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HomeMy WebLinkAbout0310.091!] 1 I I • July 3, 1991 HCNORABU Cln COUNCIL P.10 Alto, C.1ffor.i. o lind Use ReyeQue Analysis Study: Consultant Agrgement Helbers of the Council REPORT IN SRI Ef 16 Tnis report and attachments reconmends City Councf1 approval of • budget amendment in the amount of $25,000 and a consultant services agreement for prey~ration of the land Usa Revenue Analysis Study. BACKGROUND The purposes of this land Use Revenue Analysis Study are to have a professional land use econ~mi5t analyze deSignated commercial areas wi'~i~ Palo Alto and, w;t~in the context of Comprehensive PTan policies, suggest strategies for the City to realize higher revenues and/or to encourage upgradir19 of t"ese areilS. Targeted cornnerchl areas include m<Jst commerc;a1 frontage along [1 Camino Real. the three neighborhood shopping centers, and the California Avenu! business district. In addition, the Study will eva1uate potential effects of the 6S,OOO-square-foot expansion cap on the Stanford S"opping Center. On Jan~ary 22~ 1991, in response to a finance and P~blic Works Committee recommendation that endorsed this limited land use re~enue analysiS studJ, the City Council directed staff to initlate a consultant selection process for such a revenue analysis study and ret~rn to Council witn a selected consultant and budget amendment for the study. Subsequently. a Request for Proposal (RFP) •• s sent to twelve firms for prospective proposals. A Consultant Selection Advisory Committee was formed at Council endorsement that consisted of the following individuals: 1. Emlly Harrison, Director of finance 2. George Zimmerman, Assistant Planning Official 3. Pat Cullen, Planning Commission ~. Chop Keenan, Chamber of Commerce 5. Will Beckett. Co.aunity Repres.entative The Consultant Selection Advisory Committee rewiewed ten writter. proposals znd selected fiye consultants for oral presentations. At the conclusion of the Dral presentations on ~ay 10, 1991. the Consultant Selection Advisory CMR:310:91 ..;{, ... C",' ..i • 1 I 1 j I I I , Q o Co..1ttee recommended the firm of Gruen Grue~ * AssGciates to pr~pare th! study. The Advisory Comm1ttee's recommendation was based on the quality of Gruen Gruen + Associltes' proposal in addressfng t~e study's Scope of Work, the (ira'5 presentation and the firm's extensive experl!nce in related studfes and project •. Once the contract Is executed. staff estimates that the studY will require approximately six DOnths for completion. Pursuant to the earlier City Council directive. the study's final report initfolll will be forwarded to the Planning Cu.ission felT review and possible rec:ornnendat.ion prior to City Council consideration of this study. RECO!!!£NIlAT!ON Staff recoomends that the City Council appro.e the attached Budget Amendment Ordinance In the amount of $25,000.00 and appro •• and ;uthorize the Hayor to execute the attached agreement for consultant services with Gruen Gruen * Assocfltes for preparation of t~e land Use Revenue Analysis Study. \ '. R.s~ctf"11y s itted ~~. ning Offic;.l '7f:;) {ft..L;[L, £. JtA'UJt ~ K~~' R. SCHREIB(R Director of Planning and Conrnunity Environment Attachments: Budget Amendment Ordinance Agreement for ProfeSSional Consulting ~er¥ices ~ith attachments Consultant's statement of services Excerpt: City Ccunc11 minutes of January 22. ]991 (c: Planning Commission Architectural Review Board C~amber of Commerce Stanford Univers;ty (Su Shaffer, Andy 00t1, Ph1] W;ll;ams) All neighborhood associations CHR:310:91 p: \CHR\Cnsul Sty 7/3/91 Page 2 . --.'-'--"~~ · . I o o ORDINANCE NO. ORPINAN::E OF TIlE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET POR THE FISCAL YEAR 1991-92 TO CREATE AN ADDITIONAL APPROPRIATION FOR PREPARATION OF A LAND USE REVENUE ANALYSIS STUDY WHEREAS, pursuant to the provisions of Section 12 ot Article III of the Charter of the City ot Palo Alto, the council an June 24, 1991, did adopt a budget for fiscal year 1991-92; and WHEREAS., on January .12, 1991, the City Council directed staff to initiate ill consult~nt selection p~ocess for a revenue analysis study in response to a Finar.ce Committee recommendationj and WHEREAS, a Request for Proposal (RFP) 'Was sent to twelve firms and a consultant selection Advisory committee was formed to revie~ the proposal; and WEEREAS, the Consultant selection Advisory committee recom­ Bends that the firm of Gruen, Gruen and Associ~tes be selected to prepare the study; NOW, THEREFORE, the COUncil of the City of Palo Alto does ORDAIN as tollows: SECTION 1. The sum of Twenty Five Thousand Dollars ($25.000) is hereby appropriated to contract Services in the Planning Division of the Planning and Community Environment Department and the Reserve for Capital Projects is correspondingly reduced. SFCTICN 2. This transaction will reduce the Reserve from $3,692.662 to $3,667 1 662 as of June 30. 1991~ SECTION 3. The Council of the City of Palo Alto hereby finds that the enactsent of this ordinance is not a project under the Calitornia Environmental Quality Act and l therefore, no environmen­ tal impact assessment is necessary. SECTION 4~ Municipal Code, adoption. As provided in Section 2.04.375 of the Palo Alto this ordinance shall become effective upon INTRODUCED AND PASSED: AYES: NOES: ~ST~IONS: ilSs1lllT, "l'7'l1st-, o o I I !J I I I o A G R E E MEN T BETWEEN THE CITY OF PAW ALTO AND GRUEN GRUEN + ASSOCIATES FOR o PREPARATION OF A LAND USE REVENUE ANALYSIS STUOY THIS AGREEMENT is made and entered into this ___ day of ______ ~# 1991, by and betYeen the CITY OF PALO ALTO~ a municipal corporation ot California~ hereinafter referred to as ·CITY~· and GRUEN GRUEN + ASSOCIATES, a California corporation (Taxpayer Identification No. 94-1752381), ~ith offices at 564 Howard street, San Prancisco# CA 94105~ hereinafter referred to as ~OONSULTANT·; • I T H B SSE T H: WHEREAS, CITY desires certain professional services hereinafter described; and WHEREAS, CITY desires to engage conSULTANT to provide these services by reason of its qualifications and experience for performing such services, and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein; NOW, THEREFORE~ in consideration of their mutual covenants, the parties hereto agree as followS: SECTION 1 -DEfINITIONS 1.1 CITY MANAGER The term ·city Mar.ager" shall mean the duly appointed city Manager of the City e:! Palo Alto, California~ or his designated representative~ 1.2 CITY CLERl( The term ·City Clerk-shall mean the duly appointed City Clerk of the City of Palo .Alto~ california. or her designated representative~ 1 9107'0] bcIc: 003D317 ,"---" /' o o 1.3 RJSK MANAGER The term -Risk Manager" shall mean the duly appointed Risk Manaqer ot the city of Palo Alto# California# or his designated representative. 1 • " PRO.lE'C'f The term Consultant of a Land further descr ibel3 in herein by reference. -Project-shall mean the preparation by Use Revenue Analysis Study for the City, as Exhibit -S-, attached hereto and inco~rated SECTION 2 -PROJECT COORDINATION Tbe city Manager shall be representative of CITY for all purposes under this Agreement. George Zimmerman is designated as the PROJECT MANAGER for the City Manager# and he shall supervise the progress and execution of this Agreement. 2.2 CONSOLTANT Ms. Nine Gruen shall be representative of CONSULTANT for all purposes under this aqreement. SECTION 3 -SCOPE OF ~ERVICES The scope of the services to be performed by CONSULTANT is described in the section labeled -Study Scope-of the Proposal dated March 12, 1991# a copy of which Proposal is attached as Exhihit -A-, and incorporated herei~ by reference. SECTION 4 -DUTIES OF CONSULTANT 4.1 BASIC SERVICES Unless othenrise indicate~, CONSULTANT shall perform those services described in Exhihit WAM. 4.2 ~DOITIONAL SERVICES 2 P101U3 I:d;: 00l0J11 '": ' .