of informing Palo Alto’s effort to update its own approach. It has been prepared per Task 3 of the Consulting Agreement between Rutherford + Chekene and the City of Palo Alto. The content builds on the state-level policy review presented in Chapter II. The scope of Task 3 is to: Review present best practices among jurisdictions and agencies in this area that require seismic retrofitting and provide incentives, and deliver a brief summary. Provide a concise and practical written summary of what other jurisdictions and counties have done legislatively and programmatically to increase awareness about, assess, and motivate mitigation of seismically vulnerable buildings, both listing and helpfully classifying various approaches that have been used. The process of creating this review included search and review of published and online reports and materials, several phone interviews with community leaders as well as local and state government staff, and development of insights from the consulting team based on their experiences in this arena. Palo Alto is currently laying a solid foundation for future program development by investing in new inventory and risk information as well as community outreach and internal staff discussions. In doing so, it is joining a group of leading coastal California coastal jurisdictions such as Berkeley, Oakland, San Francisco, and Los Angeles that have recently stepped up their earthquake risk reduction efforts. While there is much learning and information sharing going on, each jurisdiction has developed their own customized policy package, and there is no single best model that Palo Alto can straightforwardly adopt. Existing local approaches differ widely in the following ways: Policy mechanisms used to achieve progress; Seismic Risk Assessment Study Final Report December 21, 2016 Page 25 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 87        Scope of targeted building types or uses addressed; Prioritization and compliance timeframes; and Types of incentives offered. Policy mechanisms in use range all the way from inventory only to mandatory retrofit with timeframes under five years. In between are more gradual approaches such as voluntary retrofit advocacy, incentives, provisions that make building deficiencies more visible to the public (disclosure measures), and mandatory screening and evaluation requirements. An important policy decision is whether any mandated actions are implemented on a fixed timeline or triggered at sale or at some renovation cost threshold. Targeted building types and characteristics also vary. The most commonly addressed building type is unreinforced masonry (URM) construction due to state law SB 547, as discussed in the Task 2 report. Over half of URM programs in the state require mandatory retrofit, often but not always with a time frame on the order of ten to twenty years. By 2006, seventy percent of all identified URMs were either demolished or retrofit. Retrofit rates are on average three times higher in jurisdictions with mandatory retrofit compared to voluntary programs. Jurisdictions used a wide variety of both financial and policy incentives to assist URM owners. Some voluntary URM programs, including Palo Alto’s, coupled with incentives, have achieved similar rates of success to mandatory programs. Newer programs have focused on soft-story wood frame buildings, including ten Bay Area jurisdictions and most recently Los Angeles as of 2015. Soft-story wood frame building programs also range in requirements from notification only to mandatory retrofit, but several jurisdictions have innovatively used intermediate mandatory screening and evaluation phases to further assess risk exposure and determine the final set of buildings that will be affected by retrofit requirements. Soft-story wood frame programs have largely been supported in the local community. Even voluntary soft-story wood frame programs can be effective at motivating retrofit action; one fourth of the soft-story wood frame buildings in the City of Berkeley were voluntarily retrofit within a few years after a mandatory evaluation ordinance was implemented. Compliance timeframes in soft-story wood frame programs tend to be short, on the order of two to seven years. A comparatively small number of southern California jurisdictions have acted to address older concrete buildings, including Los Angeles, Burbank, Santa Monica, and Long Beach. Nonductile concrete frame and tilt-up concrete structures in particular are known to pose serious risks. Programs aimed at older concrete range from voluntary guidelines to mandatory evaluation Seismic Risk Assessment Study Final Report December 21, 2016 Page 26 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 88     and full retrofit requirements. Timeframes here vary greatly, from years to decades. Information about the implementation and outcomes of these few programs is very limited. Coming out of this local program review, alternative policy approaches for Palo Alto’s consideration include: Option 1: Status Quo. In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. Floor area ratio bonuses are (were) available and could continue to be offered. Option 2: Increase Scope, but Retrofit Remains Voluntary. Additional categories of structures are added to the mandatory evaluation requirements. These could include any or all of the building types discussed above, potentially also using additional location, use, or occupancy criteria. Option 3: Similar to Option 2, but Additional Disclosure Measures are Incorporated. This option would be similar to Option 2, but with increased use of disclosure measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. Option 4: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by Trigger Threshold This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. Option 5: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. Option 6: Increase Scope, but More Categories are Mandatory This alternative is similar to Option 5, but retrofitting would be required for additional categories on a fixed timeline. Palo Alto can also make its programs more stringent over time. Explicit phasing has been successful in jurisdictions like Berkeley and San Francisco for generating political consensus and enhancing administrative feasibility. Seismic Risk Assessment Study Final Report December 21, 2016 Page 27 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 89     Other program features and implementation factors should be considered in designing a future program. Palo Alto will need to decide whether location, occupancy type, and/or number of occupants should be included in the scope or just the timeline categories. Whether and which incentives to offer is an important issue from a political and economic feasibility perspective, one that affected community members will want to see inclusively addressed. The community should also be involved in discussing which if any disclosure measures are considered necessary and appropriate, such as signage. Additionally, based on the work of cities such as Berkeley, San Francisco, and Los Angeles, Palo Alto has a variety of opportunities to expand and better connect its earthquake mitigation program efforts to other city efforts in support of community resilience goals more broadly. For instance, Palo Alto could encourage building occupancy and resumption program like San Francisco, encourage or fund installation of strong motion instruments, or pursue special programs or requirements for cell phone towers, facades, private schools, and/or post- earthquake shelter facilities. Several leading local program models and planning resources for these types of efforts are introduced in Appendix D. 1. INTRODUCTION This document is meant to be a resource and guide for the Palo Alto community and city leadership as they weigh program needs and options for seismic mitigation policymaking going forward. It offers comprehensive information on many topics so readers with different backgrounds can advance their understanding, along with summary tables and conclusions specific to Palo Alto’s present effort. The approach taken was to document and assess existing and proposed programs that a selected set of other jurisdictions are using to address earthquake vulnerabilities in local buildings. This was done using analysis of city websites and documents, search and review of published and online reports, several phone interviews with local officials and engineering profession leaders, and development of insights from the consulting team based on their experiences in this area. Focusing on a selected set of jurisdictions was appropriate for several reasons. First, relatively few jurisdictions are developing leading earthquake mitigation programs, and those are the most informative models to draw upon. Second, data about jurisdictional programs is very limited. Much of the information that does exist is anecdotal, and it was not within the scope of this review to collect comprehensive new data or to cover a large number of jurisdiction programs statewide or in other countries. Finally, this review emphasizes classification of Seismic Risk Assessment Study Final Report December 21, 2016 Page 28 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 90     similarities and distinctions among a range of leading jurisdiction earthquake structural mitigation efforts. Policies related to wider earthquake hazard science and awareness, emergency management, and longer term recovery programs that have local relevance are briefly mentioned, but are also beyond the scope of this report. Following this introduction, Section 2 describes and compares a range of existing local policies and programs. The information is organized by key features (for instance, the types of buildings regulated, the kinds of requirements imposed on them, and the types of incentives offered). Section 3 presents summary conclusions for Palo Alto. Figures throughout and two appendices provide further detail on a range of program elements. Formal recommendations for Palo Alto will evolve after completion of other project tasks, and through the process of Advisory Group and City staff discussions. Seismic Risk Assessment Study Final Report December 21, 2016 Page 29 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 91     2. ANALYSIS OF POLICY FEATURES AND OUTCOMES OF LOCAL SEISMIC RISK MITIGATION PROGRAMS This section analyzes the state of local earthquake policymaking in California by presenting major types, similarities, and differences in program features. The word “features” indicates here a wide array of program nuances, including but going well beyond the characteristics of the buildings being targeted and the basic policy mechanism used, namely voluntary or mandatory retrofit requirements. Woven throughout are examples of jurisdictional programs that exemplify certain of these features and distinctions, along with discussion of program outcomes and effectiveness. Analyzing programs this way highlights options and key factors that Palo Alto should consider and tradeoffs it may need to confront in developing its own seismic mitigation strategy going forward. Much innovation in local earthquake risk reduction policy is happening in California from which Palo Alto can learn. This is particularly true in the case of soft-story wood frame residential buildings,23 for which mandatory retrofit ordinances are now in place in Fremont, San Francisco, Berkeley, and Los Angeles. However, what makes one program different from or more successful than others cannot be understood simply by identifying the types of structures addressed. Also important are the specific set of requirements that owners must comply with, the timeframes in which requirements must be carried out, and the types and sizes of the incentives offered. Comprehensive, summary information to inform this review are rare. In-depth California Seismic Safety Commission URM reports cover every city and county for URM law compliance up to 2006. But beyond URM programs, data to support this assessment was limited and largely anecdotal because comprehensive research on seismic mitigation programs is rare. An 23 “Soft-story” refers to a condition where one of the stories in a multi-story building, usually a parking level that doesn’t require partitions for functionality, is weaker and/or too flexible compared to the story above it. Another acronym sometimes used is “Soft-, Weak-, or Open-Front” buildings, or SWOFs. During strong ground shaking, concentration of damage in the soft or weak story can significantly increase the chance of collapse or damage sufficient to render the building unusable after the event. Many communities are concerned with soft-story wood frame buildings. Most of this type of construction can be found in apartment buildings built in the 1960s and 1970s with first floor garage openings and some mixed-use properties with ground floor commercial space. In that era, the safety risks of soft-stories were not yet fully understood. Vast numbers of these buildings exist in California communities that grew substantially prior to the 1980s and 90s when building code changes were introduced. Findings related to evaluating and improving soft-story wood frame performance can be found in FEMA P-807, available at: https://www.fema.gov/media-library/assets/documents/32681 (Accessed February 3, 2016). Seismic Risk Assessment Study Final Report December 21, 2016 Page 30 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 92     Association of Bay Area Governments (ABAG) survey that collected program information from one third of California jurisdictions in the 1990s documented a wide variety of program implementation, effectiveness, and incentive approaches; however, its information is now significantly out of date. Policies of certain leading jurisdictions have been studied in depth at various windows in time, such as Palo Alto ) (Herman et al, 1990), Berkeley (Rabinovici, 2012; Chakos, 2002), Oakland (Olson, 1999), and Los Angeles (Comerio, 1992). These studies reveal how unique and complicated local earthquake mitigation programs can be, not just in format but also implementation. Outcomes cannot be understood without considering the local building stock and economic context, concurrent policy developments, political support, local government resources and administrative capacity, how policy features are combined, community engagement strategies used, and emphasis put on enforcement. At the outset, Palo Alto’s unique current program and historic role in the evolution of earthquake mitigation program design should be recognized. Its 1986 law was among the first to require owners of suspected hazardous properties to have a qualified engineer evaluate their buildings. In addition, Palo Alto’s Seismic Hazards Identification Program (Chapter 16.42) addressed three categories of buildings: URM buildings (Category 1), structures built before 1935 with over 100 occupants (Category 2); and structures built before August 1976 with over 300 occupants (Category 3). This demonstrates how occupancy level and year built can also be used in combination with other factors as the basis for inclusion in a program. The mandatory evaluation reports for these structures were due in 1990. The September 2014 status of affected properties is shown in Table 1. Seismic Risk Assessment Study Final Report December 21, 2016 Page 31 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 93     Table 1: Status as of September 2014 of properties included under Palo Alto’s current earthquake risk reduction ordinance. Category I –Category II –Category III – URM over 1900 Built before 1935 Built before 8/1/76 and over 300 occupants All Categoriessq.ft. and over six occupants and over 100 occupants Retrofit 22 14 13 2 5 5 40 21Demolished Demolition Proposed Exempt No Change Totals 0 0 4 4 1 10 47 0 4 19 0 9 23 1 23 89 Source: 12/9/14 City of Palo Alto Policy and Services Committee staff report. Palo Alto’s decision to focus on these three categories grew out of a broader earthquake risk assessment effort going on at that time. City leaders initiated a comprehensive search of paper records and a street walk-style inventory of a wide variety of seismically-vulnerable building types in 1984. They then engaged the community in a deliberative process to assess risk and determine priorities among building types and policy approaches (Herman, Russell, et al. 1990; CSSC 2006). The following section describes alternative ways different jurisdictions have chosen which buildings to target. Scope: Targeted Structural Systems, Year Built, and Other Characteristics The primary feature that varies among jurisdictional programs is the types and characteristics of the structures that are addressed. As discussed in the Task 2 report, California’s earthquake policy history started in the 1930s with laws that increased design requirements for buildings related to one particular use—public schools, and banned new construction of one particular structural system or type—buildings with unreinforced masonry (URM) load bearing walls. Much later in the 1970s and 80s, both state and local new laws were passed targeting URMs built before 1933, certain locations (e.g., hazard zoning with prohibitions or heightened evaluation and design scrutiny for new construction or rehabilitation in those zones), a wider Seismic Risk Assessment Study Final Report December 21, 2016 Page 32 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 94     set of uses (e.g., hospitals and essential services buildings) and additional structural types (e.g., older concrete buildings and manufactured homes). The choices jurisdictions make about which buildings to target are closely tied to the legal basis underlying earthquake mitigation policymaking. Laws that impose added burdens or responsibilities on certain properties or people must clearly specify which buildings are applicable and justify why for those particular buildings have been selected. A compelling, documentable, and actionable public purpose must exist to invoke a jurisdiction’s police powers and responsibility for public wellbeing. The central rationale for regulating seismically vulnerable structures is safety; a strong case for government intervention exists where there is an unacceptably high likelihood of collapse or damage that could lead to human entrapment, injury, or death. Technical research, evidence, and evolving standards of practice in structural engineering must exist for this to be considered reasonable. Once a new practice becomes embedded in a model building code, construction to former code standards is no longer allowed. Jurisdictions review permits and inspect construction work in progress, but lax compliance cannot entirely be ruled out. For any particular structural system, year built (or age) is the most commonly used risk indicator because it reflects the building code version that was in effect when a structure was first constructed. What was once considered an acceptable construction practice may become obsolete or even be considered negligent years later. Code updates are usually made on a three-year cycle to keep up with changes in construction practices, technologic advancements, and improved understanding how buildings perform under loads, but adoption by jurisdictions can be uneven and lag behind many years. Jurisdictions must also address which code year built they will use as inclusion criteria for their earthquake mitigation programs. Benchmarking to newer standards may be justified if it reaches more buildings that could experience significant damage in an earthquake, but a larger percent of building owners and tenants will be affected. Code changes are also proposed based on lessons learned from practical experience over time, in this case from earthquake performance outcomes in jurisdictions all around the world. Unreinforced Masonry Buildings URM buildings have been a concern for collapse and falling debris hazard ever since the 1933 Long Beach earthquake, after which new construction of URM structures in California was outlawed. The most significant contemporary law addressing a specific Seismic Risk Assessment Study Final Report December 21, 2016 Page 33 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 95     building type is the 1986 state legislation (Senate Bill 547). This state mandate, also summarized in the Task 2 report, required jurisdictions to identify and adopt programs for addressing existing URM buildings. Several jurisdictions (most prominently Long Beach, Los Angeles, Santa Cruz, Palo Alto, and San Francisco) had existing URM building ordinances and programs in place prior to the state mandate. Counties and municipalities were allowed to craft their own approach, resulting in a wide range of strategies. In general, three main types of local programs were utilized: 1) mandatory retrofit, 2) voluntary retrofit, and 3) notice to owners that the structure is a URM building. When retrofits were encouraged or required, the local government set the standards to be met. More than half (52%) of affected jurisdictions adopted a mandatory program, which has proven by far to be the most effective type. Eighty-seven percent of identified properties have been retrofitted or demolished in jurisdictions with mandatory programs, compared to thirteen to 25 percent in jurisdictions with other program types. Reviews of the URM Law by the CSSC have shown it to be a success over the long term. In 2006 (the last comprehensive state survey available), Compliance with the policy is nearly universal at 93%, and over 70% of identified URM buildings have been either retrofitted or demolished (CSSC, 2006). A comprehensive review of URM program formats throughout the Western United States is available from FEMA and the California Seismic Safety Commission (FEMA, 2009; CSSC, 2006). Older Concrete Buildings Older concrete structures (built pre-1970s and in some cases pre-1990s) exemplify the importance and difficulties of using code year as an indicator of seismic risk. Public awareness of older concrete risks may be lower than for soft-story wood frame buildings, but they are common in large numbers in the Western US and throughout California. The Concrete Coalition,24 a network of engineers, research organizations, and policymakers, estimates that there are as many as 17,000 non-ductile concrete buildings in California (Concrete Coalition, 2011). The societal importance of older concrete structures can be significant, as they often have higher occupancies and are widely used for residential tall buildings, commercial, or even critical service facilities. 24 Information about the Coalition can be found at the organization’s website: http://www.concretecoalition.org/, Accessed March 18, 2016. Seismic Risk Assessment Study Final Report December 21, 2016 Page 34 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 96     Poorly performing concrete structures can have devastating effects for occupants, owners, and communities, as numerous major quakes in California and abroad have demonstrated. The 1971 Sylmar earthquake brought down several concrete structures, killing 52, and the 1994 Northridge earthquake wrecked even more, including a Bullock's department store and Kaiser medical office. In the 2011 quake in Christchurch, New Zealand, two concrete office towers collapsed killing 133 people. Many of the 6,000 people killed in the 1995 earthquake in Kobe, Japan, were in concrete buildings. A scenario report for the San Francisco Bay Area estimates that older concrete buildings in a repeat 1906-level event would contribute a large portion of the predicted deaths and injuries (ABAG, 1999). Also at risk are investors, the survival of occupying businesses, and livelihoods. Neighborhoods can be at risk too if a district has a high concentration of older concrete buildings, as they may be blighted or loose functionality or economic viability after an event. Older concrete buildings of concern have a variety of features and are not always easy to characterize. One issue is nonductile (essentially too brittle, insufficiently reinforced) concrete, prior to enforcement of ductile concrete codes in the 1970s. Another is tilt-up structures, where a concrete is poured on the ground, cured, and then lifted (or “tilted”) up and connected to roof and floor framing where the ties between the roof and wall and floors and walls are often inadequate. Vulnerable concrete structures can be difficult to spot and often complex to retrofit (ATC, 2012). These are factors in why only a small number of California jurisdictions have adopted policies for older concrete (Table 2). The City of Los Angeles (Building Code Divisions 91 and 96) recently required evaluation and upgrade if needed for nonductile concrete structures and since Northridge has required triggered upgrading on pre-1976 tilt-ups. City of Santa Monica (Municipal Code 8.80) requires evaluation and upgrade if needed for nonductile concrete structures, along with other structural types. In 2014 Santa Monica hired the engineering firm Degenkolb to inventory buildings that might be subject to its requirements—a first step in reviving efforts that had been stalled for more than 20 years.25 Two jurisdictions, Long Beach (Chapter 18.71) and Burbank, have taken the approach of providing voluntary guidance. Burbank’s program addresses older reinforced concrete and concrete frame buildings with masonry infill. 25 http://www.latimes.com/local/lanow/la-me-ln-santa-monica-will-hire-quake-engineers-to-id-all-vulnerable- buildings-20140527-story.html (Accessed March 20, 2016). Seismic Risk Assessment Study Final Report December 21, 2016 Page 35 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 97     Table 2: Summary table of local programs for addressing older concrete building vulnerabilities. Number Targeted Building Deadline for Deadline for Deadline forof Older Concrete Buildings Program TypeJurisdiction Los Angeles Characteristics Screening Evaluation Completion Unknown Mandatory (Concrete evaluation Pre-1976 tilt- ups and 3 years 10 years 25 years Coalition inventory* mandatory leading to nonductile concrete = 1500)retrofit Santa Monica Unknown (Concrete Coalition Mandatory evaluation leading to Pre-1978 nonductile concrete. n/a 275 days Deadlines vary from 1 to 4 years afterestimate* mandatory = 173)retrofit evaluation report submission, depending on priority tiers. ** Long Beach Burbank Unknown (Concrete Coalition estimate* = 396) Voluntary guidance Nonductile concrete n/a n/aUnknown (Concrete Coalition estimate* = 132) Voluntary guidance Commercial pre-1977 reinforced concrete and concrete frame buildings with masonry infill * Source: (Concrete Coalition, 2011). ** Santa Monica’s Building Type definitions are: Type I: building that are vital in the event of an emergency; Type II: >100 occupants; Type Ill: 20 - 100 occupants; Type IV: < 20 occupants. Soft-Story Wood Frame Buildings Wood frame soft-story buildings are a good example of a vulnerable building type that gained widespread attention after performing poorly in specific earthquake events. In October 1989, the hazard and widespread presence of this building type were made Seismic Risk Assessment Study Final Report December 21, 2016 Page 36 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 98     evident by the dramatic and costly collapses and fires in the San Francisco Marina District in the Loma Prieta earthquake. Then again, in the Northridge event in 1994, widespread damage and several high profile collapses occurred. The Northridge- Meadows apartment complex collapse that led to sixteen deaths in particular captured media, public, and expert attention. Following these events, soft-story residential buildings started to be viewed as not just a threat to the owner’s pocketbook but to the surrounding community; tenant safety and local recovery could also be at stake. Given their prevalence, losing hundreds of soft- story apartment buildings could have large impacts on community. For example, soft- story buildings constituted about half (7,700) of the 16,000 housing units rendered uninhabitable in the Bay Area by the 1989 Loma Prieta Earthquake and over 34,000 of the housing units rendered uninhabitable by the Northridge Earthquake in 1994 (ABAG, 2003). Table 3 describes a wide range of local efforts to address soft-story wood frame buildings, highlighting key program features and distinctions (many of which are discussed in later sections regarding prioritization, timing, and policy mechanisms). Seismic Risk Assessment Study Final Report December 21, 2016 Page 37 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 99     Table 3: Summary of local soft-story wood frame policy efforts showing key distinguishing program features. (Sources: Rabinovici, 2012; ABAG, 2016). Number of Soft- story Deadline Deadline for for Evaluation Permit Completion Deadline forProgram Type Targeted Building CharacteristicsJurisdiction Los Angeles Year Priorities or Tiers Buildings 2015 unknown Mandatory Pre-1978 wood- Evaluation frame structures Priority I - Buildings containing 16 or more 1 year 2 years 7 years leading to with soft, weak or dwelling units. Mandatory open front first Priority II - Buildings with three stories or more, containing fewer than 16 dwelling units. Retrofit floor conditions with two or more stories and five or more units. Only enforcement is prioritized by tiers. Priority III - Buildings not falling within the definition of Priority I or II. Oakland 2015 1,380 Mandatory Pre-1985 multi-n/a Screening (passed 2009) family wood frame structures with five or more leading to units Mandatory Retrofit Seismic Risk Assessment Study Final Report December 21, 2016 Page 38 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 100     Table 3 (continued). Number of Soft- story Deadline Deadline for for Evaluation Permit Completion Deadline forProgram Type Targeted Building CharacteristicsJurisdiction Berkeley Year Priorities or Tiers Buildings 2014 310 (at Mandatory Multi-family wood time of evaluation frame structures 2005 law (2005) with five or more ordinance) leading to units mandatory n/a 2 years (under 2 years 4 years previous soft-story evaluation ordinance)retrofit (2014) San Francisco 2013 2,800 Mandatory Wood frame evaluation construction with leading to five or more mandatory residential units 1.5 years 2.5 years 4.5 years 5.5 years Tier I - Any building containing educational, assembly, or residential care facility uses (Building Code Occupancy E, A, R2.1, R3.1, or R4) retrofit and two or more stories with permit for 2.5 years 3.5 yearsTier II - Any building containing 15 or more dwelling units construction submitted prior to January 1, 1978 and five or more units 3.5 years 4.5 years 4.5 years 5.5 years 6.5 years 7.5 years Tier III - Any building not falling within another tier Tier IV - Any building containing ground floor commercial uses (Building Code Occupancy B or M), or any building in a mapped liquefaction zone Seismic Risk Assessment Study Final Report December 21, 2016 Page 39 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 101     Table 3 (continued). Number of Soft- story Deadline Deadline for for Evaluation Permit Completion Deadline forProgram Type Targeted Building CharacteristicsJurisdictionYear Priorities or Tiers Buildings Alameda Fremont 2011 2005 70 Mandatory Five or more units evaluation n/a 2 years 22 Mandatory Apartment house Group 1 - Apartment house with more than ten units or more than two stories n/a n/a 2 years 4 years 5 years retrofit with more than ten units or more than two stories Group II - Apartment house with ten or less units and fewer than three stories high 2.5 years Seismic Risk Assessment Study Final Report December 21, 2016 Page 40 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 102     Public Purpose, Occupancy, Location, and Other Considerations Another stated goal of seismic mitigation laws is to promote continuity of vital services related to the community’s social and economic viability. In addition to direct safety concerns, this further justifies targeting special uses and buildings that affect larger numbers of people such as schools, critical public buildings, and hospitals. Beyond critical community functions, however, it is less obvious where to draw the line between public and private risks and benefits. How many people need to live or work in a building before a suspected earthquake vulnerability becomes something an owner or tenant should not be allowed to make decisions about on their own? The answer involves some sense of proportionality. In other words, local governments tend to seek a reasonable balance between the number of building owners that will need to comply and the burden of compliance, with the public benefits that will be achieved (which we can assume to be protection of health and preservation of community functionality). That is a key reason why buildings with higher occupancy or higher residential unit total are sometimes targeted. Such buildings not only have more human beings that work or live in them, but the fate of the buildings also has a larger impact on local housing availability, parking, and other community impacts. For instance, most existing soft-story wood frame programs are targeted at multifamily buildings with five or more residential units (see Table 3). Larger structures are also presumably worth more, so the owner is more likely to have sufficient equity in the property or cash flow to make capital upgrades. A structure’s number of stories may also relate to the degree of risk or perceptions of public importance. Problematically, more stories may not always translate into higher risk; for example, two-story soft-story buildings may not necessarily be less dangerous compared to three story ones, depending on the materials used and the positioning of occupied units (Bonowitz and Rabinovici, 2012). A good example of a program that uses location or zoning as part of its targeting is Palo Alto’s Municipal Code Chapter 18.18.070 Floor Area Bonuses incentive. The incentive is only available for buildings in Commercial Downtown (CD) District, which has sub-zones based on CD-C Commercial, CD-S Service, and CD-N Neighborhood designations. Zoning benefits are different for each of these designations, the square footage, and also if the building in question is historic property. Seismic Risk Assessment Study Final Report December 21, 2016 Page 41 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 103     Ownership structure is another potential scoping issue, for instance, whether condominiums should be included.26 The City of Berkeley did not include condominiums in its soft-story wood frame building ordinance, but the jurisdictions of San Francisco and Fremont did. Condominiums often face additional barriers in both voluntary and mandatory retrofit policy settings, because homeowner association policies and practices can make it difficult to agree on what should be done and to obtain financing. Anecdotally, in Palo Alto and elsewhere, properties where a majority of owners want to retrofit have not been able to accomplish that work because of hold-out members that do not want to proceed or pay an additional assessment in order for the association to be able to afford it. The overall influence on retrofit behavior of either including or excluding condominiums is not known. A final point that should be noted about program scope is that some properties that would otherwise be subject to a law can be classified as exempt for certain reasons. For instance, most jurisdictional ordinances offer exemptions for buildings that have had significant recent renovations or retrofit upgrades that addressed the hazardous condition. Some jurisdictions explicitly include protocols for hardship provisions such as extended timelines that might be made available for individual or institutional owners that can demonstrate an unusual degree of difficulty raising sufficient funds to comply. Timelines, Pacing, and Prioritization For several reasons, jurisdictions find it useful to both prioritize and pace their earthquake program efforts. Time is a powerful ally and policy variable. Once a jurisdiction commits to the idea of a new program, timeframes can be used to make implementation manageable and soften the economic impacts of the program on city staff and budgets, on owners, and on the local economy. Retrofitting is also a process that cannot be sped up beyond a certain point. Design, arrangement of financing, and completion of retrofit work can be an arduous process, naturally taking from months to years. Lengthier time windows allow owners to plan for how to comply in the way that works best for them. Longer time frames can also work to the advantage of jurisdictions, which rarely have sufficient administrative capacity, political will, and community tolerance to take on multiple seismic risk issues simultaneously over a short 26 Keep in mind that condominium status can change. The City of Berkeley decided not to include condominium properties on its Suspected High Hazard Building list. However, owners in some apartment buildings in the process of being converted to condominium status when needing complying with the law experienced difficulty getting loans (Rabinovici, 2012). Seismic Risk Assessment Study Final Report December 21, 2016 Page 42 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 104     period of time. Following are several examples of how different jurisdictions have used timing as part of their program structure. Trigger-Enforced Timing Some jurisdictions have opted to require earthquake retrofit to be done only when the property is sold and/or an owner submits plans for renovation, additions, or rehabilitation that meets certain criteria, for instance 50% of the assessed value. This is similar to triggers for energy upgrading, sewer lateral replacement for single family homes, modifications for Americans with Disabilities Act compliance, or sprinkler and other fire code changes. A jurisdiction taking this approach does not need to inventory vulnerable structures in advance and may be able to do project reviews at current staffing levels. However, there are several downsides. Owners may resent encountering these potentially substantial “surprise” costs when initiating a project, and might strategically manipulate project valuation to avoid needing to comply, resulting in lower fees for the city. For those owners that are aware of the provisions, potentially important non-seismic renovation work that would have been done otherwise might be postponed as a result of increased project cost and complexity. Most importantly, critical safety and resilience retrofit work might go decades without being done. Proactively-Enforced Timing with Phasing and/or Prioritization Proactive enforcement means that a jurisdiction identifies, notifies, and actively seeks to help owners participate or comply in a program. It is common when these programs include mandates to use a variety of time frames for buildings with different characteristics. For instance, Los Angeles’s 2015 ordinance requires compliance for soft- stories within seven years and older concrete within 25 years. Another common strategy is to classify buildings of a single targeted structural type into tiers or priority levels among a particular type of building, for instance based on age, number of stories, unit totals, or occupancy. Compliance can then be mandated sooner in order from most to least serious in terms of estimated risk and social importance. Time frames for soft-story programs, for instance, commonly relax deadlines by about one year per tier (See Deadlines by programs in Table 3). Both of these phasing approaches allows jurisdictions to set a feasible administrative pace and put an early focus on buildings with vulnerabilities