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Home My WebLink About2015-11-02 City Council Agenda PacketCITY OF PALO ALTO CITY COUNCIL November 2, 2015 Regular Meeting Council Chambers 6:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday preceding the meeting. 1 November 2, 2015 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Special Orders of the Day 6:00-6:20 PM 1. Proclamation Welcoming the Delegation of Visitors From our Sister City, Enschede, The Netherlands, and Congratulating Onno van Veldhuizen on his Recent Inauguration as Mayor 2. Selection of Applicants to Interview for the Parks and Recreation Commission Agenda Changes, Additions and Deletions City Manager Comments 6:20-6:30 PM Oral Communications 6:30-6:45 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. 2 November 2, 2015 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Minutes Approval 6:45-6:50 PM 3. Approval of Action Minutes for the June 15, 22, 29, August 17 and August 24, 2015 Council Meetings Consent Calendar 6:50-6:55 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4. Approval of a 3-Year Contract Extension With SAP America for Maintenance and Support, Contract Number C14151181 in an Amount Not to Exceed $742,811 5. Finance Committee Recommends Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward Into Fiscal Year 2016 6. Finance Committee Recommends Amendment of Municipal Code Section 2.28.080 Regarding City Council Budget and Table of Organization Amendment Approvals 7. Approve and Delegate Authority to the City Manager to Execute Amendment Four With Elster Solutions, LLC to Extend the Term of an Equipment and Fully Managed Services Agreement (EFMSA) Through December 31, 2017 at no Additional Cost; to Delegate Authority to the City Manager to Enter Into and Execute a Subsequent Extension of the EFMSA Term Through 2018 at no Additional Cost Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 6:55-8:55 PM 8. Comprehensive Plan Update: Comprehensive Plan Structure, Including Goals, Vision Statements, and Related Issues for Each Element (Part III: Land Use and Community Design) 8:55-9:55 PM 9. PUBLIC HEARING: Adoption of an Ordinance Amending Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code to Require All Businesses to Subscribe to Recycling and Compost Services and Comply with Refuse Sorting Requirements 3 November 2, 2015 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Inter-Governmental Legislative Affairs Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 4 November 2, 2015 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Finance Committee Meeting November 3, 2015 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto Utilities Quarterly Update for the Fourth Quarter of Fiscal Year 2015 City of Palo Alto Investment Activity Report for the First Quarter, Fiscal Year 2016 Public Letters to Council Set 1 City of Palo Alto (ID # 6304) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 11/2/2015 City of Palo Alto Page 1 Summary Title: Enschede Proclamation Title: Proclamation Welcoming the Delegation of Visitors From our Sister City, Enschede, The Netherlands, and Congratulating Onno van Veldhuizen on his Recent Inauguration as Mayor From: City Manager Lead Department: City Clerk Attachments:  Enschede (DOC) CITY OF PALO ALTO PROCLAMATION WELCOMING THE DELEGATION OF VISITORS FROM ENSCHEDE, THE NETHERLANDS AND CONGRATULATING ONNO VAN VELDHUIZEN ON HIS INAUGURATION AS MAYOR WHEREAS, Palo Alto, California and Enschede, the Netherlands have enjoyed an official Sister Cities relationship for over 30 years; and WHEREAS, in 2007, our cities engaged in an “Economic Alliance” to further our relationship and to explore meaningful partnerships that would build upon our foundation of cultural and educational exchanges; and WHEREAS, in 2014, our cities became “Smart City Alliance” partners; this partnership has strengthened our relationship and assisted us in engaging on actionable projects; and WHEREAS, in October 2015, Onno van Veldhuizen was inaugurated as Mayor of Enschede; and WHEREAS, Mayor Onno van Veldhuizen now leads a delegation of visitors to Palo Alto, further engaging cooperation between our Cities for their mutual benefit; and WHEREAS, Palo Alto thanks the City of Enschede for the honor of their visit and for our long- standing relationship. NOW, THEREFORE, I, Karen Holman, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim heartfelt appreciation and welcome the official delegation visiting our city from Enschede, Netherlands and records congratulations and best wishes to Mr. Onno van Veldhuizen on his term as Mayor. Presented: November 2, 2015 ______________________________ Karen Holman Mayor CITY OF PALO ALTO OFFICE OF THE CITY CLERK November 2, 2015 The Honorable City Council Palo Alto, California Selection of Applicants to Interview for the Parks and Recreation Commission Staff is requesting the City Council select the candidates to be interviewed for three terms on the Parks and Recreation Commission (PARC), ending on December 15, 2018. Interviews will take place at a future Council Meeting. Each Council Member will receive a selection sheet to use in determining who will be interviewed. Copies of all applications are attached. Some applications may be redacted at the request of the applicant. A full set of non-redacted applications will be emailed to Council Members directly. Recommendation The requested action is for each Council Member to fill out the selection sheet indicating which of the candidates they will be interviewing. The City Clerk will announce who will be interviewed at the same meeting. Candidates who receive five or more votes will be scheduled for an interview. Applicants 1. Jim Cowie 2. Anne Cribbs 3. Judith Fields 4. Cybele LoVuolo-Bhushan 5. David Moss 6. Victoria Thorp Background The City received three applications for the three open positions on the PARC by the initial recruitment deadline of August 31, 2015. On September 15, 2015, the City Council directed Staff to extend the recruitment for one additional month, ending October 16, 2015. ATTACHMENTS:  Attachment: Attachment A: PARC Cowie, Jim (PDF)  Attachment: Attachment B: PARC Cribbs, Anne (PDF)  Attachment: Attachment C: PARC Fields Judith (PDF)  Attachment: Attachment D: PARC LoVuolo-Bhushan, Cybele (PDF) Page 2  Attachment: Attachment E: PARC Moss, David (PDF)  Attachment: Attachment F: PARC Thorp, Victoria (PDF) Department Head: Beth Minor, City Clerk Page 3 Personal Information Name: Address: Cell Phone: __ Home / __ Office Phone: E-mail: Are you a Palo Alto Resident? __ Yes __ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? __ Yes __ No Are you available and committed to complete the term applied for? __ Yes __ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? __ Yes __ No Excluding your principal residence, do you own real property in Palo Alto? __ Yes __ No How did you Learn about the vacancy on the Parks and Recreation Commission? __ Community Group __ Email from City Clerk __ Palo Alto Weekly __ Daily Post __ City Website __ Flyer Other: ______________________________________________________________________________ List relevant education, training, experience, certificates of training, licenses, or professional registration: Page 1 Parks & Recreation Commission Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Parks and Recreation Commission that is compatible with your experience and of specific interest to you, and why? Page 2 Parks & Recreation Commission 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. 3. If appointed, what specific goals would you like to see the Parks and Recreation Commission achieve, and why? How would you suggest accomplishing this? Page 3 Parks & Recreation Commission 4. Parks and Recreation Commission Members work with the documents listed below. If you have experience wfth any of these documents. please describe that-experience. Experience with these documem:s is not requirecHor selection. Palo Alto Comprehensive Plan: Community Services and Facilities Element LINK Natural Environment Element LINK Baylands Master Plan LINK Park Dedication Ordinance (Municipal Code) LINK Bicycle -Pedestrian Transportation Plan LINK Youth Master Plan LINK room1n Park Fire Management Plan LINK Cubberley Community Advisory Committee Report LINK I am somewhat familiar with the Baylands Master Plan and the Youth Master Plan but I would not claim to be experienced with any of these plans today. Consent to Publish Personal Information on the Citv of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: � I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Ariu Cit}' Citfli\. OR _Q_ I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the followihg contact information instead. Address: Cell Phone: Q Home 10 Office Phone: E-mail: Page4 Parks & Recreation Commission Personal Information Name: Anne Warner Cribbs Address: 2450 Aanes Wav. Palo Alto. CA 94303 Cell Phone: 415.264.2067 Q Home t 0 Office Phone: E-mail: cribbsaw@pacbell.net Are you a Palo Alto Resident? ..@Yes Q No G]lry uF i9l1LO ;.\LHhCA C IT i' etEHK'S BFFJO{ I 5 AUG 3 I PM 12: 3 8 Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?Q Yes 0 No Are you available and committed to complete the term applied for?� Yes Q No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? QYes ®No Excluding your principal residence, do you own real property in Palo Alto? QYes ®No How did you Learn about the vacancy on the Parks and Recreation Commission? §ommunity Group Baily Post mail from City Clerk ity Website alo Alto Weekly Q1yer Other: _______________________________ _ List relevant education, training, experience, certificates of training, licenses, or professional registration: 1. 5S S�lA--Foen l q -q 9 -5oo..o-Q... s�� 2 . rov�� 'LDC>q Su,m� f\....O.._,nCM...� �C/Lqa� Page 1 Parks & Recreation Commission Employment Present or Last Employer: San Francisco Bav Area Sports Qrqanizinq Committee Occupation: President & CEO Describe your involvement in community activities, volunteer and civic organiZ'..@tions: I . <B<IAAcL rY\eNn� R-Lctt-� firiu.LO-CA.-l.-t.C!VG L b� d via--�a . �"'7'1 �d � �Sf" P� MD z.. B<YMcL\llA..-Q/W-f,..<A_ SilM-Jn<_ Sp� �ol 'S. 11\,U;vy\_l).e,L -pt(/)t � c.cfh(<..LLC.. 6 - 4. PA°;,1 E:i\ATI.-)1\.Lcc__ + q CAJ__ s� \Ju-c,l.u_ t �q,' �CW-'V\<1) � �CC& C£P.__c..i'1 S. kovtsC/Ui e,� �c./J � � � 1. What is i� �b.out the Parks and Recreation Commission that is compatible with your experience and of spec1f1c interest to you, and why? �V-€fl:>T l\A_ LL h.lCM-9 V\.Q_� � 6� (JA.4 oPP°'-fl.L� fr:_ cUL � fv � CM-J- LA.a_ v-€_ CAd:-e SS fn pt1vL1L + V'e._OLUVl� it-� . �� ltA.., peu-tC-? 4 f'JJ.-CA.u;..._h� l� �<n.� n;, � � 0- �� '{) �<(:_. I' V\.o...,ve � llAOJ\c.J-ecf.. lV-. tAJ...l... � oLJ o._H,,..L.ri:fu_ � � CAJ_J. Q_ll-t.<:> CUUL �<-< �. � � \/\A� S p OLP::> b� l�lvi..e). Page2 Parks & Recreation Commission 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. f. fl aO ti �'6.n Ll 0� l;t/.)L. � �S Af'uc l-S W-th.L pv' €%<'z>\A/\c. OVL (rv-cf,.-, -l-tt � t\wvvt, � �· PA I Thj_ � 5�c) �hiu.L .f, �f f �"<>l..u..{h fo 01,<./J� � � 6"-� � 2. C!.,(LQ_f>f'l'\-A- � "'\) LLFZ:-� �t � l\A.-� PAuo A-im (l,t;fl� 3. If appointed, what specific goals would you like to see the Parks and Recreation Commission achieve, and why? How would you suggest accomplishing this? l · tA..JCA..\c u .. :>" l'\\\-o � S\x\�c hold� � O\iL \A-�t uv·i ff �I� (A,rM_VV\_� � t <L.. �V\.V\.Q.. h, eAT-�t.:>u �Li p�� cfo �pvcr pcu.Jc s pvo �va��. Page 3 Parks & Recreation Commission 4. Parks and Recreation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan: Community Services and Facilities Element LINK Natural Environment Element LINK Baylands Master Plan LINK Park Dedication Ordinance (Municipal Code) LINK Bicycle -Pedestrian Transportation Plan LINK Youth Master Plan LINK Foothill Park Fire Management Plan LINK Cubberley Community Advisory Committee Report LINK x \A_o._0 ��-� 1'u-!JM\ �� LM.. �--. '{}-w OUU'-Ot tr-Pet.Lo ()JJo �,,Jr, D-V\. � � � flp-CL� pea�- Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: _..Gl. I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR _Q_ I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: Q_ Home 10 Office Phone: E-mail: Signature:b \A.), �'l,,.y, Date: cg-\ 2. (o (IS- Page4 Parks & Recreation Commission Personal Information Name: Judith Fields Address: 2581 Park Blvd, Y103, Palo Alto 94306 Cell Phone: x__ Home / __ Office Phone: 650-322-1441 E-mail: judith2468@gmail.com Are you a Palo Alto Resident? _X_ Yes __ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? __ Yes _X_No Are you available and committed to complete the term applied for? _XYes __ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? __ Yes X__ No Excluding your principal residence, do you own real property in Palo Alto? __ Yes X__ No How did you Learn about the vacancy on the Parks and Recreation Commission? friend List relevant education, training, experience, certificates of training, licenses, or professional registration: No education or training specific to parks and recreation Page 1 Parks & Recreation Commission Employment Present or Last Employer: Occupation: VSO (Volunteers Serving Overseas); now retired. Describe your involvement in community activities, volunteer and civic organizations: I volunteer for Theatre Works. Before I went overseas, I tutored high school youngsters in continuation school. At a different time I tutored twins form Ghana to help them with English. I am looking to get involved with the community. I volunteered for six years in three Asian countries. 1. What is it about the Parks and Recreation Commission that is compatible with your experience and of specific interest to you, and why? I am a regular user of four parks. I CITY OF PALO ALTO, CA CITY CLERK'S OFFICE RE C EIV E D 15 Oct 05 | 1:50 pm DocuSign Envelope ID: 8DEFE08C-78A6-4ED0-821E-21F891757FFE believe that recreation is vital to health and enjoyment of life. I believe in fairness.. I am a reasonably educated and thinking person. I want to help. Page 2 Parks & Recreation Commission 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. I come to the commission with my own issue—a more equal allocation of resources to the different parks. I go to four parks regularly—Peers Park, Hoover, Boulware and the park on Alma opposite the train station. All have working fountains except Boulware. It has been useless for over two years, full of sand. Two have bathroom facilities. Only one does not have a watered.playing field, Boulware. 3. If appointed, what specific goals would you like to see the Parks and Recreation Commission achieve, and why? How would you suggest accomplishing this? I would want to set up some kind of monitoring to evaluate the state of the parks as they exist today, what’s needed, and set priorities. I realize that this overlaps with your study. I would like to set up a liaison with the Police Department. There are many homeless people at the Boulware Park entrance and around the neighborhood. They create hygiene problems—use of the park as a bathroom and their proximity to the small children’s play ground (about 12 to 14 feet). Sometimes trash. Neighbors tell me that this park was known as the “Ghetto Park” because the area was once predominately black. They wonder if this park suffers from benign neglect. They also believe that the police department “herds” the vans and campers to the park’s area because it is a mixed residential/commercial area. And not like the most affluent areas where the homeless are not tolerated. If this is true—the herding—then we need to make it a priority to provide bathrooms and fix the water fountain. For everybody. Page 3 Parks & Recreation Commission 4. Parks and Recreation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. None. But I learn fast. Palo Alto Comprehensive Plan: Community Services and Facilities Element LINK Natural Environment Element LINK Baylands Master Plan LINK Park Dedication Ordinance (Municipal Code) LINK Bicycle - Pedestrian Transportation Plan LINK Youth Master Plan LINK Foothill Park Fire Management Plan LINK Cubberley Community Advisory Committee Report LINK Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, “No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual.” The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City’s website. DocuSign Envelope ID: 8DEFE08C-78A6-4ED0-821E-21F891757FFE The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. yes OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: __ Home / __ Office Phone: E-mail: Signature: Judith Fields_________________________________________ 10/5/15 Page 4 Parks & Recreation Commission DocuSign Envelope ID: 8DEFE08C-78A6-4ED0-821E-21F891757FFE Employment Present or Last Employer: Fujitsu Corporation Occupation: ESL WritinQ Curriculum Instructor Describe your involvement in community activities, volunteer and civic organizations: Jv,.\JcQ Cu:� �c._'f:<uf 1 cr1 W av� 1 � Stt .p 5 , :'bea-vt : vt Ve>{JcPf w,1 flt .. � ce1 rt f '*'_ cz /fc(i rn ;_·� be ./c/ V!;\c.._ (/Jb,_ ?\ \fUl�"-1,u 1 ftr � r�·'/ll"IJ.«SuJtt G�se,'J<t'tu1 T-te �e/vL-f I 1 /Y\ .\£� ·-gc,CN <J (P- M 1i,.._ rf �\) I r¥tM :z:� \)Ci ( v . .p cQ w c C o rvb\ "'"l lL'\1 ;i l(' c'f1 '\;, s 'Ytl Tc_') --e)�"'-ec� ;s t(L tv'lvbJe #i:.� 'Yl f Qlo fflfc.,. Page2 Parks & Recreation Commission 2. Please describe an issue that recently came b f . . to you and describe why you are interested in it �t°re t�e Commission that is of particular interest you can view an archive here: · you ave never been to a Commission meeting £"-"-" "� \j \ £\;_ • f\,,, lJ, { <' () 'l!LO_ f OA k , Sf-" Cc \� <if C CO Ll '/.-C; ( �.<?� ·t,J '> U i\j'" 6" � Co c•-"c; / 1/Y\ J2 'IV\ L.,'-'1 ''to \) c:tl UL '(' T� _(> c pil awt I c "/-c_ ul tlA<l d' ; f� rft d T3. V, JWA 1 efl, A� b, eiN' E. V ; s , 7 a ..z. j/-/fc) .y-s1 s : Io °"'-{ \) ll l � C'� CJ._ c 6'Nl otl \, 1 4. Parks and Recreation Commission Members work with the documents listed below. If you have experience �ith any of.these docum�nts, please describe that experience. Experience wi�h documents 1s not required for selection�. 1 ( , --· , CL ,4tw,ej <. � Palo Alto Comprehensive Plan: t<. Community Services and Facilities Element /lf ce«..c( r/I Natural Environment Element J:.J Baylands Master Plan Park Dedication Ordinance (Municipal Code) Bicycle -Pedestrian Transportation Plan k,IN!S /Vc:Y Youth Master Plan .hl!':J Foothill Park Fire Management Plan Cubberley Community Advisory Committee Report .h!NI< Consent to Publish Personal Information on the of Palo Alto Website � {))\_'Yvt C) 5 ( California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead._ . 6 � Address:..: ,, Cell Phone: .Lft 5 l/ �:} 1, 3 0 Home 10 Office Phone: - E-mail: b h_u. <;: ' Page4 Parks & Recreation Commission Parks and Recreation Commission Application Personal Information Name: David Moss Address: Cell Phone €) Home I Office Phone: E-mail: Are you a Palo Alto Resident? ®Yes 0No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? 0Yes G)No Are you available and committed to complete the term applied for? @Yes No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest (Form 700). Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1) engage in business with the City; 2) provide products or services for City projects; or 3) be affected by decisions of the board or commission you are applying for? 0Yes @No Excluding your principal residence, do you own real property in Palo Alto? 0 Yes @ No How did you Learn about the vacancy on the Parks and Recreation Commission? §Community Group D Daily Post Email from City Clerk D City Website Palo Alto Weekly D Flyer List relevant education, training, experience, certificates of training, licenses, or professional registration: MBA from Santa Clara University. I've made a career here in Palo Alto and elsewhere in Silicon Valley as a programmer, business analyst, data quality analyst, and IT project manager. Employment Present or Last Employer: Wells Fargo occupation: Business Analyst and IT Project Manager Describe your involvement in community activities, volunteer and civic organizations: My wife and I have raised 3 kids here in Palo Alto. I have held several volunteer positions through the years in the schools (Ohlone playground remodel, Gunn Foundation, Gunn Sports Boosters, Gunn new pool committee) and in AYSO (soccer coach, league ball manager), as well as East Palo Alto reading tutor, and Boy Scout troop trip coordinator. We went with the City Council last year to Oaxaca to help represent the city at the 50th anniversary of Neighbors Abroad. Page 1 Parks & Recreation Commission 1. What is it about the Parks and Recreation Commission that is compatible with your experience and of specific interest to you, and why? I love biking throughout the city and utilizing Foothills and Arasterdero preserve and my local parks, and have always been interested in issues that affect them. My work as a business analyst and IT project manager has given me years of experience as a productive member of teams, and a leader of teams to develop and deliver complex IT solutions. My volunteer activities have almost always been as a member of a committee, and I love the people interaction. As an analyst I am very good at breaking down issues into manageable activities, stating requirements, being a liaison between users, technical staff, and management, and also analyzing data. These skills are valuable in every committee and team. My areas of particular interest include expansion of and threats to open space, urban park fair usage, biking and hiking access, ongoing relations between city, PAUSD, athletic leagues, and Stanford. All these could use someone like me who can be analytical yet empathetic, a good listener, a team player, a leader, patient, persistent, and polite. 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. I am Interested In any issue that represents an extension of or threat to our current open space and also the connectMty to those spaces from all parts of the city, In order to make them more accessible. I want more people out ot their houses and out of their cars and Into nature. Some recent Issues that most Interested me: the refuse digester plant's Impact on the Baylands, golf course changes and Impact on the Baylands, the trail around Stanford to give us more quasi open space, the walking/biking trail extension near Page Mill and Arastradero Rd, the bike bridge across 101 to give more people year-round access to the Baylands and Shoreline, the expansion of bike paths along east-west and north-south corridors, especially Charleston/Arastradero corridor, the huge suocess of the Magic Playground and Mitchell Park library In my nearby Mltchell Park, the wonderful usage of the present Cubberley fields and track, the under used open space behind Greendell School, the management of Mitchen park to deal with single corporate events versus the public use of the park on a busy atternoon. a new public pool, biker and hiker relations at Arastradero preserve, dog leash enforcement In open space, and more use of open space by school groups for nature and conservation studies. 3. If appointed, what specific goals would you like to see the Parks and Recreation Commission achieve, and why? How would you suggest accomplishing this? I am interested in all of the above issues as an extension of or threat to current open space and connectivity to them from all parts of the city, in order to make them more accessible to more people and build community. I would accomplish this goal by sponsoring more community events like the wildly successful music-in-the-park and the July 4th Chili Cookoff. But don't stop there ... have more lectures, community hikes, community picnics, night hikes, star parties, music in Arastradero Preserve, movie nights in Foothills Park, more use of open space for camping nights, community weeding days, creek cleanups, and trash cleanup events, to mention a few. We want events that would expand interest in our open spaces and encourage people to want them. 4� Parks and Recreation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan: Community Services and Facilities Element LINK Natural Environment Element .bl.t: Baylands Master Plan LINK Park Dedication Ordinance (Municipal Code) .!J.t: Bicycle -Pedestrian Transportation Plan Youth Master Plan .!. Foothill Park Fire Management Plan Cubberley Community Advisory Committee Report LINK I have read the bicycle-pedestrian transportation plan, and the Cubberley Community Center Committee report because they both affect my daily activities. I have been on the community rides and gone to the community events around the changes in arastradero/charleston rd configuration. I went to the opening of the Page Mill/Arastradero Rd trail, a joint project with Stanford. As for Cubberley, my nearest open space, I was very interested in keeping Cubberley Community Center intact and the redwood trees and track intact, and the fields intact. I love how it has turned out. Page2 Parks & Recreation Commission Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, "No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual." The full code is attached. This consent form wil not be redacted and will be attached to the Application and posted to the City's website. The full code can be read here: LINK Read the code, and check only ONE option below: 0 I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. I am providing the following alternate information and request that they use the following contact information instead. Address: Ferne Ave Cell Phone: ®Home I Office Phone: 650-494-7234 E-mail: ssow111@gmail.com Signature: ., Date: .£.hf/ J- Page 3 Parks & Recreation Commission Personal Information Name: Address: Cell Phone: __ Home / __ Office Phone: E-mail: Are you a Palo Alto Resident? __ Yes __ No Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? __ Yes __ No Are you available and committed to complete the term applied for? __ Yes __ No California state law requires appointed board and commission members to file a detailed disclosure of their financial interests, Fair Political Practices Commission, Conflict of Interest, Form 700. Do you have an investment in, or do you serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to; 1) engage in business with the City, 2) provide products or services for City projects, or 3) be affected by decisions of the board or commission you are applying for? __ Yes __ No Excluding your principal residence, do you own real property in Palo Alto? __ Yes __ No How did you Learn about the vacancy on the Parks and Recreation Commission? __ Community Group __ Email from City Clerk __ Palo Alto Weekly __ Daily Post __ City Website __ Flyer Other: ______________________________________________________________________________ List relevant education, training, experience, certificates of training, licenses, or professional registration: Page 1 Parks & Recreation Commission Victoria Thorp 555 Hale Street Palo Alto CA 94301 415-378-8687 victoriathorp@gmail.com BA, English, Tufts University, M.Ed, UCLA, Secondary teaching credential, English, UCLA 4 DocuSign Envelope ID: 3131DE37-B3D4-46E9-A0E8-8DB6BF9780AA Employment Present or Last Employer: Occupation: Describe your involvement in community activities, volunteer and civic organizations: 1. What is it about the Parks and Recreation Commission that is compatible with your experience and of specific interest to you, and why? Page 2 Parks & Recreation Commission As an active person and the parent of two girls, I am lucky to have taken advantage of many of Palo Alto's wonderful Parks and Recreation opportunities, from classes at the Jr. Museum, to summer camps, swimming at Rinconado Pool and hiking in Foothills Park. I love being able to enjoy these opportunities and appreciate being part of a community where parks, recreation and open space are valued and supported. I am applying for the Parks and Recreation Commission because I would like to contribute to preserving the City's parks and recreation assets and ensuring that they are positioned to serve the community for many years to come. freelance writer and editor writer and editor DocuSign Envelope ID: 3131DE37-B3D4-46E9-A0E8-8DB6BF9780AA 2. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting you can view an archive here: LINK. 3. If appointed, what specific goals would you like to see the Parks and Recreation Commission achieve, and why? How would you suggest accomplishing this? Page 3 Parks & Recreation Commission I know that the Parks and Recreation Department is in the midst of a big planning and prioritization process that will help clarify goals and shape the future of where resources are spent in Palo Alto. So my first step if I were to become a Commissioner would be to better understand existing plans and proposals before setting out any of my own goals. However, as Palo Alto resident, my observation is that Rinconada Park and Pool are in dire need for remodeling and rebuilding. I would love to see an upgraded pool and locker room in this area, coupled with upgraded park facilities. I think Burgess Park in Menlo Park offers an interesting model of what can be done, although that site is larger and was rebuilt with private donations so it may not be a relevant comparison point. In addition, I would like to see new and up to date play ground equipment to incorporate more variety of structures and ways to engage children in play. Finally, I think the Parks and Recreation Commission should focus on access to parks and ensuring that open space and nature are part of the City's plan for development in the years ahead. DocuSign Envelope ID: 3131DE37-B3D4-46E9-A0E8-8DB6BF9780AA 4. Parks and Recreation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto Comprehensive Plan: Community Services and Facilities Element LINK Natural Environment Element LINK Baylands Master Plan LINK Park Dedication Ordinance (Municipal Code) LINK Bicycle - Pedestrian Transportation Plan LINK Youth Master Plan LINK Foothill Park Fire Management Plan LINK Cubberley Community Advisory Committee Report LINK Consent to Publish Personal Information on the City of Palo Alto Website California Government Code Section 6254.21 states, in part, “No state or local agency shall post the home address or telephone number of any elected or appointed official on the Internet without first obtaining the written permission of that individual.” The full code is attached. This consent form will not be redacted and will be attached to the Application and posted to the City’s website. The full code can be read here: LINK Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. OR I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website. I am providing the following alternate information and request that they use the following contact information instead. Address: Cell Phone: __ Home / __ Office Phone: E-mail: Signature: ________________________________________________________ Date: _____________ Page 4 Parks & Recreation Commission DocuSign Envelope ID: 3131DE37-B3D4-46E9-A0E8-8DB6BF9780AA 10/16/2015 CITY OF PALO ALTO OFFICE OF THE CITY CLERK November 2, 2015 The Honorable City Council Palo Alto, California Approval of Action Minutes for the June 15, 22, 29, August 17 and 24, 2015 Council Meetings Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS:  Attachment A: 06-15-15 DRAFT ACTION Minutes (DOC)  Attachment B: 06-22-15 DRAFT ACTION Minutes (DOC)  Attachment C: 06-29-15 DRAFT ACTION Minutes (DOC)  Attachment D: 08-17-15 DRAFT Action Minutes (DOC)  Attachment E: 08-24-15 DRAFT Action Minutes (DOC) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 14 Special Meeting June 15, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:08 P.M. Present: Berman, Burt, DuBois, Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Special Orders of the Day 1. Presentation of a Donation Check from the Palo Alto Library Foundation to the Palo Alto City Library. Agenda Changes, Additions and Deletions MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to hear Agenda Item Numbers 14- PUBLIC HEARING AND PROPOSITION 218 HEARING: Adoption of Budget Amendment Ordinance for Fiscal Year 2016... and 15- PUBLIC HEARING AND PROPOSITION 218 HEARING: Staff Recommendation That the City Council Adopt a Resolution Amending Rate Schedules… before Agenda Item Number 13- Discussion and Direction to Staff Regarding Establishment of an Office/R&D… MOTION PASSED: 9-0 Consent Calendar MOTION: Vice Mayor Schmid moved, seconded by Council Member Wolbach to approve Agenda Item Numbers 2-12A. 2. Approve and Authorize the City Manager or Designee to Execute the Following Energy Efficiency Evaluation Support Contracts in a Combined Not to Exceed Amount of $250,000 per Year for a Three- DRAFT ACTION MINUTES Page 2 of 14 City Council Meeting Action Minutes: 6/15/15 Year Term With an Option to Extend Either or Both Contracts for an Additional Two Years: (A) TRC Engineers, Inc. in an Amount Not to Exceed $210,000 per Year; and (B) Energy & Resource Solutions, Inc. in an Amount Not to Exceed $40,000 per Year. 3. Approval of Contract No. C15158881 for $270,000 With Palo Alto Housing Corporation for Provision of Below Market Rate (BMR) Administration Services Over a Two Year Period. 4. Approval of Amendment No. 2 to Contract No. C09124501 With GreenWaste of Palo Alto That Would Increase Zero Waste Services, Increase Efficiencies, Increase the Annual Costs by Approximately $1,366,000 in FY2016, to Support Composting and Anaerobic Digestion Programs; and Extend the Contract Term for an Additional Four Years to End June 30, 2021; Adoption of Resolution 9517 Entitled, “Resolution of the Council of the City of Palo Alto to Revise Utility Rules and Regulations No. 2, 3, 11 and 24 to Reflect New Zero Waste Service Changes.” 5. Approval of a $9,500 Grant From Silicon Valley Creates, a $9,600 Grant From the National Endowment for the Arts, a $45,000 Contribution From the Friends of Palo Alto Children’s Theatre and Adoption of a Related Budget Amendment Ordinance 5328 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto to the General Fund in the Amount of $64,100.” 6. Approval of a Contract With Graham Contractors, Inc. in the Amount of $1,311,073 for The FY 2016 Preventive Maintenance Project, the First of Four Contracts in the FY 2016 Street Maintenance Program Project (CIP PE-86070). 7. Approval of a Three-Year Contract With an Option of Two, One-year Extensions With American Guard Services, Inc. in the Amount Not to Exceed $321,215 Per Year for the First Two Years, and $328,624 for the Third Year and Authorization for Additional But Unforeseen Work Not to Exceed $32,121 Per Year for the First Two Years and $32,862 for the Third Year. 8. Confirmation of Appointment of Edward Shikada as Assistant City Manager and Approval of Employment Agreement. DRAFT ACTION MINUTES Page 3 of 14 City Council Meeting Action Minutes: 6/15/15 9. Resolution 9518 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing Public Works Department to Submit a Function Classification Request to Caltrans to Formally Add the Streets Reclassified as Part of the 1998 Comprehensive Plan to the Caltrans System Map.” 10. Approval of Contract Amendment No. 1 to Contract No. S14152995 in the Amount of $14,949 With Balance Hydrologics, Inc. for the Design and Implementation of an Enhanced Flood Warning System for the San Francisquito Creek Watershed. 11. Adoption of Fiscal Year 2016 Investment Policy. 12. Resolution 9519 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2016 Water Utility Financial Plan and Amending the Water Utility Reserve Management Practices;” 2) Resolution 9520 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2016 Wastewater Collection Utility Financial Plan and Amending the Wastewater Collection Utility Reserve Management Practices;” 3) Resolution 9521 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2016 Electric Utility Financial Plan and Amending the Electric Utility Reserve Management Practices;” and 4) Resolution 9522 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2016 Gas Utility Financial Plan and Amending the Gas Utility Reserve Management Practices.” 12A. Approval of a Three-year Contract With Municipal Resource Group (MRG) for Council Appointed Officers Evaluations for an Amount Not to Exceed $123,000. MOTION PASSED: 9-0 Action Items 14. PUBLIC HEARING AND PROPOSITION 218 HEARING: Budget Amendment Ordinance 5329 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto for Fiscal Year 2016, Including Adoption of Operating and Capital Budgets and Municipal Fee Schedule;” Five Resolutions, Including: 1) Resolution 9523 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase of 2.7 Percent and Amending Utility Rate Schedules DRAFT ACTION MINUTES Page 4 of 14 City Council Meeting Action Minutes: 6/15/15 EDF-1 and EDF-2;” 2) Resolution 9524 Entitled, “Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to Increase Storm Drain Rates by 2.7 Percent Per Month Per Equivalent Residential Unit for Fiscal Year 2016;” 3) Resolution 9525 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Wastewater Collection Fee Increase of 9.0 Percent and Amending Utility Rate Schedules S-1, S-2, S-6, and S-7;” 4) Resolution 9526 Entitled, “Resolution of the Council of the City of Palo Alto Adopting Residential Refuse Rate Increases Ranging Between 9.0 Percent and 19.0 Percent, and Amending Utility Rules and Regulations 2, 3, 11, and 24;” 5) Resolution 9527 Entitled, “Resolution of the Council of the City of Palo Alto Amending the Salary Schedule Attached to the 2014-2016 Compensation Plan for Management and Professional Employees, as Amended by Resolution No. 9053 to Add One New Position and Change the Title of Two Positions; Amending the 2013-15 Memorandum of Agreement Service Employees International Union (SEIU), Adopted by Resolution No. 9398 to add One Position and Correct the Salary of One Position; and Amending the Terms for the Utility Management Professional Association, as Amended by Resolution Nos. 9492 & 9503 to Correct the Salary for One Position and Add Two New Positions; and Refer to the Finance Committee a Discussion of Changes to the Public Art Ordinance to Simplify the Calculation of the Public Art Fee and a Discussion of Usage and Replacement of Pool Vehicles (Continued From June 8, 2015).” Public Hearing continued from June 8, 2015. Public Hearing closed at 5:31 P.M. Council Member DuBois advised he would not be participating in the budget as it related to Stanford University because his wife is employed by Stanford University. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to approve the Finance Committee and Staff recommendation that the City Council adopt the portions of the Police and Fire Department Budgets and CIP relating to Stanford University for the Fiscal Year 2016 and related Ordinance and Resolution portions. MOTION PASSED: 8-0 DuBois not participating DRAFT ACTION MINUTES Page 5 of 14 City Council Meeting Action Minutes: 6/15/15 MOTION: Council Member DuBois moved, seconded by Council Member XX to remove fees for Single Story Overlay applications from the budget. MOTION RESTATED: Council Member DuBois moved, seconded by Council Member Kniss that there will be no planned revenues from Single-Story Overlay applications included in the Fiscal Year 2016 Budget. MOTION WITHDRAWN BY THE MAKER MOTION: Council Member Scharff moved, seconded by Council Member Berman to approve the budget including $50,000 for Automated External Defibrillators (AED), and amendments as discussed: A. Budget Amendment Ordinance which includes: 1. City Manager’s Fiscal Year 2016 Proposed Operating and Capital Budget; and 2. Amendments to the City Manager’s Fiscal Year 2016 Proposed Operating and Capital Budget; and 3. Revised City Table of Organization; and 4. Fiscal Year 2016 Proposed Municipal Fee Changes; and B. Resolution Adopting a Dark Fiber Rate Increase of 2.7 Percent and Amending Utility Rate Schedules EDF-1 and EDF-2; and C. Resolution Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to Increase Storm Drain Rates by 2.7 Percent Per Month Per Equivalent Residential Unit for Fiscal Year 2015; and D. Resolution Adopting a Wastewater Collection Rate Increase of 9.0 Percent and Amending Utility Rate Schedules S-1, S-2, S-6 and S-7; and E. Resolution Adopting a Refuse Rate Increase of 9.0 Percent and Amending Utility Rate Schedule R-1; and F. Resolution Amending Salary Schedules for the Management, Professional, and Confidential Unit, the Utilities Managers of Palo Alto DRAFT ACTION MINUTES Page 6 of 14 City Council Meeting Action Minutes: 6/15/15 Professional Association, and the Service Employees International Union: G. Refer to the Finance Committee a discussion of changes to the Public Art Ordinance to simplify the calculation of the Public Art Fee and a discussion of usage and replacement of pool vehicles. MOTION PASSED: 9-0 MOTION: Council Member Kniss moved, seconded by Council Member DuBois to: A. Refer to the Finance Committee consideration of stronger encroachment fees for construction that impact portions or all of a city street or sidewalk; and B. Keep the Code Enforcement-Lead position in the Fiscal Year 2016 Budget; and C. Direct Staff and the Finance Committee to return in six months with an update on the Animal Shelter; and D. Direct Staff to investigate increasing Business Registry participation up to and including increasing late fees; and E. Include an additional $80,000 for Project Safety Net. MOTION PASSED: 9-0 15. PUBLIC HEARING AND PROPOSITION 218 HEARING: Resolution 9528 Entitled, “Resolution of the Council of the City of Palo Alto Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to Increase Average Water Rates by 8 Percent (Continued From June 8, 2015).” Public Hearing continued from June 8, 2015. Public Hearing closed at 6:33 P.M. DRAFT ACTION MINUTES Page 7 of 14 City Council Meeting Action Minutes: 6/15/15 MOTION: Vice Mayor Schmid moved, seconded by Council Member Wolbach to approve Staff recommendation to adopt Water rates. MOTION PASSED: 9-0 13. Discussion and Direction to Staff Regarding Establishment of an Office/R&D Annual Growth Limit Applicable to Downtown, the California Avenue Area, and the El Camino Corridor on an Interim Basis (Continued From June 1, 2015). Council Member DuBois advised he would not be participating in this Agenda Item as his wife is employed by Stanford University and the exclusion of Stanford Research Park could provide a benefit to Stanford University. MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to use the precise boundaries as outlined in the Potential Office/R&D Cap Boundaries, and the Development Cap will not apply to any area in which the City has adopted at time of development a Coordinated Area Plan, Specific Plan, Master Plan or Precise Plan. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “Specific Plan, Master Plan or Precise Plan” with “or Specific Plan.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “with the exception of the South of Forest Area Coordinated Area Plan, Phase Two (SOFAII) and Staff will return with information pertaining to the impacts of excluding SOFAII from the Development Cap.” AMENDMENT: Mayor Holman moved, seconded by Council Member Burt to remove from the Motion “Specific Plan.” AMENDMENT RESTATED to remove from the Motion, "Coordinated Area Plan or Specific Plan." AMENDMENT AS AMENDED FAILED: 4-4 Burt, Filseth, Holman, Schmid yes, DuBois not participating MOTION AS AMENDED FAILED: 4-4 Berman, Kniss, Scharff, Wolbach yes, DuBois not participating DRAFT ACTION MINUTES Page 8 of 14 City Council Meeting Action Minutes: 6/15/15 MOTION: Council Member Scharff moved, seconded by Council Member Kniss that projects generating less than 2,000 square feet of net new office space will be exempt from the Development Cap. MOTION PASSED: 8-0 DuBois not participating MOTION: Council Member Kniss moved, seconded by Council Member Scharff to apply the Development Cap to these Land Uses defined in Municipal Code Section 18.04.030: Research & Development, Administrative Office Services, General Business Office, Medical Office and Professional Office. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion, “Medical Office.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Medical Office over 5,000 square feet” after “General Business Office.” MOTION AS AMENDED PASSED: 8-0 DuBois not participating MOTION: Council Member Wolbach moved, seconded by Council Member Berman to exempt from the Development Cap, self-mitigating projects; projects providing sufficient rental housing such that the job/housing balance would improve, and which would also provide substantial Transportation Demand Management plans (individually or in cooperation with others). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, "to improve the current parking and traffic impacts." MOTION AS AMENDED PASSED: 6-2 Filseth, Schmid no, DuBois not participating MOTION: Council Member Kniss moved, seconded by Council Member Scharff to: A. Establish a procedure by which applications are accepted and processed as they are currently; and DRAFT ACTION MINUTES Page 9 of 14 City Council Meeting Action Minutes: 6/15/15 B. Except that, no applications received after July 1 or the effective date of the Ordinance would be approved until after March 31 of the following year; and C. At that point, if the square footage proposed by all applications combined would exceed the annual limit, completed applications that have been recommended for approval by an appropriate advisory body such as the Architectural Review Board would be ranked based on scoring criteria and provided to the City Council for evaluation and action; and D. If the square footage proposed by all applications combined would not exceed the annual limit, the completed applications that have been recommended for approval would be acted upon using the usual process. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion Part B, “such as the Architectural Review Board.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part B, “or the effective date of the Ordinance” after “July 1.” AMENDMENT: Vice Mayor Schmid moved, seconded by Council Member XX to add to the Motion Part C,” give preference to projects that have a jobs/housing ratio of 2.3:1 or less” after “at that point.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED PASSED: 7-1 Schmid no, DuBois not participating MOTION: Council Member Scharff moved, seconded by Council Member Kniss to evaluate applications subject to the annual limit using the following criteria: A. Their intensity of use; and B. Their ability to avoid or address potential impacts on traffic and parking; and DRAFT ACTION MINUTES Page 10 of 14 City Council Meeting Action Minutes: 6/15/15 C. The quality of their design, including their attention to human scale where the building(s) meet the street, their compatibility with surroundings, and their overall architectural quality; and D. Their environmental quality; and E. The monetary and/or non-monetary value of public benefits offered. INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Mixed use projects including substantial housing.” INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Mixed use projects including retail.” INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part A, “their intensity of use” with “intensity of use in the context of underlying zoning and its surroundings.” INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part A, “intensity of use” with “density of development.” INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER to add to the Motion, “mixed use projects that provide space for cultural amenities such as but not limited to art galleries and studios.” MOTION AS AMENDED PASSED: 8-0 DuBois not participating MOTION: Council Member Scharff moved, seconded by Council Member Berman to exempt projects in the pipeline since 2013 or 2014 from the Development Cap. AMENDMENT: Council Member Burt moved, seconded by Council Member XX to add to the Motion, “which the application is complete” after “or 2014.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND DRAFT ACTION MINUTES Page 11 of 14 City Council Meeting Action Minutes: 6/15/15 SUBSTITUTE MOTION: Mayor Holman moved, seconded by Council Member Filseth to exempt projects in the pipeline that received project approval by July 1, 2015 or the effective date of the Ordinance. AMENDMENT TO THE SUBSTITUTE MOTION: Council Member Scharff moved, seconded by Council Member Berman to replace in the Substitute Motion, “received project approval” with “were submitted in 2013 or 2014 and complete.” INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Substitute Motion, “received project approval by July 1, 2015 or the effective date of the Ordinance” with “applied for in 2013 or 2014, which the applications were complete March 31, 2015, from the Development Cap; and for projects with applications complete June 15, 2015.” INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Substitute Motion, “as one of the criteria considered as part of the 50,000 square foot Development Cap” after “June 15, 2015.” SUBSTITUTE MOTION AS AMENDED AMENDMENT PASSED: 7-1 Schmid no, DuBois not participating MOTION: Mayor Holman moved, seconded by Vice Mayor Schmid to use the precise boundaries as outlined in the Potential Office/R&D Cap Boundaries as proposed by Staff. MOTION FAILED: 4-4 Berman, Kniss, Scharff, Wolbach no, DuBois not participating. MOTION: Council Member Wolbach moved, seconded by Council Member Scharff to use the precise boundaries as outlined in the Potential Office/R&D Cap Boundaries as proposed by Staff and; the Development Cap will not apply to Office Space approved as part of a Coordinated Area Plan or Specific Plan, with the exception of the South of Forest Area Coordinated Area Plan, Phase Two (SOFAII) and Staff will return with information pertaining to the impacts of excluding SOFAII from the Development Cap. MOTION FAILED: 4-4 Burt, Filseth, Holman, Schmid no, DuBois not participating DRAFT ACTION MINUTES Page 12 of 14 City Council Meeting Action Minutes: 6/15/15 MOTION: Council Member Scharff moved, seconded by Council Member Kniss to continue this Agenda Item to a date uncertain. SUBSTITUTE MOTION: Council Member Filseth moved, seconded by Council Member Wolbach to use the precise boundaries as outlined in the Potential Office/R&D Cap Boundaries as proposed by Staff; and the Development Cap will not apply to Office Space approved as part of a Coordinated Area Plan or Specific Plan, with the exception of SOFAII. Staff will return with information pertaining to the impacts of excluding SOFAII from the Development Cap; and any coordinated area plan which allows net new square footage of Office/R&D Space, the 50,000 square foot Development Cap will be reduced by that amount. AMENDMENT TO THE SUBSTITUTE MOTION: Council Member Wolbach moved, seconded by Council Member XX to add to the Substitute Motion, “half of” after “reduced by.” AMENDMENT TO THE SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND AMENDMENT TO THE SUBSTITUTE MOTION: Council Member Filseth moved, seconded by Council Member XX to adjust to compensate for timeframes involved. AMENDMENT TO THE SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND SUBSTITUTE MOTION FAILED: 4-4 Berman, Scharff, Holman, Kniss no, DuBois not participating SUBSTITUTE MOTION: Mayor Holman moved, seconded by Council Member Kniss to refer the Office/R&D Cap boundaries to the Planning and Transportation Commission. SUBSTITUTE MOTION PASSED: 5-3 Berman, Scharff, Filseth no, DuBois not participating 16. PUBLIC HEARING: Adoption of an Ordinance 5330 Entitled, “Ordinance of the Council of the City of Palo Alto Extending for 22 Months and 15 Days Urgency Interim Ordinance 5325, Placing a Temporary Moratorium on the Conversion of Ground Floor Retail and DRAFT ACTION MINUTES Page 13 of 14 City Council Meeting Action Minutes: 6/15/15 “Retail Like” Uses to Other Uses Citywide; Exempt from the California Environmental Quality Act Under Section 15061 and 15308.” MOTION: Council Member Kniss moved, seconded by Council Member Scharff to adopt an Ordinance extending the Urgency Interim Ordinance placing a moratorium on the conversion of ground floor retail and retail-like uses to other uses citywide. Public Hearing opened and closed without public comment at: 10:33 P.M. MOTION PASSED: 9-0 17. PUBLIC HEARING: Approval of a Mitigated Negative Declaration and a Site & Design Review and Design Enhancement Exception Application for a Three Story Mixed-Use Building on a 27,000 Square Foot Site Zoned Service Commercial (CS) At 441 Page Mill Road. The Project Has Been Revised to Contain 19,093 Square Feet of Commercial Space, 91 Off-Street Parking Spaces, and 16 Apartment Units, Including Five Below Market Rate Units, and Includes a Request for Three “Off Menu” Concessions Under Palo Alto Municipal Code Section 18.15 and the State Density Bonus Law and Based on a Revised Economic Analysis Environmental Assessment: A Mitigated Negative Declaration was Prepared. Public Hearing opened at 10:46 P.M. Public Hearing closed at 11:26 P.M. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to approve: A. The Mitigated Negative Declaration (MND) and Addendum; and B. The Mitigation Monitoring and Reporting Plan (MMRP); and C. The revised Site and Design Review application; and D. The two Design Enhancement Exceptions (DEEs); and E. The three density bonus concessions for the revised project at 441 Page Mill Road, based on Architectural Review (AR), Design DRAFT ACTION MINUTES Page 14 of 14 City Council Meeting Action Minutes: 6/15/15 Enhancement Exception (DEE), Context Based Design Criteria and Density Bonus Findings, and subject to the conditions in the draft Record of Land Use Action. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “the following change(s) to the Revised Draft Record of Land Use, Section 8. Conditions of Approval: Number 6, sentence three, replace “City may also” with “City shall also.” New Part F INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part F, “Number 7, sentences one and two change ‘three units’ to ‘five units.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part F, “Number 11, last sentence change ‘but normally mitigated’ to ‘but shall be mitigated.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part F, “Number 26, add at the end ‘All trees proposed on the plans shall be maintained for the life of the project.’” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Below Market Rate units will remain below market rate units for 50 years.” MOTION AS AMENDED PASSED: 5-4 DuBois, Filseth, Holman, Schmid no Adjournment: The meeting was adjourned at 12:59 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Special Meeting June 22, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:02 P.M. Present: Berman, Burt, DuBois, Filseth, Holman, Kniss arrived at 8:04 P.M., Scharff, Schmid, Wolbach Absent: Study Session 1. Presentation and Discussion Regarding the Page Mill Road Portion of the County Expressway Plan. Agenda Changes, Additions and Deletions None. Consent Calendar MOTION: Council Member Scharff moved, seconded by Council Member Kniss to approve Agenda Item Numbers 2-6. 2. Approval of a Contract With O'Grady Paving Inc. in the Amount of $1,901,151 for the FY 2015 Alma Street and Middlefield Road Paving Project, the 3rd of Three Contracts in the FY2015 Street Maintenance Program Project (CIP PE-86070). 3. Resolution 9529 Entitled, “Resolution of the Council of the City of Palo Alto Amending the 2014-2017 Limited Hourly Employee Compensation Plan to Implement Sick Leave Accrual.” 4. Authorization for Palo Alto Housing Corporation to Sell the Property They Own at 1259 Pine Street and to Provide Funding for the DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 6/22/15 Rehabilitation and Preservation of Affordable Units at 110-130 El Dorado Avenue, Along With Approval of an Associated Budget Amendment Ordinance 5331 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto.” 5. Resolution 9530 Entitled, “Resolution of the Council of the City of Palo Alto Approving a Professional Services Agreement Between the Northern California Power Agency and the Cities of Alameda, Palo Alto, Santa Clara and Oakland, Acting by and Through its Board of Port Commissioners, for Electric Transmission, Generation and Regulatory Consulting Services for a One Year Contract Term.” 6. Approval of a Memorandum of Understanding With the Silicon Valley Regional Interoperability Authority for Participation in the Regional Radio System, and Adoption of the Associated Budget Amendment Ordinance 5332 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto Ordinance for $1 Million.” MOTION PASSED: 9-0 Action Items 7. PUBLIC HEARING: Adoption of a Resolution 9531 Entitled, “Resolution of the Council of the City of Palo Alto Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein.” Public Hearing opened and closed without public comment at 8:21 P.M. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to adopt a Resolution overruling objections, confirming the report and ordering the abatement of costs to be a Special Assessment against the listed properties. MOTION PASSED: 9-0 DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 6/22/15 Inter-Governmental Legislative Affairs 8. Legislative Update, Review and Approval of the Draft Fall 2015 Semi- Annual Legislative Strategic Initiatives. MOTION: Council Member Scharff moved, seconded by Council Member Berman to support Assembly Member Gordon on AB 327- Prevailing Wage: Volunteer Exemption. MOTION PASSED: 9-0 MOTION: Council Member Berman moved, seconded by Council Member Scharff to support SB 16- Transportation Funding. AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to support SB 16- Transportation Funding contingent on the bill including support for mass transit and efforts to reduce single occupancy vehicle trips. AMENDMENT WITHDRAWN BY THE MAKER INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “to closely track SB 16- Transportation Funding and as soon as the outlines are more clear, refer this item to the Policy and Services Committee.” MOTION AS AMENDED PASSED: 9-0 MOTION: Council Member Burt moved, seconded by Mayor Holman to request the legislative advocate investigate legislative opportunities that would include a requirement of material of impact on the elected official on the conflict of interest. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “request the City Attorney investigate regulatory changes along the same lines and report to Policy and Services Committee.” AMENDMENT: Council Member Scharff moved, seconded by Council Member Berman to replace in the Motion, “request the City Attorney DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 6/22/15 investigate regulatory changes along the same lines and report to Policy and Services Committee” with “to direct the City Attorney to investigate regulatory or legislative opportunities that would include a requirement of material impact on the elected official on the conflict of interest and report to the Policy and Services Committee.” AMENDMENT FAILED: 4-5 Berman, Kniss, Scharff, Schmid yes MOTION AS AMENDED PASSED: 6-3 Berman, Kniss, Scharff no MOTION: Mayor Holman moved, seconded by Council Member XX to direct the Legislative Advocate to promote protections for retail tenancy related to Proposition 13 commercial reform. MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member Wolbach moved, seconded by Council Member Kniss to approve the Draft Fall 2015 Semi-Annual Legislative Strategic Initiatives. MOTION PASSED: 9-0 Action Items (Continued) 9. Review of a Draft Scope of Work for the Fry's Master Plan and Adoption of a Resolution Regarding the Use of Regional Transportation Funding (Continued from June 8, 2015). Council took a break from 9:49 P.M. to 9:58 P.M. MOTION: Council Member Filseth moved, seconded by Council Member Berman to defer taking up the Fry’s Master Plan until adoption of the California Avenue Area Concept Plan. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the end of the Motion, “or one year, whichever comes first.” MOTION AS AMENDED PASSED: 9-0 DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 6/22/15 Council Member Questions, Comments and Announcements Council Member Wolbach attended the Meeting the Challenge of Sea Level Rise in Santa Clara County summit hosted by Congresswoman Anna Eshoo and Assembly Member Rich Gordon on June 19. Council Member Scharff moderated one of the panels at the event. Council Member Kniss also attended this event. Council Member Scharff also attended the Meeting the Challenge of Sea Level Rise in Santa Clara County summit. He also attended World Music Day, which was well attended. He proposed closing University Avenue every Sunday on a trial basis. Council Member Kniss reported she will join Mayor Holman, Council Member DuBois and City Manager Jim Keene at the League of California Cities Mayor and Council Member Conference in Monterey. She reported that Council Member Scharff lobbied for NCPA (Northern California Power Agency) in Sacramento last Tuesday. Mayor Holman attended the United States Conference of Mayors in San Francisco. She met Ambassador Andrew Young at the Conference. Adjournment: The meeting was adjourned in memory and in honor of Charleston, North Carolina victims at 11:19 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 8 Special Meeting June 29, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:05 P.M. Present: Berman, Burt, Filseth, Holman, Kniss arrived at 6:17 P.M., Scharff, Schmid, Wolbach Absent: DuBois Special Orders of the Day 1. Recognition of Fire Explorer Madison Valentine and Her Honor of Being Selected the Explorer of the Year by the Santa Clara / San Mateo Region. Agenda Changes, Additions and Deletions None. Consent Calendar MOTION: Council Member Scharff moved, seconded by Vice Mayor Schmid to approve Agenda Item Numbers 2-9, 11-16, and remove Agenda Item Number 10- Authorize the City Manager or His Designee to Enter Into a 20- Year Lease Agreement with Pristine Sun to Install and Maintain Photovoltaic Systems at Five City-Owned Parking Structures from the Agenda as requested by Staff. 2. Approval and Authorization of the City Manager to Execute a Contract With Electronic Innovations, Inc. in the Amount of $272,914 for Phase 4 of the Video Surveillance and Intrusion Detection System Project (EL-04012) and 10 Percent Contingency of $27,000 for Related, but Unforeseen, Work for a Total Authorized Amount of $299,914. DRAFT ACTION MINUTES Page 2 of 8 City Council Meeting Action Minutes: 6/29/15 3. Approval of Contract Amendment No. 2 to S15155476 with AECOM for Consulting Services in the Amount of $133,000 for Technical Services and Studies to Develop Zoning Regulations to Address Hazardous Materials Limitations and Compliance in Industrial Areas. 4. Approval of a Three-Year Contract No. C15159248 With Geodesy for Maintenance, Support and Professional Services for the City’s Geographic Information System (GIS) in the Amount of $195,000 Per Year. 5. Approval of a One–Year Extension of the Option to Lease Agreement Between the City of Palo Alto and the Palo Alto History Museum for the Roth Building Located at 300 Homer Avenue and Approval of a Budget Amendment Ordinance 5333 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto in the Capital Improvement Fund to Establish a Roth Building Historical Rehabilitation Reserve in the Amount of 3.88 Million Dollars.” 6. Approval of Amendment One to Contract No. C14152025 With SP Plus to Add $637,652 for Expansion of the Downtown Valet Parking Program to Additional Garages and a Total Not to Exceed Amount of $997,652 Over a Three Year Period. 7. Approval and Authorization of the City Manager to Execute a Contract With Anderson Pacific Engineering Construction, Inc., in the Amount of $4,679,100, for the Seismic Upgrade of Four Steel Tanks and Three Receiving Stations Project, WS-07000, WS-08001 and WS-09000 and Budget Amendment Ordinance 5334 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto Increasing the Water Regulation System Improvements Project Budget (WS-08000) in the Amount of $786,375.” 8. Approval of Contract No. C15159142 With Saviano Company in the Amount of $372,550 With a 10 Percent Contingency for Unforeseen Expenses for Tennis Court Improvements at Hoover Park, Terman Park and Weisshaar Park (Capital Improvement Project PG-06001). 9. Approval of an Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance. DRAFT ACTION MINUTES Page 3 of 8 City Council Meeting Action Minutes: 6/29/15 10. Authorize the City Manager or His Designee to Enter Into a 20-Year Lease Agreement (Attachment A) with Pristine Sun to Install and Maintain Photovoltaic Systems at Five City-Owned Parking Structures. 11. Resolution 9532 Entitled, “Resolution of the Council of the City of Palo Alto Determining the Proposed Calculation of the Appropriations Limit for Fiscal Year 2016.” 12. Approval of Contract Amendment No. 3 With Van Scoyoc Associates Inc. for a One-Year Extension in an Amount Not to Exceed a Total of $101,000 for Federal Legislative Representation. 13. Resolution 9533 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute Future Grant Agreements Offered to the City by the Federal Aviation Administration (FAA) and/or the California Department of Transportation (DOT) for the Preparation of Planning Documents and the Study, Design and Construction of Safety, Security and Maintenance Improvements at the Palo Alto Airport and Authorizing the City Manager to Execute Supporting Documents Associated with the Application and Acceptance of Said Grant Funds.” 14. Staff Recommendation to Initiate a Special Recruitment to Fill One Unscheduled Vacancy on the Utilities Advisory Commission, Ending on April 30, 2018. 15. Approval of a Contract With Global Learning Solution Inc. in the Amount of $250,000 for the Support of Human Resources SAP Modules and Business Processes Improvements. 16. Approval of Amendment No. 5 to Add the Amount of $250,000 to Contract No. S12141479 With Val Security, Inc. and Extend Term of Agreement by Six Months to December 31, 2015. MOTION FOR AGENDA ITEM NUMBERS 2-9, 11-16 PASSED: 8-0 DuBois absent Action Items 17. Buena Vista Mobile Home Park: Update and Possible Direction Regarding Affordable Housing Funds. DRAFT ACTION MINUTES Page 4 of 8 City Council Meeting Action Minutes: 6/29/15 MOTION: Council Member Wolbach moved, seconded by Council Member Berman to identify and set aside $8 million plus $6.5 million in affordable housing funds to match Santa Clara County funds made available for the purpose of preserving affordable housing at Buena Vista Mobilehome Park and that Staff will return to Council with draft guidelines to allow for the use of Commercial Housing Funds for this purpose. MOTION PASSED: 8-0 DuBois absent Council took a break from 7:41 P.M. to 7:52 P.M. 18. PUBLIC HEARING: to Hear Objections to the Levy of Proposed Assessments on the Palo Alto Downtown Business Improvement District and Adoption of a Resolution 9534 Entitled, “Resolution of the Council of the City of Palo Alto Confirming the Report of the Advisory Board and Levying Assessment for Fiscal Year 2016 on the Downtown Palo Alto Business Improvement District” and Approve a Fiscal Year 2016 Budget Amendment Ordinance 5335 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto in the Business Improvement District Fund.” Public Hearing opened and closed without public comment at 7:55 P.M. MOTION: Vice Mayor Schmid moved, seconded by Council Member Filseth to: A. Adopt a Resolution confirming the report of the Advisory Board and levying an assessment for Fiscal Year 2016 on the Downtown Palo Alto Business Improvement District; and B. Adopt a Budget Amendment Ordinance for Fiscal Year 2016 reducing the revenue estimate by $40,000 from $140,000 to $100,000 and reducing the expenditure budget by $11,800 from $148,000 to $136,200 for the Business Improvement District offset with a reduction of the projected ending fund balance by $28,200. MOTION PASSED: 8-0 DuBois absent 19. Adoption of an Ordinance Deleting Section 18.42.110 of Chapter 18.42 of Title 18 of the Palo Alto Municipal Code and Adding a New Section 18.42.110 Pertaining to the Siting and Permitting of Wireless DRAFT ACTION MINUTES Page 5 of 8 City Council Meeting Action Minutes: 6/29/15 Communications Facilities; Exempt from California Environmental Quality Act Under CEQA Guidelines Section 15061(b) and 15301, 15302 and 15305. MOTION: Council Member Kniss moved, seconded by Council Member Scharff to: A. Adopt an Ordinance Deleting Section 18.42.110 of Chapter 18.42 of Title 18 of the Palo Alto Municipal Code and Adopt a New Section 18.42.110 Pertaining to the Siting and Permitting of Wireless Communications Facilities, as recommended by the Planning and Transportation Commission; and B. Direct the City Manager or designee to suspend the Anthem Telecomm contract to study construction of a large standalone tower in light of the changed legal and technological landscape. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “request that the U.S. Federal Communications Commission provide an annual update on the status of health studies that they and the World Health Organization conduct.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct the City’s federal legislative advocates to add this issue to their priorities.” MOTION AS AMENDED PASSED: 8-0 DuBois absent 20. Approval of a Record of Land Use Action for a Site and Design Permit and a Conditional Use Permit to Implement a Public Bicycle/Pedestrian Path Connecting Wilkie Way to the Redwood Gate Neighborhood, with Associated Site Improvements, on a 5,000 Square-Foot Site Fronting Wilkie Way, Zoned CS-L-D (Service Commercial with Landscape and Site and Design Combining Districts) located at 4261 El Camino Real. Environmental Assessment: Exempt from CEQA Pursuant to Sections 15303 and 15304 (New Construction of Small Structures and Minor Alterations to Land). MOTION: Council Member Burt moved, seconded by Council Member Scharff to approve the Site and Design Review and Conditional Use Permit to allow the construction of the proposed pedestrian and bicycle pathway, and DRAFT ACTION MINUTES Page 6 of 8 City Council Meeting Action Minutes: 6/29/15 associated site improvements based upon the findings and the conditions of approval contained in the Record of Land Use Action. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the end of the Motion, “for the property located at 4261 El Camino Real along the Wilkie Way Path.” MOTION AS AMENDED PASSED: 8-0 DuBois absent 21. Consideration of Impasse and Factfinding Recommendation Regarding RPP Enforcement Staffing, Approval of Three-Year Contract to Serco, Inc. for $1,509,630 for Contract Enforcement for the Downtown Residential Preferential Parking (RPP) Program, Approval of a Budget Amendment Ordinance 5336 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto in the Amount of $378,000 To Appropriate Funds for the First Year of the Contract,” and Adoption of Resolution 9535 Entitled, “Resolution of the Council of the City of Palo Alto Amending the Administrative Penalty Schedule for Violation of the RPP Program.” MOTION: Council Member Kniss moved, seconded by Council Member Scharff to: A. Implement the City’s last, best, and final offer to Service Employees International Union, Local 521 (SEIU) and: 1. Authorize the City Manager or designee to award a three-year contract in the amount of $1,509,630 to Serco, Inc. for enforcement of the Downtown Residential Preferential Parking (RPP) program; and 2. Approve a Budget Amendment Ordinance (BAO) in the amount of $378,000 to cover contract costs for the first year, transferring funds from the General Fund to the Residential Parking Permit Fund offset with a reduction in the Budget Stabilization Reserve; and B. Adopt a Resolution amending the administrative penalty schedule to include a penalty amount for violation of the Residential Preferential Parking (RPP) program. DRAFT ACTION MINUTES Page 7 of 8 City Council Meeting Action Minutes: 6/29/15 MOTION PASSED: 8-0 DuBois absent 22. Consideration of Capping the Fee for Establishment of Single Story Overlay Districts and Referral of a Policy Discussion Regarding Single Story Overlay Districts and Alternative Neighborhood Protections. Council Member Wolbach advised he would not be participating in this Agenda Item as it relates to Single-Story Overlay (SSO) fees because he lives in a neighborhood that is considering an application for an SSO. Vice Mayor Schmid advised he would not be participating in this Agenda Item as it relates to Single-Story Overlay (SSO) fees because he lives in a neighborhood that is considering an application for an SSO. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to: A. Direct Staff to continue the past practice of treating Single Story Overlay District (SSO) requests as re-zonings initiated by the Planning & Transportation Commission so that no fee would be required; and B. To return with an Ordinance updating the Municipal Code to reflect this change. MOTION PASSED: 6-0 Schmid, Wolbach not participating, DuBois absent MOTION: Council Member Scharff moved, seconded by Council Member Wolbach that through the Comprehensive Plan Update we explore giving neighborhoods the option to institute overlays that would provide protections and/or alternative neighborhood protections. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion, “giving neighborhoods the option to institute overlays that would provide protections” with “establishing a process for neighborhoods to institute design overlays.” SUBSTITUTE MOTION: Council Member Burt moved, seconded by Council Member Kniss that through the Comprehensive Plan Update we explore giving neighborhoods the option to institute overlays that would provide protections and/or alternative neighborhood protections. DRAFT ACTION MINUTES Page 8 of 8 City Council Meeting Action Minutes: 6/29/15 INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Substitute Motion, “giving neighborhoods the option to institute overlays that would provide protections” with “opportunities to institute overlays.” SUBSTITUTE MOTION AS AMENDED PASSED: 8-0 DuBois absent Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member Kniss requested the traffic lights at Town and Country Village be fixed, and signs prohibiting left turns during high traffic hours from Middlefield Road onto Hawthorne Avenue and Everett Avenue be installed while the City Council is on break. She also requested improved timing of traffic lights along Oregon Expressway. Mayor Holman reported she, Council Members DuBois and Kniss attended the California League of Cities’ Mayors and Council Members Executive Forum in Monterey last week. She also attended the United States Conference of Mayors. Adjournment: The meeting was adjourned in honor of the United States Supreme Court recognizing the values of the United States at 10:18 P.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 11 Regular Meeting August 17, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:07 P.M. Present: Berman, Burt, DuBois, Filseth, Holman, Kniss, Schmid, Wolbach Absent: Scharff Study Session 1. Update on Integrated Parking Strategy for Downtown: Parking Management, Parking Supply and Transportation Demand Management. Special Orders of the Day 2. Proclamation Recognizing "Palo Alto Perry" as the Unofficial Goodwill Ambassador of the City of Palo Alto. 3. Selection of Applicants to Interview on August 26, 2015 for the Utilities Advisory Commission. MOTION: Council Member Berman moved, seconded by Council Member DuBois to interview all applicants for the Utilities Advisory Commission. MOTION PASSED: 7-1 Kniss no, Scharff absent Agenda Changes, Additions and Deletions MOTION: Vice Mayor Schmid moved, seconded by Mayor Holman to move forward Agenda Item Number 28- Authorization for the Mayor to Sign a Letter Regarding Palo Alto’s Position… to be heard concurrently with Agenda DRAFT ACTION MINUTES Page 2 of 11 City Council Meeting Draft Action Minutes: 8/17/15 Item Number 24- Proposed Response to the Santa Clara Valley Transportation Authority’s (VTA’s)… MOTION PASSED: 8-0 Scharff absent Consent Calendar MOTION: Council Member DuBois moved, seconded by Council Member Kniss to remove Agenda Item Number 19- Adoption of an Ordinance Amending Section 2.040.160 (City Council Minutes) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Require Action Minutes and a Verbatim Transcript of All Council and Council Standing Committee Meetings, and to direct Staff to bring this Agenda Item back on August 24, 2015 on the Consent Calendar, with the change that the City Clerk will bring Action Minutes to Council for approval. MOTION PASSED: 8-0 Scharff absent MOTION: Council Member Kniss moved, seconded by Vice Mayor Schmid to approve Agenda Item Numbers 4-18 and 20-21. 4. Approval to Award Contract Number C15158600 to Rutherford & Chekene in the Amount of $129,432 for Identification of Potentially Seismically Vulnerable Buildings and Budget Amendment Ordinance 5337 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto Amending the Budget for Fiscal Year 2016 by Transferring $29,432 From the General Fund Budget Stabilization Reserve to the Planning and Community Environment Department for a Seismic Inventory Study.” 5. Resolution 9536 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute and Amend as Necessary a New Interconnection Agreement With the Northern California Power Agency and Pacific Gas and Electric Company for Electric Related Transmission Services.” 6. Policy and Services Committee Recommendation to Accept the Auditor's Office Quarterly Report as of March 31, 2015. DRAFT ACTION MINUTES Page 3 of 11 City Council Meeting Draft Action Minutes: 8/17/15 7. Policy and Services Committee Recommendation to Accept the City Auditor's Office Fiscal Year 2016 Proposed Work Plan. 8. Resolution 9537 Entitled, “Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2015-16 Property Tax Levy of $14.77 Per $100,000 of Secured and $15.94 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness (Measure N Library Projects).” 9. Adoption of a Park Improvement Ordinance for the Pilot Batting Cages Project at Former PASCO Site at the Baylands Athletic Center. 10. Adoption of a Park Improvement Ordinance for Improvements at Monroe Park. 11. Adoption of a Park Improvement Ordinance for the Byxbee Park Hills Interim Park Concepts. 12. Approval of Amendment Number One to Contract Number S15155738 With American Reprographics Company, LLC (ARC) for an Archiving and Information Management Solution in a Total Amount Not to Exceed $433,235. 13. Policy and Services Committee Recommendation to Council on Project Safety Net Community Collaborative Update and Recommendation for Next Steps. 14. Approval of Amendment Number 4 to Contract Number C10131396 With CDM Smith in the Amount of $14,500 for a Total Compensation Not to Exceed $6,363,152 for the El Camino Park Reservoir Project, WS-08002 and the El Camino Park Restoration Project, PE-13016. 15. Budget Amendment Ordinance 5338 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto Amending the Budget for Fiscal Year 2016 to Increase Revenue Estimates for Grants in the Planning and Community Environment Department by $37,000 With a Corresponding Increase to the Expenditure Allocation for the Planning and Community Environment Department of $37,000 in the General Fund.” DRAFT ACTION MINUTES Page 4 of 11 City Council Meeting Draft Action Minutes: 8/17/15 16. Approval and Authorization for the City Manager or His Designee to Execute the Off-Taker Generation Percentage Protection Amendment to the City's Power Purchase Agreement With Iberdrola Renewables, LLC. 17. Resolution 9538 Entitled, “Resolution of the City Council of the City of Palo Alto Authorizing the City Manager to Accept a Grant of Funds for Fiscal Year 2016 in the Amount of $41,053 from the California Department of Alcoholic Beverage Control for Increased Education and Enforcement Efforts.”; and Budget Amendment Ordinance 5339 Entitled, “Budget Amendment Ordinance of the Council of the City of Palo Alto Amending the Budget for Fiscal Year 2016 to Increase Revenue Estimates for Increased Education and Enforcement of Overservice/Overconsumption of Alcohol from the State of California Department of Alcoholic Beverage Control (ABC) in The General Fund by $41,053 With a Corresponding Increase to the Overtime Expenditure Allocation for the Police Department of $41,053 in the General Fund.” 18. Utilities Advisory Commission Recommendation to Approve Work Plan to Evaluate and Implement Greenhouse Gas Reduction Strategies by Reducing Natural Gas and Gasoline use Through Electrification. 19. Adoption of an Ordinance Amending Section 2.040.160 (City Council Minutes) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Require Action Minutes and a Verbatim Transcript of All Council and Council Standing Committee Meetings, and Delete the Requirement for Sense Minutes. 20. Approval and Authorization of the City Manager to Execute a Contract with Lewis & Tibbetts, Inc. and Purchase Related Materials in the Amount of $4,250,000 for Trenching and Substructure Installation and 10 Percent Contingency of $425,000 for Related but Unforeseen Work, for a Total Authorized Amount of $4,675,000. 21. Clerical Changes to Ordinance 5326 Amending and Restating Chapter 16.17 of the Palo Alto Municipal Code, California Energy Code, 2013 Edition, and Local Amendments and Related Findings and Repealing Chapter 16.18 of the Palo Alto Municipal Code. DRAFT ACTION MINUTES Page 5 of 11 City Council Meeting Draft Action Minutes: 8/17/15 MOTION FOR AGENDA ITEM NUMBERS 4-18 AND 20-21 PASSED: 8-0 Scharff absent Action Items 22. TEFRA HEARING: Regarding Conduit Financing for the Colorado Park Apartments Project Located at 1141 Colorado Avenue, Palo Alto, and Resolution 9540 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Issuance of California Municipal Finance Authority Revenue Bonds in an Aggregate Principal Amount Not to Exceed $25,000,000 for the Purpose of Financing the Acquisition, Rehabilitation, Improvement and Equipping of an Affordable Multifamily Rental Housing Facility and Certain Other Matters Relating Thereto.” MOTION: Council Member Kniss moved, seconded by Mayor Holman to Adopt a Resolution approving the issuance of the bonds by the California Municipal Finance Authority (CMFA) for the benefit of Colorado Park, LP (Borrower). MOTION PASSED: 8-0 Scharff absent 23. PUBLIC HEARING AND PROPOSITION 218 HEARING: Finance Committee Recommendation That the City Council Adopt Two Resolutions: 1) Resolution 9541 Entitled, “Resolution of the Council of the City of Palo Alto Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to Increase Water Rates 4% and Add Drought Surcharges;” 2) Resolution 9542 Entitled, “Resolution of the Council of the City of Palo Alto Activating Drought Surcharges at the 20% Reduction Level in Response to Mandatory Potable Water Use Restrictions Imposed by the State Water Resources Control Board.” Public Hearing opened and closed without public comment at 8:19 P.M. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to: DRAFT ACTION MINUTES Page 6 of 11 City Council Meeting Draft Action Minutes: 8/17/15 A. Adopt a Resolution amending Rate Schedules: W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to increase rates 4 percent and add drought surcharges effective September 1, 2015; and B. Adopt a Resolution activating the drought surcharges at the 20 percent reduction level effective September 1, 2015. MOTION PASSED: 8-0 Scharff absent 24. Proposed Response to the Santa Clara Valley Transportation Authority’s (VTA’s) “Call for Projects” for Inclusion in the Countywide Long-Range Transportation Plan (VTP 2040) & Discussion of the Potential Envision Silicon Valley 2016 Transportation Tax Measure. 28. Authorization for the Mayor to Sign a Letter Regarding Palo Alto’s Position on New Funding for State and Local Transportation Infrastructure. MOTION: Council Member Kniss moved, seconded by Council Member Wolbach to move Agenda Item Number 25- Adoption of a Resolution Amending the Affordable Housing Guidelines to Permit Use of the Commercial Housing Fund for Preservation of Existing Units forward to be heard now. MOTION PASSED: 8-0 Scharff absent 25. Resolution 9539 Entitled, “Resolution of the Council of the City of Palo Alto Amending and Updating the Housing Reserve Guidelines as the Affordable Housing Fund Guidelines.” MOTION: Council Member Berman moved, seconded by Council Member Wolbach to adopt a Resolution amending the City’s Affordable Housing Guidelines to allow the Commercial Housing Fund to be used to support the preservation of existing housing as well as construction of new affordable housing including changes provided in the At Place Memorandum from Staff. DRAFT ACTION MINUTES Page 7 of 11 City Council Meeting Draft Action Minutes: 8/17/15 MOTION PASSED: 8-0 Scharff absent Agenda Item Numbers 24 and 28 continued at this point in the meeting. 24. Proposed Response to the Santa Clara Valley Transportation Authority’s (VTA’s) “Call for Projects” for Inclusion in the Countywide Long-Range Transportation Plan (VTP 2040) & Discussion of the Potential Envision Silicon Valley 2016 Transportation Tax Measure. 28. Authorization for the Mayor to Sign a Letter Regarding Palo Alto’s Position on New Funding for State and Local Transportation Infrastructure. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to authorize the Mayor to sign onto a joint letter to the Santa Clara Valley Transportation Authority (VTA) from up to eleven North County and West Valley cities. MOTION PASSED: 8-0 Scharff absent MOTION: Council Member DuBois moved, seconded by Council Member Kniss to authorize the Mayor to sign a letter regarding the City of Palo Alto’s position on new funding for state and local transportation infrastructure. MOTION PASSED: 8-0 Scharff absent MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to authorize a response to the VTA “Call for Projects” consisting of the lists of proposed transportation projects and come back after Council discussions of the Comprehensive Plan Update on the Transportation Element to further prioritize projects. AMENDMENT: Council Member Wolbach moved, seconded by Council Member DuBois to highlight four priorities in descending order of priority: A. Dedicated funding for Caltrain grade separations in Palo Alto or North Santa Clara County and other Caltrain capacity improvements; and B. Bicycle and pedestrian improvements; and DRAFT ACTION MINUTES Page 8 of 11 City Council Meeting Draft Action Minutes: 8/17/15 C. Better first and last mile service particularly in North Santa Clara County; and D. Support VTA’s plan to support transportation management associations and other transportation demand management measures. INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Amendment, “in descending order of priority.” AMENDMENT TO THE AMENDMENT: Council Member Burt moved, seconded by Mayor Holman to add to the Amendment, “The VTA prioritization process should support proportional support for workers and their needs to reach their employment locations.” AMENDMENT TO THE AMENDMENT FAILED: 4-4 Berman, Filseth, DuBois, Kniss no, Scharff absent INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Amendment in Part A, “or North Santa Clara County.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Amendment in Part C, “particularly in North Santa Clara County.” AMENDMENT TO THE AMENDMENT: Mayor Holman moved, seconded by Council Member XX to add to the Amendment, “Include projects not included in Sections A-D.” AMENDMENT TO THE AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT AS AMENDED PASSED: 5-3 Filseth, Kniss, Schmid, No, Scharff absent MOTION AS AMENDED PASSED: 8-0 Scharff absent 26. Discussion of Possible Adjustments to the Comprehensive Plan Update Community Advisory Committee (CAC). DRAFT ACTION MINUTES Page 9 of 11 City Council Meeting Draft Action Minutes: 8/17/15 Council Member Kniss left the meeting at 12:00 A.M. MOTION: Council Member DuBois moved, seconded by Council Member Burt: A. For Council to directly appoint five Citizen Advisory Committee for the Comprehensive Plan Update (CAC) Members, using criteria specifically focused on increased involvement of more neighborhoods south of Oregon Expressway, with a focus on neighborhood association involvement. Anyone can apply, using the previous application form. Timeline proposes accepting applications through August 25, with voting by Council in two weeks based on the written applications, so that new members are seated as quickly as possible; and B. To direct Staff to re-evaluate the schedule and propose an extended timeline; and C. To add a process for four CAC Members to submit a minority opinion if they desire; and D. The CAC meetings will have written minutes and video recordings. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion at the end of Part A, sentence one “greater age diversity, and better renter/homeowner balance.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion in Part A, “including” after “neighborhood association involvement.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion Part A, “association.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to remove from the Motion, “including.” AMENDMENT WITHDRAWN BY THE MAKER DRAFT ACTION MINUTES Page 10 of 11 City Council Meeting Draft Action Minutes: 8/17/15 AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to replace in the Motion, “For the City Manager” with “For Council.” AMENDMENT WITHDRAWN BY THE MAKER INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion at the end of Part B, “including utilization of sub-committees as a part of the Comprehensive Plan Update work, and sub-committee meetings would be noticed and open to the public.” CALL THE QUESTION: Vice Mayor Schmid moved, seconded by Mayor Holman to call the question. CALL THE QUESTION PASSED: 7-0 Kniss, Scharff absent MOTION AS AMENDED PASSED: 7-0 Kniss, Scharff absent 27. Designation of Voting Delegates and Alternates for the League of California Cities Annual 2015 Conference. MOTION: Vice Mayor Schmid moved, seconded by Council Member Berman to designate Council Member Burt as the Voting Delegate and Council Members DuBois and Wolbach as Alternates for the League of California Cities Annual Conference. MOTION PASSED: 7-0 Kniss, Scharff absent Inter-Governmental Legislative Affairs 28. Authorization for the Mayor to Sign a Letter Regarding Palo Alto’s Position on New Funding for State and Local Transportation Infrastructure. Council Member Questions, Comments and Announcements DRAFT ACTION MINUTES Page 11 of 11 City Council Meeting Draft Action Minutes: 8/17/15 None. Adjournment: The meeting was adjourned at 1:29 A.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting August 24, 2015 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:00 P.M. Present: Berman, Burt, DuBois, Filseth arrived at 6:02 P.M., Holman, Kniss arrived at 6:02 P.M., Scharff arrived at 6:02 P.M., Schmid arrived at 6:02 P.M., Wolbach Absent: Closed Session MOTION: Council Member DuBois moved, seconded by Council Member Burt to go into Closed Session. MOTION PASSED: 5-0 Filseth, Kniss, Scharff, Schmid absent Council went into Closed Session at 6:01 P.M. 1. CONFERENCE WITH CITY LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Suzanne Mason, Kathy Shen, Frank Lee, Nancy Nagel, Dania Torres Wong, Sandra Blanch, Lalo Perez, David Ramberg, Joe Saccio, Molly Stump, Walter Rossmann, Eric Nickel, Catherine Capriles, Geo Blackshire, Albert Yang, Natalie Korthamar, Dennis Burns) Employee Organizations: Palo Alto Police Officers Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA) and Employee Organization: International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Manager’s Association (PAPMA) Authority: Government Code Section 54957.6(a). Council returned from Closed Session at 7:31 P.M. DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Action Minutes: 08/24/15 Mayor Holman announced no reportable action. Agenda Changes, Additions and Deletions None. Consent Calendar Council Member DuBois registered no votes on Agenda Item Numbers 2 and 6. MOTION: Vice Mayor Schmid moved, seconded by Council Member Kniss to approve Agenda Item Numbers 2-6. 2. Adoption of an Ordinance Changing the End of Term Date for Commissioners Serving on the Human Relations Commission, Library Advisory Commission, Public Art Commission and Utilities Advisory Commission from April 30 to May 31 of Various Years and Making Minor Non-substantive Language Changes. 3. Approval of an Amendment to the Office of Emergency Services Command, Control, Communications, Computers, and Information (C4I) Critical Emergency Response Contract Number C13149763 to Add an Additional $25,000 in Funding to the Contract for a Total Not to Exceed Amount of $275,000. 4. Policy & Services Committee and Staff Recommendation That the City Council Authorize a Request for Proposals for; a Technical Study of Increased Air Traffic Noise, to Designate a Council Member to Act as a Liaison to Engage in Regional Mitigation and Advocacy Efforts, Adopt a Resolution 9543 Entitled, “Resolution of the Council of the City of Palo Alto Urging the Federal Aviation Administration to Address Increased Aircraft Noise in Palo Alto, and Direct Staff to Engage in Additional Outreach, Coordination and Advocacy Activities Regarding Aircraft Noise.” 5. Adoption (with Minor Staff-Initiated Changes Following First Reading) of an Ordinance 5340 Entitled, “Ordinance of the Council of the City of Palo Alto Deleting Section 18.42.110 of Chapter 18.42 of Title 18 of the Palo Alto Municipal Code and Adding a New Section 18.42.110 Pertaining to the Siting and Permitting of Wireless DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Action Minutes: 08/24/15 Communications Facilities; Exempt from California Environmental Quality Act under CEQA Guidelines Section 15061(b) and 15301, 15302 and 15305. (FIRST READING: June 29, 2015, Passed: 8-0, DuBois absent).” 6. Approval of Memorandum of Understanding Between the City of Palo Alto and Caltrain Regarding Vegetation Removal and Fencing Enhancements and an Intrusion Detection Camera System Beta Test in the Caltrain Corridor in Palo Alto and Budget Amendment Ordinance 5341. MOTION FOR AGENDA ITEM NUMBERS 3-5 PASSED: 9-0 MOTION FOR AGENDA ITEM NUMBERS 2 AND 6 PASSED: 8-1 DuBois no Action Items 7. Recommendation to Adopt an Ordinance Implementing a Local Minimum Wage Requirement of $11.00 by January 1, 2016 and Discussion of Collaborating With Other Cities to Implement a Regional Minimum Wage of $15.00 Per Hour by 2018. MOTION: Council Member Berman moved, seconded by Council Member Scharff to: A. Adopt an Ordinance Adding Chapter 4.62 to Title 4 of the Palo Alto Municipal Code to Require the Payment of a City-Wide Minimum Wage to take effect on January 1, 2016; and B. Establish a base wage of $11.00 to commence of January 1, 2016; and C. That Policy & Service Committee continue to study and discuss additional increases in coordination with surrounding cities. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion at the beginning of Part C, “Adopt a goal of raising the minimum wage to $15.00 by 2018 and to coordinate and seek to create an aligned minimum wage with surrounding cities.” DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Action Minutes: 08/24/15 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Refer to Policy and Services Committee additional discussion of considerations of exceptions, and enforcement, to include evaluation of a process for these additional discussions.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion in Part D, “including but not limited to tipped wait staff in restaurants and seasonal teenage employees” after “of exceptions.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion in Part D, “impacts” after “teenage employees.” MOTION AS AMENDED PASSED: 9-0 8. Approval of Response to Grand Jury Report “A Slow Rising Emergency– Sea Level Rise.” MOTION: Council Member Burt moved, seconded by Council Member Wolbach to approve the response to the Santa Clara County Civil Grand Jury Report “A Slow Rising Emergency – Sea Level Rise” incorporating guidance received from Council; and request the Mayor send a letter to the Grand Jury with the City’s response by the specified deadline, September 15, 2015. MOTION PASSED: 9-0 9. Approval of Response to Grand Jury Report on Protecting Our Most Vulnerable Residents. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to approve the response to the 2014-2015 Santa Clara County Civil Grand Jury Report entitled, “Protecting Our Most Vulnerable Residents.” MOTION PASSED: 9-0 10. PUBLIC HEARING: Ordinance to Amend Chapters 18.38, PC Planned Community District Regulations, and 18.79, Development Project Preliminary Review Procedures; Exempt from CEQA under CEQA Guidelines 15061. DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Action Minutes: 08/24/15 Public Hearing opened at 10:11 P.M. Public Hearing closed at 10:44 P.M. MOTION: Council Member DuBois moved, seconded by Council Member Scharff to direct Staff to return with an Ordinance removing the “PC” Planned Community Zoned District for PC applications not already approved, retaining provisions for existing PCs. SUBSTITUTE MOTION: Council Member Burt moved, seconded by Mayor Holman to request that the Mayor appoint an ad hoc committee for the purpose of evaluating the benefits that have been derived from PCs and if there are alternative mechanisms that could provide these benefits, or alternately, at a high level, a set of reforms that are necessary to reform the PC process should it be retained. AMENDMENT TO THE SUBSTITUTE MOTION: Vice Mayor Schmid moved, seconded by Council Member Scharff to add to the Substitute Motion, “following the approval of the Comprehensive Plan” after “request that.” AMENDMENT TO THE SUBSTITUTE MOTION PASSED: 6-3 Burt, Holman, Wolbach, no SUBSTITUTE MOTION AS AMENDED PASSED: 6-3 DuBois, Filseth, Scharff no MOTION: Mayor Holman moved, seconded by Vice Mayor Schmid to direct Staff to bring back changes to Municipal Code Section 18.79, Development Project Preliminary Review Procedures at a subsequent Council meeting. MOTION PASSED: 9-0 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member Wolbach encouraged colleagues to be open to creative approaches for generating affordable housing. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Action Minutes: 08/24/15 Council Member Burt reported the Mayoral appointments of himself and Council Member DuBois to the Joint Recycled Water Advisory Committee, a collaborative effort with Santa Clara Valley Water District to explore potential direction and capital investment in potable and non-potable water recycling opportunities. The Committee tentatively approved expanding to include additional partner agencies including the Regional Water Quality Control Plant. Council Member Burt was selected as Committee Chair. Council Member Kniss reported the success of new signage at the intersections of Everett Avenue at Middlefield Road and Hawthorne Avenue at Middlefield Road. Traffic enforcement at these intersections has generated numerous citations. Approximately six accidents have been reported at these intersections. She hopes that recent activity near the traffic signals at Palo Alto High School is related to traffic signal synchronization improvements. Santa Clara County has not made significant progress towards traffic signal synchronization improvements along Oregon Expressway. Council Member Scharff suggesting bringing back a telephone number dedicated to complaints regarding the Gasoline Leaf Blower Ordinance. This service was cut during the economic downturn. Adjournment: The meeting was adjourned at 12:10 A.M. City of Palo Alto (ID # 5955) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/2/2015 City of Palo Alto Page 1 Summary Title: Renewal of SAP Maintenance Contract Title: Approval of a 3-Year Contract Extension with SAP America for Maintenance and Support, Contract C14151181 in an Amount Not to Exceed $742,811 From: City Manager Lead Department: IT Department Recommended Motion Staff recommends that the Council: Approve a three year extension to the software maintenance contract with SAP Public Services Inc. C14151181 to continue to provide software maintenance services for the City’s Enterprise Resource Planning system through December 30, 2018. Recommendation Approve and authorize the City Manager or his designee to execute the attached three year extension to the software maintenance contract with SAP Public Services Inc. in the amount not to exceed $742,811. The contract will be for the term of January 1, 2016 to December 30, 2018. Background The City’s history with SAP began, in 2002, when the City selected SAP as its preferred vendor for an Enterprise Resource Planning system. The purpose was integrating various business processes within the City, which enabled Staff to move in the direction of Electronic Government. The SAP system has been running since 2003, supporting Accounting, Finance, Purchasing, Project Management, Plant Maintenance, Budgeting, Payroll, Human Resource Management, and Service Order Management. In 2009, the City completed a major upgrade and replaced the former utility billing system (Banner) with the implementation of the SAP Industry Solution Utilities (IS-U) module, which includes Customer Relationship Management, Utilities Customer Electronic Services (also known as My Utilities Account customer portal), and Business Intelligence systems. City of Palo Alto Page 2 By supporting the critical business processes in Finance, Procurement, HR, and Utilities’ Meter Read – Billing – Payment - Collection, SAP has become an integral part of the City’s business continuity. Examples of information managed within the SAP ERP include:  Manages and maintains a City budget of over a half billion dollars  Issues 11,000 Accounts Payable checks, processes 2,200 purchases documents, and issues 36,000 payroll checks each year  Generates 370,000 utilities invoices and collects approximately $220 million for 30,500 utilities accounts  Administers 14,000 active customers accounts registered to use “My Utilities Account” for e-bills and online payments  Provides concise business information to support 38,000 incoming calls into the Utilities Customer Service Center  Interfaces with City Business Partners such as Wells Fargo, Check Free, JP Morgan (procurement card services), Green Waste (refuse), Hartford, and ICMA as well as other non-SAP City systems The original contract with SAP was signed in 2002. In 2007, a new five year contact was executed, which expired on December 31, 2012. In 2013 a new three year contact was executed, which will expire on December 31, 2015. Discussion SAP is a highly complex system with processes integrated between various modules. SAP requires a high degree of specialized expertise to provide effective ongoing maintenance and support. The current SAP contract encompasses basic SAP maintenance and support of standard software. This includes, programming defect corrections (i.e. Service Packs), functionality upgrades, and legally mandated enhancements (i.e. HR/Payroll). The extension of the SAP maintenance contract comes at a time when Staff is conducting an assessment of the City’s current SAP environment, business processes, support resources needs, and developing a strategic plan for the future of the Enterprise Resource Planning system. This assessment is one of the approved FY 2016 projects for the IT Department. Until the full assessment report and Enterprise Resource Planning strategic plan is ready (currently anticipated to be June 2017), staff recommends extending the contract with SAP for three years to maintain current maintenance and support levels. Following completion of the strategic plan it will take the City some time to implement the recommended strategy. As in previous contracts, there is an early termination clause if required. City of Palo Alto Page 3 Resource Impact Funding for this contract ($247,604 annually) was budgeted in the Technology Fund as part of the Fiscal Year 2016 Adopted Budget. Funding for this contract in Fiscal Years 2017 and 2018 are subject to annual appropriation of funds. Policy Implications Approval of these contracts is consistent with current City policies. Environmental Review This is not a project under the California Environmental Quality Act (CEQA). Attachments:  Attachment A: C14151181 Amendment SAP Renewal (PDF) Amendment Issued October 6, 2015 to Appendix 1, as amended, effective July 22, 2002 Appendix 2, effective July 22, 2002 Appendix 7 effective July 25, 2007 Appendix 10 effective December 18, 2012 (collectively “ the Appendices”) to Software End-User License Agreement ("Agreement") C14151181 effective July 22, 2002 between CITY OF PALO ALTO ("Licensee") and SAP Public Services, Inc. ("SAP") As of the issuance date of October 6, 2015, this Amendment modifies the above referenced Appendices, incorporated here by reference, between the parties. In any instance in which a provision of this Amendment contradicts or is inconsistent with the provisions of the Appendices or the Agreement, the provisions of this Amendment shall prevail and govern and the contradicted or inconsistent provisions of the Appendices or the Agreement shall be deemed amended accordingly. SAP and Licensee agree that the Appendices to the Agreement are modified by this Amendment as follows: 1.) The attached Maintenance fee Schedule for 2016 – 2018 SAP Maintenance & Enterprise Support services is added to the agreement. The maintenance fees provided in the Appendices are modified and/or extended as provided in the attached Maintenance Fee Schedule. EXCEPT AS HEREIN PROVIDED, NONE OF THE PROVISIONS OF THE APPENDICES OR THE AGREEMENT SHALL BE AFFECTED BY THIS APPENDIX. ACCEPTED BY: ACCEPTED BY: SAP Public Services, Inc. CITY OF PALO ALTO By: __________________________ By: ____________________________ Name: Mark Buckley Name: James Keene Title: Contracts Title: City Manager Date: October 6, 2015 Date: October 6, 2015 APPROVED AS TO FORM: __________________________ City Attorney or Designee DocuSign Envelope ID: 192DD5BF-04EA-4F5A-ABEF-E13CF9FB3D6C Maintenance & Support 2016 - 2018 C14151181 Amendment City of Palo Alto cn 486884 Jul-22-2015 Please clearly relay the following requirements to the individual(s) creating the Award or PO: Award or PO must reference: (1) SAP order number (2) P.O.P. dates Vendor Address SAP Public Service, Inc. 1300 Pennsylvania Ave, Suite 600. Ronald Reagan Bldg / Intl Trade Ctr Washington, DC 20004-3012 Description SAP Maintenance & Enterprise Support Base Year $ 247,603.42 SAP Order # Software Licenses Description P.O.P. Start P.O.P. End Maintenance Base Maintenance Fee 10209000 App2 - BSI Jan-01-2016 Dec-31-2016 12,000.00 5,040.00 10407258 App7 Jan-01-2016 Dec-31-2016 330,422.00 72,692.84 10407262 App1, Amd2 Jan-01-2016 Dec-31-2016 438,658.00 96,504.76 11034558 App10 Jan-01-2016 Dec-31-2016 333,481.00 73,365.82 Option Year 1 total $ 247,603.42 10209000 App2 - BSI Jan-01-2017 Dec-31-2017 12,000.00 5,040.00 10407258 App7 Jan-01-2017 Dec-31-2017 330,422.00 72,692.84 10407262 App1, Amd2 Jan-01-2017 Dec-31-2017 438,658.00 96,504.76 11034558 App10 Jan-01-2017 Dec-31-2017 333,481.00 73,365.82 Option Year 2 total $ 247,603.42 10209000 App2 - BSI Jan-01-2018 Dec-31-2018 12,000.00 5,040.00 10407258 App7 Jan-01-2018 Dec-31-2018 330,422.00 72,692.84 10407262 App1, Amd2 Jan-01-2018 Dec-31-2018 438,658.00 96,504.76 11034558 App10 Jan-01-2018 Dec-31-2018 333,481.00 73,365.82 SAP Public Service, Inc. is a large business. DocuSign Envelope ID: 192DD5BF-04EA-4F5A-ABEF-E13CF9FB3D6C City of Palo Alto (ID # 6184) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/2/2015 City of Palo Alto Page 1 Summary Title: Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward into Fiscal Year 2016 Title: Finance Committee Recommends Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward Into Fiscal Year 2016 From: City Manager Lead Department: Administrative Services Recommendation The Finance Committee and staff recommend that the City Council approve the Fiscal Year 2015 reappropriations to be carried forward into Fiscal Year 2016. The Finance Committee further recommended that the reappropriation request for the establishment of a Planning & Community Environment Contingent Account be approved as a Transportation Contingency Account whereby each request for funding from this Contingent Account be approved by the City Council. Executive Summary On September 22, 2015, the Finance Committee reviewed and recommended for approval to the City Council Fiscal Year 2015 capital and operating budget reappropriations to be carried forward into Fiscal Year 2016, with an amendment that the request for the establishment of a $500,000 Planning & Community Environment Contingent Account be approved as a Transportation Contingent Account whereby each request for funding from this Contingent Account be approved by the City Council. Background As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent appropriations of the fiscal year just ended, along with the City’s spending plans. Encumbered amounts are those subject to the legal claims of other parties due to contractual obligations (for example, commitments made through purchase orders), which are carried forward from one fiscal year to the next. However, each year there are a small number of important projects which staff was not able to complete or encumber funds for. The reappropriation process allows staff to bring forward funding recommendations to the Finance Committee and City Council to continue these projects. City of Palo Alto Page 2 On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28, Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations process (preliminary and final reappropriation authorization) to one step as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in the current Fiscal Year to be carried forward to the subsequent Fiscal Year. Additionally, the City Council amended the Municipal Code to eliminate the provision allowing for the automatic reappropriation of capital project funds. Previously, the Municipal Code stated that appropriations of capital project funds should continue until the project was completed or no funds had been expended for two years. Effective Fiscal Year 2016, the Finance Committee reviewed and the Council approved a capital budget which includes all active projects. Since capital projects may be delayed for various reasons, unexpended funds are carried forward in two ways from the outgoing to the new fiscal year. As part of the approval of the Fiscal Year 2016 budget, based on estimates, the majority of unexpended and unencumbered funds were carried forward from Fiscal Year 2015 to Fiscal Year 2016. Now that the Fiscal Year 2015 has closed and staff has processed necessary accounting transactions any unexpended and unencumbered funds for each capital project are reviewed one more time. Based on that review, staff recommends that for some projects in various funds remaining Fiscal Year 2015 capital dollars are reappropriated to Fiscal Year 2016. Also, as part of this review, staff realized that for some projects too much funding was recommended for reappropriation as expenditures occurred in Fiscal Year 2015. Therefore, this staff report also recommends reversing a portion of previously authorized reappropriations. Discussion As noted above, the changes to the Municipal Code from last year allow for the reappropriation of unencumbered and unexpended funds in advance of the normal year-end closing ordinance as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. With the submission of the staff report for consideration at the September 22nd Finance Committee meeting as approved unanimously by the Finance Committee, the Administrative Services Director has certified that sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. For the attached Budget Amendment Ordinance (Attachment A), Exhibit 1 identifies those operating budget reappropriation requests that staff recommends for approval while Exhibit 2 lists recommended capital project reappropriations. At the September 22nd Finance Committee meeting, the Finance Committee recommended that the City Council approve the Fiscal Year 2015 reappropriations as identified in the Finance Committee staff report (see Attachment B for the staff report and Attachment C for the meeting minutes) with an amendment that the requested reappropriation for a Planning & Community Environment Contingent Account be specified as a contingent account limited for Transportation project funding and any use of the funds requiring City Council approval. The City of Palo Alto Page 3 projects for which operating budget reappropriations are recommended can generally be grouped into the following categories:  Timing and Workload Delays: Certain projects were delayed due to competing workload demands, appropriation of funds late in the fiscal year, or other unanticipated delays. Examples of projects in this category include Document Scanning and Management Services ($66,000), Temporary Staffing for the Purchasing division ($51,000), Business Registry Program ($99,050), Police Utilization Study ($70,000), Airport On-Call Consultant ($40,987), Storm Water Rebates ($55,710) and Santa Clara Valley Water District MOU ($400,000).  Technology Services: Funding was approved in Fiscal Year 2015 for a number of technology system evaluation and upgrade projects but contracts were not awarded by the end of the fiscal year. Projects in this category include Geographic Information Systems (GIS) Evaluation of the City’s GIS solutions ($82,500), Palo Alto 3-1-1 implementation ($40,000), Mobile Device Management Solution ($75,000), and Police Interview Recording System ($40,000).  Residential Housing In-Lieu Fund: Due to the timing of Council’s action approving loans and staffing constraints, transactions with Palo Alto Housing Corporation (PAHC) were not completed in Fiscal Year 2015 for some projects. Continuation of the housing transactions will require reappropriation of Residential Housing In-Lieu Funds for the following properties: loan for PAHC purchase of 2811-2825 Alma Street ($600,000), loan for PAHC renovation of Stevenson House at 435 E. Charleston Road ($1,000,000), and loan for PAHC rehabilitation and deed restriction of Pine Street property at 110-130 El Dorado ($375,000). Staff expects to be able to execute and conclude the agreements with PAHC for these projects in Fiscal Year 2016.  Library Donation and Grant: This action reappropriates $339,845 in revenue and offsetting expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations; and a $15,000 grant for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products. City of Palo Alto Page 4  Teen Services Programs: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds.  Management and Professional Development funds: A number of City employees, as part of their compensation plan, are eligible for certain self-improvement activities. These funds are available to certain employees for civic and professional association memberships, conference participation and travel, educational programs, certain tuition costs, and professional and trade journal subscriptions. Unspent funds are recommended to be carried over to Fiscal Year 2016 to improve and supplement the job and professional skills of employees ($145,000).  Establish Contingency Account – Planning, Community & Environment Department: To establish a contingency account for the Planning and Community Environment Department to set aside funds related to planning, parking, and transportation related funding needs ($500,000). In accordance with the Palo Alto Municipal Code, the use of contingency funding requires the approval of the City Manager. At the September 22 Finance Committee meeting, the committee recommended that the contingency account be limited to Transportation project purposes.  