- 'I ~ r, • / o o CONSOLTANT shall perform or obtain any and all of the follovinq additional services, not included under Basic Services, it so authorized in writing by CITY, and shall be paid as provided in Section 6 of this Agreement: 4.2.1 connection 'With proceeding of a Providing services as an expert witness any public hearing, arbitration proceedinq, court of record. in or 4.2.2 Incurring travel and subsistence exoenses tor CONSULTANT and her staf.! beyond those normally required under Basic Services. 4.2.3 aqreed upon :by the Agreement. Performing any other parties subsequent to 4.3 GENERAL QUIlES OF CONSULTANT serv ices that may be the execution of this .... J.1 CONSULTANT r-epresents that it is experienced in the preparation of studies such as the one contemplated :by this Aqreem~nt, and is qualified to furnish the services described under this Agreement. CONSULTANT further declares that employees of its .firm and those of its subconsultants are likewise qualified to perform their services and that these services 'Will be performed by them. or under their supervision. 4.3.2 CONSULTANT shall furnish CITY ~ith every reasonable opportunity for CITY to ascertain that the services of CONSULTANT are being performed in accordance 'With the requirements and intentions of this Agreement. SECTION 5 -DUTIES OF CITY 5.1 CITY shall provide full information regarding its requirements of CONSULTANT, as ... ell as copies of all relevant studies, data and other information "ow'hich is in City's possession. 5.2 CITY shall examine documents submitted by CONSULTANT and shall render ctecisions pertaining ther-eto promptly, to avoid unreasonable delay in the progress of CONSULTANT's ~ork; provided, however, all written work submitted by CONSULTANT for review by CIT¥ shall have been edited tor grammatical and typographical correctness as well as for substance. 3 , o o 5.3 CITY shall furnish information required by CONSULTAlw"T as expeditiously as possible, SECTION 6 -PAYMENT payment shall be mace by CIT~ only tor services rendered within 30 days after sub~ission in triplicate of monthly progress payment requests. Each monthly proqress paYlllent request (invoice) shall be itemized as to the amount requested for the work completed to date, the cumulative amount invoiced~ and the balance remaining. Invoices shall be directed to the attention of the PROJECI' MANAGER. 6.1 QQNSULTANT'S FEES In consideration for the full performance of the Basic Services and reimbursahle expenses described in Section 4.1 of this A<]reeuent, CITY agrees to pay CONSULTAN'I' a fee not to exc~ed Twenty-five Thousand. Dollars ($25,000.00) for the services described in Section 3. at the rat~s described on page 8 of EXhibit ·A .... 6.1.1 SUbcons'\Jltants~ Fees for subconsultants" hired. directly by CONSUL~A.~T, shall be included in the amount set forth in para9raph 6.1. 6.1.2 For Additional Services. For CONSULTANT's additional services, as described in Section 4 of this Agreement, compensation shall be in accordance ~ith the Consultant's hourly fee schedule set forth on page a of Exhibit -A-, plus e~enses to be aqree~ upon in writing before the performance of such services. 6.2 PAYMENT SCHEDULE 6.;Z.1 For Basic _services. Payments for Basic Services shall be made in progress payments in accordance with the provisions of the initial paragraph of Section 6 hereof. Final payment shall be made by CITY after CONSULTANT has submitted all required documents and received approval thereon. 6.2.2 For Additional Services. paymer.t.s for additional services o£ CONSULTANT as defined in Section 4 shall be made as part of the monthly progress payments for services rendered. • 110m bdt: 0Cl0317 ", ' . . )- " , , l J II tJ , ' t " , o o 6~2~ 3 Payment uno" Suspension or hband.2Dl!!!ent of PrQ1ect~ I~ the Project is suspended by CITY for more than three (3) aonths or abandoned in whole or in part by CITY, CONSULTANT shall be paid its compensation for services performed prior to receipt ot written notice from CIT¥ of such suspension or abandon­ ment, together with additional and reimbursable expenses then due. If the Project is resumed after beinq siJspencleQ, CONSULTA1:T shall continue to be paid 1n accordance ~ith the fees for basic services set ~orth in this section 6; provided, however, if the suspension contributes to the inability of CONSULTANT to provide the services set forth in section 6 for the -not to exceed-amount set forth in Paraqraph 6.1.. any chanqe in CONSULTANT I s compensation shall be subject to renegotiation and, if necessarf, approval by the Palo Alto city council. If this Agreement is suspended or terminated for fault ot CONSULTAN'I', CITY shall be obliqated to compensate CONSULTANT only for tbat portion of CONSULTANT's services which are of benefit to CITY in producing specific Plan that is adequate and in compliance with Chapter 19.06 of the Palo Alto Municipal Code and with state law. SECTION 7 -PROGRESS AND COMPLEXION 7. 1 TIME IS OF THE ESSENCE It is understood and agreed that time is of the essence of this Agreement, and that,. following receipt of Notice to Proceed, CONSULTANT shall commence work. Work shall proceed in accordance with the time schedule set by the Project Manager. 7 .2 CITY' S RE'Y:EH AND APPROVAL If any review by CITY is required by this Agreement. the CITY will exercise due diliqence to complete such review: however. it is recognized that the interrelated exchange of information among CITY's various departments makes it impossible to set a specific time schedule. Normally. th~ CITY's estimated period of review and approval will be furnished to CONSITLTANT at the time of submission of the work. 7.3 EXTENSION OF TIME OF COMPLETION In the event the services called for under this Agreement are not completed by CONSULTANT ~ithin the time specified, CITY shall have the option to extend the time of completion. This para­ graph does not preclude the recovery of damages for delay of either party. 5 910703 tac 003Q317 , J , ! 9107'0:] b:ic 0030J1'J" ----------------------- 6 \~~~> jl.· ____ f-,-:,:' " c..:;--;.;.,." ........... ....;;...~_ o , . o slCTroN 8 -CHANGES IN WORK CITY may order major changes in scope or character of work, either decraasinq or increasing the amount of CONSULTANTls services. In the event that such changes are ordered, CONSULTANT shall be entitled to full compensation for all work performed prior to receipt of notice of change. Increased compensation for major chanqes shall be determined in accordance with section 6 of the Aqreement, but in no event shall CITY be liable for payment unless the amount of such extra compe~sation shall first have been agreed to in writinq by CITY. In the event that major chanqes are ordered pursuant to this section, the 5chedule for progress and completion in Section 7 of this Agreement and compensation shall be adjusted by negotia­ tion between CONSULTANT and CITY, subject to approval., if neces­ sary, by the Palo Alto City Council~ SECTION 9 -TERMINATION OR SUSPENSION or AGREEMENT CONSULTANT may ter&inate this Aqreettent or suspend work on the Project upon thirty (30) days' written notice to CITY, but only in the event of substantial failure of performance by CIT¥ or in the event CZTY abandons or indefinitely postpones the Project. 9.2 CANCELLATION BY CITY Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the riqht to terminate this Agreement or suspend work on the Project for any reason, upon fifteen {lS) days I written notice to CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice. 9.3 COMPENSATION Qf CONSULTANT IN THE EVENT OF TEMINATION OF THIS AGREEMrtIT In the event of termination oC this Agreement or suspension or work on the Project by either CITY or CONSULTANT, CONSULTANT shall receive compensation as follo~s: 9~3.1 For approved items of service under section 4 of this Agreement, co~pensation shall be in the amount outlined 7 910703 bdc 0Il3CJ17 I /' o unde~ Section 6 of this Agreement for the items of service fully performed by CONSULTANT. 