and characteristics that most affect the public. Seismic Risk Assessment Study Final Report December 21, 2016 Page 43 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 105     An overall pacing strategy can also be used to phase implementation of a larger set of resilience policies and programs that go beyond different building types to address other aspects of community earthquake vulnerability. For instance, San Francisco mandated soft-story wood frame building retrofitting, then mandated its 120 private schools to do seismic evaluations of their buildings regardless of structure type,27 and then embarked on efforts to assess and create programs for poorly anchored façades and unreinforced masonry chimneys. All three approaches – 1) phasing and compliance time frames that differ for structures, 2) in different priority tiers, 3) within a multifaceted comprehensive plan – were used in recommendations from San Francisco’s decade-long Community Action Plan for Seismic Safety (CAPSS) project (ATC, 2010). Figure 2 shows an earlier version of how San Francisco thought about address different building types and uses more or less quickly and with gradually increasing requirements. Later, these concepts were embedded into the jurisdiction’s policies as part of San Francisco’s 30-year Earthquake Safety Implementation Plan (SF ESIP, 2011). That plan represents a commitment by the city to phase in additional efforts over this extended period, and deliberately addressed a wide range of vulnerable structure types, uses, or occupancy combinations considered important to community resilience (e.g., private schools, façades). Additional advantages of long time frames are to allow more time for detailed studies or research if needed, for political or community consensus to develop, and give owners ample notice of bigger changes to come. 27 Ordinance text available at: http://sfgov.org/esip/sites/default/files/FileCenter/Documents/12716- Ordinance%20No%20202-14%20Private%20Schools%20EQ%20Evaluation.pdf (Accessed February 3, 2016). Seismic Risk Assessment Study Final Report December 21, 2016 Page 44 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 106     Figure 2: Excerpt of Table 5 from the summary San Francisco CAPSS Project report (ATC, 2010) showing recommended timelines for prioritizing and phasing different kinds of efforts to address a variety of building types and uses. Note: Categories represented in rows are not mutually exclusive. For instance, some private school facilities may be located in a house of worship or historic structures. Seismic Risk Assessment Study Final Report December 21, 2016 Page 45 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 107     Policy Mechanisms and Requirements In addition to creating a set of targeting and eligibility criteria, jurisdictions can use a variety of methods to motivate appropriate seismic upgrades to be done. Requiring owners to do retrofit work is only one approach. Other tools range from simple notification, disclosure measures,28 offering incentives, voluntary retrofit initiatives, and mandated screenings or evaluations, each of which is described below in more detail. Another major distinction is whether a jurisdiction implements requirements only when triggered during rehabilitation projects that meet certain criteria, or proactively, such as doing an inventory to identify affected properties and imposed deadlines. Figure 3 provides definitions of a spectrum of policy mechanisms that have been used. This view corrects the false impression that jurisdictional programs have to be either “voluntary” or “mandatory.” In reality, most jurisdictions create a policy package that combines several approaches. Furthermore, that package can evolve over time as more and more buildings are upgraded, new information or technical recommendations become available, or with changes in the political or economic climate. Inventory Identifying the number and locations of buildings of concern is an essential first step to finding out which buildings are the most vulnerable and how significant those issues may be for the community. Many jurisdictions launch their earthquake program development process with a special-purpose, one-time discovery effort meant to compile data about potentially seismic at-risk properties and to gauge the scope of the issues faced by the community. This can be difficult and time consuming, and jurisdictions often rely on outside consultants or professional organizations and academic volunteers for assistance. Existing property databases generally contain less than complete information to be able to draw conclusions, and some relevant information may only exist in paper form. Street-walks, side walk surveys, or visits to a selected sample of properties are common. It is important to distinguish early investigation and risk analysis efforts that might involve only a subset of properties from the development of an exhaustive list of properties meeting certain criteria that could be officially noticed or subjected to a 28 Disclosure policies are designed to increase the transparency and openness surrounding an issue of social importance. Examples include mandatory disclosure to tenants, freedom of information requirements, public signage, searchable online listing, or official notice placed on a title or deed. These are described in Table . Seismic Risk Assessment Study Final Report December 21, 2016 Page 46 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 108     particular ordinance. The City of Berkeley is one jurisdiction that used a list created by staff and consultants as the basis for determining which properties should be included on that city’s suspected hazardous properties list. Other cities have instead chosen to put buildings on an initial suspected hazard list based on zoning, number of units, or other generally available criteria. Palo Alto’s current investigation into updating its seismic risk management program involves review of digital records, paper records, and side walk surveys. The side walk survey portion includes approximately half of the buildings of interest. A similar detailed field effort would be needed on the remaining portion of buildings to develop a comprehensive inventory list. No inventory list will be perfect, so no matter which approach is used, some kind of appeal, confirmation, or screening processes are needed before granting any exemptions or enforcing requirements. Depending on the building type, issues of improper inclusion or exclusion from a list may be more or less likely. For example, rapid visual determination is easier for wood frame soft-story conditions, but it would be hard for even an experienced engineer to identify a steel moment frame, braced frame building, or a concrete frame building when the structural elements are hidden from view by architectural finishes. Seismic Risk Assessment Study Final Report December 21, 2016 Page 47 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 109     Figure 3: Diagram showing a spectrum of mitigation policy approaches ranging from least to most stringent. Voluntary Retrofit Disclosure Approaches Mandatory Screening Mandatory Evaluation Mandatory RetrofitInventory Only Notify Only Staff, consultants, and/or a volunteer and a policy has organization has created an inventory of one or their property is on encouraged to more suspected hazard building types, but the list is not officially released to the public or acted upon. An inventory exists Owners of properties on a been established to publically available notify owners if list are formally Properties on a publically available properties on a list are subject to one or more methods of forced submit a form within a fixed time Owners of Owners of properties on a publically available publically available publically available Owners of properties on a list are required to list are required submit within a list are required to complete a retrofit a suspected hazard retrofit, possibly by information fixed time window a by a certain date. building list.offering of technical sharing, such as window that is filled formal evaluation This step may be implemented following a assistance, financial tenant notification, out by a licensed help, or policy incentives. completed by a licensed engineer. Typically, a public signage, or recorded notice on professional. the property title. building screening or Typically, the goal is determination is to determine whether the evaluation phase.* then made about whether the property has certain property has certain characteristics that risk features.* might associate with risk.* * Note: Implementation and enforcement might be either: 1) triggered by sale or a significant work threshold or 2) via a proactive compliance timeline. Seismic Risk Assessment Study Final Report December 21, 2016 Page 48 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 110     Notification Once an inventory is created, a jurisdiction either by default or deliberately chooses whether or not to make that list public or take further actions. Some jurisdictions have created a list then not acted on it for a decade or more. For example, in the case of soft- story wood frame buildings, Santa Clara County’s list has remained dormant since 2003, and nine years passed between the creation of a list and when the City of Berkeley passed its soft-story ordinance. The most basic step is to notify owners that their property is on some kind of suspected earthquake hazard list. This is currently the URM policy of a small number of California jurisdictions, and the soft-story wood frame policy in the jurisdictions of San Leandro, Sebastapol, and Richmond. Available data about notification only programs shows them to have little impact; for instance, seven percent of URM properties in jurisdictions with this type of program are retrofit as of 2006 (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Little evidence exists about potential liability and market value impacts from becoming a “listed” earthquake vulnerable building. However, concern exists that mere creation of a list could have negative impacts if it becomes public (see more about Disclosure Approaches below). A Freedom of Information Act (FOIA) filing (for instance, by a journalist or citizen) could be used to compel a jurisdiction to reveal a list that has remained dormant. This happened in the case of Los Angeles with the Concrete Coalition’s inventory of suspected concrete structures.29 Experts in the earthquake field believe that media coverage of the list contributed to eventual passage of that city’s mandatory evaluation ordinance in 2015, which included concrete structures. In sum, notification programs may have several downsides for owners while offering little in terms of on the ground risk reduction for the community. Voluntary Retrofit Following an inventory and notification process, or even after a mandatory screening or evaluation phase (see below), jurisdictions can choose to let owners decide whether or not to retrofit their building. Simply urging building owners that own a potentially earthquake vulnerable building may be enough to lead some to voluntarily retrofit. 29 Key Los Angeles Times articles can be found at: http://graphics.latimes.com/me-earthquake-concrete/ and http://www.latimes.com/local/lanow/la-me-ln-concrete-buildings-list-20140125-story.html (Accessed April 11, 2016). Seismic Risk Assessment Study Final Report December 21, 2016 Page 49 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 111     Retrofit rates for jurisdictions with voluntary URM retrofit programs averaged 16% in 2006 (CSSC, Status of the Unreinforced Masonry Building Law, 2006), and likely much lower than that for soft-stories (though no systematic data currently exist). Jurisdictions that take a voluntary route often do so because they have a small number (presumably less socially-significant set) of vulnerable buildings. Another factor can be a sense that public support is lacking among decision makers, residents, or other stakeholders for mandatory requirements, perhaps because of local economic conditions that would make it difficult for owners to afford or get financing. The anticipated cost of the retrofit work can also come into play, as it can be more palatable to require owners to make investments that are a smaller share of the building’s overall value. Despite perceptions of politically feasibility and some measurable voluntary retrofit response, programs without mandates are almost always much less effective at actually reducing earthquake risk in the community in a significant way. Several factors appear to contribute to the handful of voluntary programs that have worked well. First and foremost, voluntary programs vary in the level of resources devoted, sustained effort, and set of complementary measures taken by the jurisdiction. The more dedicated a jurisdiction is to having a successful voluntary program, the more likely it is to have one. One tactic is to provide case by case assistance to owners in taking steps over time, a tactic sometimes used by jurisdictions with a small number of affected buildings. Another is to offer significant financial or policy incentives (examples of which are discussed below). On the public awareness front, providing educational materials that explain the risks to an owner and to the broader community and the benefits of protecting their financial investment may help. Another thing that can make voluntary programs more successful is to threaten to institute a mandatory program in the future. Historically, many jurisdictions did adopt a voluntary URM program first, and then shifted to mandates later on. In the past five years, this has also happened with soft-story wood frame policies in the case of Oakland, San Francisco, and Berkeley. An explicit multi-phased approach was particularly effective in Berkeley, where one fourth of building owners affected by a mandatory evaluation requirement invested in a voluntary retrofit within the first two years. Owner interviews showed this was partly because they wanted to get a head start on later mandates that appeared inevitable (Rabinovici, 2012). Seismic Risk Assessment Study Final Report December 21, 2016 Page 50 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 112     Disclosure Approaches Notification and many voluntary programs are based on the idea that information and communication by themselves can influence the opinions and actions of owners, renters, and buyers. Officially publicizing a city’s concerns about deficiencies of a specific building type could, for instance, change public opinion about the resale or rental value of listed properties, an owner’s eligibility for refinancing or future loan terms, or the cost of purchasing earthquake insurance. Jurisdictions have used a variety of techniques to motivate attention to seismic risk concerns. As discussed in the Task 2 report, mandatory disclosure at time of sale is a key part of state laws for pre-1960 homes in earthquake fault zones (CSSC, 2005). The most prominent policy is the state requirement for signage on all URM buildings. Similar signage has been required since 2007 on soft-story wood frame buildings in the City of Berkeley (Figure 4), and non-complying soft-story wood frame buildings in San Francisco Figure 5. In Oakland, Berkeley, and San Francisco tenants must be notified in writing, and official notices are recorded on the deed for all listed soft-story wood frame buildings. Seismic Risk Assessment Study Final Report December 21, 2016 Page 51 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 113     Figure 4: Photo of the warning sign mandated to be posted on buildings on the City of Berkeley’s Suspected Earthquake Hazard Building List (Photo: S. Rabinovici, 2011). Seismic Risk Assessment Study Final Report December 21, 2016 Page 52 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 114     Figure 5: Required placard for soft-story wood frame buildings that failed to comply on time with the mandatory screening phase of San Francisco's mandatory retrofit program. Seismic Risk Assessment Study Final Report December 21, 2016 Page 53 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 115     In the case of soft-story wood frame buildings, leading jurisdictions have also put a public, sometimes searchable list of affected properties on a jurisdiction’s website, based on the idea that renters should be entitled to easily accessible information before they sign a lease. Such lists include the street address and potentially also the compliance status of the property. Owner names or contact information are not given, although anyone could search for that information through public permit and property records. Table 4 describes each of these tools in more detail and gives examples of use as well as advantages and disadvantages. What all these measures have in common is that they make seismic risk issues more transparent and visible to affected members of the public. Disclosure is different than and goes beyond general public awareness. These measures are also meant to inform people about specific seismically vulnerable buildings, with the idea that it might change offering prices, mortgage availability and terms, rental or purchase decisions, or even whether someone wants to enter or stay very long in a building. In theory, as owners, tenants, bankers, and potential buyers become more informed, they can better incorporate seismic risk in their mitigation decisionmaking and assessment of property values. Evidence suggests that notification, notices, and public lists can and do influence beliefs and behavior. For example, some soft-story wood frame condominium owners in Berkeley reported difficulty refinancing (Rabinovici, 2012). Even perception of market awareness can change opinions, even if there is little to no documented impact. In Berkeley, some owners said the worried at first about reduced demand or market price for units in their buildings and this motivated them to retrofit; however, these same owners years later did not report experiencing any problems with tenant recruitment or lost rental income (Rabinovici, 2012). Earthquake warning signage was a prominent part of the state’s URM program requirements; however, there is little evidence to show that such warnings are effective. A study of California Proposition 61 carcinogen and reproductive health warnings suggests that signs are not very powerful and become less influential on behavior over time as people become used to them. Some building users may even be personally annoyed by warning signs, because it reminds them of a risk that they can personally do little about. Some owners of soft-story wood frame buildings in Berkeley Seismic Risk Assessment Study Final Report December 21, 2016 Page 54 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 116     reported having tenants that actively complained about or repeatedly ripped the required warning signs off the walls (Rabinovici, 2012). Seismic Risk Assessment Study Final Report December 21, 2016 Page 55 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 117     Table 4: Description of disclosure approaches used in local earthquake risk reduction programs. Name Description Examples of Use Advantages Costs, Issues or Concerns Mandatory Disclosure Sellers of property are required California Earthquake Empowers buyers to be aware of any known existing hazard issues. Anecdotally, many buyers do not pay enough attention to these disclosures, which occur during emotional, busy decisionmaking periods. They may not seek expert information to interpret the reported information. It is also possible that sellers shirk on the disclosure requirements if buyers do not know that they are supposed to receive them. Difficult to enforce. to disclose features that could relate to earthquake performance. Fault Zone disclosure; Sellers of pre-1960 homes are required to fill out to the best of their knowledge and provide buyers with Residential at Time of Sale Earthquake Hazards Report. Recorded Notice on Deed Jurisdictions can record on the property title or deed the fact that the building is subject to additional requirements related to its earthquake vulnerable status. For soft-story wood frame: Oakland, Berkeley, and San Francisco. Relatively low cost for Anecdotally, it is not clear how jurisdictions to implement. many buyers or mortgage Empowers buyers but also companies pay attention to mortgage companies to be these notices. Such notices are aware of any known existing hazard issues. primarily effective only at time of sale or refinance. Seismic Risk Assessment Study Final Report December 21, 2016 Page 56 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 118     Table 4 (continued) Name Description Examples of Use Advantages Costs, Issues or Concerns Public Listing of Affected Properties Jurisdictions that operate web sites to describe their programs can feature a full list of property addresses, potentially also including also the compliance status of the property. In general, owner names are not listed, though that information is available if a member of the public For soft-story wood frame: Oakland, Berkeley, and San Francisco. Relatively low cost for jurisdictions to implement. be updated on a regular basis Could be used by tenants and buyers when searching for properties, thus empowering well- informed market Website information needs to in order to be perceived as fair and useful. Public lists work better if the property addresses are searchable, rather than static (e.g., on a pdf).negotiations over pricing. searched for it separately. External Signage Jurisdictions that operate web sites to describe their California state requires a sign on all URM buildings. Similar public's right to know. The property value or business signage has been required since 2007 on soft-story wood frame buildings in the issue more salient for City of Berkeley. Advocates argue that signs Owners may view the signs as are justified based on the stigmatizing or threatening to programs can feature a full list of property addresses, potentially also including the compliance status of the property. Some lists are searchable, while others are static. physical presence and repeated viewing of signage may make the revenues, but anecdotally, it is not clear how much visitors, employees, residents, and other users of a building pay attention to signage when entering or leaving a property. visitors, employees, lease holders, and owners alike. Seismic Risk Assessment Study Final Report December 21, 2016 Page 57 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 119     Table 4 (continued) Name Description Examples of Use Advantages Costs, Issues or Concerns Tenant Notification Owners are required to present For soft-story wood Tenant notification may be To be effective, tenant straightforward, standardized information about the listed status of the property. Some jurisdictions require proof of notification (e.g., tenant frame: Oakland, Berkeley, and San Francisco. more influential than signage because it is personalized and the notification should be required to occur well before the potential tenant is ready to information is delivered at sign the lease. a useful time in that signature) to be returned and kept on file with the city. person's decision process. Advocates claim that tenant notification is justified based on the public's right to know. Earthquake Performance Rating Systems Owners can be either The City of Los Angeles in 2015 Rating system use is common for institutions like universities and hospitals. Mechanisms for implementing performance ratings for commercial use have recently matured and are Obtaining a rating potentially encouraged or required to have their building rated on a standardized scale that classifies expected building performance in an earthquake in an easier to understand format, for instance from one to five stars. Viable rating adds cost to a design project. Ratings systems such as USRC’s are relatively new and not yet widely implemented. officially launched a voluntary effort to encourage owners to rate their properties using the US Resiliency Council system and pledged to now viable. Ratings have systems exist for many building rate its own public types. buildings as well. the potential to inform owner, renter and buyer decisions, creating a market effect. Seismic Risk Assessment Study Final Report December 21, 2016 Page 58 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 120     An advantage of disclosure measures is they tend to be relatively inexpensive for jurisdictions to administer. Up to date website posting of the list of affected properties and their compliance status encourages people to visit the site as needed over time, people see signs every time they enter or exit, and properties may exchange hands many times. Eventually, a tipping point in community awareness and opinion about a class of properties can occur, as it did in the case of Berkeley for soft-story wood frame buildings. The use of positive disclosure remains an untapped potential influence on market value of retrofitted properties as well as owners’ retrofit decisions. This review did not identify any city programs that have taken the positive approach of recognizing or rewarding owners or announcing buildings that have been retrofit. One recent development is the existence of viable earthquake rating systems. In November 2015, the non-profit US Resiliency Council30 launched a non-profit credentialing and verification service through which owners can obtain externally checked, state-of-the-art assessment of the expected safety levels, repair costs, and time to regain function for their property. USRC ratings have the potential to play the same kind of role that the US Green Building Council did in promoting sustainable design, both for new construction and for retrofits. USRC’s system has already been adopted one California jurisdiction’s policy. Los Angeles Mayor Eric Garcetti cited USRC ratings in that city’s Resilience by Design report (City of Los Angeles, 2015), asking building owners to voluntarily use it, pledging to educate the public about seismic performance rating systems and how the information can be used, and announcing the intention to use it or some similar system to rate all city-owned buildings. Mandatory Screening Screening programs help jurisdictions collect more information about targeted potentially vulnerable buildings in a community, usually as a first step to later more stringent requirements for the subset that are found to have features indicating significant deficiencies. With relatively low cost and difficulty for owners, the jurisdiction can both make the issue visible and filter out properties that do not meet the eligibility or targeting criteria, thereby reducing the burdensome handling of errors and omission at a later stage. They also help jurisdictions determine the overall scope of the problem—how many buildings exist that have certain risk characteristics and how significant of a threat they pose in aggregate. This can help build the case for further legislation. 30 The organization’s website is: www.usrc.org (Accessed April 13, 2016). Seismic Risk Assessment Study Final Report December 21, 2016 Page 59 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 121     For soft-story wood frame buildings, Oakland was a pioneer of the mandatory screening approach. An inventory of multifamily apartment buildings was created in 2008 with the help of volunteers and non-engineers under a contract with ABAG. This survey identified 24,273 residential units in 1,479 buildings with five or more units, between two and seven stories, built prior to 1991, that had wide open spaces for parking or commercial uses on the ground floor (ABAG, 2014). Spot testing suggested the list might have error rates that could potentially undermine future program effectiveness, and might be politically unacceptable (personal communication, Jeannie Perkins, 2008). Therefore, in 2009 the City passed ordinance Number 12966 which declared these buildings “potential soft-story buildings” and mandated submittal of a Level 1 Screening–Non-Engineered Analysis. The screening had to be performed by a registered design professional, licensed contractor or certified inspector, to provide some assurance of accuracy regarding features that might related to risk. Anecdotally, the cost to owners for this was generally around $200 to $500. This can be summarized as a rule-in screening approach. Persons involved with analyzing Oakland’s program (personal communication, Danielle Hutchings-Mieler, 2011) concluded that many owners were confused, compliance was lower than hoped, and exemptions may have been given without adequate quality control of the reported data. This later contributed to the decision to incorporate mandatory evaluation phase when the city of Oakland was ready to move towards a mandatory retrofit program. In other words, a less than satisfactory implementation of a screening phase can slow down progress towards and increase the effort required in future retrofit programming. In its approach to soft-story wood frame buildings, San Francisco opted for a screening phase to weed out obviously non-affected properties, for instance those misidentified as having the correct number of units, stories, or first floor uses (primarily focusing on ruling out inappropriately included properties). Similar to Oakland, the screening had to be performed by a registered design professional, such as a licensed contractor, engineer, or architect. Compliance in filing screening forms by the initial deadline was 98%, a success which was helped by a suite of outreach activities including four waves of post card reminders, a retrofit fair, a weekly updated website, an advisory group process, and multiple public meetings. The compliance postcards used took advantage of real-time information sharing to “nudge” owners to respond, such as mentioning how many other owners had already taken action by that point (see Figure 6). Seismic Risk Assessment Study Final Report December 21, 2016 Page 60 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 122     Seismic Risk Assessment Study Final Report December 21, 2016 Page 61 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 123     Figure 6: Front and back of a compliance reminder postcard sent to affected owners in the City of San Francisco’s soft-story wood frame program. Mandatory Evaluation In the 1980s, Palo Alto was an early innovator with the technique of requiring owners of certain buildings in a community to file a formal engineering evaluation (Herman et. al., 1990). Because a licensed engineer (or structural engineer) must perform this work, such evaluations are approximately an order of magnitude more expensive than screenings. Evaluation costs for soft-story wood frame buildings in Berkeley, for example, were approximately $2,000 to $5,000 (Rabinovici, 2012). However, evaluation costs may vary substantially for other building types that are more difficult to assess, in other jurisdictions, and/or where evaluation requirements are more extensive or complex. Evaluation programs are costlier for jurisdictions to administrate than screening programs for a variety of reasons, but provide several advantages. Jurisdictions typically give owners more time to comply longer, owners need more guidance on how to comply, and there is increased need for processing time and more qualified reviewer labor. In Berkeley, report review was contracted out to plan checkers for a flat fee of $583 per evaluation report, and this did not cover jurisdiction staff time. On the benefits side, evaluations offer greater hope of achieving tangible risk reduction. As noted, a remarkable one in four soft-story wood frame building owners voluntarily retrofit in the wake of mandatory evaluation policy implementation in Berkeley, which meant over 2,000 of its residents now live in buildings that likely would not have been retrofitted otherwise. Interviews with soft-story wood frame owners in Berkeley also showed that many considered mandatory evaluation more fair than a voluntary retrofit program because it “leveled the playing field” (Rabinovici, 2012). Rather than having retrofit practices in their community determined ad hoc, all owners of similar properties were now being treated alike. However, the benefits of mandatory evaluation are undeniably uncertain and dependent on whether community circumstances are conducive to create a significant voluntary retrofit effect (Figure 7). Seismic Risk Assessment Study Final Report December 21, 2016 Page 62 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 124     Figure 7: Graph showing a seven-fold increase in permit applications in the four years immediately following passage of Berkeley’s 2005 mandatory evaluation law for soft-story wood frame buildings. Mandatory Retrofit Through California’s URM law, hospital, and school programs as well as soft-story wood frame buildings at the local scale, there is clear precedent for imposing earthquake retrofit work to be done for certain buildings. This is the most effective type of program for ensuring that on the ground risk reduction will be done. As discussed in the Task 2 report, on average over four times as many URM building cases have been retrofit in California in mandatory programs (70%) compared to voluntary ones (16%). However, because mandatory programs require all buildings to be addressed, owners with the most marginal properties cannot avoid taking action, in some cases leading to higher demolition rates (Comerio, 1992). In the case of URM buildings, mandatory retrofit programs did have higher demolition rates than voluntary programs, 17% compared to 8% respectively (CSSC, Status of the Unreinforced Masonry Building Law, 2006). Depending on the program timeline, it may take years to decades for tangible risk reduction to be realized. Retrofit projects naturally occur in steps, and can only be carried out as quickly as Seismic Risk Assessment Study Final Report December 21, 2016 Page 63 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 125     financing, contracting, any tenant relocation, or construction logistics allow. Thus, compliance periods for mandatory retrofit programs need to be longer than for mandatory screening or evaluation programs. For URM buildings, many jurisdictions tended to set deadlines of ten years or more, followed by generous extensions. For soft-story wood frame programs, jurisdictions have given owners one to three years for first steps such as appeals, hiring an engineer, complete an acceptable engineering report, or submit a permit application and retrofit plan. Following that, owners are typically given another one to three years to complete construction (see Table 3), in part to secure financing, time to work around planned vacancies, and for adequate design. Longer timelines or exemptions can be offered for complex buildings that may require costlier or innovative engineering solutions (for instance, historic properties). Again, this is where phasing or tiers can be helpful. Another difficult aspect of retrofit programs (even voluntary ones) is that jurisdictions need to set specific expectations for what constitutes an acceptable retrofit. Jurisdictions have handled this in a variety of ways. Retrofit ordinances typically directly reference one or more particular standards (or equivalent criteria). The table of soft-story wood frame programs (Table 3) shows that five or more standards have been referenced recently and several jurisdictions reference more than one, which can increase compliance ambiguity and the level of reviewer skill required but also an engineer’s discretion to use the one most appropriate for their client’s situation. Also at issue is how much and how far a building’s vulnerabilities should be retrofit. For instance, in the case of soft-story wood frame buildings, a retrofit can be designed to address only the first story weaknesses, rather than all seismic vulnerabilities that are identified. Jurisdictions such as San Francisco and Berkeley have chosen this route, in part because it lessened political resistance to creating a mandate and addressed the most severe deficiencies. Other deficiencies above the first story may remain and may lead to damage in an earthquake. In the case of mandatory evaluation or retrofit programs, owners and their engineers will also need guidance about how to prepare an acceptable evaluation, and how to submit a concurrent retrofit permit application. Owners in Berkeley realized a major financial advantage to paying their engineer to do both an evaluation for the jurisdiction and a full set of retrofit plans at the same time (Rabinovici, 2012), so having clear retrofit standards in place already was a major boon to those owners. Seismic Risk Assessment Study Final Report December 21, 2016 Page 64 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 126     The potentially negative effects on public safety and on owners of choosing a longer compliance timeline should be noted. Earthquakes can occur at any time, so a program that offers longer compliance windows in effect allows people in the community to spend more time using and owning buildings that the jurisdiction has deemed unacceptable in the long run. Also, real liability consequences may exist for owners that delay in doing mandated retrofit work, even before an accepted compliance window has elapsed. A California Appellate court awarded $2 million to family members of two women who died in a URM collapse in the 2003 San Simeon earthquake.31 In doing so, the court rejected the defendant’s claim that they had no duty to retrofit the building until 2018, the deadline established by the San Louis Obispo mandatory retrofit ordinance. Incentives To complement any of the above program formats, jurisdictions can offer either financing- or policy- oriented incentives. Many ways exist to encourage and ease the path for owners to complete either voluntary or required retrofit work, or even to help them submit timely screening forms or engineering reports. Financial incentives and tools provide monetary assistance, either directly to an owner or via the jurisdiction. Financial incentives include measures such as tax credits, tax rebates, grants, or fee waivers that make a retrofit less expensive to complete. Financial tools (e.g., special low-interest financing programs) provide a mechanism for an owner to obtain the necessary funding, potentially at lower cost or paid back in ways other than for a traditional loan. Policy incentives are meant to encourage private funding of mitigation, and include for example expedited review, exemptions, development bonuses, or technical assistance. These measures offer owners indirect but potentially valuable benefits as they take each mitigation steps. Figure 8 provides a summary list of potential incentive types, while Appendix C gives details about example uses, advantages, and disadvantages of each. A group of agencies completed an inventory of jurisdiction incentive strategies using a survey of California local governments in the mid-90s (ABAG, Seismic Retrofit Incentive Programs: A Handbook for Local Governments, 1996). Though outdated and only 35% of contacted jurisdictions participated, the report summarizes the types of URM and other earthquake programs that different jurisdictions adopted and the kinds of assistance that owners could receive. The researchers also did interviews to collect detailed information about fifteen illustrative cases at the time, including Palo Alto. 31See press coverage: http://calcoastnews.com/2010/06/court-finds-paso-robles-business-owners-liable-for-earthquake- deaths/ Accessed April 13, 2016. Seismic Risk Assessment Study Final Report December 21, 2016 Page 