Capital Reappropriations: As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital budget, all capital project reappropriations require City Council approval. The Adopted Budget included approximately $51.1 million in reappropriated funds, across all City funds based on estimates of anticipated spending in Fiscal Year 2015. Since the adoption of the capital budget, some adjustments and refinements to project reappropriations are required since Fiscal Year 2015 year end actuals and projects costs have been updated. For some projects, additional reappropriations are recommended, as project expenditures originally anticipated to occur before the end of Fiscal Year 2015 will now likely occur in Fiscal Year 2016. Additionally, some expenditures not anticipated to occur until Fiscal Year 2016 and therefore reappropriated in the budget document to Fiscal Year 2016 have been realized in Fiscal Year 2015, requiring downward adjustments for Fiscal Year 2016. The table on the following page summarizes the recommended net reappropriation City of Palo Alto Page 5 adjustments as detailed in Exhibit 2 of Attachment A. These Fiscal Year 2016 adjustments represent the final step in the City Council approved change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2015 to support all recommended reappropriation adjustments. It should be noted that as a result of this revised process and active review of all project reappropriations, a reduced level of carryforward from one year to the next is recommended than by automatically carrying forward all unspent capital funding. As part of the detailed review of capital projects which started with the development of the Fiscal Year 2016 Capital Budget and is concluding with the recommendations contained in this CMR, a total of $10.8 million is being returned to reserves across several funds that otherwise would have been reappropriated under the prior model, including $4.7 million in the Capital Improvement Fund. Fund Number of Projects Recommended Reappropriation Adjustment Capital Improvement Fund* 61 $5,099,421 Airport Fund 1 $34,359 Electric Fund 26 $703,741 Fiber Optics Fund 2 $35,319 Gas Fund 5 ($245,727) Storm Drainage Fund 4 ($40,606) Wastewater Collection Fund 6 $370,570 Wastewater Treatment Fund 3 ($2,387,156) Water Fund 13 $5,995,001 Technology Fund 11 $641,422 Vehicle Replacement and Maintenance Fund 4 $1,074,511 Total All Funds 136 $11,280,855 *Includes an increase of $32,692 for the Monroe Park Improvements project (PG-11002) due to higher than anticipated costs, as outlined in CMR 6025, approved by the City Council on 9/21/2015. Finance Committee Review and Recommendation At the September 22, 2015 Finance Committee meeting, the Finance Committee unanimously approved (4-0) staff’s recommendation (see Attachment C for the Minutes) to carry forward staff’s reappropriation requests with an amendment that the request for the establishment of a $500,000 Planning & Community Environment Contingent Account be approved as a Transportation Contingent Account whereby each request for funding from this Contingent Account be approved by the City Council. Resource Impact The majority of requested items have been previously reviewed and approved by City Council as part of annual budget processes. The Director of Administrative Services has certified that City of Palo Alto Page 6 sufficient funds exist for the recommended Fiscal Year 2015 Operating Budget reappropriations (Attachment A, Exhibit 1) and Capital Budget reappropriations (Attachment A, Exhibit 2). For Fiscal Year 2016, staff recommends $1.7 million in carryover funds in the General Fund, $0.5 million in Enterprise Funds, $0.2 in Internal Service Funds and $2.0 million in Special Revenue Funds. For capital projects staff recommends $5.1 million to be reappropriated in the Capital Improvement Fund, net $4.5 million in the various Enterprise Funds, and $1.7 million in the Internal Service Funds. Policy Implications This recommendation is consistent with adopted Council policy. Environmental Review (If Applicable) The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments:  Attachment A - BAO XXXX - FY15 to FY16 Reappropriation (PDF)  Attachment B - Reappropriations to FY 2015 Report, Finance Committee Report, Sept. 22, 2015 (PDF)  Attachment C - 22-Sept-2015 Finance Committee Mtg Minutes Item 1 (PDF) Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE REAPPROPRIATION OF FISCAL YEAR 2015 FUNDS TO FISCAL YEAR 2016 The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto and as set forth in Section 2.28.070 of the Palo Alto Municipal Code, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. Fiscal Year 2015 has ended and the financial results, although subject to audit adjustment, are now available. C. The Administrative Services Director certifies that sufficient funds are available in Fiscal Year 2015 in applicable funds to be reappropriated to Fiscal Year 2016. SECTION 2. The Council hereby re-appropriates Fiscal Year 2015 appropriations in certain departments and categories, as shown in Exhibit 1 for the operating budget and Exhibit 2 for the capital budget, which were not encumbered by purchase order or contract, into the Fiscal Year 2016 budget. SECTION 3. The Fiscal Year 2016 General Fund Budget Stabilization Reserve is hereby decreased by the sum of One Million Seven Hundred Thousand Eighty One Dollars ($1,700,081) as described in Exhibit 1. SECTION 4. The Fiscal Year 2016 Airport Reserve is hereby decreased by the sum of Forty Thousand Nine Hundred Eighty Seven Dollars ($40,987) as described in Attachment A and decreased by the sum of Thirty Four Thousand Three Hundred Fifty Nine ($34,359) as described in Exhibit 2. SECTION 5. The Fiscal Year 2016 Electric Distribution Rate Stabilization Reserve is hereby decreased by the sum of Seven Hundred Three Thousand Seven Hundred Forty One Dollars ($703,741) as described in Exhibit 2. SECTION 6. The Fiscal Year 2016 Residential Housing In-Lieu Fund is hereby decreased by the sum of One Million Nine Hundred Seventy Five Thousand Dollars ($1,975,000) as described in Exhibit 1. 1 Attachment A SECTION 7. The Fiscal Year 2016 Fiber Optics Rate Stabilization Reserve is hereby decreased by the sum of Thirty Five Thousand Three Hundred Nineteen Dollars ($35,319) as described in Exhibit 2. SECTION 8. The Fiscal Year 2016 Gas Distribution Rate Stabilization Reserve is hereby increased by the sum of Two Hundred Forty Five Thousand Seven Hundred Twenty Seven Dollars ($245,727) as described in Exhibit 2. SECTION 9. The Fiscal Year 2016 Storm Drainage Rate Stabilization Reserve is hereby decreased by the sum of Fifty Five Thousand Seven Hundred Ten Dollars ($55,710) as described in Exhibit 1 and increased by the sum of Forty Thousand Six Hundred Six Dollars ($40,606) as described in Exhibit 2 for a net decrease to the reserve of Fifteen Thousand One Hundred Four Dollars ($15,104). SECTION 10. The Fiscal Year 2016 Technology Fund is hereby decreased by the sum of One Hundred Ninety-seven Thousand Five Hundred Dollars ($197,500) as described in Exhibit 1 and decreased by the sum of Six Hundred Forty One Thousand Four Hundred Twenty Two Dollars ($641,422) as describe by Exhibit 2. SECTION 11. The Fiscal Year 2016 Wastewater Collection Rate Stabilization Reserve is hereby decreased by the sum of Three Hundred Seventy Thousand Five Hundred Seventy Dollars ($370,570) as described in Exhibit 2. SECTION 12. The Fiscal Year 2016 Wastewater Treatment Rate Stabilization Reserve is hereby increased by the sum of Two Million Three Hundred Eighty Seven Thousand One Hundred Fifty Six Dollars ($2,387,156) as described in Exhibit 2. SECTION 13. The Fiscal Year 2016 Water Rate Stabilization Reserve is hereby decreased by the sum of Four Hundred Thousand Dollars ($400,000) as described in Attachment A and decreased by the sum of Five Million Nine Hundred Ninety Nine Thousand and One Dollars ($5,995,001) as described by Exhibit 2. SECTION 14. The Fiscal Year 2016 Vehicle Replacement and Maintenance Fund Reserve is hereby decreased by the sum of One Million Seventy Four Thousand Five Hundred Eleven Dollars ($1,074,511) as described in Exhibit 2. SECTION 15. The Capital Projects Fund Reserve is hereby decreased by the sum of Five Million, Ninety Nine Thousand Four Hundred Twenty One Dollars ($5,099,421) as described in Exhibit 2. SECTION 16. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 17. The Council of the City of Palo Alto hereby finds that this is not a 2 Attachment A project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Service 3 Attachment A Exhibit 1 Fiscal Year 2015 Reappropriations 1 City Council November 2, 2015 General Fund Department Fund Amount Recommended Reappropriation Justification Administrative Services Department General Fund $66,000 Document Scanning and Retrieval Services: In 2014, the Administrative Services Department (ASD) started on a pilot to scan existing documents and store them electronically. The pilot was successfully completed with the Purchasing and Accounts Payable sections. Based on the experience from the pilot, the City issued a citywide Request for Proposal for scanning paper documents and storing them electronically ASD, Planning and Community Environment, Utilities, and Public Works-Engineering. With reappropriating $66,000 ASD will be able to continue its efforts to easily retrieve scanned documents, especially for Information requests, free up limited office space, and have an organized cloud retrieval structure. ASD’s scanning for FY 2015 and FY 2016 is scheduled to be completed in FY 2016 with 253,000 total number of scanned images with an average cost per scan of $0.26. Administrative Services Department General Fund $51,000 Temporary Staffing: The Purchasing Division of the Administrative Services Department (ASD) is undergoing rapid change due to the eProcurement initiative. With this initiative, there is a parallel, heavy workload for the Division’s contract administrators. Temporarily adding a Management Specialist hourly position will help to balance the demands of the eProcurement process implementation and the workload of regular staff. Community Services Department General Fund $331,046 Teen Programs / Bryant Street Garage Rent Revenue: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds. Community Services Department General Fund $50,000 Human Services Resource Allocation Program (HSRAP) Reserve: At the June 9, 2014 City Council meeting, the Council established a $50,000 reserve for the Human Services Resource Allocation Process as part of the Budget Adoption for Fiscal Year 2015. Since the reserve was funded as a one-time appropriation and remains unspent, this action will reappropriate the reserve balance of $50,000 into Fiscal Year 2016. Development Services Department General Fund $99,050 Business Registry: As part of Council directive, the Development Service Department in coordination with the City Manager’s Officer began working on a two phase project to implement an online Business Registry Certificate program. To implement the program, the City Council authorized initial funding of $250,000 (CMR #5146) and a Fiscal Year 2015 reappropriation request of $35,000 (CMR #5647) for phase I of the Business Registry Program which included initial start- up costs for Accela integration, staffing, and outreach. Because the work on phase I is continuing, this action will reappropriate $99,050 for staffing and continued community outreach efforts. Exhibit 1 Fiscal Year 2015 Reappropriations 2 City Council November 2, 2015 Human Resources Department General Fund $145,000 Management Development and Training: Funding will be used to continue the citywide management training program that began in Fiscal Year 2015. Training programs will focus on the following areas: Ethics, Civics and Citizen Engagement, Leadership and Management, Budget, Finance, Procurement, Interpersonal Communication, Presentation Skills, Business Writing, Time Management, Project Management, Change Management, SkillSoft (online based education), and Safety & Security. Approval of this action also requires approval of the Fiscal Year 2015 Year-End Budget Amendment Ordinance (scheduled for a November Finance Committee meeting), which recommends consolidating General Fund savings for training across various departments into the Human Resources (HR) Department in Fiscal Year 2015 in order to reappropriate the full amount into HR in Fiscal Year 2016. Library Department General Fund $339,985 Library Foundation Donation & Pacific Library Partnership Grant: This action reappropriates $339,845 in revenue and $339,845 in expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one to be used for a summer 2015 program with expenses incurred in Fiscal Year 2016, and one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations. LINK+ is a union catalog of contributed holdings from participating libraries in California and Nevada. Patrons from member libraries electronically request an item not available in their own library and the item is delivered to the requested library for check‐out. A $15,000 grant was received from PLP for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. By participating in the program, students will discover solutions for today's social issues through technology. The program includes opportunities for people of all ages to participate in a week long structured programming at the Rinconada and Mitchell Park libraries. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products. Planning and Community Environment Department General Fund $500,000 Establish Transportation Contingent Account: This action reappropriates $500,000 of the $1,000,000 million shuttle reserve from the Fiscal Year 2015 Non-Departmental budget to be used as a contingency account for unanticipated expenses as a result additional City Council direction related to transportation issues. Each request for funding from this Contingent Account must be approved by the City Council Police Department General Fund $78,000 Police Utilization Study: In Fiscal Year 2013, funding was allocated for the Police Department to hire a consultant to conduct a utilization study of overall police operations; however, the study was not completed due to competing workload demands. The funds were reappropriated to Fiscal Year 2014 and Fiscal Year 2015; however, the Department was unable to conduct the utilization study due to other projects that took precedence (Tri-City Computer Aided Dispatch, Records Management System, Patrol Vehicle Mobile Audio Video, etc.). Reappropriation of these funds will allow Police Department staff to determine the scope of the study, integrate it into their workload, and hire a consultant to conduct the study. Police Department General Fund $40,000 Police Interview Recording System: The Interview Recording System that provides cameras, audio equipment and storage for interviewing suspects, witness and victims unexpectedly failed in Fiscal Year 2015 and needs to be replaced. The existing system has failed repeatedly and the Department attempted to replace it as quickly as possible in May and June 2015. The Department completed a Request for Proposal and no responses were received. Therefore, with thsi funding, the Department will issue a new RFP and increase its vendor outreach efforts with the hope of receiving viable proposals for the replacement of the system. $1,700,081 Total General Fund Reappropriations Exhibit 1 Fiscal Year 2015 Reappropriations 3 City Council November 2, 2015 Enterprise Funds Department Fund Amount Recommended Reappropriation Justification Public Works Department Airport Fund 530 $40,987 Airport On-Call Planning & Environmental Consultants: In October 2014 Council approved two on-call consultant contracts for airport related work: one for design and construction administration services and one for planning and environmental services. At the end of June three purchase requests submitted for the airports on-call planning and environmental consultant were inadvertently cancelled. Therefore, staff requests to reappropriate the funds so that the following projects can continue: 1. Development of an Extraordinary Circumstance Information Submittal (CATEX) for review by the Federal Aviation Administration’s (FAA) San Francisco Airport District Office (SF-ADO). The CATEX is being prepared for approval under the National Environmental Policy Act (NEPA) relative to a potential future apron rehabilitation project at Palo Alto Airport with possible future reimbursement under the FAA grant. 2. Development of DBE goals for the airport as required by the FAA for inclusion in grant application submittals. 3. Planning, implementing and facilitation of a charrette with key community stakeholders to discuss a vision and goals for the Airport; share potential strategies to integrate sustainability into the Airport’s management, planning, operation, maintenance, and development; and generate/prioritize potential sustainability initiative ideas to be considered by the City. Public Works Department Storm Drainage Fund 528 $55,710 Storm Water Rebates: In April 2005, the majority of Palo Alto property owners voted to increase the Storm Drainage Fee (CMR 244:05). In addition to the seven proposed CIP projects to be completed by 2017, the fee increase provided an annual innovative projects budget. These funds have been utilized since Fall 2008 to fund a Stormwater Rebate Program that offers financial incentives to residents and businesses for the installation of measures that reduce stormwater runoff, including rain barrels, cisterns, permeable pavement, and green roofs. Staff proposes that these funds be reappropriated because they have been specifically earmarked for funding of innovative storm drain projects per the terms of the 2005 Storm Drainage Fee ballot measure approved by Palo Alto property owners. As the rebate program has not generated sufficient demand to spend the budgeted funds, we are researching alternatives that may garner the desired environmental result. Utilities Water Fund 522 $400,000 Santa Clara Valley Water District MOU: On February 10, 2015, Council approved a Budget Amendment Ordinance to appropriate $400,000 from the Water Fund Reserve to increase the 2014-2016 Memorandum of Understanding with the Santa Clara Valley Water District for the Administration and Funding of Water Conservation Programs (the “2014-2016 MOU”) to increase the City of Palo Alto’s (City) three-year $735,915 total cost obligation by $500,000 to $1,235,915. Inadvertently, the approved funds were not encumbered before the end of the year. Therefore, it is recommended to carry forward the funding to fiscal year 2016 in order to fund the contract. $496,697 Total Enterprise Funds Reappropriations Exhibit 1 Fiscal Year 2015 Reappropriations 4 City Council November 2, 2015 Internal Services Funds Department Fund Amount Recommended Reappropriation Justification Information Technology Department Technology Fund 682 $82,500 Geographic Information System Evaluation: The Geographic Information System (GIS) Evaluation Project was approved as part of the Fiscal Year 2015 Budget to contract with a consultant to perform an analysis of the City's current GIS environment and determine how updated GIS solutions align with the City's needs and goals. The City's current GIS solution has been in place for over 20 years and needs to be evaluated and updated to reduce IT application and infrastructure support costs, improve flexibility and offer GIS mobile services for field and remote staff. The IT Department planned to award the assessment to a vendor prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $40,000 Palo Alto 3-1-1: The Palo Alto 3-1-1 Project was approved as part of the Fiscal Year 2015 Budget to route all 3-1-1 calls to the City's telephone system. The 3-1-1 service will allow the City to be more responsive to the needs of the residents, business owners, and visitors, and these groups will only need to know two numbers to access all City of Palo Alto services: 9-1-1 for emergencies and 3-1-1 for all non-emergency and other City services. The IT Department planned to award the project prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $75,000 Mobile Device Management Security Solution: The Mobile Device Management (MDM) Security Solution Project was approved as part of the Fiscal Year 2015 Budget to secure, monitor, manage, and support mobile devices used by City staff. MDM software protects these devices from cyber security threats and allows designated staff to remotely erase data from a mobile device in the event it is lost or stolen. The Department planned to select a solution prior to the end of Fiscal Year 2015; however, a solution is still being evaluated and the deadline was not met. $154,000 was originally appropriated for this project in Fiscal Year 2015, however, after further evaluation by the IT Department, only $75,000 will be needed to award the project, and the remaining funding will be returned to the Technology Surcharge Reserve for future technology enhancement projects. $197,500 Total Internal Service Funds Reappropriations Exhibit 1 Fiscal Year 2015 Reappropriations 5 City Council November 2, 2015 Special Revenue Funds Department Fund Amount Recommended Reappropriation Justification Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $600,000 Palo Alto Housing Corporation Loan for 2811 Alma: This action reappropriates $600,000 in the Residential Housing In- Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) for a loan and promissory note for property located at 2811- 2825 Alma Street (CMR #5197). In 2011, the Palo Alto Housing Corporation (PAHC) entered into negotiations with the owners of 2811-2825 Alma Street and submitted a $1.89 million offer for the purchase of these two parcels. The offer was accepted and escrow closed in December 2011. At that time, however, the City did not have sufficient fund balances in its housing funds to provide the $1.89 million loan, and was only able to provide $1.29 million. To make up the difference, the Opportunity Fund of Santa Clara County provided a two year, $600,000 short term loan for the project acquisition with the understanding that the City would repay the short term loan, which was set to expire in December 2014. With Council’s approval of this action, the City new $600,000 loan defeased the Opportunity Fund loan and the City is the sole lender on the project. However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $1,000,000 Stevenson House Rehab Loan: Stevenson House, located at 435 E. Charleston Road, has been serving extremely low, very low, and low income Palo Alto seniors for 47 years. Built in 1968, Stevenson House consists of 120 studio and one bedroom units. In addition to providing affordable housing, it offers services, meals and social programs for its residents. This action reappropriates $1,000,000 in the Residential Housing In-Lieu Fund to effectuate the $1,000,000 City loan for the renovation of Stevenson House (CMR# 5526) and the consolidation of outstanding Community Development Block Grant (CDBG) loans consistent with the funding commitment previously approved by the City Council on November 5, 2012 (CMR #3176). However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $375,000 Loan Associated with Pine Street Sale: This action reappropriates $375,000 in the Residential Housing In-Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) to rehabilitate and deed restrict three units located at 110 - 130 El Dorado (CMR #5712). Due to the timing of Council’s action approving this activity and staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. $1,975,000 Total Special Revenue Funds Reappropriations $4,369,278 Total - All Reappropriations Exhibit 2 Capital Reappropriations 1 City Council November 2, 2015 Project ID Project Title Fund Reappropriation Adjustment AP-15003 Apron and Taxi Lane Repair Airport 34,359 PF-93009 Americans with Disabilities Capital Improvement Fund 200,853 AC-14000 Art Center Auditorium Audio, Visual, and Furnishings Capital Improvement Fund 19,802 AC-86017 Art in Public Places Capital Improvement Fund (55,550) OS-09002 Baylands Emergency A Capital Improvement Fund 602 PE-15029 Baylands Interpretive Center Improvements Capital Improvement Fund (26,859) PE-14018 Baylands Interpretive Center Improvements Capital Improvement Fund 2,205 PL-04010 Project Capital Improvement Fund (21,886) PE-13008 Bowden Park Capital Improvement Fund 1,053 PF-01003 Building Systems Improvements Capital Improvement Fund (129,236) PE-13020 Byxbee Park Trails Capital Improvement Fund 268,652 PL-11002 California Avenue Streetscape Improvements Capital Improvement Fund 183,613 PE-13011 Charleston Arastrade Capital Improvement Fund (33,391) PE-09003 City Facility Parking Capital Improvement Fund 286,310 PE-12017 City Hall 1st Floor Capital Improvement Fund 253,086 PE-13005 City Hall/King Plaza Capital Improvement Fund 7,020 PF-01002 Civic Center Infrastructure Capital Improvement Fund (434) PE-15020 Civic Center Waterproofing Study and Repairs Capital Improvement Fund (78,492) PF-14000 Cubberley Roof Replacements Capital Improvement Fund 1,442 PO-12001 Curb & Gutter Repair Capital Improvement Fund 186 PE-13017 EC Median Landscape Capital Improvement Fund (17,573) PE-13016 El Camino Park Expand Capital Improvement Fund 10,123 PL-14000 Design Capital Improvement Fund 8,652 PL-15001 Embarcadero Corridor Capital Improvement Fund 200,710 PF-15005 Emergency Facility Improvements Capital Improvement Fund (13,532) PF-02022 Facility Interior Finishes Replacement Capital Improvement Fund (27,828) PF-14002 Fire Station 1 Improvements Capital Improvement Fund 863 LB-11000 Furniture and Technology for Library Projects Capital Improvement Fund (5,711) PG-13003 Golf Reconfig & Bayland Athletics Center Capital Improvement Fund 34,954 PE-13010 Greer Park Renovatio Capital Improvement Fund 33,075 PE-11011 Highway 101 Pedestrian Capital Improvement Fund 943,638 PE-09010 Library & Community Center Capital Improvement Fund 2,277 PE-14015 Lucie Stern Building Capital Improvement Fund 7,130 PE-12013 Magical Bridge Playg Capital Improvement Fund 100,888 PE-11000 Main Library New Construction Capital Improvement Fund (14,079) PL-14001 Matadero Creek Trail Capital Improvement Fund 14,204 PE-09006 Mitchell Park Library Capital Improvement Fund 2,483,343 PG-11002 Monroe Park Improvements Capital Improvement Fund 270,996 OS-09001 Off-Road Pathway Resurfacing and Repair Capital Improvement Fund 1,033 OS-00001 Open Space Trails & Amenities Capital Improvement Fund (14,991) PE-15022 Palo Alto Community Gardens Irrigation System Capital Improvement Fund (47,296) PG-09003 Park Maintenance Sho Capital Improvement Fund 84,419 PE-13003 Parks Master Plan Capital Improvement Fund 6,725 PE-08001 Rinconada Park Improvements Capital Improvement Fund 1,271 PE-12003 Rinconada Park Master Capital Improvement Fund 4,833 PF-15000 Rinconada Pool Locker Capital Improvement Fund (23,068) PF-00006 Roofing Replacement Capital Improvement Fund (198,002) PF-07011 Roth Building Maintenance Capital Improvement Fund 3,201 PL-00026 Safe Routes to School Capital Improvement Fund (49,092) PG-12004 Sarah Wallis Park Improvements Capital Improvement Fund 65,000 PO-89003 Sidewalk Repairs Capital Improvement Fund (132,345) PO-11000 Sign Reflectivity Upgrade Capital Improvement Fund (40,542) PG-13001 Stanford / PA Soccer Turf Replacement Capital Improvement Fund 722,740 PG-12001 Stanford/Palo Alto P Capital Improvement Fund 47,198 Exhibit 2 Capital Reappropriations 2 City Council November 2, 2015 PO-05054 Street Lights Improvements Capital Improvement Fund 21,841 PE-86070 Street Maintenance Capital Improvement Fund (471,182) PE-13014 Streetlights Conditi Capital Improvement Fund 78 PE-13012 Structural Assessment Capital Improvement Fund 1,143 PE-11012 Temporary Main Library Capital Improvement Fund 83,438 PO-11001 Thermoplastic Lane Marking and Striping Capital Improvement Fund (12,000) PL-05030 Traffic Signal and ITS Upgrades Capital Improvement Fund (30,043) PL-12000 Transportation and Parking Improvements Capital Improvement Fund 163,956 EL-02010 SCADA System Upgrades Electric (17,015) EL-02011 Electric Utility GIS Electric 75,000 EL-04012 Utility Site Securit Electric 33,719 EL-05000 El Camino Undergroun Electric (200,000) EL-06001 230 kV Electric Inte Electric (3,441) EL-06002 UG District 45 Electric 59,271 EL-09000 Middlefield Undergro Electric (282,906) EL-10006 Rebuild UG Dist 24 Electric 53,968 EL-10009 Street Light System Electric (23,259) EL-11003 Rebuild UG Dist 15 Electric (1,133) EL-11006 Rebuild UG Dist 18 Electric 164,587 EL-11008 Rebuild UG Dist 19 Electric 3,926 EL-11010 UG District 47 - Mid Electric (601,553) EL-11014 Smart Grid Technolog Electric 1,395 EL-12000 Rebuild UG Dist 12 Electric 9,028 EL-12001 UG District 46 - Cha Electric (976) EL-13006 Sand Hill / Quarry 1 Electric (25,028) EL-13008 Upgrade Estimating S Electric (20,000) EL-14004 Maybell 1&2 4/12kV C Electric (121,029) EL-14005 Reconfigure Quarry F Electric (61,119) EL-15001 Substation Battery R Electric 69,251 EL-89028 Electric Customer Co Electric 402,508 EL-89031 Communications Syste Electric (60,307) EL-89038 Substation Protectio Electric 18,713 EL-89044 Substation Facility Electric (55,640) EL-98003 Electric System Imp Electric 1,285,781 FO-10000 Fiber Optic Customer Fiber Optic (48,703) FO-10001 Fiber Optic Network Fiber Optic 84,022 GS-03009 Sys Extensions Operations - Unreimbursed Gas 726 GS-11002 Gas System Improvement Gas (67,511) GS-12001 Gas Main Replacement - Project 22 Gas (199,920) GS-13002 Gas Equipment and Tools Gas 17,869 GS-80019 Gas Meters and Regulators Gas 3,109 SD-06102 San Francisquito Creek Storm Water Pump Station Storm (631) SD-06101 Storm Drain System Replacement and Rehabilitation Storm 58,190 SD-13003 Improvements Storm (110,762) SD-11101 Channing/Lincoln Storm Drain Improvements Storm 12,597 TE-00010 Telephone System Repair Technology (38) TE-01012 IT Disaster Recovery Technology 43,479 TE-05000 Radio Infrastructure Technology 1,000,000 TE-06001 Library RFID Implementation Technology 4,369 TE-09000 Public Safety Computer-Aided Dispatch Replacement Technology (292,044) TE-10001 Utilities Customer Bill System Improvements Technology 502 TE-11001 Library Computer System Software Technology (64,019) TE-12001 Development Center Blueprint Technology Enhancement Technology (117,312) TE-13004 Infrastructure Management Syste Technology 80,431 TE-14002 Library Virtual Branch Technology (20,000) TE-95016 Permit Information Tracking System Technology 6,054 VR-14000 Schedule Vehicle and Equipment Replacement - Fiscal Year 2014 Vehicle (30,395) VR-13000 2013 Vehicle 22,770 Exhibit 2 Capital Reappropriations 3 City Council November 2, 2015 VR-15001 Emergency Repair and Replacement Vehicle 47,347 VR-15000 2015 Vehicle 1,034,789 WC-10002 Project 23 Wastewater Collection 758,010 WC-11000 Project 24 Wastewater Collection (90,474) WC-12001 Project 25 Wastewater Collection (80,641) WC-13001 Project 26 Wastewater Collection (66,657) WC-14001 Project 27 Wastewater Collection (51,716) WC-80020 Sewer System, Customer Connections Wastewater Collection (97,952) WQ-10001 Plant Master Plan Wastewater Treatment (66,000) WQ-14001 Dewatering and Loadout Facility Wastewater Treatment (2,301,219) WQ-04011 Facility Condition Assessment Wastewater Treatment (19,937) WS-02014 Water, Gas, Wastewater Utility GIS Data Water (9,500) WS-07000 Water Regulation System Improvements Water 785,585 WS-08001 Water Reservior Coating Improvements Water 2,160,306 WS-08002 Emergency Water Supply Project Water (6,919) WS-09000 Seismic Water System Upgrades Water 3,501,875 WS-11000 Water Main Replacement - Project 25 Water (282,944) WS-11003 Water Distribution System Improvements Water (49,710) WS-11004 Water System Supply Improvements Water (110,352) WS-12001 Water Main Replacement - Project 26 Water 27,995 WS-13004 Asset Management Mobile Deployment Water (1,652) WS-15004 Water System Master Plan Water (1,001) WS-80014 Water Service Hydrant Replacement Water 1,789 WS-80015 Water Meters Water (20,471) Total- All Funds 11,280,855 City of Palo Alto (ID # 5940) Finance Committee Staff Report Report Type: Action Items Meeting Date: 9/22/2015 City of Palo Alto Page 1 Summary Title: Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward into Fiscal Year 2016 Title: Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward Into Fiscal Year 2016 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee approve the Fiscal Year 2015 reappropriations to be carried forward into Fiscal Year 2016 and direct staff to forward the Finance Committee’s recommendation to the City Council. Background As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent appropriations of the fiscal year just ended, along with the City’s spending plans. Encumbered amounts are those subject to the legal claims of other parties due to contractual obligations (for example, commitments made through purchase orders), which are carried forward from one fiscal year to the next. However, each year there are a small number of important projects which staff was not able to complete or encumber funds for. The reappropriation process allows staff to bring forward funding recommendations to the Finance Committee and City Council to continue these projects. On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28, Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations process (preliminary and final reappropriation authorization) to one step as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in the current Fiscal Year to be carried forward to the subsequent Fiscal Year. Additionally, the City Council amended the Municipal Code to eliminate the provision allowing for the automatic reappropriation of capital project funds. Previously, the Municipal Code stated that appropriations of capital project funds should continue until the project was completed or no funds had been expended for two years. Effective Fiscal Year 2016, the Attachment B City of Palo Alto Page 2 Finance Committee reviewed and the Council approved a capital budget which includes all active projects. Since capital projects may be delayed for various reasons, unexpended funds are carried forward in two ways from the outgoing to the new fiscal year. As part of the approval of the Fiscal Year 2016 budget, based on estimates, the majority of unexpended and unencumbered funds were carried forward from Fiscal Year 2015 to Fiscal Year 2016. Now that the Fiscal Year 2015 has closed and staff has processed necessary accounting transactions any unexpended and unencumbered funds for each capital project are reviewed one more time. Based on that review, staff recommends that for some projects in various funds remaining Fiscal Year 2015 capital dollars are reappropriated to Fiscal Year 2016. Also, as part of this review, staff realized that for some projects too much funding was recommended for reappropriation as expenditures occurred in Fiscal Year 2015. Therefore, this staff report also recommends reversing a portion of previously authorized reappropriations. Discussion As noted above, the changes to the Municipal Code from last year allow for the reappropriation of unencumbered and unexpended funds in advance of the normal year-end closing ordinance as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. Attachment A identifies those operating budget reappropriation requests that staff recommends for approval, while Attachment B lists recommended capital project reappropriations. With the submission of this report for Finance Committee consideration, the Administrative Services Director certifies sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. The projects for which operating budget reappropriations are recommended can generally be grouped into the following categories: Timing and Workload Delays: Certain projects were delayed due to competing workload demands, appropriation of funds late in the fiscal year, or other unanticipated delays. Examples of projects in this category include Document Scanning and Management Services ($66,000), Temporary Staffing for the Purchasing division ($51,000), Business Registry Program ($99,050), Police Utilization Study ($70,000), Airport On-Call Consultant ($40,987), Storm Water Rebates ($55,710) and Santa Clara Valley Water District MOU ($400,000). Technology Services: Funding was approved in Fiscal Year 2015 for a number of technology system evaluation and upgrade projects but contracts were not awarded by the end of the fiscal year. Projects in this category include Geographic Information Systems (GIS) Evaluation of the City’s GIS solutions ($82,500), Palo Alto 3-1-1 implementation ($40,000), Mobile Device Management Solution ($75,000), and Police Interview Recording System ($40,000). Attachment B City of Palo Alto Page 3 Residential Housing In-Lieu Fund: Due to the timing of Council’s action approving loans and staffing constraints, transactions with Palo Alto Housing Corporation (PAHC) were not completed in Fiscal Year 2015 for some projects. Continuation of the housing transactions will require reappropriation of Residential Housing In-Lieu Funds for the following properties: loan for PAHC purchase of 2811-2825 Alma Street ($600,000), loan for PAHC renovation of Stevenson House at 435 E. Charleston Road ($1,000,000), and loan for PAHC rehabilitation and deed restriction of Pine Street property at 110-130 El Dorado ($375,000). Staff expects to be able to execute and conclude the agreements with PAHC for these projects in Fiscal Year 2016. Library Donation and Grant: This action reappropriates $339,845 in revenue and offsetting expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations; and a $15,000 grant for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products. Teen Services Programs: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds. Management and Professional Development funds: A number of City employees, as part of their compensation plan, are eligible for certain self-improvement activities. These funds are available to certain employees for civic and professional association memberships, conference participation and travel, educational programs, certain tuition Attachment B City of Palo Alto Page 4 costs, and professional and trade journal subscriptions. Unspent funds are recommended to be carried over to Fiscal Year 2016 to improve and supplement the job and professional skills of employees ($145,000). Establish Contingency Account – Planning, Community & Environment Department: To establish a contingency account for the Planning and Community Environment Department to set aside funds related to planning, parking, and transportation related funding needs ($500,000). In accordance with the Palo Alto Municipal Code, the use of contingency funding requires the approval of the City Manager. Capital Reappropriations: As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital budget, all capital project reappropriations require City Council approval. The Adopted Budget included approximately $51.1 million in reappropriated funds, across all City funds based on estimates of anticipated spending in Fiscal Year 2015. Since the adoption of the capital budget, some adjustments and refinements to project reappropriations are required since Fiscal Year 2015 year end actuals and projects costs have been updated. For some projects, additional reappropriations are recommended, as project expenditures originally anticipated to occur before the end of Fiscal Year 2015 will now likely occur in Fiscal Year 2016. Additionally, some expenditures not anticipated to occur until Fiscal Year 2016 and therefore reappropriated in the budget document to Fiscal Year 2016 have been realized in Fiscal Year 2015, requiring downward adjustments for Fiscal Year 2016. The table on the following page summarizes the recommended net reappropriation adjustments as detailed in Attachment B. These Fiscal Year 2016 adjustments represent the final step in the City Council approved change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2015 to support all recommended reappropriation adjustments. It should be noted that as a result of this revised process and active review of all project reappropriations, a reduced level of carryforward from one year to the next is recommended than by automatically carrying forward all unspent capital funding. As part of the detailed review of capital projects which started with the development of the Fiscal Year 2016 Capital Budget and is concluding with the recommendations contained in this CMR, a total of $10.8 million is being returned to reserves across several funds that otherwise would have been reappropriated under the prior model, including $4.7 million in the Capital Improvement Fund. Attachment B City of Palo Alto Page 5 Fund Number of Projects Recommended Reappropriation Adjustment Capital Improvement Fund* 61 $5,099,421 Airport Fund 1 $34,359 Electric Fund 26 $703,741 Fiber Optics Fund 2 $35,319 Gas Fund 5 ($245,727) Storm Drainage Fund 4 ($40,606) Wastewater Collection Fund 6 $370,570 Wastewater Treatment Fund 3 ($2,387,156) Water Fund 13 $5,995,001 Technology Fund 11 $641,422 Vehicle Replacement and Maintenance Fund 4 $1,074,511 Total All Funds 136 $11,280,855 *Includes an increase of $32,692 for the Monroe Park Improvements project (PG-11002) due to higher than anticipated costs, as outlined in CMR 6025, to be considered by the City Council on 9/21/2015. Resource Impact The majority of requested items have been previously reviewed and approved by City Council as part of annual budget processes. The Director of Administrative Services has certified that sufficient funds exist for the recommended Fiscal Year 2015 Operating Budget reappropriations (Attachment A) and Capital Budget reappropriations (Attachment B). For Fiscal Year 2016, staff recommends $1.7 million in carryover funds in the General Fund, $0.5 million in Enterprise Funds, $0.2 in Internal Service Funds and $2.0 million in Special Revenue Funds. For capital projects staff recommends $5.1 million to be reappropriated in the Capital Improvement Fund, net $4.5 million in the various Enterprise Funds, and $1.7 million in the Internal Service Funds. Policy Implications This recommendation is consistent with adopted Council policy. Environmental Review (If Applicable) The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments: Attachment A - Operating Reapprop FY15 to FY16 (PDF) Attachment B- Capital Reappropriations (XLSX) Attachment C - BAO XXXX - FY15 to FY16 Reappropriation (PDF) Attachment B Attachment A Fiscal Year 2015 Reappropriations 1 Finance Committee September 22, 2016 General Fund Department Fund Amount Recommended Reappropriation Justification Administrative Services Department General Fund $66,000 Document Scanning and Retrieval Services: In 2014, the Administrative Services Department (ASD) started on a pilot to scan existing documents and store them electronically. The pilot was successfully completed with the Purchasing and Accounts Payable sections. Based on the experience from the pilot, the City issued a citywide Request for Proposal for scanning paper documents and storing them electronically ASD, Planning and Community Environment, Utilities, and Public Works-Engineering. With reappropriating $66,000 ASD will be able to continue its efforts to easily retrieve scanned documents, especially for Information requests, free up limited office space, and have an organized cloud retrieval structure. ASD’s scanning for FY 2015 and FY 2016 is scheduled to be completed in FY 2016 with 253,000 total number of scanned images with an average cost per scan of $0.26. Administrative Services Department General Fund $51,000 Temporary Staffing: The Purchasing Division of the Administrative Services Department (ASD) is undergoing rapid change due to the eProcurement initiative. With this initiative, there is a parallel, heavy workload for the Division’s contract administrators. Temporarily adding a Management Specialist hourly position will help to balance the demands of the eProcurement process implementation and the workload of regular staff. Community Services Department General Fund $331,046 Teen Programs / Bryant Street Garage Rent Revenue: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds. Community Services Department General Fund $50,000 Human Services Resource Allocation Program (HSRAP) Reserve: At the June 9, 2014 City Council meeting, the Council established a $50,000 reserve for the Human Services Resource Allocation Process as part of the Budget Adoption for Fiscal Year 2015. Since the reserve was funded as a one-time appropriation and remains unspent, this action will reappropriate the reserve balance of $50,000 into Fiscal Year 2016. Development Services Department General Fund $99,050 Business Registry: As part of Council directive, the Development Service Department in coordination with the City Manager’s Officer began working on a two phase project to implement an online Business Registry Certificate program. To implement the program, the City Council authorized initial funding of $250,000 (CMR #5146) and a Fiscal Year 2015 reappropriation request of $35,000 (CMR #5647) for phase I of the Business Registry Program which included initial start-up costs for Accela integration, staffing, and outreach. Because the work on phase I is continuing, this action will reappropriate $99,050 for staffing and continued community outreach efforts. Human Resources Department General Fund $145,000 Management Development and Training: Funding will be used to continue the citywide management training program that began in Fiscal Year 2015. Training programs will focus on the following areas: Ethics, Civics and Citizen Engagement, Leadership and Management, Budget, Finance, Procurement, Interpersonal Communication, Presentation Skills, Business Writing, Time Management, Project Management, Change Management, SkillSoft (online based education), and Safety & Security. Approval of this action also requires approval of the Fiscal Year 2015 Year-End Budget Amendment Ordinance (scheduled for a November Finance Committee meeting), which recommends consolidating General Fund savings for training across various departments into the Human Resources (HR) Department in Fiscal Year 2015 in order to reappropriate the full amount into HR in Fiscal Year 2016. Library Department General Fund $339,985 Library Foundation Donation & Pacific Library Partnership Grant: This action reappropriates $339,845 in revenue and $339,845 in expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one to be used for a summer 2015 program with expenses incurred in Fiscal Year 2016, and one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations. LINK+ is a union catalog of contributed holdings from participating libraries in California and Nevada. Patrons from member libraries electronically request an item not available in their own library and the item is delivered to the requested library for check‐out. A $15,000 grant was received from PLP for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. By participating in the program, students will discover solutions for today's social issues through technology. The program includes opportunities for people of all ages to participate in a week long structured programming at the Rinconada and Mitchell Park libraries. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products. Planning and Community Environment Department General Fund $500,000 Establish Planning & Community Environment Contingent Account: This action reappropriates $500,000 of the $1,000,000 million shuttle reserve from the Fiscal Year 2015 Non-Departmental budget to be used as a contingency account for unanticipated expenses as a result additional City Council direction related to planning, parking, or transportation. Police Department General Fund $78,000 Police Utilization Study: In Fiscal Year 2013, funding was allocated for the Police Department to hire a consultant to conduct a utilization study of overall police operations; however, the study was not completed due to competing workload demands. The funds were reappropriated to Fiscal Year 2014 and Fiscal Year 2015; however, the Department was unable to conduct the utilization study due to other projects that took precedence (Tri-City Computer Aided Dispatch, Records Management System, Patrol Vehicle Mobile Audio Video, etc.). Reappropriation of these funds will allow Police Department staff to determine the scope of the study, integrate it into their workload, and hire a consultant to conduct the study. Police Department General Fund $40,000 Police Interview Recording System: The Interview Recording System that provides cameras, audio equipment and storage for interviewing suspects, witness and victims unexpectedly failed in Fiscal Year 2015 and needs to be replaced. The existing system has failed repeatedly and the Department attempted to replace it as quickly as possible in May and June 2015. The Department completed a Request for Proposal and no responses were received. Therefore, with thsi funding, the Department will issue a new RFP and increase its vendor outreach efforts with the hope of receiving viable proposals for the replacement of the system. $1,700,081 Total General Fund Reappropriations Attachment A Fiscal Year 2015 Reappropriations 2 Finance Committee September 22, 2016 Enterprise Funds Department Fund Amount Recommended Reappropriation Justification Public Works Department Airport Fund 530 $40,987 Airport On-Call Planning & Environmental Consultants: In October 2014 Council approved two on-call consultant contracts for airport related work: one for design and construction administration services and one for planning and environmental services. At the end of June three purchase requests submitted for the airports on-call planning and environmental consultant were inadvertently cancelled. Therefore, staff requests to reappropriate the funds so that the following projects can continue: 1. Development of an Extraordinary Circumstance Information Submittal (CATEX) for review by the Federal Aviation Administration’s (FAA) San Francisco Airport District Office (SF-ADO). The CATEX is being prepared for approval under the National Environmental Policy Act (NEPA) relative to a potential future apron rehabilitation project at Palo Alto Airport with possible future reimbursement under the FAA grant.2. Development of DBE goals for the airport as required by the FAA for inclusion in grant application submittals. 3. Planning, implementing and facilitation of a charrette with key community stakeholders to discuss a vision and goals for the Airport; share potential strategies to integrate sustainability into the Airport’s management, planning, operation, maintenance, and development; and generate/prioritize potential sustainability initiative ideas to be considered by the City. Public Works Department Storm Drainage Fund 528 $55,710 Storm Water Rebates: In April 2005, the majority of Palo Alto property owners voted to increase the Storm Drainage Fee (CMR 244:05). In addition to the seven proposed CIP projects to be completed by 2017, the fee increase provided an annual innovative projects budget. These funds have been utilized since Fall 2008 to fund a Stormwater Rebate Program that offers financial incentives to residents and businesses for the installation of measures that reduce stormwater runoff, including rain barrels, cisterns, permeable pavement, and green roofs. Staff proposes that these funds be reappropriated because they have been specifically earmarked for funding of innovative storm drain projects per the terms of the 2005 Storm Drainage Fee ballot measure approved by Palo Alto property owners. As the rebate program has not generated sufficient demand to spend the budgeted funds, we are researching alternatives that may garner the desired environmental result. Utilities Water Fund 522 $400,000 Santa Clara Valley Water District MOU: On February 10, 2015, Council approved a Budget Amendment Ordinance to appropriate $400,000 from the Water Fund Reserve to increase the 2014-2016 Memorandum of Understanding with the Santa Clara Valley Water District for the Administration and Funding of Water Conservation Programs (the “2014-2016 MOU”) to increase the City of Palo Alto’s (City) three-year $735,915 total cost obligation by $500,000 to $1,235,915. Inadvertently, the approved funds were not encumbered before the end of the year. Therefore, it is recommended to carry forward the funding to fiscal year 2016 in order to fund the contract. $496,697 Total Enterprise Funds Reappropriations Attachment A Fiscal Year 2015 Reappropriations 3 Finance Committee September 22, 2016 Internal Services Funds Department Fund Amount Recommended Reappropriation Justification Information Technology Department Technology Fund 682 $82,500 Geographic Information System Evaluation: The Geographic Information System (GIS) Evaluation Project was approved as part of the Fiscal Year 2015 Budget to contract with a consultant to perform an analysis of the City's current GIS environment and determine how updated GIS solutions align with the City's needs and goals. The City's current GIS solution has been in place for over 20 years and needs to be evaluated and updated to reduce IT application and infrastructure support costs, improve flexibility and offer GIS mobile services for field and remote staff. The IT Department planned to award the assessment to a vendor prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $40,000 Palo Alto 3-1-1: The Palo Alto 3-1-1 Project was approved as part of the Fiscal Year 2015 Budget to route all 3-1-1 calls to the City's telephone system. The 3-1-1 service will allow the City to be more responsive to the needs of the residents, business owners, and visitors, and these groups will only need to know two numbers to access all City of Palo Alto services: 9-1-1 for emergencies and 3-1-1 for all non-emergency and other City services. The IT Department planned to award the project prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $75,000 Mobile Device Management Security Solution: The Mobile Device Management (MDM) Security Solution Project was approved as part of the Fiscal Year 2015 Budget to secure, monitor, manage, and support mobile devices used by City staff. MDM software protects these devices from cyber security threats and allows designated staff to remotely erase data from a mobile device in the event it is lost or stolen. The Department planned to select a solution prior to the end of Fiscal Year 2015; however, a solution is still being evaluated and the deadline was not met. $154,000 was originally appropriated for this project in Fiscal Year 2015, however, after further evaluation by the IT Department, only $75,000 will be needed to award the project, and the remaining funding will be returned to the Technology Surcharge Reserve for future technology enhancement projects. $197,500 Total Internal Service Funds Reappropriations Attachment A Fiscal Year 2015 Reappropriations 4 Finance Committee September 22, 2016 Special Revenue Funds Department Fund Amount Recommended Reappropriation Justification Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $600,000 Palo Alto Housing Corporation Loan for 2811 Alma: This action reappropriates $600,000 in the Residential Housing In-Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) for a loan and promissory note for property located at 2811-2825 Alma Street (CMR #5197). In 2011, the Palo Alto Housing Corporation (PAHC) entered into negotiations with the owners of 2811-2825 Alma Street and submitted a $1.89 million offer for the purchase of these two parcels. The offer was accepted and escrow closed in December 2011. At that time, however, the City did not have sufficient fund balances in its housing funds to provide the $1.89 million loan, and was only able to provide $1.29 million. To make up the difference, the Opportunity Fund of Santa Clara County provided a two year, $600,000 short term loan for the project acquisition with the understanding that the City would repay the short term loan, which was set to expire in December 2014. With Council’s approval of this action, the City new $600,000 loan defeased the Opportunity Fund loan and the City is the sole lender on the project. However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $1,000,000 Stevenson House Rehab Loan: Stevenson House, located at 435 E. Charleston Road, has been serving extremely low, very low, and low income Palo Alto seniors for 47 years. Built in 1968, Stevenson House consists of 120 studio and one bedroom units. In addition to providing affordable housing, it offers services, meals and social programs for its residents. This action reappropriates $1,000,000 in the Residential Housing In-Lieu Fund to effectuate the $1,000,000 City loan for the renovation of Stevenson House (CMR# 5526) and the consolidation of outstanding Community Development Block Grant (CDBG) loans consistent with the funding commitment previously approved by the City Council on November 5, 2012 (CMR #3176). However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $375,000 Loan Associated with Pine Street Sale: This action reappropriates $375,000 in the Residential Housing In-Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) to rehabilitate and deed restrict three units located at 110 - 130 El Dorado (CMR #5712). Due to the timing of Council’s action approving this activity and staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. $1,975,000 Total Special Revenue Funds Reappropriations $4,369,278 Total - All Reappropriations Attachment B Capital Reappropriations Project ID Project Title Fund Reappropriation Adjustment AP-15003 Apron and Taxi Lane Repair Airport 34,359 PF-93009 Americans with Disabilities Capital Improvement Fund 200,853 AC-14000 Art Center Auditorium Audio, Visual, and Furnishings Capital Improvement Fund 19,802 AC-86017 Art in Public Places Capital Improvement Fund (55,550) OS-09002 Baylands Emergency A Capital Improvement Fund 602 PE-15029 Baylands Interpretive Center Improvements Capital Improvement Fund (26,859) PE-14018 Baylands Interpretive Center Improvements Capital Improvement Fund 2,205 PL-04010 Bicycle & Pedestrian Transportation Plan - Implementation Project Capital Improvement Fund (21,886) PE-13008 Bowden Park Capital Improvement Fund 1,053 PF-01003 Building Systems Improvements Capital Improvement Fund (129,236) PE-13020 Byxbee Park Trails Capital Improvement Fund 268,652 PL-11002 California Avenue Streetscape Improvements Capital Improvement Fund 183,613 PE-13011 Charleston Arastrade Capital Improvement Fund (33,391) PE-09003 City Facility Parking Capital Improvement Fund 286,310 PE-12017 City Hall 1st Floor Capital Improvement Fund 253,086 PE-13005 City Hall/King Plaza Capital Improvement Fund 7,020 PF-01002 Civic Center Infrastructure Capital Improvement Fund (434) PE-15020 Civic Center Waterproofing Study and Repairs Capital Improvement Fund (78,492) PF-14000 Cubberley Roof Replacements Capital Improvement Fund 1,442 PO-12001 Curb & Gutter Repair Capital Improvement Fund 186 PE-13017 EC Median Landscape Capital Improvement Fund (17,573) PE-13016 El Camino Park Expand Capital Improvement Fund 10,123 PL-14000 El Camino Real & Churchill Avenue Intersection Improvements - Design Capital Improvement Fund 8,652 PL-15001 Embarcadero Corridor Capital Improvement Fund 200,710 PF-15005 Emergency Facility Improvements Capital Improvement Fund (13,532) PF-02022 Facility Interior Finishes Replacement Capital Improvement Fund (27,828) PF-14002 Fire Station 1 Improvements Capital Improvement Fund 863 LB-11000 Furniture and Technology for Library Projects Capital Improvement Fund (5,711) PG-13003 Golf Reconfig & Bayland Athletics Center Capital Improvement Fund 34,954 PE-13010 Greer Park Renovatio Capital Improvement Fund 33,075 PE-11011 Highway 101 Pedestrian Capital Improvement Fund 943,638 PE-09010 Library & Community Center Capital Improvement Fund 2,277 PE-14015 Lucie Stern Building Capital Improvement Fund 7,130 PE-12013 Magical Bridge Playg Capital Improvement Fund 100,888 PE-11000 Main Library New Construction Capital Improvement Fund (14,079) PL-14001 Matadero Creek Trail Capital Improvement Fund 14,204 PE-09006 Mitchell Park Library Capital Improvement Fund 2,483,343 PG-11002 Monroe Park Improvements Capital Improvement Fund 270,996 OS-09001 Off-Road Pathway Resurfacing and Repair Capital Improvement Fund 1,033 OS-00001 Open Space Trails & Amenities Capital Improvement Fund (14,991) PE-15022 Palo Alto Community Gardens Irrigation System Capital Improvement Fund (47,296) PG-09003 Park Maintenance Sho Capital Improvement Fund 84,419 PE-13003 Parks Master Plan Capital Improvement Fund 6,725 PE-08001 Rinconada Park Improvements Capital Improvement Fund 1,271 PE-12003 Rinconada Park Master Capital Improvement Fund 4,833 PF-15000 Rinconada Pool Locker Capital Improvement Fund (23,068) PF-00006 Roofing Replacement Capital Improvement Fund (198,002) PF-07011 Roth Building Maintenance Capital Improvement Fund 3,201 PL-00026 Safe Routes to School Capital Improvement Fund (49,092) PG-12004 Sarah Wallis Park Improvements Capital Improvement Fund 65,000 PO-89003 Sidewalk Repairs Capital Improvement Fund (132,345) PO-11000 Sign Reflectivity Upgrade Capital Improvement Fund (40,542) PG-13001 Stanford / PA Soccer Turf Replacement Capital Improvement Fund 722,740 PG-12001 Stanford/Palo Alto P Capital Improvement Fund 47,198 PO-05054 Street Lights Improvements Capital Improvement Fund 21,841 PE-86070 Street Maintenance Capital Improvement Fund (471,182) PE-13014 Streetlights Conditi Capital Improvement Fund 78 PE-13012 Structural Assessment Capital Improvement Fund 1,143 PE-11012 Temporary Main Library Capital Improvement Fund 83,438 PO-11001 Thermoplastic Lane Marking and Striping Capital Improvement Fund (12,000) PL-05030 Traffic Signal and ITS Upgrades Capital Improvement Fund (30,043) PL-12000 Transportation and Parking Improvements Capital Improvement Fund 163,956 EL-02010 SCADA System Upgrades Electric (17,015) EL-02011 Electric Utility GIS Electric 75,000 EL-04012 Utility Site Securit Electric 33,719 EL-05000 El Camino Undergroun Electric (200,000) EL-06001 230 kV Electric Inte Electric (3,441) EL-06002 UG District 45 Electric 59,271 Attachment B Capital Reappropriations EL-09000 Middlefield Undergro Electric (282,906) EL-10006 Rebuild UG Dist 24 Electric 53,968 EL-10009 Street Light System Electric (23,259) EL-11003 Rebuild UG Dist 15 Electric (1,133) EL-11006 Rebuild UG Dist 18 Electric 164,587 EL-11008 Rebuild UG Dist 19 Electric 3,926 EL-11010 UG District 47 - Mid Electric (601,553) EL-11014 Smart Grid Technolog Electric 1,395 EL-12000 Rebuild UG Dist 12 Electric 9,028 EL-12001 UG District 46 - Cha Electric (976) EL-13006 Sand Hill / Quarry 1 Electric (25,028) EL-13008 Upgrade Estimating S Electric (20,000) EL-14004 Maybell 1&2 4/12kV C Electric (121,029) EL-14005 Reconfigure Quarry F Electric (61,119) EL-15001 Substation Battery R Electric 69,251 EL-89028 Electric Customer Co Electric 402,508 EL-89031 Communications Syste Electric (60,307) EL-89038 Substation Protectio Electric 18,713 EL-89044 Substation Facility Electric (55,640) EL-98003 Electric System Imp Electric 1,285,781 FO-10000 Fiber Optic Customer Fiber Optic (48,703) FO-10001 Fiber Optic Network Fiber Optic 84,022 GS-03009 Sys Extensions Operations - Unreimbursed Gas 726 GS-11002 Gas System Improvement Gas (67,511) GS-12001 Gas Main Replacement - Project 22 Gas (199,920) GS-13002 Gas Equipment and Tools Gas 17,869 GS-80019 Gas Meters and Regulators Gas 3,109 SD-06102 San Francisquito Creek Storm Water Pump Station Storm (631) SD-06101 Storm Drain System Replacement and Rehabilitation Storm 58,190 SD-13003 Matadero Creek Storm Water Pump Station and Trunk Lines Improvements Storm (110,762) SD-11101 Channing/Lincoln Storm Drain Improvements Storm 12,597 TE-00010 Telephone System Repair Technology (38) TE-01012 IT Disaster Recovery Technology 43,479 TE-05000 Radio Infrastructure Technology 1,000,000 TE-06001 Library RFID Implementation Technology 4,369 TE-09000 Public Safety Computer-Aided Dispatch Replacement Technology (292,044) TE-10001 Utilities Customer Bill System Improvements Technology 502 TE-11001 Library Computer System Software Technology (64,019) TE-12001 Development Center Blueprint Technology Enhancement Technology (117,312) TE-13004 Infrastructure Management Syste Technology 80,431 TE-14002 Library Virtual Branch Technology (20,000) TE-95016 Permit Information Tracking System Technology 6,054 VR-14000 Schedule Vehicle and Equipment Replacement - Fiscal Year 2014 Vehicle (30,395) VR-13000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2013 Vehicle 22,770 VR-15001 Emergency Repair and Replacement Vehicle 47,347 VR-15000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2015 Vehicle 1,034,789 WC-10002 Wastewater Collection System Rehabilitation/Augmentation Project 23 Wastewater Collection 758,010 WC-11000 Wastewater Collection System Rehabilitation/Augmentation Project 24 Wastewater Collection (90,474) WC-12001 Wastewater Collection System Rehabilitation/Augmentation Project 25 Wastewater Collection (80,641) WC-13001 Wastewater Collection System Rehabilitation/Augmentation Project 26 Wastewater Collection (66,657) WC-14001 Wastewater Collection System Rehabilitation/Augmentation Project 27 Wastewater Collection (51,716) WC-80020 Sewer System, Customer Connections Wastewater Collection (97,952) WQ-10001 Plant Master Plan Wastewater Treatment (66,000) WQ-14001 Dewatering and Loadout Facility Wastewater Treatment (2,301,219) WQ-04011 Facility Condition Assessment Wastewater Treatment (19,937) WS-02014 Water, Gas, Wastewater Utility GIS Data Water (9,500) WS-07000 Water Regulation System Improvements Water 785,585 WS-08001 Water Reservior Coating Improvements Water 2,160,306 WS-08002 Emergency Water Supply Project Water (6,919) WS-09000 Seismic Water System Upgrades Water 3,501,875 WS-11000 Water Main Replacement - Project 25 Water (282,944) WS-11003 Water Distribution System Improvements Water (49,710) WS-11004 Water System Supply Improvements Water (110,352) WS-12001 Water Main Replacement - Project 26 Water 27,995 WS-13004 Asset Management Mobile Deployment Water (1,652) WS-15004 Water System Master Plan Water (1,001) WS-80014 Water Service Hydrant Replacement Water 1,789 WS-80015 Water Meters Water (20,471) Total- All Funds 11,280,855 1 Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE REAPPROPRIATION OF FISCAL YEAR 2015 FUNDS TO FISCAL YEAR 2016 The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto and as set forth in Section 2.28.070 of the Palo Alto Municipal Code, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. Fiscal Year 2015 has ended and the financial results, although subject to audit adjustment, are now available. C. The Administrative Services Director certifies that sufficient funds are available in Fiscal Year 2015 in applicable funds to be reappropriated to Fiscal Year 2016. SECTION 2. The Council hereby re-appropriates Fiscal Year 2015 appropriations in certain departments and categories, as shown in Attachment A for the operating budget and Attachment B for the capital budget, which were not encumbered by purchase order or contract, into the Fiscal Year 2016 budget. SECTION 3. The Fiscal Year 2016 General Fund Budget Stabilization Reserve is hereby decreased by the sum of One Million Seven Hundred Thousand Eighty One Dollars ($1,700,081) as described in Attachment A. SECTION 4. The Fiscal Year 2016 Airport Reserve is hereby decreased by the sum of Forty Thousand Nine Hundred Eighty Seven Dollars ($40,987) as described in Attachment A and decreased by the sum of Thirty Four Thousand Three Hundred Fifty Nine ($34,359) as described in Attachment B. SECTION 5. The Fiscal Year 2016 Electric Distribution Rate Stabilization Reserve is hereby decreased by the sum of Seven Hundred Three Thousand Seven Hundred Forty One Dollars ($703,741) as described in Attachment B. SECTION 6. The Fiscal Year 2016 Residential Housing In-Lieu Fund is hereby decreased by the sum of One Million Nine Hundred Seventy Five Thousand Dollars ($1,975,000) as described in Attachment A. Attachment C 2 SECTION 7. The Fiscal Year 2016 Fiber Optics Rate Stabilization Reserve is hereby decreased by the sum of Thirty Five Thousand Three Hundred Nineteen Dollars ($35,319) as described in Attachment B. SECTION 8. The Fiscal Year 2016 Gas Distribution Rate Stabilization Reserve is hereby increased by the sum of Two Hundred Forty Five Thousand Seven Hundred Twenty Seven Dollars ($245,727) as described in Attachment B. SECTION 9. The Fiscal Year 2016 Storm Drainage Rate Stabilization Reserve is hereby decreased by the sum of Fifty Five Thousand Seven Hundred Ten Dollars ($55,710) as described in Attachment A and increased by the sum of Forty Thousand Six Hundred Six Dollars ($40,606) as described in Attachment B for a net decrease to the reserve of Fifteen Thousand One Hundred Four Dollars ($15,104). SECTION 10. The Fiscal Year 2016 Technology Fund is hereby decreased by the sum of One Hundred Ninety-seven Thousand Five Hundred Dollars ($197,500) as described in Attachment A and decreased by the sum of Six Hundred Forty One Thousand Four Hundred Twenty Two Dollars ($641,422) as describe by Attachment B. SECTION 11. The Fiscal Year 2016 Wastewater Collection Rate Stabilization Reserve is hereby decreased by the sum of Three Hundred Seventy Thousand Five Hundred Seventy Dollars ($370,570) as described in Attachment B. SECTION 12. The Fiscal Year 2016 Wastewater Treatment Rate Stabilization Reserve is hereby increased by the sum of Two Million Three Hundred Eighty Seven Thousand One Hundred Fifty Six Dollars ($2,387,156) as described in Attachment B. SECTION 13. The Fiscal Year 2016 Water Rate Stabilization Reserve is hereby decreased by the sum of Four Hundred Thousand Dollars ($400,000) as described in Attachment A and decreased by the sum of Five Million Nine Hundred Ninety Nine Thousand and One Dollars ($5,995,001) as described by Attachment B. SECTION 14. The Fiscal Year 2016 Vehicle Replacement and Maintenance Fund Reserve is hereby decreased by the sum of One Million Seventy Four Thousand Five Hundred Eleven Dollars ($1,074,511) as described in Attachment B. SECTION 15. The Capital Projects Fund Reserve is hereby decreased by the sum of Five Million, Ninety Nine Thousand Four Hundred Twenty One Dollars ($5,099,421) as described in Attachment B. SECTION 16. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 17. The Council of the City of Palo Alto hereby finds that this is not a Attachment C 3 project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Service Attachment C Special Meeting Tuesday, September 22, 2015 Chairperson Schmid called the meeting to order at 6:07 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth, Kniss (arrived at 6:09 P.M.), Scharff, Schmid (Chair) Absent: Oral Communications Chair Schmid: I do not have any cards for public comment. Agenda Items 1. Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward Into Fiscal Year 2016. Chair Schmid: I do note there has been a change in the title of Item Number 1. Let us turn to Item Number 1. Lalo, if you want to kick it off. Walter Rossmann, Office of Management and Budget Director: Good evening, Chair Schmid, Vice Mayor Schmid and Council Members. Walter Rossmann, Budget Director. The first item for tonight is the Fiscal Year 2015 reappropriation request. [audio break] Monroe Park improvements. For this project, Council approved the contract last night pending approval to reappropriate unspent funds and move those funds for Fiscal Year 2015 to 2016 plus additional funding of about $33,000. I have here in the audience department representatives here as well to speak to specific items which you may have questions on. Otherwise, this concludes my presentation. Chair Schmid: Good. I guess the goal of the Finance Committee is to look over the reappropriations and to recommend them to the Council. Mr. Rossmann: That is correct, Vice Mayor. Chair Schmid: Good. Are there colleagues who'd like to raise a question? Council Member Scharff. Attachment C Council Member Scharff: My first question relates to—where was it? First of all, the print is so small on this. If I'm slow, it's because I can barely see it. It's the Planning and Community Environmental Department. It's the establish the $500,000 of the $1 million shuttle research reserve from Fiscal Year 2015 non-departmental budget to be used as a contingency account. I guess I have a real hard time with this one. I just want to make sure I have it in my mind correctly. If I recall, we voted $1 million for a shuttle from Embarcadero, right, from the Baylands to come up. Staff decided that after we had the vote on that and approved it, which was fairly controversial, that we should cancel it and not do it. Now, you want to take the $1 million and create a $0.5 million discretionary fund without Council approval to be able to use for whatever you want. That's the way I read it. Is that right? Is that wrong? Mr. Rossmann: As you know, the contingency reserves, how they work is that the City Manager is the only approval authority for moving funds. Council Member Scharff: Yeah, but this wasn't a contingency reserve that we created. You're creating a $0.5 million contingency reserve. Mr. Rossmann: That is correct. The reason was more reaction to last year. Last year we had to bring forth, which we can do this year as well, several Budget Amendment Ordinances for parking, transportation, etc., related items. We felt to expedite the process for responding to Council requests, instead of doing a budget action coming back to you, we could establish the contingency reserve. Council Member Scharff: It would clearly expedite the process if we didn't have a Council; the City Manager just always made the decisions. Why would we do that? Mr. Rossmann: That is truly up to the discretion of the Council to establish the contingency reserve or not. Council Member Scharff: I mean it's not like Council even took this $1 million—it's not like you're doing it over for another shuttle program. You're basically taking $1 million, taking half of it and creating a new fund and doing it through this process. It seems inappropriate. Chair Schmid: Could I ask Director of Planning to make a comment. Hillary Gitelman, Planning and Community Environment Director: Thank you, Council Members. Just quickly on the comments about the shuttle program, I just want to clarify. Last year we did budget for Embarcadero shuttle route, which we pay a portion of that. The rest is paid by JPB. We Attachment C did budget for the cross-town shuttle. We budgeted for the East Palo Alto shuttle; although, we're reimbursed the cost of that. We started thinking about the west shuttle route and budgeted some funds for that. We also budgeted some funds for additional planning work associated with the shuttle, marketing, outreach and other things. The west route didn't come to fruition, but the Embarcadero route, the cross-town route, the East Palo Alto route are all operating. What we didn't do is fund this dramatic expansion of the program. We increased frequency on the cross-town route, but we didn't add a route. That's why we didn't spend a lot of the money that was in that fund. We do have significant transportation needs as a community though, and we are currently undertaking a review of the shuttle program and really coming up what we think is going to be a five-year look ahead on how the program should be modified. Looking at increased frequencies again, looking at the routes, looking at potential on-demand services or door-to-door services. Obviously, we'll be coming back to Council for any policy decisions having to do with this, but we thought in light of our experiences last year on all of the parking and transportation programs, where we had to come multiple times for BAOs and adjustments, that this was an approach that would be beneficial to keep moving on these priorities of the Council. Council Member Scharff: Fair enough, but it takes—policy decisions cost money is what you're saying, but Council should be aware and so should the public that when we make a policy decision it costs money. It shouldn't be buried in a discretionary fund of which the public and Council basically have no idea when they give a policy direction if they're spending money. Every time we give a policy direction, it should come forward with a BAO so everyone says, "Yeah, we spent that money. We're agreeing to do it. We understand the policy costs money." Ed Shikada, Assistant City Manager: Could I add perhaps a request for Director Gitelman? Could you describe the timeframe in which the results of the shuttle study that you just described would be coming back for Council discussion? Ms. Gitelman: I don't have a specific timeline, but the study is currently underway. I think it's going to be fairly short order. I also wanted to just make sure everyone's aware that if we procure services or we make expenditures that require contracts, agreements with other agencies and the like, all of those things come to Council. We would never be doing anything other than executing the Council's policy direction consistent with the rules around procurement for services and contracts. The only thing here is the budgetary allocation that happened when those agreements came forward. We wouldn't have to go through that BAO every time this happened. This is Attachment C our effort to more efficiently respond to what the Council has articulated in terms of priorities around parking and transportation issues. Council Member Scharff: I also had a question, not quite the same thing. I also had a question about the police utilization study. Here my concern was that—I have to read it—is that this was allocated in 2013. It's not a lot of money. It's really phrased in a way that just sort of made me focus on it, which says reapportion of these funds will allow Police Department Staff to determine the scope of the study integrated into the workload and hire a consultant to conduct the study. It seemed a little bit the way it was phrased that back in 2013, there was a plan and we allocated money to do it. Everyone's been too busy to do it, and now we're going to decide what needs to be done and what doesn't need to be done. It sort of struck me that since the money had been allocated, we might as well find a way to spend it. I could be convinced otherwise. It's just three years later, and it seems like we're starting from scratch about how we should do this. Is it really necessary to spend this money or is it just that the money's in the department budget, so now let's find a way to spend it? Which is the way it struck me. Lalo Perez, Chief Financial Officer and Director of Administrative Services: Lao Perez, Chief Financial Officer. The way it came about was you may recall about that timeframe there was a study for Fire Services. There were questions from the Council, the Finance Committee, why don't we do the same for the police. You tasked the City Manager to think about that and see if that was necessary. At that point, he made a request to conduct that study. As you mentioned—I think PD is here behind me, they can explain their staffing situation where it didn't allow them to complete the project. The hope would be for us to be able to review the demand of the services that we need, the resources, are we right-sized, are we not, are we utilizing the resources in an appropriate way, are there any changes that could be made, that you may want to consider as a Council as a result of the study that is conducted. At a big level, that was the background on that. Council Member Scharff: Is there—I mean is there anyone from the Police Department? I mean I don't mind if just someone said should we still do this. Explain to me why they think it's a good idea. I mean I'm not against it necessarily. I just don't want us to spend money because it's in the budget. Ian Hagerman, Senior Management Analyst: Good evening, Council Member Scharff. Ian Hagerman, Senior Management Analyst with the Police Department. I think the PD is—we're interested in doing the study. I think that we're looking for opportunities to be as efficient as possible and do our Attachment C work in the best way we can. Really the delay, as Lalo and others have mentioned, was really a resourcing issue. The folks that are going to be responsible for a lot of the heavy lifting on this study are the same folks that are responsible for replacing our Cad and RMS system, doing kind of all the technology projects in the department. It's really just been kind of a resourcing issue. We actually have a meeting October 1, I think, with kind of the command staff of the PD to kind of talk about scoping this out and possible vendors. We kind of committed to ASD during this last budget process that we'd kind of kick this off in the first half of the next calendar year, so early 2016. I think to tie it all together, we think it's a good idea. We think that it'll help us make sure that we're running things appropriately, and we're definitely going to get it done. Council Member Scharff: Okay, thanks. Mr. Shikada: Along those lines, I have to admit I'm not up to speed on the prior direction and where this is currently standing. Subject to the Committee's decision and where this goes, presuming it's still on the table, I'd like to perhaps have our office be a part of that discussion and do an information report to the Committee on the outcome and particular priority areas we'd be looking at. Council Member Scharff: That'd be great. Then finally the last question I really had was on the storm water rebates. I struggled with this one a little bit. This is the way I read it which could be incorrect. It's not like the Staff Report gives a lot of information on these particular items. The way I read it was that when we did the ballot measure back in 2005, we had a—I was going to say—what is it? Part of the measure was to do innovative—what was it? I want to get it right. Yeah, an annual innovative projects budget. As part of that, so what Staff took that to mean was that we should have rebates for homeowners who did good things with the storm water stuff, and that there was no uptake on that. Therefore, we didn't spend the money, and now we have to come up with another innovative plan. We have to figure out some way to spend the money. I guess the question is—since our next item is using—has this gone to the storm drain committee and have they decided? Because there is an oversight committee, right, on the storm drain. Are they [audio break] with this, do they think we should spend this money? That kind, because I'd much rather they make the recommendation on this. Joe Teresi, Senior Engineer: Good evening. I'm Joe Teresi from the Public Works Department. You are correct that back in 2005 there was a certain amount of money earmarked for efforts to try to reduce storm water runoff and pollutants. At the time of the ballot measure, we had a blue ribbon Attachment C committee who said, "Why are we always trying to attack it from the end up, trying to make bigger pipes and bigger pumps. Why don't we try to reduce the storm water itself and attack it from that angle?" We came up with the rebate program, and it's been moderately successful, but we haven't spent the amount of money earmarked. If you recall a couple of years ago, we took a lot of that money that had built up over the years that hadn't been applied to rebates and used it to implement the Southgate neighborhood storm water improvements which were in that innovative vein. We've been talking about this with the oversight committee, and they are concerned that it's not being spent, but they also are clear that they don't want it to be spent for something else. It's going to be our challenge to find perhaps another thing like Southgate or try to motivate more interest in the rebate program. I think it's important to us and to the committee that it be spent for that particular purpose. Council Member Scharff: Because that's what we told the voters we'd do? Right, I agree. All you're asking us to do—and that was one of my questions—is we reauthorize this and then it's going to go to the committee and the committee will talk about how to spend it? Okay. All right. Those were my questions. Chair Schmid: Good. Council Members, any other questions? Council Member Kniss: I have a little, tiny one. If you go to the print that's even harder to read ... Council Member Scharff: That's the part that's really hard to read, right? Council Member Kniss: This is the part that's really hard to read. Council Member Scharff: Yeah, that's even worse. Council Member Kniss: If I'm looking at all this—who am I looking at? Lalo, who should I be ... Mr. Perez: (inaudible) Council Member Kniss: If I look at that, at the project title, the fund, the reappropriated adjustment, and so forth, these are all relatively small amounts. Are these amounts that we take out, put back in? Mr. Rossmann: Sure ... Council Member Kniss: Where does this—if I come way down, I look at Roth Building maintenance. Just that happened to be one of the ones that I looked at. Now, I presume—I don't know whether that is—it says capital Attachment C improvement fund, but I presume that's one of the ones we decided as a City that we needed to shore up. This didn't have anything to do with their fundraising efforts. Am I correct? Mr. Rossmann: That is correct. What you see here, Council Member, is basically putting the dollars which are unspent which in two fiscal years, which is in either Fiscal Year '15 or '16. If it's a negative amount, we're actually putting it back into '15. If it’s a positive amount, we move money from '15 into '16 fiscal year for the projects which were approved by the Council as part of the budget process. Council Member Kniss: We had money left over? Mr. Rossmann: That's correct. What we do in the budget process is we think we will spend a certain amount of money in Fiscal Year '15, and we carry the rest forward. However, we don't know until we close the books exactly how those dollars land. Here we're truing that up. Council Member Kniss: Mm-hmm. Okay. Mr. Rossmann: There are no new projects which are asked to be authorized here. Council Member Kniss: Okay. This is really just a bookkeeping kind of exercise to be honest, right? Mr. Rossmann: That is correct. Council Member Kniss: Not looking as we have been at the reappropriations. Quite different. This is bookkeeping. Mr. Rossmann: That's correct. For capital ... Council Member Kniss: This is reappropriations. Mr. Rossmann: That's correct. For capital, it's pure bookkeeping except for the Monroe Park. I mentioned in the presentation about $33,000 we're asking for extra funds to align the contract you approved last night. For the operating, it's really moving money for specific projects from Fiscal Year '15 into '16. Council Member Kniss: Okay, thank you. Mr. Rossmann: Thank you, Lalo. He made a good point here. In the previous years, this just happened with the capital process. This actually creates visibility to the Council. As we change the reappropriation process, Attachment C we're showing you the entire capital budget for the entire year in one document. This is now a visible way you see how the money flows. Before it would just be a line item in the capital. Council Member Kniss: Okay. It is different than it has been, right? Mr. Rossmann: That's correct. Council Member Kniss: Okay, good. This is the phone book version, right? Mr. Rossmann: That's correct. Council Member Kniss: Okay. Thanks, Greg. Chair Schmid: I just wanted to note that I also had circled the $500,000 for the Planning Department. I appreciate the back and forth that we've had on that. Let me ask of the Library issue is also a substantial amount. It's a library donation fund. It's spread around technology, training. Is there anything in there that is included in our 2016 budget or are these all additions to what we voted on in our 2016 budget? This is the $339,000 donation money. Monique LeConge-Ziesenhenne, Library Director: I think these are all—oh, sorry. Hi. I'm Monique LeConge-Ziesenhenne, the Library Director. These categories are nothing new, and these are all things, I believe, that were included as part of that budget. This is just the bookkeeping to keep us balanced. No? These are new? Mr. Rossmann: What we did—if I may step in quickly, Monique. Ms. LeConge-Ziesenhenne: Yeah. Mr. Rossmann: What we did here is at the time of the budget development, we didn't know that we will receive those grants. If you had known in April, let's say, or in March these grants will come in, we would have included them in the budget. In this case, it's additional dollars for the Library Department for grants received late in the fiscal year. Ms. LeConge-Ziesenhenne: Right. We, the Library, had planned on them as part of our planning for the budget for the coming year. Internally we knew. Chair Schmid: I guess my question gets down to are we saving money then from the budget that we voted for 2016 and are there extra resources for the Library or for other departments from our budget? Attachment C Mr. Rossmann: The way the Council approved the Library Department Budget was without those grants; however, the Library Department was counting on getting these funds in order to provide the level of service to the public. Ms. LeConge-Ziesenhenne: Yes. Mr. Rossmann: There's no savings per se. It is ... Chair Schmid: We did vote a balanced Library budget ... Mr. Rossmann: That's correct. Chair Schmid: ... and now we have extra funds moving in. Doesn't that free up some of those ... Mr. Rossmann: No, it does not, unless we reduce the service level at the libraries. If it were to do that, then there would be—assume these grants— from Monique's perspective, they were assumed. As she presented you performance measures about the Library, etc., she assumed those dollars. Ms. LeConge-Ziesenhenne: Right. Mr. Rossmann: They just weren't yet in the book. Ms. LeConge-Ziesenhenne: Right, yeah. Chair Schmid: Okay, thank you. I guess I have a more general question of I went to look for reappropriations in our budget documents. When we vote the budget, we see the 2015 Adopted Budget and the 2016 Proposed Budget. Where's the millions of dollars of reappropriations from last year? Mr. Rossmann: In last year's process, the reappropriation process did not amend the budget. It just kept it the same, so you don't see it in FY 2015 Adopted. However, with the change the Council made and with the budget (inaudible) attached to here, we actually will see the change now in the '16 Adjusted Budget, a modified budget. When we come back to you in part of the quarterly reports, what (inaudible) report, you will see those dollars in those departments. Chair Schmid: Next month or so, we're going to get the outside audited look at the budget. Will the reappropriations appear there? Mr. Rossmann: They will not in the Fiscal Year '15 budget. (inaudible) moving from an accounting process to a budget process which makes them Attachment C more visible. Last year in the CAFRA, you may have learned the line called reappropriations ... Chair Schmid: Shouldn't there be savings in the 2015 budget if we did not spend the money in that year and we're pushing it to the next year? Shouldn't there be less spending in the 2015 budget? Council Member Kniss: it's like a slush fund. Mr. Rossmann: In the 2015 budget, these dollars we are moving forward to '16, they are available because we either didn't spend them or we saved them. We're just taking the money forward from one fiscal year to the next, if I answer your question correctly, unless ... You will have every year, there will be—even in the past, we had the reappropriations coming to the Council, to the Committee first, because there's always some unspent funds which we would like to carry forward for projects we would like to execute. Chair Schmid: Yeah. I guess my base question is there somewhere in the budget I can see that number. Mr. Perez: We give it ... Chair Schmid: Will our audited budget say, "Here's the amount that has been transferred"? Mr. Perez: Yeah. It's a complex area, so let me see if we can try to simplify our response and not be so technical. You will not see it in the Adopted Budget. You will see it in our first adjustment of our midyear report under the adjusted column. That's what Walter was referring to. What we could do is we show you the base budget in that midyear, and we show you a line item with the reappropriation. That should match whatever you approve tonight. That's how you track it. You don't track it from the base budget, the Adopted Budget of the June meeting, but you see it going forward. Chair Schmid: Then when you go and introduce the new budget in March/April, that carried forward amount will be in the ... Mr. Rossmann: I understand now. No, it will not, because these are all one- time dollars, which I assume to be spent. As we close out the fiscal year, that's Fiscal Year '16, and indeed we come to the same situation of some funds to be carried forward, this will always happen after you adopt the '17 budget. You'll always be trailing, because we don't know whether we can get the work done or not, are we able to award a contract or not. In sum, thus we're trying to push very hard to get this done and sometimes it doesn't work out. Attachment C Mr. Perez: Its' very rare that we have something. I think the only thing that comes to mind—I'm not picking on Planning—is the Comprehensive Plan. For a couple of years, you probably remember seeing the reappropriation, but that's usually one off. Usually it's like Walter stated. Something else is the reappropriation. Chair Schmid: Okay. I guess that makes that 500,000 contingency item an important ... Mr. Rossmann: If I may, if Council Member Scharff, if the Committee would like to entertain, the other thing we could do, what Lalo was suggesting, we could make the contingency pending Council approval. We can treat it like the City Council contingency. If we were to use the funds, we'll have to come back to you. If that makes the Committee more comfortable. Council Member Scharff: No. Why should I just not approve it? Why shouldn't we do it the way we've always done it? Mr. Perez: Let me try that, because it's a good question. One of the things that we do is we have a 18 1/2 percent target for our Budget Stabilization Reserve. If you don't, then what will happen is then you're going to be forced to take that money from next year's Budget Stabilization Reserve. You're going to drop it below 18 1/2, because you don't have this $0.5 million in there. What we're trying to do is give you a vehicle so you don't go below the 18 1/2 by having this $0.5 million that you know you want to spend, we just don't know how or how much. You have it in there. If you don't use it, let's say you use 100,000, then you have 400,000 more in the Budget Stabilization Reserve that you can then later move to infrastructure. It's really giving you the cushion so we can stay within our target of 18 1/2. That's really what it's doing from a budgetary standpoint. It's not trying to force you to make a call, because you have to give the authority ... Council Member Scharff: You lost me. I don't know—did the rest of you follow that? (inaudible) Where is the 500,000 now? Mr. Perez: Right now it's in the Fiscal Year '15 Budget Stabilization Reserve. Let me back up. You're right, I probably assumed some things here. The reserve policy says that at the end of the fiscal year anything above the 18 1/2 percent of reserve, the City Manager has the discretion to send it forward to the Infrastructure Reserve, leaving you back at 18 1/2 if there's any excess. Council Member Scharff: Right. Attachment C Mr. Perez: We're going to probably do that or give you some direction or recommendation. Let's say that we do that to '16 and we go to 18 1/2. Now you have these transportation needs; you didn't move the 500,000. You're going to dip from that reserve, and you're going to go below the 18 1/2 because ... Council Member Scharff: We're only going to go below because the City Manager has moved the money above 18 1/2 percent, over it, to the infrastructure funding. That's the only reason we're going below, is that correct? Mr. Perez: Yes. Council Member Scharff: (inaudible) discretionary on the City Manager. Couldn't the City Manager say to himself, "I'm leaving the extra few hundred thousand"? We don't have a requirement that if we go above 18 1/2, you move it. It's discretionary with the City Manager. Mr. Perez: Right. I mean at the end of the day, you make the final call; you're the Council. If you wanted ... Council Member Scharff: We don't make the call. I thought the City Manager ... Mr. Perez: I'm sorry? Council Member Scharff: I thought the City Manager—I thought if this money goes into—I understood it this way. If I'm understanding it wrong, tell me. I understand if we don't approve this, this money goes into the Budget Stabilization Reserve ... Mr. Perez: If you ... Council Member Scharff: ... where it just sits. The City Manager has the discretion but not the obligation to move all of the money above 18 1/2 to the infrastructure fund. He can leave, because he has discretion, some of that money in the Budget Stabilization Reserve. Am I incorrect? Mr. Perez: That's correct. At the end of the day, you could change this ... Council Member Scharff: He could look at this and say, "We're likely to spend 300,000 of this, so I am leaving 300,000." He could say, "I'm leaving 400,000." He could say, "I'm leaving all 500,000 there." Attachment C Mr. Perez: It does exactly the same thing as moving the 500 by your scenario. There's no difference. The difference is that we have to write a BAO. That's the only difference. Council Member Scharff: Right, that's the difference, you have to write a BAO. Mr. Perez: What we are saying to you ... Council Member Scharff: Which is what I think you should do. That's the point; you have to write a BAO. Why should this be any different? Why have a BAO process? Why not say for everything in the City then, the City Manager can decide not to do a BAO? Mr. Perez: Actually that's the item for later tonight, Number 3. Council Member Scharff: Okay. That's really the point. Mr. Perez: The (crosstalk). Council Member Scharff: If you're going to fix that structurally throughout the City in Item Number 3, why should I agree to it to be different? Why should we single this out and do a one-off on this?? How is that good budgeting, to do a one-off? Mr. Perez: It doesn't change the budget. It’s a process issue. That's really what it is. Council Member Scharff: Why should you do a one-off on process? I mean, this is what our auditor comes back and gives you a hard time about, Lalo. That's really what that's about. It's like there are procedures and stuff and then the auditor comes in and says that the budget did a one-off over here, and that we shouldn't have done. Or utilities did a one-off. That's really what they're talking about, at least the way I understand it. Mr. Perez: Technically there's nothing wrong with that. There's no findings. We've done it for years before this Council. You call them different contingencies. I've seen cities that have 20 contingencies. There's nothing wrong with it. Its' a matter of preference and style. If you don't like it, it's okay. Council Member Scharff: Okay. Council Member Kniss: Could I just comment to that? Chair Schmid: Yeah. Attachment C Council Member Kniss: I understand where you're going, Greg, but that is one of those choices. It's a process thing, and I don't know if I'd call that a one-off. I think I would—characterize it as you will, but I don't think that's an unusual process. Council Member Scharff: It's clearly a one-off. We don't typically have a habit of creating large contingency funds to get around the fact that the City—what's the City Manager's authority? Mr. Perez: 85,000. Council Member Scharff: To get around the City Manager's $85,000 authority. We don't have 20 different funds in which the City Manager can then go do that. It just—I don't see any reason why we should do it differently. Chair Schmid: Comment from the Planning Director. Ms. Gitelman: Yeah. Thank you, Council Members. Obviously this is your decision to make. I just wanted to articulate really the motivation behind this was a recognition that we are spending—we, the Planning and Transportation Department, spend a lot of our evenings here with the Council working on multiple initiatives. Many times we come to the Council, like we did last night, to get some decision from the Council. Invariably that decision leads to additional requests for study or for information. We were attempting to recognize that. The amount that we have going through our department right now in a process that would enable us to be more nimble, to be responsive to the Council's priorities and to just make the system work a little better. If it makes you uncomfortable, then obviously that's your prerogative. It was really in recognition for the amount of work that's being handled in the office, and the priority with which we know the Council holds some of these efforts. Chair Schmid: Thank you. Council Member Scharff: Could I just respond to that for just a second? In a nice way. Look, I didn't mean to cast that you were trying to get away with anything or that it was inappropriate in a sort of a way that—I understand that you had good intentions behind it. I understand that you're overworked and that you really just want to be efficient. But financial structural procedures that are put in place for a reason and it's always more efficient to ignore them. It always is. It's always easier. That's really what the auditor comes in and says when there are these issues that come up. The auditor wants to put in some new process and procedure, and Lalo comes to Finance and says, "If you do this," and he wrings his hands. I Attachment C mean not inappropriately. I mean there's a tension there. I understand that, but I don't think that you can suddenly create large amounts of cash, and I consider 500,000 to be a large amount of cash. I mean, if you think the City Manager should be able to approve more than $85,000, we could have a system-wide discussion of that. I just think large amounts of cash that don't come to Council, that the City Manager gets to just approve, I think it's just the wrong way to go. Council Member Kniss: Could I respond to that or are you going to? Chair Schmid: I think we ought to move to a motion, a concrete motion of how to approach this and deal with it. Any suggestions? Council Member Kniss: Just another comment. In any governing body I've served on, this is always the discussion. The question is should the person have authority who has the authority to use that money or should they have to come to the governing body and ask them to use that money. That's really what your question is. Council Member Scharff: It's not actually. Council Member Kniss: Then I must not be hearing it correctly. Council Member Scharff: We do; we had that discussion. The City Manager has $85,000. We made those decisions. What they're asking for is an exception to that. I think that you should only have exceptions to these things when you have a really good reason. The fact that it's more efficient and easier to do it is not a good reason, unless there's some crisis, unless there's some ... Council Member Kniss: I think we're saying the same thing. I really do. I think it's a matter—I mean you're uncomfortable with the expediency. Council Member Scharff: Correct. I'm uncomfortable changing the procedures for expediency. Council Member Kniss: I understand totally. As Lalo just said, it's our call. Council Member Scharff: Yeah, absolutely. Council Member Kniss: We want to see every appropriation that comes through. Sometimes governing bodies lose faith in their administration, and they want to see absolutely everything. I think at some point you say, "Is this good or is this bad?" End of discussion for me. You want a motion? Chair Schmid: Yes. If we could get it ... Attachment C Council Member Scharff: I'll make a motion. Council Member Kniss: I'll second it. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to recommend the City Council approve these reappropriations with the exception of the Planning Department for the $500,000. Council Member Scharff: Okay, great. I'll move that we approve these reappropriations with the exception of the Planning Department one for $500,000. Council Member Kniss: With what exception? Council Member Scharff: The Planning Department one for $500,000. Council Member Kniss: No. No, I'm not going to, no. You're going to have to get somebody else to do (crosstalk). Chair Schmid: You seconded it too early. Council Member Kniss: Because I didn't hear what you said. Get closer to the mike. No, I'm not going to penalize the Planning Department for 500,000. MOTION FAILED DUE TO LACK OF A SECOND Chair Schmid: Is there a second? Council Member Filseth: I'll second it. MOTION: Council Member Scharff moved, seconded by Council Member Filseth to recommend the City Council approve these reappropriations with the exception of the Planning Department for the $500,000. Chair Schmid: Do you want to speak to your motion? Council Member Scharff: I think we've talked about it quite a bit. I think, Council Member Kniss, that the difference is it's not a matter of trust. It's not a matter of—it's a matter that we have certain procedures in place. You'd have to make a good argument. Otherwise, you could say, "Why not any time"—why have 85,000? Why not just let the City Manager sign whatever he wants? We trust him. I mean, why have an 85,000 rule? If you're not going to follow those kind of procedures, you're going to get yourself in trouble. If you're always looking at expediency as opposed to we Attachment C have these procedures—if the procedures are too limiting, we should change the procedures. That's the difference. Council Member Kniss: I don't agree with that because I don't think— Chair Schmid: I'm sorry, Council Member ... Council Member Kniss: Sorry, the second gets to talk. Excuse me. Chair Schmid: ... Filseth. Yes. Council Member Filseth: It just seems to me that setting up a $0.5 million discretionary budget without sort of a huge amount of restriction on what it's going to get used for with some money coming from someplace else that it was originally for but didn't get spent, it seems to me that setting that during the reappropriations process seems like kind of an odd way to do it. I'll second the motion. Chair Schmid: Council Member Kniss, did you ... Council Member Kniss: Because I see this so differently—basically you have a CEO of your company and the CEO of your company has a certain limit. At the County, the limit was 95,000. The difference that it makes is there should be some ability of your CEO or whomever it is, your manager, to make some of those discretionary calls. I think, yes, 500,000 may sound like a lot, but I'm not sure you're going to get a whole lot for 500,000, given what we've been spending on transportation and attempting to get our house in order in many of the areas that Hillary has been dealing with. I am not saying this as a far out kind of issue. I can hear your concern about the auditor. I can only say it is not an unusual process, nor is it an unusual practice. We're simply saying we don't like having it like that. Council Member Scharff: With the exception, I've been on Finance Committee every year for the last whatever number of years I've been on Council. I have never seen us do this. I mean, I don't recall ever you setting up a $0.5 million fund out of something that was completely different. Reappropriations, every time I've looked at them in the past has always been we're taking the money that was appropriated for something and reappropriating it for the same thing. I've never seen it used in this way. Chair Schmid: Let's see. I am sympathetic to the motion, that this is $500,000 that was voted for the Council for very particular thing that did not happen. It becomes discretionary. I think the point has been made that the Planning Department especially in its transportation work is under severe Attachment C pressure. The Council, every time it deals with the issue, asks for further work to be done on deadlines to move ahead. Let me suggest a friendly addition to the motion, that the first part of the motion is that the—is what, Greg? Council Member Scharff: That we approve the appropriations. Chair Schmid: Other and not this, but that this money is moved into a special Council contingency fund which will be set aside for transportation issues over the course of the year. When the Council asks for something, the Planning Director can come and say or the Finance Director can come and say, "We would like to use X amount of dollars for this specific purpose." Mr. Perez: Yes. You can add it to your current contingency or make it a special transportation contingency. I just have to make one clarification, Council Member Scharff. We were not asking for a waiver of the 85,000 with this process. Just to be clear. We would still come to you with anything over 85, just so we were on the record on that. We don't want to leave you with the wrong impression. That's not what we were asking for. Anything you give us, we have to come to you with anything above 85, no matter what contingency it comes from. Chair Schmid: Okay. Council Member Scharff: If we take Council Member Schmid's approach, then the money would go into a separate transportation fund. Mr. Perez: Within the General Fund. Council Member Scharff: Within the General Fund. Mr. Perez: What we would have to do is come back and write a report. Typically when you put it in a contingency, technically you do not need a Budget Amendment Ordinance, because it's already appropriated for that purpose. Council Member Scharff: I'm fine with Council Schmid's approach then. I don't see any difference from it being there or being in the Budget Stabilization Reserve frankly, except for it actually is ... Chair Schmid: Yeah, I guess ... Council Member Scharff: .... it's more focused on transportation now as opposed to you can't use it for anything else actually in the meantime. Attachment C Chair Schmid: Yeah, I guess I'm concerned a little bit with the Budget Stabilization Fund, because there's what has become an automatic movement to the infrastructure. Council Member Scharff: Right. I'm good with your amendment. Chair Schmid: Okay. Any further comment? Council Member Filseth: I'll accept it. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to recommend the Council direct Staff to move the Planning Department request of $500,000 to a special Council Contingency Fund to be set aside for transportation issues brought forward over the upcoming year. Council Member Kniss: I'm going to clarify it once more. It will go into a special fund. I don't care whether it's called ABC or DEF. It's a special fund that is—it is meant for transportation needs, correct? Mr. Perez: Correct. Council Member Kniss: It doesn't change the 85,000 ceiling, correct? Mr. Perez: Correct. That accomplishes what we're asking you to do. Council Member Kniss: Then I'm okay with that. Let me just say a little further. If there is anything that I have spent more time and energy on in email and phone calls than those issues that have dealt with transportation this year, I don't know what it is. Between parking down in Eric Filseth's area—hello, down there. Whether it's parking in North Palo Alto or now it's moved across the street or whatever it may be, this is one of those areas where I keep hearing from citizens, "You guys have to move on this. You've got to move it up. You've got to move it over." We have a real demand in this community for things that deal with transportation. I am far more sympathetic with this than I would be if you tell me you need to re-roof the Roth Building or something like that and stick that in a contingency. I think this is a real, live issue in our community. I want our transportation division and Hillary to be nimble with this. I think this is the easiest way to be nimble. Chair Schmid: Yeah, and that's the goal of it. Planning Director. Ms. Gitelman: Thank you. I appreciate where this is trending. I just wanted to clarify. We had suggested this contingency planning and transportation item and the thought that there might be a larger Attachment C transportation—I'm sorry, planning issue in addition to transportation issues. I don't know whether you want to make it specific to transportation and parking or leave open the potential that this could be used, for example, if we wanted to proceed with the next phase of the Downtown CAP study or another big initiative like that that's not currently budgeted elsewhere. Entirely up to you. Mr. Perez: To remind you, the way you have set the motion, you give the direction, not the City Manager. Chair Schmid: Do you want to widen it? Council Member Scharff: I'm just laughing because it gets wider and wider as you go through this process. Chair Schmid: Yeah. I said transportation because the original Council vote was for a shuttle program which was transportation-oriented. That, of course, does not mean that as funding needs arise, as we go through the Comp Plan Update, we won't respond to whatever the Council is asking for. Council Member Scharff: By putting it in this fund though, any time you want to use it, you'd need to do a BAO that would say where it's coming from. Mr. Perez: We cannot touch it ourselves, correct. Council Member Scharff: You'd say where it's coming from, right? Mr. Perez: We don't have to do a BAO technically, but we have to come to you to pull from there. Council Member Scharff: You have to come to us and pull it from there? Mr. Perez: Yes, we can't do it ourselves. Mr. Rossmann: You'll approve it (crosstalk)—I'm sorry. You will approve it by motion. Council Member Kniss: That's fine. Mr. Rossmann: It will be part of the recommendation language. It would say allocate $50,000 from the planning/transportation/parking contingency account towards that purpose. That's the type of motion you would see. Chair Schmid: Transportation contingency because that ... Attachment C Mr. Rossmann: Whatever the Council decides to call it. Chair Schmid: ... that's wider. Okay, if there are no further comments ... Council Member Scharff: Hillary, now I'm concerned actually. No, I mean, the issue is this. The issue is that you said transportation and you may need to use it for something else. I'm not saying it would be inappropriate to use it for something else, but if we leave it at transportation and you need to do a big planning initiative, then we have money sitting there and you have to find the money somewhere else. Right? As long as we are making the decision at Council, I'm fine with broadening it. My goal here is not to hamstring—make it even more difficult. I think if we just have a transportation contingency, what we're doing is making it more difficult for you to do your job, not less. If I'm wrong and you're fine with it just being transportation, say so and I'll shut up. Ms. Gitelman: I'm fine with that. Council Member Scharff: Just being transportation, you're fine with that? Okay. I'm fine. Transportation it is. Chair Schmid: Okay. Any further comments? Council Member Kniss: It's almost midnight. I'm ready to vote. Chair Schmid: All in favor of the motion. I guess we need to say all in favor. Council Member Scharff: Oh, we all push the button. Is that what we do? Chair Schmid: Yeah. That passes unanimously. Thank you very much. MOTION PASSED: 4-0 ADJOURNMENT: Meeting adjourned at 7:50 P.M. Attachment C City of Palo Alto (ID # 6181) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/2/2015 City of Palo Alto Page 1 Summary Title: City Council Budget and Table of Organization Amendment Approval Title: Finance Committee Recommends Amendment of Municipal Code Section 2.28.080 Regarding City Council Budget and Table of Organization Amendment Approvals From: City Manager Lead Department: Administrative Services Recommendation Staff and the Finance Committee recommend to the City Council to amend Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the City Council budget and Table of Organization amendment approval process from an ordinance to a motion. Executive Summary Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Palo Alto Municipal Code section 2.28.050, titled Amendments after Adoption, states, in part, that during the fiscal year the City Council may amend the City’s budget and the Table of Organization by ordinance through approval of Budget Amendment Ordinances. Staff recommends that the City Council approve Budget and Table of Organization amendments by motion versus ordinance. This change would avoid duplicative work and streamline the process while recording changes to the specific budget and Table of Organization via a motion proposed in the “recommendation” section of the staff report. In instances where a multitude of amendments are recommended, such as the Midyear Budget Review, amendments would be detailed in an attachment referenced in the motion. Staff discussed the Municipal Code amendments with the Finance Committee on June 16 and September 22 (Attachment A contains both reports). In response to the Committee’s concerns expressed at the June 16 meeting regarding the historical record of budget changes approved throughout the year by the City Council, staff returned to the Finance Committee on September 22. City of Palo Alto Page 2 At this meeting, staff presented a new section on the City’s website titled “Budget Adjustments and Monitoring.” At this website, staff has listed by fund type all Council approved budget changes for Fiscal Year 2015 and linked the respective City Manager Reports (CMRs). Going forward, as budget changes are approved, they will be listed by fiscal year, fund type and linked to the approved City Manager’s Report. In contrast the City Clerk’s website includes all Council approved ordinances by calendar year and residents have to scroll through the website to find the budget related ordinances. At the September 22 meeting, the Finance Committee unanimously endorsed staff’s recommendation to change the budget and Table of Organization amendment approval from ordinance to motion (see Attachment B for Finance Committee minutes). Background Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Reasons for budget amendments include the acceptance of grants and the related expenditure, requests for funding to support Council initiatives, insufficient funding of capital projects due to higher construction costs, or corrections to the approved budget. In Fiscal Year 2015, the Table of Organization was amended as part of outsourcing the street sweeping service, the addition of a Principal Attorney position as part of approval of the Fiscal Year 2015 Midyear Budget review, and technical adjustments as part of approval of the Management and Professional Compensation Plan. In accordance with Palo Alto Municipal Code section 2.28.050 titled Amendments after Adoption states in part that during the fiscal year, the City Council may amend the City’s budget and the Table of Organization by ordinance. Staff presented the attached reports (Attachment A) on June 16 and September 22 to the Finance Committee. At the June 16 meeting, the Committee expressed concerns regarding the historical record of budget changes approved throughout the year by the City Council and the ability of future Council members, commissioners, or the public to find historical information. Although the Finance Committee approved the June 16 City Manager’s Report (two yeas, one abstain, one absent), staff felt it to be a more prudent approach to return to the Committee with a recommendation to address the Committee’s concern before taking the item to the City Council. At September 22 meeting, staff presented a new section on the City’s website titled “Budget Adjustments and Monitoring.” At this site, staff has listed by fund type all Council approved budget changes for Fiscal Year 2015 and linked the respective City Manager Reports (CMRs). Going forward, as budget changes are approved, they will be listed by fiscal year, fund type and linked to the approved City Manager’s Report. City of Palo Alto Page 3 Discussion As outlined in more detail in the June 16 report to the Finance Committee (Attachment A), when staff brings forward a report with a recommendation to amend the budget or the Table of Organization, a separate Budget Amendment Ordinance (BAO) is prepared and attached to the report. The separate Budget Amendment Ordinance is required, since Palo Alto Municipal Code Section 2.28.050 states in part that the City Council is required to amend the budget or Table of Organization by ordinance. The BAO contains the same information in summary form as the staff report, such as the background, discussion of the staff report, and a California Environmental Quality Act statement. The recommended