9.3.2 For items of service on 'Which a notice to proceed has been issued by CITY~ but whtch have not been fully coapleted and approved, CONSULTANT shall be compensated ~or said service in an a~ount whiCh bears the same ratio to the total fee otherwis.e payable tor the performance of said service as the service actually rendered bears to the total service necessary for the full performance of said item of sendee. 9.3.1 In no event shall the total compensation paid in the immediately rrecedinq paragraphs exceed the payment specified in Section 6 for the respective items of service to be furnished by CONSULTANT. 9.4 DUTIES OF CITY AND CQNSUL1AN1 Upon termination of this Agreement or suspension of work on the Project by either CITY or CONSULTANT. all duties of CITY and CONSULTA}I.'"1', as set forth in Sections 4 and S hereinabove, shall tez.-.inate .. SECTION 10 -CONSULTANT'S ACCOUNTING RECORPS Records of the following expenses pertainin9 to the Project shall be kept by CONSULTANT on a generally recognized accountinq basis a.nd shall be available to ClTY at mutually convenient times: 10.1 Direct personnel expenses .. including consultant expenses. (See section 6 o£ this Agreement.) lO~ L 1 Expenses pertaininq to Additional Services. (see Section 6 of this Agreement.) SECTION 11 -OWNERSHIP OF pocuMENTS 11.1 Subject to the provisions of Paragraph 11.2 below, all documents prepared by CONSULTAN'l' in the performanc.e of this. Agreement. althouqh instruments of professional service. are and shall be the property of CITY 1tI'11ether the environmental ilnpact report is certified or not. 11.2 Upon termination under Section 9 of this Agreement and upon CITY's payment of the amount required to be paid under same 8 / o section, the oriqinals and all calculations, studies and similar dOCWlents become the property of C!TY, and CONSULTANT shall transfer the. to CITY u~ request without additional compensation. CITY sball have the right to utilize any information and documents prepared hereundEr by CONSULT&VT; however, CITy shall indemnify CONSOLTANT aqainst any loss which may be caused to CONSULTANT by such use and reuse. SZCT10N 12 INTEREST OF CONSULTANT: CONSULTANT INDEPEN- pENT OF CITY In accepting this Aqreement, CONSULTANT covenants that it presently has no interest, and shall not acquire any interest., direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services here­ under. CONSULTANT further cover.ants that. in the performance of this Agreement, no subcontractor O~ person having such an inte~est shall be employed. CONSULTANT certifie.s tl1at no one who has or will have any financial interest under this Agreement is an officer or employee of CITi. It is expressly agreed that in the performa~e of the professional services required under this Agreement CONSULTANT, and any of its subconsultants or employees, shall at all times be con­ sidered independent contractors and not agents or employees of CITY. Notwithstanding the foregoing, it is the express intentiou of the parties hereto that CONSULTANT shall not perform as or be considered a ·Consultant-within the meaning of the Political Refor. Act (Title 9 of the California Govsr~ent Code}. SECTION 13 -OUTSIDE CONSULTANTS CONSULTANT shall be responsible: for employinq all outside consul tants (subconsul tants) necessary to aid CONSULTANT in the performance of the services listed in Section 4 of this Agreement; provided, however, that all such subconsultants shall receive prier approval of CITY in writing and shall remain ~cceptable to CITY during the term of this Agreement. SECTIQN 14 -INDEMNIT¥ CONSULTANT. agrees to indemnify, defend and hold harmless CiTY, its officers, agents and employees from any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, caused by or arising out of CONSULTANT IS, its officers I, agents', subcontractors' or 9 o employees' neqligent acts, errors, or omissions, or willful misconduct, or conduct tor which the law imposes strict liability on CONst7LTANT in the performance or failure to perfo:rl!\ this Aqree:aent. SECTION IS -INSURANCE ~5.1 LIABILlTY INSURANCE 15.1.1 CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect throughout the entire term of this Agreement, the insurance coverage described in Exhibit -A·, insuring not only CONSULTANT and its subcontractors, if any, but also, with the exception pf ~orkers' compensation and employe­ rs'ability insurance, CITY, its officers, agents and employees, and each of them, with respect to activities and services performed by CONSU~AN1 for or on behalf of CITY under the provisions of this Agreement. 15.1.2 Certiticates of such insurance. preferably on the forms provided by CITY, shall ~e filed ~ith CITY concurrently with the execution Of this Agreement or., with CITY's approval. within ten (10) workinq days thereafter. Said certificates shall be subject to the approval of the CITY Risk Manager and shall contain an endorsement stating that said insurance is primary ccveraqe and will not be canceled or altered by the insurer except after filing with the city Clerk thirty {30J days' prior written notice of such cancellation or alteration, and that the City of Palo Alto is named as an additional insured 'except in policies of professional liability ir.surance). current certificates tlf such insurance shall be kept on file at all times durinq the term of this Agreement with the City Clerk. SECTION ] 6 -WORKERS' COMPENSATION CONSOLTANT, by exec'.!tinq this Agreel!',ent., certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability tor workers' compensation or to undertake self-insurance in accordance with the provisioT,S of that Code, and certifies that it will comply with such p~ovisions before commencing the perform­ ance of the work of this Agreement. 10 '101'03 brX: 00)0:]17 { , :1 ~ I / o SECTION 17 -AGREEMENT BINPING The terms, covenants, and conditions of this Aqreement shall apply to, ~nd shall bind, the heirs, successors, executors, administrators, assigns, and subcontractors of both parties. SECTION 18 -NONASSIGNASILITX 18.1 PEBSOlfAL SERVICES CF CONSULTANT Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot. be transferred, assigned or subcontracted by CONSULTANT without the prior written consent of CITY .. 18 .. 2 SERVICES OF SUBCONSUT.TMT AND THEIR EMPLOYEES CONSULTANT shall be responsible for employinq or engaging all persons necessary to perform the services of CONSULTk~ here­ under. No sUboonsultant of CONSULTANT will be recognized by CITY as sucb_ rather, all subconsultants are deemed to be employees of CONSULTANT, aDd it aqr-ees to be responsible for their performance. CONSULrAKT shall give its personal attention to the ~ultillment of the provisions of this Agreement by all o~ its employees and sub­ consultants, if any, and shall keep the work under its control. If any employee or subconsultant or CONSULTANT fails or refuses to carry out the provisions of this Agr-eement or appears to be incompetent or to act in a disorderly or improper manner, he or she shall be discharqed immediately from the work under this Agreement on de~and of CITY. SECTION 19 -RELIANCE UpoN PROFESSIONAL SKI !.II OF CQNSUI.TANT It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in t.'le professional calling necessary to perform the ~ork agreed to be done hereunder and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perfC"'rm the work. The acceptance of CONSULTANT's ~ork by CITY does not operate as a release of CONSULTANT from saiQ obligation. 