65 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 127     FINANCIAL TOOLS AND INCENTIVES POLICY INCENTIVES (mechanisms that make financing more accessible or directly reduce project costs) (mechanisms that deliver indirect benefits to owners) Waivers or Reductions of Building Department Fees Exemption from Future Retrofit Requirements Pass Through of Retrofit Costs to Tenants (for jurisdictions with rent control) Expedited Permits, Inspections, and Reviews Property-Assessed Financing Loans (PACE) Exemptions or Relief from Standards or Non-Conforming Conditions Subsidized or Special Term Loans Real Estate Transfer Tax Rebates Condominium Conversion Assistance Technical Assistance for Retrofit Projects Special District or Historic Designation Tax Reductions Zoning Incentives (e.g., relief from use restrictions) Tax Credits Grants Transfer of Development Rights (TDR) Density or Intensity Bonuses (e.g., Floor Area Bonus) General Obligation or Special Purpose Bonds Figure 8: Types of financial incentives and tools as well as policy incentives that have been used in local earthquake risk reduction programs in California, in approximate order top to bottom from lowest to highest cost and difficulty of implementation. Several points stand out in the ABAG report regarding incentive use and effectiveness. First, most jurisdictions offer a number of different incentives, rather than just one approach. This makes sense Seismic Risk Assessment Study Final Report December 21, 2016 Page 66 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 128     because building and owner circumstances vary widely; what may help one owner might be irrelevant or inappropriate for another and vice versa. Second, jurisdictions have taken widely different approaches with incentives, from offering almost nothing to offering substantial loans and grants. Jurisdictions tend to come up with incentive offerings closely tailored to their own goals and circumstances, based on economic conditions, building stock vulnerabilities, political will, and other factors. As a result, there is no single best incentive package to offer. Another key point is that creation and operation of incentive programs is intense and must be locally customized. Extensive community education and involvement are required to assess needs, design and advertise the incentive offerings, and to help owners take advantage of them. Guiding community members through the mitigation process is time consuming and difficult, usually requiring at least one full time staff member who also has to coordinate with staff across several departments. That means the personalities, technical skills, and political savvy of the internal team will be critical, and likely variable over time, due to natural staff and political turnover issues. The effectiveness of different incentive approaches, individually or in packages, has not been systematically studied. Both ABAG and the San Francisco CAPSS project have produced high level lists of potential incentive tools (ABAG, 2014; Samant & Tobin, 2008) but do not specify which tools are being used where and to what effect. Many listed approaches are rarely or no longer being used. All the variety makes it difficult to draw overall conclusions as to which incentives have worked “best” where and why. 3. IMPLICATIONS AND POTENTIAL POLICY DIRECTIONS FOR PALO ALTO Palo Alto is a medium sized, compact city with a diverse population and vibrant local economy. Nested in the heart of Silicon Valley, the cost of living and development pressures are high, and space for growth is limited. A high degree of interconnectedness with surrounding communities and a dynamic natural environment is also evident. As a community, Palo Alto cannot ignore its proximity to several major faults and the fact that it has many different vulnerable building types. The estimated losses in a major event are significant. Fortunately, Palo Alto has a legacy of proactive policy leadership in addressing earthquake risks, and a relatively high degree of citizen and local government capacity. The potential benefits from retrofitting are large. City leaders, by investing this year in risk assessment and a policy development dialog, have demonstrated their capability and will to act. Seismic Risk Assessment Study Final Report December 21, 2016 Page 67 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 129     This review found no simple best local earthquake mitigation policy model for Palo Alto to follow. Each of the jurisdictions mentioned in this report has crafted, often over a decade or more, a unique package of measures suited to their own local economic, social, political, and risk realities. Palo Alto must do the same. In developing its own strategy, Palo Alto can learn from this variety among local mitigation programs. It can build on the successful framework of its own existing program while also combining and tailoring new elements that are working for other jurisdictions. Choosing Goals and Desired Outcomes One way to measure success is in relation to program goals and resource realities. From that standpoint, each of the programs mentioned in this report is successful to some degree. Some jurisdictions set out to do what they could with limited resources, progressing only the first steps of developing an earthquake mitigation program. The City of Richmond, for example, developed an inventory, hosted a community meeting, and notified owners as part of creating a very low cost voluntary approach to soft-story wood frame buildings. The good news is that by doing so, it achieved meaningful progress relative to jurisdictions that have done nothing. Public leaders and the broader community are more aware, city reputation and visibility have been enhanced, and city staff are now better connected to a network of local earthquake professionals that can help facilitate future action if and when that becomes possible. The bad news is that Richmond has been stymied so far by the departure of key staff, limited jurisdictional resources, and the limited resources of its soft-story wood frame building owners and tenants; a more aggressive retrofit program is not realistic until an outside source of funding is found. At the other extreme, a few leading jurisdictions set out to comprehensively assess earthquake vulnerabilities and risk reduction opportunities community-wide through a lengthy, relatively expensive, and collaboratively-informed processes. San Francisco and more recently Los Angeles are the most prominent users of this approach, producing in-depth reports and resilience plans intended to guide city efforts for decades. Importantly, these plans encompass many city activities and roles, types of buildings and building uses, different phases of the disaster cycle, and explicitly seek to connect earthquake mitigation efforts to a host of other community resilience concerns, from sea level rise to water supply reliability to telecommunications operations (Several leading local program models and planning resources for these types of efforts are introduced in Appendix D). In between are jurisdictions where program goals are either narrower in scope with more vigorous requirements (such as the City of Fremont’s mandatory retrofit program for soft-stories) or wider Seismic Risk Assessment Study Final Report December 21, 2016 Page 68 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 130     scope with less vigorous requirements (such as the City of Santa Monica, which mandates retrofits for soft-story wood frame buildings and nonductile older concrete structures but only when triggered by a substantial renovation). The City of Berkeley took a phased, relatively aggressive approach to soft-stories, but has yet to put in place a program to address the 50 or so tilt-up concrete structures it has identified. Oakland is also somewhat unique in being a larger city that has mandated soft-story retrofits without initially taking a comprehensive approach. However, both Berkeley and Oakland benefited first from substantial volunteer professional involvement and later from sizeable, multi-year Rockefeller Foundation 100 Resilient Cities grants. Through the early help of both volunteers and consultants, Berkeley and Oakland laid the groundwork for mandatory programs that likely helped to attract the additional philanthropic attention and assistance. Berkeley has now produced, and Oakland is on its way to producing, a comprehensive resilience assessment and plan similar to what was done by San Francisco and Los Angeles. In this light, Palo Alto is currently in the “middle” group in terms of its scope and requirements for seismic safety compared to other leading jurisdictions. Palo Alto set new policy precedents in the 1980s with its community engagement, mandatory evaluation, and voluntary retrofit programs for three different categories of structures. However, this only addressed a small subset of its overall vulnerable building stock. By investing in data collection and community discussions this year, Palo Alto is now poised to move forward into a new position of seismic policy leadership. It is critical to first clarify community values and goals before designing a program to try to achieve them. All stakeholders should be invited to participate in discussions of what matters most to the City and the people who live, work, and invest in it. Common broad goals include increased public safety, reduced private property damage, and reduced downtime and displacement of businesses, consumers, and residents. However, addressing of different building types may advance these goals to different degrees and with different levels of certainty and speed. For instance, addressing soft-story wood frame housing may have little direct benefit for local businesses but would reduce renter displacement. Retrofit of older concrete structures might address concerns about provision of basic services after an event, but would have little or no benefit for housing. If the goal is to achieve the greatest reduction in losses, Palo Alto should address building types known to be potentially hazardous that occur in large numbers. Once community discussions lead to a sense of priorities and preferences, trade-offs and alternatives for pursuing each goal can be understood and considered. Seismic Risk Assessment Study Final Report December 21, 2016 Page 69 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 131     Wherever Palo Alto chooses to focus, it should strategically combine policy features to promote risk reduction. As this report revealed, regardless of scope, the most effective programs use a package of measures to tip the balance away from the status quo by publicizing and increasing the consequences of not retrofitting while also publicizing, easing the costs, and increasing the benefits of retrofitting. Potential Policy Directions Coming out of this local program review is a list of alternative approaches for Palo Alto to consider: Option 1: Status Quo In this option, the existing ordinance with its mandatory evaluation, voluntary retrofit approach remains in place without changes. This covers 89 buildings and has three categories: Category I— unreinforced masonry (except for under 1,900 sf with 6 residents), Category II—built before 1/1/1935 with 100 or more occupants, and Category III—built before 8/1/1976 with 300 or more occupants. As of 12/9/14, City records indicated that sixty-six of the buildings had been either retrofit, demolished, planned to be demolished, or found exempt, while 23 remained unaddressed. Evaluation was mandatory, and owner funded but retrofit is voluntary. The list is publically available by request, but not advertised. Floor area ratio bonuses are (were) available. Option 2: Increase Scope, but Retrofit Remains Voluntary Additional categories of structures would be added to the mandatory evaluation requirements. Palo Alto can consider programs for soft-story wood frame buildings, older concrete buildings, older tilt-up buildings, and older steel moment frame buildings. Precedents exist for programs addressing each of these structural types that pose well-identified, publicly important risks. Completion of an evaluation report could be separated into different timelines, for instance three to ten years, depending on degree of hazard. Palo Alto could also use location, occupancy type, and/or number of occupants as criteria in defining the scope or compliance timelines. Option 3: Similar to Option 2, but Additional Disclosure Measures are Incorporated This option would be similar to Option 2, but the list of buildings and status could be prominently posted on City website, tenants could be notified, signage could be required, and/or a recorded notice could be added to the property title. These options enhance transparency with the public and reward owners that retrofit by increasing the perceived benefits of retrofitting among potential tenants and buyers. Relatively inexpensive measures like these have been shown to be effective in increasing public awareness and motivating greater consideration of earthquake risk in private decisionmaking, including voluntary retrofits. Seismic Risk Assessment Study Final Report December 21, 2016 Page 70 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 132     Option 4: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by Trigger Threshold This option builds on Option 3, but retrofitting would be required for some building types at whenever future time a building is sold or undergoes substantial renovation above a set threshold. Option 5: Increase Scope, Some Categories are Voluntary and a Few Categories are Mandatory, with Enforcement by a Fixed Timeline This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Timelines and enforcement emphasis could vary depending on tiers or priority groupings to motivate prompt action for the most vulnerable or socially important structures. In some cases, longer time frames are adopted for some building types such as older concrete, to ease the burden on owners and allow for technical advancement in retrofit techniques. Option 6: Similar to Option 5, but More Categories are Mandatory This alternative is similar to Option 5, but retrofitting would be required for additional categories. Palo Alto can also make its programs more stringent over time. Explicit phasing has been successful in jurisdictions like Berkeley and San Francisco for generating political consensus and enhancing administrative feasibility. This array of options can be also be shown in diagram format (Figure 9), which shows how a number of jurisdictions in this report have positioned themselves in terms of the relative strength of their requirements and the number and scope of the building types addressed. Seismic Risk Assessment Study Final Report December 21, 2016 Page 71 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 133     Figure 9: Diagram showing alternative policy directions for Palo Alto in the context of other jurisdictional earthquake mitigation programs. When considering options, Palo Also leaders and community members should keep in mind the following additional findings from this review:   Mandating retrofit is the surest way to achieve risk reduction. Jurisdictions are increasingly using disclosure measures to motivate retrofits in both voluntary and mandatory programs, and such approaches have been shown to be powerful and relatively low cost to implement.   Many mandatory programs use intermediate mandatory screening and/or evaluation phases to better gauge the risk and filter out properties that need not comply before implementing retrofit requirements. Fixed timelines allow a jurisdiction to prioritize and control the pace of risk reduction, provide a predictable planning horizon for owners. Seismic Risk Assessment Study Final Report December 21, 2016 Page 72 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 134     Incentive Options and Considerations By offering a strategic set of incentives and devoting a steady, adequate program budget, Palo Alto can create a program that eases the financial and logistical burdens on owners and provides adequate technical assistance to support retrofit project completion. Small incentives are meaningful and helpful to owners, while larger incentives may be critical for a subset of owners that face particularly complex or costly projects. Palo Alto has several traits that could make policy incentives (non-monetary assistance) particularly effective. One is a relatively manageable number of affected buildings for some building types. This means city staff might be able to provide high quality assistance to owners in complying and taking advantage of any special programs. Palo Alto is a highly desirable locale with a highly educated, real estate savvy population, and robust real estate market. Palo Alto has experience using policy incentives in the past, so staff and many owners are familiar with them. Despite limited data on their use or effectiveness, incentives can be politically important and provide a variety of benefits. Below are some specific ways incentives could play a role in Palo Alto’s future program and some steps that Palo Alto can take to create a package of incentives effectively tailored to its own goals and circumstances. It is good to offer small incentives to all owners because it fosters positive interest in the program and builds community good will. Modest incentives, on the order of a few hundred dollars, help acknowledge the public value that is being created by the efforts undertaken by owners. For example, offering fee waivers is a gesture that owners will appreciate, if not expect. Expedited permitting is likely to be viewed similarly, because time equates with money. Policy incentives tend to be in the direct control of the City to implement, and are often cost-effective and very helpful for owners in smoothing the path and easing the hassle of doing retrofit work. Incentives are especially important to the outcomes of voluntary programs. Incentives play slightly different roles in mandatory compared to voluntary programs. In the case of mandated upgrades, incentives essentially ease the burden of doing what has to be done or to make it happen more quickly. In the case of, voluntary programs, the goal of incentives is to motivate retrofit work to occur that might not have otherwise. In this way, incentive offerings are more critical to the degree of risk reduction achieved in the case of voluntary programs, and to political viability, perceptions of program fairness, and speed of risk reduction achieved in the case of mandatory programs. Bottom line, in the case of URMs, a small number of voluntary programs with substantial incentives have achieved similar Seismic Risk Assessment Study Final Report December 21, 2016 Page 73 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 135     success compared to mandatory programs. With soft-story wood frame buildings, voluntary programs in the absence of incentives alone have not been enough to motivate retrofit work to be done. An exception is for owners in financial hardship, where incentives are most meaningful in mandatory programs.   Design the incentive strategy to match the circumstances of the locally targeted building stock. FAR bonuses are likely irrelevant for soft-story wood frame buildings which are seldom renovated to include more units or changes of use, but relaxing of parking requirements or special provisions for condominiums may help. Mixed-used and historic buildings may require deeper financial assistance when they face high costs associated with retrofitting due to complex design issues, ADA compliance, and imposed restrictions on changes in use. Take time to assess actual need for incentives and the types that will make the most difference to affected Palo Alto owners. Larger policy incentives like FAR bonuses can be very effective, especially in higher income, higher growth communities like Palo Alto. In contrast, larger financial incentives can be difficult to orchestrate and have not always been as necessary or useful as hoped. Surprisingly, jurisdictions have sometimes found they have to “sell” incentives programs to owners. Certain strategies tend to be very challenging and costly to get the incentive to work compared to the amount of good they seem to do. Such may be the case with PACE financing,32 as seen through the experiences of San Francisco and Berkeley for soft-story wood frame buildings. When private market capital is affordable, loan programs may not be needed or utilized. Use of larger, more complex incentive instruments in general increases the amount of hand holding that is needed and the amount of time until retrofits are completed. Consider offering larger incentives to only those owners or properties that qualify or meet certain social importance or hardship criteria. Interviews in Berkeley (Rabinovici 2012) showed that soft-story wood frame building owners were open to the possibility of need- based financial help. They did not want financing programs to reward ignorance or risky business practices, but as long as the criteria are clear and the process is fair and transparent, many expressed support for programs that would help fellow owners that are truly burdened or in need. There was also support for using social or resilience importance as part of the criteria for special financing eligibility. 32 Information about San Francisco’s PACE program can be found at: http://www.sfgov.org/esip/seismic-retrofit-financing Accessed April 11, 2016. Information about Berkeley’s PACE programs can be found at: http://www.ci.berkeley.ca.us/PACE/ (Accessed May 2, 2016.) Seismic Risk Assessment Study Final Report December 21, 2016 Page 74 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 136     Integrate incentives as seamlessly as possible into the overall compliance process. Incentives work best when they are delivered in a timely way, right when people are already making important property or financial decisions. One notable example is the City of Berkeley’s transfer tax rebate for single family home seismic improvements, which is available retroactively two years before through two years after time of sale. Another is Palo Alto’s floor area ratio (FAR) bonus for retrofit of designated vulnerable structures, which allowed owners the chance to plan in additional space at the same time a retrofit is being designed.   Beyond money, it will be important to offer technical assistance, and this can be very helpful and even critical for some owners and engineers. Retrofitting is not a simple process, and ironically it can become even harder for an owner if it happens as part of a jurisdictional program that requires or is intended to encourage it. Obtaining financing, especially through special programs, may also require intense staff effort. Beware of the timing and costs of seeking public support for new bond financing. In Berkeley, attempts were made to make a pool of funds available to owners through a transfer tax increase measure on the November 2002 ballot, but it failed to get the required two thirds vote. Participants in retrospect considered the campaign poorly run, but the state of the local economy probably played more of a role than any decrease in support for mandatory retrofit in concept. Consider creation of formal cost-sharing arrangements between tenants and owners. Part of the financial equation surrounding any upgrade work is the owner’s ability to capitalize on the value added to the structure. In the case of rent control, the rate for pass through of capital improvements is a matter of law. Jurisdictions like Oakland, Berkeley, and San Francisco have negotiated cost-sharing arrangements ranging from 50 to 100% that allow owners to increase rents up to a certain percent of the retrofit cost, over a specified time period (usually 10 years). Even though Palo Alto does not have a rent control ordinance, it could establish a permitted amortization schedule into any new retrofit law, which could lessen the impact for tenants of any resulting rent increases. Disclosure Measure Options With relatively modest expense for a jurisdiction, disclosure measures can inform the populace and leverage social and market awareness to amplify program effectiveness. In effect, signage, tenant notification, internet lists, and other disclosure tactics make more transparent both useful risk information and the policies a city is using to address risk. Seismic Risk Assessment Study Final Report December 21, 2016 Page 75 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 137     Public perception of disclosure policies has been on balance positive but not without critique. On the one hand, revealing property addresses that are subject to an ordinance can be thought of as making more accessible information that is already public. It spares all parties of going through the time and hassle of formal information requests. It is also consistent with a philosophy of the public’s right to know, and may be legally protective for both owners and jurisdictions against accusations that important risk information is being held back. On the other hand, the media has at times portrayed signage as a shaming device, though this may depend on a sign or placard’s particular graphic design and wording. Soft-story wood frame owners in Berkeley described the overall suite of disclosure measures imposed there as a “scarlet letter.” San Francisco included disclosure practices as part of its first “nudging” phase in their program plan. In essence, before and in complement to implementing mandates, San Francisco’s plan called for trying to increase understanding in the real estate market empower tenants, buyers, and even owners (who could now more credibly and prominently claim credit for early compliance, retrofitting ahead of schedule, or voluntarily taking extra steps). Evidence about the effectiveness of disclosure, either together with other policy requirements or separately, is quite limited. In at least one case, voluntary retrofit programs combined with disclosure measures have achieved significant risk reduction. Berkeley’s mandatory soft-story evaluation program had several prominent disclosure features and resulted in a 25% voluntary retrofit rate in the first four years (Rabinovici, 2012). Seismic Risk Assessment Study Final Report December 21, 2016 Page 76 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 138     4. REFERENCES AND RESOURCES ABAG. (1996). Seismic Retrofit Incentive Programs: A Handbook for Local Governments. ABAG. (1999). Preventing the Nightmare. Oakland, CA. ABAG. (2014). Soft-Story Housing Improvement Plan for the Cit of Oakland. Oakland. Retrieved from http://resilience.abag.ca.gov/wp-content/documents/OaklandSoftStoryReport_102914.pdf ATC. (2010). Here Today—Here Tomorrow: The Road to Earthquake Resilience in San Francisco. Community Action Plan for Seismic Safety, Redwood City. Retrieved from http://sfgov.org/esip/sites/default/files/FileCenter/Documents/9757-atc522.pdf ATC. (2012). ATC 78-1: Evaluation of the Methodology to Select and Prioritize Collapse Indicators in Older Concrete Buildings. Redwood City, CA. Bonowitz, D. (2012). Soft-Story Risk Reduction: Lessons from the Berkeley Data. EERI, Oakland, CA. Bonowitz, D., & Rabinovici, S. (2012). Soft-Story Risk Reduction: Lessons from the Berkeley Data. EERI, Oakland, CA. Chakos, A. P. (2002). Making It Work in Berkeley: Investing in Community Sustainability. Natural Hazards Review, 3(2), 55-67. City of Los Angeles. (2015). Resilience by Design. Los Angeles. Comerio, M. (1992). Impacts of the Los Angeles Retrofit Ordinance on Residential Buildings. Earthquake Spectra, 8(1), 9-94. Concrete Coalition. (2011). The Concrete Coalition and the California Inventory Project: An Estimate of the Number of Pre-1980 Concrete Buildings in the State. CSSC. (2005). Homeowner’s Guide to Earthquake Safety . Sacramento, CA. CSSC. (2006). Status of the Unreinforced Masonry Building Law. California Seismic Safety Commission, Sacramento. FEMA. (2009). Unreinforced Masonry Buildings and Earthquakes: Developing Successful Risk Reduction Programs. Herman, F., Russell, J., Scott, S., & Sharpe, R. (1990). Earthquake Hazard Identification and Voluntary Mitigation: Palo Alto's City Ordinance. California Seismic Safety Commission 90-05, Sacramento, CA. NIST. (2015). Community Resilience Planning Guide Volume 1. National Institute of Building Sciences. Retrieved from http://www.nist.gov/el/resilience/upload/NIST-SP-1190v1.pdf Olson, R. S. (1999). Some Buildings Just Can't Dance: Politics, Life Safety, and Disaster. Stamford, CN : Jai Press Inc. Seismic Risk Assessment Study Final Report December 21, 2016 Page 77 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 139     Rabinovici, S. (2012). Motivating Private Behavior with Public Programs: Insights from a Local Earthquake Mitigation Ordinance. Berkeley, CA: University of California Berkeley. Samant, L., & Tobin, T. (2008). Memo to the Advisory Committee on Incentives to Encourage Seismic Retrofits: Options for San Francisco”. San Francisco, CA. 5 Sept. 2008. San Francisco, CA: Community Action Plan for Seismic Safety. SF ESIP. (2011). Community Action Plan for Seismic Safety, San Francisco Earthquake Implementation Plan (ESIP) Workplan 2012-2042. San Francisco, CA. SPUR. (2008). The Resilient City: Defining What San Francisco Needs from Its Urban Resilience Strategy. San Francisco, CA. SPUR. (2011). Safe Enough to Stay: What will it take for San Franciscans to live safely in their homes after an earthquake? San Francisco, CA. Seismic Risk Assessment Study Final Report December 21, 2016 Page 78 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 140     CHAPTER IV. BUILDING INVENTORY FOR LOSS ESTIMATE One of the first steps in the study was to develop a digital inventory of buildings in Palo Alto that includes all the information necessary to build the exposure model for the loss estimate. Information sources used to develop the inventory included county tax assessor files, City GIS files, a survey done by the Palo Alto Fire Department and San Jose State University of soft-story wood frame buildings, field notes from the building department files of selected buildings when the 1986 ordinance was being developed, Google Earth and Street View visual reviews, and an extensive sidewalk survey. The Santa Clara County tax assessor’s files, which included 21,187 parcels of real estate in the City of Palo Alto, were used as a starting point to develop the building inventory. The 15,198 parcels designated as single family or two-family residences were first removed, as these were excluded from the study, leaving 5,989 parcels of interest. A parcel is not always equivalent to a building. On one hand, there are some sites where there is one owner and one tax parcel, but there are multiple buildings. Sometimes, it is easy to distinguish the separate buildings from an application like Google Earth or Street View as there is sufficient separation between the structures; in other cases, a field survey is needed when the seismic separation is small (or not present). On the other hand, condominiums can be a single structure, but have multiple owners and thus multiple separate taxpayers and parcel numbers. For the 3,630 residential parcels with three or more units, we found 1,324 distinct buildings. Of the remaining 5,989 – 3,630 = 2,359 tax parcels, we found that 961 tax parcels were identified as “possessory interest.” They are used at the city-owned Palo Alto airport for administration of property taxes for concessionaires and for other purposes at other locations in the city, and they do not represent buildings. When they were removed, there were 1,398 non-residential buildings. They were combined with the 1,324 residential buildings for a total of 2,722 buildings. The assessor’s data typically included parcel number (APN), year built, occupancy type, square footage, and number of stories. These data were supplemented with ArcGIS shape files of building and parcel outline from City GIS files, providing the geospatial location of each parcel (by latitude/longitude). In addition to this information, the exposure model requires basic data on structural system needed to classify each building into a Hazus Model Building Type. For some buildings, this information was Seismic Risk Assessment Study Final Report December 21, 2016 Page 79 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 141     available from earlier inventory efforts, including a select set of inventory forms used in developing the current seismic mitigation program, and a survey by SJSU and the City’s Fire Department of soft-story wood frame buildings. However, for many buildings no structural system could be assigned based on available records. The field survey was used to assign the seismic force-resisting system (using the basic FEMA Model Building Type classification system), and to confirm and supplement information acquired from the digital files for number of stories, occupancy (using the Hazus occupancy categories), building area, and year built. In addition, buildings were surveyed for vertical and plan irregularities. After the sidewalk surveys and additional quality assurance refinements, we identified a total of 2,632 buildings in the study group for Palo Alto. This included 66 buildings subject to Palo Alto’s current seismic mitigation ordinance, because 23 of the original 89 buildings subject to the ordinance have been demolished. Not all buildings were field surveyed and not all key attributes needed for loss estimation were available for all buildings. For buildings that were not surveyed and were missing information, the missing attributes were developed using statistical comparisons with buildings that were surveyed on a sector by sector basis. A multi-step procedure was developed to fill in other missing attributes based on the best available comparative information. For example, buildings with missing occupancy and number of stories were assigned occupancies and number of stories with the same distribution of occupancies for surveyed buildings in that sector. For buildings with missing square footage data, the median values in the sector for residential and non-residential buildings were used. In assigning missing seismic force-resisting system information and year built, some rules were applied based on typical building practices. As a result, while the information for buildings that were not surveyed may not be fully accurate at the individual building level, the overall data set is seen as sufficiently representative for the type of loss estimates used in the project and relative comparisons made between different building types that are discussed ahead. In addition to the information discussed above, a replacement cost had to be established for each building. Standard 2014 RS Means Replacement Cost values included in the loss estimation software (Hazus) used were reviewed as a starting point, but not considered representative for Palo Alto. R+C and Vanir Construction Management prepared adjustments to RS Means values to capture 2016 data and local factors. These were reviewed by a task group of the City’s project Advisory Group that included local design professionals and developers familiar with the local cost climate. The group recommended an increase of the values in general, and identified target values for selected common occupancies. Based on these recommendations, R+C updated the values and Vanir reviewed them and revised the non-targeted occupancies for estimating consistency. The resulting replacement costs are shown in Table 5, and were used in the loss calculations. It is noted that resulting costs are 1.7-2.6 Seismic Risk Assessment Study Final Report December 21, 2016 Page 80 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 142     times the RS Means-based Hazus default values (2014 cost data), and that costs are intended to be representative of averages across the town. Table 5: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Escalation Demo & Soft Cost Average Multiplier Factor for Palo Alto Factor from 2014 Sitework Minimal Premium2 2016 Palo Alto Cost w/ Soft (Replaced with Soft Costs / RS Means) costs to (5’ 2016 costs around building) [$/SF]Costs [$/SF] Multi Family, duplex $130.75 $114.94 40% 40% 10% 10% $17.50 $17.50 20% 20% $263 $233 2.01 2.03Multi Family, triplex/quad Multi Family, 5-9 units $206.41 $194.12 40% 40% 10% 10% $17.50 $17.50 20% 20% $402 $380 1.95 1.96Multi Family, 10-19 units Multi Family, 20-49 units $212.26 40%10%$17.50 20%$413 1.95 Multi Family, 50+ units Temporary Lodging Institutional Dormitory Nursing Homes $199.90 $217.83 $234.44 $238.07 $121.66 $118.13 $143.47 40% 40% 50% 50% 80% 60% 60% 10% 10% 14% 12% 10% 10% 10% $17.50 $17.50 $25.00 $25.00 $17.50 $17.50 $17.50 20% 20% 20% 20% 20% 20% 20% $390 $424 $511 $510 $310 $$270 $324 1.95 1.94 2.18 2.14 2.55 2.29 2.26 Retail Trade Wholesale Trade Personal & Repair Services Professional/Technical/ Business Services $194.52 65%12%$17.50 20%$452 2.33 Banks $281.88 $372.59 $267.85 40% 50% 20% 25% 35% 20% 25% 25% 30% 30% 12% 14% 10% 12% 12% 10% 10% 10% 12% 12% $25.00 $35.00 $17.50 $25.00 $25.00 $17.50 $17.50 $17.50 $17.50 $17.50 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% $560 $807 $445 $448 $368 $155 $260 $216 $422 $422 1.99 2.16 1.66 1.80 1.98 1.83 1.80 1.83 1.84 1.84 Hospitals Medical Office/Clinics Entertainment/Recreation $248.61 Theaters $186.45 $84.59Parking Heavy $144.71 $118.13 $229.48 $229.48 Light Food/Drugs/Chemicals Metal/Minerals Processing High Technology $229.48 40%14%$17.50 20%$461 2.01 Seismic Risk Assessment Study Final Report December 21, 2016 Page 81 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 143     Table 5: Average $/SF replacement building cost by Hazus occupancy class. Occupancy Class RS Means 2014 Average Palo Alto Cost1 [$/SF] Market Escalation Demo & Soft Cost Average Multiplier Factor for Palo Alto Factor from 2014 Sitework Minimal Premium2 2016 Palo Alto Cost w/ Soft (Replaced with Soft Costs / RS Means) costs to (5’ 2016 costs around building) [$/SF]Costs [$/SF] Construction $118.13 $118.13 $199.08 $152.63 $259.52 $193.00 $214.91 30% 50% 10% 40% 40% 40% 60% 10% 12% 12% 10% 14% 12% 12% $17.50 $25.00 $17.50 $17.50 $25.00 $25.00 $25.00 20% 20% 20% 35% 35% 35% 35% $224 $268 $315 $341 $593 $442 $554 1.89 2.27 1.58 2.23 2.28 2.29 2.58 Church Agriculture General Services Emergency Response Schools/Libraries Colleges/Universities Notes: 1. RS Means average cost includes RS Means default location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. 