budgetary transactions or specific Table of Organization changes are the only additional information provided in the BAO. In order to ensure consistency between the staff report and the BAO, staff spends significant time to write the BAO. In general, the Office of Management and Budget spends about an hour for preparation, coordination, review, and final processing for each BAO. After Council approval, staff circulates the approved ordinance for signature, at minimum, to the Mayor as well as staff in the City Clerk, City Attorney, City Manager, and Administrative Services Department. In Fiscal Year 2015, over 30 BAOs and Table of Organization amendments were written and routed for signature. In order to increase efficiencies in the preparation of staff reports which include budget and Table of Organization amendment recommendations, staff proposes that the Council adopt budget and Table of Organization amendment recommendations by motion instead of by ordinance. The attached draft ordinance identifies the recommended Municipal Code changes (Attachment C). If these changes in the Municipal Code are recommended for approval by the Council, staff will include the specific budget and Table of Organization amendment recommendations in the recommendation language of the staff report versus creating a separate BAO and attaching the BAO to the staff report. Further, this change would streamline the staff report preparation process and save staff time. In order to improve the public, Council, and staff’s access to Council approved budget changes by fiscal year, and build a historical summary staff has launched a new section on the City’s website titled “Budget Adjustments and Monitoring.” At this site, staff has listed by fund type all Council approved budget changes for Fiscal Year 2015 and year-do-date for Fiscal Year 2016 and linked the respective City Manager Reports (CMRs). Going forward, as budget changes are approved, they will be listed by fiscal year, fund type and linked to the approved CMR. Further, this site also links the quarterly financial reports as heard by the Finance Committee and approved by the City Council. Finance Committee Review and Discussion At the September 22 Finance Committee meeting, the Finance Committee supported staff’s recommendation regarding the creation and upkeep of the Budget Adjustments and Monitoring website. The Finance Committee voted unanimously to recommend that Council approve the Municipal Code change. City of Palo Alto Page 4 Timeline If the City Council approves this change in the Municipal Code, staff will bring forward the second reading of the ordinance on November 16 and the ordinance would become effective 30 days after the second reading. Resource Impact If approved by the City Council, this change in the budget amendment process will allow staff to spend its time on higher value activities. Environmental Review This is not a project under the California Environmental Impact Report. Attachments:  Attachment A: City Council Budget and Table of Organization Amendment Approval CMR Finance Committee Sept. 22 2015 (PDF)  Attachment B: 22-Sept-2015 Finance Committee Meeting Minutes Excerpt Item 3 (PDF)  Attachment C: Draft Ordinance Amending Section 2.28.080 of Chapter 2 Fiscal Procedures (PDF) City of Palo Alto (ID # 6089) Finance Committee Staff Report Report Type: Action Items Meeting Date: 9/22/2015 City of Palo Alto Page 1 Summary Title: City Council Budget and Table of Organization Amendment Approval Title: Amendment of Municipal Code Section 2.28.080 Regarding City Council Budget and Table of Organization Amendment Approvals From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee recommend to the City Council to amend Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the City Council budget and Table of Organization amendment approval from an ordinance to a motion. Recommended Motion The Finance Committee recommends to the City Council to amend Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the City Council Budget and Table of Organization amendment approval from an ordinance to a motion. Executive Summary Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Palo Alto Municipal Code section 2.28.050, titled Amendments after Adoption, states, in part, that during the fiscal year the City Council may amend the City’s budget and the Table of Organization by ordinance through approval of Budget Amendment Ordinances. Staff recommends that the City Council approve Budget and Table of Organization amendments by motion versus ordinance. This change would avoid duplicative work and add the specific budget and Table of Organization amendment recommendations to the recommendation language of the staff report versus to an attachment to the report. In instances where a multitude of amendments are recommended, such as the Midyear Budget Review, amendments would be detailed in an attachment referenced in the motion. Attachment A City of Palo Alto Page 2 Staff presented the attached report (Attachment A) on June 16 to the Finance Committee. The Committee expressed concerns regarding the historical record of budget changes approved throughout the year by the City Council (see Attachment B for the June 16 Finance Committee minutes) and the ability of future Council members, commissioners, or the public to find historical information. Currently, all ordinances including Budget Amendment Ordinances are listed in chronological order in the ordinance section of the City Clerk’s website. To address these concerns, staff has launched a new section on the City’s website titled “Budget Adjustments and Monitoring.” At this site, staff has listed by fund type all Council approved budget changes for Fiscal Year 2015 and linked the respective City Manager Reports (CMRs). Going forward, as budget changes are approved, they will be listed by fiscal year and fund type and linked to the approved CMR. In contrast to the City Clerk’s website, which includes all Council approved ordinances by calendar year and residents have to scroll through the website to find the budget related ordinances, the Budget Adjustments and Monitoring section of the City’s website provides one location for all budget changes organized by fiscal year. Further, this new site also links the quarterly financial reports as heard by the Finance Committee and approved by the City Council. Although the Finance Committee approved the June 16 City Manager’s Report (two yeas, one abstain, one absent), staff felt it to be a more prudent approach to return to the Committee to address the Committee’s concern before taking the item to the City Council. Background Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Reasons for budget amendments include the acceptance of grants and the related expenditure, requests for funding to support Council initiatives, insufficient funding of capital projects due to higher construction costs, or corrections to the approved budget. In Fiscal Year 2015, the Table of Organization was amended as part of outsourcing the street sweeping service, the addition of a Principal Attorney position as part of approval of the Fiscal Year 2015 Midyear Budget review, and technical adjustments as part of approval of the Management and Professional Compensation Plan. In accordance with Palo Alto Municipal Code section 2.28.050 titled Amendments after Adoption states in part that during the fiscal year, the City Council may amend the City’s budget and the Table or Organization by ordinance. Staff presented the attached report (Attachment A) on June 16 to the Finance Committee. In discussion with the Committee the Committee expressed concerns regarding the historical record of budget changes approved throughout the year by the City Council and the ability of future Council members, commissioners, or the public to find historical information. Although the Finance Committee approved the June 16 City Manager’s Report (two yeas, one abstain, Attachment A City of Palo Alto Page 3 one absent), staff felt it to be a more prudent approach to return to the Committee with a recommendation to address the Committee’s concern before taking the item to the City Council. Discussion As outlined in more detail in the June 16 report (Attachment A), when staff brings forward a report with a recommendation to amend the budget or the Table of Organization, a separate Budget Amendment Ordinance (BAO) is prepared and attached to the report. The separate Budget Amendment Ordinance is required, since Palo Alto Municipal Code Section 2.28.050 states in part that the City Council is required to amend the budget or Table of Organization by ordinance. The BAO contains the same information in summary form as the staff report, such as the background, discussion of the staff report, and a California Environmental Quality Act statement. The recommended budgetary transactions or specific Table of Organization changes are the only additional information provided in the BAO. In order to ensure consistency between the staff report and the BAO, staff spends significant time to write the BAO. In general, the Office of Management and Budget spends about an hour for preparation, coordination, review, and final processing for each BAO. After Council approval, staff circulates the approved ordinance for signature, at minimum, to the Mayor as well as staff in the City Clerk, City Attorney, City Manager, and Administrative Services Department. In Fiscal Year 2015, over 30 BAOs and Table of Organization amendments were written and routed for signature. In order to increase efficiencies in the preparation of staff reports which include budget and Table of Organization amendment recommendations, staff proposes that the Council adopt budget and Table of Organization amendment recommendations by motion instead of by ordinance. The attached draft ordinance identifies the recommended Municipal Code changes (Attachment C). If these changes in the Municipal Code are recommended for approval by the Finance Committee and approved by the Council, staff will include the specific budget and Table of Organization amendment recommendations in the recommendation language of the staff report versus creating a separate BAO and attaching the BAO to the staff report. Further, this change would streamline the staff report preparation process and save staff time. In discussion with the Committee on June 16, the Committee expressed concerns regarding the historical record of budget changes approved throughout the year by the City Council and the ability of future Council members, commissioners, or the public to find historical information. Currently, all ordinances including Budget Amendment Ordinances are listed in chronological order by calendar year in the ordinance section of the City Clerk’s website. In order to identify ordinances related to Council approved budget changes, residents are required to know the calendar year of the approved change and find the change among all other ordinances approved by the Council. Therefore, to address the Committee’s concerns, improve the residents’ access to Council approved budget changes by fiscal year, and build a historical summary staff has launched a Attachment A City of Palo Alto Page 4 new section on the City’s website titled “Budget Adjustments and Monitoring.” At this site, staff has listed by fund type all Council approved budget changes for Fiscal Year 2015 and year- do-date for Fiscal Year 2016 and linked the respective City Manager Reports (CMRs). Going forward, as budget changes are approved, they will be listed by fiscal year and fund type and linked to the approved CMR. Further, this site also links the quarterly financial reports as heard by the Finance Committee and approved by the City Council. Staff appreciates the Committee’s discussion regarding the proposed Municipal Code changes during the June 16 meeting and hopes that with the new website, the Committee’s concerns are addressed and the City improved in documenting budget changes in an accessible way for our residents. Timeline If the Finance Committee approves this change in the Municipal Code, staff will bring forward the recommendation to the City Council in October 2015. Resource Impact If approved by the City Council, this change in the budget amendment process will allow staff to spend its time on higher value activities. Environmental Review This is not a project under the California Environmental Impact Report. Attachments: Attachment A: City Council Budget and Table of Organization Amendment Approval CMR Finance Committee June 16 2015 (PDF) Attachment B: Finance Committe Minutes June 16 2015 (PDF) Attachment C: Draft Ordinance Amending Section 2.28.080 of Chapter 2 Fiscal Procedures (PDF) Attachment A City of Palo Alto (ID # 5692) Finance Committee Staff Report Report Type: Action Items Meeting Date: 6/16/2015 City of Palo Alto Page 1 Summary Title: City Council Budget and Table of Organization Amendment Approval Title: Amendment of Municipal Code Section 2.28.080 regarding City Council Budget and Table of Organization Amendment Approvals From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee recommend to the City Council to amend Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the City Council budget and table of organization amendment approval from an ordinance to a motion. Recommended Motion The Finance Committee recommends to the City Council to amend Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the City Council budget and Table of Organization amendment approval from an ordinance to a motion. Executive Summary Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Palo Alto Municipal Code section 2.28.050, titled amendments after adoption, states, in part, that during the fiscal year the City Council may amend the City’s budget and the Table of Organization by ordinance through approval of budget amendment ordinances. Staff recommends that the City Council approve budget and table of organization amendments by motion versus ordinance. This change would avoid duplicative work and add the specific budget and Table of Organization amendment recommendations to the recommendation language of the staff report. In instances where a multitude of amendments are recommended, such as the Midyear Budget Review, amendments would be detailed in an attachment referenced in the motion. Attachment A City of Palo Alto Page 2 Background Annually the City Council adopts the City’s budget and the Table of Organization. Throughout the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for various funds be amended. Less frequently, the Table of Organization is amended. Reasons for budget amendments include the acceptance of grants and the related expenditure, requests for funding to support Council initiatives, insufficient funding of capital projects due to higher construction costs, or corrections to the approved budget. In Fiscal Year 2015, the Table of Organization was amended as part of outsourcing the street sweeping service, the addition of a Principal Attorney position as part of approval of the Fiscal Year 2015 Midyear Budget review, and technical adjustments as part of approval of the Management and Professional Compensation Plan. Palo Alto Municipal Code section 2.28.050 titled Amendments after Adoption states in part that during the fiscal year, the City Council may amend the City’s budget and the Table or Organization by ordinance. Discussion When staff brings forward a report with a recommendation to amend the budget or the Table of Organization, a separate Budget Amendment Ordinance (BAO) is prepared and attached to the report. The separate budget amendment ordinance is required, since Palo Alto Municipal Code Section 2.28.050 states in part that the City Council is required to amend the budget or Table of Organization by ordinance. After approval, the BAO is assigned a number by the Clerk’s Office and routed for signature to the Mayor, the City Manager, the City Attorney’s Office, the Administrative Services Director, and to the department director whose budget was amended. Unlike most ordinances, a BAO becomes effective upon adoption and does not require a second reading. The BAO contains the same information in summary form as the staff report, such as the background, discussion of the staff report, and a California Environmental Quality Act statement. The recommended budgetary transactions or specific Table of Organization changes are the only additional information provided in the BAO. In order to ensure consistency between the staff report and the BAO, staff spends significant time to write the BAO. In general, the Office of Management and Budget spends about an hour for preparation, coordination, review, and final processing for each BAO. In order to increase efficiencies in the preparation of staff reports which include budget and Table of Organization amendment recommendations, staff proposes that the Council adopt budget and Table of Organization amendment recommendations by motion instead of by ordinance. The attached draft ordinance identifies the recommended Municipal Code changes (Attachment A). If these changes in the Municipal Code are recommended for approval by the Finance Committee and approved by the Council, staff will include the specific budget and Table of Attachment A City of Palo Alto Page 3 Organization amendment recommendations in the recommendation language of the staff report, versus creating a separate BAO or Table of Organization Ordinance. Further, this change would streamline the staff report preparation process and save staff time. Attachment B provides an example (first page only) of a recently approved staff report (CMR #5558, Approval of a Residential Curbside Compostable Collection Program) and attached BAO with the relevant budget amendment section highlighted in the BAO. Attachment C exemplifies how the recommendation language for the same staff report would be written, if Finance Committee approves staff recommendation to adopt budget amendments by motion. As another step to provide relevant budgetary information, staff will include available reserve balances in the Recommendation and Resource Impact sections of the staff report. This will occur after the issuance of the Fiscal Year 2015 Comprehensive Annual Financial Report (CAFR), as the audited financial statements provide staff with the Fiscal Year 2015 ending fund balances for all funds, which become the Fiscal Year 2016 beginning fund balances. Once the actual fund balances are known, staff can determine available fund balances and the impact of recommended actions on these fund balances. Timeline If the Finance Committee approves this change in the Municipal Code, staff will bring forward the recommendation to the City Council in August 2015. Resource Impact If approved by the City Council, this change in the budget amendment process will allow staff to spend its time on higher value activities. Environmental Review This is not a project under the California Environmental Impact Report. Attachments:  Attachment A: Draft Ordinance Amending Section 2.28.080 of Chapter 2 Fiscal Procedures (PDF)  Attachment B: CMR 5558, Approval of Residential Curbside Compostable Collection Program (first page only) and Budget Amendment Ordinance (PDF)  Attachment C: New Budget Amendment Recommendation Language for CMR 5558 (PDF) Attachment A NOT YET APPROVED 150325 jb 0131328 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Section 2.28.080 (Amendments after Adoption) of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code to __________________ The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 2.28.080 Amendments after Adoption of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code is amended to read as follows: 2.28.080 Amendments after adoption. During the fiscal year, the city manager shall amend the budgetary accounts of the city to reflect the following: (a) Additional Appropriations. By a two‐thirds vote, the council may make additional appropriations of receipts that are in excess of the total estimated receipts and appropriations contained in the adopted budget. (b) Additional Positions. By a majority vote, the council may add positions to the table of organization. (c) Transfer of Appropriations. (1) By a majority vote, the council may transfer part or all of the unencumbered balance of any appropriation from one fund, department, office, or capital project to another; (2) By written authorization, the city manager may direct the redistribution, within any department or office, of the unencumbered balance of appropriations within the departments or offices, provided that he or she shall not make transfers from the classification of utilities purchased for resale to any other object or make transfers between funds or transfers between departments without the affirmative vote of a majority of the council; (3) By written authorization, the city manager may authorize a transfer of appropriation from the unallocated balance of the contingent account to any department, office or capital project. Funds shall not be transferred between the general fund and the enterprise funds, nor between operating and capital funds. (d) Transfer of Positions. By written authorization, the city manager may transfer positions or assign personnel from any department or office under the control of the city manager to another in accordance with Article IV, Section 6(n) of the Charter. (e) Inter‐fund Transactions. In the event that appropriations and equivalent offsetting credits for allocated inter‐fund services or transfers are affected by amendments to appropriations for Deleted: by ordinance Deleted: by ordinance Deleted: by ordinance Attachment A NOT YET APPROVED 150325 jb 0131328 2 direct expenditures or estimated revenue, the city manager may make corresponding adjustments to the inter‐fund accounts so affected. (f) Salaries and Benefits. Amendments to the Employee Classification and Compensation Plan adopted by the council pursuant to Article III, Sections 12, 18 and 21 of the Charter. (g) Prior year Encumbrances. Appropriations that were encumbered by properly executed, but uncompleted, purchase orders or contracts at the close of the previous fiscal year may be carried forward and incorporated with appropriations of the current year. (h) Municipal Fee Schedule. By a majority vote, the council may, by ordinance, add or change fees in the municipal fee schedule. SECTION 2. The City Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the adoption of this ordinance. SECTION 3. This ordinance shall become effective upon the commencement of the thirty‐first day after the date of its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Administrative Services Attachment A City of Palo Alto (ID # 5558) City Council Staff Report Report Type: Action Items Meeting Date: 3/23/2015 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Approval of a Residential Curbside Compostable Collection Program Title: Approval of a Residential Curbside Compost Collection Program and Adopting a Budget Amendment Ordinance for $387,000 for the Purchase of Kitchen Buckets and New Outreach Materials From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve a new residential curbside collection and composting program of food scraps commingled with yard trimmings in the green carts, effective July 1, 2015; and 2.Adopt the attached Budget Amendment Ordinance in the amount of $387,000 to fund the purchase of kitchen buckets and outreach materials that are needed as part of the implementation of the new residential curbside compost collection program. Executive Summary The implementation of the GreenWaste Contract in 2009 added several zero waste programs that boosted the City’s diversion rate (from landfills) from 62% in 2008 to approximately 78% in 2013. While this diversion rate is one of the highest in the state, it has not increased as desired over the past few years to help the City meet its Zero Waste Goal by 2021. The next big step in the City’s efforts to attain its zero waste goals is getting food scraps out of the landfill, as they make up 50% of residential garbage – over 5,000 tons landfilled annually. Attachment A 1 Revised December 08, 2014 5238/eb Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2015 TO PROVIDE ADDITIONAL APPROPRIATION OF $387,000 IN THE REFUSE FUND FOR THE RESIDENTIAL FOOD SCRAPS PROGRAM. The Council of the City of Palo Alto does ordain as follows: SECTION 1. A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. Staff is recommending a new residential food scraps collection and composting program that would be implemented July 1, 2015 as part of the City’s efforts to meet its goal of zero waste to landfills by 2021; and C. Food scraps comprise nearly fifty percent of the material found in single-family residential garbage in Palo Alto. Currently, these food scraps can only be disposed in garbage cans. Other residents send food scraps down the drain, which is not recommended due to additional water usage and the potential for sewer blockages. Neither of these methods is appropriate for meat, cheeses, eggs, or other foods high in protein or oil; and D. In April 2013, the City implemented a year-long Two Cart Pilot Program in the Green Meadow neighborhood that eliminated garbage carts completely and redirected food scraps to compostable bags and into the yard trimming cart. Residents in the pilot were asked to bag any remaining garbage and place it in the recycling carts; and E. While the Two Cart Pilot Program did increase diversion of food scraps and additional recyclables from the landfills, staff is not recommending a citywide roll-out of the two-cart collection system at this time, as many participants felt that the program was too complicated. City intends to continue the pilot for calendar year 2015; and F. Under the new program, the city-wide collection of residential food scraps would be commingled with yard trimmings. There are several regional composting facilities that are permitting compost being commingled with food scraps and yard trimmings. The food scraps collection program will likely divert and recover over half of the food scraps in the residential garbage, which is equivalent to a four percent increase in the City’s overall diversion rate; and G. An initial investment of $387,000 will be needed to purchase kitchen pails and provide the outreach and training materials needed for implementation. Outreach and training materials will include cart tags, program brochures, stickers for collection carts, stickers for the kitchen pails, how-to-video, and informational postcards with program Attachment A 2 Revised December 08, 2014 5238/eb information. The annual net costs associated with the new residential food scraps collection and composting program are currently anticipated to be $532,000, and are expected to be recovered through an increase in the single-family residential refuse rate pending City Council approval as part of the Fiscal Year 2016 budget process. SECTION 2. Therefore, the sum of Three Hundred Eighty Seven Thousand Dollars ($387,000) is hereby appropriated in the Refuse Fund for the residential food scraps program, offset by a corresponding reduction to the ending fund balance ($387,000). SECTION 3. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 4. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Assistant City Attorney City Manager ____________________________ Director of Administrative Services ____________________________ Director of Public Works Attachment A Recommendation Staff recommends that Council: 1. Approve a new residential curbside collection and composting program of food scraps commingled with yard trimmings in the green carts, effective July 1, 2015; and 2. Approve an amendment to the Fiscal Year 2015 Adopted Budget for the Refuse Fund by: a. Increasing the budget by $387,000 to fund the purchase of kitchen buckets and outreach materials that are needed as part of the implementation of the new residential curbside compost collection program; and b. Decreasing the Rate Stabilization Reserve by $387,000. Executive Summary The implementation of the GreenWaste Contract in 2009 added several zero waste programs that boosted the City’s diversion rate (from landfills) from 62% in 2008 to approximately 78% in 2013. While this diversion rate is one of the highest in the state, it has not increased as desired over the past few years to help the City meet its Zero Waste Goal by 2021. The next big step in the City’s efforts to attain its zero waste goals is getting food scraps out of the landfill, as they make up 50% of residential garbage – over 5,000 tons landfilled annually. Staff proposes to start residential curbside compost (e.g., food scraps and food soiled paper) collection in July 2015. The new program will allow residents to place loose food scraps and food soiled paper directly into the ‘green’, yard trimmings cart. Residents will also be given a kitchen bucket to store a few days’ worth of food scraps in the house before depositing it in the green cart. This program will reduce community greenhouse gas emissions by over 1,140 metric tons of CO2 equivalent each year. The program will incur annual (net) cost increases of approximately $532,000 to compost and/or anaerobically digest food scraps commingled with yard trimmings. The resulting increase in costs to residents would be approximately 6.1% (about a $2.63 per month increase for a 32 gallon‐sized garbage service). Staff is also requesting a one‐time Budget Amendment Ordinance (BAO) for $387,000 to fund the purchase of the kitchen buckets and print new program outreach materials. Attachment A FINANCE COMMITTEE MINUTES Page 1 of 28 Special Meeting Tuesday, June 16, 2015 Chairperson Schmid called the meeting to order at 6:15 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth, Kniss, Schmid (Chair) Absent: Scharff Oral Communications None Agenda Items 1. Staff Recommendation that the City Council Adopt Two Resolutions Effective September 1, 2015: 1) Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master- Metered and General Non-Residential Water Service), and W-7 (Non- Residential Irrigation Water Service) to Increase Rates 4 Percent and Add Drought Surcharges; and 2) Activating Drought Surcharges at the 20 Percent Level in Response to Mandatory Potable Water Use Restrictions Imposed by the State Water Resources Control Board. Jon Abendschein, Senior Resource Planner: Good evening, Council Members. My name's Jon Abendschein. I'm a Senior Resource Planner with the Resource Management Division. I'm here to talk to you tonight about the four percent Water Rate increase and Drought Surcharges. The recommendation that we have for you tonight is to adopt two Resolutions, one to amend Water Rates, to raise rates by four percent, and add Drought Surcharges effective September 1, 2015. The second is to activate those Drought Surcharges. We're putting three levels of Drought Surcharge on the rate schedule, and we're recommending that you activate the 20 percent reduction level surcharge effective September 1, 2015. We're trying to achieve three objectives with these ... Attachment B MINUTES Page 2 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Chair Schmid: Could I ask a question? You're asking us to activate or to recommend to Council to activate. Mr. Abendschein: To recommend to Council to activate. I'm sorry. This is our recommendation to the City Council we're asking you to recommend to the City Council. Chair Schmid: Pass it on, yes. Mr. Abendschein: Our objectives with these two Resolutions. We have three objectives. First off, we want to complete the 12 percent rate increase that we discussed with you last week, which we recommended be broken into two parts, an eight percent effective July 1st and four percent effective September 1st. Last night you approved the first part of that two-part rate increase. This would be the second part. We're also, as I said, adding Drought Surcharges and activating the Drought Surcharges. On June 3rd, the Utilities Advisory Commission (UAC) unanimously recommended the Council approve the recommended action. We don't' unfortunately have the minutes of the discussion in the report, because their meetings were too close together. We do have Chair Foster, Jonathan Foster, here to talk about the UAC's discussion. I'll just go over the background. It's important just to remind everyone how we got here. Last fall as we were getting into the drought, the Finance Committee discussed a set of Rate Design Guidelines to be used in designing Drought Surcharges. We started a Cost of Service analysis. In March and April, we started our usual financial forecasting process. We recommended a 12 percent rate increase. That was adopted by the UAC and the Finance Committee. I'm reiterating some discussion we had at the Council Member meeting. In late April when we were mailing our Prop 218 notice, there was a court decision. We asked our Water Rate Consultant to take a look at our rate design methodology. We came to you last week to incorporate some recommended adjustments effective July 1st. I don't think I need to necessarily reiterate this. You've already heard this earlier in the week. If you have any questions on it, I'm happy to answer them. This slide, Slide Number ... Council Member Kniss: Could I interrupt with that one? Given that court decision, even though you've discussed tiers in here, help me out with that. Perhaps I didn't understand the court decision. Mr. Abendschein: I can go into this in a little more depth then. The court decision did address tiers. The court decision did not say—I'll defer to the City Attorney on this—that tiers were something cities couldn't use; they just had to be cost justified. Our Water Rate Consultant took a look at ... Attachment B MINUTES Page 3 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Council Member Kniss: That's a big thing, to cost justify it. That's what it hung on, as I understand it. Mr. Abendschein: That's right. When we adopted our Two-tier rate system back in 2012, we had a methodology for justifying that two-tier system. In the wake of the court decision, we wanted to take a look at it and say, "Do we still feel comfortable with it?" The consultant said, "We do still feel comfortable with it." It has to do with the way that system capacity is allocated to year-round and seasonal uses. I'm happy to go into that in more depth, if you would like to. Council Member Kniss: As I said, this is the crux of the whole thing. It's why we're debating this. It's why, as I understand it, we're doing one right now and we're going to add more at the end of the summer. If I'm wrong on that, I'd like to know it. That was my understanding as I looked at this and realized what our objectives are and so forth. Mr. Abendschein: You're absolutely right. Council Member Kniss: If I'm not in the right direction then ... What people are asking us now is, "How are you setting the rates?" Someone said, "Here's what Mountain View anticipates." What is your limit? What are you telling people they can use or not use? What are you telling them about if they use more water, it's going to cost them more? We need to be very exact when we are explaining to the public this very scarce resource becoming scarcer unless the Niño does hit, which certainly one hopes will. This may be a long term and really important resource that we have to deal with. Molly Stump, City Attorney: Jon, perhaps I can wade in a little bit? Mr. Abendschein: Please do, yes. Ms. Stump: Molly Stump, City Attorney. Thanks for the question. There's been a fair amount of confusion about this, since the Court of Appeal issued the San Juan Capistrano decision. As you know, Proposition 218 has some significant, substantive requirements in it. One of them is that when a local agency adopts rates to assess property-related fees or charges that those fees need to be based on the cost of providing service to those payers. Although the language of Prop 218 says the cost needs to be proportional to the service to the parcel, courts have said it's legitimate for agencies to group customers into similarly situated clusters and to figure out the cost of serving based on those groupings. It's very common, state of the art, to put residential customers together, commercial customers and then perhaps agricultural or industrial. We do that. The court in Southern California Attachment B MINUTES Page 4 of 28 Finance Committee Special Meeting Minutes 6/16/2015 looked at one rating agency's decisions to create a tiered rate structure. San Juan Capistrano had four tiers in their residential rates. They were very steep tiers. Every rating agency does this different. Palo Alto has two tiers, and they're relatively close together. The court found that San Juan Capistrano did not have evidence that their rate structure was supported by the cost of providing service to the people in those various tiers. Our situation is different. The Utilities Department has worked with Raftelis, and they have developed a methodology that measures the usage including the base usage and also what's called the peaking factor. This is something that the utility has to design for, the regular usage and then usage that will rise up and peak typically on very hot days in the summer. There's an expert methodology for assessing what it costs to build for that peaking capacity and then allocating that to the customers that generate those costs. When the new decision came down, there have been several on tiered rates. This is one of several. We took that opportunity to look at the guidance from this panel of the Court of Appeal and go back to the expert and say, "This is the methodology that you've recommended before, that you believe allows us to charge people based on the cost of serving them. In light of the court's newest comments, are we still good?" They said, "Yes. The methodology is fundamentally sound." They did update it and recommend some minor adjustments which, if I'm correct, had the effect of bringing our tiers a little closer together. Because of those changes, the City needed to put the rate increases that are needed to fund the full cost of the system in place in two steps. This is the second step. To answer your question, unfortunately the media reporting on the San Juan Capistrano decision was very high level. "Court says tiered rates are unconstitutional." What they actually said was this particular jurisdiction's rates did not meet the constitutional standard. If court challenges are filed in other jurisdictions, it's going to depend on the work that those jurisdictions have done to establish what is the cost of serving, what is their rate structure and what kind of evidentiary basis do they have to support it. We feel we're in a very different position, and these tiered rates are well supported by our expert. Does that help? Council Member Kniss: That's very reassuring. It'll be very reassuring to the public. Those of us will accept them, but it's about what we're saying to the public as to why this is happening when the San Juan Capistrano case was so visible and so well-discussed. Thank you. Mr. Abendschein: Slide 5 illustrates why we had to break the rate increase into two parts. As Molly said, the adjustments that the consultant recommended we make to the methodology flattened the tiers slightly. We had sent out a Prop 218 notice with rates at this level. If we were to have a 12 percent increase and incorporate the methodology changes, it would have resulted in tiered rates at this level which means the Tier 1 rate would have Attachment B MINUTES Page 5 of 28 Finance Committee Special Meeting Minutes 6/16/2015 been above what we sent out in the Prop 218 notice. What we did was we said, "We'll have an eight percent increase instead." As you can see, that sets the Tier 1 rate for July 1st at the Prop 218 notice level. We're going to have a second Prop 218 notice to do an additional 4 percent to get us to the total 12. We don't like to send out two Prop 218 notices, but fortunately we were in the process of developing Drought Surcharges and we knew we would have to have a second Prop 218 notice of the Drought Surcharges anyway, so we were able to combine those two efforts into one Prop 218 notice. That's ready to go out assuming you recommend approval tonight. Slide 6 and Slide 7 are for reference. If you'd like to speak to any of those slides, I can put them back up for the public. I'm not going to go into them in-depth; they're covered in the report. Council Member Kniss: One more question on this, if I might. If I'm looking at my Tier 2 rates... Chair Schmid: Can you read what slide? Council Member Kniss: I'm on Slide 6. I'm looking at the tiered rates. They go up, but it's not a great deal. It's not a huge amount. When I get my water bill, and that is the big discussion lately. "Have you gotten your water bill? What did your water bill look like?" What am I going to see? What is the average water bill? I don't actually know. Mr. Abendschein: It's in the ballpark of 12 to 14 Centum Cubic-feet (CCF) annually. Valerie Fong, Utilities Director: Slide 10. Council Member Kniss: Am I jumping ahead of you? Ms. Fong: Yeah. Council Member Kniss: Why don't you hold on for a minute and then we'll see. Mr. Abendschein: These are the billing (crosstalk) Drought Surcharges. Ms. Fong: This is the Drought Surcharge (crosstalk). Mr. Abendschein: I have a backup slide. If you're able to turn and take a look, I can show it to you. If you want to open your report to Page 5. Council Member Kniss: Packet Page 5? Attachment B MINUTES Page 6 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Lalo Perez, Administrative Services Director and Chief Financial Officer: Or Page 5 of the Report? Mr. Abendschein: Page 5 of the report itself. Mr. Perez: Packet Page 7. Mr. Abendschein: Packet Page 7. It looks like the table is cut off across pages unfortunately. It's at the very bottom of Page 5, the top of Page 6, Report Page 5 and 6. The annual median, I'm sorry, is 9 CCF. The summer median is 14 CCF. The winter median is 7 CCF. The impact of the 4 percent increase is between $2 and $4 to the average residential bill, or the median residential bill that is. That's in addition to what you'd see for the July 1, 2015 8 percent rate increase which is unfortunately not in your report. If you want to look at the backup slide that I've put up here, you can see that as well. Chair Schmid: If I could ask a question there. Tier 1 and Tier 2 are separated at 6 CCF. Mr. Abendschein: That's right. Chair Schmid: Yet, you say here that your median is—you have a winter median, an annual median, a summer median. How does that fit into Tiers 1 and 2? Mr. Abendschein: I'm going to have to take a look at the winter median again, because last time I checked it was at 6. I don't know why our table is showing 7 here. We checked that over with the consultant as well. Chair Schmid: At six. Mr. Abendschein: Six is the breakpoint, if you think of that as the winter median ... Chair Schmid: If the annual median is nine, I would assume that in six you have 20-25 percent of the residents. Mr. Abendschein: Six CCF, for most residential customers it represents their year-round usage, their base load usage. It's their winter usage and it's the portion of the system that gets used year-round. Anything above six generally is seasonal. Chair Schmid: Everybody is in both Tiers 1 and 2. Attachment B MINUTES Page 7 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Mr. Abendschein: Correct. It's actually not everybody. We do have a significant subset of customers who do stay within six. Is this helpful as far as the bill impacts of the normal year rate increases? This doesn't address the bill impacts of the Drought Surcharges, which we'll get to in a moment. If there are no more questions on that, I'm happy to move onto the Drought Surcharges. This is Slide 8. This is a challenging part of this proposal. We would have preferred to have presented the Drought Surcharges entirely separately from the normal year four percent rate increase, but we weren't able to do that this year. The Drought Surcharges are different from normal year rate increases. We present them differently. They're only intended to recover lost revenue due to lower sales during a drought. They're not intended to raise additional revenue. The four percent and the eight percent increases are intended to raise additional revenue. Council Member Kniss: If I might. That is what has people so puzzled. Why is it that you're charging me more when I'm using less? Mr. Abendschein: That's right. It's a good question and it goes to the issue that you're paying for the transportation rather than the water itself. You're paying for the pipes and the maintenance and all of those things that we have to do every year, rather than the water itself. Council Member Filseth: Is it as simple as the fixed costs being amortized over a smaller volume of water or is there more than that? Mr. Abendschein: That's exactly it. That's all there is. Council Member Filseth: That's all there is. There's nothing more. Mr. Abendschein: That's all there is to it. We're proposing rate schedules to deal with three different levels of water use reductions. We have a 10 and 15 percent level, a 20 percent and a 25 percent level. You might ask why the 10 and 15 percent level are the same. It has to do with the way water is allocated during a drought under our contract with the San Francisco Public Utilities Commission (SFPUC) We have a high—I'm sorry, what's the...The supply guarantee, that's the word I’m looking for. We have a higher supply guarantee relative to our usage, contractual supply guarantee with the SFPUC relative to our normal year usage than other agencies do. That benefits us during a drought. We end up seeing very similar water use reduction requirements under 10 percent and 15 percent system-wide Hetch Hetchy water use reductions. That's why those are the same. We want these surcharges to be on the rate schedules all the time, updated every time we update the regular rate schedules. When we get into a drought, they could be activated by separate Council action. I'm moving on to Slide 9 here. Because of the Governor's requested mandate that we cut water use Attachment B MINUTES Page 8 of 28 Finance Committee Special Meeting Minutes 6/16/2015 24 percent from calendar year 2013, we're recommending activation of the surcharges at the 20 percent reduction level. You might ask why 20 percent instead of 25 percent. The answer is these are calculated as a reduction from a normal year, a 20 percent reduction from a normal year. Calendar year 2013 was an above average year. It was very dry. We sold a lot more water than we normally would have sold. Activating them at the 20 percent level, which is a little bit confusing, recovers exactly the revenue that we need to recover. Because we would be activating these in September rather than July, we would be drawing down reserves to recover some of the lost revenue. We're comfortable that we can accommodate that within the financial forecast. Moving on to Slide 10, unless there are any questions on Slides 8 or 9. When we look at the bill impacts of Drought Surcharges, you have to think about three different customers. When we activate these Drought Surcharges, there are three different types of customers you need to think about. There are customers who are not conserving and then choose to start conserving. Those customers will see a bill reduction, even with the Drought Surcharges. You see customers who have not conserved and choose to continue not to conserve. Those customers will see a bill increase. There are customers who are already conserving, and we have a lot of those. Those customers will see an increase in their bills. This is where the public communication gets very complicated. Essentially these customers are going to be doing better than customers who are not conserving, but they're not going to be doing as well as they were before. Council Member Filseth: I have a question. I'm sure this is fiendishly complicated and that's why (inaudible). Did you guys look at the possibility of somehow taking that into account and normalizing it for cubic feet per head in household? I don't know; something like that. Just for that case of the person who says, "Now wait a second. I've had three bricks in my toilet, and I only shower every other day. Meanwhile, my neighbor with the swimming pool, with the two swimming pools, is going to get a rate cut, and I'm going to have to pay more." I assume there's no simple way around that. Mr. Abendschein: There isn't a simple way, but we did take that into account. When we did the Drought Rate Design Guidelines, we said we're going to ask for lower levels of conservation from smaller users. That's built into these Rate Schedules. You can see it's exhibited in the Drought Surcharges as well. The surcharge for Tier 1 is a lot lower than the surcharge for Tier 2. Council Member Filseth: That's a very important message. If you're already conserving, you're being asked to do less than somebody who is not. I hope that comes out in the communications. Attachment B MINUTES Page 9 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Mr. Abendschein: Absolutely. We have examples here. Our Communications Manager couldn't be here tonight, but we have some examples of communication pieces that we've been developing. We're happy to share that with you. Council Member Kniss: That you're going to put in the bill? Mr. Abendschein: Yeah. We'll have it available online as well. That's it. We're preparing a communications plan. We have some examples; this isn't all the collateral that we're going to have put together. As part of the communications, one of the things that we do hear from customers is that there isn't any economic incentive right now for people to conserve. There are people who feel like they're doing their part, but others have not faced an economic incentive. They may be paying a higher bill, but they may be glad to see those surcharges in place. Council Member Filseth: From a macro level, it's hard to think that anybody's going to be surprised to see water getting more expensive, given the context of everything we've heard in all this (inaudible). Mr. Abendschein: No, I don't think so. Council Member Filseth: I wanted to ask another question. The way that I read this, the Drought Surcharge and the rate increases don't completely cover the cost, and we're going to make up some of that from reserves. Mr. Abendschein: That's correct. Council Member Filseth: Why would we not increase it so it covers (inaudible) reserves? Mr. Abendschein: This year it's a practicality. We're adopting the surcharges starting September 1st. We want them to be at a level where we're only going to be recovering our revenues if the drought extends on year after year after year. We would have had to try and set them above our long-term revenue recovery level to make up for those two months. It's perfectly reasonable, we thought, to take a little out of reserves. Ms. Fong: The reserves are covering a couple of high-use months, what would normally be high water use months because we're not starting the surcharge until September 1. Mr. Perez: You're expecting it to cover the minimum anyway, right? Mr. Abendschein: Yes. Attachment B MINUTES Page 10 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Chair Schmid: I wondered if before we got into detailed questions, it might be good to hear from Chair Foster to share where the UAC was on this. Jonathan Foster, Utilities Advisory Commission Chair: I'll just say a couple of things. Happy to answer any questions that arise. The UAC has looked at Water Rates over an extended period of time. It is a subject that keeps coming back unfortunately. I would say the UAC, all of us, would like to do anything we can to avoid rate increases in general. The reality of life here is we're getting hit with a double whammy. We've got the reality of the increasing costs coming to us from the San Francisco PUC, leading to the underlying rate increases, and then the drought mandates as well. None of us like to do this. We were, for example, very pleased that last year we were able to avoid rate increases in any of our utilities. Obviously this is not the year with respect to the Water Utility. We certainly looked at it; we asked the kind of questions you're asking, and then unanimously endorsed the Staff recommendation. It's painful, but we think it is the right choice. To the point for the conserving customers, they will be largely shielded from the Drought Surcharge increases. Chair Schmid: Were there any particular issues that you spent time on, going back and forth? Mr. Foster: To be honest, we went through it in the detail of the underlying rate increase, the drought increase. I do not recall anyone saying—our heads were getting around it. It is complex, but I do not recall anybody saying we ought to do it a different way. At the end of the day after you've absorbed what is being recommended here, it did appear to us that it was the best approach possible. Nobody on the UAC said, "Aha! Here's a better way to do it." Chair Schmid: That's important given the fact that, as you say, you've been doing this for years. Mr. Foster: We have. We would love to come up with a better approach, but we couldn't. Chair Schmid: If there are questions about the UAC. Herb Borock: Thank you, Chair Schmid. I have two concerns about whether these rates are proper under Proposition 218. The first has to do with the separation of the potable water service being proposed for these rates and the recycled water service that the City's currently using for some irrigation and that a couple of private companies are using and then selling for a profit to others. The court decision discussed this in the factual context of capital expenses for recycling. I believe that it applies whether there isn't any Attachment B MINUTES Page 11 of 28 Finance Committee Special Meeting Minutes 6/16/2015 additional expenses on a recycling program or whether there are. The City has both factual situations. First, let me read what the court decided. It said, "The trial court assumed that providing recycled water is a fundamentally different kind of service from providing traditional potable water. We think not. When each kind of water is provided by a single local agency that provides water to different kinds of users, some of whom can make use of recycled water, for example cities irrigating parkland, while others such as private residences can only make use of traditional potable water, providing each kind of water is providing the same service. Both are getting water that meets their needs. Non-potable water for some customers frees up potable water for others. Since water service is already immediately available to all customers of city water, there is no contravention of Subdivision (b)(4) in including charges to construct and provide recycled water to some customers." In fact, that's what we do for the Capital Improvement Programs that we have for considering for future recycled program. It's in the water fund Budget, and it comes out, those expenses, in these rates. We are also currently providing recycled water separately as if it is a separate service. What that means is that those using that service, such as the City irrigating the Golf Course or Greer Park or some private company getting it, are not paying their share of the water service fixed expense for the potable water. That doesn't comply with Prop 18. It is one water service. The second concern I have is that you seem to be trying to do three different things with these Drought Surcharges. Under Proposition 218, the fees are charges imposed on a parcel shall not exceed the proportional cost of the service attributable to the parcel. What we're also doing is something that the court said not to do, which is to try and figure out your rates by saying, "We have to get this much money," and then try and have a rate structure that does that. The third thing is we're talking about conservation. There's nothing in 218 about that. In fact, the court case rejected the argument made by the City in this case and that I was making myself earlier that the constitutional requirement for conservation could be balanced with Prop 218. They went through the history of that part of the constitution. They said, "No." We are saying, on the one hand, we need to charge a Drought Surcharge because people are not going to be using as much water and, therefore, aren't incurring the fixed expenses. If you do use exactly the same amount as you did before, we're going to give you a higher surcharge. You're going to be paying a bigger surcharge, whereas, before if you used that amount you were covering the fixed charges. We're also saying to others that we're going to motivate you to use less and if everyone uses less, maybe those surcharges wouldn't be high enough. I have some problem with how this surcharge complies with Prop 218 and how we're trying to sell it to the ratepayers in terms of conservation when that is not how you go about setting rates Attachment B MINUTES Page 12 of 28 Finance Committee Special Meeting Minutes 6/16/2015 including with the decision in this court case that conservation is not something to do. Thank you. Council Member Kniss: Mine, as I said, is a wind back question. I remember when we began this a couple of years ago. The discussion was about where were we in the drought and where were we as far as Hetch Hetchy. As we look toward the future, what do we have, what have we contracted for and how long can we go on in this drought? Is it year 4 or year 5? Mr. Abendschein: It depends on where you look at it. A lot of people would say year 4. One of the ways to look at this is how many years do we have left in storage. We have 3 1/2 years of storage. We would expect to be able to use that for substantially longer because of conservation measures. Council Member Kniss: Maybe we can stretch it out 4 1/2 or 5 years? Mr. Abendschein: If not longer. Council Member Kniss: Herb's point is interesting. The more our group conserves water, literally long term, we will have to charge more. It's just what you said earlier. There's a fixed cost and if you're not using enough, then long term you will get, I would think, penalized. There must be a better word to use than that. The less you use, the more it is going to cost long term. Mr. Abendschein: I'll say two things about it. Number one, when we as a City use less, it frees up more capacity for other users in the Bay Area. If those other cities build out, they're going to be taking on more of the cost of the Hetch Hetchy water system. We actually will save some money. If we as a City... Council Member Kniss: I hadn't thought of that. That's even taking it a step further than I certainly would have thought. Mr. Abendschein: You have to look at those long-term trends when you're thinking about this. In the short term, yes, when we cut usage by quite a bit, we end up having to add surcharges back to recover our fixed costs. Council Member Filseth: Your rate goes up, but your bill doesn't go up (crosstalk). Mr. Abendschein: Right. That's another key—yeah. The other thing I'd say though is that we've had some challenges recently with communicating these things. People