11 91{17iI3 bctc: 00l0l17 • o SECTION 20 -WAIVER:> Tbe w4iver ~y either party of any breach or violation ot any term, covenant, or condition of this Agreement or of any provision, ordinance, or law shall not be deemed to be a waiver of any other term, covenant, condition, ordinance, or law or of any subsequent breach or vio~ation of ~he same cr of any other term, covenant, condition, ordinance, or law. The $ubseq~ent acceptance by either party of any fee or other money which may become due shall net be d3emed to be a waiver hereunder by the other party of any term.. covenant, or condition of this Agreement or of any applicable ~aw or ordinance. SECTIQN 21 -NO IKPI.IEO 'WAIVER No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its riqhts under this Aqreement. SECTION 22 -COSTS AND ATTORNEYS' FEES The prevailing party in any action brought to enforce the teras of this Agreement or arisinq out of this Agreement may reoo~er its reAsonable costs and attorney fees expended in connection with such an action from the other party. SECTION 23 -NONPISCRIMINATION; PENALTY 23.1 DUTy OF QQNSULTANT No discrimination shall be made in the employment of persons under this Agreement because of the race, color, national or191n, ancestry, religion or sex of such person. If the value of this Agreement is, or may be, Five Thousand Dollars ($5,000) O~ more, CONSULTANT agrees to meet all requirements ot the Palo Alto Municipal Code pertaining to nonc'!iscr-imination in employment and to complete and submit the ·Compliance Report--Nondlscrimination Provisions of city of Palo Alto contracts· on the form fUrnished by CITY and set forth in Exhibit ·A-. CONSULTANT agrees that each agreement for services from independent providers shall contain a provision substantially as tollows: 12 9107113 bdc D03fD 17 • ') ! r • / o o -PROVIDER shall provide CONSULTANT with a certificate stating that he (or she) is cur:r"ently it': compliance ~ith all Federal and State of California laws coverinq nondiscrimination in employment; that he (or she) will pursue an affirmative course. of action as required by the Affirmative Action Guid.elines of the City of Palo Alto; and that he (or she) will not discriminat~ in the employment of any person under this contract because of race., color, national origin, ancestry~ sex or religion of such person.- 23.2 PENALTX FOR pISCRIMI~ATION If CONSULTANT is found in violation of the nondiscrimina­ tion prov~s~ons ot the state of California Fair Employment Practices Act or similar provisions of federal law or executive order in the performance of this Agreement, it ~hall thereby be found in material breach of this Aqreement~ The~eupon, CITY shall have the power to cancel or suspend this Agreement, in whole or in part, or to deduct from the amount payable to CONSULTANT the sum of Twenty-five Dollars ($25J for each person for each calendar day during which such person was discriminated against, ~s damages for said breach of contract, or both. Only a findinq of the State of California Fair Employment practices Commission or the equivalent federal agency or officer shall constitute evidence of ~ violation of contract under this section. rt CONSULTAN'l' is found in violation of the nondis­ crimination provisions of this Agreement or the applicable affirmative a~~ion quidelines pertaining to this Agreemen~, CONSULTANT shall be found in l"'.aterial breach of this Agreement. Thereupon, CITY shall have the power to cancel or suspend this Aqreementj' in whole or in part, or to deduct from the amount payable to CONSULTANT the sum of Two Hundred Fifty Dollars ($250) tor each calendar day during which CONSULTANT is found to have been in such noncompliance as damages for said breach of contract, or both. SECTION 24 -ARBITRATION Upon agreement of the parties any controversy or claim arisi1l9 out of or relating to this Agreement may be settled by arbitration in accordance with the Rules of the American Arbitra­ tion Association, and juc\gment upon the award rendered by the Arbitrators may be entered in any court having juriSdiction thereof. f --_/_-- • SECTION 25 -NOTICES All notices hereunder shall be given in writ!nq and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the city Clerk 250 Hamilton Avenue Palo Alto, CA 94303 To CONTRACTOR: Attention of the PROJECT DIRECTOR at the address ot CONSULTANT recited above SECTION 26 -ALL CQ~ANTS ARE CONDITIONS All provisions of this Agreement are expressly made conditions. SECTION 27 -AGREEMENT CONTAINS ALL UNDERSTANDINGS; AHlNrnmwr This document represents the entire and integrated agreement between CITY arad CONSULTANT and supersedes all prior negotiations, representations, and agreements. either written or oral. This document may be amended only by written instrument, signed by both CITY and CONSCLTANT. SEc..-.rrON 28 -GOVERNING L1\W This Agreement shall be governed by the laws of the state of California. 9111'7CJ bdc: 00lm1 7 .- -' G :1 ! --.-,; :nL -eJ-! 991 89 : 3'9 F'RtI1 P."" DllfITIIPS WHEIUIOF. \:.lI. part i_ bento hav~ .,."""'_ thb ".,...=at. t.ha 4&1' and ~.. firat aboVe vri t.tlUl. M'TIIS'l'I city Cieri siiiIor Met.. City Att.o:rney ,,1naft08 blrect.ar APPI<OYBO AS TO CONTElrt: DI~or of Planninq , c-un1ty Bnv1ronaent CITY 01 PALO ALTO Mayor PROPOSAL, CONTAIKlIfC" a. SCOPE 07 SIlRVICES 1>. BILLUG RATES C. INS\1IWICE <1. JIONI)ISCRIKIIlATlOII COIIPLIANCE REPOR'I' 15 TOTf<. P. a2 , , j -r ~-. --.. o Ge0r<1. J: imaerman l!anaqer, Pl anning Proj act. Palo Alto Planning Departllent P. O. Box 10250 250 IImoilton Avenue Palo Alto, calitornia 94301 Dear Itt. zlmmerman: Karch 12, 151'511 Gruen Gruen + Associates (CG+A) is pleased to Bubmit this proposal to provide the city ot Palo Alto with intormation identifying commercial sites oftering additional revenue opportunities within tba context of the city's comprehensive Plan policies as well as intormation analyzinq designated commercial areas in terms of their potential tor upqradinq~ OCR UNDERS TANDING OF '1'IIE PROBLEM We understand that the City or Palo Alto is •• eking outside expertise to evaluate th~ir major commercial .itas and to identify which are suitable for uses that can brinq more revenue to the City without vlo1atinq current planninq regulations or creatinq unacceptable environmental e~tects. The selected consultant will also be respcnsible for evaluating those commercial areas that appear to be economically staqnant in order to identify which economic and/or physical factors are holding them back. The consultant is also to consider whether existing planning regv_lations are inhibitinq ravenue-er~anclng redevelopment or remodeling. The purpose of this analysis will be to identify wbat measures may be necessary to realize more potential Gruen Gruen ... Associa'e~ 564 Koward Street San Franasco. CA 94105--3002 Tar: (415) 433-7598 FAX: (415'1 989-4224 • \- < -.~ -, J I 1 • • / Georg. Zilllll1enoan lfarch ~2, 1991 Page -2 - revenue from those stagnant sites. This analysis viII include an evaluation of tho •• factors that can be positively influenced by a change(a) in city policy aa distinct trom those over which the City has only liaited to no influence. Fin&lly, the coneultant will analyze the likely ettects of the currant 'S,OOO-square-toot qrcwth cap on the stanford Shoppi.ng Center. THE FDIM' S PRINCIPALS WILL BE RESPONSIBLE FOR CONDOCTrNG 'l'HE ANALYSIS Dr. ClaUde Gruen and Ms. Nina Gruen, the firm's principals, will take priaary responsihility for evaluating the opportunity areas, those com.ercial area. that .ay be econoaically stagnant and the potential impact of maintaining a 65,OOO-square-foot qrowth cap on the Stanford Shoppin; center. Because the hudget is limited, it is important to rely on expertise that iB based not only on many similar real estate/retail evaluations~ but also upon an understandinq of deaographic and lite style changes that will influence f'Jture consumer behavior as well as upon major changes in the retailing industry. An eX~le of the tormer is now that the baby-boom qeneratlon is -'O-somethinq-, they