3. Costs are intended to be representative of average in Palo Alto across the town, including downtown areas together with other areas in the city. 4. Costs were previously prepared following a 3/7/2016 discussion with the Palo Alto Seismic Risk Program Advisory Group Technical Advisory Committee. Table includes minor updates based on internal review between Rutherford + Chekene and Vanir Construction Management to achieve improved relative ratios between different occupancy types. Table 6 shows how the number and aggregate value of Palo Alto’s buildings is distributed by structural system, using the FEMA Model Building Type classification system for structural system. The table is sorted by aggregate building value. Wood frame buildings make up about 60% of the number of buildings, and represent 35% of the total value. About 20% of the buildings are concrete, and they represent over 40% of the total value. Of the remaining 20%, about two-thirds are masonry buildings, and one-third steel. However, the steel buildings represent about twice the value of the masonry buildings. Seismic Risk Assessment Study Final Report December 21, 2016 Page 82 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 144     Table 6: Distribution of number of buildings, building area, and building value by Model Building Type. Model Building Type Number of Buildings Aggregate Square Feet (1,000) Aggregate Building Value ($M) Concrete shear wall (C2)318 242 331 307 50 9,699 8,054 8,403 6,209 3,116 3,821 3,005 2,806 574 4,082 3,368 3,232 2,369 1,391 1,278 1,242 1,209 211 Concrete tilt-up (PC1) Wood frame larger residential (W1A) Wood frame commercial/industrial (W2) Steel braced frame (S2) Wood frame smaller residential (W1) Steel moment frame (S1) 898 75 Reinforced masonry, wood floor (RM1) Reinforced masonry, concrete floor (RM2) Steel light metal frame (S3) 285 30 41 533 177 Precast concrete frame (PC2)5 334 125 Concrete moment frame (C1)18 325 117 Steel frame with concrete shear walls (S4) Unreinforced masonry bearing wall (URM) Concrete with masonry infill (C3) Steel frame with masonry infill (S5) Totals 13 162 72 9 274 15 8 26 8 2 6 3 2,632 47,346 18,899 The study group can be further divided into age groups separated by significant milestones in building code implementation. The following age groups were selected: pre-1927, 1927-1961, 1962-1976, 1977- 1997, and 1998 until now. The milestones reflected include the first earthquake code in Palo Alto in 1926, adoption of the 1961 Uniform Building Code (UBC) and associated higher forces, code changes in the 1976 UBC following the 1971 San Fernando Earthquake, and code changes in the 1998 UBC following the 1994 Northridge Earthquake. Figure 10 shows a histogram of the year built of the buildings in the study group. Seismic Risk Assessment Study Final Report December 21, 2016 Page 83 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 145     Figure 10: Distribution of year built of buildings in study group with significant changes in the building design practice. Seismic Risk Assessment Study Final Report December 21, 2016 Page 84 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 146     CHAPTER V. VULNERABLE BUILDING CATEGORIES One of the important tasks in the risk assessment study was to identify potentially vulnerable building categories specific to Palo Alto using the building inventory that was developed early in the risk assessment study. Potentially vulnerable structural system types were identified based on experience in past earthquake events, knowledge of milestones when improvements in seismic code requirements were made in Palo Alto, rankings in prominent seismic risk assessment tools such as the 2015 edition of FEMA P-154 Rapid Visual Screening of Buildings for Potential Seismic Hazards, results from past seismic risk assessment studies in California communities, and engineering judgment. The building categories were then evaluated in analytical loss estimate studies described ahead which helped to confirm the selected categories as appropriate for Palo Alto. Key building vulnerability metrics include the risk of deaths and injuries, the cost of damage, and the extent of downtime or loss of use. Buildings in the identified vulnerable building categories tend to perform poorly with respect to all three of these metrics though the relative degree of vulnerability to each factor varies. Community resilience is improved if residents have homes that remain usable after an earthquake event, and if businesses can still operate. From a program perspective, the consultant team and Advisory Group believe the greatest reduction in losses and the largest benefit to community resilience will come from seismically retrofitting building types know to be both potentially hazardous and present in significant numbers in Palo Alto. In addition to the three categories already in Palo Alto’s seismic hazard identification ordinance (Categories I, II, and III below), five additional categories of vulnerable building types were identified. All five categories meet the criteria of being potentially hazardous and having a significant presence in Palo Alto. The eight categories and the approximate number of buildings included in each category are as follows:   Category I: Constructed of unreinforced masonry, except for those small than 1,900 square feet with six or few occupants (10 remaining buildings in Palo Alto); Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (4 remaining buildings); Seismic Risk Assessment Study Final Report December 21, 2016 Page 85 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 147     Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (9 remaining buildings);      Category IV: Pre-1977 soft-story wood frame (294 buildings); Category V: Pre-1998 tilt-up concrete (99 buildings); Category VI: Pre-1977 concrete soft-story (37 buildings); Category VII: Pre-1998 steel moment frame (35 buildings); Category VIII: Other pre-1977 concrete construction (170 buildings). The loss estimate discussed ahead in Chapter VIII confirmed that the potential reduction in losses from retrofitting is significant for these categories. Seismic Risk Assessment Study Final Report December 21, 2016 Page 86 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 148     CHAPTER VI. CONCEPTUAL SEISMIC RETROFITTING OF REPRESENTATIVE VULNERABLE BUILDINGS Retrofit was considered for all buildings that have not already been retrofitted and were either constructed before 1961 or between 1962 and the “benchmark” year with a soft story. A “benchmark” year is when the code requirements for that building type became similar to those currently in place. Buildings built after a benchmark year are assumed not to have significant seismic deficiencies and are typically not seismically retrofitted. Consistent with typical practice, the performance of the retrofitted buildings in an earthquake is assumed to be less than that of newly constructed buildings. For estimating the cost of retrofit for the improved buildings, Rutherford + Chekene developed conceptual designs for Model Building Types that represent a significant number and value of Palo Alto’s building stock, as well as a significant loss and loss reduction after retrofit. This process identified wood frame (W1, W1A, W2), steel moment frame (S1), concrete shear wall (C2), concrete tilt-up (PC1), and reinforced masonry (RM1) and unreinforced masonry (URM) as appropriate candidates. For each Model Building Type, the age, square footage and number of stories were reviewed to identify a “prototype” building. In cases where the prototype building was not representative of more than two- thirds of the total number of buildings, it was judged that multiple prototypes should be considered. Seismic Risk Assessment Study Final Report December 21, 2016 Page 87 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 149     Figure 11: Retrofit scheme for Large Multi-family Soft-Story Wood Frame Building. For example, for the W1A Model Building Type there were a significant number of two-story and three- story buildings with a significant difference in average square footage. Therefore, a two-story and a three-story prototype building were developed to represent this Model Building Type. Eventually this led to the 12 prototype buildings shown in Table 7. Based on a review of buildings of size similar to the prototypes, representative floor plans were developed. A conceptual retrofit was then shown on the floor plans. An example of a conceptual retrofit for the W1A prototype building is shown in Figure 11 from a 2000 brochure by Rutherford + Chekene for the City of San Jose entitled “Practical Solutions for Improving the Seismic Performance of Buildings with Tuckunder Parking.” The retrofit elements were keyed to representative details in 2006 FEMA 547 Techniques for the Seismic Rehabilitation of Existing Buildings, and a written description of Seismic Risk Assessment Study Final Report December 21, 2016 Page 88 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 150     collateral impacts was developed as well to provide sufficient detail to allow a rough order of magnitude cost estimate to be prepared. The conceptual retrofit designs, description of collateral impacts, and referenced details are included in Appendix E. The cost estimators of Vanir Construction Management used the conceptual designs to estimate a range of probable cost to implement the retrofits. The retrofit costs for each prototype building are shown in Table 7. These costs include hard costs, which are the costs the owner pays the contractor, plus a design contingency as these are conceptual retrofits. The estimate further includes soft costs, representing architect and engineer design fees, testing and inspection costs, permit fees, and an owner change order contingency. Considered costs do not include hazardous material abatement, costs associated with performing the work while occupants are using the building, triggered accessibility upgrades, cost premiums associated with retrofit of a historic building, tenant relocation or business interruption during construction, project management, renovation, financing, repair of existing conditions, and legal fees. These costs are more variable and project and site specific, and are typically not included in loss estimates for this type of study. A detailed breakdown of estimated cost is included in Appendix F The retrofit costs were extrapolated to Model Building Types not represented by a prototype retrofit as shown in the fifth column of Table 7. Seismic Risk Assessment Study Final Report December 21, 2016 Page 89 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 151     Table 7: Conceptual retrofit cost. Retrofit Prototype Model Building Type Stories Square Feet Used for Model Building Types Used for Square Feet Average Retrofit Cost ($/SF) 1 2 3 4 Wood frame smaller residential (W1) 2 2 3 2 5,320 9,500 W1 W1A All < 15,000 ≥ 15,000 All 12 11 6 Wood frame larger residential (W1A) Wood frame larger residential (W1A) 30,000 10,000 W1A Wood frame W2 14 commercial/industrial (W2) 5 6 Steel moment frame (S1) Concrete shear wall (C2) 2 1 43,900 5,000 S1, S2, S3 All 10 50C1, C2, S4, < 10,000 PC2 7 Concrete shear wall (C2)2 17,280 C1, C2, S4, ≥ 10,000 40 PC2 8 9 Concrete tilt-up (PC1) Concrete tilt-up (PC1) 1 2 1 18,435 38,400 2,750 PC1 PC1 < 25,000 ≥ 25,000 < 5,000 29 21 7410Reinforced masonry, wood floor (RM1) RM1, RM2 11 12 Reinforced masonry, wood floor (RM1) 2 1 8,150 5,000 RM1, RM2 ≥ 5,000 46 Unreinforced masonry bearing wall (URM) URM, S5, C3 All 110 Seismic Risk Assessment Study Final Report December 21, 2016 Page 90 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 152     CHAPTER VII. LOSS ESTIMATING FINDINGS FOR EXISTING BUILDING STOCK Hazus is a geographic information system (GIS) based, standardized, nationally applicable multi-hazard loss estimation methodology and software tool. It is used by local, state, and federal government officials for preparedness, emergency response, and mitigation planning. FEMA has recently released the latest version of Hazus (Hazus 3.1) which includes building inventory data reflecting 2010 census data for residential structures and costs to 2014. Rather than using the embedded inventory data for Palo Alto, which are estimated from census data, a detailed earthquake risk assessment of the individual buildings in the study group was conducted using the Hazus Advanced Engineering Building Module (AEBM). Direct loss is calculated through a complex process in Hazus. In essence, the engine consists of a large database of “fragility functions”. These fragility functions describe the probability of exceeding threshold damage levels as a function of a seismic demand parameter. For example, spectral displacement is linked to slight, moderate, extensive and complete damage states to describe the performance of a structural system. The estimated level of damage for the level of ground shaking under consideration is then used to assign the costs to repair or replace the damage to the building’s structural and nonstructural systems and contents (the loss). Each Hazus fragility function represents a combination of Model Building Type, number of stories, and seismic design level. Analyses were conducted for two specific earthquake scenarios developed by the United States Geological Survey (USGS), a major M7.9 San Andreas Fault event, and a strong M6.7 San Andreas Fault event. The USGS has developed a suite of ShakeMap earthquake scenarios for different faults around California. In the San Francisco Bay Area, they include events of different magnitude on a number of faults, such as various segments of the San Andreas Fault and the Hayward Fault. The largest scenario is a M7.9 event on the San Andreas Fault which represents a repeat of the 1906 earthquake. In this scenario, all four segments (Santa Cruz Mountains, Peninsula, North Coast, and Offshore) of the San Andreas Fault are assumed to rupture. There is a M7.2 event on the Peninsula segment with an Seismic Risk Assessment Study Final Report December 21, 2016 Page 91 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 153     epicenter somewhat south of Palo Alto. In addition to the scenarios, a ShakeMap of the 1989 Loma Prieta earthquake which had an epicenter southwest of Palo Alto is also available. In reviewing the available scenarios, the repeat of the 1906 earthquake provided a desirable, easy to communicate upper bound scenario. Since the 1989 Loma Prieta event did relatively little damage to buildings in Palo Alto (though there was substantial damage to some of the older buildings at nearby Stanford University), it was judged to be too small to provide meaningful information for policy choices in Palo Alto. Most of the Hayward Fault scenarios also produce small to moderate shaking in Palo Alto. Review of the M7.2 San Andreas scenario found that it produced relatively similar peak ground acceleration and short period spectral accelerations to those of the M7.9 scenario. Tom Holzer, an engineering geologist with the USGS, is a member of the project Advisory Group. With his help and the ShakeMap team at USGS, two other scenarios were developed between the M7.2 scenario and the Loma Prieta earthquake. These are a M6.9 scenario and a M6.7 scenario on the Peninsula segment of the San Andreas with an epicenter directly adjacent to downtown Palo Alto. In the end, the M6.7 scenario was selected in addition to the M7.9 scenario. The M6.7 scenario provided values somewhat smaller than the M7.9 scenario event, values large enough to be meaningful, and is a magnitude size commonly used in USGS communications. It also has a substantially lower equivalent return period from the M7.9 scenario. Contour plots for the short period spectral acceleration for the two M6.7 and M7.9 scenarios are shown in Figure 12. Seismic Risk Assessment Study Final Report December 21, 2016 Page 92 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 154     Figure 12: Predicted short period spectral acceleration in vicinity of Palo Alto (city boundary shown) for two selected San Andreas Fault scenarios. Table 8 summarizes the total loss calculated by Hazus for the as-is condition for the two earthquake scenarios. The results show that the estimated losses to Palo Alto buildings and contents in a M6.7 scenario will be significant, on the order of $1.2 billion. Though ground shaking in the M7.9 scenario is only about 25% larger than it is in the M6.7 scenario, overall building and content losses double to $2.4 billion. Average building damage and content damage also approximately double with a M7.9 event. The difference in the number of buildings that are heavily damaged with the larger earthquake is more pronounced with a 12-fold increase from the M6.7 to the M7.9 scenarios. This is shown in the fourth column of Table 8 as the number of buildings with a damage ratio exceeding 20%. Seismic Risk Assessment Study Final Report December 21, 2016 Page 93 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 155     Table 8: Total losses for study group in as-is condition. Earthquake Building Content Value2 ($B) Number of Bldgs with Damage Ratio ≥ 20%3 Estimated Estimated Total Building and Content Damage ($B) Scenario Value1 Building Damage4 ($B) Content Damage4 ($B) ($B) M7.9 M6.7 18.9 18.9 17.3 17.3 224 19 1.7 0.8 2 0.7 0.4 2 2.4 1.2 2Ratio of M7.9/M6.7 Notes: 1. Building value is the complete replacement cost for the building, and includes the structure, architectural, mechanical, electrical, and plumbing components (e.g., ceilings and lighting). 2. Content value includes the complete replacement cost of furniture and equipment that is not integral with the structure (e.g., computers and other supplies). They are estimated as a percent of structure replacement value, dependent on occupancy. 3. Damage ratio is defined as the cost of repairing damage divided by the replacement cost of the building. 4. Estimated building and content damage cost is the cost associated with repair and replacement of the building and its content. Seismic Risk Assessment Study Final Report December 21, 2016 Page 94 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 156     To put the loss from building damage in context, the average annual valuation of Palo Alto construction permits was $400M between 2013 and 2016 (which represents a boom period). The total loss in a major M7.9 earthquake represents more than four years’ worth of construction, and the total loss in a strong M6.7 earthquake represents more than two years worth of construction. It should be noted that these losses do not include the effects of lives lost and business disruption, or the ripple effects in the local economy or real estate market, and that much of this loss will not be insured. Table 9 breaks out the estimated loss and damage ratio for various model building types, and it can be seen that it depends on the metric used which building type is considered the poorest performer. Looking at the total loss alone, concrete bearing wall buildings and commercial wood frame buildings are responsible for the highest total loss. This tracks well with the earlier finding that these structural systems are the most prevalent ones. If we look at the highest average building damage ratio instead, buildings with unreinforced masonry bearing walls and unreinforced masonry infills are the most prone to damage. However, not very many of them exist in Palo Alto, and as a result they do not represent much of the aggregate loss. It is therefore important to look at multiple metrics when deciding which buildings are the most vulnerable and significant to the community as a whole. Seismic Risk Assessment Study Final Report December 21, 2016 Page 95 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 157     Table 9: Top three vulnerable building types ranked by total loss, average damage ratio, and number of severely damaged buildings. Building Type Number Building M7.9 EQ M7.9 EQ Average Number M7.9 EQofValue ($M) Total Buildings Building + Content Building of Bldgs Losses ($M) Damage Ratio with Damage Ratio ≥ 20% Concrete shear wall (C2)318 242 307 4,082 3,368 2,369 477 365 216 14% 12% 9% 75 32 9 Concrete tilt-up (PC1) Wood frame commercial/industrial (W2) Steel frame with masonry infill (S5)2 9 8 3 15 8 1 4 2 38% 29% 29% 1 9 6 Unreinforced masonry bearing wall (URM) Concrete frame with masonry infill (C3) Concrete shear wall (C2) Concrete tilt-up (PC1) Steel moment frame (S1) 318 242 75 4,082 3,368 1,242 477 365 130 14% 12% 18% 75 32 27 Seismic Risk Assessment Study Final Report December 21, 2016 Page 96 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 158     CHAPTER VIII. LOSS ESTIMATING FINDINGS WITH BUILDINGS RETROFITTED A second Hazus AEBM run was done assuming a retrofitted building stock. For this run, it was assumed that a building would be retrofitted if it has not already been retrofitted and is either constructed before 1961 or between 1962 and the benchmark year with a soft story. The Hazus model was rerun with the updated fragilities simulating retrofit. Table 10 shows the resulting total losses and damage ratios. Though total losses are still significant, comparing the results of Table 10 with Table 8 shows a reduction in total loss of 45% for the M7.9 scenario, and 33% for the M6.7 scenario. In other words, aggregate loss to the community if all considered properties were retrofit could be reduced by one third in a very plausible event and almost halved in a much larger event. Another important improvement is the reduction of the number of buildings with more than 20% damage. The M7.9 scenario shows a reduction from 224 buildings to 6 buildings, meaning that the probability of building collapse and resulting injuries and fatalities has become very low. Finally, the damage and loss of the M7.9 scenario remain approximately two times the amount sustained in the M6.7 scenario. This suggests that the retrofit has a similar impact for both levels of ground shaking. Table 10: Total losses after retrofitting. Earthquake Building Content Estimated Number Estimated Total Building & Content Damage ($B) Scenario Value ($B) Value ($B) Building Damage ($B) of Bldgs with Content Damage ($B)Damage Ratio ≥ 20% M7.9 M6.7 18.9 18.9 17.3 17.3 0.9 0.5 2 6 0 - 0.5 0.3 2 1.3 0.8 2Ratio of M7.9/M6.7 Table 11 breaks out the reduction in total loss by model building type for the M7.9 scenario, and shows the associated retrofit cost. The average reduction in loss varies by building type, with URM buildings showing the highest reduction in loss after retrofit of 80%, and steel braced frames showing an 18% Seismic Risk Assessment Study Final Report December 21, 2016 Page 97 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 159     reduction at the low end. On average, the retrofit costs are on the order of the damage reduction for this scenario, though by building type the average damage reduction (loss avoided) divided by retrofit cost ranges from 0.14 for steel light frame buildings to almost eight for reinforced masonry buildings. Wood frame and concrete buildings are responsible for the largest reduction in total loss, with wood frame construction representing over 20% of the loss reduction, and concrete buildings over 50%. It should be noted that the data in Table 11 also includes buildings that were not retrofitted. As a result, further parsing of the data is needed to better understand which buildings are responsible for the most loss, and those that can be improved more cost-effectively. Seismic Risk Assessment Study Final Report December 21, 2016 Page 98 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 160     Table 11: Comparison of retrofit benefits and costs by Model Building Type. Model Building Type M7.9 EQ Average Damage ($/SF) M7.9 EQ Total Damage Reduction ($1,000) Average Damage Reduction ($/SF) Retrofit Cost ($/SF) Wood frame smaller residential (W1) Wood frame larger residential (W1A) Wood frame commercial/industrial (W2) Steel moment frame (S1) 16 25 13,775 61,317 160,155 76,150 24,222 38,163 11,118 695 4 7 12 6-11 145026 25 8 62 10 Steel braced frame (S2)44 10 Steel light metal frame (S3)108 101 247 55 72 69 121 25 35 34 27 0 10 Steel frame with concrete shear walls (S4) Steel frame with masonry infill (S5) Concrete moment frame (C1) 40-50 110 8,045 40-50 40-50 110 Concrete shear wall (C2)70 336,574 865Concrete frame with masonry infill (C3) Concrete tilt-up (PC1) 120 68 218,491 0 21-29 21-29 46-74 46-74 110 Precast concrete frame (PC2)21 Reinforced masonry, wood floor (RM1) Reinforced masonry, concrete floor (RM2) Unreinforced Masonry Bearing Wall (URM) Totals 59 87,697 3,727 31 635 23 5,216 19 22511,046,210 Seismic Risk Assessment Study Final Report December 21, 2016 Page 99 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 161     Table 12 shows those buildings types that may be considered good candidates for a retrofit program. Although representing only about 15% of the total inventory, these buildings are responsible for over 30% of the total loss. This is reflected in the considerably higher than average loss (fourth column of Table 12). The benefit of retrofit is also considerable for this group of buildings, as they are responsible for over 50% of the reduction in loss. Additionally, the cost to retrofit them is only a fraction of the losses avoided in a major event, ranging from a third for the concrete buildings to a tenth for the steel frames. Note that these values are based on conceptual retrofits. Actual retrofit costs for individual buildings would vary substantially, and the steel moment frame benefit-to-cost ratio is higher than expected by engineering judgment. This is caused in part by a comparatively low retrofit cost for this Model Building Type. Table 12: Comparison of benefits and costs by selected Model Building Type, date and characteristics. Model Building Type Number of Buildings (1,000) Total SF M7.9 EQ Average Loss by Building ($/SF) M7.9 EQ Average (Average Average Loss Cost to Retrofit Avoided) Loss Avoided by Retrofit ($/SF) ($/SF)/ (Average Retrofit Cost) Pre-1977 wood frame soft-story (W1, W1A, W2) 294 99 3,690 3,078 842 66 46 71 12 23 42 10 4 3Pre-1998 tilt-up (PC1) 106 149 152 Pre-1977 concrete soft-story (C1, C2, C3) 37 108 110 3 Pre-1998 steel moment frame (S1) 35 690 11 Seismic Risk Assessment Study Final Report December 21, 2016 Page 100 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 162     CHAPTER IX. REVIEW OF PAST SEISMIC RETROFITS To gain a better understanding of the quality of the retrofits and identify relevant issues to updating Palo Alto’s seismic risk mitigation program, a sample of the submitted engineering studies and building retrofit drawings was reviewed. Ten buildings were selected, so that their permit history could be reviewed and documents could be retrieved from the archives of the Building Department. They were distributed over the three existing hazardous buildings categories, and also included soft-story wood frame buildings. Records were retrieved for four Category I buildings (to reflect the higher number of these), two Category II buildings, two Category III buildings, and two soft-story wood frame buildings. The City tracked permit numbers for the retrofit projects in their “hazardous buildings” database. Even so, it proved difficult to retrieve associated documents. After careful review of the City’s records, some archived documents showing structural modifications were retrieved. The type of documents available varied from building to building. In about half of the cases, plans were available, and in the other half, the documents consisted of calculations with sketches. For one of the Category I buildings, plans showing a comprehensive retrofit were available. The 2001 California Building Code was referenced for seismic design. In a second case, the retrieved plans show retrofit of a section of the building that appears to be intended to improve the original retrofit. It was unclear if other sections of the building were improved in a similar fashion. In the third case, structural calculations were provided. It is unclear what criteria were used, as the 1991 UCBC is used for certain elements and the regular UBC seismic load calculations for global loading. The set of plans retrieved for the last building is for a tenant improvement that appears to have been constructed a few years after the original seismic retrofit. Interestingly, the structural engineer referenced the 1977 UBC as the seismic design criteria. The building is identified on the plans as a concrete building, rather than a URM building. For the Category II buildings, in one case only the permit application worksheet was available; in the other case there were detailed calculations and sketches (no construction documents). The permit Seismic Risk Assessment Study Final Report December 21, 2016 Page 101 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 163     application for the first building indicates that shear walls were added as part of a voluntary seismic upgrade. The sketches for the second building indicated that the retrofit was designed to mitigate the deficiencies identified in the evaluation report. It references both elements and loads from the earlier study. For the Category III buildings, it appears that in both cases the projects were driven by modifications or additions to the existing building. Since no plans were archived, and the calculations could not be easily followed, it was not clear if the existing building was fully evaluated and if all deficiencies found in the original evaluation report were addressed. In 2003, the Collaborative for Disaster Mitigation at San Jose State University completed an “Inventory of Soft-First Story Multi-Family Dwellings in Santa Clara County”. According to the report the City of Palo Alto had 130 soft-first story multi-family buildings including 1,263 residential units housing 3,158. The list of addresses from the San Jose State University report was updated with information from the City of Palo Alto Fire Department, and resulted in a reduced list of 108 addresses. According to this list, which was included in a recent Staff Report to Palo Alto’s Policy and Services Committee33, six buildings were improved voluntarily. Two sets of plans were retrieved and reviewed; in one case the plans improved two buildings with the same plan as a mirror image. One of the permits was issued in 2006 and one in 2009. It appears that in both cases the buildings were of a more recent vintage, as plans show that existing plywood shear walls are present. On both sets of plans design criteria were referenced, with one building referring to the 2001 California Building Code, and one Appendix Chapter A4 of the 2006 International Existing Building Code. Review of the submitted engineering studies and building retrofit drawings identified the following relevant needs for future seismic risk mitigation programs:    Clear identification of retrofit design intent, scope, and limitations, also for voluntary retrofits; Identification of existing structural systems; Decision on requirements for buildings that have had partial seismic retrofits completed, and may have remaining seismic deficiencies. 33 Policy and Services Committee Staff Report 5293, Discussion of Updating the Seismic Safety Chapter of the Municipal Code for Hazardous Buildings, December 9, 2014, available online at https://www.cityofpaloalto.org/civicax/filebank/documents/44945 (accessed 12/21/2016) Seismic Risk Assessment Study Final Report December 21, 2016 Page 102 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 164     CHAPTER X. ADDITIONAL RECOMMENDED PROGRAM FEATURES In addition to expansion of the building categories included within the City’s seismic risk mitigation program and refinement of disclosure measures and incentive options, a number of other program features are recommended. They are described in the following: Use the current inventory, taking note of its limitations: The inventory developed for the effort to date involved use of digital information and field surveys. A complete field survey of all buildings in Palo Alto was outside the scope of the project. However, the inventory that has been developed is an excellent resource. The first step in any future ordinance will involve notification of building owners that they may be subject to the requirements of the ordinance. Those buildings that were field surveyed and fall within the scope of the ordinance can be notified using the existing inventory. For the remaining buildings, additional field survey is recommended. This would be a rapid visual assessment and could be conducted by City staff or outside consultants. Use an initial screening form phase: Typically, as part of the notification process, a screening form of about one-page in length is sent, and the owner is required to have a design professional, such as a structural engineer or architect, complete the form for a relatively nominal cost to confirm whether or not the building actually is subject to the City’s ordinance. Some buildings may appear from a rapid visual assessment to be one of the building categories covered, but upon closer review they are exempt. This approach has been taken in many communities in the past, and thus sample forms are available that can be easily tailored for Palo Alto. Clearly specify seismic evaluation and retrofit scope: The seismic evaluation (and retrofit) methodology for each building category will need to be defined after the building categories included in the updated ordinance are determined. Industry consensus standards exist and cover the vulnerable building categories identified for Palo Alto. These include the 2015 International Existing Building Code (IEBC) and 2014 ASCE 41-13 Seismic Evaluation and Retrofit of Existing Buildings. Both are currently being updated by groups of engineers and building Seismic Risk Assessment Study Final Report December 21, 2016 Page 103 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 165     officials. For soft-story wood frame buildings, there is also the 2012 FEMA P-807 Seismic Evaluation and Retrofit of Multi-Unit Wood-Frame Buildings with Weak First Stories. For steel moment frame buildings, there is also the 2000 FEMA 351 Recommended Seismic Evaluation and Upgrade Criteria for Existing Welded Moment Resisting Steel Structures. ASCE 41 has three tiers of evaluation: Tier 1, Tier 2, and Tier 3. Tier 1 is primarily a screening tool. As a minimum standard, Tier 2 is recommended. Table 13 provides recommended evaluation and retrofit standards. Table 13: Recommended Evaluation and Retrofit Standards Category Description Evaluation and Retrofit Standards I Unreinforced masonry IEBC Appendix Chapter A1 II Built before 1/1/35 with 100 ASCE 41 or more occupants III IV Built before 8/1/76 with 300 ASCE 41 or more occupants Pre-1977 soft-story wood frame IEBC Appendix Chapter A4, ASCE 41, or FEMA P-807 V Pre-1998 tilt-up IEBC Appendix Chapter A2 and ASCE 41 VI Pre-1977 soft-story concrete ASCE 41 VII Pre-1998 steel moment frame ASCE 41, or FEMA 351 VIII Other pre-1977 concrete ASCE 41 Provide detailed evaluation report submittal requirements: Minimum submittal requirements for evaluation reports will need to be defined. The above evaluation and retrofit standards provide some guidance but a short clear set of requirements will be beneficial. This will include such items as address, construction date, size, number of stories above and below grade, owner, occupancy type, structural system type, the location and features of the primary structural system, the extent of field review, material properties, the evaluation criteria and methodology used, whether the structure meets the evaluation criteria, identified seismic Seismic Risk Assessment Study Final Report December 21, 2016 Page 104 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 166     deficiencies if it does not. The current ordinance requires identification of retrofit measures to address seismic deficiencies. Even in a voluntary program, it is recommended that this be continued to help owners, tenants, and the City better understand what is necessary to mitigate the issues that exist.   Specify how past partial retrofits will be handled: In the past, some buildings have had partial seismic retrofits where only selected portions of the seismic force-resisting system have been upgraded, and some seismic deficiencies may still exist in these structures. If mandatory retrofit requirements are implemented that provide for comprehensive retrofitting of the full seismic load path, there may be buildings with previous partial retrofits that do not fully comply and need remaining deficiencies to be addressed. This will be identified in the seismic evaluation report. Update both new and existing building permit submittal requirements: Review of City records found that basic information such as the building structural system, date of construction, and retrofit standard used (where applicable) are not readily available. It is recommended that submittals for permit for both new buildings and existing building renovations require this information. For structural systems, both the categorization found in ASCE 41 and the ASCE 7 Table 12.2-1 is recommended. This will allow the city to have a much better understanding of its building stock and its expected performance in an earthquake.   Write a new ordinance or set of ordinances to update the program: After the Council has provided direction and the above issues have been addressed, an updated ordinance will need to formally be written. This can be done by City staff, but will likely benefit from the involvement of an appropriately experienced structural engineering consultant. Carefully address program management and interdepartmental coordination needs: To successfully manage Palo Alto’s updated Seismic Risk Mitigation Program, an effective management plan is needed so that progress is monitored by the City and community intent is achieved. It will include a realistic list of information that can be easily input, summarized, and tracked in digital records such as the submittal requirements recommended above and that can be used to link the seismic risk program data to other digital records such as assessor files or GIS systems; quality assurance procedures for checking information; clearly defined roles and responsibilities; timelines and requirements for reporting of information internally and externally; procedures for gathering, assessing and implementing community feedback and suggestions; and links between the seismic risk mitigation program and activities that will occur following an earthquake, such as postearthquake safety evaluation. Seismic Risk Assessment Study Final Report December 21, 2016 Page 105 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 167     Delineate department and key staff responsibilities: For Palo Alto’s updated Seismic Risk Mitigation Program, City staff will be responsible for several categories of activities.. These will include the basic activities such as managing the notification and inventory process, reviewing evaluation reports and plan checking retrofit construction documents, and field inspections of retrofit work. Less obvious activities will include evaluating requested exceptions to the program or alternative means of compliance; managing feedback from design professionals, owners, and the public; tying pre-earthquake retrofitting to post-earthquake safety evaluations records; and managing post-earthquake safety evaluation, repair, and recovery plans. Depending on the scale of the updated program, it is possible that addition staff members or consultants will be needed to handle the work flow. The City may also benefit from an appropriately experienced structural engineer to provide advice on technical and program management issues, particularly as the program moves to final definition and then to initial implementation. Later, as is done in some communities, it may be desirable to create volunteer review boards of local structural engineers who review questions on the evaluation and retrofit criteria and provide the city with technical opinions that staff can use. Seismic Risk Assessment Study Final Report December 21, 2016 Page 106 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 168     CHAPTER XI. QUESTIONS TO GUIDE COUNCIL DELIBERATIONS AND POTENTIAL ISSUES FOR FUTURE STUDY 1.QUESTIONS TO HELP GUIDE COUNCIL DELIBERATIONS Preferred policy directions were developed with the Advisory Group and staff as discussed in Chapter I and include expansion of the building categories currently covered by the City’s ordinance, movement toward mandatory requirements for some categories, additional disclosure measures and use of incentives to increase the effectiveness and likelihood of compliance and of success. To help the Council in its deliberations, a series of questions are given here. They are similar to questions and issues discussed by the Advisory Group. 1. Does the Council wish to expand the current seismic hazard program to cover more vulnerable building categories? 