see themselves as conserving either through water Attachment B MINUTES Page 13 of 28 Finance Committee Special Meeting Minutes 6/16/2015 efficiency or because of the drought, then their bills continue to go up. They believe that that's happening because they conserved. The problem is we're asking them to conserve at the same time as our costs are going up. Even if they hadn't conserved, their bills would have gone up. Trying to communicate that is something we have to also work on. Council Member Kniss: One other thing. I don't remember how much of our waste water goes to Mountain View. What is it roughly? Ms. Fong: Our recycled water? Council Member Kniss: Yeah, recycled. Mr. Abendschein: The vast majority. They paid to build that recycled water pipeline. Council Member Kniss: One of the things Herb talked about is people who are getting the recycled water, is there an increase in their cost? Mr. Abendschein: We have very few recycled water customers. It's almost entirely City usage. Council Member Kniss: That's what I meant. It's Mountain View, so do we charge them any more as our rates are going up for the infrastructure? It's their infrastructure I realize. Mr. Abendschein: We have very few costs associated with recycled water. We've recovered those directly from the customers who are using the recycled water. When we eventually build out our recycled water system, we're going to have to give a lot of thought to our Recycled Water Rates. We don't have recycled... Chair Schmid: I think Herb was making the point that water itself is a value, and that there's no difference to the user whether it's recycled or Hetch Hetchy. Shouldn't they be charged the same rates? Including our Recreation Department. Mr. Abendschein: Given that these costs are not associated with the Water Utility, we don't... Ms. Fong: You can't double recover the same water. Ms. Stump: If I may, just on that point. The San Juan Capistrano discussion is very specific to what was going on in that jurisdiction. It's difficult to generalize. Again, very fact specific these questions. What was happening there is that they had a recycled water system that was available Attachment B MINUTES Page 14 of 28 Finance Committee Special Meeting Minutes 6/16/2015 to some customers and not to others. Some customers who didn't receive recycled water said that system was not a cost of serving them. The Court said in that particular case, because in that system the provision of recycled water to one group of customers freed up additional potable water that was provided to others, the constitutional requirement was met. The court was looking at some very specific language in Prop 218 that said that Cost of Service only can include facilities that are immediately available to the user. This was intended to prevent charging for when you don't have a hook-up at all, when you're not on the system. The court said that was not intended in this particular situation. It did support some flexibility for development of infrastructure and charging that to the rate base when it benefits all. Council Member Kniss: If I could just push on it a little more. We know that there are a number of wells in the City. How are we addressing water use from the wells? Or aren't we? Ms. Fong: What we've been informed by the Santa Clara Valley Water District is there are about 200 wells in the City. The Santa Clara Valley Water District charges pump fees to those well owners who pump. Groundwater here is managed by the Santa Clara Valley Water District. Chair Schmid: Let me raise a couple of issues. As came out in the discussion, the messaging is complicated and how you use words around it. The Drought Surcharge, people associate that with not maintaining the fixed revenue, but rather we need to cut back and this is a Drought Surcharge. Maybe using a different term for that would make the messaging clearer. We have to pay for the Hetch Hetchy rebuild for seismic safety. We have to cover what we're losing. Council Member Filseth: Calling it a Drought Surcharge is a really simple message. It's a drought; water costs more. Everybody's going to get that. Although, the mechanics are more complex. Ms. Fong: Jon, you're going to correct me if I’m wrong here. The fixed costs that we're covering are our own, not SFPUC's. The SFPUC costs are recovered in the SFPUC rates. For us, it isn't about recovering Hetch Hetchy costs; it's about recovering our own distribution costs. Chair Schmid: Our own distribution costs are 25 percent of the SFPUC number. Mr. Abendschein: About 50 percent. Half of our costs are distribution. In the total rate, about half the costs are distribution related; half are Hetch Hetchy system related. Attachment B MINUTES Page 15 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Chair Schmid: I guess I saw a different number. Council Member Filseth: There's been a lot of publicity in the last couple of years about seismic upgrades to Hetch and Hetchy and the costs of those. Mr. Abendschein: Maybe where the confusion is coming is that most of the increase in our rates, almost all the increase in our rates, is related to the Hetch Hetchy upgrade. That may be where that's coming from. Chair Schmid: I'm concerned about the next step. The State and the PUC have said there might be fines associated with not meeting the targets that have been handed out. That is a drought penalty, and the message there is if we don't meet the 25 percent, we will be fined substantial amounts. That's a clear message, but we haven't got that yet. To use up the drought message on something that is not this mandated fine might bind us when the squeeze comes. Mr. Abendschein: The squeeze is on already. From June 1st until next February we will be measured against that 24 percent, and we may be fined. (crosstalk) Chair Schmid: That's what I’m talking about. We haven't had a fine yet. Ms. Fong: Correct. What the State will look at, the Water Resources Control Board, is whether or not we did a bona fide effort to try to achieve the reductions that were assigned to us. We've been aggressive in everything we've been doing including our rates. Beyond all that, all of our programs, all of our messaging, our enforcement of the two days per week watering, we've been very much out in front of a lot of other agencies. That will weigh in if we don't hit the 24. Our customers have been just amazing, and we're trying to be optimistic that we will hit the 24 percent target. If we don't, the State will look at what we've done. Chair Schmid: I was struck by the Sunday Chronicle article where the San Francisco PUC, when the Governor cut back water allocations, said if you had a claim by 1904 you were grandfathered in and the PUC has a 1902. They then interviewed the head of the PUC who said, "We're going to fix that in the summer and that date will no longer be protective." I don't want to be a pessimist, but I assume that there will be a ruling in the next couple of months saying that Hetch Hetchy water is not protected. That was the clear implication (inaudible). Ms. Fong: These legal actions—maybe Molly might know a little bit more. Maybe it's so fresh she hasn't had a chance to look into it yet—are going to Attachment B MINUTES Page 16 of 28 Finance Committee Special Meeting Minutes 6/16/2015 be ongoing. That's for certain. I wouldn't want to speculate on what's going to happen there at this point. Chair Schmid: That's not what we're talking about tonight. It is out there in terms of the messaging, that we've got to be prepared for the next steps. One other thing that flows from that is the Plan Bay Area. Does the City have an attitude toward the impact of the drought on planning for the future of the Bay Area and having that as a critical input to how fast California grows, how big California can be, how many new ... Mr. Abendschein: We probably want to have the Planning Director weigh in on regional planning issues. Ms. Fong: Exactly. We're probably not the right folks to answer that question. Mr. Abendschein: We know what our water allocations are. We know what our water rights are. We know how that fits into our development. Regionally, I'm not sure we're prepared to comment on that. Council Member Filseth: You're asking the question of what's the relationship between water consumption and population growth. I assume Plan Bay Area is like, "We don't worry about that." Ms. Fong: I don't know. Mr. Abendschein: I think they do. Chair Schmid: The Santa Clara Valley Water District has announced that they will participate in the Plan Bay Area discussions. Ms. Fong: I don't know that we're necessarily tied into that right now. For every development that is brought forward, we do a water supply assurance study. We are part of the development impact assessment. Chair Schmid: As we go down the drought road though, that might be an issue that comes out. Ms. Fong: That gets considered. Chair Schmid: Plan Bay Area is especially significant because they start the process this summer. The question is will water be a part of the discussions. It would be helpful to have it there. One last question, you say that we will draw a little bit on reserves. I did not see any financial numbers in here. What are the reserves we have, and how much would be drawn? Attachment B MINUTES Page 17 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Mr. Abendschein: It would take me a minute or two to bring up the total reserves numbers. Right now, they're well above the minimum. The $600,000 doesn't take us all that close to the minimum. In fact, we have a fair amount of reserves that are set aside for Rate Stabilization and Capital Improvement Reserves as we finish up this water system master planning study in case there are some additional projects that we have to fund as a result of that. We're comfortable with our reserves right now. What it may result in is a slight acceleration of future rate increases, because we don't have as much available for Rate Stabilization. We'll be very comfortable with our Operational Reserves. Chair Schmid: Given we're the Finance Committee, it would be nice if, when it goes to the Council, you could have a paragraph on the amount of the reserves. Ms. Fong: Okay. Mr. Abendschein: Not a problem. Chair Schmid: Are we ready for a Motion. Council Member Kniss: I think we are. Do you want me to read the whole thing or would you ... I'm on Page 3 and under the recommendation: “That's to adopt a Resolution, Attachment A, amending rate schedules and so forth, and adopt a Resolution, Attachment C, activating the Drought Surcharges”—I guess we're staying with that word—“at the 20 percent reduction level effective in September.” Is there a second? Chair Schmid: I will second that. MOTION: Council Member Kniss moved, seconded by Chair Schmid to recommend the City Council: 1. Adopt a Resolution amending rate schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to add Drought Surcharges and increase rates four percent effective September 1, 2015; and 2. Adopt a Resolution activating the Drought Surcharges at the 20 percent reduced level effective September 1, 2015. Chair Schmid: As the UAC said, we're coming out of a period of time where we've had very low utility increases. We have seen substantial increases on Attachment B MINUTES Page 18 of 28 Finance Committee Special Meeting Minutes 6/16/2015 the wastewater and the refuse and certainly on this. Now we're asking for three separate increases, an 8, a 4, and a 20 percent surcharge. It is important and significant and likely to have some questions coming in on that. Appreciate very much the background material. Council Member Kniss: Did we vote? Chair Schmid: No. Just putting a word in. The communications is important. It's good to see you preparing the way for that. We'll get some public input when these rate bills start coming in. We're aiming for a discussion of the surcharge in August. There'll be a public ... Mr. Abendschein: On August 17th, there'll be a public hearing. Chair Schmid: All in favor? That passes three to nothing. MOTION PASSED: 3-0, Scharff absent 2. Amendment of Municipal Code Section 2.28.080 Regarding City Council Budget and Table of Organization Amendment Approvals. Walter Rossmann, Office of Management and Budget Director: Good evening, Walter Rossmann, Budget Director. Just a short presentation to summarize the item in front of you. As you know, we just adopted the Budget yesterday. Thank you for your support during the last few weeks to get the Budget through Finance Committee. Then what we do is once we adopt the Budget, we have a midyear Budget review which it comes to you usually in February. We make some major adjustments to some funds as it may be in order to update you where we stand after six months of the Budget being passed, how much expenditure, how the revenues are coming in. Throughout the year, we do have Budget Amendment Ordinances. They could be to any kind of Fund, the General Fund, Special Revenue Funds or Enterprise Funds. The reasons are primarily unexpected events. It could be a housing development which gets negotiated by the Planning Department. It could be a grant we receive; we want to recognize those funds and we want to expend those the same fiscal year. It could be something which we sometimes forget to put in the Budget, something we didn't realize we needed to do. The way we do this currently is through a Budget Amendment Ordinance. That means that we produce a separate document attached to the City Manager Report (CMR). Then this Ordinance gets routed after it gets produced. If it reflects the same information in the actual CMR, it's duplicative work. Then what we do is, once the Council approves the Ordinance, it gets routed for signature and it gets filed. What other cities do, and that's what I'm here proposing to you today, instead of adopting a change to the Budget and to the Table of Organization, which Attachment B MINUTES Page 19 of 28 Finance Committee Special Meeting Minutes 6/16/2015 reflects authorized positions, we do it by Ordinance or by Motion, which doesn't mean any change from the Council's perspective, your vote. However, it does make a change for us at the Staff level that we have to produce one document less and we don't have to route it for signatures. I request your support for this item. Thank you. Chair Schmid: The goal is just efficiency, of being able to operate and having top-level time available for other things than doing duplicate reports. Council Member Kniss: You're skipping a step that expedites it. Mr. Rossmann: That's correct. We are skipping a step; it's efficiency. It's taking City Staff time towards more higher level work. Council Member Filseth: Any reason not to do this? Any downside? Mr. Rossmann: Not from my side. I checked with the Attorney's Office; they're always in support for that. The cities who do this, the City of Santa Monica, the City of San Jose, the City of San Diego. They do this type of work by Motion. Herb Borock: Thank you. I oppose this proposal. As the Staff Report indicates, you'll be saving a trivial amount of Staff time. In exchange, making it harder to find out what the historical record is of what City actions are. All that's going to be in the record, if you find the right Action Minutes or look at the right videotape, then you'll know this action has been taken, as opposed to having a numbered Ordinance that's kept as historical record that are easily accessible for the public. Sometimes I get the feeling in bureaucracies that there are two tendencies which I believe are bad. The first is that when an action is taken, such as the Council voting on it, then that's the end of the story and you should forget about what's happened. In government, the responsibility to the public is keeping an easily accessible historical record of what you've done. The second tendency in some bureaucracies is if somebody comes up and asks for something, some document, then the assumption is they must have done something wrong as opposed to someone just wanting information. If you make things harder to find, you have that attitude, these are one way. Those of you who haven't been on the Council for the past 15 years have not noticed this change until you come to some Agenda item and ask the City Staff for the history of what's been going. Unless they went to Bob Moss' house and looked in his file cabinets, they wouldn't know about the single-story overlay. Since you've made the change in minutes, you've not had the Action Minutes on your Agenda for approval. What is someone supposed to do? Go to the Clerk's website and look for a specific one if it's been posted yet and it's not signed by anyone as being official. This is part of the same pattern. In Attachment B MINUTES Page 20 of 28 Finance Committee Special Meeting Minutes 6/16/2015 terms of calling this a trivial amount of Staff hours saved, I'll give you an example of some positions that have not been filled for a period of time in the organization. The two Assistant City Manager positions were approved in the Budget last year. It went on for about ten months before there were appointments made. I believe the only reason they were made when they were made was because it was just before the new Budget coming out. Can you imagine someone coming to you at your first Budget hearing with those positions both being vacant and saying why are these two even in the Budget? Look at how much money we can save. We saved it all year already. Other examples. I think it's been about five years since we've had a permanent Assistant Chief of Police, yet it's in the Budget. One of the two Captains has been serving as an Acting Assistant Chief of Police. A position in the Planning Department, in advanced planning which now is called long range planning, was vacant for a long time because the Director was not given the authority to fill the position even though it was in the Budget and authorized by the Council. That's just examples. It's throughout the organization. To come in here and say, "It's an hour of time we're going to save," it doesn't make sense that that's even the reason why it's being done. It's one more step in making it harder to find out what the Council is doing. Not just for the public but for future Council Members. The only way you can have a historical record is if there is a written record that's easily accessible and a Staff that is able to access that history. I would suggest that you reject this proposal. Council Member Kniss: I'd be interested in Walter's response to Herb's comments. Chair Schmid: Let me make a point. I was going to bring up the same thing. I can recall being concerned about the parking district and the parking rules. I went to the City website and put in—someone had told me that the original thing had been done in 1998 or something. I entered that into the website. It took me back to a couple of Ordinances that were very clearly decisions by the Council about the parking district and about traffic that became very important in my thinking. The question is if we shift to, and we give some examples here. Mr. Rossmann: Attachment C on Packet Page 58. Chair Schmid: Of shifting from an Ordinance that Google categorizes by title and you end up with that. Would I be able to find it, with the track backwards 5 years, 10 years, 15 years, being good enough to get me to that Page? Attachment B MINUTES Page 21 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Mr. Rossmann: That probably depends on how you search for information. The way I do it, I go to the City Manager Reports and I pull it up through the CMR. What the City Manager Report shows you is the actual transaction right as it's proposed here in Attachment C. The actual financial transaction is included in the recommendation language. The historical record would be the City Manager Report with the recommendation language as approved by the Council. That also becomes the record for the City Clerk's Office. Versus having the same information of the recommendation language and have an Ordinance as well. Lalo Perez, Administrative Services Director and Chief Financial Officer: One of the things that we started recently, Chair Schmid, is also listing the Budget changes or amendments that we made in our quarterly reports. What we could do is expand the data that is there, if that's something that is needed. I'm trying to think out loud with you as to what else we would need. That way there's a chronological listing of all the Budget amendments in our financial reporting that could be looked at. Chair Schmid: Something like that that can become a tracking device; you would know where to go. Mr. Perez: I would guess, given that we don't have the tagging mechanisms in our systems as of yet, that that would be probably an easier search because you can say, "I'm going to look for Fiscal Year 2014, see what Budget changes were made." Chair Schmid: You would have that on an annual basis, quarterly? Mr. Perez: It would be quarterly and then the annual one would have the summary of the year by fund. It would not just be one fund; it would be all funds. You could go look there and we could reference the CMR maybe, because there won't be an Ordinance anymore. We would reference the CMR, and the person that is looking for the infrastructure could get the information. Chair Schmid: You would need a date to do that effectively. Mr. Perez: We could add the date Suzanne Mason, Assistant City Manager: Chair Schmid, Council Members, Suzanne Mason, Assistant City Manager. I do want to share from an administrative perspective our world has changed. The electronic world we're in is very different than when we started with hard record Ordinances. Our search capabilities are open government approach. It's transparent. From my experience in the past, having individual Ordinances sometimes are Attachment B MINUTES Page 22 of 28 Finance Committee Special Meeting Minutes 6/16/2015 not as easily accessible as the Staff Reports in the Council meeting. In our City, we're trying to make everything accessible, but we're also trying to take out manual process where we've implemented electronic approaches to managing data. We're crossing over from one world to another. From a legal perspective, this is an adequate way to record the change. From an electronic perspective, we should be able to find those changes readily. Chair Schmid: I'm just taking it from the perspective of a Council Member, and there's continual change on the Council. People come without that historical experience and background. It took me five years to find some of these things, when you finally get enough searchable information that you can go back and find it. I'm trying to think of how to facilitate that process, whether a new Council Member or a new Member of a Commission or a citizen who is concerned about something can find an easily searchable path to answer the question of where did this come from. Mr. Rossmann: If I may add one more thing. It's actually easier for the recommended process to search information because the Budget Amendment Ordinance number is assigned after the Council adopts the Budget Amendment Ordinance. If you were to know that number, which we currently reference in the report, you couldn't find it online. You'd have to find the title of the CMR. With the process which Lalo is recommending, by listing the title to the CMR which reflects the item, the CMR number immediately creates a link to the website, where we can more easily find the information. The new process will enhance your idea. Chair Schmid: I'll make a suggestion that we—I'm not sure who the right person is to do it—just draw up a page about that issue of online searching for public, Council Members, Commission Members, trying to track and state what you're asking for might improve or help those types of searches, so that we enter this with a clearer notion in mind that what we're trying to do is open up the process and make it more available rather than make it more difficult. Mr. Rossmann: If the Chair agrees with that, we could as a recommendation to the full Council provide a summary of that as part of the Staff Report. Would that work for you? Chair Schmid: Okay. Council Member Kniss: It's such a good conversation. I hear what you're saying, but I've already noticed that I'm missing the minutes. Either we're getting verbatim minutes which take that much to get through or we're just getting Action Minutes which just says this is what you did. We're also going to be missing the discussion of why we did the Budget amendment, if there Attachment B MINUTES Page 23 of 28 Finance Committee Special Meeting Minutes 6/16/2015 is any discussion in our minutes. Maybe Suzanne is right. Maybe all this is going to be electronic and be easily found. It isn't always the case so far. Maybe in the future everything is going to fall into place. Chair Schmid: The minutes are a different issue. That involves the Clerk's Office. Council Member Kniss: They're a different issue but the same issue, because we're talking about history. Chair Schmid: Yeah, about finding things. Council Member Kniss: We're trying to find out what went on and what was said. I don't want to lose any of the history that's in here because we want to be expedient. Council Member Filseth: Herb is basically asking a question, if I understand it right, about transparency. It's a very low level transparency issue, but it's finite. I was waiting for you to suggest implementing the recommendation here and implementing the process that Lalo is suggesting be one thing. Is that where you were going? Chair Schmid: Yeah. Mr. Rossmann: We can do that. That will be fine. We could provide you a sample as part of the next Staff Report, which will document that for you. Council Member Filseth: Am I allowed to ask members of the public what they think? Chair Schmid: Sure. Council Member Filseth: Herb, what do you think? I was talking about proceeding with this, but increasing the transparency. Mr. Borock: You can start by removing the robot exclusion from the City's website so the internet archive can again make available both what it has, crawl through and did have when the current contractor started working for the City, Civica. I use that and I made the mistake of accessing the City's address rather than the cached one that was at the internet archive. Somebody, I assumed it was the technologist at the City but it could have been the contractor, decided in response to getting requests for addresses that no longer were being serviced, they put a robot's exclusion and that didn't just stop the internet archive from archiving current and future, but also stopped access to everything prior. Make stuff available on the internet archive, we can find it. We don't have access to the same computer Attachment B MINUTES Page 24 of 28 Finance Committee Special Meeting Minutes 6/16/2015 systems you do when you go search for things. That's what I would suggest. If you want to be transparent and figure out a way, happy to work with Information Technology to see what is the easiest way and what kind of help you may need. I would support funding for it to make those prior internet addresses that the City had used in various formats to access material in the past. They're not doing it now. The archive website is still available if you know how to access it, but it's not being supported. That still doesn't go back and cover all the things that were on the way-back machine, the internet archive. That's a level of transparency. Chair Schmid: Yeah, I think that is a broader issue. Mr. Borock: Let us see it. There'll be someone who has a business of doing that and is in the business of that. That's many years where that hasn't been available. It was stopped when somebody tried to use it to access a City document. Chair Schmid: You're asking for one particular piece, the Budget Amendment Ordinances (BAO), to be made more efficient. In a way you've opened up an issue. It would be helpful if you could take that piece, the BAO piece, and try and help us sort through what issues arise from this. That might be helpful. Suzanne, it might be helpful from your perspective to take a look at that and see if there's other steps that we could think about. Mr. Perez: In general terms of transparency, I see us improving. One of the things that we've done for example—I don't want to digress from the Agenda item too much—to give you and the public some assurances that we're working on that and that's our target is that we have, for example, OpenGov which we had our proposed Budget available for the community to look at online if they wanted to and look at the historical and do comparisons and trending and download the data. Our salary, there's four years of salary. You can look up any individual that's employed by the City of Palo Alto or has been employed over the four years. In the big picture, we're heading there. Its work in progress, as Suzanne mentioned. Unfortunately with some of the older documents, it's hard because of the way they were archived. They're not searchable, because they're not tagged. Technology is improving, and we're able to get there. It's going to get better. The way I look at is we're working with the people's money, and we want to be transparent about how we manage those funds and how people find it. That was the reason why we went with OpenGov because we wanted people to see the Budget at the lowest possible level. If anything, we're fine with additional transparency. We're trying to find the vehicle to do it in a good efficient manner. Attachment B MINUTES Page 25 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Chair Schmid: We want to help you be more efficient. At the same time, it's raised some very interesting questions. Kim, you might note that the Clerk's Office should be aware of the issue as well, because you are in charge of archives and how they're accessed. Can we make a Motion then? Council Member Kniss: I like the Ordinances, I have to confess. I'm not sure I'm in favor of making this change at this point. I'm not supporting it, but we could send it forth and see what the rest of the Council thinks. They might not have this wonderful deliberation time we've had. Chair Schmid: If we do have a dissent, that is not unanimous and would not go on Consent, but would allow you to write a broader memo and give the context and the benefits of having a different type of searchable archive of these Budget changes. It would be for full Council to make any decision. Council Member Kniss: I have to confess that Herb bringing up the single- story overlay, that we certainly missed some clues on, really troubled me. Why wasn't that pulled up easily? That has nothing to do with your Ordinance. It has to do with why couldn't we find something when we needed it. That's my issue. Council Member Filseth: We're verging in new territory here, which is broader than the Finance Committee. It does deserve more. As I think of it, when I was listening to Council Member Kniss, that's right. We're outside the domain of this group. It's worth a discussion in front of the Council, particularly with the Information Technology (IT) organization involved. What I was envisioning was it would come and there would be this explanation of we proposed to move away from using the Ordinance to track this. Here's what we're going to replace that with that's going to improve accessibility and transparency in this way. That's worth a discussion including more than Finance. Chair Schmid: If you feel comfortable putting that on the Council's Agenda, that's what we're looking for. If you've captured Eric's Motion. Council Member Filseth: I'd rather you made the Motion. You'll get the words (crosstalk) and I won't. Chair Schmid: Let me put down the recommended Motion that the Finance Committee recommends the City Council to amend the Municipal Code which would change the City Council Budget and Table of Organization Amendment approval from Ordinance to Motion. With that will come a description of the consequences for search and transparency of material for future Council Members, the public and Commissioners in the City. Attachment B MINUTES Page 26 of 28 Finance Committee Special Meeting Minutes 6/16/2015 MOTION: Chair Schmid moved, seconded by Council Member Filseth to recommend the City Council amend Municipal Code Section 2.28.080 titled “Amendments after Adoption” which would change the City Council Budget and Table of Organization Amendment approval from an Ordinance to a Motion, with that will come a description of the consequences for a search and availability transparency of material for future Council Members, the public and Commissioners. Council Member Filseth: I hope it's clear that it shouldn't come just as is and say, "Transparency has gone down." There should be ... Chair Schmid: Some description. Mr. Perez: Some examples. Council Member Filseth: What's the replacement? Mr. Perez: We know. Chair Schmid: Any help that you need from the City Manager's Office or the Clerk's Office, you could feel free (inaudible) intern. All in favor of that Motion? All opposed? Council Member Kniss: I'm going to abstain, because I want to hear this full discussion. Anyone else voting? MOTION PASSED: 2-1 Kniss abstain, Scharff absent Chair Schmid: I want to make sure it goes to the Council (crosstalk). Council Member Kniss: It will. Mr. Perez: It would, yes. Council Member Kniss: There are two of you with one abstention. It goes on. Chair Schmid: Greg Scharff has made the point before that you need a negative vote in order to go on the Action Agenda. I want to make sure it gets on the Action Agenda. Ms. Mason: The Committee can recommend, even with a unanimous vote, that it be placed on the Action. That's what the Staff understands. Chair Schmid: Yeah, I think your point is correct. Attachment B MINUTES Page 27 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Mr. Lalo: It's an Action item to us. Council Member Kniss: One of the things you could do, if I might say so, is do a demo for us. Just as interesting, you put it all in writing, do a demo, show us how it changes. Pull it up. Do the ... Mr. Rossmann: Do a dog and pony show. Council Member Kniss: Yeah. It helps to do the dog and pony show. It really does. Future Meetings and Agendas Lalo Perez, Administrative Services Director and Chief Financial Officer: You have your break, as you know, so we do not have a meeting in July. Our next scheduled meeting is August 18th. At that point, we'll be bringing you the third quarter Financial Report, which will include the listing of the Budget Amendment Ordinances (BAO). We're going to bring to you a more expansive City Debt Policy. Currently, we have a City Debt Policy, but it's pretty narrow, pretty simple. As we are talking about expanding the issuance of debt, we believe that it's important and something that the Finance Committee had asked us to. We're finally ready to do that. We'll be bring that to you on August 18th. Currently there's nothing on the Agenda for September 1st. Chair Schmid: You have the pension and retiree. Mr. Perez: Sorry, let me correct myself. We had pension and retiree on September 1st, but City Manager Keene will be absent that day, so we're moving those items to September 15th. We believe that you would probably want to make sure that he's here for that discussion. Suzanne Mason, Assistant City Manager: He wants to be here for that discussion. Mr. Perez: Thank you. He wants to be here for that discussion. We also will have Mr. John Bartel joining us. The Council has found it very useful to have Mr. Bartel share his experience California-wide on these two issues. We're preparing documentation internally. We anticipate being able to meet that date of September 15th with a bit of a caveat that it is the summer break and some of us are gone. We're going to try our best to make sure we have the discussion. Personally I see it that this is the beginning of multiple discussions about this subject obviously. Attachment B MINUTES Page 28 of 28 Finance Committee Special Meeting Minutes 6/16/2015 Chair Schmid: It has been brought up numerous times. It's great to have this well before you get into the Long Term Financial Forecast because it's such an important piece of thinking about our future. Mr. Perez: That's as far as I’m going right now. As we get more Agendas, we'll report on them in August at our first meeting. Council Member Kniss: I missed it. You're moving the pension to the 15th, but what is on the 1st? Mr. Perez: Right now there's nothing else scheduled on the 1st. Council Member Kniss: Right now, the 1st is not scheduled or it is scheduled but nothing's on it? Mr. Perez: Correct. Let's leave it on the calendar. Council Member Kniss: Cancel if necessary. Mr. Perez: In August, we'll cancel if necessary unless there's a scheduling conflict that the committee is aware of. Chair Schmid: After May, we've earned a couple of weeks off. Council Member Kniss: I am gone September 1st, if that (crosstalk). Mr. Perez: You are? That helps. Council Member Kniss: That's why I was pushing on that. Mr. Perez: That's another reason why to move it to the 15th. Chair Schmid: We are looking forward to summer break. Mr. Perez: Thank you and enjoy your break. Chair Schmid: Thank you. Meeting is closed. ADJOURNMENT: Meeting was adjourned at 7:37 P.M. Attachment B NOT YET APPROVED 150325 jb 0131328 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Section 2.28.080 (Amendments after Adoption) of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code to __________________ The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 2.28.080 Amendments after Adoption of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code is amended to read as follows: 2.28.080 Amendments after adoption. During the fiscal year, the city manager shall amend the budgetary accounts of the city to reflect the following: (a) Additional Appropriations. By a two‐thirds vote, the council may make additional appropriations of receipts that are in excess of the total estimated receipts and appropriations contained in the adopted budget. (b) Additional Positions. By a majority vote, the council may add positions to the table of organization. (c) Transfer of Appropriations. (1) By a majority vote, the council may transfer part or all of the unencumbered balance of any appropriation from one fund, department, office, or capital project to another; (2) By written authorization, the city manager may direct the redistribution, within any department or office, of the unencumbered balance of appropriations within the departments or offices, provided that he or she shall not make transfers from the classification of utilities purchased for resale to any other object or make transfers between funds or transfers between departments without the affirmative vote of a majority of the council; (3) By written authorization, the city manager may authorize a transfer of appropriation from the unallocated balance of the contingent account to any department, office or capital project. Funds shall not be transferred between the general fund and the enterprise funds, nor between operating and capital funds. (d) Transfer of Positions. By written authorization, the city manager may transfer positions or assign personnel from any department or office under the control of the city manager to another in accordance with Article IV, Section 6(n) of the Charter. (e) Inter‐fund Transactions. In the event that appropriations and equivalent offsetting credits for allocated inter‐fund services or transfers are affected by amendments to appropriations for Deleted: by ordinance Deleted: by ordinance Deleted: by ordinance Attachment C NOT YET APPROVED 150325 jb 0131328 2 direct expenditures or estimated revenue, the city manager may make corresponding adjustments to the inter‐fund accounts so affected. (f) Salaries and Benefits. Amendments to the Employee Classification and Compensation Plan adopted by the council pursuant to Article III, Sections 12, 18 and 21 of the Charter. (g) Prior year Encumbrances. Appropriations that were encumbered by properly executed, but uncompleted, purchase orders or contracts at the close of the previous fiscal year may be carried forward and incorporated with appropriations of the current year. (h) Municipal Fee Schedule. By a majority vote, the council may, by ordinance, add or change fees in the municipal fee schedule. SECTION 2. The City Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the adoption of this ordinance. SECTION 3. This ordinance shall become effective upon the commencement of the thirty‐first day after the date of its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Administrative Services Attachment C FINANCE COMMITTEE TRANSCRIPT Page 1 of 6 Special Meeting Tuesday, September 22, 2015 Chairperson Schmid called the meeting to order at 6:07 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth, Kniss (arrived at 6:09 P.M.), Scharff, Schmid (Chair) Absent: Oral Communications Chair Schmid: I do not have any cards for public comment. Agenda Items 3. Amendment of Municipal Code Section 2.28.080 Regarding City Council Budget and Table of Organization Amendment Approvals. Chair Schmid: Okay. That brings us to Item Number 3 on the agenda. Thank you very much. Item 3 on the agenda, Municipal Code Section 2.28.080. I believe we've had a discussion of this already. Whenever you're ready. Walter Rossmann, Office of Management and Budget Director: Good evening again. Walter Rossmann, budget director. This item recommends that the Council approve budget and Table of Organization amendments by motion versus adoption of an Ordinance. In June, I presented this recommendation to the Finance Committee. After a lively discussion, the Committee approved that the item be heard by the Council as an action item and asked Staff to address the searchability of Council-approved budget amendments. Since the Council's action calendar has been quite heavy this summer and fall, I felt it to be best to come back to the Committee, show you some changes we are proposing and ask you for your full support. I will talk about quickly the background, how we're doing the Budget Amendment Ordinances today. We talked about this a little bit before in Item 1. Recommended changes to the Municipal Code and how these changes will enhance transparency. When a budget change is requested and taken to Council for consideration, Budget Staff authors a Budget Amendment Attachment B TRANSCRIPT Page 2 of 6 Finance Committee Special Meeting Transcript: 9/22/2015 Ordinance. This Ordinance is mostly repetitive except for the budgeted transaction. The Ordinance is attached to the City Manager's Report, as you've seen many times. The example I'm showing here with highlight in yellow on the slide is the Council authorization for funding the residential food scraps program. That part is the only piece of the Budget Amendment Ordinance which is different from the Council report which you saw in March of this year. After Council approves the Budget Amendment Ordinance, the City Clerk's office assigns an Ordinance number and routes the document to six offices for signatures and posts it on their website, which you see on the next slide. The Ordinances are ordered by calendar year and not fiscal year. The budget is obviously handled or administered by fiscal year, and it's mixed in with other Ordinances. This link you see on the website only shows you the direct link to the Ordinance. It does not link you to the actual City Manager's Report. With the recommended process as approved by the Committee in June—recommended for approval by the Committee in June, Council will approve budget and Table of Organization amendments by motion. With this change, budget amendments are explicitly stated in the recommendation language, so you will see the actual budgeted transaction in the motion. Further, in response to the Committee's concern, Staff created a new section of the City's website. The budget adjustment and monitoring website lists all budget amendments starting with Fiscal Year 2015 and links directly into the applicable City Manager Report. As stated before, with this change the bureaucratic process is streamlined, and Staff can focus on more value-added work. Taking you to a sample of the food scraps program, here's how it would look differently to the Council. In the recommendation language, you would see the actual budgeted transaction listed. Now linking over to the budget adjustment and monitoring website, which (inaudible) is going to do here in a second, you'll see that budget amendments are grouped by fund type. We have General Fund, Enterprise, Special Revenue Funds. That's how we set it up as well as by fiscal year. There we go, great. If you click on any of those links here, like the first one about the grants the Council approved in August, it links directly into the CMR for that item. With this, we recommend that the Council approves a budget and Table of Organization amendment by motion and the Finance Committee supports this action. We are committed to keeping this website up-to-date, as you just saw, which lists all the budget amendments, links to the City Manager's Report and actually makes information much more accessible to the public. This concludes my report. Chair Schmid: Could you go back to the recommendation? The last slide didn't quite show. Mr. Rossmann: It's not a verbatim statement of the recommendation which is here in the CMR. This is just a summary. Attachment B TRANSCRIPT Page 3 of 6 Finance Committee Special Meeting Transcript: 9/22/2015 Chair Schmid: Great. Let's see. I have one public card, Herb Borock. You have three minutes. Herb Borock: Vice Mayor and Chair Schmid and Committee Members, I don't even think you should be discussing this item. The Committee made a decision when this was on your agenda. The decision was a Committee recommendation—a Standing Committee of the Council made a recommendation to the Council. The next step is for Staff to place that on the Council agenda. You noticed that this lowly Staff member takes responsibility for ignoring that responsibility. The City Manager's hands are clean; he's not the one who did it. The Assistant City Manager's hands are clean; he's not the one who did it. The Director of Administrative Services also known as the Chief Financial Officer, his hands are clean; he didn't make the decision to stick this back on your agenda. It's just this lowly employee. He's not an important person. If you agree with me that this was the wrong thing to do, to put it on your agenda again, you can't blame the City Manager, the Assistant City Manager or the Director of Administrative Services. You've already got a fall guy. In regards to the things that Staff is promising to do, they can do all of those things without making any change to the Municipal Code. You can find exactly all the things they said of placing something on a website, you can do. The argument that you have to scroll through all of the Ordinances on the City Clerk's website to find those related to Budget Amendment Ordinances is ridiculous. There is a find function in the edit menu, and that function works even on the copies of Windows that are installed in the library computers that have a message that say they are not genuine versions of Windows. It seems to me that this is related to the first item on your agenda. You talked about transparency and the City Manager's authority regarding the ability to spend money within $85,000. When Gary Baum was City Attorney, he advised the City Manager that contracts with department heads, which were over $85,000, would have to come to the City Council for approval as Ordinances. As soon as he left the City Attorney, the City Manager stopped bringing those to you and simply sent you a memo at the time you were approving the appointment of a department head and saying what the department head's salary was. If there's a contract, you've never seen it. I'm not going to repeat all the arguments that I made since they're in the minutes that you have from the previous meeting, but I'm surprised that this on your agenda again. I'm surprised in the way it's come to you on your agenda when you've already made a decision. I'm surprised that you would tolerate this behavior. Thank you. Chair Schmid: Thank you. Council Members, comments, questions, motions? Attachment B TRANSCRIPT Page 4 of 6 Finance Committee Special Meeting Transcript: 9/22/2015 Council Member Scharff: I move approval. Council Member Kniss: I'll second it. MOTION: Council Member Scharff moved, seconded by Council Member Kniss to recommend the City Council amend Municipal Code Section 2.28.080-“Amendments after Adoption” which would change the City Council Budget and Table of Organization Amendment Approval from an Ordinance to a Motion. Chair Schmid: Okay. Do you want to speak to your motion? Council Member Scharff: Just briefly. I wasn't at that Finance Committee meeting, but I read the Staff Report. I think you guys were responsive to the concerns of the Committee. Even though I wasn't on it, it seems that way to me. I think it's a fine way to streamline things. Chair Schmid: Do you want to speak to your second? Council Member Kniss: No, thank you. Chair Schmid: Eric, comments? Council Member Filseth: What's the best possible reason you can think of not to do this? Council Member Kniss: What'd you say, Eric? What's the best ... Council Member Filseth: Yeah, what's the best possible reason not to do this. Council Member Scharff: That's a great question. I'm going to ask that question in the future. Council Member Filseth: Sorry for the generic question. Mr. Rossmann: At least then we can be prepared the next time, because we may be getting this question. I appreciate that. I don't know. What ... Council Member Filseth: That's probably right. Mr. Rossmann: ... we heard from the Committee is that we wanted to make this searchable. We wanted to make this accessible. That's what we changed with the website. We're probably one of the very few cities in the Bay Area who do this. I've not seen it anywhere else, and I did not scan all of them either. Actually internally what I learned from the accounting Attachment B TRANSCRIPT Page 5 of 6 Finance Committee Special Meeting Transcript: 9/22/2015 division and other departments, they really like it. They suddenly see, "Oh, there's my Budget Amendment Ordinance. It's posted; I know it got approved." We already moved the money anyway by that time. I got a lot of positive responses actually from departments, because it's easier for them to see the information and obviously to the public, because they know exactly what we're doing and each item, they can track. You can track each item which you approved throughout the fiscal year. Council Member Filseth: You mean you sort of characterized this as kind of an IT and web kind of thing, right. Is that all? Mr. Rossmann: From the searchability perspective? Council Member Filseth: I mean overall. I mean, searchability, okay, got it. Mr. Rossmann: It's also packaging the information. It is an issue of somebody who doesn't understand necessarily where Ordinances are, that now it's all packaged in one site. Look for the budget; you see all the changes right there. Not just the Adopted Budget, but all changes which the Council approved. Council Member Filseth: Okay. Chair Schmid: Let me just make a comment to the Clerk first. I found a dramatic change in tonight's material that had the Finance Committee minutes where we could read through and go over the discussion we had last time. Council Member Kniss: Are you on this page? Page ... Chair Schmid: The attached ... Council Member Kniss: You're on the report, right? For minutes. Chair Schmid: Yes. Last night we had only Action Minutes [audio break] Council while full minutes from the PTC. Obviously I very much like the minutes of the Finance Committee that we have that helps us continue a discussion that we started. My recollection is that we asked in the dialog that took place that night for you to do something for us, and you have come back. I do appreciate that. I played around a little bit with the website and found that it was helpful, especially the ability to take any single item and immediately get the CMR associated with it. I could see how historically as time goes on it will be beneficial to be able to search the budget and then the budget amendments in a direct way. I think the origin of your coming to us was to operate a little more efficiently in the Attachment B TRANSCRIPT Page 6 of 6 Finance Committee Special Meeting Transcript: 9/22/2015 department. The concern was to make sure that it's transparent and open. I guess my experience of playing around seems to be that you've accomplished that. I would support the motion. Lalo. Lalo Perez, Chief Financial Officer and Director of Administrative Services: I just wanted to add that Walter is a member of our Executive Leadership Team for the record. Chair Schmid: Thank you. Okay, any other comments on that? All in favor of the motion? That passes unanimously. MOTION PASSED: 4-0 ADJOURNMENT: Meeting adjourned at 7:50 P.M. Attachment B NOT YET APPROVED 150325 jb 0131328 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Section 2.28.080 (Amendments after Adoption) of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code to __________________ The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 2.28.080 Amendments after Adoption of Chapter 2.28 (Fiscal Procedures) of the Palo Alto Municipal Code is amended to read as follows: 2.28.080 Amendments after adoption. During the fiscal year, the city manager shall amend the budgetary accounts of the city to reflect the following: (a) Additional Appropriations. By a two‐thirds vote, the council may make additional appropriations of receipts that are in excess of the total estimated receipts and appropriations contained in the adopted budget. (b) Additional Positions. By a majority vote, the council may add positions to the table of organization. (c) Transfer of Appropriations. (1) By a majority vote, the council may transfer part or all of the unencumbered balance of any appropriation from one fund, department, office, or capital project to another; (2) By written authorization, the city manager may direct the redistribution, within any department or office, of the unencumbered balance of appropriations within the departments or offices, provided that he or she shall not make transfers from the classification of utilities purchased for resale to any other object or make transfers between funds or transfers between departments without the affirmative vote of a majority of the council; (3) By written authorization, the city manager may authorize a transfer of appropriation from the unallocated balance of the contingent account to any department, office or capital project. Funds shall not be transferred between the general fund and the enterprise funds, nor between operating and capital funds. (d) Transfer of Positions. By written authorization, the city manager may transfer positions or assign personnel from any department or office under the control of the city manager to another in accordance with Article IV, Section 6(n) of the Charter. (e) Inter‐fund Transactions. In the event that appropriations and equivalent offsetting credits for allocated inter‐fund services or transfers are affected by amendments to appropriations for Deleted: by ordinance Deleted: by ordinance Deleted: by ordinance Attachment C NOT YET APPROVED 150325 jb 0131328 2 direct expenditures or estimated revenue, the city manager may make corresponding adjustments to the inter‐fund accounts so affected. (f) Salaries and Benefits. Amendments to the Employee Classification and Compensation Plan adopted by the council pursuant to Article III, Sections 12, 18 and 21 of the Charter. (g) Prior year Encumbrances. Appropriations that were encumbered by properly executed, but uncompleted, purchase orders or contracts at the close of the previous fiscal year may be carried forward and incorporated with appropriations of the current year. (h) Municipal Fee Schedule. By a majority vote, the council may, by ordinance, add or change fees in the municipal fee schedule. SECTION 2. The City Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the adoption of this ordinance. SECTION 3. This ordinance shall become effective upon the commencement of the thirty‐first day after the date of its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Senior Asst. City Attorney City Manager ____________________________ Director of Administrative Services Attachment C City of Palo Alto (ID # 5990) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/2/2015 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Extension of Contract Duration with Elster Solutions LLC Title: Approve and Delegate Authority to the City Manager to Execute Amendment Four With Elster Solutions, LLC to Extend the Term of an Equipment and Fully Managed Services Agreement (EFMSA) Through December 31, 2017 at no Additional Cost; to Delegate Authority to the City Manager to Enter Into and Execute a Subsequent Extension of the EFMSA Term Through 2018 at no Additional Cost From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council: 1. Approve, and delegate to the City Manager or his designee the authority to execute on behalf of the City, Amendment Four to the Equipment and Fully Managed Services Agreement (as subsequently amended) (EFMSA) with Elster Solutions, LLC (Amendment Four) to extend the term of the EFMSA through December 31, 2017, at no additional cost to the City; and 2. Delegate to the City Manager or his designee the authority to extend the term of the EFMSA by one additional year, through December 31, 2018, at no additional cost to the City and to execute any documents related thereto that are consistent with the Palo Alto Municipal Code and City Council approved policies. Executive Summary In December 2012, the City Council approved a 3-year agreement with Elster Solutions, LLC (Elster) to provide advanced metering equipment and related managed services for CustomerConnect, an advanced meter pilot program for 300 residential customers with a not- to-exceed amount of $450,455. That agreement was subsequently amended (Amendments One-Three) to modify the scope of work and certain compensation as the project progressed and to modify the term, all within the Council-approved not-to-exceed authorized amount. City of Palo Alto Page 2 While considerable progress has been made to implement CustomerConnect and the time-of- use (TOU) rate pilot, there have been delays in establishing the meter communication network and customer web-portal. An extension of the term will ensure full rollout and evaluation of the pilot, including the TOU customer rate pilot. In order to provide staff the flexibility to manage the agreement within the not-to-exceed amount, Staff recommends that Council approve, and authorize the City Manager or his designee to execute, Amendment Four (Attachment C) to extend the term of the EFMSA through December 31, 2017 at no additional cost to the City. Staff further recommends that Council delegate to the City Manager or his designee the authority to extend the term of the EFMSA by one additional year, through December 31, 2018, and to execute any documents related thereto at no additional cost to the City. Delegating authority to allow the City Manager to extend the agreement through December 2018 would allow added time for customer experience with the installed system and time for staff to fully assess lessons learned. Background The City of Palo Alto Utilities (CPAU) began investigating the applicability of smart grid technologies in Palo Alto in 2009. In March 2010 a consultant was engaged to determine smart grid applications applicable to CPAU’s electric, gas and water utility services and to undertake a benefit-cost assessment for implementation. The consultant’s 2011 report identified smart grid applications that are relevant to Palo Alto, but found that the benefits of such applications in Palo Alto did not justify the estimated $15 million capital investment. The consultant recommended that CPAU implement small-scale pilot projects to determine customer interest and to develop a better understanding of the value proposition for implementing such a system in Palo Alto at a future date when the costs may decrease and the technology has matured. Based on the consultant’s recommendations, staff developed a smart grid road map with nine projects (Staff Report #2443) including a residential advanced meter pilot program (CustomerConnect) and a time-of-use (TOU) rate pilot program. CustomerConnect was designed to evaluate changes in energy and water use for 300 residential customers provided with advanced meters and equipment to view their energy and water consumption. In December 2012, the City Council approved CustomerConnect and a 3-year agreement (Attachment A) with Elster to provide advanced metering equipment and related managed services with a not-to-exceed amount of $450,455 (Staff Report 3330). That agreement was subsequently amended to modify the scope of work and certain compensation as the project progressed and to modify the term, all within the Council-approved not-to-exceed authorized amount. Amendments One through Three are attached (Attachment B). In recognition of the delays in establishing a meter communication network and customer web- portals, Elster has agreed to extend the term of the three year agreement by two additional years, from January 2016 to December 2017, at no additional cost to the City. Such an extension will ensure full rollout and evaluation of the pilot to the benefit of Palo Alto. City of Palo Alto Page 3 Staff recommends that Council approve, and authorize the City Manager or his designee to execute, Amendment Four to extend the term of the EFMSA through December 31, 2017 at no additional cost to the City. Staff further recommends that Council delegate to the City Manager or his designee the authority to extend the term of the EFMSA by one additional year, through December 31, 2018, and to execute any documents related thereto at no additional cost to the City. Delegating authority to allow the City Manager to extend the agreement through December 2018 would allow added time for customer experience with the installed system and time for staff to fully assess lessons learned. Discussion Program Objective The CustomerConnect pilot was designed with the following objectives: 1. Gauge residential customer interest, experience and satisfaction using advanced meters and associated engagement tools; 2. Quantify the change in residential customer energy and water use through efficiency and conservation measures as a result of the customer engagement tools; 3. Evaluate the impact of the programs on utility costs and revenues; 4. Quantify residential customer bill impact; and 5. Gain insight into the costs and benefits of implementing full-scale smart meter-based residential customer services. Progress To-date To date, advanced metering equipment has been successfully installed at the pilot customers’ sites. However, the sparse nature of the mesh communication network initially resulted in difficulty connecting all 300 customers. Delays were also experienced in developing and implementing the customer web-portal that allows customers to analyze their hourly or daily utility usage pattern. In recognition of these delays, Elster agreed to extend the term of the agreement by two years, through December 2017, pending Council approval. Extending the term will enable customers to continue to be able to monitor their utility usage. It will also enable the City to fully evaluate the pilot and begin the design of a full rollout of an advanced meter based smart grid system. Notable benefits to date from the CustomerConnect pilot include: 1. Early detection of water leaks saved water and reduced customer bills since leaks were able to be discovered soon after they occurred (rather than waiting until a high water bill drew attention to the possibility of a water leak). 