have shifted their expendituras from clothing and car purchases to home-oriented goods and recreational and entertainment experiences a An example of the latter or major changes in the industry is the doubling o '" " Georqe Zimmerman Karch 12. H91 Paqe-3- of the sl~. of supermarkets (trom 25,000 to 50,000+ square teet), Which hali reaulted in the obaolese~nce of many oldar aaa~ler-.ized neighborhood cQnter8. The biographies of the principals aa well a. atatt •• abers who will a.slot in the analyais are appended to this proposal. In addition, examples of previous retal1inq studi .. and references ara also attached. We would like to point out that the City ot Scottsdala write-up describinq bow the principals belped that city attract million. of dollars in increased sal •• revenues was authored by tbe Planning Department staff. Two articles on tbe retailinq industry, authored by Ms. Nina Gruen, -Retailing Fundamentals: Problems and Solutions· and -The Retail Battleground: Solutions For Today's Shi~tinq Markets·, describe some of the key economic, .ark~t and industry chanqes taking place in today'. retailing environment. COpies of the •• articles are. also enclosed a. veil as two examples of siailar studies. TIlE 't'lIREE STUDY PIlltPOSES GG+A will evaluate the stipulated opportunity areas (typically five+-acre parcels) to identify which sites bave potential ~or near-term development (within the next five years) and which would require a lengthier time frame to develop. An evaluation of the usefulness ot the recently approved Botel combininq District will be a component of the overall opportunity analysis. • J " -., .. ;".....": " " o Georq. Z u-arman !larch 12, 1991 Paq. -4 - An analy.l. of three neighborhood shoppinq centers -tbe California District and the urban Lane/Town • Country area and Xl Camino Real south ot stanford Avenue -will be undertaken to identify tho •• constraints limiting the future Viability ot these .it.s and which mechanisms, if any, ar~ likely to be aucceBstul at ovarooainq these constraints. The thir4 purpo.e is to evaluata the 65,OOo-square-toot expansion cap of the Stanford Shoppinq Center from the perspective as to What extant this cap is likely to restrict Stanford Shopping center's future ability to compete with other dominant .Bay Area regional centers. S TODY SCOPE Gruen Gruen + Associat •• (GG+A) will work with City Stafr ~rom the Planning and Finance Depart.ente to conduct the following work tasks: 1. Site visit and review ot all pertinent Comprehensive Plan and zoninq raqulations as they apply to the pertinent sita •. The purpose of this task i. to identify any Bite (l.e., size of lot, access, adjacent uses) constraints as well as planninq and/or regulatory constraints (i.e., heiqht or FAR .j > 1 i f '. o George zixmea"" )Iarcll 12, 1991 paqa-5- liaitationo, u •• limitationa, parkinq requireaento). ~. Evaluate actual an~ relative 8ale. performance o~ the retail sr ••• by analyzinq data trom co.puter run. ot data avaIlable on a confidential baais to the Palo Alto Pinance eepartment fro. tbe state Board ot Equalization. We will work with the Pinance Department or, if they prefer, directly with their consultant in order to obtain from them collpater runs on aales by type of store for each of the locations to be otudied for the period July, 1988 throuqh December, 1990. rbe computer runs will be analyzed u8inq procedures that GG+A has developed in order to gain insiqht into the relative health ana productIvity of each location in the light of the retail aarkets each serves and standards of retail pr04ucti vi ty. 3. Heet with Planninq Department statt to identity present and future retailinq supply inoluding non-shoppinq center-/atore-related retail revenues such as sales offices and entertainment uses. sales offices, which typioally locate in low­ rise officelshowroom space, are high sales tax o Georq. J:~erlUl" MArch U. 1991 Paqe-6- -. dollar qenerator. at the aam. time inducln9 few neqative externalities 8uch aa traffic, It is aleo iIlportant to idantify locatio". to g.rv. new retailinq trends such aa antertaimae:>t cClJlPlexea, In the de=de of the gO·., entertainment and recreational facilities can be expected to absorb a far larger share of the consumer'. disposable dollars. 4. Interview public officials and City atatf to discuss backqround tor current City policIes affecting the designated propertie •• vhat policy chanq ... if any. they would b_ will in; to consider end what types ot aarket opportunitlaa have b.en co.inq before the Planninq Commission and City Council with respect to tha properties under study .. 5. ..et with .ember. ot the bus in ••• community and property owners, business owners, tenants and real estate experts that have direct ta.ailiari,ty with the study areas to discuss their perspective at market opportunities and constraints. 6. Gruen Gruen + Associates will synthesize Tasks 1-5 above and prepare a preliminary draft of tindinqs and recommendations and vill submit this draft report to staf~ tor their review. We will rely on city Planning Depa~ent staif to pr~vide appropriate site location graphics ----. Georq. Zimmerman llarch 12, l.991 Paqe-7- --;.; .- ~& •• 4 on GG+A'. land use analysis and rae_tiona. We will submit a tinal dnn copy to tha Finane. and PUblic Works comaitt •• tor their review and com.en~ and a tinal document, including tbe d •• iqnated qraphics, to the city council tor their review and action. S~AFF RESPONSIBILITY I will be. in overall charqe of this proj ect .tor Gruen Gruen + Associates. Working closely with me will be Dr. Claude Gruen and Hr. JUles Wood. Descriptions of" the backgrounds of these staff mambers are attach.d~ We ask that you appoint somaone to whoa we should look for general direction on policy decisiona on behalf of tha City of palo Alto. We will .... intain close lial"on with this individual. DURA~ION AND cos~ Wo are prepared to meet the time schedule outlined in the City's RFP and to begin work on Kay 20th. We w11l. cOllllllit our best effcrts to meeting the August 1st administrative draft deadline but this commitment is predicated on obtaining timely back-up from Staff. our charges tor professional services are based on the actual time devoted to your project by our personnel billed at .-, • . ~. ~ ':".'--,~-<-' ........ " o George Z.1.m:merman March 12, 1991 Paq" - 8 - standard rat... Coaputer time i. charqed at .tandard co .... er­ ci&l rat .. or 1.... EXpense. aueh aa for travel, communica­ tion and report reproduction will be invoiced to you at their cost to us. Invoices will be submitted on a monthly baais and ue payable upon receipt. Your lIIAXimua budqat of $25,000, includinq auxiliary expenses, is extr .. ely tiqht qiven tbe amount of vork that baa been called tor -evan vith the u •• of considerable expertise. The f!r.'s ~ principals will jointly commit up to 100 hours of tbeir t!.e and vill also aqree to qive tbe City a 25 percent disoount on their 1991 atandard hourly billinq rate ot $200. An estillate ot thll number ot hours and hourly rates are presented :below. llt". Claude Gruen Nina G!:Uon ~ib:>d Sa::tetadal SUppJrt XIscel.lanocus E"l' _, i. e. tz:::awl, CII:SpUter.. FAX, pba>e 50 50 70 50 "IP"". 