2. If so, which of the building categories in Table 1 should be included? The Advisory Group proposed that the existing Categories I-III, plus the Categories IV-VII, be included as follows. The categories are: a. Category I: Constructed of unreinforced masonry, except for those smaller than 1,900 square feet with six or fewer occupants (in the current ordinance) b. Category II: Constructed prior to January 1, 1935 containing 100 or more occupants (in the current ordinance) c. Category III: Constructed prior to August 1, 1976 containing 300 or more occupants (in the current ordinance) d. Category IV: Pre-1977 soft-story wood frame e. Category V: Pre-1998 tilt-up concrete f. Category VI: Pre-1977 concrete soft-story g. Category VII: Pre-1998 steel moment frame An eighth category (Category VIII other older nonductile concrete buildings) was discussed, but because of the lack of inexpensive analytical methods for reliably identifying the worst of these buildings, inclusion of this building category in an updated ordinance is not recommended at this Seismic Risk Assessment Study Final Report December 21, 2016 Page 107 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 169     time. Such buildings could be included in the future when the engineering community has developed appropriate analytical methods. 3. In addition to mandatory initial evaluation requirements, should one or more of the categories of buildings be subject to mandatory retrofit requirements? The Advisory Group had a consensus on mandatory requirements for renovation for unreinforced masonry buildings and there was strong support among many members for other categories such as soft-story wood frame buildings and tilt- up buildings, particularly those with high occupancies. 4. Should the City develop a trigger mechanism based on sale or substantial renovation where seismic retrofit is required? If so, which building categories should be subject to a trigger mechanism? There was support among some Advisory Group members for a trigger mechanism for some building categories, such as tilt-up industrial buildings, particularly those that are being converted to office buildings and increasing the occupant load and thus exposure to seismic risk. 5. What public disclosure or notice measures of the need for retrofitting a building should be pursued? The Advisory Group supported website listing and tenant notification, but there was low support for placing notices on property titles or for signage or placing placards on the outside of buildings. Other possibilities include encouraging earthquake performance rating systems and disclosing them to the public or developing such a rating system for city-owned buildings. 6. What incentive measures to encourage property owners undertake a structural retrofit should be pursued? The Advisory Group supported incentives for fee waivers, expedited permitting, and property- assessed financing tools. There was minimal interest in deep financial assistance such as establishing a special district or passing of bond measure to assist property owners financially. . Opinions were split on the use of transfer of development rights, floor area ratio bonuses, and parking exemptions. 8. How much time do you feel is reasonable for property owners of at risk buildings in the community to: a) prepare the initial structural evaluation reports for regulated buildings; and b), to complete mandatory structural retrofits to their buildings? 2.POTENTIAL ISSUES FOR FUTURE STUDY AND CONSIDERATION For some issues, based in part on Advisory Group discussions, additional information may be beneficial to help develop a strategy and to better understand potential impacts on key stakeholders and community concerns. Some of these issues are primarily economic and were outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. These issues include the following: Seismic Risk Assessment Study Final Report December 21, 2016 Page 108 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 170     •Occupants and tenants – – – How much would a typical retrofit add to the monthly rent of a multifamily soft-story wood frame apartment tenant? Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? –What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? • • Property owners, developers, and business owners – – – What are the characteristics of property owners that would be affected? How might small businesses be affected compared to larger ones? How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? Impacts of Seismic Restoration on Retention of Historic Structures in the City –Insure that the review of initial seismic evaluations identify those structures that are listed in the City’s Historic Inventory and flag them for attention during subsequent review. –Develop a clear process for reviewing proposed seismic retrofits to historic structures that is coordinated among responsible city departments and is consistent with current regulations and Community policies. –Seek out retrofit alternatives that are consistent with the Historic Building Code, historic characteristics of the structure, and provide the most risk reduction. •City departmental resources and budgets – – What would be the loss in revenue to the Building Department if fee waivers were offered? What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? –What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? Seismic Risk Assessment Study Final Report December 21, 2016 Page 109 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 171     • • Overall community economic health –What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? Other related issues –It was brought up in the Advisory Group that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with city departments agreeing to coordinate on a specified accelerated project review timeframe. – – – Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated into the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. Seismic Risk Assessment Study Final Report December 21, 2016 Page 110 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 172     APPENDIX A Table of Historic California Earthquake Risk Reduction Legislation Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 173     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Field Act 1933 Established regulations for the Palo Alto has school design and construction of K - facilities subject to this Public Schools Public Schools Education Code- §17281 12 and community college buildings. The Division of the State Architect enforces the Field Act. policy. Riley Act 1933 Required local governments to Palo Alto has school have building departments that issue permits for new construction and alterations to existing structures and conduct inspections. The Act also set minimum seismic safety requirements that have since been incorporated into all building codes. facilities subject to this policy. Garrison Act 1939 Required school boards to assess building safety of pre - Field Act schools, ordered As of 2011, Palo Alto had six schools on the "AB300 list" of affected buildings. Public Schools modernization of non-Field act Current status of these compliant structures. properties is not known. California 1971 Required city and county plans Palo Alto addresses General Plan Government Code § 65302Planning and Zoning Law Requirements to include seismic safety elements. earthquake hazards in the Safety element of its 2008 General Plan. 24 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 174     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Alquist-Priolo Earthquake Fault Zoning Act 1972 Required cities and counties to require a geologic Palo Alto contains areas located in Earthquake Fault Zones where construction is subject to these rules about heighted review or prohibitions exist on new development. Zoning Public Resources Code § 2621- 2630investigation, before issuing building permits, to ensure that proposed buildings will not be constructed across active faults. Proposed building sites must be evaluated by a licensed geologist. If an active fault is found, a structure for human occupancy cannot be placed over the trace of the fault. Strong Motion Instrument Act 1972 Established a statewide network of strong motion instruments to gather vital earthquake data for the engineering and scientific communities. Palo Alto may have relevant facilities within its jurisdiction, and the resulting information is a planning resource. Data obtained from the strong motion instruments can be used to recommend Research Public Resources Code§§2700 - 2709.1 changes to building codes, assist local governments in the development of their general plans, and help emergency response personnel in events. 25 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 175     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Alfred E. Alquist 1973 Regulated the design,Palo Alto has at least two Hospitals Health and Safety Code§129675 Hospital Facilities Seismic Safety Act construction and alteration of major hospitals in its hospitals; set seismic safety standards for new hospitals; created an advisory Hospital Building Safety Board. Office of Statewide Health Planning & Development enforces this Act. jurisdiction that are subject to this Act. Current status of their facilities is not known. Seismic Safety Commission Act 1975 Created the independent Palo Alto can take advantage of the technical Strategy Business and Professions Code §1014 California Seismic Safety Commission (CSSC) to provide assistance offered by the a consistent earthquake policy CSSC and its publications, framework for the state. The in particular the statewide mission of CSSC is “to provide Earthquake Hazard Loss decision makers and the general public with cost - Mitigation Plan of 2013, provides extensive advice effective recommendations to about high priority reduce earthquake losses and earthquake issues and expedite recovery from damaging earthquakes. initiatives. AB 2438 (Wray) 1980 Authorized local governments Palo Alto does not to adopt ordinances requiring currently require gas shut earthquake gas shut-off valves off valves but could Utilities Chapter 971, Statutes of 1980 in buildings open to the public. choose to do so. 26 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 176     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update SB 360 (Alquist) 1981 Required mobile home bracing devices. It also Palo Alto has one mobile home park in its jurisdiction, Buena Vista Mobile Home Park. Status of these homes with Mobile Homes Chapter 533, Statutes of 1981 required the Department of Housing and Community Development to administer the program, test devices, and regard to bracing is not issue certifications.known. Mello Roos Act 1982 Permits cities to establish Although there is no Financing Government Code §53311- 53317.5 Capital Improvement Districts precedent to date, Palo that can issue special bonds to Alto may be able to use fund facilities improvements without coming under the this tool to secure additional funds for caps on property tax increases retrofit projects for either that were imposed under Proposition 13. public or private buildings. SB 961 (Alquist) 1982 Required the Office of Palo Alto has at least two Hospitals Chapter 303, Statutes of 1982Statewide Health Planning and major hospitals in its Development to institute plan jurisdiction that are review and field inspection of hospital buildings being subject to this Act. constructed to ensure building safety. Requires the State Fire Marshal to ensure fire safety of these buildings. 27 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 177     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Alquist Hospital 1983 Required design and Palo Alto has at least two major hospitals in its jurisdiction that are Hospitals Health and Safety Code §§130000 - 130070 Facilities Seismic Safety Act construction standards for hospitals; requires that after Jan. 1, 2008 any general acute subject to this Act. care hospital building determined to be at potential risk of collapse or poses a risk of significant loss of life be used only for non-acute care. Economic Disaster Act 1984 Institutionalized the planning and response of state This law establishes the authorities and guidance for coordination among local and state entities in the management and recovery from a major event. Recovery Government Code §8695 agencies to disasters in order to reduce economic hardship stemming from these disasters to business. Upon the completion of the emergency phase and the immediate recovery phase of a disaster, appropriate state agencies shall take actions to provide continuity of effort conducive to long -range economic recovery. 28 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 178     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update SB 239 (L. Greene) 1985 Created the Essential Services Palo Alto Building Essential Department is required to Buildings implement heightened Chapter 1521, Statutes of 1985Building Act and declared the intent of the Legislature that essential services buildings be review for its fire stations, designed and constructed to a police stations, emergency higher standard to resist damage from earthquakes. Established design and communications, and other qualifying buildings. construction requirements. Essential Services Building Seismic 1986 Required enhanced regulatory Palo Alto Building Essential Health and Safety Code §16000 oversight by local Department is required to Buildings implement heightenedgovernments during the Safety Act design and construction of new essential service facilities, police stations, emergency such as fire and police stations communications, and review for its fire stations, and emergency other qualifying buildings. communications and operations facilities. The Division of the State Architect within DGS enforces this Act. Unreinforced Masonry Building Law 1986 Required local governments in Palo Alto mandated to URM Government Code §§ 8875- 8875.10 high seismic regions of comply. Current program in place has resolvedCalifornia to inventory un - reinforced masonry buildings, nearly all cases but a few establish mitigation programs, remain. and report progress to the CSSC. Signage requirements were added in 2004. 29 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 179     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update California Earthquake Hazards 1986 Called for a coordinated state Established the legal basis Strategy Government Code §8870program to implement new and expanded activities to significantly reduce the earthquake threat. for several key programs. Established the legal basis Reduction Act SB 548 (Alquist) 1986 Created the California Strategy Chapter 1491, Earthquake Hazard Reduction for several key programs. Act which called for the Statutes of 1985 Commission to administer a program to “significantly reduce hazards by January 1, 2000.” SB 2453 (Maddy) 1989 Required surgical clinics to hire architects and structural engineers to assure that medical equipment are Palo Alto may have relevant health facilities within its jurisdiction. Hospitals Chapter 1579, Statutes of 1990 properly anchored. Seismic Hazards 1990 Directed the Department of Palo Alto contains areas located where construction is subject to these additional rules for heighted review or prohibitions exist on new development. Zoning Public Resources Code §§ 2690 - 2699.6 Mapping Act Conservation to identify and map areas prone to liquefaction, earthquake - induced landslides, and amplified ground shaking. Requires geotechnical investigations and mitigation measures before permitting developments in mapped Zones of Required Investigation. 30 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 180     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Natural Hazards 1990 Required transferor of real All relevant real estate Disclosure Civil Code §1102 Disclosure Act property, consisting of not less transactions in Palo Alto than one nor more than four are subject to this dwelling units, to disclose to requirement, but transferee if the real property compliance is not lies within any of the following monitored or enforced. hazardous areas: a Special Flood Hazard Area (any type Zone A or V) designated by FEMA; an area of potential flooding shown on a dam failure inundation map; a very high fire hazard severity zone; wildland area that may Evidence suggests it is common practice to check "do not know" as a blanket policy for seismic vulnerability questions. contain substantial forest fire risks and hazards; an earthquake fault zone; and/or a seismic hazard zone. AB 3313 (Woodruff) 1990 Required the State Architect and the Building Standards Commission to develop and adopt seismic retrofit Palo Alto may have relevant facilities within its and jurisdiction or be able to take advantage of the guidelines produced for this program in Public Buildings Chapter 1511, Statutes of 1990 Universities guidelines for state buildings, including public universities. considering rehabilitation of its own facilities. 31 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 181     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Earthquake Safety and Public Buildings Rehabilitation Bond Act 1990 Authorized the state to issue $300 million in general Funding is exhausted but this legislation provides a model of one pathway to financial support to local entities to do seismic Public Buildings and Universities Prop 122 & Government Code §§8878.50- 8878.52 obligation bonds for the seismic retrofit of state and local government buildings ($250 million for state -owned mitigation work. buildings and $50 million for partial financing of local government essential services facilities). Executive Order 1990 Required CalTrans to prepare Palo Alto may have Infrastructure D-86-90 plan to retrofit transportation related facilities within its structures; requests UC and requires CSU to give priority consideration to seismic safety in allocation of funds for construction projects. jurisdiction or that affect its citizens or local businesses. AB 204 (Cortese) 1991 Created a model, minimum Palo Alto can reference the codes that resulted URM building code for the retrofit of buildings with brick-bearing from this law as input walls.regarding methods for URM retrofit. AB 908 (Farr)1991 Specified that liquefaction and Palo Alto complies with General Plan Chapter 823, Statutes of 1992other seismic hazards are geologic hazards to be addressed in the safety element of a general plan. this requirement through its 2008 General Plan. 32 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 182     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update AB 43 (Floyd)1991 Excluded seismic retrofit improvements to hazardous buildings from property-tax reassessments. Palo Alto building owners who invest in retrofits can file paperwork to obtain relief from any property tax assessment increases that might result. This law provides a modest Tax Policy Chapter 8, Statutes of 1991 incentive to invest in retrofits (by removing any new tax obligations that might arise) but the downside is these investments do not increase the local tax base. Emergency Room Mandates 1991 Established seismic safety Palo Alto may have health Hospitals facilities subject to this Health & Safety Code § 1226.5standards for ambulatory surgical centers; requires fixed policy. medical equipment (floor roof or wall mounted) to be installed using services of licensed architect or structural engineer; and requires inspection every five years. 33 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 183     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update SB 597 (Alquist) 1992 Required the state architect to Although outdated, this Concrete Chapter 1079, Statutes of 1992develop seismic retrofit law provides background guidance on theguidelines and standards for certain buildings enclosing importance and potential more than 20,000 square feet pathways to retrofitting of floor area with concrete or reinforced masonry column construction. this particular high risk category of large commercial structures. Palo Alto may have qualifying structures in its jurisdiction. SB 119 (Hart)1992 Enacted the Higher Education Palo Alto may have Public Buildings Universities Chapter 13, Statutes of 1992Facilities Bond Act of June 1992 and required five-year capital outlay plans at colleges and universities to include a schedule that prioritized the seismic retrofitting needed to significantly reduce seismic hazards. relevant facilities within its and jurisdiction. Seismic Retrofit 1996 Authorized $2 billion for Palo Alto may have relevant facilities within its jurisdiction. Bridges Bond Act (California Proposition 192) seismic retrofitting, including $650 million for seismic retrofitting of toll bridges. 34 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 184     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Highway Safety, 2006 Essential Facility Seismic Palo Alto may have been affected by some of the projects resulting from this law, though the budget is now exhausted. Bridges and Roads Proposition 1B, Government Code §8879.23(i) Traffic Safety Program. Provided $125 million funding for seismic retrofit work on local bridges, ramps, and Reduction, Air Quality, and Port Security Bond Act overpasses; established Local Bridge Seismic Retrofit Account. General Obligation Bonds A city or a city and county may Palo Alto may issue bonds Financing Government Code Section 43600-43638 incur indebtedness pursuant for seismic strengthening of unreinforced buildings and other buildings. Proceeds of to create funds for use in loan programs to cover seismic retrofit costs for publically- or privately- bonds authorized pursuant to owned buildings as long as this section may be used to make loans to public entities or owners of private buildings. Required the California Earthquake Authority to establish, in the operational it can justify the public purpose of the work. AB 964 (Aroner)CEA has broad authority to spend ELMF funds on physical mitigation Small Residential Chapter 715, Statutes of 1999 rules of the Earthquake Loss improvements related to Mitigation Fund, a plan for the 1-4 unit dwellings. expedited expansion of the residential retrofit program statewide. Currently Palo Alto is not in the program but it could apply to be part of a future pilot phase. 35 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 185     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Automatic Gas Shut Off Valves Authorized local governments Palo Alto does not require to adopt ordinances requiring gas shut off valves but Utilities Health and Safety Code §§19180-83 & §§19200-05 installation of earthquake sensitive gas shutoff devices in buildings; allowed Division of the State Architect to could do so. establish a certification procedure for installation. AB 3249 (Katz)Required private schools constructed after July 1, 1987 relevant schools in its Palo Alto may have Private Schools Chapter 439, Statutes of 1986 to have plans that meet applicable code standards. Required their plans to be reviewed by a structural engineer, and that the project’s design professionals periodically review the construction. jurisdiction, and their status is unknown. The City of San Francisco identified earthquake vulnerability of private schools as a major public concern and recently passed a mandatory evaluation ordinance. 36 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 186     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update AB 2959 (Klehs)Required the Seismic Safety Commission to develop, adopt, and publish a This pamphlet is regularly exchanged from seller to buyer in smaller Education Chapter 1499, Statutes of 1990 Homeowner’s Guide to Earthquake Preparedness by January 1, 1992 (SSC 97-01) residential real estate transactions, as and by state law, doing so meets disclosure requirements. Palo Alto currently provides a link to this document on the Building Inspection website. There is high potential to improve this process so that homeowners pay attention the information in the pamphlet. AB 1968 (Areias) Required the Seismic Safety Commission to develop, adopt, and publish a Palo Alto property owners are required to provide this pamphlet to a buyer Education Recovery Chapter 859, Statutes of 1991 Commercial Property Owner’s at sale. Palo Alto currently Guide to Earthquake Safety for distribution to real estate licensees. provides a link to this document on the Building Inspection website. Natural Disaster Assistance Act Provided state financial assistance for recovery efforts for applying for these Palo Alto would be eligible Government Code §8680 to counties, cities and/or special districts after a state disaster has been proclaimed. funds following a local event. 37 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 187     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update AB 1890 (Cortese) Required new and replacement water heaters to required to have two Properties in Palo Alto are Utilities Chapter 951, Statutes of 1989 be braced and anchored.seismic straps on their water heater per CPC 508.2. Status of non- inspected older water heaters unknown. SB 1742 (L. Greene) Required local agencies to review the structural design and construction of certain bridges, and required the Caltrans director to establish a statewide priority list for retrofit projects based on these reviews. Palo Alto may have infrastructure subject to this policy. Bridges and Roads Chapter 1082, Statutes of 1990 ACR 96 (Perino)Requested the Seismic Safety Commission to study the problem of mobile-home bracing and make Resulting reports provide information relevant to planning effective mobile homes policies. Mobile Homes Resolution Chapter 99, Statutes of 1980 recommendations to the Department of Housing and Community Development for implementation. 38 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 188     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update AB 631 (Bradley) Required the Department of Housing and Community Development to adopt regulations governing the installation of earthquake- resistant bracing systems on manufactured homes or mobile homes. Palo Alto may have health Mobile Homes facilities subject to this policy. Chapter 304, Statutes of 1989 AB 958 (Areias)Directed the Seismic Safety Commission to administer a privately funded task force, with specified membership, to consider the development of seismic safety building guidelines for the use of state and local governmental agencies in evaluating Palo Alto may have relevant facilities within its cations jurisdiction. Telecommuni-Chapter 813, Statutes of 1991 applications for the construction of new cellular facilities. 39 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 189     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update California Earthquake Authority Created the California Earthquake Authority and authorized CEA to issues policies of basic earthquake insurance. Residential renters and owners of Palo Alto 1-4 unit properties are eligible to purchase policies through CEA. Rates of insurance uptake average about 10% statewide. The level of uptake in Palo Alto is not known but could be researched and potentially improved through Insurance Insurance Code §§ 10089.5 - 10089.54 educational programs or partnerships with CEA. Disaster Authorized and otherwise enabled cities, counties, and other entities to prepare in advance of a disaster for the expeditious and orderly This legislation sets out relevant authorities and guidance for effective pre- disaster emergency Recovery Government Code §8877.1Recovery Reconstruction Act management and recovery and reconstruction of the community or region; Includes plans and ordinances facilitating recovery and reconstruction and recovery planning. contingency plan of action and organization for short -term and long-term recovery and reconstruction to be instituted after a disaster. 40 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 190     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update Public School Tilt-Up Concrete Inventory Required the Department of General Services to conduct an inventory of public school buildings that are concrete tilt -up or have non-wood frame walls that do not meet Palo Alto may have relevant facilities within its jurisdiction. Concrete Education Code §17317 requirements of the 1976 UBC, by Dec. 31, 2001. SB 1122 (Alarcón) Required the Office of Emergency Services, in cooperation with the State Palo Alto could use this pamphlet or more recent versions in a public Education Chapter 294, Statutes of 1999 Department of Education, the education campaign in Department of General Services, and the Seismic Safety Commission, to develop an educational pamphlet for use by grades K- 14 personnel to identify and mitigate the risks posed by nonstructural earthquake hazards. coordination with local schools. 41 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 191     Appendix A -- Table of Historic California Earthquake Risk Reduction Legislation Type of Legislative Approach Year Targeted Use or Structure Type Status and Reference Statute or Code Relevance to Palo Alto Special ProgramsShort Title Description Program Update SB 577 (Rosenthal) Replaced references to earthquake sensitive or seismic gas shutoff valves with are contained in CPC the term earthquake sensitive 508.2. or seismic gas shutoff devices. Also revised the bracing Provisions for seismic strapping of water heaters requirements for water heaters to apply to all new and replacement water Chapter 152, Statutes of 1996Utilities heaters, and all existing residential water heaters; required any water heater to be secured in accordance with the California Plumbing Code. 42 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 192     APPENDIX B Table of Contemporary California Earthquake Risk Reduction Legislation Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 193     Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation Type of Legislative Approach*Sources: CSSC, 2009; LegInfo, 2016. Targeted Use or Structure Programs Status and Reference Statute or Code Relevance to Palo Alto SpecialShort Title Description Program Update Type AB 428 -- Income Taxes Credit: for Seismic Retrofits (Nazarian) This bill allows a tax credit in an amount equal to a specified percent of costs incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building. Requires certification from the If a future version is passed and funded, Palo Alto building owners -- on a first come first serve basis statewide -- could receive up to 30 percent tax credit on pre-approved Any Vetoed by Governor for financial reasons. appropriate jurisdiction with authority eligible seismic mitigation for building code enforcement that the building is an at-risk property. investments. 43 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 194     Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation Type of Legislative Approach*Sources: CSSC, 2009; LegInfo, 2016. Targeted Use or Structure Programs Status and Reference Statute or Code Relevance to Palo Alto SpecialShort Title Description Program Update Type SB 494 -- Seismic Safety and Earthquake-Related Programs (Hill) This bill creates the California Sponsored by Palo Alto’s Early Signed by Governor Earthquake Safety Fund. Upon appropriation by the Legislature, the moneys in the fund shall be used for District Assembly Member. If this program is funded, Palo Alto could advocate for local Warning October 2015 – System Chapter 799, Statutes of 2015 seismic safety and earthquake-related public and private sector programs, including the earthquake early warning system. The bill involvement in the state's Earthquake Early Warning authorizes the fund to accept federal System. funds, funds from revenue bonds, local funds, and funds from private sources for purposes of carrying out its provisions. This bill also requires the identification of funding of the earthquake early warning system to occur by July 1, 2016, and makes conforming changes. 44 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 195     Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation Type of Legislative Approach*Sources: CSSC, 2009; LegInfo, 2016. Targeted Use or Structure Programs Status and Reference Statute or Code Relevance to Palo Alto SpecialShort Title Description Program Update Type SB 1205 -- Commercial Requires an existing California Earthquake Risk Management Courses to develop or recommend educational be created within a few years Recommendations and Department of Insurance (CDI) board resources materials will likely Education Signed by Governor August 2014 – Chapter 252 (Monning)courses for agents and brokers on commercial earthquake risk management. that could assist Palo Alto in promoting greater awareness and action among commercial property agents and owners. SB 602 -- California Earthquake Authority: establish a state-wide program to Property Secured Mitigation Program (Monning) This bill would authorize the CEA to This bill would create the authority for another PACE- type funding mechanism that cities could use to offer loans to owners for seismic Small Residential Pending provide property assessment financing for seismic retrofits. mitigation work, to be paid off through higher property tax assessment over the course of 20 years. 45 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 196     Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation Type of Legislative Approach*Sources: CSSC, 2009; LegInfo, 2016. Targeted Use or Structure Programs Status and Reference Statute or Code Relevance to Palo Alto SpecialShort Title Description Program Update Type AB 1429 -- Earthquake This bill requires the CRMP to If passed and funded, grant funds might be made available to Palo Alto small multi-family residential buildings. Small Multifamily Pending Mitigation Retrofit Program: 5 to 10 implement a grant program that would give a grant to a qualifying Dwelling Units (Chui) applicant who owns a residential structure that contains between five and ten dwelling units to defray the owner’s cost of seismic retrofit work to the structure, as specified, if the Legislature appropriates funds for that purpose. AB 1440 -- Earthquake This bill requires the CRMP to If passed and funded, grant Small Residential Pending Mitigation Retrofit Program: Single- Family Residential implement a grant program and give a funds might be made grant to a qualifying owner of a single- available to Palo Alto small family residential structure to defray residential owners. Structures (Nazarian) the owner’s cost of seismic retrofit work to the structure, as specified, if the Legislature appropriates funds for that purpose. 46 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 197     Appendix B -- Table of Contemporary California Earthquake Risk Reduction Legislation Type of Legislative Approach*Sources: CSSC, 2009; LegInfo, 2016. Targeted Use or Structure Programs Status and Reference Statute or Code Relevance to Palo Alto SpecialShort Title Description Program Update Type SB 336 -- California Earthquake Authority: policyholders who have retrofitted Mitigation Discount (Roth) This bill provides that CEA If passed, Palo Alto Small Residential Pending homeowners that purchase earthquake insurance would have greater assurance that premium discounts for mitigation investments would not be reducible below five percent. their homes shall enjoy a premium discount or credit of “at least” five percent. AB 2181 -- Soft-Story Local Program Authorization Authorizes each city, city and county, There is no state law that Soft-Story Dead in 2014, never heard in committee.or county to require that owners assess the earthquake hazard of soft story residential buildings and older concrete residential buildings. Includes concrete residential buildings that were constructed prior to the adoption of local building codes that ensure ductility as potentially forbids such programs, but this law would have removed any ambiguity that such programs are permitted. hazardous if an earthquake occurs and to initiate programs to inform owners, residents and the public about such dangers. 47 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 198     APPENDIX C Table Describing Incentives Used in Local Earthquake Risk Reduction Programs Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 199     Appendix C. Table Describing Incentives Used in Local Earthquake Risk Reduction Programs. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns FINANCIAL TOOLS & INCENTIVES General Obligation or Special District Bonds Direct provision of funds This mechanism is Once passed, this type of funding can be distributed over time as provided for in the approved wording. Must be approved by two thirds of voters, which sets a high bar even if there is significant public support. Jurisdictions must administer the allocation of funds and have at times not been able to use all of it. Owner education about the provisions of the program is critical. Owners of highly leveraged buildings and buildings in depressed areas may be unable to meet prerequisite loan-to- value ratio criteria. Retrofits are generally not revenue- for qualifying retrofit work based on voter approval of issuance of new municipal or state debt to be repaid by taxation. commonly used for seismic improvements to infrastructure, but also has been used in URM building programs and for retrofit of historic properties. One URM example is the city of Long Beach, which offered 11.3% interest financing to participating members of a Special District created for URM building owners. generating improvements upon which financing can be leveraged. Grants Direct provision of funds CEA's Earthquake Brace & for qualifying retrofit work. Some sources exist for city-scale Limited sources exist. Programs Bolt program for single family homes. projects or privately-owned buildings, such as FEMA Pre- Disaster Mitigation Grants. can be difficult to manage administratively. Fairness concerns exist over which owners can benefit. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 200     Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Property-Assessed Financing Loans Also known as a San Francisco's PACE Provides an upfront way for Administratively complex for owners to access private capital both jurisdictions and owners. to afford retrofit projects. The Challenges include setting up loan can be paid off over time this complex financing through higher rents or at future instrument which has heavy Property Assessed Clean program. Energy (PACE) program, this works as a loan to an individual property owner, transferrable to future owners, where the upfront costs of qualifying work are repaid over a period of approximately 20 years through the owner's property tax sale, as well as being transferrable to future owners. involvement of third parties, barriers to owners that want to refinance, and barriers to the transfer of a PACE-financed properties to a new owner. Owners may not need it if affordable regular market capital is available. Lenders may resist allowing an additional lien. assessment. Tax Credits Waiver of a portion of a business, parcel, or income tax for a number California passed AB 428 in Although vetoed by the Governor, the legislature of outside the local jurisdiction, The funding source can be Owners would need to be aware of the credit and verify and depending on the clarity of program requirements, owners qualifying work and complete all follow up documentation. Mostly benefits owners already intending to retrofit and those with more financial and business sophistication. of years to encourage owners to retrofit. 