12t 150 150 S5 65 7,500 7,500 3,850 3,250 2,900 25,000 • --- t I ACCEPTABCE ,'. Geor90 ZiDlerman March 12, 1991 Paq. -9 - We are very .nthu8iaBti~ about the possibility of workinq with you on tnt. p~ject. If you have any questions concern­ inq the work ouClined in this proposal, plea •• do not hesi­ tat. to qive Be a call. If you would lIke UB to proceed to work along these qeneral linea cutlined above, please sign and return the unbound copy at this proposal to us. Accepted tor TIlE CITY OF PALO ALTO By Title _______ _ oat .. NG:smc Very truly yours, GRUEN GR1lEII + ASSOCIATES A California Corporation By2J~~ 111& Grue.n Principal Eeonemist • ,- " o CITY of PALO ALTO DB,. ']; -WieR nrnTXl!G SWID DQpQIALI CERTIFICATION of NON-DISCRIMINATION As propoaer of goods or services to the City of Palo Al tc, tile firm listed below certifies that. it 40es not discriDinate in its employment with r8;9arde to race, religion, creea or national origin; that it. is in aompliance 'With &l~ Federal, State and local directives and executive orders reqardinq non-discrimination in employaent; and that it aqrees to demonstrate positively and aggressively the principle of equal opportunity in employment, The COt.JSOLTANT a.grees specifically: 1. To establish or observe employment policies which affirma­ tively promote opportunities for Dinority persons at all job levels. 2.. To communicate this policy to all persons conce.rned, including all company employees, outside recruiting services, especially those sarving minority communities., and to the minority communities at large. J. To take affirmative. steps to hire minority employees within the company. Gru!n Gruen + Associates Firm~ __________________________________________________ _ Officer Siqning'r-__ N_i_n~a __ ~~ru,·_" ______________________ ~D~a~t~e~:_l_!7_,_q_l __ _ Si9'nature ~. ~ • Please include any additional information available regarding equal opportunity Employment programs now in effect vith:n your company. See next page for our Affirmatfvi! Action/Equal Opportunity Employment Commitment. Note: Dependinq upon project, additional forms for Affirmative Action or related requirements may be requested • ...... IIl'lIt9. ...' • " " \ l . / . /' • o EQUAL EllPLOYMEIIT POLICY A!II) Al'FrRHATlVE ACTl:ON COMMlTMl!:N'l' Gruen Gruen + Associates (GG+A) ~ a va •• n bualneslI anterpri .. (waE). has and will continua to co.ply with the appl1cat>h lawe. ardara. rul .... and reg-ulationa prohibaing diacr1a1nation 1n job opportunities offered to e.ployee. or applicant.. Our continued succe •• depend. heavily on etrective utilization or qualified peraons. regardle.s of r.c.~ reliqlon, color, aq~, ancestry, sex, sexual orientatIon, national origin or physIcal handIcap. a.cognlzL~ our obligation and bec.u •• it i,. good bueiness. w. wUl hire and develop the be.t people we can rind to fill any job. All 48clsion. on biring and praotion .,111 be .ade on the baai,. of job-related qualification •• We intend that no d1acriainatory practice. be used in .attars related to recruitment and reoruit.ant aavartis­ inq, hirtnq, upqradinq, training, proBotions, compensation, banefita, transfers, layoffs, recall trom layofts, company­ sponsored educational, and social and recreational programs. All transfera, advancements, or promotiQns will continue to be .ada after comprehensive reviev and analysis of personnel records.. All of these 8lIployment decisions viII be based on job-related criteria. special attention will be given to ensure that all women and minority .-ploy... receive ~al consideration. OUr Director of Personnel will have responsibility for the overall direction of tbe Afti ...... Uve Action Progr .... We intend not only to be nond1scrialnatinq in our posture toward total eMpleyment, but .ore positively, to take aggressive end positive steps to full and equal participation at all employees in tbe opportunities L, our company. Fifty-four (54) percent of the Co.pany's stock is ovne4 by Nina J.. Gruen. currently, 33 percent of GG+A's permanent staff are women and 22 percent minority. o CITY of PALO ALTO JUT II -'101"" DV'UDQ spum PROP9Sl.L8 EXPERIENCE AND FINANCIAL QUAl .IFICATIONS The fcllowinq stateaents ot experience and financial qualifica­ tions of proposer are a required as a part of the proposal. The inforwation is certIfied correct by slqnature on ·proposer's Signature Paqe-. rb1. pag. 8U'$ be eowpl.te4 if not ipcluded 1ft ratt XII 0' PBCPO,aL, Name of Company: Gl"'Uen GrlJl!'n + AS50ciates 1. Bow many years have you done ~siness under the sallie name'? 21 2~ Hew many years experience have you had which is siDdlar in nature to the work covered in the ~roposal? ZI 3. Provide references to contracts satisfaotorily ~ompleted in the last three (3) years: Year lype of Service Contract. Mount (Please see attached 5he~t) Location and Company I Agency (Please provide additional sheets) (. Provide a list of the Office{s) of the proposer ~hich are in the Palo Alto (Bay Area) area that will be available to the Project Manager or Engineering on this project: (Address, Phone and Contact Person) 564 Howard Street San Frand seo. r..a. ~ln5-3D02 415-4ll-759~ Contact Person: Nina r.rlJerl (Please provide additional sheets if necessary) cny Of' PAID AL'""ICOHS\1LTAHT IFP .... ·' /' • 0 CITY of PALO ALTO DBf II -JIOUQI D!1~ 'pIm DOPQ'N,' tRKperience and linopsfll Qualificatigns. continued) 5. Provide name., address.s, and sub-projects ot any subqon­ aUltanta that would be uaed in your consulting efforts. (Please provide additional sheets if necessary) ~uen Gruen + Assotfates (Name of! company) -.... ..... Several catb:&....""ts, total «rreed f D; $100,000 $50,000 $5,000 .1:1 1990: ~ .~. City ~ lloJ.y City BIu:l:lan Hill, Aaa1st:snt City IIOI\Oqer City ~ Kcnterey DaWay EVatB, Flrzn:ls Oirec:tor/ City~ / o o CITY of PAW ALTO 'MT XI -lfOIl'XeJ X",fila ,.IIp D.OlOOW prgj'eti; OOHlDLfU17 # S I'ClOD'II lAal Land Use SWdy 'l'b& undaraiqr.e4 hereby certifies that, ,Urectly or indirectly, they or their representatives and agents have not been collusive with other parties interested in this request tor proposal. CONSOLTAlI'r ia a: __ ~' ____ ,california Corporation, or a ______ Corporation under the laws of the state _______________ _ vith head offices located at. _____________________________ _ and offices in California at.~~--~~--~----~----------------- (Attach addendum if necessary) _______ SOle Proprietorship, or. _______ JPartnership (list names of partners; state: which. partner or partners. are manaqing partner(sJ. (Attach acklandum). _______ Other (Attach addendum specifyin~ details). Dated March 7, 19.,.2L (ContinUed •• xt P.~) '(iniil Grue~ Printed Name o£ Signatory Principal SOcic109'5tfE~ecuti~e Vice Presfdent Title 564 Howard Street Address of Consultant San Francisco, CA 9410S-30n2 ,. . -~--.------- CITY of PALO ALTO PUT XI -IIOUeI uyuprq. SnLE!) PRQPOSlILI (Continued) ?raj act; Land Pea study 94-115l38! San Francisco, c." 94105 Vendor's Tax 1.0 .. MUlIlber 415-989-4224 City, State, zip of Proposer 415-433-7598 pacsimile Num/:>e.r Telephone Number During the request for proposal process there may be changes to the REP documents which would require an addendum. To assure that all proposers receive the update or change addendum, the followinq acknowledqement and sign-off is required. NOTE: Failure to execute the following may be considered as an irregularity in the bid. Receipt Qf the following addendum{s} issued during the time of bidding is acknowledged, and the information contained therein has been considered in the preparation of this proposal. Acldendum No. (lfone ___ l. (1 __ 1. (2 ___ l. (3 __ 1. C4 ___ 1 (Check appropriate space) Icoo..: 11JPO. -'-.. \ ~ ...... ---;.,.....------ Q . City of Palo Alto Insurance ~equlrements lor Contractors Official COl<TRACT OESCAI.-rION Land Ose llevenue Analys1..s Study CClHTRAC10RS 10 THE CITY OF PAlO AUQ, /it THEIR SOtf EXPENSE, SHAU OBTAIN AND MAlNTAIN INSURANCE FOA T~E TERM OF THE CCJNTRACT. CONTRACTORS WJLL BE REQUIRE ~ PO PRQl/fDE A CERTIFICATE EVtOENGI NG THE INSURANCe AND NAMING THE CITY AS AN AODmONAL INSUREO THE CERnflCPJ"E OF INSlJRANCE MUST SE COMPlETED AND EXECUTED BY AN AUTHORtZEO REPRESeNTJIJ1¥E OF mE:. CO!I.'IPANY PROIJIOfNG INSURANCE. FILED WITH THE CITY, ANO APPROVED BY fHE CITY'S R:SK MANAGER 8EF~E THE CONTRACT WILL BE CONSIDEREO COMPLETE AS RESpeCTS INSURANCE. THIS [NSTRUCllON SHEET SHOUlD BE GIVEN 10 YOUR [NSURANCE AGENTfBROKER WITH THE REOU IRED CERTlACATE FORM RETURN 'THE COMPLETED CERT1F~E 10 THE cm OF PAlO AlTO COOTRACTlNG PEPA1=ITMEN't THE INSURANCE COVERAGES CHECKEO BEl.OW ARE. ,:IEQU(REC FOR nils CONTFlACT_ ~ GENEUl.. UAeIUTT ~ -......,... """'" • BROAO FORM PAOPatrY 0AM.-c.E • Bt..ANKfT COHTRA.C'nMJ. • ARE LEGAl. UABIUTY COIiIPfIa<SISlVt AUlOMOEItLE" lIAB1llTY .cwotHG: • """"0 · .. ,"'" ·NON~O QTIl Of PIUO AUC 1$ TO B! NAWnI AS A" ADOltlOttAL WWREn IH5URAHCE C!RTJi'ICAfe 1lE0IJlR£C "".000 k. The City os ~ J,ItD, its Qt(icer... agef'."-¥CS.mo.~ ,lie !'\&m.e<: as. ad.d<t~ "'tsu.re<1. but Qn~,. as. tQ WOik oertC«r\~ ",MeT CQn'fOiId 5~ld ci:l'Y'l!'rag,e as ,10 the-City of pP) .'.lID,. tile.. IhalI be-ptimillry COYerIt9I!. Wlt1'1o<.rr cf'IseI: "9~ns! Crl'{s e&lshr'19 inSlJ.I'ance ill"''' aI1y OIr'1e' inSlFance c~me<l by me C,:y being~~~y. e ~ the"OlilClOr; irMlhres gradir:19. ~ns:. eXQVatirlg:, c:rI1lO'!g. eN Ol~ u""ergrcu"" ~ me ~ICY 'netuclS lle-struC'ltOl'I 01 "OIWlreS, COI\I,1u,u. ~,pes. m~'''s.. at 00ter .similar property or aJTy ~allI$ In coru'lectlOJ\ tne'rewllh b~ the-5oLJr1ace at tne grour'1d wllellWl O'WTIed by thl~ poVtrt's at 1M C,I}' Qf Palo AlIQ. c.. Whine the IIIQI'\. ~ ~ng. eoI1apw CIJIO'II~ II prQVId~ r. IN .-mournS ~ . D. The poI"cy incfudQ .. ··5n'erabilily at 1nCIlrn:!~ ~$lOrl. E. DedudibIe5 ewer S5.OOO.ooo must be indiCated and ~ sub,ed to IW'O'V<II F. • ~ pofic;es are cancel\ecl or chan~ d~ing ttle period 01 CO\Ier~g.e n $Wed h-ef1!1n tf1 suc:l"l .. manl'lel as nl afleet IhlS Cer'hr;caJe, tMIM)' (30) d~~ MTI1en ~ice win be mUed II;) Itle City c1 Palo .1-.:10. ~,$lI. aA.a.l'la!1lT'. PO SOlI W25.Q, Palo • .Ito, CaJ,IOHU.a 9ol.JO.). G The l.abi~ry iI1SUQn~. pofrc:y inCIude$ ill con!r6d~allia~l~ ~Gr!>f'men1 prcw-d'rlg 'lTtSu~n!;. COlter"g. 'lor I::Qnl'actol'So ISI'lemeru ltl indemnity tr1e ell)' H. The c;gyoeragt aItOrtIe<I undtf the pclre-.es is $ubje-d Ie ~t! "'e '\emIl (!! au' ~1'C~5 aes'gr1ated t1et'1!!", !flC! r::1lelS -an tI'Ie ;lrCVl$loCn$ (alfed for herel~ ·'>L= ~ -f .,:~ .... - iL_·. CITY OF PALO ALTO PROJECT DESCRIPTION: lNIl liSE REVENUE AIIAl.YSIS The City of Palo Alto desires I) information identifying tommerti.l site$ offering additional revenue opportun;tf~s within the context of Comprehensive Pl.n polities and 2) information analyzing designated commercial areas in terms of their upgrading potential. purppse The results of the study are expected to inform decision makers and members of the community on 1) sites offerlng potential ~~venue Dpportunities to the City; 2j measures necessary to realize these opportunities; 3) factors limiting upgrading in designated commercial areas; and 4) effect of 6S,OOO·square·foot growth t.p on the Stanford Snopping Center. See attached tx~ib;ts fOT commercially zoned areas to be studied. OPPORTUNITY AREAS include: 1. Urban lane/Town and Country Village Area; and 2. [1 Callino Real, south of Stanford Avenue to the Los Altos/Mountain View tity l;.it •. P:\&Z\LandU.e Page I ... , o o These .r.as have relatively large sites that currently appear to b. underutlllzed. In addition, portIons of £1 C.mlno Real hov. 10rge-or DOder.te·slzed sftes that Ire efther planned for or are currently undergoing red.velo~nt. Tbls trend illustr.te. the type of redevelopment that Is occurrfng in t~tse areas and tn! extensive time frames that are often necassar] before n~ development reflects changes in publ:c policy. As an exa.ple. in these [1 Camino locations, land use a~d development poltcy for portions of El Camino Real changed with approval of the Comprehensi,' Plan In IS7S and with opproval of the then new zoning ordinance in 1978. In evaluating opportunity sites, professl0nal comment would be solicited on the potentIal effectiveness of the recently approved (H) Hotel C~bining District (i.e., oyerTay zone], both in te~s of the FAR bonus prOVision (0.6 t. I versus 0.4 to I in the underlying CS District) and in terms of the sites where It Is currently applied (Ric.ey's Hyatt and Dinah's). If the Hotel Coobialng District ;s determined to be potentially .ffectiv., comment would be SDlfcited on sites where it could be conSidered for future application. CONHERCIAl AREAS tD be evaluated for facters limlting upgrading include: J~ The tnree neighborhood s~oppfng centers. i.e.~ Edge~Dod Plaza, Charleston Center and Alma Plazaj 2. The Californ;a Business District; and 3. Ttle Urban lane/Town and Country A.rea and n Camino Real south of P: \GZ\landUse Poge 2 '/ . ".~ ---'",' o ,,,, Stanford Avenue. In the course of such analysts of thes! areas, information on constraints for potential upgrading or development of specific sites or ar •• 5 would be equallJ infonaative and beneficial to decision aakers~ Such information would be requested for areas front1ng [1 Camino Real and for t~Q types of commercial areas where physical improvements Dr upgrading to existing properties have not occurred to I significant degree in recent years. They are I} the three neighborhood shopping center •• I ••.• Edg.wood Plaza, Charl.ston Center and Al~a Plaz., and 2) the Calif.mi. Avenu. BUSiness District. The focus of this latter .nalJ.is would include an evaluation of .11 llkelJ constrl;nts or dlsincentfYes to property upgrading including but not li~ited to exfstfng regulations, location, acceS5 and size of site. THE STANFORD SKOPPI~ CENTER will be .valuated in terms of pot.ntial effects of the 6S,OOO-square-foot expansion cap. The Stanford Snopplng Center, which generates approxi.ately 25 perc.nt of the City'5 taxable sI1es revenues, sho~Td be examined fn order to determine if t~e current growth ea~ Df 65,000 additional square feet, imposed on the shopping center it the conclUSion of the Citywide land Use and Transportation Study. limits the potential v1abtlity of this re9ional shopping center relatfve to bot~ 1t5 potential growth in sales and to its position am~n9 the major regional 5~Dpping centers in Santa C1ara and San Mateo Counties. Page 3 " "-'- / .': :,->[ .-: < o o StydV SttOS 'ad ltvg1 pf Oet.,l T~is lind use revenue Inalys~s essentially will prDvide l broad overview, ritner than a detailed type of response to the infDrmation a~d recommendations requested In t~ls study'. scope of work. Procedural steps of t~e study would reQ~ire the selected econ~mist 1niti.lly to re~1ew the CitJ~5 Comprehensive Plan policies and commercial district regulations (e.g., (S, CH, CC and (H) Combining District) for an understanding of adopted pollelt. and zoning regul~tions. Tne economist then wo~ld review the types and magr.it~de of City revenues from development·related sources. Then, the economist would examine the desfgnated commercial areas and sites to identif, jJ constraints, and 2) opportunities for ~pgrading that could expand revenues fer the City. lastly. th:e ec.onOillst would .submit to tfle City findings on tne land use analysis. and recommendations for realizing expanded revenue opportunities. P:\&Z\landUse Page 4 .. , ",' - GAAPHIC ATTACH1'.EHT DATf: 11-13-' - TO STAFf REPORT FILE NO. PROJECT: UNO USE A:EVEHU!E I .... PACT ANALYSIS s.TUDY "AEA~S,-_,f --~----'---~-­" . L EXHIBIT I - NORTH • \ ' • '. it ~:' .' .-' ,---' I: L L #- ) " - I r~~fiT1'1lIll1J"7YTIPiW"-ilijM~n\iWS"l" It!M~~f,':'.;II'IIf;lIl':l~'\>o(=>>>-'::> ., ..... , I'" '! •• "';llJpplffltJ.-llrl'~V;]j --. «J GRAPHIC ATTACHMENT TO STAFF REPORT PROJECT:~ _______________ --_"_"_'-__ "_'_o_"-_o;,..·-----11 '*'(' -.,\ .- '\ I 1'1 ~ 01 -I I t ·l , '.,.,."­ , ~~i'*;J.jl_ -1 ',' ... ,. , --1 __ '_·-;_·_"-_".C ... "_~" ___ . ___ -... ~.:"''!'-.;~.':f7',-;:;'~" .... :) EXHIBIT III • '\ NORTH - • , .. -:-::;.. ,-.I c"~'"'"~~ i~ .•• ",. 'j •. /~. '1 _'''0 '?" I -" ;--~. I , · --------.