2015, which would have offered up to 30% credit for can count on the funds as part qualifying retrofit costs. of planning their project. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 201     Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Real Estate Transfer Tax Rebates Building owners can This policy has existed in Berkeley since 1991 for residential dwellings up to four units and in San In Berkeley, the program was immediately popular and eventually highly influential in increasing support for other earthquake policies because it The jurisdiction forgoes tax revenue. Anecdotally in Berkeley, city officials had no easy way to assess the quality of work done. Some experts apply for a rebate of a fraction (usually 1/3, up to a cap) of the amount of the transfer tax owed Francisco since 2008 for to the city for a property properties worth $5 million touched so many community suspect that some of the funds at sale for any qualifying or more. seismic improvement expenditures made within a certain period before or after transfer of title. members and firmly established went to incomplete or a tone that the city takes seismic improperly done retrofits. risk seriously and will put its “money where its mouth is.” About half the single-family homes and one third of the smaller rental buildings in Berkeley have claimed the credit, leading to widespread community awareness of seismic safety issues. Waivers or Reductions of Full waivers, fixed, or Building Department Fees The Jurisdictions of San Francisco, Berkeley, and Alameda have offered flat or waived plan check fees as an incentive for owners to retrofit their buildings. Oakland currently offers a flat permit fee of $250 for owners of qualified single- family residences to Modestly reduces the cost of a retrofit project. Easy for city to implement. Perceived by owners as a significant gesture of good will by owners, who may feel it is "the least the city could do." This measure has direct loss of revenue implications for the jurisdiction. percentage-based reductions of building permit fee reductions. perform seismic retrofits. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 202     Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Pass Through of Retrofit Costs to Tenants For residential properties in Berkeley is 100% pass- through, San Francisco is 50%, and Oakland is %75. Perceived as fair by owners because tenants that benefit most from the retrofit work pay with the added costs, although Tenants with fixed or low incomes might suffer hardship jurisdictions with rent control laws in place, owners who seismically retrofit their buildings could be allowed to pass through all or a fraction the costs of these a share of it. Owners can use this anticipated source of revenue as a basis for securing a loan. hardship provisions can lessen those effects. retrofits to renters in rent-controlled units, amortized over a particular time period such as 10 years. Special District or Historic Designation Tax Reductions Creation of Mello-Roos, Mills Act, historic or other special districts that are then eligible for Mello-Roos funding. special loans, grants, or tax credits. For URM buildings, the jurisdictions of St. Helena and West Hollywood used Provides a clear way for a local jurisdiction to provide direct funding or special financing rates for privately-owned vulnerable properties. Can be difficult for jurisdictions to initiate and carry out. Owners must join the special district at the outset or will be left out of future funding availability. POLICY INCENTIVES Density or Intensity Bonuses Specific increases in the maximum allowable building density or intensity to help offset the added costs of seismic upgrades. Palo Alto’s Floor Area Ratio bonus program. Owners that invest in a retrofit can expand their projects in order to increase future revenue. Typically, feasible only in areas of high growth. Sometimes controversial because of potential community impacts such as increased traffic, parking needs, and rental rates. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 203     Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Exemptions for Non- Conformities Relief from timelines or waivers of required work such as fire resistance upgrades and sprinklers, Title 24 energy analysis and upgrades, parking, setback or other current code measures that would otherwise be triggered by the size of the project being None identified.Offering relief from what may be expensive rehabilitation of nonconforming uses can make seismic retrofits easier to design and more affordable. May be viewed as an excessive concession to owners among some members of the public. undertaken for projects involving qualifying retrofit work. Zoning Incentives Specific concessions Since 1986, Palo Alto Useful when bond financing regarding encroachment allowed owners of included options are prohibitively costly Similarly-situated properties must be treated alike so as to avoid claims of "spot zoning." Citizens may object to special into setbacks, increased allowable floor/area ratios (FAR), height buildings in the downtown area to expand the floor area if the owner or not much more attractive than private credit terms. Most likely to work when zoning plans treatment for work that could limits, or onsite parking requirements to help offset the added costs of also exempted from onsite performed seismic upgrades. Buildings were in the community generally call for limited to no growth. Costs to the city are mainly in the form of technical and design cost review of proposed projects. be seen as essential anyhow. Not likely to work in locations with little development pressure or where the community favors growth. seismic upgrades.parking requirements and fees for offsite parking. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 204     Appendix C. Incentives, continued. Type of Incentive Description Examples of Use Advantages Costs, Issues or Concerns Condominium Conversion Assistance Process expediting for condo conversion for properties that None identified.In jurisdictions where condo conversation rates are capped or allocated by lottery, offering May negatively impact other housing affordability goals. Only available to owners that can seismically retrofit.priority to buildings that retrofit afford it, unless accompanied by could be an effective tool to promote seismic upgrading of multifamily buildings. other assistance programs. Exemption from Future Retrofit Requirements Relief from imposition of The City of Berkeley offered This can motivate owners to The jurisdiction could not easily impose new regulation on exempted properties, even if future retrofit requirements for a certain period following a 15-year exemption from future retrofit requirements rather than later in order to for soft-story wood frame complete retrofit work sooner reduce uncertainty about future such policies became warranted completion of qualifying properties that did a retrofit city policies, and allows owners by new technologies or knowledge.seismic work.concurrent with its mandatory evaluation program. to better anticipate business expenses over a longer term. Transfer of Development TDR allow owners to Rights (TDR) transfer unused Very commonly used for historic preservation, Useful when the use of the building in question is not likely to generate added value to justify the costs of the retrofit work. This is most useful when retrofit costs can be particularly high and there are natural or regulatory use restrictions. Careful analysis of construction costs is necessary to avoid situations of under- or over- compensation. development rights that including in Palo Alto. are comparable to the value of the retrofit to another site. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 205     Appendix C. Incentives, continued. Type of Incentive Expedited Permits, Inspections, and Reviews expediting, or bypassing anecdotally stated that this time and hassle for owners in Description Examples of Use Advantages Costs, Issues or Concerns Prioritization,Several Bay Area cities have This can relieve the burden of Requires flexibility on the part of city staff and plan check of certain internal is their internal policy, but no official records of such were identified. getting permits and inspections, consultants. protocols for over the counter permits and inspection processes for projects involving which are a significant source of cost and uncertainty for owners during retrofit projects. seismic retrofit work. Technical Assistance Case-management style assistance for owners Cities such as Berkeley have Knowledgeable staff can help Labor costs to the city for found it necessary to owners navigate complex issues additional staff. Difficulty and/or engineers during maintain additional staff to the process of obtaining operate their mitigation such as investigating and applying for incentives (if offered), following guidelines, or sustaining project funding and staff continuity over time. financing, complying,programs. A significant permitting, and carrying portion of their staff time is addressing the necessary out retrofit projects. This devoted to owner and standards. is different than engineer consultation. engineering advice about how to resolve specific technical issues of design. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 206     APPENDIX D Options for Moving to a Comprehensive, Resilience Approach Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 207     Appendix D. Options for Moving Towards a Comprehensive Resilience Approach Palo Alto’s current earthquake policy development effort is led by the Building Division and focused on physical upgrade or retrofitting of privately-owned existing structures. In other words, it deals with pre-disaster physical aspects of earthquake vulnerabilities in the current building stock and the kinds of ordinances, code adjustments, and initiatives that could be undertaken to reduce the risks posed by those buildings. Other City of Palo Alto efforts to address earthquake risks and impacts more broadly are the responsibility for instance of the Office of Emergency Services, Fire, Public Works, and Planning departments. These activities are relevant to the present effort because its recommendations are intended to be well-informed by and linked to other related ongoing jurisdictional activities. In the future, Palo Alto has options for broadening the scope of its mitigation efforts. For instance, the City could consider developing a formal Building Occupancy and Resumption Program (BORP) as did San Francisco. It could also investigate creating special programs or requirements for key infrastructure such as cell phone towers, vulnerable building features such as facades, or important building uses such as publicly-owned buildings, private schools, places of worship and large assembly, or post-earthquake shelter facilities. These types of programs aim to create a more comprehensive, integrated approach that places earthquake mitigation within the overall context of community resilience. Jurisdictions can promote comprehensiveness in different ways. Four potential pathways that Palo Alto could pursue, as well as examples of jurisdictional models, are briefly introduced below. Address More Phases of the Disaster Cycle One useful way to think about public policy related to earthquakes is to consider the “Disaster Cycle” (see Figure 1). Some activities primarily take place before an event (e.g., hazard assessment, building code adoption and enforcement, public education campaigns) while others focus on things that happen during a crisis (e.g., emergency response, building re-occupancy inspections). After an event, jurisdictions may operate both short and long term programs as part of managing the overall recovery process (e.g., temporary housing and business resumption efforts). The cycle begins again as cities attempt to learn from the past to better inform plans and programs for the future. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 208     Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. Figure 1. Diagram of the Disaster Cycle and examples of local level programs that address different phases. Actions in all of these of phases contribute to the overall community goal of resilience. Many different definitions exist for this term, but for the purposes of this report it can be summarized as the local capacity to be effectively protected from, respond quickly to, and recover as completely as possible in long-term from chronic stresses as well as acute shocks, one of which are earthquakes. In some sense, all communities want to avoid, survive, and thrive as best they can in the midst of many current and potential challenges and threats. Integrate Earthquake Efforts into Multi-Hazard Planning and Programs Another way to address disaster resilience more broadly is to create plans and programs that simultaneously address a large suite of physical threats. Many preparedness, mitigation, response and recovery activities are similar for different types of disasters, from floods to blast to bioterrorism to earthquakes. FEMA and many jurisdictions have embraced the concept of multi-hazard planning in order to achieve potential synergies and savings through coordination, cross-functionality, eliminating redundancies, and improved communication. The two main federal programs for local jurisdictions that relate to this –the Local Hazard Mitigation Plan process and FEMA Pre-Disaster Mitigation Grants –were described in the Task 2 report. Palo Alto could launch an effort Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 209     Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. to evaluate opportunities for leveraging and increasing alignment of its earthquake programming with other multi-hazard mitigation efforts. Create Linkages with Sustainability, Energy and Climate Adaptation Issues Not all environmental threats to resilience are quick to arrive. Yet another dimension Palo Alto could build connections between its disaster mitigation efforts and issues of sustainability, environmental health, green tech, and climate change adaptation. The interrelationships among these issues are clear. Modification of both physical and social practices related to environmental trends could potentially enhance or work against disaster preparedness, depending on how wisely such changes ae managed. Debris and demolition following earthquakes can be a major environmental concern, with significant greenhouse gas and carbon footprint implications. Research engineers are actively working on ways to estimate the carbon implications of debris from demolished structures after an earthquake, such as through the FEMA P-58 methodology. Expand Scope to Address Overall Community Resilience Social, cultural, and economic vulnerabilities and social justice and equity concerns are clearly outside the scope of the present effort. However, it would be remiss to provide Palo Alto guidance about development of new programs for earthquake mitigation without mentioning that many leading cities have moved towards nesting their earthquake resilience activities within very broad, longer term overall community resilience assessment, planning, and programming initiatives. The connection between overall community resilience and earthquake program effectiveness is now firmly established, as exampled by a proliferation of initiatives briefly described below. The ideological and programmatic shift to the concept of community resilience broadly defined was accelerated by a large infusion of money, technical assistance, and outreach from the Rockefeller Foundation’s 100 Resilient Cities initiative (100RC1) in 2012. This ground breaking effort involved three rounds of applications from which 66 cities so far worldwide have been selected. San Francisco, Berkeley, Oakland, and Los Angeles were selected in the first round. Rockefeller Resilient Cities were chosen because they already were comprehensive leading cities in terms of their resilience efforts. Palo Alto applied to the program but was not selected. A core feature of the 100RC membership is funding to pay the salary of a Chief Resilience Officer for two years. Patrick Otellini of San Francisco had the honor of being the first Chief Resilience Officer (CRO) in the world. The two other main benefits of the 1 http://www.100resilientcities.org/ (Accessed January 11, 2016). Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 210     Appendix D. Options for Moving Towards a Comprehensive Resilience Approach, continued. program are access to an online resilience platform and information repository and increased connectedness with a network of other 100RC cities and their CROs. Other significant federal and regional resources are being devoted to helping local jurisdictions promote overall community resilience. Many useful technical guides and potential partners for Palo Alto exist. Important national groups include the National Institutes of Building Sciences Community Resilience Initiative, which has produced a comprehensive resilience planning guide for cities (NIST, 2015), and the Community Regional Resilience Institute (CARRI).2 On the local level, the San Francisco Planning and Urban Research organization through its Resilient City initiative has conducted a series of collaborative planning efforts and resulting reports that address building performance goals, recovery strategy, and tactical recommendations for San Francisco in pursuing a specific set of resilience goals (SPUR, 2008). An example recovery objective SPUR endorsed is to have 95% of San Francisco residents able to shelter-in-place following a major event (SPUR, 2011). Additionally, ABAG has recently created a resilience policy tracking database, searchable 3and available online, and the Los Angeles Community Disaster Resilience project offers4 a well-documented model of multi-issue regional coordinated effort. 2 3 4 Information available at: http://www.resilientus.org/ (Accessed February 25, 2016). Available at: http://abag.ca.gov/resilience/policies.html (Accessed February 25, 2016). Information available at: http://www.laresilience.org/ (Accessed February 25, 2016). Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 211     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 212     APPENDIX E Retrofit Concept Designs for 12 Prototype Buildings Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 213     Building 1 – Wood Light Frame (W1) 2-story, 5,320 sq.ft, 1960, 4 unit multi-family (RES3B-3D), one unit on ground floor, three on second floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (2) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 214     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 215     Building 2 – Multi-Story, Multi-Unit Wood-Frame Residential (W1A) 2-story, 9,500 sq.ft, 1960, 10 unit multi-family (COM 3C-3F), 2 units on ground floor 8 on second floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (2) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 216     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 217     Building 3 – Multi-Story, Multi-Unit Wood-Frame Residential (W1A) 3-story, 30,000 sq.ft, 1960, 34 unit multi-family (COM 3C-3F), 4 units on ground floor, partial parking on ground floor Conventional framing, no plywood shearwalls, post and beam framing and open front in garage Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in garage area 2. Install new moment frames (4) to balance open front (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade at moment frame 3. Remove and replace drywall along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 218     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 219     Building 4 – Commercial and Industrial Wood Frame (W2) 2-story, 12,000 sq.ft, 1960, commercial ground floor retail, second floor office (COM1, COM2, COM3, COM4, COM7, COM8) Conventional framing, no plywood shearwalls, post and beam interior framing, open front at ground floor Retrofit Basis of Design: IEBC A4 Structural Retrofit Elements 1. Install plywood sheathing, hold downs and anchor bolts on existing walls in retail area 2. Install new moment frames (3) in weak direction (w/ new footing). Use W12x50 beam and W14x68 columns. 3. Install new collector along moment frame line Collateral Impacts 1. Remove and replace drywall at shear walls 2. Remove and replace slab on grade and flooring at moment frame 3. Remove and replace drywall along moment frame collector 4. Remove and replace casework in retail space 5. Re-route SS drain locally 6. Re-route water line locally 7. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 220     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 221     Building 5 – Steel Moment Frame (S1) 2-story, 43,900 sq.ft, commercial office suites (COM1-COM10, IND1-IND6) Two-bay perimeter moment frames, steel gravity framing, concrete fill over metal deck floor and roof, Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install braces in existing moment frame bays. Use HSS6x6x1/2 braces at top story and HSS8x8x1/2 braces at first story 2. Enlarge pile caps and install new micropiles at braced frames (8 at each story) 3. Improve collectors at some braced frame lines Collateral Impacts 1. Remove and replace suspended ceiling at braced frame bays 2. Remove furring wall at braced frame bays 3. Chip down concrete fill locally in brace frame bays 4. Remove and replace slab on grade and flooring at new foundations 5. Remove and replace suspended ceiling along new frame collector 6. Re-route SS drain locally 7. Re-route water line locally 8. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 222     NOTE: GRAVITY BEAMS NOT SHOWN FOR CLARITY Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 223     Building 6 – Concrete Shear Wall (C2) 1-story, 5,000 sq.ft, 1920, commercial retail (COM1-COM10, IND1-IND6) Concrete perimeter walls, post and beam interior framing, wood roof diaphragm sheathing, open front Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new plywood sheathing over existing roof sheathing 3. Install new moment frames (2) in weak direction (w/ new footings). Use W12x50 beam and W14x68 columns. 4. Install new collector along moment frame lines Collateral Impacts 1. Remove and replace ceiling along concrete walls 2. Remove and replace slab on grade and flooring at moment frame 3. Remove and replace ceiling along moment frame collector 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally 7. Remove and replace roofing Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 224     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 225     Building 7 – Concrete Shear Wall (C2) 2-story, 17,280 sq.ft, 1960, commercial ground floor retail, second floor office (COM1-COM10, IND1-IND6) Concrete perimeter walls, flat plate floor and roof framing, tall first story Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install FRP column wrap at discontinuous wall2. Install new collectors below 2nd floor and roof slab 3. Install additional shear walls (w/ new foundation), 3 bays at each story 4. Shore slab adjacent to walls Collateral Impacts 1. Remove and replace drywall at columns to be wrapped 2. Remove and replace storefront locally at columns to be wrapped 3. Remove and replace slab on grade and flooring at new shear walls 4. Remove and replace ceiling along new collectors 5. Remove and replace furring walls at new shear walls 6. Re-route SS drain multiple locations 7. Re-route water line multiple locations 8. Re-route electrical multiple locations Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 226     (N) CONC. SHEAR WALL W/ GRADE BEAM AND MICROPILES, TYP., SEE 33 (N) COLLECTORS BELOW 2ND AND ROOF, TYP., SEE 34 (E) PILE CAP, TYP. Foundation/Roof/ Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 227     Building 8 – Tilt-up Concrete Shear Walls (PC1) 1-story, 20,000 sq.ft, 1960, commercial office/warehouse Precast concrete perimeter wall panels, post and beam interior framing, wood roof diaphragm sheathing, building has reentrant corner Retrofit standard: IEBC A2 Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new plywood roof sheathing around perimeter bay 3. Install new subpurlin continuity ties 4. Install new collectors at reentrant corner Collateral Impacts 1. Remove and replace ceiling along perimeter 2. Remove and replace roofing 3. Re-route SS drain locally 4. Re-route water line locally 5. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 228     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 229     Building 9 – Tilt-up Concrete Shear Walls (PC1) 2-story, 46,400 sq.ft, 1960, commercial office/warehouse Precast concrete perimeter wall panels, concrete fill on metal deck at second floor with steel framing and steel columns below, wood roof sheathing with wood beam and girder framing and steel columns below. Retrofit standard: IEBC A2 Structural Retrofit Elements 1. Install floor-to-wall anchors 2. Install roof-to-wall anchors 3. Install new plywood roof sheathing around perimeter bay 4. Install new subpurlin continuity ties at roof 5. Improve girder connection capacity at roof Collateral Impacts 1. Remove and replace ceiling along perimeter on both floors 2. Remove and replace roofing 3. Re-route SS drain locally 4. Re-route water line locally 5. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 230     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 231     Building 10 – Reinforced Masonry Bearing Wall (RM1) 1-story, 2,750 sq.ft, 1950, commercial retail (COM1-COM5, COM8, IND1-IND6) CMU perimeter walls (3 sides), post and beam interior framing, wood roof sheathing, tall story, open front. Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install roof-to-wall anchors 2. Install new purlin and joist continuity ties 3. Install new plywood roof sheathing 4. Install new steel braced frame to balance open front (w/ new footings). Use W24x76 beam, W12x96 columns, and HSS6x6x1/2 braces. 5. Install new collector at braced frame 6. Install new supplemental girder supports (on new footings) Collateral Impacts 1. Remove and replace ceiling along perimeter 2. Remove and replace slab on grade and flooring at braced frame 3. Remove and replace roofing 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 232     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 233     Building 11 – Reinforced Masonry Bearing Wall (RM1) 2-story, 12,000 sq.ft, commercial office suites (RES 3D-3F, RES4, RES5, RES6, COM1-COM9, IND1- IND6) CMU perimeter walls (3 sides), post and beam interior framing, wood floor and roof sheathing, window wall on street side Retrofit Basis of Design: ASCE 41, BPOE Structural Retrofit Elements 1. Install floor-to-wall anchors 2. Install roof-to-wall anchors 3. Install new purlin continuity ties 4. Install collector to existing masonry wall at roof and second floor 5. Install new plywood roof sheathing 6. Install plywood shear walls perpendicular to open front to break up diaphragm (w/ new grade beams) Collateral Impacts 1. Remove and replace ceiling along perimeter at both floors 2. Remove and replace slab on grade and flooring at shear walls 3. Remove and replace roofing 4. Re-route SS drain locally 5. Re-route water line locally 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 234     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 235     Building 12 – Unreinforced Masonry Bearing Wall (URM) 1-story, 5,000 sq.ft, retail/assembly (COM1, COM2, COM3, COM4, COM5, COM8) URM perimeter walls (3 sides), wood post and beam interior framing with joists (flat roof) or trusses (pitched roof), wood roof sheathing, window wall on street side Retrofit Basis of Design: IEBC A1 Structural Retrofit Elements 1. Roof-to-wall ties 2. Supplemental girder support 3. Install new moment frame at open front and additional frame at interior (2 total w/ footings). Use W12x50 beam and W14x68 columns. 4. Install new collector along moment frame line 5. Parapet bracing 6. Install new plywood roof sheathing Collateral Impacts 1. Remove and replace ceiling along masonry walls 2. Remove and replace furring wall locally at supplemental supports 3. Remove and replace flooring and slab on grade at moment frame 4. Remove and replace ceiling 5. Remove and replace roofing 6. Re-route electrical locally Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 236     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 237     Typical Retrofit Details Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 238     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 239     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 240     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 241     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 242     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 243     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 244     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 245     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 246     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 247     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 248     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 249     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 250     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 251     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 252     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 253     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 254     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 255     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 256     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 257     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 258     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 259     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 260     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 261     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 262     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 263     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 264     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 265     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 266     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 267     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 268     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 269     Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 270     APPENDIX F Retrofit Cost Estimates for 12 Prototype Buildings Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 271     City of Palo Alto - Seismic Risk Mitigation Replacement and Retrofit Cost Date: May 9, 2016 & revised on November 9, 2016 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 272     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Proposed Hazus Default Full Replacement Cost Models Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 273     Proposed Hazus Default Full Replacement Cost Models Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Demo & Minimal Sitework (5' around Bldg.) Average $/SF of Replaced Bldg. w/ Soft Costs - 2016 Average $/SF Cost of New Bldg. - 2016 Costs Average $/SF of Replaced Bldg. - 2016 Cost Average $/SFHazus Occupancy Class Soft Cost Premium2 Retrofit $/SF 2016 Soft Cost of Retrofit w/Definition RatioPremium2Soft Costs - 2016 Cost$/SF Cost $263 $233 RES3A RES3B RES3C RES3D RES3E RES3F RES4 RES5 RES6 COM1 COM2 COM3 COM4 COM5 COM6 COM7 COM8 COM9 COM10 IND1 IND2 IND3 IND4 IND5 IND6 REL1 AGR1 GOV1 GOV2 EDU1 EDU2 Multi Family Dwelling – duplex Multi Family Dwelling – triplex/quad Multi Family Dwelling – 5-9 units Multi Family Dwelling – 10-19 units Multi Family Dwelling – 20-49 units Multi Family Dwelling – 50+ units Temp. Lodging Institutional Dormitory Nursing Home Retail Trade $201 $177 $318 $299 $327 $308 $335 $401 $400 $241 $208 $253 $359 $442 $595 $354 $334 $261 $112 $199 $162 $334 $334 $366 $169 $185 $245 $235 $414 $292 $349 $17.50 $17.50 $17.50 $17.50 $17.50 $17.50 $17.50 $25.00 $25.00 $17.50 $17.50 $17.50 $17.50 $25.00 $35.00 $17.50 $25.00 $25.00 $17.50 $17.50 $17.50 $17.50 $17.50 $17.50 $17.50 $25.00 $17.50 $17.50 $25.00 $25.00 $25.00 $219 $195 $335 $316 $344 $325 $353 $426 $425 $258 $225 $270 $377 $467 $630 $371 $359 $286 $129 $216 $180 $352 $352 $384 $186 $210 $263 $253 $439 $317 $374 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 35% 35% 35% 35% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 35% 35% 35% 35% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $402 $380 $413 $390 $424 $511 $510 $310 $270 $324 $452 $560 $756 $445 $431 $343 $155 $260 $216 $422 $422 $461 $224 $252 $315 $341 $593 $428 $505 Wholesale Trade Personal and Repair Services Professional/ Technical/Business Service Banks Hospital Medical Office/Clinic Entertainment & Recreation Theaters Parking Heavy Light Food/Drugs/Chemicals Metals/Minerals Processing High Technology Construction Church Agriculture General Services Emergency Response Schools/Libraries Colleges/Universities Notes: 1. RS Means average cost includes location factors to adjust national average to Palo Alto of 15% for residential and 11% for commercial. 2. Soft costs include architect and engineer design fees, testing and inspection, utility connection fee, permits, and an allowance for owner change order contingency. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 274     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Detailed Estimate Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 275     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP UNIT TOTAL COSTDESCRIPTIONQTYUNITCREW/ UNIT COST MATL EQUIP SUB LABOR MATL SUB DIRECT COST Building 1 - Wood Light Frame (RES 3B -3D)5,320 SF, 2 story Structural upgrade - See detail 1 LS $0.00 $86.89 $0.00 $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 250.00 0.00 400.00 0.00 0.00 31,100.00 0.00 $0 $0 $0 $0 $31,100 $0 $31,100 $31,100.00 $524.39 $0.00 $31,100 Remover & replace drywall at shear wall area Remover & replace SOG - see detail Remover & replace drywall at moment frame & collector Allowance to reroute SS Drain 5 LOC 2.000 carp 0.000 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 $869 $0 $1,250 $0 $2,119 $0 $2,622 $00.00 0.00 $0 $0 2 LOC 2 LS 2 LS 2 LS 2 LS 4.000 carp $695 $0 $800 $0 $100 $0 $0 $1,595 $500 $989.77 $250.00 $150.00 $500.00 $350.00 $0.00 $1,980 $500250.00 150.00 500.00 350.00 0.00 $500 $300 $1,000 $700 $0 Allowance to reroute water line 0.00 $0 $0 $0 $300 $300 Allowance to reroute electrical 0.00 $0 $0 $0 $1,000 $700 $1,000 $700Paint and patch - final clean-up 0.00 $0 $0 $0 0.00 $0 $0 $0 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 38,201 49,662 $0 $0 $0 $11,460 $11,460 $38,201 $49,662 $11,460 $12,415 Total Construction Cost of: Building 1 - Wood Light Frame (RES 3B -3D)5,320 SF $1,564 $2,050 $100 $45,060 $48,774 $11.67 $62,100 Building 2 - Multi Unit Wood Frame (COM 3C -3F)9,500 SF, 2 story Structural upgrade - See detail 1 LS $0.00 $86.89 $0.00 $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 250.00 0.00 600.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 55,400.00 0.00 $0 $695 $0 $0 $1,000 $0 $0 $0 $55,400 $0 $55,400 $1,695 $0 $55,400.00 $524.39 $0.00 $1,455.16 $750.00 $500.00 $1,500.00 $1,000.00 $0.00 $55,400 $2,098 $0 $2,910 $750 Remover & replace drywall at shear wall area Remover & replace SOG - see detail Remover & replace drywall at moment frame & collector Allowance to reroute SS Drain 4 LOC 2.000 carp 0.000 0.00 0.00 $0 $0 2 LOC 1 LS 1 LS 1 LS 1 LS 6.000 carp $1,043 $0 $1,200 $0 $100 $0 $0 $2,343 $750750.00 500.00 1,500.00 1,000.00 0.00 $750 $500 $1,500 $1,000 $0 Allowance to reroute water line 0.00 $0 $0 $0 $500 $500 Allowance to reroute electrical 0.00 $0 $0 $0 $1,500 $1,000 $0 $1,500 $1,000 $0 Paint and patch - final clean-up 0.00 $0 $0 $0 0.00 $0 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 64,158 83,405 $0 $0 $0 $19,247 $19,247 $64,158 $83,405 $19,247 $20,851 Total Construction Cost of: Building 2 - Multi Unit Wood Frame (COM 3C -3F)9,500 SF $1,738 $2,200 $100 $78,397 $82,435 $10.98 $104,300 Building 3 - Multi Story & Multi Unit Wood Frame (COM 3C -3F)30,000 SF, 3 Story Structural upgrade - See detail 1 LS $0.00 $86.89 $86.89 $0.00 $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 250.00 600.00 0.00 600.00 0.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 85,300.00 0.00 $0 $695 $1,738 $0 $0 $1,000 $3,000 $0 $0 $0 $85,300 $0 $85,300 $1,695 $4,738 $0 $85,300.00 $524.39 $1,166.77 $0.00 $1,455.16 $250.00 $150.00 $500.00 $350.00 $0.00 $85,300 $2,098 $5,834 $0 $11,641 $1,000 $600 Remover & replace drywall at shear wall area, back wall Remover & replace drywall at shear wall area, side wall Remover & replace SOG - see detail Remover & replace drywall at moment frame & collector Allowance to reroute SS Drain 4 LOC 5 LOC 2.000 carp 4.000 carp 0.000 0.00 $0 $0 0.00 0.00 $0 $0 8 LOC 4 LS 4 LS 4 LS 4 LS 6.000 carp $4,171 $0 $4,800 $0 $400 $0 $0 $9,371 $1,000 $600 250.00 150.00 500.00 350.00 0.00 $1,000 $600 $2,000 $1,400 $0 Allowance to reroute water line 0.00 $0 $0 $0 Allowance to reroute electrical 0.00 $0 $0 $0 $2,000 $1,400 $0 $2,000 $1,400 $0 Paint and patch - final clean-up 0.00 $0 $0 $0 0.00 $0 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 109,873 142,834 $0 $0 $0 $32,962 $32,962 $109,873 $142,834 $32,962 $35,709 Total Construction Cost of: Building 3 - Multi Story & Multi Unit Wood Frame (COM 3C -3F)30,000 SF $6,604 $8,800 $400 $123,262 $139,065 $5.95 $178,500 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 5 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 276     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP UNIT TOTAL COSTDESCRIPTIONQTYUNITCREW/ UNIT COST MATL EQUIP SUB LABOR MATL SUB DIRECT COST Building 4 - Commercial and Industrial Wood Frame (COM 1, COM 2, COM 3, COM 4, COM 7, COM 8) Structural upgrade - See detail 10,000 SF, 2 Story 1 LS $0.00 $86.89 $86.89 $0.00 $86.89 $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 59,100.00 0.00 $0 $0 $0 $0 $59,100 $0 $59,100 $59,100.00 $524.39 $2,097.54 $0.00 $1,861.54 $576.77 $250.00 $150.00 $1,000.00 $1,500.00 $0.00 $59,100 Remover & replace drywall at shear wall area, side wall Remover & replace drywall at shear wall area, back wall Remover & replace SOG - see detail Remover & replace drywall at moment frame & collector Remover & replace casework on first floor Allowance to reroute SS Drain 8 LOC 2 LOC 2.000 carp 250.00 1,000.00 0.00 750.00 100.