---------~-------------:------- , , " o 10. Finance. Public Wo~ks Committee re Land Use Revenue Analysis (U1) (CKR:S71:0) KOTZOW: Council Kember Fazzino fer the Finance and Public Works (P'PW) Committee moved that the Council direct staff to initiate a consultant selection process for Land: Use Revenue Analysis and return to the council with a selected consultant and a. bu4qet amendment to proceed with the study; .further, that a tiered approach be given to the study and that the analysis first be reviewed by the Planning Commission and the resulting recommenda­ tions from the Planninq Commission be presented to the council at the same time as the consultant's study. vice Hayar Fazzino said Council Kember McCown's amendcent at the F'PW committee meeting to have the Planning Commission ~evie~ the work of the consultant to assure absolute and total consistency with the Comprehensive Plan ~as ey.cellent. The item was a critical aspect of the council's 1990 economic vitality goal and the intent "'.as for Council to have adequa.te information regarding the economic impact of projects in the City, to act smarter economically, and to support tax revenue qenerating uses without the ne.ad for additional square footage or qreater impacts on the City~ council Meaber Renzel asked why goinq above the expansion cap vas in the motion if it 'Was consistent with the Comprehensive Plan. CITY COUNCIL MINUTES ~2r""(,4{t.( .:;.; / ~'"$~ I .. '<',',: ...... ' > • ;.-:!;,~.:" .""-'> ~~-.' 65,000 square foot to be absolute 1y 65-251 01/22(91 -------------------------------":""-~-....... ~. ~ .. :~;::~:?::.~1';.. . . i ~ "....., Vice Mayor Fazzino c=ld nobody propcsed to cha~ the 65.000 cap4 He 8u9gested the consultant be allowed to do the York, return to the council, and council could debate the merits of the evaluation at that time. That eveninq Council was simply approving the selection ot a consultant and to assure the product of that vo~k vent to the Planning Commission to assure con&istency 'With the Comprehensive Plan. council Member Renzel queried spending money to study something the Council knew was inconsistent. william Spangler, 471 ca~olina Lane, opposed spending the money to seeminqly loosen zoninq that should not })e loosened. If the council decided t~ move ahead, he suggested th~ consultant study the park across from Stanford Shopping Center which cost the city $500,000 a year to lease, with a view to rezoning. Bob MoSS, 4010 orme, was concerned about the study but was somewhat mollified that the intent was not to consider increasing density or chanqinq any ,zor,inq, and he 'Was curious about achieving increased revenue without changes. If the Council vanted more revenue, it shOUld enact a business license tax the same as ;9.5 percent of the othe~ jurisdictions in California. In terms of the study area, it vas hard to justify studyinq El camino because ot the larqe, deep lots when the biqqest problem they had along £1 ca~ino was that the commercial zone in most areas was toe shallow. There were a·few large lots, )!lost notably the EIlts Club but t.'1at was recently rezoned for housing. It might be valuable to talk to eXisting businesses and find out yhat the City could do to make them feel more welcome in palo Alto and provide better levels of service~ While he did not necessarily support the study, if it occurred, El Camino should be removed as a study area. Denny Petrosian, 443 Ventura Avenue, vas pleased that Council Member Ren.zel opened discussion of the 65,000 square foot cap issue. The core of comprehensive Plan .. .as the jobs/housing imbalance and she urged c:>uncil to eliminate Stanford Shopping Center fro~ the study~ She believed there vas more concern in the community about the study than Was represented by the rew people before council that evening~ She urged that consultant costs be held t~ a certain amount and there ~e some indication of what to expect from any discoveries reqardinq increased revenue possibili­ ties from the land use. city Manager Bill Zaner urged the Council to leave the scope of the study exactly as it appeared. It was broad enough to get Council the information they vere looking for. Once the study was com­ pleted, Council could evaluate whether to do anything with it. ShOUld the consultant find that $25,000 was insuffici~nt to do the work requested., statf would know up front and could return to Council to determine whether to narrow the scope at that time. council Member Cobb supported the motion. It was an important study, and his only concern vas that council get enouqh information 'L - 65-252 01/22/91 , , • q , I , I :) to Jtnow what they were dealing with. in terms --·of the economic equation~ tor the small consulting fee ot $2S~OOO. While ther. vere many people in Palo Alto who were concarned about the study, the City had to 4&a1 with a $100,000,000 sales tax revenue 8horttall~ not to aention the $500,000 burden imposed by the state, which vould .ake tor siqnificant cuts. While he talkecS to many businesses and a lot of ideas were exchanqed, Council needed to have SOme bard numbers to know 'What they were talking' about before they went into the tough decisions that lay ahead. AKEl/DMDT: delete the additional council Member Levy moved, seconded :by Renzel~ to provision to examine the current growth cap of 65~OOO square teet trca the consultant study. Council Member Levy proposed the amendment for reasons ot effi­ ciency and to ensure they qot the most out of the study. He agreed with Council Member cobb there was much to stUdy for $25,OOO~ They were askinq an economist to look at all of El Camino Real, the. calirornia business district, the three neighborhood shopping centers, Urban Lane, and Town and Cou~try. The least COUncil could do was eliminate the area that did not have to be studied. It they wanted to find out the potential effects of removing the 65,000 square foot expansion cap at Stanford Shopping Center, they simply needed to ask the people who ran Stanford Shopping Center who kne~ much more about it than any o~tside economist4 Mayor Sutor ius opposed the uend.ment. The wiser course WOuld be to support the main moticn which encompassed the F.PW Committee d1scussion4 As pointed out by the City Manaqer, if the study could not be done ror $25,000, the matter would return tor Council for further discussion. While he agreed with Council Member Levy that Stanford would be most forthcoming with information regar4ing the 65,000 square foot cap, if information came exclusively from stantord.~ it could be subject to suspicion or challenge. They needed the profesSional support. AMEHDHZ¥7 FAILED by a vote ot ~-,~ Renzel and Levy voting ·aye~­ council Me~r Renzel referred to thE description of a -business ~elations report-as opposed to a ·zoning report~· The study was labeled a Land Use Revenue Analysis and virtually everyone in favor of it spoke to lookinq at ~e results and deciding whether to do anythinq with the zoninq. If the City wanted fiscal zoning, there were all kinds of things it could dQ to make it more economic tor somebody to move into the City, but it would not necessarily be good City planning. council should remem:ber zoning was an enablement, not a mandate. Regardless of 'Whether the zoning ordinance said something could be done would not necessarily make it happen. She believed the report would tell Council what it already knew about the sites, and the real question was whether they wanted to change or adhere to a plan that was beneficial to the City. She was not anxious to revisit all their tough battles of the citywide study, the Comprehensive Plan various revisions, the OOwntown Study, California Avenl.:e study, etc. Clearly, if 65-253 01/22/91 • \ , ---.-.-..-~ o o Council wanted to achieve certain purposes, the narrower the zone, the aore t:he zoni'n9 became a mandate versus an enablelllent~ To study la.nd use revenue under the quise of business relations as opposed to a r&al step towards fiscalization of the zoning was a .istak~. She would not support the motion. MOTZOX PASSED 8-1# Renze! -no.- ... • "