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1,390 $1,390 $0 $2,000 $2,000 $0 $3,390 $3,390 $0 $4,195 $4,195 $0 $7,446 $1,730 $1,000 $600 $4,000 $3,000 $0 8.000 carp 0.000 0.00 $0 $0 0.00 0.00 $0 $0 4 LOC 3 LOC 4 LS 8.000 carp 4.000 carp $2,780 $1,043 $0 $3,000 $300 $0 $200 $0 $0 $5,980 $1,343 $1,000 $600 0.00 $0 250.00 150.00 1,000.00 1,500.00 0.00 $0 $1,000 $600 $4,000 $3,000 $0 Allowance to reroute water line 4 LS 0.00 $0 $0 $0 Allowance to reroute electrical 4 LS 0.00 $0 $0 $0 $4,000 $3,000 $0 Paint and patch, floors - final clean-up 2 LS 0.00 $0 $0 $0 0.00 $0 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 85,267 110,847 $0 $0 $0 $25,580 $25,580 $85,267 $110,847 $25,580 $27,712 Total Construction Cost of: Building 4 - Commercial and Industrial Wood Frame (COM 1, COM 2, COM 3, COM 4, COM 7, COM 8)10,000 SF $6,604 $7,300 $200 $93,280 $107,384 $13.86 $138,600 Building 5 - Steel Moment Frame (COM 1 - COM 10, IND 1 - IND 6) Structural upgrade - See detail 43,900 SF, 2 Story 1 LS $0.00 $86.89 $86.89 $60.77 0.00 400.00 600.00 50.00 0.00 100.00 0.00 221,600.0 0.00 $0 $5,561 $5,561 $1,945 $0 $3,200 $4,800 $400 $0 $800 $0 $221,600 $221,600 $221,600.00 $221,600 $12,060 $13,004 $3,983 Remover & replace suspended ceiling at braced frame bays - both floors Remover furring walls at braced frame bays, both floors Chip down concrete fill locally in braced frame bays, both floors 8 LOC 8.000 carp 8.000 carp 4.000 clab $0 $0 $0 $9,561 $10,361 $3,145 $1,507.54 $1,625.54 $497.85 8 LOC 0.00 8 LOC 100.00 0.00 $800 Remover & replace suspended ceiling along new frame collector of 2nd floor Remover & replace drywall at shear wall area, back wall 4 LOC 2 LOC 4.000 carp $86.89 200.00 50.00 0.00 $1,390 $800 $200 $0 $2,390 $753.77 $3,015 8.000 carp 0.000 $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1,390 $0 $2,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,390 $0 $2,097.54 $0.00 $4,195 $0Remover & replace SOG - see detail Allowance to reroute SS Drain Allowance to reroute water line Allowance to reroute electrical 1 LS 1 LS 0.00 1,000.00 1,500.00 750.00 5,000.00 0.00 $0 $0 $1,000 $1,500 $12,000 $5,000 $0 $1,000 $1,500 $12,000 $5,000 $0 $1,000.00 $1,500.00 $750.00 $5,000.00 $0.00 $1,000 $1,500 $12,000 $5,000 $0 0.00 $0 $0 16 LS 1 LS 0.00 $0 $0 Paint and patch, floors - final clean-up 0.00 $0 $0 0.00 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 277,358 360,565 $0 $0 $83,207 $83,207 $277,358 $360,565 $83,207 $90,141 Total Construction Cost of: Building 5 - Steel Moment Frame (COM 1 - COM 10, IND 1 - IND 6)43,900 SF $15,847 $11,200 $1,800 $324,307 $353,154 $10.27 $450,700 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 6 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 277     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP UNIT TOTAL COSTDESCRIPTIONQTYUNITCREW/ UNIT COST MATL EQUIP SUB LABOR MATL SUB DIRECT COST Building 6 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6) Structural upgrade - See detail 5,000 SF, 1 Story 1 LS $0.00 $74.83 0.00 0.00 61,300.00 0.00 $0 $0 $0 $61,300 $0 $61,300 $61,300.00 $14.12 $61,300 Remove and replace roof, insulation & roof accessories Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 5,000 SF 0.082 rofc 4.60 0.50 $30,680 $23,000 $2,500 $56,180 $70,587 300 LF 0.260 carp $86.89 17.00 0.80 0.00 $6,777 $5,100 $240 $0 $12,117 $50.82 $15,247 Allowance to reroute SS Drain 1 LS 1 LS 1 LS 1 LS 3 LOC $0.00 $0.00 $0.00 $0.00 $86.89 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 1,000.00 2,000.00 2,500.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500 $1,000 $2,000 $2,500 $0 $500 $1,000 $2,000 $2,500 $1,343 $0 $500.00 $1,000.00 $2,000.00 $2,500.00 $576.77 $500 $1,000 $2,000 $2,500 $1,730 $0 Allowance to reroute water line Allowance to reroute electrical 0.00 $0 $0 Paint and patch, floors - final clean-up Remove & replace casework on first floor 0.00 100.00 0.00 $0 $0 4.000 carp $1,043 $0 $300 $00.00 $0 $0.00 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 0.00 154,865 201,325 $0 $0 $46,460 $46,460 $154,865 $201,325 $46,460 $50,331 Total Construction Cost of: Building 6 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)5,000 SF $38,500 $28,400 $2,740 $113,760 $183,399 $50.34 $251,700 Building 7 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)17,280 SF, 2 Story Structural upgrade - See detail Remove and replace drywall furring at new shear walls 1 LS 1,056 SF 3,168 SF $0.00 $86.89 $86.89 0.00 4.00 4.00 0.00 271,700.00 $0 $8,808 $0 $4,224 $0 $528 $271,700 $271,700 $271,700.00 $271,700 $17,234 $51,703 0.096 carp 0.096 carp 0.50 0.50 0.00 0.00 $0 $0 $13,560 $40,681 $16.32 $16.32Remove and replace drywall furring at new collectors Remove and replace drywall furring at columns for new shear walls Remove and replace floor / ceiling finishes at shear walls / collectors $26,425 $12,672 $1,584 576 SF 720 LF 216 LF 0.115 carp 0.200 carp 0.250 rofc $86.89 $86.89 $74.83 4.80 12.00 15.00 0.50 2.00 2.00 0.00 0.00 0.00 $5,765 $12,512 $4,041 $2,765 $8,640 $3,240 $288 $1,440 $432 $0 $0 $0 $8,818 $22,592 $7,713 $19.47 $39.46 $44.75 $11,213 $28,410 $9,667Remove / replace / patch roof finishes at shear walls / collectors Allowance to reroute SS Drain 2 LS 6 LS $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,500.00 1,000.00 2,000.00 1.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $6,000 $12,000 $17,280 $0 $3,000 $6,000 $12,000 $17,280 $0 $1,500.00 $1,000.00 $2,000.00 $1.00 $3,000 $6,000 $12,000 $17,280 $0 Allowance to reroute water line Allowance to reroute electrical Paint and patch - final clean-up 6 LS 17,280 SF 0.00 $0.00 0.00 $0 $0 $0.00 $0 0.00 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 428,207 556,670 $128,462 $128,462 $428,207 $556,670 $128,462 $139,167 Total Construction Cost of: Building 7 - Concrete Shear Wall (COM 1 - COM 10, IND 1 - IND 6)17,280 SF $57,552 $31,541 $4,272 $438,442 $531,807 $40.27 $695,800 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 7 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 278     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP UNIT TOTAL COSTDESCRIPTIONQTYUNITCREW/ UNIT COST MATL EQUIP SUB LABOR MATL SUB DIRECT COST Building 8 - Tilt-up Concrete Shear Walls (COM1-4,18,435 SF, 1 storyCOM7, COM9, IND1-IND6) Structural upgrade - See detail Remove and replace roof, insulation and roof accessories around perimeter Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 1 LS $0.00 0.00 0.00 134,800.0 0.00 $0 $0 $0 $134,800 $0 $134,800 $134,800.00 $134,800 $162,63411,520 SF 0.082 rofc $74.83 4.60 0.50 0.80 $70,687 $11,928 $52,992 $8,976 $5,760 $129,439 $21,326 $14.12 $50.82528 LF 0.260 carp $86.89 17.00 0.00 $422 $0 $26,835 Allowance to reroute SS Drain 1 LS 1 LS 1 LS 1 LS $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 1,500.00 2,000.00 2,500.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,500 $2,000 $2,500 $0 $1,000 $1,500 $2,000 $2,500 $0 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $0.00 $1,000 $1,500 $2,000 $2,500 $0 Allowance to reroute water line Allowance to reroute electrical Paint and patch - final clean-up Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 331,269 430,649 $99,381 $99,381 $331,269 $430,649 $99,381 $107,662 Total Construction Cost of: Building 8 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6) 18,435 SF $82,615 $61,968 $6,182 $241,181 $391,946 $29.20 $538,300 Building 9 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6)38,400 SF, 2 Story Structural upgrade - See detail Remove and replace roof, insulation and roof accessories around perimeter Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 1 LS $0.00 0.00 4.60 0.00 0.50 299,600.0 0.00 $0 $0 $0 $299,600 $0 $299,600 $299,600.00 $299,600 $165,34411,712 SF 0.082 rofc 0.260 carp $74.83 $71,865 $53,875 $5,856 $131,596 $19,711 $14.12 $50.82488 LF $86.89 17.00 0.80 0.00 $11,024 $8,296 $390 $0 $24,802 Allowance to reroute SS Drain 2 LS 2 LS 2 LS 2 LS $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 1,500.00 2,000.00 1,500.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000 $3,000 $4,000 $3,000 $0 $2,000 $3,000 $4,000 $3,000 $0 $1,000.00 $1,500.00 $2,000.00 $1,500.00 $0.00 $2,000 $3,000 $4,000 $3,000 $0 Allowance to reroute water line Allowance to reroute electrical Paint and patch - final clean-up Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 501,746 652,270 $150,524 $150,524 $501,746 $652,270 $150,524 $163,068 Total Construction Cost of: Building 9 - Tilt-up Concrete Shear Walls (COM1-4, COM7, COM9, IND1-IND6)38,400 SF $82,889 $62,171 $6,246 $462,124 $613,431 $21.23 $815,300 Building 10 - Reinforced Masonry Bearing Wall (COM1- COM5, COM8, IND1-IND6)2,750 SF, 1 Story Structural upgrade - See detail 1 LS $0.00 $74.83 0.00 4.60 0.00 0.50 70,000.00 0.00 $0 $0 $0 $70,000 $0 $70,000 $30,899 $70,000.00 $14.12 $70,000 $38,823Remove and replace roof, insulation & roof accessories Remove and replace ceiling at the building perimeter for access - 8 to 10 lf wide 2,750 SF 0.082 rofc 0.260 carp $16,874 $12,650 $1,375 210 LF $86.89 17.00 0.80 0.00 $4,744 $3,570 $168 $0 $8,482 $50.82 $10,673 Allowance to reroute SS Drain 1 LS 1 LS 1 LS 1 LS $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 1,500.00 2,000.00 1,500.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,500 $2,000 $1,500 $0 $1,000 $1,500 $2,000 $1,500 $0 $1,000.00 $1,500.00 $2,000.00 $1,500.00 $0.00 $1,000 $1,500 $2,000 $1,500 $0 Allowance to reroute water line Allowance to reroute electrical Paint and patch, floors - final clean-up Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 125,496 163,145 $37,649 $37,649 $125,496 $163,145 $37,649 $40,786 Total Construction Cost of: Building 10 - Reinforced Masonry Bearing Wall (COM1- COM5, COM8, IND1-IND6)2,750 SF $21,618 $16,220 $1,543 $113,649 $153,030 $74.15 $203,900 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 8 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 279     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP UNIT TOTAL COSTDESCRIPTIONQTYUNITCREW/ UNIT COST MATL EQUIP SUB LABOR MATL SUB DIRECT COST Building 11 - Reinforced Masonry Bearing Wall (RES3D - 3F, RES4, RES5, RES6, COM1-COM9, IND1-IND6)8,150 SF, 2 Story Structural upgrade - See detail 1 LS $0.00 $74.83 0.00 0.00 114,500.0 0.00 $0 $0 $0 $114,500 $0 $114,500 $114,500.00 $114,500 $55,411Remove and replace roof, insulation & roof accessories Remove and replace ceiling for access at 1st floor new shear walls & 2nd floor anchor walls 3,925 SF 0.082 rofc 4.60 0.50 $24,084 $18,055 $1,963 $44,101 $14.12 300 LF 0.520 carp 0.026 carp $86.89 34.00 1.60 0.00 $13,540 $10,189 $479 $0 $24,208 $101.65 $30,461 Remove and replace ceiling for access at roof level 3,925 SF 1 LS $86.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1.70 0.00 0.00 0.00 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 1,250.00 1,000.00 2,000.00 0.00 $8,867 $0 $6,673 $0 $314 $0 $0 $1,000 $1,250 $2,000 $4,000 $0 $15,853 $1,000 $1,250 $2,000 $4,000 $0 $5.08 $1,000.00 $1,250.00 $1,000.00 $2,000.00 $0.00 $19,948 $1,000 $1,250 $2,000 $4,000 $0 Allowance to reroute SS Drain Allowance to reroute water line 1 LS $0 $0 $0 Allowance to reroute electrical 2 LS $0 $0 $0 Paint and patch, floors - final clean-up 2 LS $0 $0 $0 $0 $0 $0 Add for General Conditions & Design Contingency Add for Soft Cost Premium 30% LS 25% LS 228,570 297,141 $0 $0 $0 $68,571 $68,571 $228,570 $297,141 $68,571 $74,285 Total Construction Cost of: Building 11 - Reinforced Masonry Bearing Wall (RES3D - 3F, RES4, RES5, RES6, COM1-COM9, IND1-IND6)8,150 SF $46,490 $34,916 $2,756 $191,321 $275,483 $45.57 $371,400 Building 12 - Unreinforced Masonry Bearing Wall (COM1, COM2, COM3, COM4, COM5, COM8)5,000 SF, 1 Story Structural upgrade - See detail 1 LS $0.00 $74.83 0.00 4.60 0.00 0.50 238,500.0 0.00 $0 $0 $0 $238,500 $0 $238,500 $238,500.00 $238,500 $70,587Remove and replace roof, insulation & roof accessories Remove and replace ceiling at 2nd floor of the building perimeter for access - 8 to 10 lf wide Remove and replace ceiling for access at moment frame & collector - both levels, 8 to 10 lf wide 5,000 SF 0.082 rofc 0.260 carp $30,680 $23,000 $2,500 $56,180 $14.12 210 LF $86.89 $86.89 17.00 1.70 0.80 0.08 0.00 0.00 $4,744 $2,259 $3,570 $1,700 $168 $80 $0 $0 $8,482 $50.82 $10,673 $5,0821,000 SF 0.026 carp 2.000 carp $4,039 $4,127 $5.08 Remover and replace furring walls at supplemental supports 14 LOC $86.89 96.00 25.00 0.00 $2,433 $1,344 $350 $0 $372.17 $5,210 Allowance to reroute SS Drain Allowance to reroute water line Allowance to reroute electrical Paint and patch, floors - final clean-up 1 LS 1 LS 2 LS 2 LS $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 1,500.00 1,500.00 1,500.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,500 $3,000 $3,000 $0 $1,000 $1,500 $3,000 $3,000 $0 $1,000.00 $1,500.00 $1,500.00 $1,500.00 $0.00 $1,000 $1,500 $3,000 $3,000 $0 0.00 $0 $0 $0.00 $0 0.00 $0 $0 $0.00 $0 0.00 $0 $0 $0.00 $0 Add for General Conditions & Design Contingency 30% LS 25% LS 338,553 440,119 $101,566 $101,566 $338,553 $440,119 $101,566 $110,030 Total Construction Cost of: Building 12 - Unreinforced Masonry Bearing Wall (COM1, COM2, COM3, COM4, COM5, COM8)5,000 SF $40,116 $29,614 $3,098 $348,566 $421,394 $110.02 $550,100 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 9 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 280     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Structural Cost Estimate Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 281     Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP SUB UNITDESCRIPTIONQTYUNITCREW / UNIT COST MATL EQUIP SUB LABOR MATL DIRECT w/MU COST Bldg 1 Sawcut & remove concrete, excavate for new footing New concrete footing / SOG with dowel to existing 4 LOC 4.000 b89 $55.59 $67.34 0.00 150.00 0.00 $889 $0 $600 $400 $0 $0 $1,489 $3,877 $1,882 $4,726 $470.53 4 LOC 4.000 b5 600.00 100.00 0.00 $1,077 $2,400 $1,181.55 Add moment frame with all connections Add new collector with all connections Add plywood, hold downs and anchor bolts Load & move debris + clean area 2 LOC 2 LOC 5 LOC 2 LS 16.000 skwk 4.000 skwk 4.000 carp 4.000 clab $81.42 $81.42 $86.89 $60.77 $0.00 4,568.75 1,000.00 350.00 0.00 500.00 150.00 50.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $2,605 $651 $1,738 $486 $0 $9,138 $2,000 $1,750 $0 $1,000 $300 $250 $200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,743 $2,951 $3,738 $686 $0 $15,401 $3,574 $4,654 $878 $0 $7,700.65 $1,786.88 $930.77 $438.85 $0.000.00 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 1 total Bldg 2 1 LS 0.000 $0.00 15,287.50 2,750.00 $7,448 $15,288 $2,750 $25,485 $31,100 $31,100.00 Sawcut & remove concrete, excavate for new footing New concrete footing / SOG with dowel to existing 4 LOC 4 LOC 4.000 b89 4.000 b5 $55.59 $67.34 0.00 150.00 100.00 0.00 0.00 $889 $0 $600 $400 $2,000 $0 $3,489 $3,877 $3,882 $4,726 $970.53 600.00 $1,077 $2,400 $1,181.55 Add moment frame with all connections Add new collector with all connections Add plywood, hold downs and anchor bolts Load & move debris + clean area Sawcut & remove concrete, excavate for new grade beam - 25 LF New concrete grade beam / SOG with dowel to existing footing - 25 LF New shear wall w/plywood on both sides, 25 LF 2 LOC 2 LOC 5 LOC 1 LS 20.000 skwk 6.000 skwk 4.000 carp 8.000 clab $81.42 $81.42 $86.89 $60.77 5,443.75 2,000.00 350.00 0.00 500.00 200.00 50.00 0.00 0.00 0.00 0.00 $3,257 $977 $10,888 $4,000 $1,750 $0 $1,000 $400 $250 $250 $0 $0 $0 $0 $15,144 $5,377 $3,738 $736 $18,326 $6,482 $4,654 $937 $9,163.03 $3,240.82 $930.77$1,738 $486250.00 $936.71 1 LOC 10.000 b89 $55.59 $67.34 0.00 250.00 750.00 0.00 0.00 $556 $0 $250 $750 $0 $0 $806 $1,029 $6,615 $1,028.84 $6,614.981 LOC 1 LOC 18.000 b5 3,500.00 $1,212 $3,500 $5,462 24.000 Carp $86.89 $0.00 4,800.00 0.00 250.00 0.00 0.00 0.00 $2,085 $0 $4,800 $0 $250 $0 $0 $0 $7,135 $0 $8,712 $0 $8,711.62 $0.00 Bldg 2 total Bldg 3 1 LS 0.000 $0.00 27,337.50 4,150.00 2,000.00 $12,278 $27,338 $4,150 $2,000 $45,765 $55,400 $55,400.00 Sawcut & remove concrete, excavate for new footing New concrete footing / SOG with dowel to existing 8 LOC 8 LOC 4.000 b89 4.000 b5 $55.59 $67.34 0.00 150.00 100.00 0.00 0.00 $1,779 $2,155 $0 $1,200 $800 $3,000 $0 $5,979 $7,755 $6,764 $9,452 $845.53 600.00 $4,800 $1,181.55 Add moment frame with all connections Add new collector with all connections Add plywood, hold downs and anchor bolts - 4 LOC 8 LOC 16.000 skwk 6.000 skwk $81.42 $81.42 4,568.75 2,000.00 500.00 200.00 0.00 0.00 $5,211 $3,908 $18,275 $16,000 $2,000 $1,600 $0 $0 $25,486 $21,508 $30,803 $25,927 $7,700.65 $3,240.82 4 LOC 4.000 carp $86.89 $86.89 350.00 500.00 50.00 75.00 0.00 0.00 $1,390 $2,607 $1,400 $2,500 $200 $375 $0 $0 $2,990 $5,482 $3,723 $6,833 $930.77back walls Add plywood, hold downs and anchor bolts - side walls Load & move debris + clean area 5 LOC 4 LS 6.000 carp 4.000 clab $1,366.66 $60.77 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 0.00 $972 $0 $0 $0 $400 $0 $0 $0 $1,372 $0 $1,755 $0 $438.85 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 Bldg 3 total 1 LS 0.000 $0.00 42,975.00 6,575.00 3,000.00 $18,022 $42,975 $6,575 $3,000 $70,572 $85,300 $85,300.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 11 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 282     Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP SUB UNITDESCRIPTIONQTYUNITCREW / UNIT COST MATL EQUIP SUB LABOR MATL DIRECT w/MU COST Bldg 4 Sawcut & remove concrete, excavate for new footing New concrete footing / SOG with dowel to existing 6 LOC 4.000 b89 $55.59 $67.34 0.00 150.00 0.00 $1,334 $1,616 $0 $900 $600 $0 $0 $2,234 $5,816 $2,823 $7,089 $470.53 6 LOC 4.000 b5 600.00 100.00 0.00 $3,600 $1,181.55 Add moment frame with all connections Add new collector with all connections Add for mid span collector with all connections Add plywood, hold downs and anchor bolts - 3 LOC 2 LOC 1 LOC 16.000 skwk 6.000 skwk 10.000 skwk $81.42 $81.42 $81.42 5,163.75 2,000.00 3,000.00 500.00 200.00 200.00 0.00 0.00 0.00 $3,908 $977 $15,491 $4,000 $3,000 $1,500 $400 $0 $0 $0 $20,899 $5,377 $4,014 $25,208 $6,482 $4,851 $8,402.75 $3,240.82 $4,850.70$814 $200 8 LOC 4.000 carp $86.89 $86.89 350.00 600.00 50.00 75.00 0.00 0.00 $2,780 $1,390 $2,800 $1,200 $400 $150 $0 $0 $5,980 $2,740 $7,446 $3,428 $930.77side walls Add plywood, hold downs and anchor bolts - back walls Load & move debris + clean area 2 LOC 2 LS 8.000 carp 8.000 clab $1,714.04 $60.77 $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $972 $0 $0 $0 $400 $0 $0 $0 $0 $0 $0 $0 $1,372 $0 $1,755 $0 $877.71 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 4 total Bldg 5 1 LS 0.000 $0.00 30,091.25 4,550.00 $13,792 $30,091 $4,550 $48,434 $59,100 $59,100.00 Sawcut & remove concrete, excavate for new footing & micropile New concrete footing / SOG with dowel to existing + headed bars 28 LOC 28 LOC 4.000 b89 4.000 b5 $55.59 $67.34 0.00 150.00 100.00 0.00 0.00 $6,226 $7,542 $0 $4,200 $2,800 $0 $0 $10,426 $32,742 $13,175 $39,691 $470.53 800.00 $22,400 $1,417.55 Drill thru ( E) footings for new headed bar 14 LOC 28 LOC 8.000 b5 $67.34 $81.42 100.00 350.00 250.00 100.00 0.00 0.00 $7,542 $1,400 $9,800 $3,500 $2,800 $0 $0 $12,442 $30,837 $15,737 $38,941 $1,124.10 $1,390.76New micropile 8.000 skwk $18,237 Add HSS brace frame all connections at ( E) frames Add new collector with all connections Add for mobilization and special requirements Load & move debris + clean area 8 LOC 16.000 skwk 8.000 skwk $81.42 5,408.73 1,500.00 500.00 200.00 0.00 $10,421 $43,270 $4,000 $0 $57,691 $69,535 $8,691.82 4 LOC 1 LS $81.42 $0.00 $60.77 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 $2,605 $0 $6,000 $0 $800 $25,000 $800 $0 $0 $0 $0 $0 $9,405 $25,000 $2,745 $0 $11,463 $29,500 $3,511 $0 $2,865.76 $29,500.00 $438.85 $0.00 0.00 25,000.00 8 LS 4.000 clab 0.00 0.00 0.00 100.00 0.00 $1,945 $0 $0 $0 $0 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 5 total Bldg 6 1 LS 0.000 $0.00 82,869.82 43,900.00 $54,519 $82,870 $43,900 $0 $181,289 $221,600 $221,600.00 Sawcut & remove concrete, excavate for new footing 4 LOC 4.000 b89 $55.59 0.00 150.00 0.00 $889 $0 $600 $0 $1,489 $1,882 $470.53 New concrete footing / SOG with dowel to existing 4 LOC 2 LOC 6.000 b5 $67.34 $81.42 $81.42 800.00 6,804.38 150.00 100.00 500.00 25.00 0.00 0.00 0.00 $1,616 $3,257 $5,699 $3,200 $13,609 $5,250 $400 $1,000 $875 $0 $0 $0 $5,216 $17,865 $11,824 $6,381 $21,537 $14,750 $1,595.33 $10,768.56 $421.44 Add moment frame with all connections Drill hole in concrete wall, add anchor tie down - roof to wall - tight working area Add new plywood sheathing over ( E) at roof Load & move debris + clean area 20.000 skwk 2.000 skwk35 LOC 5,000 SF 2 LS 0.006 carp 4.000 clab $86.89 $60.77 $0.00 $0.00 $0.00 2.00 0.00 0.00 0.00 0.00 0.10 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $2,607 $486 $0 $10,000 $0 $500 $200 $0 $0 $0 $0 $0 $0 $0 $13,107 $686 $0 $15,831 $878 $0 $3.17 $438.85 $0.00$0 0.00 $0 $0 $0 $0 $0 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 6 total 1 LS 0.000 $0.00 32,058.75 3,575.00 $14,554 $32,059 $3,575 $50,188 $61,300 $61,300.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 12 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 283     Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP SUB UNITDESCRIPTIONQTYUNITCREW / UNIT COST MATL EQUIP SUB LABOR MATL DIRECT w/MU COST Bldg 7 Sawcut & remove concrete, excavate for new footing / micropile- at perimeter Sawcut & remove concrete, excavate for new footing / micropile - interior New concrete footing / SOG with dowel to existing footing / pile cap 2 LOC 8.000 b89 $55.59 $55.59 $67.34 0.00 250.00 0.00 $889 $556 $0 $500 $300 $500 $0 $0 $0 $1,389 $856 $1,764 $1,088 $5,555 $882.07 1 LOC 2 LOC 10.000 b89 12.000 b5 0.00 300.00 250.00 0.00 0.00 $0 $1,087.84 $2,777.651,200.00 $1,616 $2,400 $4,516 New concrete footing / SOG at interior 1 LOC 12.000 b5 $67.34 $81.42 1,250.00 450.00 250.00 250.00 0.00 0.00 $808 $1,250 $5,400 $250 $0 $0 $2,308 $2,837 $2,836.65 $1,900.70New micropile 12 LOC 10.000 skwk $9,770 $3,000 $18,170 $22,808 New concrete shear wall with dowel to existing columns - first & 2nd floors 1,056 SF 0.700 b5 $67.34 15.00 5.00 0.00 $49,777 $15,840 $5,280 $0 $70,897 $90,627 $85.82 New concrete shear wall at interior - first & 2nd floors Shore slab during construction Core drill / opening in first floor slab & roof for dowel / shear wall 576 SF 136 LF 136 LF 0.600 b5 $67.34 $86.89 $55.59 12.50 25.00 15.00 3.00 15.00 5.00 0.00 0.00 0.00 $23,272 $5,908 $1,512 $7,200 $3,400 $2,040 $1,728 $2,040 $680 $0 $0 $0 $32,200 $11,348 $4,232 $41,255 $14,218 $5,206 $71.62 $104.55 $38.28 0.500 carp 0.200 b89 Core drill / dowel and new concrete collector below 2nd floor & roof + patch pour hole Clean and prep col surface 264 LF 1.250 b5 $67.34 80.00 15.00 0.00 $22,222 $21,120 $3,960 $0 $47,302 $58,927 $223.21 2 LS 300 SF 12 LS 2.000 clab 0.180 skwk 4.000 clab $60.77 $81.42 $60.77 $0.00 25.00 35.00 0.00 0.00 0.00 0.00 25.00 10.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $243 $4,397 $2,917 $0 $50 $10,500 $0 $50 $3,000 $1,200 $0 $0 $0 $0 $0 $0 $0 $343 $17,897 $4,117 $0 $439 $21,733 $5,266 $0 $219.43 $72.44 $438.85 $0.00 Add FRP at the column surface Load & move debris + clean area $0 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 7 total Bldg 8 1 LS 0.000 $0.00 69,200.00 22,488.00 $123,888 $69,200 $22,488 $0 $215,576 $271,700 $271,700.00 Drill hole in concrete wall, add anchor tie down - roof to wall two walls - tight working area Drill hole in concrete wall, add anchor at sub- purlin - roof to wall two walls - tight working area 30 LOC 48 LOC 2.000 skwk 6.000 skwk $81.42 $81.42 150.00 200.00 25.00 50.00 0.00 0.00 $4,885 $4,500 $9,600 $750 $0 $0 $10,135 $35,448 $12,643 $45,111 $421.44 $939.82$23,448 $2,400 Add new collector with all connections Add new plywood sheathing over ( E) roof at perimeter 4 LOC 10.000 skwk 0.006 carp $81.42 $86.89 1,500.00 2.00 200.00 0.10 0.00 0.00 $3,257 $6,006 $6,000 $800 $0 $0 $10,057 $30,198 $12,323 $36,474 $3,080.70 $3.1711,520 SF $23,040 $1,152 Load & move debris + clean area 1 LS 12.000 clab 2.000 carp $60.77 $86.89 $0.00 $0.00 $0.00 0.00 50.00 0.00 200.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $729 $15,640 $0 $0 $4,500 $0 $200 $900 $0 $0 $0 $0 $0 $0 $929 $21,040 $0 $1,199 $27,017 $0 $1,198.56 $300.19 $0.00 Continuity ties (subpurlin, girder, purlin)90 LOC 0.00 0.00 $0 $0 $0 $0 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 8 total 1 LS 0.000 $0.00 47,640.00 6,202.00 $53,965 $47,640 $6,202 $0 $107,807 $134,800 $134,800.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 13 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 284     Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP SUB UNITDESCRIPTIONQTYUNITCREW / UNIT COST MATL EQUIP SUB LABOR MATL DIRECT w/MU COST Bldg 9 Drill hole in concrete wall, add enhanced girder connection Drill hole in concrete wall, add anchor tie down - roof to wall along two walls - tight working area Drill hole in concrete wall, add anchor at sub- 14 LOC 4.000 skwk $81.42 $81.42 250.00 25.00 0.00 $4,559 $4,071 $3,500 $3,750 $350 $625 $0 $0 $8,409 $8,446 $10,561 $10,536 $754.38 25 LOC 96 LOC 2.000 skwk 6.000 skwk 150.00 200.00 25.00 50.00 0.00 0.00 $421.44 $939.82purlin - roof to wall along two walls - tight $81.42 $46,896 $19,200 $4,800 $0 $70,896 $90,223 working area Drill hole in concrete wall, add steel angle & anchor at floor level - wall all around - tight working area Add new plywood sheathing over ( E) roof at perimeter 196 LOC 4.000 skwk 0.006 carp $81.42 $86.89 125.00 2.00 25.00 0.10 0.00 0.00 $63,831 $6,106 $24,500 $23,424 $4,900 $1,171 $0 $0 $93,231 $118,949 $606.88 $3.1711,712 SF $30,701 $37,082 Load & move debris + clean area 2 LS 8.000 clab 2.000 carp $60.77 $86.89 $0.00 $0.00 $0.00 0.00 50.00 0.00 150.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $972 $17,725 $0 $0 $5,100 $0 $300 $1,020 $0 $0 $0 $0 $0 $0 $1,272 $23,845 $0 $1,637 $30,619 $0 $818.71 $300.19 $0.00 Continuity ties (subpurlin, girder, purlin)102 LOC 0.00 0.00 $0 $0 $0 $0 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 9 total Bldg 10 1 LS 0.000 $0.00 79,474.00 13,166.20 $144,160 $79,474 $13,166 $0 $236,800 $299,600 $299,600.00 Sawcut & remove concrete, excavate for new footing & micropile New concrete footing / SOG with dowel to existing + headed bars 2 LOC 2 LOC 4.000 b89 6.000 b5 $55.59 $67.34 0.00 150.00 250.00 0.00 0.00 $445 $808 $0 $300 $500 $0 $0 $745 $941 $470.53 1,500.00 $3,000 $4,308 $5,197 $2,598.33 Drill thru ( E) footings for new headed bar 0 LOC 0 LOC 8.000 b5 $67.34 $81.42 100.00 350.00 250.00 100.00 0.00 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0.00 $0.00New micropile 8.000 skwk New concrete footing / SOG with dowel to existing Add moment frame with all connections Add brace frame W24x76 & W12x96 with all 2 LOC 2 LOC 0 LOC 6.000 b5 $67.34 $81.42 $81.42 800.00 6,804.38 6,475.00 100.00 500.00 500.00 0.00 0.00 0.00 $808 $3,257 $0 $1,600 $13,609 $0 $200 $1,000 $0 $0 $0 $0 $2,608 $17,865 $0 $3,191 $21,537 $0 $1,595.33 $10,768.56 $0.00 20.000 skwk 32.000 skwkconnections Add HSS brace frame all connections at ( E) frames Add new collector with all connections Drill hole in concrete wall, add enhanced girder connection 0 LOC 1 LOC 2 LOC 16.000 skwk 8.000 skwk 4.000 skwk $81.42 $81.42 $81.42 5,408.73 1,500.00 250.00 500.00 200.00 25.00 0.00 0.00 0.00 $0 $651 $651 $0 $1,500 $500 $0 $200 $50 $0 $0 $0 $0 $2,351 $1,201 $0 $2,866 $1,509 $0.00 $2,865.76 $754.38 Drill hole in concrete wall, add anchor tie down - roof to wall - tight working area Drill hole in concrete wall, add anchor at sub- purlin - roof to wall along one bay - tight working area 12 LOC 14 LOC 2.000 skwk 6.000 skwk $81.42 $81.42 150.00 200.00 25.00 50.00 0.00 0.00 $1,954 $6,839 $1,800 $2,800 $300 $700 $0 $0 $4,054 $5,057 $421.44 $939.82$10,339 $13,157 Add new continuity ties (subpurlin, girder, purlin) Add new plywood sheathing over ( E) roof at perimeter 22 LOC 2.000 carp 0.006 carp $86.89 $86.89 50.00 2.00 10.00 0.10 0.00 0.00 $3,823 $1,434 $1,100 $5,500 $220 $275 $0 $0 $5,143 $7,209 $6,604 $8,707 $300.19 $3.172,750 SF New blocking where wall anchor does not allow - Allowance Load & move debris + clean area 0 LS 1 LS 8.000 carp 12.000 clab $86.89 500.00 50.00 0.00 $0 $0 $0 $0 $0 $0 $0.00 $60.77 $0.00 $0.00 0.00 0.00 0.00 200.00 0.00 0.00 0.00 0.00 0.00 $729 $0 $0 $0 $200 $0 $0 $0 $0 $0 $929 $0 $1,199 $0 $1,198.56 $0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 10 total 1 LS 0.000 $0.00 31,408.75 3,945.00 $21,399 $31,409 $3,945 $56,753 $70,000 $70,000.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 14 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 285     Structural Cost Estimate Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 MH MH UNIT TOTAL COST EQUIP SUB UNITDESCRIPTIONQTYUNITCREW / UNIT COST MATL EQUIP SUB LABOR MATL DIRECT w/MU COST Bldg 11 Sawcut & remove concrete, excavate for new grade beam - 25 LF 2 LOC 10.000 b89 $55.59 0.00 250.00 0.00 $1,112 $0 $500 $0 $1,612 $2,058 $1,028.84 New concrete grade beam / SOG with dowel to existing footing - 25 LF New shear wall w/plywood on both sides, 25 LF Drill hole in concrete wall, add anchor tie down - roof to wall along two walls - tight working area Drill hole in concrete wall, install floor to wall 2 LOC 2 LOC 18.000 b5 $67.34 $86.89 $81.42 3,500.00 4,800.00 150.00 750.00 250.00 25.00 0.00 0.00 0.00 $2,424 $4,171 $6,513 $7,000 $9,600 $6,000 $1,500 $500 $0 $0 $0 $10,924 $14,271 $13,513 $13,230 $17,423 $16,858 $6,614.98 $8,711.62 $421.44 24.000 Carp 2.000 skwk40 LOC $1,000 40 LOC 25 LOC 1 LOC 1 LOC 6.000 skwk 2.000 carp $81.42 $86.89 $81.42 200.00 50.00 50.00 10.00 0.00 0.00 0.00 $19,540 $4,344 $814 $8,000 $1,250 $1,500 $2,000 $250 $0 $0 $0 $29,540 $5,844 $2,514 $37,593 $7,505 $3,081 $939.82 $300.19 anchor at floor level Add new purlin continuity ties Add new collector with all connections at second floor Add new collector with all connections at roof Add new plywood sheathing over ( E) roof Load & move debris + clean area 10.000 skwk 1,500.00 200.00 $200 $3,080.70 10.000 skwk 0.006 carp 12.000 clab $81.42 $86.89 $60.77 $0.00 1,500.00 2.00 200.00 0.10 0.00 0.00 0.00 0.00 0.00 0.00 $814 $2,046 $729 $1,500 $7,850 $0 $200 $393 $200 $0 $0 $0 $0 $0 $0 $0 $2,514 $10,289 $929 $0 $3,081 $12,427 $1,199 $0 $3,080.70 $3.173,925 SF 1 LS 0.00 200.00 0.00 $1,198.56 $0.000.00 $0 $0 $0.00 0.00 0.00 $0 $0 $0 $0 $0 $0.00 Bldg 11 total Bldg 12 1 LS 0.000 $0.00 42,700.00 6,742.50 $42,508 $42,700 $6,743 $91,951 $114,500 $114,500.00 Sawcut & remove concrete, excavate for new footing New concrete footing / SOG with dowel to existing Add moment frame with all connections - 12'-6" span Add moment frame with all connections - 25' span Allowance for increased footing size at 25' span moment frame Add moment frame with all connections per detail 28 - NOT APPLICABLE DETAIL 4 LOC 4.000 b89 4.000 b5 $55.59 $67.34 $81.42 $81.42 $67.34 $0.00 0.00 600.00 5,382.50 6,804.38 200.00 0.00 150.00 100.00 500.00 500.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 $889 $1,077 $1,303 $1,628 $135 $0 $2,400 $5,383 $6,804 $200 $600 $400 $500 $500 $50 $0 $0 $0 $0 $0 $0 $1,489 $3,877 $7,185 $8,933 $385 $1,882 $4,726 $8,661 $10,769 $473 $470.53 $1,181.55 $8,660.87 $10,768.56 $472.78 4 LOC 1 LOC 1 LOC 1 LOC 0 LOC 16.000 skwk 20.000 skwk 2.000 b5 0.000 0.00 $0 $0 $0 $0 $0 $0.00 Add new collector with all connections, 25' span Add new collector with all connections, 37' span Drill hole in URM wall, add supplemental vertical support - 14 LOCATIONS Drill hole in URM wall, add anchor tie down - roof to wall along each wall - tight working area Drill hole in URM wall, add parapet brace - along each wall 1 LOC 1 LOC 6.000 skwk $81.42 $81.42 1,500.00 2,000.00 150.00 200.00 0.00 0.00 $489 $814 $1,500 $2,000 $150 $200 $0 $0 $2,139 $3,014 $2,592 $3,671 $2,591.82 $3,670.7010.000 skwk 14 LOC 75 LOC 38 LOC 20.000 skwk 2.000 skwk 6.000 skwk $81.42 $81.42 $81.42 2,500.00 150.00 250.00 25.00 50.00 0.00 0.00 0.00 $22,797 $12,213 $35,000 $11,250 $3,500 $1,875 $0 $0 $61,297 $25,338 $75,522 $31,608 $5,394.40 $421.44 1,250.00 $18,563 $2,607 $47,500 $10,000 $1,900 $500 $0 $0 $67,963 $13,107 $82,795 $15,831 $2,178.82 $3.17Add new plywood sheathing over ( E) roof 5,000 SF 1 LS 0.006 carp 12.000 clab $86.89 $60.77 $0.00 $0.00 $0.00 $0.00 2.00 0.00 0.00 0.00 0.00 0.00 0.10 200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Load & move debris + clean area $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0.00 $0.00 $0.00 $0.00 0.00 0.00 $0 0.00 $0 Bldg 12 total 1 LS 0.000 $0.00 122,036.88 10,175.00 $62,514 $122,037 $10,175 $0 $194,726 $238,500 $238,500.00 City of Palo Alto - Seismic R6 - 12 21 2016 printed on 12/21/2016 Page 15 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 286     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Cost Model Methodology Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 287     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Cost Model Methodology - Palo Alto Seismic Risk Management Program project In order to gauge the impact of seismic retrofitting potentially hazardous building types and perform loss estimates on the building stock with and without the retrofits, a conceptual cost estimates for the retrofits has been developed, to compare the cost of retrofit with the losses. R+C has developed a conceptual retrofits for a selected set of representative buildings. Vanir provided the retrofit cost of these building for the seismic upgrade as well as the collateral cost of performing seismic works. The conceptual cost estimate is based on Vanir cost model from seismic retrofit of various building types modified and adjusted for the scope of these buildings, current construction market as well as the location impact -Palo Alto across the town, including downtown areas. Cost of retrofit includes:  Structural costs: The cost that a subcontractor charges a general contractor to perform structural work.  Architectural refinishing or collateral costs: The cost for architectural work associated with the structural work that a subcontractor charges the general contractor. Included are items such as demolition and replacement costs for wall and ceiling finishes, removal and reinstallation of electrical and mechanical equipment, and reroofing. Assume an “average” level of finishes.  Overhead and profit: Overhead includes bonds, insurance, and general conditions, and it covers administration and management of subcontractors.  Design contingency: Use and identify a design contingency that is appropriate to the conceptual retrofit level of the retrofit descriptions to cover unknown costs of work not specified but which will likely be necessary.  All costs are current – 4th quarter of 2016 costs – escalation to the mid-point of construction to be added at a later time based on the schedule of the construction work. Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 288     Project: City of Palo Alto - Seismic Risk Mitigation Title: Replacement and Retrofit Cost Estimate Date: May 9, 2016 & revised on November 9, 2016 Soft costs: including but not limited to:  Architect and engineer design fees  Testing and inspection fees  Permit and plan check fees  An allowance for owner change order contingency  Advertising, printing, and mailing fees Cost Categories exclude the cost / fee of the following items:  Hazardous material abatement costs, such as asbestos, lead paint, or soil contamination.  Occupants-in-place costs, (assumed building will be vacant for the seismic retrofit)  Relocation of the occupants / interim housing / swing space  Relocation of the building content – furniture and similar  Loss of use during construction  Accessibility / ADA upgrade  Cost of code upgrade  Premium for Historic buildings  Repair of existing conditions / differed maintenance  Renovation / retrofit over and beyond seismic work  Upgrade / enhancement of finishes / equipment / infrastructure  Project and construction management  Environmental documentation fees  Financing costs  Legal fees Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 289     Structural | Geotechnical 375 Beale Street, Suite 310 San Francisco, CA 94105 Item 2 Attachment A - Palo Alto Seismic Risk Assessment Study - Final Report - 2016 12 21     Packet Pg. 290     1 of 3 City of Palo Alto Seismic Risk Management Program Advisory Committee Members v7_GH_01.15.16 Organization or Company Contact Name Title Stakeholder Category Commitment Status ABAG Dana Brechwald Resilience Specialist policy AG Member Applied Technology Christopher Rojahn Director Emeritus engineers AG Member BCCI Construction Co.Nelson Vineyard Field Operations Manager contractors AG Member BOMA (Building Owners and Managers Association)Sharon Fredlund Executive community AG Member California Apartment Association Tri-County Anil Babbar Executive Director tenants AG Member City of Palo Alto - Economic Development Thomas Fehrenbach Economic Development Manager city staff-economic development AG Member Cody Brock Richard Cody Principal contractors AG Member Hayes Group Ken Hayes Principal architects AG Member Hohbach-Lewin, Inc.Doug Hohbach Principal engineers AG Member Hudson Pacific Properties Shawn Kelly Director, Portfolio Engineering community AG Member Hudson Pacific Properties Teresa Marks Portfolio Manager community AG Member Item 2 Attachment B - Seismic Risk Management Program Advisory Committee Members_01.15.16     Packet Pg. 291     2 of 3 Organization or Company Contact Name Title Stakeholder Category Commitment Status Office of the City Administrator City and County of San Francisco Patrick Otellini Chief Resilience Officer policy AG Member One Concern Ahmad Wani CEO and CoFounder community AG Member Palo Alto Housing Corp.Georgina Mascarenhas Vice President of Property Management community AG Member Palo Alto Chamber of Commerce Judy Kleinberg CEO/President business interests AG Member PAN (Palo Alto Neighborhoods)Al Dorsky Emergency Service Volunteer community AG Member PAN (Palo Alto Neighborhoods)Annette Glanckopf Emergency Service Volunteer community AG Member Premier Properties Jon Goldman Real Estate Broker/Developer community AG Member Rapp Development Roxy Rapp Owner developers AG Member SILVAR (Silicon Valley Assoc. of Realtors)Jessica Epstein Government Affairs Director community AG Member Sobrato Organization Tim Steele Senior Vice President, Real Estate Development developers AG Member USGS / Bay Area Earthquake Alliance Tom Holzer USGS Engineering Geologist policy AG Member City of Palo Alto - Development Services Peter Pirnejad Director city staff-PCE-building Project Team Member City of Palo Alto - Development Services - Building Division Bud Starmer Building Inspector Supervisor city staff-PCE-building Project Team Member Item 2 Attachment B - Seismic Risk Management Program Advisory Committee Members_01.15.16     Packet Pg. 292     3 of 3 Organization or Company Contact Name Title Stakeholder Category Commitment Status City of Palo Alto - Development Services - Building Division George Hoyt Chief Building Official city staff-PCE-building Project Team Member City of Palo Alto - Fire James Henrikson Deputy Chief/Fire Marshall city staff-fire Project Team Member City of Palo Alto - Office of Emergency Services Nathaniel Rainey Coordinator city staff-OES Project Team Member City of Palo Alto - Planning & Community Environment Jeremy Dennis Planning Manager city staff-PCE-planning Project Team Member City of Palo Alto - Planning & Community Environment Elena Lee Senior Planner city staff-PCE-planning Project Team Member City of Palo Alto - Public Works Hung Nguyen Project Engineer city staff-PCE-public works Project Team Member Rutherford + Chekene Bret Lizundia Executive Principal R+C consulting team Project Team Member Rutherford + Chekene Marko Schotanus Associate R+C consulting team Project Team Member Sharyl Rabinovici Consulting Sharyl Rabinovici Disaster Mitigation Researcher and Policy Strategist R+C consulting team Project Team Member Item 2 Attachment B - Seismic Risk Management Program Advisory Committee Members_01.15.16     Packet Pg. 293      1 PALO ALTO’S 2016 SEISMIC RISK MANAGEMENT PROGRAM ADVISORY GROUP SUMMARY REPORT ON PROCESS, DISCUSSIONS, AND OUTCOMES November 21, 2016 OVERVIEW On December 9, 2014, the Policy and Services Committee of the Palo Alto City Council recommended the City Council authorize a Request for Proposal (RFP) to develop information for use in updating the City’s Seismic Hazards Identification Program (Ordinance 3666). The City Council approved the recommendation, an RFP and scope of work was prepared, and a consulting team led by Rutherford + Chekene was selected to develop summarize relevant state and local seismic mitigation legislation, obtain detailed information on Palo Alto’s existing building stock, develop conceptual retrofits for vulnerable buildings, make loss estimates of expected damage to the building stock, and work with a City Advisory Group to develop policy recommendations for consideration by the Council. From an initial meeting in December 2015 through a final meeting in August 2016, the City of Palo Alto (COPA) staff and consultants from Rutherford + Chekene hosted six meetings of a Seismic Risk Management Program Advisory Group. The purpose was to discuss needs and potential directions for COPA leaders to consider going forward in updating the city’s seismic mitigation programs. The convening of a stakeholder advisory group was an essential element of a the project to collect and analyze earthquake risks in Palo Alto’s existing building stock (primarily multi-family and commercial) and narrow in on promising policy alternatives. Over the course of twenty hours of face-to-face information exchange, non-staff participation ranged from seven to 20 persons. Attendees included people with a range of relevant expertise and interests from interested citizens, earthquake risk and engineering experts, local developers and owners, and representatives of various community groups. COPA departments represented included Building, Planning, Fire, Office of Emergency Services, and Public Works. The process was informed by an extensive technical assessment of the earthquake risk landscape in Palo Alto’s existing buildings (excluding single-family and two-family residences). Consultants completed a document review, a street survey of a large sample of buildings, and a loss estimation analysis with and without seismic retrofitting, as well as a comprehensive review of other jurisdictional best practices and the state policy context. Advisory Group members received in-depth briefings on the inventory and loss estimation methods and results. That information formed the basis for clarifying and exploring a range of policy options. This memo summarizes the process, discussions, and outcomes of the City of Palo Alto’s Seismic Risk Management Program Advisory Group efforts. The process was not aimed at creating a consensus document or ratification by majority vote. The end goal was a summary— reflected by this document—of the range of issues and opinions expressed by interested parties who participated. All Advisory Group members had the opportunity to review this memo prior to Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 294     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 2 final submittal by the Consultants to COPA staff. The information herein will be provided to the City Council later in the first quarter of 2017 as they consider potential revisions to the City of Palo Alto’s current seismic risk management program and seismic hazard identification ordinance. POLICY OPTION DISCUSSIONS Scope of the Seismic Risk Problem in Palo Alto Palo Alto’s existing seismic mitigation program, one of the first and most innovative of its kind, focuses on three categories of buildings based on age of construction and structural type and occupancy. Category I is for unreinforced masonry (URM) buildings with more than six occupants and more than 1,900 sf. Category II is for buildings built before 1935 with over 100 occupants. Category III is for buildings built before August 1, 1976 with over 300 occupants. In the 12/9/14 COPA staff report, there were 47 buildings in Category I, 19 in Category II, and 23 in Category III. The program required owners to do a seismic evaluation, but left them the choice of whether to actually perform a retrofit. Owners and developers were offered a Floor Area Ratio (FAR) bonus in exchange for completing basic retrofit work. This tactic was successful for addressing the majority of the Category I, II, and III buildings either by seismic retrofitting or by demolition. Currently, approximately ten Category I, four Category II, and nine Category III buildings remain standing without seismic retrofitting. The modest overall scope of the ordinance left many other vulnerable building types unaddressed. The current technical assessment covered a much larger set of buildings with a wider array of potentially vulnerable structural systems. The findings showed that the estimated losses to Palo Alto buildings and contents in a major event will be significant, on the order of $2.4 billion. Furthermore, this figure does not include implications such as lives lost, business disruption, or ripple effects in the local economy or real estate market. Much of this loss will not be insured. Loss Estimates and Cost Benefit Assessments of Local Inventory Generally, buildings designed to a more recent building code are expected to perform well. Older buildings built before milestone improvements in code provisions can be more seismically vulnerable. Among the building type categories of highest concern in Palo Alto besides the three categories covered by the COPA ordinance are pre-1977 soft-story wood frame (with approximately 294 buildings), pre-1998 tilt-up concrete (99 buildings), pre-1977 concrete soft- story (37 buildings), pre-1998 steel moment frame (35 buildings), and other pre-1977 concrete construction (170 buildings). Participants generally agreed that addressing building types known to be potentially hazardous and with large numbers of buildings will lead to the greatest reduction in losses. It was also nearly unanimous that Palo Alto should seek out ways to resolve the approximately 23 cases of Category I, II, or III buildings that have not yet been addressed. The technical assessment revealed that the potential reduction in damage costs from retrofitting is significant. Some building categories have greater benefits than others in terms of loss Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 295     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 3 reduction relative to estimated retrofit costs, with a low of approximately 1:1 to a high of approximately 11:1. Two scenarios earthquake events along the San Andreas Fault developed by the United States Geological Survey were used in the loss estimates: a major M7.9 event, and a strong M6.7 event. For a more accurate estimate of costs and benefits, all future earthquakes would need to be considered. It made sense to participants to use the estimated retrofit benefit- cost ratio as one factor (among many) in considering which categories of buildings COPA should address first. Other factors could include loss of life, business disruption, and displaced residents, though these estimates were not within the scope of the loss estimate. Approaches to Address Seismic Retrofitting Used by Other Jurisdictions The policy and best practices reviews showed that a wide range of policy options are being used in other jurisdictions to address vulnerabilities similar to those faced by Palo Alto. Potential policy mechanisms include: inventory only, notify only, voluntary retrofit, disclosure approaches, mandatory screening, mandatory evaluation, and mandatory retrofit, with either a fixed timeline or when triggered (for instance, at time of transfer). Mitigation programs often consist of a package of policy mechanisms for different building categories, and use several mechanisms at the same time for different building categories or in phases. Participants were also informed about precedents for a variety of incentives that can be offered for some or all affected owners to ease the process of program compliance. Bundled Options with Increasing Regulatory Strength The Advisory Group, together with COPA staff, received detailed briefings on the above findings, asked questions, and discussed potential community responses and concerns. Half way through the process, consultants introduced to participants a range of specific policy options to frame the conversation about the most needed and viable policy approaches. The aims were to identify areas of general agreement, specific approaches that were either favored or not, and issues needing further information or discussion. Six possible options were suggested as follows: Option 1—Status Quo. Existing program (Palo Alto Municipal Code Chapter 16.42) ordinance with its mandatory evaluation, voluntary retrofit approach would remain in place without changes. Option 2—Increase Scope but Retrofit Remains Voluntary. Additional categories of structures would be added to the mandatory evaluation requirements beyond those of the current ordinance. Option 3—Increase Scope with Additional Disclosure Measures. Like Option 2, this option would target a larger set of building categories than the current ordinance and make use of disclosure measures such as prominently posting the building list on the City website, notifying tenants, requiring signage, and/or recording notice on the property title. Option 4—Increase Scope with Some Categories Voluntary and a Few More Categories Mandatory, with Enforcement by a Trigger Threshold. This option would require retrofitting for some building types whenever certain future events take place, such as when a building is sold or undergoes substantial renovation above a set threshold such as cost. Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 296     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 4 Option 5—Increase Scope with Some Categories Voluntary and a Few Categories Mandatory, with Enforcement on a Fixed Timeline. This option would be similar to Option 4, but retrofitting is required according to a fixed timeline. Option 6—Increase Scope, Retrofit is Mandatory for More Categories. Retrofitting would be required on a fixed timeline for additional categories. The possibility of having different requirements or timelines for residential compared to non- residential properties was identified. The group was also open to using location, occupancy type, and/or number of occupants as part of the criteria for selecting a structural type to be included in the updated ordinance, and/or as a basis for setting appropriate timelines, prioritization, tiers, or phasing. In general, mandatory evaluation was seen as a way to make sure building owners and the City are properly informed about existing risks, and as a way to motivate more voluntary retrofit work. Triggered upgrades were also discussed favorably, though some felt this kind of uncertain timeline was not appropriate for risks that city leaders have concluded are unacceptable. There was support for using combinations of the options for different building types, so that some building types would have more stringent requirements than others. Many members of the Advisory Group, though not all, were positive about including mandatory requirements for some building categories (Option 5). PERSPECTIVES ON DISCLOSURE MEASURES AND INCENTIVES Along with these options, the group discussed how COPA could utilize a variety of disclosure measures and incentives. Disclosure Measures Once introduced to the rationale and precedents for use of disclosure measures, the group supported the idea of making the list of buildings affected by the current and any future ordinance update more prominent and available to the public. The group regarded the City’s website and possibly tenant notification as the best ways to do this, while they had less interest in community education efforts. There was some concern that placing notice on the title would not be worth the initial and ongoing efforts necessary to keep such information current. The group discussed extensively but ultimately expressed relatively low support for signage or placarding, unless this tactic was used later in a program as a penalty for failure to comply in a timely manner. Incentives to Undertake Seismic Retrofitting The group was eager to discuss possible incentives, from the standpoint of both facilitating prompt action and easing the burden on owners. Incentives were viewed as particularly important to the success of any voluntary program. Most of the group were in favor of the City offering modest financial help in the form of City fee waivers or expedited permitting, but acknowledged that these measures may not significantly help the property owner lessen project costs. Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 297     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 5 Therefore, there was wide agreement that these should not be the only types of incentives offered. There was interest in having Palo Alto join the small but growing number of jurisdictions that have joined statewide PACE1 loan financing programs, though it is not clear how many potentially affected property owners would benefit from or actually take advantage of this kind of help. The group expressed minimal interest in pursuing ways to offer owners deep financial assistance, such as declaration of special district or passage of bond measures. Opinions were split about the effectiveness of using transfer of development rights (TDR)2, floor area ratio bonuses, and parking exemptions. Some participants felt their constituencies would not benefit, or would be negatively impacted, by these measures. Others felt that such concessions on the part of the City would be a very effective way, as they have been in the past, for motivating earthquake improvements without issuing heavy mandates. Relaxation from parking provisions for example, could be seen as a helpful incentive to commercial property owners, but it would less desirable for tenants and others seeking parking in congested parts of the city such as the downtown area. Allowing conversion of a portion of ground story parking to occupied residential space as an incentive to spur retrofitting of soft-story wood frame buildings was discussed, as this is being considered in other jurisdictions. It was noted that parking is a desirable feature to renters and this may not be strong incentive if rental rates are reduced due to lack of parking. Some policy incentives, especially the complicated TDR, might be administrative challenging to implement and will require deep cooperation with Planning Department and coordination with the City’s general plan. PREFERRED POLICY DIRECTIONS Discussions with the Advisory Group revealed little to no support for maintaining the status quo. Strong support did exist for:  Implementing retrofit of buildings already in the current program, particularly URM buildings.  Addressing more building types, particularly soft-story wood frame and older concrete tilt-up, that would affect the most people. Completion of the City’s Current Seismic Program For buildings under the current ordinance, the Advisory Group generally thought a mandatory retrofit requirement would be feasible and fair. Three decades later, market forces alone have not 1 With a Property Assessed Clean Energy (PACE) loan, first pioneered for solar panels by the City of Berkeley in 2008, owners can apply for 100 percent financing for seismic retrofit work at competitive fixed rates over the useful life of the improvements, to be repaid over up to 20 years with an assessment added to the property’s tax bill. 2 TDR allows owners to transfer unused development rights that are comparable to the value of the retrofit to another property in the community. In other words, in exchange for completing certain seismic rehabilitation work, additional development rights are gained elsewhere. This is a common measure used for historic structures. Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 298     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 6 been enough to motivate upgrade of these structures. Because the barriers to retrofit work for these properties are not known, case-by-case management by COPA staff may be necessary. There was hesitance, however, about extending or increasing incentives for owners that had not voluntarily taken advantage of the FAR bonus available in the past. Extending the Seismic Program to Other Potentially Vulnerable Building Types In the discussion of expanding the scope of the City’s seismic program, the goal was to focus on a subset of categories that seemed to have high potential to benefit the owner, occupants, and the broader community. Consultants briefed the group on structural types generally known to be vulnerable that are common or significant to Palo Alto and estimated to have reasonable loss reduction to retrofit cost ratios. Detailed conversations took place about other building category priorities and policy features that could be incorporated into Options 3, 4, and 5. The group showed high interest in addressing multi-family residential earthquake risks, in particular by starting a soft-story wood frame program as many other California cities have done. One soft-story wood frame program approach discussed was to have two phases, where owners would first be given several years following notification to do a voluntary retrofit, along with more generous incentives. Later, a mandatory timeline would kick in and incentives would be phased out. The group discussed that exemptions such as parking requirements, permission to add other unit(s), or the ability to transfer development rights for additional square footage would likely be attractive and useful incentives for this building type. Other building categories of concern were reviewed at the last meeting. Regarding pre-1998 tilt- up concrete buildings, there are a modest number in Palo Alto, but group members noted that their uses are changing. Many of what previously might be warehouses are now being repurposed for use as office space, and the higher occupant density increases the safety stakes of any seismic deficiencies. There is currently no policy or code requirement to address earthquake vulnerabilities if other upgrades and build out are being done but there is no significant impact or revision to the structural system. A renovation trigger was discussed, where substantial renovation work would trigger a mandatory seismic upgrade. The trigger could be based on whether a ratio is exceeded of the cost of the renovation work to the replacement value of the building. This has been done in some jurisdictions in the past. The replacement value could be based on a standardized set of costs per square foot for different occupancy types. It should be noted that some individuals in the group expressed concern that a renovation trigger might discourage owners from upgrading or renovating their buildings, depending on the trigger threshold and the cost of the retrofit. POTENTIAL ISSUES FOR FUTURE STUDY For some issues, based on Advisory Group discussions, additional information may be beneficial to help in refining a new strategy and to better understand potential impacts on key stakeholders Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 299     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 7 and community concerns. These issues are primarily economic and are outside the scope of the current study. The City Council may wish to direct staff and/or outside consultants to investigate some of these items in more detail as the seismic risk management program effort proceeds. Issues include the following: • Occupants and tenants – How much would a typical retrofit add to the monthly rent of a multifamily soft- story wood frame apartment tenant? – Would some tenants be unable to afford a rent increase and seek housing elsewhere in Palo Alto or move outside the city (and if so, how many might be displaced)? – If soft-story wood frame apartments in Palo Alto are retrofitted in time before the next major earthquake, how much less displacement of residents would occur as a result of the earthquake? – What categories of buildings are most important to address in order to help maintain the commercial viability and vitality of the City’s core business districts and tax base? • Property owners, developers, and business owners – What are the characteristics of property owners that would be affected? – How might small businesses be affected compared to larger ones? – How many property owners are in need of lower cost capital or other substantial financial assistance to fund retrofitting? • City departmental resources and budgets – What would be the loss in revenue to the Building Department if fee waivers were offered? – What would be the staffing and budgetary needs over time to administer an expanded program that addresses additional building types? – What kinds of interdepartmental cooperation and staff resources in other departments are necessary to ensure effective implementation and coordination with other city planning and public safety efforts? • Overall community economic health – What kind of benefits could accrue to Palo Alto in terms of maintaining community function and ability to recover if various building categories are retrofitted in time before the next major earthquake? • Other related issues Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 300     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 8 – It was brought up that the Building Department needs flexibility and authority to take steps to get tough seismic mitigation projects done. One idea was to grant the Building Official the ability to classify certain projects (with well-specified criteria) as warranting a kind of “seismic safety” or “earthquake resilience” fast tracking, with COPA departments agreeing to coordinate on a specified accelerated project review timeframe. – Although outside the formal scope of this planning effort, several Advisory Group members commented that it would be desirable for the City to do some kind of assessment of any earthquake mitigation needs in public buildings and facilities serving the City. – Advisory group members recommended the community be informed of Palo Alto’s overall potential seismic risk by providing a summary of potential impacts on the City’s website, including the expected performance of vulnerable buildings. – The group also had a high degree of support for recommending that the City initiate and nest future earthquake mitigation programs within a broader disaster or community resilience initiative, as cities such as Los Angeles, Berkeley, and San Francisco have done. This could be incorporated in the update of the City’s Comprehensive Plan Safety Element. There was insufficient time in the project’s six advisory group meetings to consider potential initiatives to assess risks for cell phone towers, water supply, facades, private schools, post-earthquake shelter facilities, and/or other assets important to community recovery. SUMMARY OF RECOMMENDED POLICY DIRECTIONS There was broad consensus that the City’s seismic program should go beyond the status quo by increasing the number of building types that are included and the associated requirements. The following table summarizes the City’s current seismic risk management program features, and it provides recommended policy directions for different types of building categories, both for those in the current program and those proposed to be added to the program, including the approximate number of affected buildings, construction type and date, evaluation report and construction completion deadlines, potential preferred disclosure and incentive options, and whether retrofitting remains voluntary, is triggered by a sale or a substantial renovation, or is mandatory. The following summarizes the key issue of whether voluntary, triggered, or mandatory approaches were preferred.  There was broad consensus that seismic retrofitting for the remaining URM buildings (Category I) should be made mandatory.  There was general agreement that soft-story wood frame buildings (Category IV) and somewhat general agreement that older tilt-up buildings (Category V) should require Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 301     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 9 strengthening either by a sale or substantial renovation trigger or on a mandatory fixed timeline.  There was less of a consensus on whether the older higher occupancy buildings in the current ordinance (Category II and III) should be converted to use a mandatory approach, though a triggered approach may represent a reasonable middle ground.  There were supporters, but no clear consensus, for voluntary, triggered, or mandatory approaches to addressing older soft-story concrete buildings (Category VI) and older steel moment frame buildings (Category VII).  Other older nonductile concrete buildings (Category VIII) were discussed, but due to the lack of inexpensive analytical methods for reliably identifying the worst of these buildings, inclusion of this building category in an updated ordinance is not recommended at this time. Such buildings could be included in the future when such analytical methods have been developed in the engineering community. Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 302     City of Palo Alto Seismic Risk Management Program Advisory Group Summary Report on Process, Discussions, and Outcomes November 21, 2016 10 Summary of Recommended Policy Directions Category Approx. Number Building Type Date of Construction Occupants Evaluation Report Voluntary, Triggered, or Mandatory Retrofit1 Deadlines for Evaluation Report and Retrofit Construction (years)2 Disclosure Potential Incentives Current Program (Potential Revision in Italics) I 10 Un- reinforced masonry NA Over 6 (and over 1,900 sf) Required Mandatory Report: Expired Construction: 2-4 Website listing and tenant notification Fee waiver, expedited permitting, FAR bonus/ transfer of development rights (TDR) II 4 Any Before 1/1/35 Over 100 Required Voluntary or Triggered Report: Expired Construction • Voluntary: Not required • Triggered: At sale or renovation III 9 Any Before 8/1/76 Over 300 Required Voluntary or Triggered Expanded Program IV 294 Soft-story wood frame Before 1977 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Fee waiver, expedited permitting, TDR, parking exemptions, permission to add units V 99 Tilt-up Before 1998 Any Required Triggered or Mandatory Report: 2-4 Construction • Triggered: At sale or renovation • Mandatory: 4-6 Same as above Same as Categories I, II and III VI 37 Soft-story concrete Before 1977 Any Required Voluntary, Triggered or Mandatory Report: 2-4 Construction • Voluntary: Not required • Triggered: At sale or renovation • Mandatory: 6-8 Same as above Same as Categories I, II and III VII 35 Steel moment frame Before 1998 Any Required Voluntary, Triggered or Mandatory VIII TBD Other older nonductile concrete Before 1977 Any Not rec. at this time Not recommended at this time Report: NA Construction: NA NA NA 1Voluntary: Retrofit is voluntary. Triggered: Retrofit is triggered when the building is sold or undergoes substantial renovation. Mandatory: Retrofit is required per a fixed timeline. 2Deadlines provide a potential range. Timelines would vary depending on tiers or priority groupings of different subcategorie s. Item 2 Attachment C - Palo Alto Seismic Risk Mgt Prog AG Summary Rev 2016 11 21     Packet Pg. 303     Item No. 3.Page 1 of 3 Policy & Services Committee Staff Report From: Chantal Gaines, Deputy City Manager Meeting Date: August 8, 2023 TITLE City Council Referral to Discuss and Recommend Council Procedures and Protocols on: Censure Policy and other City Council referrals related to the City Council Procedures and Protocols. CEQA status - not a project. RECOMMENDATION Staff recommends that the Policy and Services Committee discuss the referral from the City Council related to Censure Policy and make a recommendation to the Council for inclusion in the City Council Procedures and Protocols Handbook. BACKGROUND AND ANALYSIS The City Council discussed the City Council Procedures and Protocols Handbook on January 30 and March 20, 2023 and adopted the most recent version on April 24, 2023. The City Council referred a few discussion topics to the Policy and Services Committee during these discussions. The Committee has made progress on these referrals and the progress is included in parentheses next to the referrals listed below: 1. Procedures Section 1.1: Annual Organization of City Council (P&S discussed on May 9, 2023 and requested staff to bring this to City Council in the 4th quarter for City Council to evaluate whether a ballot measure should be placed before the voters1). 2. Procedures Section 5.1a(4): Video Participation for Public Comment. Staff noted that this would be studied and, if found feasible, it would just be implemented instead of it being a discussion at Committee. This exploration language was included in the April 24th Adopted Handbook in this section. 3. Procedures Section 8.2: Censure language was referred to committee for review (discussion planned for August 8, 2023). 1 May 9, 2023 Policy and Services Committee Agenda Item number three (3): https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12150 Item 3 Item 3 Staff Report     Packet Pg. 304     Item No. 3.Page 2 of 3 4. Protocols Section 2.2: Refrain from Lobbying Board and Commission Members. (P&S discussed this with Board/Commission Chairs on June 13, 2023 and recommended language for Council consideration2). 5. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions. (P&S discussed this with Board/Commission Chairs on June 13, 2023 and recommended language for Council consideration3). 6. Protocols Section 4: International Travel (P&S Discussed on April 26, 2023 - Staff to bring back a brief draft to P&S in Q3). 7. Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to discuss the establishment of appropriate parameters for Council discretionary expenditures and whether to allocate $2,000 annually from the Council contingency fund for each Council member to decide its purpose. These topics are being scheduled to Committee throughout the year to balance workload. The topic highlighted for Committee discussion at the August 8, 2023 meeting is the Censure Policy Draft Language. If time allows, the Committee can share thoughts about any other of the referral topics listed above. Staff previously shared draft language outlining a procedure for adopting a resolution of censure against a Council member with the Policy and Services Committee on December 13, 20224 and subsequently with the City Council during the Handbook discussion. That language was not accepted by the full City Council and the City Council asked the Committee to work on this topic more (summary minutes of the January 30th City Council discussion are below). 2 June 13, 2023 Policy and Services Committee Meeting agenda item number two (2): https://cityofpaloalto.primegov.com/Portal/Meeting?compiledMeetingDocumentFileId=8289 3 June 13, 2023 Policy and Services Committee Meeting agenda item number two (2): https://cityofpaloalto.primegov.com/Portal/Meeting?compiledMeetingDocumentFileId=8289 4 December 13, 2022 Policy and Services Committee Agenda Packet: https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=8939&compileOutputType= 1 (pdf page 50 for early draft censure language) Item 3 Item 3 Staff Report     Packet Pg. 305     Item No. 3.Page 3 of 3 Excerpt of the January 30, 2023 Summary Minutes (related to the Censure section)5: At the April 26, 2023 Policy and Services Committee meeting, the Committee requested that Staff return to the Committee with updated draft language. Staff attached some updated draft Censure language to this staff report as a starting place for the Committee discussion of language to present to the City Council. The draft is included as Attachment A to this report. FISCAL/RESOURCE IMPACT No fiscal impact. ATTACHMENTS Attachment A: Updated Draft Censure Policy Report #: 2307-1782 5 January 30, 2023 City Council Meeting Summary Minutes: https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=1126&compileOutputType= 1 Item 3 Item 3 Staff Report     Packet Pg. 306     Draft: City Council Protocols and Procedures Handbook Section 8.2 Enforcement Draft Language for Review: City Council Protocols and Procedures Handbook Section 8.2 Enforcement 8.2 Enforcement (a)Purpose: This policy provides the mechanism by which the City Council may adopt a resolution of censure or take other disciplinary action expressing the Council's disapproval of the conduct of a Council member if the Council finds, subject to the procedures set forth herein, that a Council member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council. (b)Should two or more Council members believe that actions by a Council member are inconsistent with federal, state or local law, this Handbook, or any other document adopted by the Council, those Council members may use a Colleagues Memo to schedule public discussion of the matter at an upcoming City Council meeting. A Colleagues Memo may initiate a discussion of Councilmember conduct and Council expectations, may propose that Council protocols be clarified or a new protocol be included in this Handbook, or may propose initiation of disciplinary action. Proposed disciplinary actions may include: (1)Admonition. An admonition may be directed to any or all members of the City Council, reminding them that a particular type of behavior is in violation of law or City policy, and that, if it occurs or is found to have occurred, could make a member subject to sanction or censure. An admonition may be issued in response to a particular alleged action or actions, although it would not necessarily have to be triggered by such allegations. An admonition may be issued by the City Council prior to any findings of fact regarding allegations, and because it is a warning or reminder, would not necessarily require an investigation or separate hearings to determine whether the allegation is true. (2)Direction to Correct. The direction should be given to the subject Councilmember to correct the result of the particular behavior that violated law or City policy. (3)Informal Reprimand. The reprimand should be directed to the subject member of the City Council based on a particular action (or set of actions) that is determined to be in violation of law or City policy, but is considered by the Council to be not sufficiently serious to require formal censure. (4)Resolution of Censure. A resolution of censure may include the Item 3 Attachment A- Updated Draft Censure Policy     Packet Pg. 307     Draft: City Council Protocols and Procedures Handbook Section 8.2 Enforcement imposition of sanctions against the Councilmember as a majority of the City Council deems appropriate, as allowed by law. Such sanctions may include removal from a committee and restrictions on City-related travel privileges. (c)If a Colleagues Memo proposes censure or other discipline of a Council member, the Memo must contain the specific charges on which the proposed discipline is based. Completed Council Colleagues Memos shall be provided to the City Clerk’s staff by noon on the Thursday 11 days prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Clerk to process for the Council packet. The City Clerk will deliver a copy of the Colleagues Memo to the Councilmember who is the subject of the memo no later than the Thursday 11 days prior to the meeting at which the memo is agendized. (d)The Council member who is the subject of the proposed disciplinary action may address the matter in writing or at the Council meeting or both. If the Council member submits written materials, those must be published in a supplemental packet, no later than 72 hours before the meeting. (e)During the Council meeting at which the Colleagues Memo is agendized, the Council will decide, by majority vote, whether: (1)A formal disciplinary hearing should be agendized for a future City Council meeting; (2)Further investigation of the charges is required; (3)An admonition should be issued; (4)Council protocol should be clarified or a new protocol should be introduced; or (5)No further action is necessary. (f)If the Council determines that further investigation is required, the Mayor (or the Vice Mayor if the mayor is the subject of the proposed disciplinary action) may designate an ad hoc committee to conduct the investigation. The Council may select an independent investigator to assist in conducting the investigation. The independent investigator would be managed by the committee or individual designated by Council to conduct the investigation. The Committee shall conduct an investigation and arrive at a recommendation regarding the request and report its conclusions, findings and a summary of its proceedings to the Council at its earliest opportunity. (g)Council Consideration: Upon receipt of the report of the ad hoc Committee, the City Clerk shall place the matter on the Council's next agenda in order for the Council to receive the Committee report and determine whether a censure Item 3 Attachment A- Updated Draft Censure Policy     Packet Pg. 308     Draft: City Council Protocols and Procedures Handbook Section 8.2 Enforcement hearing is warranted. If the Council decides to set the matter for censure hearing, it shall schedule the hearing no sooner than three weeks after its determination to hear the matter. The Council shall not schedule the matter during any previously scheduled excused absence of the subject Councilmember. (1)The Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) will designate a Council member responsible for preparing and submitting to the City Clerk a censure resolution and supporting materials by noon on the Thursday 11 days prior to the Council meeting that the hearing is intended to be agendized, to provide time for the City Clerk to process for the Council packet. The Council member will submit the draft resolution and supporting materials to the City Attorney’s Office no later than the Thursday 18 days before the hearing, to give the City Attorney’s Office adequate time to review the materials before publication. The City Clerk shall deliver written notice of the hearing, along with the report, proposed resolution, and supporting materials, to the Councilmember subject to the censure the Thursday 11 days prior to the Council meeting for which the hearing is agendized. (2)The Council member who is the subject of the proposed disciplinary action may address the matter in writing or at the hearing or both. If the Council member submits written materials, those must be published in a supplemental packet no later than 72 hours before the hearing. (3)At the disciplinary hearing, the Councilmember who is the subject of the request for disciplinary action shall have the opportunity to rebut the allegations in the censure resolution and to question any known accusers if they agree to be questioned. The member subject to the charges may be represented and may have the representative speak or question on their behalf. The questioning or cross-questioning of witness may be reasonably limited by the Mayor or Vice Mayor if the Mayor is the subject of the proposed disciplinary action. Testimony shall be taken only from witnesses having direct knowledge of facts or circumstances relevant to the specific charges under consideration. However, the rules of evidence and judicial procedure applicable in courts of law shall not be apply to this hearing, and the procedures shall be generally informal. (h)Disciplinary Action. If, at the close of the hearing, a majority of the City Council finds that the subject member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council, the Council may take one or more of the following measures: (1)Admonition. An admonition may be directed to any or all members of the City Council, reminding them that a particular type of behavior is in Item 3 Attachment A- Updated Draft Censure Policy     Packet Pg. 309     Draft: City Council Protocols and Procedures Handbook Section 8.2 Enforcement violation of law or City policy. (2)Direction to Correct. The direction should be given to the subject Councilmember to correct the result of the particular behavior that violated law or City policy. (3)Informal Reprimand. The reprimand should be directed to the subject member of the City Council based on a particular action (or set of actions) that is determined to be in violation of law or City policy, but is considered by the Council to be not sufficiently serious to require formal censure. (4)Resolution of Censure. The City Council may, by a majority vote, adopt a resolution of censure based on clear and convincing facts supporting the allegations of misconduct giving rise to the censure. A resolution of censure may include the imposition of sanctions against the Councilmember as a majority of the City Council deems appropriate, as allowed by law. Such sanctions may include removal from a committee and restrictions on City-related travel privileges. Item 3 Attachment A- Updated Draft Censure Policy     Packet Pg. 310