2. Electric bill savings accrued to households participating in the TOU electric rate pilot, especially for electric vehicle (EV) owners who charged their EVs at night using the lower, off-peak electric rate. City of Palo Alto Page 4 3. Better customer understanding of utility usage patterns, thus facilitating a more informed and optimal use of resources. This benefit will be quantified as part of the program evaluation in 2016-2017. 4. Voltages measurements throughout the distribution system through the advanced meters located at customer homes, enabling the utility to explore ways to more optimally operate the distribution system (e.g. conservation voltage reduction, low voltage detection, etc.). 5. Utility staff experience with the capabilities, limitations, and construction and operational considerations related to the technology. Upon full implementation of all aspects of the pilot program to all 300 customers in the coming months, the pilot will transition to the maintenance phase and will be evaluated as originally planned in 2016 and 2017. Effort also will be made to leverage the installed metering infrastructure to provide additional services to customers and to operate the electric distribution system more effectively. Resource Impact There is no additional resource impact by extending the term of the agreement through Amendment Four or a potential extension through 2018 each at no additional cost to the City. Policy Implications The approval, and delegation of authority to the City Manager or his designee to execute Amendment Four extending the term of the EFMSA through December 2017, as well as the delegation of authority to the City Manager or his designee the authority to extend the term of the EFMSA by one additional year, through December 2018, and to execute any documents related thereto is consistent with existing City policies, including the Council approved Utilities Strategic Plan objectives of offering programs to meet the needs of the customers and community, and promoting the efficient use of resources. Offering customers a TOU electric rate is consistent with the City’s Electric Vehicle Infrastructure Policy. Environmental Review Approval of Amendment Four and delegation of authority to the City Manager to execute this and potentially subsequent amendments do not require review under the California Environmental Quality Act (CEQA) because they do not meet the definition of a “project” pursuant to California Public Resources Code Section 21065. Attachments:  Attachment7.a: Attachment A: Elster Agreement (PDF)  Attachment7.b: Attachment B: Elster Contract Amendment One, Two and Three (PDF)  Attachment7.c: Attachment C: Elster Contract Amendment Four (PDF) ATTACHMENT A AMENDMENT FOUR TO THE EQUIPMENT AND FULLY MANAGED SERVICES AGREEMENT BETWEEN ELSTER SOLUTIONS, LLC AND CITY OF PALO ALTO THIS IS AMENDMENT FOUR ("Fourth Amendment") to that certain Equipment and Fully Managed Services Agreement ("Agreement" or the "EFMSA") is entered into _ day of September, 2015 ("Amendment Effective Date"), by and between Elster Solutions, LLC, a Delaware Limited Liability Company, located at 208 S.Rogers Lane, Raleigh, NC 27610, USA ("Elster" or "Seller" or "Licensor") and the City of Palo Alto, a California chartered municipal corporation ("City" or "CPAU") (collectively, the "Parties"). RECITALS A. The Agreement dated effective December 10,2012 was entered into between the Parties for Elster to provide advanced meter and network equipment and fully managed service solutions forthe City's electricity, natural gas and water utilities and customers. B. The Parties entered into a Fi rstAmendment to the Agreement dated effective July 18, 2013 to adjustthe rates and fees under the Agreement to account for Health MAP associated fees. C. The Parties entered into a Second Amendment to the Agreement dated effective October 10, 2013to adjustthescopeofworksetforth in ExhibitB, and the rates and fees set forth in ExhibitCto account for changes to Uti lismart Customer Energy Manager ("CEM"). D. The Parties entered into a Third Amendment to the Agreement dated effective February 25, 2015 (the Third Amendment) to account for changes in equipment and services provided by modifying EFMSA Section 7, Ex hi bit B (section 5, Deliverable, Bi II of Materials), and Ex hi bit C (Rates and Fees ), and update the Term. E. The Parties now desireto further modify the Agreement to extend the Term through 2017 and to clarify that the Term extension set forth in the Third Amendment conforms with PAMC 2.30.290(b)(1). G. To accomplish this purpose, the Parties wish to amend the Agreement. NOW THEREFORE, in consideration of the foregoing recitals, the covenants and obligations set forth in this Amendment and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, the Parties agree as follows: SECTION 1. Section 7(a), entitled Term of Managed Services Agreement, of the EFMSA is hereby amended and restated in its entirety to read as follows. "a) Term of Managed Services Agreement. Elster shall provide Managed Services to the City in accordance with the terms of this Agreement for a period of thirty-six (36) months from the 1/1/2013 (the "Term"). The Parties may extend the Term (the "Extension Term") by the City giving not less than thirty (30) days' advance written notice and by completion of a contract amendment. With respect to specific parts of the overall suite of Managed Services provided by Elster, the following terms shall apply: Term Year 1 Year 2 Year 3 Extension Term Year 1 Year 2 1/1/2013-12/31/13 1/1/2014-12/31/14 1/1/2 015-12/31/15 1/1/2016-12/31/2016 1/1/2017-12/31/2017 No Management Services provided Management Services provided for UEP, CEM, HealthMap Management Services provided for UEP and CEM; HealthMap provided at no additional charge Management Services provided for UEP, CEM, HealthMap provided at no additional charge Management Services provided for UEP, CEM, HealthMap provided at no additional Charge" SECTION 2. Except as herein modified, all other provisions of the Agreement, including any ex hi bits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Fourth Amendment on the Amendment Effective Date. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: Senior Deputy City Attorney Ai\ffi'\Di\IENT FOUR BETWEEN ELS'Jffi SOLUTIONS,LLC AND1HE CIITOFPALO ALTO 999013 EL5TE~UTIONS, LLC By: ~~------- Na me~kobertH~ne§ ______ _ Title:VP Contracts & Propo.§~ls 2 City of Palo Alto (ID # 6115) City Council Staff Report Report Type: Action Items Meeting Date: 11/2/2015 City of Palo Alto Page 1 Summary Title: Comprehensive Plan Update - Part III Title: Comprehensive Plan Update: Comprehensive Plan Structure, Including Goals, Vision Statements, and Related Issues for Each Element (Part III: Land Use and Community Design) From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that City Council review and discuss the organizational structure of the Land Use & Community Design Element of the City’s Comprehensive Plan, including the vision statement, goals, and related issues, in order to provide guidance to the Citizens Advisory Committee (CAC) and staff regarding necessary updates and adjustments. NOTE: This is the third in a series of meetings on Comprehensive Plan elements scheduled for the summer/fall of 2015. The next meeting is tentatively scheduled for November 16.th Executive Summary Completion of the Comprehensive Plan update is one of City Council’s top priorities, and this agenda item is a continuation of a process intended to give the Council an opportunity to discuss the organizational structure of the Comprehensive Plan, including the vision statements and goals of each element of the Plan as well as selected policies and programs that the City Council would like to take the lead on, as opposed to delegating them to the CAC. On August 31st, the City Council adopted a motion providing guidance on the vision statement and goals they would like to use in the updated Transportation Element. On October 5th, the Council adopted a motion providing guidance on the vision statement and goals they would like to use in the updated Community Services & Facilities Element. Tonight’s discussion is intended to provide the same guidance on the Land Use & Community Design Element. The CAC is scheduled to begin its review of the Land Use & Community Design Element in mid- December. Council direction on the vision and goals for this element would facilitate this upcoming work. In addition, staff is seeking Council’s input on the suggestion that Policy L-8, which contains a city-wide cap on non-residential development in “monitored areas,” be City of Palo Alto Page 2 maintained and supplemented with an additional growth control policy. The additional policy could be an annual limit on office development like the one currently being developed for implementation on an interim or trial basis, or another City-wide cap that would apply to office space in all commercial districts (i.e. it wouldn’t apply to all non-residential uses, but it would apply Citywide, rather than to the “monitored areas” shown in Comp Plan Map L-6). Background The City’s Comprehensive Plan, Embracing the New Century, Palo Alto 1998-2010 Comprehensive Plan, was adopted in 1998 and sets goals, policies, and programs related to land use and development issues, including transportation, housing, natural resource, community services, and safety. The City recognized the need to update the plan in 2006 and began the process in earnest in 2008, when a consultant was retained to work with staff and the City’s Planning and Transportation Commission (PTC). The PTC’s draft work product was submitted to the City Council in early 2014 and focused on organizational changes to delete redundancies and make the text more accessible and user friendly, emphasizing the existing themes and ensuring they were represented throughout document, and incorporated environmental sustainability issues. When the PTC’s work product was brought forward to the City Council, staff proposed a process that would complete the plan and an associated Environmental Impact Report (EIR) in parallel with expanded community engagement (Staff Report 4415 from March 3, 2014). Public workshops and “scoping” meetings were held in the summer of 2014 and at a series of meetings culminating on December 8, 2014, the City Council discussed their desire to consider zoning changes concurrently with the Comprehensive Plan Update and discussed a number of issues they would like to consider during the update process (Staff Report ID# 5236 from December 8, 2014). The discussion led to a motion directing staff to: Update Zoning Ordinance to address retail preservation, discuss parameters of annual office/R&D growth management program and potential interim zoning changes, schedule series of community meetings to discuss “big picture” planning issues utilizing simplified planning scenarios to test the growth management programs and review goals, policies, and programs from the existing Comp Plan with the recommendations forwarded by the PTC in early 2014. Concurrent with the Comp Plan Update effort, staff was directed to work on preparation of the impacts analysis (Draft EIR), and preparation of a draft zoning ordinance(s) for consideration that would implement different aspects of the Comp Plan. Because the Comprehensive Plan Update has not been completed yet, The Draft EIR will utilize a series of simplified planning scenarios to bracket potential outcomes of the planning process; the results can be used to inform ultimate decisions on key aspects of the Plan. Since the Council’s action on December 8, 2014, the City Council has held work sessions on growth management strategies, including the idea of an annual limit on office space and retail preservation strategies, and transportation priorities. These ideas have been codified into ordinances defining a 50,000 square foot office cap and a California Avenue ground floor retail City of Palo Alto Page 3 protection ordinance. Further work on these issues (growth management and retail preservation) will continue into 2016. A community “summit” took place on May 30, 2015 and a Citizens Advisory Committee (CAC) was appointed to assist with the planning process. An analysis of community input from the summit related to transportation was transmitted to the Council in advance of their August discussion of transportation priorities. A second analysis of community input from the summit related to housing and growth was transmitted in advance of the Council’s discussion on October 5th. On April 27, 2015, the City Council began their review of the organizational structure of the existing Comprehensive Plan, and the Council’s direction on the vision statements contained within each element is reflected in the comparison of current and PTC recommended vision statements and goals included as Attachment A. On August 31, 2015, the City Council continued their review of the organizational structure of the existing comprehensive plan, focusing on the vision statement and goals for the Transportation Element. On October 5, 2015, the City Council continued their review of the organizational structure of the existing comprehensive plan, focusing on the vision statement and goals for the Community Services & Facilities Element. After tonight’s discussion, the City Council is scheduled to hold at least one additional session (November 16th) on the vision statements and goals for other elements of the Comprehensive Plan. At each session, the Council has also requested a review of the draft schedule (attached as Attachment B). Discussion The City’s Comprehensive Plan contains chapters or “elements” that address topics required by State law, as well as optional elements and topics. Each element begins with a vision statement which lays out the overall objective and spirit of its element. Direction from the Council on each element’s vision statement (from April of this year) is included in the attachment to this report. Following the vision statement presented at the start of each element, the plan’s organization is achieved via a series of headings, subheadings and goals. Goals are high-level statements articulating an end point towards which the City will direct its efforts. The goals are supported by narrative and provide a structure for the subsequent policies and implementation programs that serve to advance the goals. City of Palo Alto Page 4 Table 1. Structural Framework of the Comprehensive Plan (Used in All Elements) Vision Statement summarizing what Palo Alto will be like at the end of the planning horizon. Goal “General end towards which the City will direct effort.”1 Policy “Specific statement of principle or of guiding actions that implies clear commitment but is not mandatory. A general direction that a governmental agency sets to follow, in order to meet its goals and objectives before undertaking an action program.”2 Program “An action, activity, or strategy carried out in response to an adopted policy to achieve a specific goal or objective.”3 1Embracing the New Century, Palo Alto 1998-2010 Comprehensive Plan, p. I-4. 2Ibid. 3Ibid. A distinction can be made between ongoing programs and programs intended to be completed at some point within the planning horizon. Source: Palo Alto Department of Planning & Community Environment, August 2015 Review of Comprehensive Plan Goals As the CAC begins its work on Comprehensive Plan policies and programs for each element, guidance from the City Council is necessary to properly frame their discussion. Beginning with the Community Services & Facilities and Transportation Element, and now moving onto the Land Use & Community Design Element, staff has requested that the Council review the existing Comprehensive Plan’s goals alongside the recommendations developed by the PTC and provide direction regarding the desired goals and structure for the updated plan. To facilitate the Council’s discussion, staff has provided the workbook included as Attachment A, which contains the following for each element:  An introduction summarizing the intent and scope of the element, contents of the existing element, and necessary changes/updates (based on prior Council direction, changes in State law, etc.)  A comparision of the vision statements in the existing Comprehensive Plan element with those recommended by the PTC, with a summary of the City Council’s input from April.  A short overview of the existing Comprehensive Plan element and the PTC’s recommended revisions, with an explanation of the PTC’s recommended structure.  A detailed, side-by-side list of the major headings and goals in the existing Comprehensive Plan element and the PTC revisions, with a summary of the intention or rationale behind the PTC’s changes. In most cases, the PTC’s recommended revisions were intended to reorganize, but not alter the meaning of the existing elements in significant ways, and to address the necessary changes/updates identified in the introductory section. In some instances, reviewers have expressed their opion that the PTC’s changes inappropriately altered the meaning of the City of Palo Alto Page 5 element. (Councilmember Filseth disseminated an analysis of eight Land Use policies on October 5th.) In reviewing the workbook, the Council is being asked to determine if they wish to accept the PTC’s recommended visioin and goals, if they would like to maintain a structure of goals closer to the original, or if there are specific adjustments to individual goals that are needed. As noted on page 27 of the workbook, whle either organizational structure can work as a framework for a robust set of policies and programs, many Palo Altans are familiar with the current structure of the element and may find it difficualt to adjust to a new structure. Also, if the City Council would like to retain the existing structure, some of the goals could be expanded to encomass issues such as climate protection. We have asked the Council to focus on the element’s vision and goals because this will provide needed direction to the CAC, which is focusing on policies and programs. Once a vision statement and goals have been set by the City Council and the CAC has had an opportunity to develop revised policies and programs based on the goal structure, a draft element is written. This draft will include a narrative for each goal based on Council and CAC work. This draft will then be made available to each body for further refinement. In staff’s view, there is no “wrong answer” when it comes to organizing the material, and the most important question is whether the desired range of topics is addressed by the goals. Providing guidance on desired goals within the plan before the CAC makes their recommendations regarding policies and programs will ensure that the CAC’s work is consistent with the Council’s expectations. Policy L-8 Policy L-8 in the Land Use & Community Design Element establishes a City-wide limit of 3,257,900 new square feet of nonresidential development in specific areas of the City evaluated in a 1989 study and shown on Comprehensive Plan Map L-6.1 Planning staff has been monitoring and tracking development pursuant to this policy on an annual basis since the Comprehensive Plan was adopted. As of December 2014, 1,539,891 square feet had been added (including projects in the pipeline). As discussed in CMR #5565 from March 2, 2015, there are a number of drawbacks to the Policy L-8 data set as compared to another data set developed to support the Congestion Management Plan (CMP) maintained by the Valley Transportation Authority (VTA). Specifically, the Policy L-8 data combines all non-residential development so a project that removes 5,000 square feet of retail and adds 10,000 square feet of office is recorded as an addition of 5,000 square feet. Also, Policy L-8 only applies only to the “monitored areas” identified, so the data 1 Policy L-8, which is about the City as a whole, should not be confused with Program L-8, which is about Downtown. Several Council members will need to recuse themselves from any discussion of Program L-8 about the Downtown development cap, and as a result, staff will bring this item back for a separate discussion at a later date. City of Palo Alto Page 6 does not present a full picture of non-residential development in the City. (The Stanford Hospital projects approved in 2012 added 1.2 Million square feet but were expressly excluded from the cap by way of a Comp Plan amendment.) By contrast, the CMP data set differentiates between non-residential land uses and provides information that is truly Citywide. As noted earlier, staff is seeking Council’s input on the suggestion that Policy L-8 be maintained and supplemented with an additional growth control policy. The additional policy could be an annual limit on office development like the one currently being developed for implementation on an interim or trial basis, or another City-wide cap that would apply to office space in all commercial districts (i.e. it wouldn’t apply to all non-residential uses, but it would apply Citywide, rather than to the “monitored areas” shown in Comp Plan Map L-6). Timeline The Comprehensive Plan Update has been underway for many years and the City Council “reset” the process in 2014 in an effort to ensure broad community input, to identify and address critical issues facing our community, and to ensure concurrent consideration of needed zoning changes. In April of this year, the City Council requested formation of a Community Advisory Committee (CAC) to assisst staff in completing this work. As shown in the draft schedule included as Attachment B, CAC meetings are likely to continue through the spring of next year. During the same period, the City Council will have multiple meetings to provide direction, and a Draft EIR will be prepared, along with a fiscal analysis, both of which will provide data and analysis to inform Council and community discussions. A revised draft Comprehensive Plan Update will be prepared for consideration by the City Council at the end of 2016/early 2017. Resource Impact General plan updates are significant undertakings for any jurisdiction and since 2008, the City of Palo Alto has invested time and resources in the project. The need to allocate multiple members of City staff, significant time on the City Council’s agenda, and financial resources for consultant assistance and event/meeting programming will continue until the adoption of the updated Comprehensive Plan and its companion environmental document. Policy Implications The City’s Comprehensive Plan sets forth the City’s policies with regard to the topics addressed. The structure comprised of vision statements and goals will inform discussions regarding updated policies and programs. Environmental Review Adoption of an updated Comprehensive Plan will require preparation and certification of a program-level Environmental Impact Report (EIR) pursuant to the California Environmental Quality Act (CEQA). Attachments:  Attachment A: Structure & Goals of Comp Plan Workbook (PDF) City of Palo Alto Page 7  Attachment B: CAC Council Timeline revised October 2015 (DOCX) Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 1 OUR PALO ALTO 2030 COMPREHENSIVE PLAN UPDATE STRUCTURE & GOALS COMPARISON MATRIX ATTACHMENT A Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 2 Table of Contents Objectives & Use of This Matrix page 3 Community Services and Facilities Element page 4 Introduction page 5 Vision Statement Comparison page 7 Comparison of Comp Plans Summary page 8 Detail page 10 Transportation Element page 13 Introduction page 14 Vision Statement Comparison page 16 Comparison of Comp Plans Summary page 17 Detail page 19 Land Use and Community Design Element page 22 Introduction page 23 Vision Statement Comparison page 25 Comparison of Comp Plans Summary page 26 Detail page 28 Natural Environment Element page 31 Introduction page 32 Vision Statement Comparison page 34 Comparison of Comp Plans Summary page 35 Detail page 37 Business and Economics Element page 41 Introduction page 42 Vision Statement Comparison page 44 Comparison of Comp Plans Summary page 45 Detail page 46 Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 3 Objectives & Use of This Matrix The City’s Comprehensive Plan contains chapters or “elements” that address topics required by State law, as well as optional elements and topics. Each element begins with a vision statement. The vision statement lays out the overall objective and spirit of the element. Following the vision statement, the organization of each element is achieved via a series of headings, subheadings and goals. The goals describe what the City is trying to achieve1 and provide a structure for the policies and implementation programs that follow. This matrix is intended to provide the City Council with a framework to begin examination of the existing Comprehensive Plan’s goals and goal organization, as well as revisions recommended by the Planning and Transportation Commission (PTC) in 2014. The matrix compares the vision statements and goals of the current Comprehensive Plan 1998‐2010 with the revisions recommended by the PTC and summarizes the rationale behind the PTC’s recommendations. The matrix also includes a summary of the City Council’s input regarding the vision statements of each element and a general introduction to each element of the Comprehensive Plan. The City Council may use this information to consider their own desired approach to organizing the material within the Comprehensive Plan and specific goals that they would like to include. The Council’s input and direction will provide the Citizens Advisory Committee (CAC) with needed guidance as they focus on policies and programs to implement the Council’s goals. The elements are presented in the order they will be considered by the CAC to facilitate this guidance. 1 P. I‐4 of the Comprehensive Plan defines a goal as “a general end towards which the City will provide effort.” Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 4 COMMUNITY SERVICES and FACILITIES ELEMENT Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 5 The Community Services and Facilities Element is not a State requirement. It is included in the Comprehensive Plan to reinforce the significance and importance of services like libraries and schools in Palo Alto and the vital role they play in shaping community life. The Community Services and Facilities Element explains that Palo Alto is a full‐service City, with park and recreation divisions and police and fire departments, library and cultural arts programs, and youth, senior and childcare services. In each of these areas, the City is committed to providing responsive customer service for residents and businesses, even going so far in this Element to specify staff management techniques, performance review criteria, and public contact processes in an effort to ensure the quality of service delivery. The Current Plan Palo Alto residents have access to a rich array of public services that cater to all ages, cultures, and levels of mobility and education. The City provides a range of direct services to all citizens, and also partners with community organizations and jurisdictions to assist those with disabilities. Palo Altans also have access to cultural and recreational opportunities on the adjacent campus of Stanford University. The Community Services and Facilities Element calls for maintaining and enhancing all of the services, and it supports the excellent schools run by the Palo Alto Unified School District (PAUSD), an independent local government institution separate from the City of Palo Alto. The Community Services and Facilities Element acknowledges that parks and recreational and social services play a significant role in shaping a healthy and dynamic community and calls for the City to encourage and enhance access for all Palo Altans. The Element also recognizes that there are fiscal limits to what the City can provide and calls for collaboration with outside agencies and jurisdictions to fill any service gaps. The Community Services and Facilities Element provides a solid framework to help the City deliver the services required to meet the needs of the community and add to quality of life in Palo Alto. The majority of its policy themes are expected to be carried forward into Our Palo Alto 2030 to continue to maintain and strengthen public services, including:  Providing services that meet the needs of all cultures, ages, and abilities.  Meeting fiscal challenges by partnering with other agencies, jurisdictions, non‐profits, and businesses.  Partnering with PAUSD to maximize the use of school facilities for community use during non‐school hours.  Maintaining parks and facilities so they can be enjoyed by future generations.  Ensuring and expanding access to recreational and public services for disabled and low‐income residents.  Locating public facilities and services near children and seniors.  Expanding new parks and community facilities to meet the needs of a growing community. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 6 Updates Anticipated for Our Palo Alto 2030 In light of the Council’s priorities and issues that have emerged since the adoption of the existing Comprehensive Plan, the Community Services and Facilities Element in Our Palo Alto 2030 is expected to include a number of new concepts, including:  Advocating for healthy lifestyles for all residents.  Helping teens combat depression, isolation, stress, and other mental health issues.  Expanding programs to engage seniors in the community.  Encouraging universal access to parks, public places, and community facilities.  Carrying out the recommendations of the Infrastructure Blue Ribbon Committee regarding the potential need for new and/or upgraded public facilities. The updated Community Services and Facilities Element is also expected to reference the Parks Trails and Open Space Master Plan that is currently being prepared, and it is likely to be in that context that the City will decide whether to maintain the quantitative National Recreation and Park Association standards for Neighborhood and District park size, service area radius, and acres per person currently contained in Comprehensive Plan Policy C‐28. The PTC consulted with other boards and commissions, City staff, and other stakeholders in developing their recommended revisions to the existing Comprehensive Plan, which address the new concepts referenced here. City Council guidance is required to determine whether the updated plan should maintain the current element’s organizational structure or use the structure of goals recommended by the PTC, and what specific goals should be included. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 7 COMMUNITY SERVICES and FACILITIES ELEMENT VISION STATEMENT COMPARISON EXISTING PALO ALTO 1998‐2010 COMPREHENSIVE PLAN PTC RECOMMENDATION APRIL 2014 CITY COUNCIL DIRECTION APRIL 27, 2015 CO M M U N I T Y SE R V I C E S AN D FA C I L I T I E S EL E M E N T “Palo Alto will provide high quality community services to its residents, businesses, and visitors. Its schools, libraries, parks, community facilities, and performing arts and cultural centers are treasured and will be enhanced to serve current and future generations. Its police and fire services will be managed to provide consistently high levels of public safety. The City will continue to provide services and programs that meet the needs of special populations—including children, seniors, and people with disabilities—as well as programs in recreation, lifelong learning, and the arts that benefit all populations. Palo Alto’s success in providing these services will be expressed and measured by the satisfaction of its customers, the public at large. The City will pursue new ways to deliver community services in the most efficient and cost‐effective way possible. It will coordinate its efforts with other public agencies, nonprofits, and the private sector to reduce overlap and maximize the use of resources.” “This generation must invest in the people, places, programs and environment of Palo Alto to ensure that the quality and vitality of community services and facilities are present and responsive to the generations to come.” City Council Comments:Majority of the Council members felt that the existing Vision Statement is better and all inclusive. Some Council members preferred including portions of existing Vision Statement and add it to the PTC version to strengthen it. Following are the suggestions made by individual Councilmembers:  Animal services not mentioned in the CSE vision statement. It should be added because it adds community value.  Mention of cultural activities in addition to arts and science.  Exclude the word “generation must” from the PTC Vision Statement to make it stronger;  Add “Palo Alto’s success in providing these services will be expressed and measured by the satisfaction of its customers, the public at large” to the PTC Version. Based on this input, staff will develop minor revisions to the existing version for City Council review. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 8 SUMMARY COMPARISON ‐ COMMUNITY SERVICES and FACILITIES ELEMENT ORGANIZATION & GOALS Current Organization COMMUNITY SERVICES AND FACILITIES ELEMENT C 1. Efficient Service Delivery C2. Customer Service C3. Social Services C4. Parks and Public Facilities C5. Access Explanation of Proposed Revisions The PTC’s recommended revisions re‐organized the existing element and added a new goal related to community health. The revisions address concepts related to a healthy lifestyle, engaging seniors in the community, and implementing recommendations from Infrastructure Blue Ribbon Committee to maintain and support City’s infrastructure. Specifically, the recommendations reorganize the Element’s structure by: • Renaming and renumbering existing Goal C1 to C2: Community Partnership; • Renaming and renumbering existing Goal C2 to Goal C5:Public Services in Palo Alto; • Distributing existing Goal C3 policies and programs to new Goal C1 and C4; • Renaming and distributing existing Goal C4 policies and programs to Goals C3 and C4; and • Distributing existing Goal C5 policies and programs to Goal C3. • Change all Goal headings and introduce Sub‐Sections to improve clarity. • Added a new Goal 1 on Health and Well Being of residents; These organizational/goal changes facilitated other changes and additions to policies and programs. Specifically, the PTC recommended: • Policies and programs on meeting the needs of growing senior population and advocating for healthy lifestyles for all residents; • Strengthening existing policies and adding new policies on physical and mental health wellbeing of youth and teens; • Strengthening existing policies on importance of City's partnership with PAUSD, business community, nonprofit partners and Stanford University; • New policies on resources sharing with different organizations and the City; • New policies on implementing recommendations of Infra Structure Blue Ribbon Committee and • Policies on planning for new open spaces, providing sufficient public services to serve new developments, and encouraging universal access to parks. The revisions were developed in consultation with other boards and commissions Proposed PTC Revisions COMMUNITY SERVICES AND FACILITIES ELEMENT C1‐Health and Well Being (New) • Commitment to Responsive Community Services • Healthy Lifestyles through Community Services • Community Programs and Services for Children • Places for Teens in the Community • Engaging Seniors in the Community • Celebrating Cultural Diversity C2‐Community Partnership • Engaging the Community (New) • Regional Relationships • Partnering with our Schools • Non‐profit Community Partners • Business Partnerships C3‐Maintaining Parks and Facilities • Maintaining our Parks and Facilities Expanding Access C4‐Planning for the Future • Preserving the Aesthetic Legacy of our Parks Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 9 and City staff, and referenced the following studies: • Baylands Master Plan 2008; • Project Safety Net Report 2010; • Recreation Strategic Plan 2008‐2011; • Community Services Strategic Action Plan 2005‐2010; • White Paper on Impact of the Aging Baby Boom Population on Palo Alto’s Social and Community Services 2006; • California Parks and Recreation Society – Creating Community in the 21st Century; and • Youth Master Plan 2003. There is now an opportunity to coordinate with the Parks, Trails and Open Space master planning effort that started in 2014. • Community Facilities with Adaptability for Diverse Uses • Opportunities to Develop New Parks and Recreational Facilities C5‐ Public Services in Palo Alto • Working with the Community Note: Staff believes that either organizational structure will work as a framework for a robust set of policies and programs. Because the PTC’s recommendation places emphasis on a new goal related to community health, it may be preferable. The PTC’s emphasis on partnerships is also constructive. If the City Council would like to retain the existing structure, staff would recommend replacing the third goal (social services) with the PTC’s goal about health and well being. Staff would also appreciate the City Council’s input on the suggestion to the CAC that Policy C‐28, which contains 1990s‐era quantitative standards for neighborhood and district parks from the National Recreation and Park Association, be assessed and updated as needed during the ongoing planning process related to parks, trails, and open space. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 10 DETAIL COMPARISON ‐ COMMUNITY SERVICES and FACILITIES ELEMENT GOALS Current Goals Explanation of Proposed Revisions Proposed PTC Goals This is a new goal, but also includes policies and programs of existing Goal C3 on social services and community programs for children. This goal has a lot of new policies advocating for healthy lifestyles, places for teens in our community and engaging seniors in our community. NEW Health and Well Being GOAL C1: Prioritize implementation of programs and strategies that sustain the health, well‐being, recreation and safety of residents and visitors Efficient Service Delivery GOAL C‐1: Effective and Efficient Delivery of Community Services. Renamed and renumbered existing Goal C1 to C2: Community Partnership. This goal includes new polices on engaging citizen volunteers for community services, developing regional relationships and partnering with nonprofit agencies. Community Partnerships GOAL C2: Engage the community, work with regional partners, reach out to schools, collaborate with non‐profits and create business partnerships in order to provide community services for all age groups Customer Service GOAL C‐2: A Commitment to Excellence and High Quality Customer Service Among City of Palo Alto Officials and Employees Renamed and renumbered existing Goal C2 to Goal C5: Public Services in Palo Alto. This goal focuses on providing high quality, responsive customer service and reinforces the customer‐service ethic. The PTC has recommended that this goal be included in Goal 5 in the “Working with the Community” section. Public Service in Palo Alto GOAL C5: Commit to providing high quality public services and to the manner in which those services are provided to our residents, businesses and visitors Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 11 Current Goals Explanation of Proposed Revisions Proposed Goals Social Services GOAL C‐3: Improved Quality, Quantity, and Affordability of Social Services, Particularly for Children, Youth, Seniors, and People with Disabilities Distributed appropriate existing Goal C3 policies and programs to new Goal C1 and C4. This goal focuses on services for children, youth, seniors and persons with disabilities. It also includes opportunities for coordination among the various agencies and organizations providing services given the limited resources. PTC’s recommendation included eliminating this goal and redistributing its contents under new goals C1 and C4; “Health and Well Being” and “Planning for the Future.” Parks & Public Facilities GOAL C‐4: Attractive, Well‐maintained Community Facilities That Serve Palo Alto Residents. Renamed and distributed existing Goal C4 policies and programs to Goals C3, and C4. This goal focuses on Palo Alto’s parks, community centers and libraries. The PTC has recommended that this goal be changed to “Maintaining Parks and Facilities” since it relates to existing parks, open spaces and community facilities and that existing Goal 5 related to “Access” be included under this goal. Maintaining Parks and Facilities GOAL C3: Recognize the intrinsic value and everyday importance of our parks and community centers, libraries and civic buildings by investing in their maintenance and improvement This is a new goal. This goal includes some policies and programs from existing Goal C3 and C4 but primarily new policies on adaptability of community facilities for various uses, and meeting the need of multi‐ generational community. It also includes new policies on meeting city’s future need for parks and recreation facilities. Planning for the Future GOAL C4: Plan for a future in which our parks, libraries and community facilities continue to thrive and adapt to the growth and change of Palo Alto Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 12 Current Goals Explanation of Proposed Revisions Proposed Goals Access GOAL C‐5: Equal Access to Educational, Recreational, and Cultural Services for All Residents Distributed existing Goal C5 policies and programs to Goal C3. This goal refers to the location of facilities, their design, and the availability to transportation to reach them. The PTC has recommended that this goal be incorporated into Goal C3 on maintaining parks and facilities. In addition, they recommend changing the goal heading name to “Expanding Access”. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 13 TRANSPORTATION ELEMENT Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 14 The Transportation Element is required by State law to address transport of people and goods and related infrastructure such as streets and highways, truck and transit routes, bus and rail stations, bicycle and pedestrian facilities, and airports. Its policies take into account the physical, social, and economic effects of circulation, as well as regional impacts and coordination needs. The Element supports traffic safety, roadway improvement, parking and transportation management solutions, special transportation needs for mobility‐impaired persons, and efforts to increase bus and rail use. A significant focus of the Transportation Element is congestion, which contributes to air, water, and noise pollution, and to frustration for drivers, bicyclists, and other travelers. Increases in roadway capacity are not anticipated in Palo Alto, so the Transportation Element addresses congestion with policies aimed at reducing automobile dependency, increasing travel alternatives, and encouraging fewer trips. Since 2011, transportation elements have been required to “plan for a balanced, multimodal transportation network that meets the needs of all users of streets, roads and highways for safe and convenient travel...” ‐‐ a concept that is referred to as “complete streets.” The Current Plan The Transportation Element lays the foundation for a multi‐modal circulation network that serves vehicles, pedestrians, cyclists, and transit users. Transportation and land use are inextricably linked, as higher density and mixed use generally lead to more transit usage and pedestrian activity. The Transportation Element encourages a land use pattern that supports reduced dependence on cars and guides City decision‐makers to take into account the environmental and social costs of increased traffic when considering future projects. The Element capitalizes on the fact that Palo Alto is the second largest generator of weekday Caltrain trips behind San Francisco and a nationally recognized leader in innovative bicycle projects and programs. Transportation Element policies call for more northeast‐southwest bike routes, easier navigation at railroad tracks and freeways, and better accommodation for bicycles on trains and buses. Much of Palo Alto is ideal for pedestrians, but additional policies emphasize filling in gaps in the sidewalk system and making intersection crossing easier. Goals, policies, and programs in the Transportation Element are still current, supporting the community’s vision of a less congested and more walkable, transit‐rich environment. As a result, the majority of its policies should be considered for retention in the updated plan, including those addressing the following concepts:  Reducing auto use through carpooling, increased emphasis on electronic information services, and education about Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 15 transportation alternatives.  Encouraging employers to develop shuttle services connecting employment areas with the multi‐modal transit stations and business districts.  Supporting efforts to integrate train, bus, and shuttle schedules at multi‐modal transit stations to make public transit use more time‐efficient.  Acquiring easements for bicycle and pedestrian paths through new private developments.  Reducing neighborhood street and intersection widths and widening planting strips to slow speeds and improve safety.  Providing sufficient parking in business districts to address long‐range needs. Updates Anticipated for Our Palo Alto 2030 The effort to update the Comprehensive Plan is expected to build on the existing Transportation Element, fine‐tuning it to respond to emerging trends and community concerns by:  Reinforcing “complete streets” concepts and policies.  Supporting Caltrain modernization and grade‐separated crossings.  Requiring proposed development to implement robust transportation demand management strategies that can be effectively monitored and enforced.  Supporting reduction of greenhouse gas emissions through vehicle trip reduction and by promoting electric and alternative fuel vehicle technology.  Reflecting the City’s control of the Municipal Airport.  Strengthening policies on preservation of neighborhood residential streets, Safe Routes to School, and general traffic safety.  Addressing the regional Grand Boulevard Initiative for El Camino Real, and opportunities for improving transit and pedestrian/bicycle facilities in the corridor. The updated element also provides an opportunity for the City Council to articulate its objectives (e.g. 30% reduction in SOV trips?), and the strategy for transportation investments discussed on August 17, 2015. City Council guidance is also required to determine whether the updated plan should maintain the current element’s organizational structure or use the structure of goals recommended by the PTC, and what specific goals should be included. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 16 TRANSPORTATION ELEMENT VISION STATEMENT COMPARISION EXISTING PALO ALTO 1998‐2010 COMPREHENSIVE PLAN PTC RECOMMENDATION APRIL 2014 CITY COUNCIL DIRECTION APRIL 27, 2015 TR A N S P O R T A T I O N EL E M E N T “Palo Alto will provide accessible, attractive, economically viable and environmentally sound transportation options that meet the needs of residents, employers, employees and visitors for safe, convenient and efficient travel by a variety of methods. Streets will be safe and attractive, and designed to enhance the quality and aesthetics of Palo Alto neighborhoods. Emphasis will be placed on alternatives to the automobile, including walking, bicycling, public transit, and car and van pooling. The adverse impacts of automobile traffic on the environment in general and residential streets in particular, will be reduced. Solutions that reduce the growth in the number of automobiles on City streets, calm or slow traffic, and save energy will be supported. It is hoped that individuals will reduce their automobile trips by 10 percent by 2010, as alternative transportation methods are implemented. The City will seek out innovative funding sources and approaches to construct and maintain needed transportation systems. Palo Alto recognizes the regional nature of our transportation system, and will be a leader in seeking regional transportation solutions through long‐term planning.” “Maintain and promote a sustainable network of safe, accessible and efficient transportation and parking solutions for all users and modes, while protecting and enhancing the quality of life in Palo Alto neighborhoods including alternative and innovative transportation practices and supporting regional transit facilities and reduction of greenhouse gas emissions.” City Council Comments:Majority of the Council members preferred the PTC version of the Vision Statement along with inclusion of language from existing Vision Statement to strengthen it. (Some Council members preferred the existing Vision Statement stating it is still relevant, viable and meaningful in spite of PTC version adding updated language on Green House Gas reduction.) Following are the suggestions made by the Council to incorporate to the PTC version:  Add language on flexible, dynamic, performance measures and alternatives to driving for all;  Replace the word neighborhoods with “Citywide” in the PTC drafted Vision statement;  The word “Network” does not adequately describe the vision. Add diversity of modes and integrated systems of modes in the PTC Version;  Add the following language from the existing Vision Statement “. The adverse impacts of automobile traffic on the environment in general and residential streets in particular, will be reduced.” Based on this input, staff will develop revisions to the PTC’s version for City Council review. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 17 SUMMARY COMPARISON ‐TRANSPORTATION ELEMENT Current Organization TRANSPORTATION ELEMENT T 1. Reducing Auto Use T2. Public Transit T3. Bicycling and Walking T4. Roadways T5. Neighborhood Impacts T6. Traffic Safety T7. Special Needs T8. Parking Explanation of Proposed Revisions The PTC recommended very little revision to the existing Transportation Element, with primary focus on deleting redundant language and editing to make the document more readable. Although the existing element is fairly comprehensive, some new ideas have surfaced in transportation planning since the Element was adopted in 1998 and the PTC’s draft reflects these changes. Revisions suggested to better organize material in the element included the following:  Consolidation of existing Goals T1, T2, and T3 under Sustainable Transportation as Goal T1;  Renumbering existing Goal T4 to Goal T2: Roadways;  Renumbering and renaming existing Goal T5 to Goal T3: Residential Streets;  Renumbering existing Goal T6 to Goal T5: Traffic Safety;  Renumbering existing Goal T7 to Goal T6: Special Needs;  Renumbering and renaming existing Goal T8 to Goal T4: Motor Vehicle and Bicycle Parking;  Renumbering and renaming existing Goal T9 to Goal T7: Regional Collaboration  Renumbering existing Goal T10 to Goal T8: Airport  Changing three Goal headings and introducing Sub Sections to improve organizational clarity. The PTC’s recommendation also includes new policies and programs to address community concerns on parking, traffic mitigation, and neighborhood street traffic safety, and to provide consistency with the adopted Bicycle Pedestrian Transportation Plan, the Rail Corridor Study, and the Climate Protection Plan. Specifically, the PTC’s version: • Added a new section under Goal 1 to incorporate the Rail Corridor Study, including support for grade separating Caltrain in a trench below grade; • Strengthened the section on Complete Streets; • Added new policies on Level of Service at Protected Intersections and Multimodal Level of Service Evaluation; Proposed PTC Revisions TRANSPORTATION ELEMENT T1. Sustainable Transportation • Reducing Greenhouse Gas Emissions • Public Transit • Bicycles and Pedestrians • Rail Corridor (New) T2. Roadways T3. Residential Streets T4. Motor Vehicle and Bicycle Parking • Parking in Business Districts • Parking Technologies • Parking in Residential Districts • General Parking Policies • Parking Facility Design • Bicycle Parking T5. Traffic Safety T6. Special Needs • Accessible Streets • Accessible Public Transit Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 18 • Strengthened Safe Routes to School policies; bicycle safety policies, and preservation of residential street policies; • Added new policies on Transportation Demand Management (TDM) Requirements; • Included new policies on alternative modes of transport, trip reduction strategies, no net new trip for new developments, and GHG emissions reduction strategies; • Added Parking policies on adoption of new parking technologies for business districts; parking facilities design, bicycle parking; • Included policies on Regional Transportation efforts and Highway 101 and Interstate improvements and • Reflected transition of the Municipal Airport from County to City. The revisions were developed in consultation with City staff and stakeholders, and referenced the following studies: • Bicycle and Pedestrian Plan 2012; • Rail Corridor Study 2013 and • City of Palo Alto’s Climate Protection Plan (in process of being updated) There is now an opportunity to incorporate input from the May 30 Summit, incorporate information on ongoing parking and TDM initiatives, and describe the State’s transition away from using intersection Level of Service as a key metric for impact evaluations. T7. Regional Collaboration • Regional Transportation Planning Agencies • Highway 101 and Interstate Improvements • Regional Transit Networks T8. Airport Note: Staff believes that either organizational structure will work as a framework for a robust set of policies and programs. The current Comprehensive Plan’s emphasis on reducing auto use is somewhat more direct than the broader goal of “sustainable transportation,” but the PTC’s addition of goals related to regional collaboration and the airport are desirable, and the PTC’s overall organizational structure seems clearer. If the City Council would like to retain the existing structure, goals related to reducing auto use and public transit could be revised somewhat to reference greenhouse gas reductions and the rail corridor, and goals related to regional collaboration and the airport could be added. If the City Council prefers the PTC’s organizational structure, reducing SOV trips could be further emphasized, along with desired transportation infrastructure investments. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 19 DETAILED COMPARISON ‐ TRANSPORTATION ELEMENT GOALS Current Goals Explanation of Proposed Revisions Proposed PTC Goals Reducing Auto Use GOAL T‐1: Less Reliance on Single‐Occupant Vehicles Consolidated existing Goals T1, T2, and T3 under Sustainable Transportation Goal T1. This goal added new policies and programs on reducing GHG, supporting electric or alternative fuel vehicle technology, improving bicycle and pedestrian infrastructure, ensuring consistency with Bicycle Pedestrian Transportation Plan and Rail Corridor study. Sustainable Transportation GOAL T1: Create a sustainable transportation system that emphasizes walking, bicycling, and use of public transportation, and other methods to reduce greenhouse gas emissions and the use of Public Transit GOAL T‐2: A Convenient, Efficient, Public Transit System that Provides a Viable Alternative to Driving Bicycling and Walking GOAL T‐3: Facilities, Services, and Programs that Encourage and Promote Walking and Bicycling. Roadways GOAL T‐4: An Efficient Roadway Network for All Users. Renumbered existing Goal T4 to Goal T2: Roadways. This goal retained all the existing policies and added new policies on “Complete Streets” to satisfy requirements of AB1358 and Multi Modal Level of Service. Roadways GOAL T2: Maintain an efficient roadway network for all users. Neighborhood Impacts GOAL T‐5: A Transportation System with Minimal Impacts on Residential Neighborhoods. Renumbered and renamed existing Goal T5 to Goal T3: Residential Streets. All existing policies are carried over, in addition, new policies on minimizing traffic impacts from new developments in residential neighborhoods has been added. Residential Streets GOAL T3: Protect neighborhood streets that support residential character and provide a range of local transportation options. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 20 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Traffic Safety GOAL T‐6: A High Level of Safety for Motorists, Pedestrians, and Bicyclists on Palo Alto Streets. Renumbered existing Goal T6 to Goal T5: Traffic Safety. Apart from adding new policies and programs on improving bicycle safety, multi modal safety at intersections and technology enhancements, all the relevant existing polices are carried over to the PTC draft. Traffic Safety GOAL T5: Provide a high level of safety for motorists, pedestrians, and bicyclists on Palo Alto streets. Special Needs GOAL T‐7: Mobility for People with Special Needs. Renumbered existing Goal T7 to Goal T6: Special Needs. This goal includes policies on addressing needs of people with disabilities. New policies on Universal Design standards to accommodate persons with special needs, beyond standards prescribed by American Disabilities Act have been added. Special Needs GOAL T6: Provide mobility options that allow people with special needs to reach their destinations. Parking GOAL T‐8: Attractive, Convenient Public and Private Parking Facilities. Renumbered and renamed existing Goal T8 to Goal T4: Motor Vehicle and Bicycle Parking. This goal includes policies on automobile parking, to this; the PTC draft has added programs on innovative parking management strategies for both residential and commercial areas, programs on improved parking technologies and requirements for new developments. Motor Vehicle and Bicycle Parking GOAL T4: Encourage attractive, convenient public and private motor vehicle and bicycle parking facilities. Regional Leadership GOAL T‐9: An Influential Role in Shaping and Implementing Regional Transportation Decisions. Renumbered and renamed existing Goal T9 to Goal T7: Regional Leadership. This goal includes regional transportation improvement policies and encourages regional transportation collaborations to reduce GHG emissions. Regional Leadership GOAL T7: Influence the shape and implementation of regional transportation policies to reduce traffic congestion and greenhouse gas emission. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 21 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Airport GOAL T‐10: A Local Airport with Minimal Off‐site Impacts. Renumbered existing Goal T10 to Goal T8: Airport. In addition to the existing policies and program this goal includes new policies on transition of airport management to City from the County of Santa Clara. Airport GOAL T8: Maintain a local airport with minimal environmental off‐site impacts. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 22 LAND USE and COMMUNITY DESIGN ELEMENT Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 23 The Land Use and Community Design Element is the guiding force behind the physical form of our city. It lays out a framework for conservation and development to preserve neighborhoods, protect historic and natural resources, channel growth and commercial activity to suitable sites, respond to climate change, reduce pollution, and promote active and healthy lifestyles. State law requires a Land Use Element to establish the location and intensity of housing, business, industry, open space, recreation, natural resources, and public facilities. The added Community Design component reflects a special interest in Palo Alto in maintaining historic integrity and enriching the built environment. The Current Plan: Palo Alto was an early adopter of compact development principles, as embodied in the Urban Service Area designated to manage growth in the current Comprehensive Plan. Through this strategy, the City has endeavored to direct new development into appropriate locations—such as along transit corridors and near employment centers—while protecting and preserving low‐scale residential neighborhoods and open space lands that together comprise about 80% of the city. The Land Use and Community Design Element identifies the residential areas, commercial centers, and employment districts that together constitute the city’s “structure.” Understanding how these parts of the community are connected to each other and the region is essential to resolving transportation and traffic issues and ensuring that businesses can thrive in places where they can serve residents and visitors without increasing impacts on neighborhoods. As the appearance of buildings and public spaces greatly affects how people experience Palo Alto, the Element calls for high‐quality design to encourage social gathering in attractive settings. The existing Land Use and Community Design Element is ably supporting the community’s objectives for growth management, and its cornerstone goals and policies are about:  Supporting the city’s future needs by accommodating an appropriate mix and amount of residential, commercial, and employment uses within the Urban Service Area.  Maintaining and enhancing Palo Alto’s residential neighborhoods, while ensuring that new development respects existing neighborhood character.  Providing adequate public services and facilities, parks, and open space. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 24  Reducing emissions through energy efficiency standards and land use decisions that support walking, biking, and transit.  Fostering high quality design by improving streetscapes, maintaining and increasing connectivity, and enhancing gateways.  Preserving and protecting historic buildings and cultural and natural resources. Updates Anticipated for Our Palo Alto 2030 The updated Plan is intended to build on the solid foundation of the existing Land Use and Community Design Element to direct growth to urbanized area where services and transit are available, provide clear development standards, reexamine the growth management strategies (i.e. cumulative growth caps) adopted for the City and Downtown, and focus on the relationship between infrastructure, transportation investments, land use, and development. The updated element is also expected to respond to emerging trends and community concerns, including:  Limiting the conversion of retail to residential use.  Requiring proposed development to demonstrate that adequate public services are available and that its design supports walking, biking, and transit.  Instituting new California Green Building Code requirements.  Distributing priority infrastructure improvements equitably across the city.  Providing infrastructure to strengthen Downtown as a regional economic center.  Expanding the City’s tree network, and restoring the Baylands.  Meeting the City’s adopted greenhouse gas reduction targets. City Council guidance is required to determine whether the updated plan should maintain the current element’s organizational structure or use the structure of goals recommended by the PTC, and what specific goals should be included. The City Council has already provided direction on concurrent zoning changes it would like to see, and is separately considering growth management strategies, retail preservation strategies, an update to the City’s Climate Protection Plan, and reforms to the PC zoning process. Specific City Council input on Policy L‐8 about the Citywide cap on non‐residential development and Program L‐8 about the Downtown Cap will be requested separately. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 25 LAND USE and COMMUNITY DESIGN ELEMENT VISION STATEMENT COMPARISON EXISTING PALO ALTO 1998‐2010 COMPREHENSIVE PLAN PTC RECOMMENDATION APRIL 2014 CITY COUNCIL DIRECTION APRIL 27, 2015 LA N D U S E AN D CO M M U N I T Y DE S I G N EL E M E N T “Palo Alto will be a vital, attractive place to live, work, and visit. The elements that make Palo Alto a great community—its neighborhoods, shopping and employment centers, civic uses, open spaces, and natural resources—will be strengthened and enhanced. The diverse range of housing and work environments will be sustained and expanded to create more choices for all income levels. All Palo Alto neighborhoods will be improved, each to have public gathering spaces, essential services and pedestrian amenities, to encourage less reliance on the automobile.” “Palo Alto’s land use decisions shall balance our future growth needs with the preservation of our neighborhoods, address climate protection priorities and focus on sustainable development near neighborhood services, and enhance the quality of life in our community.” City Council Comments: The majority of the Council members preferred the existing Vision Statement because it is simple and elaborative, it calls out specific uses and neighborhoods, does not use buzz words, and does not dilute the concepts present in the existing Introduction section. Some Council members felt the existing Vision Statement is too long, with absolute statements that are difficult to live up to. The following are the comments by Council on the PTC version of Vision Statement:  Use of the word “future” growth is redundant and use of word “ growth” implies that it was needed;  Broaden Climate protection priorities to ”environmental protection priorities”; Following are the suggestions made by the Council to incorporate in the existing Vision Statement :  Integrate concepts of urban forest and canopy into our built environment;  Include languages present in the Introduction section(Themes) of the Comprehensive Plan to the Vision Statement of Land use Element Based on this input, staff will develop minor revisions to the existing version for City Council review. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 26 SUMMARY COMPARISON LAND USE and COMMUNITY DESIGN ELEMENT GOALS Current Organization LAND USE and COMMUNITY DESIGN ELEMENT L 1. Local Land use and Growth Management • Extent of Urban Development • Commercial Growth Limits • Mixed Use Areas • Land Use and Circulation Map • Land Use Definitions L2. City Structure: Fostering a Sense of Community L3. Residential Neighborhoods L4. Centers • All Centers • Regional Centers • Multi‐Neighborhood Centers • Neighborhood Centers L5. Employment Districts Explanation of Proposed Revisions The PTC recommended substantial revisions to the Land Use and Community Design Element intended to improve the clarity and readability of the document. The proposed element contains five consolidated goals with corresponding policies and programs. Goal 3 of includes a referral to the two new Concept Area Plans: the East Meadow Circle/Fabian Way Concept Plan and the California Avenue/Fry’s Area Concept Plan. Reorganization of the Element’s structure included: • Distributing existing Goal L1policies and programs to Goal L1, L2, L3 and L5; • Distributing existing Goal L2 and L3 policies and programs to Goal L2 and L3: Sustaining Public Places and Guiding Private Development; • Distributing existing Goal L4 to Goal L2, L3 and L5: Sustaining Public Places, Guiding Private Development and Regional Land use; • Distributing existing Goal L5 to Goal L5: Regional Land use; • Renaming and renumbering existing Goal L6 to Goal L2: Sustaining Public Places; • Renumbering and renaming existing Goal L7 to Goal L4: Preserving Historic and Archaeological Resources; • Renaming and renumbering existing Goal L8 to Goal L2: Sustaining Public Places and • Distributing policies and programs in existing Goal L9 to Goal L2: Sustaining Public Places • Changing all Goal headings and • Adding new Sub Sections to improve organization of the document. Existing, policies and programs were revised to incorporate key City Council priorities at the time, including limiting the conversion of non‐residential land to residential uses, encouraging economic development including limiting the loss of neighborhood serving retail, strengthening provision of services and addressing sustainable development. New sections were added on climate change, sustainable land use development and urban design, retail retention, below grade alignment for fixed rail and airport and baylands land uses. Proposed PTC Revisions LAND USE and COMMUNITY DESIGN ELEMENT L1. Land use to Support the City’s Future Needs • Climate Protection (New) • Land use in Urban Service Area L2. Sustaining Public Places • Urban Design Guidelines • Downtown Public Spaces • Mixed Use Guidelines • Public Facilities Design Guidelines L3. Guiding Private Development • Citywide Residential Guidelines • Guidelines for Neighborhood Centers and Employment Districts • East Meadow Circle Concept Area Plan • California Avenue Concept Area Plan L4. Preserving Historic and Archaeological Resources • Encourage Preservation • Archeological Resources Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 27 All Employment Districts • Stanford Research Park • Stanford Medical Center • East Bayshore and San Antonio Road/Bayshore Corridor L6. Design of Buildings Public Places L7. Historic Character L8. Civic Uses L9. Public Ways • Streets & Paths • Street Trees • Gateways • Public Arts • Parking Lots • Infrastructure Specifically, the Commission recommended a new section on Climate Protection goals and policies under Goal 1, added policies and programs to improve consistency with Baylands Master Plan, Bicycle and Pedestrian Plan and Rail Corridor Study, and added two Concept Area Plans: East Meadow Circle Concept Area Plan and California Avenue Concept Area Plan. The revisions were developed in consultation with City staff and stakeholders, and referenced the following studies: • Bicycle and Pedestrian Plan 2012 • Rail Corridor Study 2013. • Baylands Master Plan 2008 • City of Palo Alto’s Climate Protection Plan There is now an opportunity to re‐look at some of the issues and incorporate more recent Council priorities related to managing the pace of office growth, providing for a range of housing opportunities as called for in the updated Housing Element, preserving ground floor retail, and making some adjustments to commercial zoning regulations. L5. Regional Land Use • Regional Land use • Stanford Land use (Shopping Center, Research Park and Medical Center) • Downtown Palo Alto • Airport Land use • Baylands Land use Note: Staff believes that either organizational structure will work as a framework for a robust set of policies and programs, however many Palo Altans are familiar with the current structure of the element and may find it difficult to adjust to a new structure. If the City Council would like to retain the existing structure, some of the goals could be renamed or expanded to encompass issues such as climate protection. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 28 DETAIL COMPARISON ‐ LAND USE and COMMUNITY DESIGN ELEMENT GOALS Current Goals Explanation of Proposed Revisions Proposed PTC Goals Local Land use and Growth Management GOAL 1:A Well‐designed, Compact City, Providing Residents and Visitors with Attractive Neighborhoods, Work Places, Shopping Districts, Public Facilities, and Open Spaces. Distributed existing policies and programs of Goal L1 to Goals L1, L2, L3 and L5. This goal includes policies on land use in urban service area, and new policies on maintaining consistency with City’s Climate Protection Plan. The goal language adds the concept of balancing natural resources and community needs to support growth. Land use to Support the City’s Future Needs GOAL L1: Urban space is a limited resource; therefore, development needs to be compact and the best use made of land to balance natural resources and community needs. City Structure: Fostering a Sense of Community GOAL L‐2: An Enhanced Sense of “Community” with Development Designed to Foster Public Life and Meet Citywide Needs. Distributed existing Goal L2 policies and programs to Goals L2 and L3: Sustaining Public Places and Guiding Private Development. This was done to consolidate all goals related to urban design guidelines which guide private residential and commercial developments. Residential Neighborhoods GOAL L‐3: Safe, Attractive Residential Neighborhoods, Each With Its Own Distinct Character and Within Walking Distance of Shopping, Services, Schools, and/or other Public Gathering Places. This goal consolidates its existing policies and programs with sections from existing Goals L1, L2, L3, and L4 on guiding private development. This goal identifies distinct qualities of individual Palo Alto residential and commercial neighborhoods, and adds new policies on preserving these unique characters. This goal also includes policies and programs referring to the two concept area plans. Guiding Private Development GOAL L3: Guide growth, change and preservation of residential and business areas through planning policies that sustain their unique character. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 29 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Centers GOAL L‐4: Inviting, Pedestrian‐scale Centers that Offer a Variety of Retail and Commercial Services and Provide Focal Points and Community Gathering Places for the City’s Residential Neighborhoods and Employment Districts. Distributed existing Goal L4 policies and programs to Goal L2, L3 and L5: Sustaining Public Places, Guiding Private Development and Regional Land use. This was done to consolidate all policies and programs on urban design guidelines for private developments including neighborhood centers and employment districts. Employment Districts GOAL L‐5: High Quality Employment Districts, Each With Their Own Distinctive Character and Each Contributing to the Character of the City as a Whole. Distributed existing Goal L5 policies and programs to Goal L5: Regional Land use. This consolidation was done to facilitate all policies related to Stanford Research Park and Medical Center under Regional Land Use. Design of Buildings Public Places GOAL L‐6: Well‐designed Buildings that Create Coherent Development Patterns and Enhance City Streets and Public Spaces. Renamed and renumbered existing Goal L6 to Goal L2: Sustaining Public Places. This goal provides distinct guidelines for all public developments including public facilities design, mixed use building design, urban streetscape and Downtown public spaces. Policies and programs from existing Goals L1, L2, L3, L4, L6, L8 and L9 are consolidated to make the goal comprehensive. Sustaining Public Places GOAL L2: Plan for streets and public spaces to enrich Palo Alto’s sense of place and community. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 30 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Historic Character GOAL L‐7: Conservation and Preservation of Palo Alto’s Historic Buildings, Sites, and Districts. Renumbered and renamed existing Goal L7 to Goal L4: Preserving Historic and Archaeological Resources. This goal includes all existing policies on historic preservation as well as new policies on archeological resources. Preserving Historic and Archaeological Resources GOAL L4: Recognize the value and importance of archeological resources, historic buildings and places and their importance to a sustainable environment in Palo Alto. Civic Uses GOAL L‐8: Attractive and Safe Civic and Cultural Facilities Provided in All Neighborhoods and Maintained and Used in Ways that Foster and Enrich Public Life. Renamed and renumbered existing Goal L8 to Goal L2: Sustaining Public Places. Distributed existing Goal L8 policies and programs to Goal L2 to consolidate all policies on public facilities design. Public Ways GOAL L‐9: Attractive, Inviting Public Spaces and Streets that Enhance the Image and Character of the City. Distributed policies and programs in existing Goal L9 to L2: Sustaining Public Places. This is not a new goal and includes policies and programs from existing Goals L1, L4, and L5. This goal acknowledges the regional influence Palo Alto has in the area and highlights them. Regional Land use GOAL L5: Encourage development in Palo Alto to provide public benefits and employment to neighboring cities and counties while improving land uses, streets, infrastructure and character of the City Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 31 NATURAL ENVIRONMENT ELEMENT Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 32 The Natural Environment Element in the Comprehensive Plan currently addresses the management of open land and natural resources in Palo Alto and the protection of life and property from natural hazards. It is one of the broadest elements of the Comprehensive Plan, satisfying the requirements for four of the State‐ mandated General Plan elements:  Open Space—with policies describing the use of open space for the preservation of natural resources, the managed production of natural resources, outdoor recreation, and public health and safety.  Conservation—with policies to protect creeks and riparian areas, wetlands, the urban forest, water resources, wildlife, and air quality; to regulate and limit the use and transport of hazardous materials; and to minimize solid waste disposal and promote clean energy.  Safety—with policies describing how exposure will be reduced to natural hazards such as earthquakes, flooding, and wildfires.  Noise—with policies to decrease exposure to undesirable levels of noise in the community. State requirements have evolved in the last several years to require policies related to flood hazards, fire hazards and fire hazard severity zones, and to require consistency with local hazard mitigation plans. Also, the new topic of climate change ‐‐ including curbing greenhouse gas emissions and adapting to climate change ‐‐ is a natural fit for the Natural Environment Element. Safety elements are the only element other than the Housing Element that is subject to State review and must be submitted to the California Geological Survey and the State Board of Forestry and Fire Protection for their review. The State also requires agencies to use their Urban Water Management Plans as source documents and to maintain consistency with adopted airport land use plans. The Current Plan Palo Alto has vast open space resources for a city of our size. The Natural Environment Element seeks to protect the 29 neighborhood and district parks, large holdings in the Baylands, Foothills Park, Montebello and Arastradero Preserves, and Barron, Matadero, and San Francisquito Creeks. All of these areas provide important habitat, scenic, and recreational value. With more than 300 tree species, Palo Alto’s urban forest is an extension of the natural woodland and grassland plant communities and provides a bridge for wildlife between the foothills and the Bay. The Element supports this resource both for its biological benefits and contribution to the aesthetic appeal of Palo Alto. The Natural Environment Element has also proven effective in protecting the health and safety of our community by limiting noise and exposure to hazards. Its goals and policies are about: Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 33  Seeking opportunities for adding open space, including connections between Skyline Ridge and San Francisco Bay.  Re‐establishing riparian and other natural features that have been diminished by development, and protecting surface and ground water from pollutants.  Expanding the urban forest, including by requiring development to provide landscaping and street trees.  Conserving water and energy, and securing long‐term water supplies and renewable, clean energy.  Reducing waste, recycling construction materials, and encouraging reusable, returnable, recyclable, and repairable goods.  Protecting the community from noise, air pollution, hazardous chemicals, and natural hazards. Updates Anticipated for Our Palo Alto 2030 The Planning & Transportation Commission recommended renaming the element as the “Natural and Urban Environment and Safety Element” to better describe its importance and recommended adding major concepts, including:  Monitoring and adapting to impacts caused by climate change.  Reducing greenhouse gas (GHG) emissions.  Emphasizing and supporting community emergency preparedness.  Protecting sensitive habitat from human threats.  Balancing conservation with improved open space access and encouraging low impact recreational use.  Addressing State regulations requirements for transportation noise generated from roadways, airways, and railways, and limiting construction noise around sensitive receptors. Since the Commission’s recommendation was completed, members of the community and members of the City Council have suggested that safety and noise are two important topics that could receive more attention if they are separated into a separate element. City Council direction is required to affirm this suggestion, and to determine whether the updated plan should maintain the current element’s organizational structure or use the structure of goals recommended by the PTC, and what specific goals should be included. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 34 NATURAL ENVIRONMENT ELEMENT VISION STATEMENT COMPARISON EXISTING PALO ALTO 1998‐2010 COMPREHENSIVE PLAN PTC RECOMMENDATION APRIL 2014 CITY COUNCIL DIRECTION APRIL 27, 2015 NA T U R A L EN V I R O N M E N T EL E M E N T “Palo Alto will meet today’s needs without compromising the needs of future generations. Palo Alto will respect and manage natural resources in a way that sustains the natural environment and protects our foothills, baylands, creeks, parks, wildlife and open space legacy. Elements of the natural environment will be conserved where they remain intact and restored where they have been degraded by past development. A substantial portion of the City will remain as open space. Even in built‐up areas, a network of parks will provide access to nature and an urban forest will provide ecological benefits and a source of beauty for residents. Palo Alto will strive for cleaner air and cleaner water. Its policies and programs will foster energy and water conservation, reduced solid waste generation, and cleanup of contaminated sites. The City will be well prepared for natural disasters and will grow and change in a way that minimizes public exposure to hazards like fire, flood, and earthquake.” “Palo Alto shall preserve its ecosystems, including its open space, creeks, habitats, and air quality while working towards a sustainable urban environment of urban forests, water quality, waste disposal reduction, emergency preparedness, community safety and a plan for climate change mitigation.” City Council Comments:All of the Council members preferred the existing Vision Statement. Council felt that the PTC version blends the concepts of parks, open space together and there is no mention of conservation in the vision statement. Following are some suggestions made by individual Council members:  Add “wildlife” to Vision Statement of Natural Environment Element;  Add language on “conservation” in the Vision Statement;  Recommendation to add “restoring” our eco systems to PTC version;  Add language to maintain sustainable water supply for future and  Add language on Climate change adaptation and implementation Based on this input, staff will develop minor revisions to the existing version for City Council review. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 35 SUMMARY COMPARISON ‐ NATURAL ENVIRONMENT ELEMENT Current Organization NATURAL ENVIRONMENT ELEMENT N 1. Open Space • Sensitive Plant Species List • City of Palo Alto Open Space Development criteria N2. Creeks And Riparian Areas • Special Status Wildlife Species List • City of Palo Alto Open Space Development criteria N3. Urban forest N4. Water Resources • Historic Water Consumption and Projected Demand in Palo Alto • Best management Practices to Address Water Pollution N5. Air Quality N6. Hazardous Waste Explanation of Proposed Revisions The PTC recommended extensive reorganization and consolidation of this element based on input from different stakeholder groups, boards and commissions. They recommended strengthening the Safety component of the plan, including the addition of two new goals along with several policies and programs. Several new topics were addressed, including adapting, monitoring, and mitigating climate change. The PTC also proposed a name change for this element to Natural and Urban Environment and Safety Element. Organizational changes recommended included:  Consolidating existing Goals N1, N2, and N3 under Natural Ecosystems as Goal N1;  Renumbering and renaming existing Goal N4 to Goal N5: Water Quality and Conservation;  Consolidating existing Goals N5 and N8 to Goal N6: Environmental Quality; Air Quality and Noise Level Mitigation and Reduction  Consolidating existing Goals N6 and N7 to Goal N4: Solid and Hazardous Waste;  Renumbering and renaming existing Goal N9 to Goal N3: Energy Sources and Conservation;  Splitting and renumbering existing Goal N10 to Goal N7 and N8: Natural Hazards and Community Safety And Emergency Management  Changing five Goal headings and introducing Sub Sections to improve organizational clarity and  Adding new Goal 2 to be consistent with the City’s the Climate Protection Plan. The PTC’s recommendation also included new policies addressing effects of sea level rise and flooding, and policies to achieve City’s GHG reduction targets. New policies and programs were suggested regarding Energy conservation, use of alternative energy (solar), and on maximizing recycling and composting. The PTC’s suggestion was also intended to strengthen policies on conservation and efficient use of water resources, and maximizing use of recycled water. Policies were added regarding the California and Palo Alto Green Building codes, Demolition and Proposed PTC Revisions NATURAL ENVIRONMENT ELEMENT N1. Natural Ecosystems • Foothills, Bay Lands and Public Open Space • Creeks and Riparian Areas • Urban Forest N2. Climate Change and Adaptation (New) N3. Energy Sources and Conservation N4. Solid and Hazardous Waste • Hazardous Materials • Solid Waste N5. Water Quality and Conservation • Water Resources: Water Conservation, Recycling, and Quality • Stormwater Quality • Wastewater Treatment N6. Environmental Quality • Air Quality • Noise Level Mitigation and Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 36 N7. Solid Waste N8. Noise N9. Energy N10. Natural Hazards  General Safety Measures  Seismic and Other Geologic Hazards  Flood Hazards  Fire Hazards  Emergency Management Construction Debris Diversion program, and planning for zero waste. Additional policies were also suggested regarding transportation related noise (roadways, airways and railways) and construction noise; and on community safety and emergency management. The revisions were developed in consultation with City staff and stakeholders, and referenced the following studies: • Urban Forest Master Plan; • Baylands Master Plan 2008; • Tree Technical Manual and Tree Preservation Regulations; • City of Palo Alto’s Climate Protection Plan (in process of being updated); • California Green Building Code & Palo Alto Green Building Regulations; • Zero Waste Operational Plan; • Integrated Pest Management Plan; • Foothills Fire Management Plan and Cal Fire Plan; • Local Hazard Mitigation Plan; Emergency Ops Plan and Seismic Hazard Ord As noted above, there is now an opportunity to re‐visit whether the topics of safety and noise should be included in a separate element. There is also an opportunity to view contents of the element through the lens of the current drought, and ensure consistency with ongoing planning related to water resources and sustainability/climate action. Reduction N7. Natural Hazards • Seismic Activity and Geologic Hazards • Flood Hazards and Mitigation N8. Community Safety And Emergency Management • Public Awareness and General Safety Measures • Fire Protection and Awareness • Community Safety (New) • Emergency Management Note: Staff believes that either organizational structure will work as a framework for a robust set of policies and programs. The existing goal regarding the urban forest highlights this issue (which was subsumed within Natural Ecosystems by the PTC), although the PTC’s recommendations effectively incorporate new subjects/focus on sustainability and climate change. Also, separating‐out safety and noise into a separate element would provide for greater focus on these issues. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 37 DETAIL COMPARISION ‐ NATURAL ENVIRONMENT ELEMENT GOALS Current Goals Explanation of Proposed Revisions Proposed PTC Goals Open Space GOAL N‐1: A Citywide Open Space System that Protects and Conserves Palo Alto’s Natural Resources and Provides a Source of Beauty and Enjoyment for Palo Alto Residents. Consolidated existing Goals N1, N2, and N3 under Natural Ecosystems as Goal N1. All elements of natural eco systems are included in this goal. Additional policies on protecting our sensitive habitats from all types of impacts, human or animal, conservation and protection of native plant and animal species have been added. New policies on meeting compliance with City’s Foothills Fire Management Plan, Stream Corridor Protection Ordinance, Urban Forest master Plan etc. are added under this goal. Natural Ecosystems GOAL N1: Preserve our open space, natural and urban habitats, and protect our ecosystems and natural resources that are the foundations of our environment. Creeks And Riparian Areas GOAL N‐2: Conservation of Creeks and Riparian Areas as Open Space Amenities, Natural Habitat Areas, and Elements of Community Design. Urban Forest GOAL N‐3: A Thriving “Urban Forest” That Provides Ecological, Economic, and Aesthetic Benefits for Palo Alto. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 38 Current Goals Explanation of Proposed Revisions Proposed PTC Goals This is a new goal to address climate change and adaptation. It includes polices on complying with City’s Climate Protection goals, including meeting goals in reduction of GHG, achieving Net Zero energy home goals, and addressing sea level rise. NEW Climate Change and Adaptation GOAL N2: Actively support regional efforts to reduce our contribution to climate change while adapting to the effects of climate change on land use and city services. Water Resources GOAL N‐4: Water Resources that are Prudently Managed to Sustain Plant and Animal Life, Support Urban Activities, and Protect Public Health and Safety. Renumbered and renamed existing Goal N4 to Goal N5: Water Quality and Conservation. This goal includes all existing policies and programs and also adds new policies on conservation and efficient use of water, use of recycled water whenever possible, and retention and use of rain water. Water Quality and Conservation GOAL N5: Conserve water resources and protect water quality to support our natural environment, public health and safety, plant and animal life, and the vitality of our diverse urban activities. Air Quality GOAL N‐5: Clean, Healthful Air for Palo Alto and the San Francisco Bay Area. Renumbered existing Goals N5 to Goal N6: Environmental Quality; Air Quality. This goal includes all existing policies as well as new policies on reduction of air pollution through enforcing existing ordinances and maintaining existing tree canopy to reduce air pollution. Environmental Quality GOAL N6: Reduce environmental pollutants to protect and enhance air quality and to reduce ambient noise levels in every neighborhood. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 39 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Based on City Council direction of April 2015, staff will include a new Safety and Noise Element. This will modify the PTC proposed structure of the element. Contents of both existing Noise and safety sections are moved to the new Safety and Noise Element. Hazardous Waste GOAL N‐6: An Environment Free of the Damaging Effects of Biological and Chemical Hazardous Materials. Consolidated existing Goals N6 and N7 to Goal N4: Solid and Hazardous Waste. This goal has been rewritten to include efforts by the City to strive for Net Zero solid waste generation by maximizing recycling and composting efforts. Additional new policies on educating residents and developers on available City incentives to reduce carbon footprints are included in this goal. Solid and Hazardous Waste GOAL N4: Strive for zero solid waste generation and an environment free of the harmful effects of hazardous and toxic materials. Solid Waste GOAL N‐7: Reduced Volumes of Solid Waste; Solid Waste Disposed in an Environmentally Safe, Efficient, Manner. Noise GOAL N‐8: An Environment That Minimizes the Adverse Impacts of Noise. Based on City Council’s discussion in April 2015, a separate Safety and Noise element is recommended and can incorporate this Goal. Noise Level Mitigation and Reduction GOAL N6: Reduce environmental pollutants to protect and enhance air quality and to reduce ambient noise levels in every neighborhood. Energy GOAL N‐9: A Clean, Efficient, Competitively‐ priced Energy Supply That Makes Use of Cost‐ effective Renumbered and renamed existing Goal N9 to Goal N3: Energy Sources and Conservation. This goal carries over all existing policies and programs in Energy Sources and Conservation GOAL N3: Move towards a clean efficient energy supply that makes use of new technologies and Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 40 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Renewable Resources. addition to new policies on maximizing use of photovoltaic energy, as well as other renewable energy sources. cost‐effective renewable resources and promote energy conservation. Natural Hazards GOAL N‐10: Protection of Life and Property From Natural Hazards, Including Earthquake, Landslide, Flooding, and Fire. Based on City Council’s discussion in April 2015, a separate Safety and Noise element is recommended and can incorporate this Goal as well as one addressing community safety and emergency management. Resiliency and climate adaptation can also be addressed. This goal was previous Goal 8 of the PTC revised Natural Environment Element. On City Council’s direction this goal has been moved to the new Safety and Noise Element. This goal includes new policies and programs on educating the community and creating awareness to prevent loss of life and property from all types of disasters, community safety and emergency management. NEW Community Safety and Emergency Management GOAL N8: Develop and coordinate a plan for fire, police protection and effective emergency preparedness and response.  Public Awareness and General Safety Measures  Fire Protection and Awareness  Community Safety  Emergency Management This goal was previous Goal 10 of the existing Natural Environment Element. On City Council’s direction this goal has been moved to the new Safety and Noise Element. This goal includes policies and programs on earthquake safety, flood hazards and mitigation, and other natural disasters. Natural Hazards GOAL N7: Protect life, ecosystems, and property from natural and man‐made hazards and disasters, including earthquake, landslides, flooding, fire, and hazardous materials. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 41 BUSINESS and ECONOMICS ELEMENT Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 42 The Business and Economics Element is not required by State law, but was deemed equally important by authors of the current Comprehensive Plan. Renowned globally for innovation in research and technology, Palo Alto has regional commercial districts and neighborhood shopping centers that play a major role in local quality of life. The Element offers policies that emphasize diversity, growth, and flexibility of businesses, as well as compatibility with adjacent and nearby land uses, including residential neighborhoods. The Current Plan The City has long acknowledged that revenue generation and other positive effects of business growth have the potential to be offset by impacts on the community, especially concerning traffic and parking but also including loss of community character if not properly addressed. Accordingly, the Element calls for modest economic growth in balance with preservation of residential neighborhoods. In addition to growth limits, the City uses zoning, development review, environmental review, coordinated area plans, and other planning tools to maintain compatibility between residential and nonresidential areas. The Business and Economics Element addresses:  Maintaining distinct business districts as a means of retaining local services and diversifying the City’s economic base.  Ensuring that neighborhood shopping areas, including California Avenue, are attractive, accessible, and convenient to nearby residents.  Promoting public/private partnerships as a means of revitalizing selected areas and providing community benefits and services.  Supporting advanced communications infrastructure and other improvements that facilitate the growth of emerging industries.  Encouraging pedestrian‐oriented neighborhood retail along El Camino Real. The Element also recognizes the important role that Stanford University plays in our local economy as the largest employer in Palo Alto and as an incubator of new technologies that have helped make Palo Alto a global leader in innovation. The policy framework in the Element supports Stanford Research Park as a thriving employment district and seeks to sustain Stanford Shopping Center as a major regional commercial attraction. Anticipated Updates for Our Palo Alto 2030 The Business and Economics Element provides an opportunity to highlight the City’s place in the region, as well as the City’s desire to direct growth and change to commercial and mixed‐use areas of the City. Policies can be framed to ensure that economic prosperity does not result in unconstrained growth and unacceptable impacts on Palo Alto neighborhoods. Other policy guidance can address: Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 43  Encouraging entrepreneurship and innovation.  Enhancing and diversifying the retail mix through business retention and attraction.  Developing positive parking solutions for businesses in California Avenue and Downtown.  The new business registry.  Enhancing Palo Alto’s appeal to visitors and tourists.  Potential alternatives to the cumulative cap on non‐residential development in the City and in Downtown (also see the Land Use and Community Environment Element). City Council guidance is required to determine whether the updated plan should maintain the current element’s organizational structure or use the structure of goals recommended by the PTC, and what specific goals should be included. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 44 BUSINESS and ECONOMICS ELEMENT VISION STATEMENT COMPARISON EXISTING PALO ALTO 1998‐2010 COMPREHENSIVE PLAN PTC RECOMMENDATION APRIL 2014 CITY COUNCIL DIRECTION APRIL 27, 2015 BU S I N E S S AN D EC O N O M I C S EL E M E N T “Palo Alto’s business environment will be exciting, dynamic and vital. Businesses will have access to a wide array of support services and will enjoy positive relationships with Palo Alto residents, officials, and City staff. The competing needs of residents and businesses will be balanced so that neighborhoods are protected and enhanced while business districts are competitive and attractive. The local economy will thrive, and a diverse array of goods and services will be provided to Palo Alto consumers. Most development will occur within Palo Alto’s employment areas, and will be consistent with the role and character designated for each area by this Plan.” “Palo Alto supports a culture of innovation and entrepreneurship that welcomes innovators, entrepreneurs, business professionals, the University, visitors and the community. The City’s business policies, balanced economic goals, vibrant downtown, and diverse local and regional‐serving businesses combine to stimulate and support viable business opportunities.” City Council Comments: Majority of the Council members preferred the PTC Vision Statement because of its clarity and felt with some additional language from the existing Vision Statement it can be strengthened. Following are some suggestions made by individual Councilmembers:  Add the following language from the existing Vision Statement, to strengthen it: “The competing needs of residents and businesses will be balanced so that neighborhoods are protected and enhanced while business districts are competitive and attractive.” Based on this input, staff will develop revisions to the PTC’s version for City Council review. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 45 SUMMARY COMPARISON ‐ BUSINESS and ECONOMICS ELEMENT Current Organization BUSINESS and ECONIMICS ELEMENT B1. CITYWIDE: Compatibility B2. Diversity B3. Growth B4. Flexibility B5. Centers • All Centers • Regional Centers University Av./ Downtown, South of Forest Mixed Use Area, Stanford Shopping Center • Multi‐Neighborhood Centers California Av., Cal‐Ventura, El Camino Real, Town & Country Village • Neighborhood Centers B6. All Employment Districts • All Employment Districts Stanford Research Park, Stanford Medical Center, E. Bayshore & San Antonio/Bayshore Corridor Explanation of Revisions The PTC proposed significant updates to both the structure and content of the Business and Economics Element while simultaneously retaining the intent of existing goals, policies and programs. Though the number of goals remains the same in existing and proposed plan, two new goals were added to the element to make it more comprehensive and some goals were consolidated to reduce redundancy and improve clarity. The element also highlights Downtown Palo Alto and California Avenue as two distinct major business centers of the City. The suggested reorganization of the Element’s structure included: • Adding a new goal encouraging innovation and entrepreneurship and another new goal on enhancing Palo Alto’s Visitors and Tourism; • Distributing policies and programs under existing Goal B1 and B2, to Goal B4 and B5: Thriving Retail Districts and Doing Business in Palo Alto; • Consolidating existing Goals B3 and B4 to Goal B5: Doing Business in Palo Alto; • Moving existing Goal B5 to Goal B4: Thriving Retail Districts; • Moving and renaming existing Goal B6 to Goal B3: Palo Alto as a Regional Shopping, Services and Employment Destination • Changing all Goal headings and introducing Sub Sections to improve organizational clarity. Policies were added addressing diversity in retail mix, ground floor retail design guidelines, creating positive parking solutions for Downtown and California Avenue business districts. Policies were also added about enhancing visitor experience in Palo Alto, providing more opportunities for arts, entertainment, and night life. Proposed PTC Revisions BUSINESS and ECONIMICS ELEMENT B1. Encouraging Innovation and Technology (NEW) B2. Business Centers: Downtown and California Avenue (NEW) B3. Palo Alto as a Regional Shopping, Services and Employment Destination • Stanford Shopping Center Stanford Research Park • East Bayshore, San Antonio and East Meadow Circle Area B4. Thriving Retail Districts • Retail Districts: • El Camino Real • South of Forest Mixed Use Area (SOFA) • Town and Country Village • Neighborhood‐Serving Retail Districts: • Mid‐Town • Charleston Shopping Center • Edgewood Plaza • Alma Village B5. Doing Business in Palo Alto • Business and the Community B6. Visitors and Tourism (NEW) Note: Staff believes that either organizational structure will work as a framework for a robust set of policies and programs. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 46 DETAIL SUMMARY‐ BUSINESS and ECONOMICS ELEMENT GOALS Current Goals Explanation of Proposed Revisions Proposed PTC Goals This is a new goal encouraging entrepreneurship, in support of Palo Alto’s image as a global center for innovation. NEW Encouraging Innovation and Technology GOAL B1: Foster the next generation of entrepreneurship in Palo Alto that builds on the City’s legacy of innovation. CITYWIDE: Compatibility GOAL B‐1: A Thriving Business Environment that is Compatible with Palo Alto’s Residential Character and Natural Environment. Consolidated and distributed policies and programs under existing Goal B1 and B2, to Goal B4 and B5: Thriving Retail Districts and Doing Business in Palo Alto. These two goals contain policies and programs on Palo Alto’s neighborhood retail districts, and ways of doing business in Palo Alto. New policies on improving the viability of the El Camino corridor following the guidelines of Grand Boulevard initiative, retaining grocery store and neighborhood serving retails at Alma Plaza is added in Goal 4. Goal 5 includes policies on sustainable business practices, encouraging local sourcing of materials to minimize carbon footprint. Thriving Retail Districts GOAL B4: Preserve and improve existing retail districts, and enhance the vitality of businesses that serve Palo Alto’s neighborhoods, commercial districts and visitors Diversity GOAL B‐2: A Diverse Mix of Commercial, Retail, and Professional Service Businesses. Doing Business in Palo Alto GOAL B5: Support businesses that serve our residents, our visitors, and our workers, that provide needed local services and local revenues, and contribute to the economic vitality. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 47 Current Goals Explanation of Proposed Revisions Proposed PTC Goals This is new goal highlights the two important business centers of Palo Alto. New policies include making these two centers as destination shopping center and entertainment center. Policies on making these centers attractive, pedestrian friendly with adequate parking have been added. NEW Business Centers: Downtown and California Avenue GOAL B2: Maintain and enhance the attractiveness of our two primary business centers by supporting an attractive and sustainable mix of commercial and office uses with pedestrian‐oriented neighborhood shopping, dining and entertainment experiences. Growth GOAL B‐3: New Businesses that Provide Needed Local Services and Municipal Revenues, Contribute to Economic Vitality, and Enhance the City’s Physical Environment. Consolidated existing Goals B3 and B4 to Goal B5: Doing Business in Palo Alto. Doing Business in Palo Alto Flexibility GOAL B‐4: City Regulations and Operating Procedures that Provide Certainty and Predictability and Help Businesses Adapt to Changing Market Conditions. Comprehensive Plan Update Comparison Matrix 8.27.2015 Page 48 Current Goals Explanation of Proposed Revisions Proposed PTC Goals Centers GOAL B‐5: Attractive, Vibrant Business Centers, Each with a Mix of Uses and a Distinctive Character. Moved existing Goal B5 to Goal B4: Thriving Retail Districts. Thriving Retail Districts Employment Districts GOAL B‐6: Thriving Employment Districts at Stanford Research Park, Stanford Medical Center, East Bayshore/San Antonio Road Area and Bayshore Corridor that Complement the City’s Business and Neighborhood Centers. Moved and renamed existing Goal B6 to Goal B3: Palo Alto as a Regional Shopping, Services and Employment Destination This goal highlights Palo Alto as regional shopping destination, employment destination. New policies are added to encourage retail and neighborhood service uses in East Meadow Circle, San Antonio and Charleston areas. Palo Alto as a Regional Shopping, Services and Employment Destination GOAL B3: Support Palo Alto’s research parks, shopping centers and employment centers to improve and enhance economic vitality of the region. This is a new goal focusing policies on increasing visitor appeal, providing space for conference centers, art, and entertainment centers. NEW Visitors and Tourism GOAL B6: Enhance Palo Alto’s role as an international attraction to visitors and guests for its cultural, educational and civic appeal. Comprehensive Plan Update Revised DRAFT Schedule Attachment B Showing Citizens Advisory Committee & City Council Meetings/Interaction Revised August 19, 2015 -- Page 1 *All dates and topics subject to change. Additional joint meetings for discussion or City Council direction to the CAC may be scheduled as needed. Citizens Advisory Committee (CAC) Schedule of Meetings & Topics Date* City Council Schedule of Comp Plan Discussions  Selection of Chair/Vice Chair (Action)  Adoption of meeting schedule and CAC ground rules (Action) July 14  Community Services & Facilities Element Policies & Programs (Discussion) Aug 11 Aug 17  CAC membership, ground rules & schedule Aug 31  Additional CAC appointments  Comp Plan Structure & Goals/Vision Statements Part I (Transportation Element)  Revision to Ground Rules RE: Co-Chairs (Action)  Discussion of City Council Direction Regarding Schedule and Subcommittees (Discussion)  Transportation Element Part I Policies & Programs (Discussion) Sep 8 Sep 21  Adoption of Interim Ordinance Establishing an Office Annual Limit in Portions of the City  Ground Floor Retail Preservation Ordinance Regarding Cal Avenue Area Oct 5  Comp Plan Structure & Goals/Vision Statements Part II (Community Services & Facilities Element)  Transportation Element Part II Policies & Programs (Discussion) Oct 20 Nov 2  Comp Plan Structure & Goals/Vision Statements Part III (Land Use & Community Design Element incl. Growth Management Policies) Nov 16  Comp Plan Structure & Goals/Vision Statements Part IV(Safety and Noise, Natural Environment and Business & Economics Elements)  Community Services & Facilities Draft Element Recommendations (Action) Nov 17  Land Use & Community Design Element Part I Policies & Programs (Discussion) Dec 15 January 2016- JOINT MEETING – INTRO TO DRAFT FISCAL STUDY AND DRAFT EIR (Extended Public Comment Period Begins in Jan; Additional Mtgs of the CAC and City Council may be Scheduled) Jan 11  Review of CAC work on Community Services & Facilities Element  Transportation Draft Element Recommendations (Action) Jan 19 FEBRUARY 1 - JOINT MEETING – Housing Element Discussion (Are any changes desired?)  Land Use & Community Design Element Part II Policies & Programs (Discussion) Feb 16 Mar 7  Review of CAC work on Transportation Element  Land Use & Community Design Element Part III Policies & Programs (Discussion) Mar 15 Comprehensive Plan Update Revised DRAFT Schedule Attachment B Showing Citizens Advisory Committee & City Council Meetings/Interaction Revised August 19, 2015 -- Page 2 *All dates and topics subject to change. Additional joint meetings for discussion or City Council direction to the CAC may be scheduled as needed. Citizens Advisory Committee (CAC) Schedule of Meetings & Topics Date* City Council Schedule of Comp Plan Discussions  Natural Environment Element Policies and Programs (Discussion) Apr 19  Land Use & Community Design Draft Element Recommendations (Action) May 17 June 6  Review of CAC work on Land Use Element  Safety and Noise Element Policies & Programs (Discussion) June 21  Natural Environment Draft Element Recommendations (Action) July 19  Business & Economics Element Policies & Programs (Discussion) Aug 16  Safety and Noise Draft Element Recommendations (Action) Sept 20 Oct 3  Review of CAC work on Natural Environment & Safety and Noise  Business & Economics Element Policies & Programs (Action) Oct 18  Implementation Plan (Discussion/Action) Nov 15  Putting it all together/Final Thoughts and Recommendations (Discussion/Action) TBD REVISED DRAFT COMP PLAN DISSEMINATED FOR PUBLIC REVIEW (Starting in November) February 2017  Final Review of Transportation Element March  Final Review of Land Use Element March  Final Review of Natural Environment and Safety and Noise Elements April  Final Review of Business & Economics, Community Services & Facilities Elements April  Review of Implementation Plan May  Final Review of City Council’s Changes & Errata UPDATED COMP PLAN & FINAL EIR ADOPTED May 2017 City of Palo Alto (ID # 6081) City Council Staff Report Report Type: Action Items Meeting Date: 11/2/2015 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Adoption of an Ordinance to Require All Business to Subscribe to Recycling and Compost Service Title: PUBLIC HEARING: Adoption of an Ordinance Amending Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code to Require All Businesses to Subscribe to Recycling and Compost Services and Comply with Refuse Sorting Requirements From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council adopt an ordinance amending Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code (Attachment A) to require all businesses to subscribe to recycling and compost services and comply with refuse sorting requirements. Executive Summary The City’s 80% waste diversion rate is among the highest in the state. However, it has been relatively stagnant since 2010. If the City is to achieve its goal of zero waste to landfills by 2021 then further diversion efforts will be required to improve the City’s diversion rate. Staff is proposing changes to Title 5 (Health and Sanitation) and Title 18 (Zoning) of the Palo Alto Municipal Code with new requirements related to recycling and composting that will be referred to throughout this report as the Recycling and Composting Ordinance. The Recycling and Composting Ordinance would require customers to subscribe to all three services (garbage, recycling and compost) and to sort their waste properly, which will result in a reduction of the City’s greenhouse gas emissions by the equivalent of 22,000 metric tons of carbon dioxide annally. The first phase of the City of Palo Alto Page 2 requirements would go into effect on April 1, 2015. Other Bay Area jurisdictions, such as San Francisco, Cupertino and many cities in Alameda County, have implemented similar ordinances resulting in improved diversion rates. Background Zero Waste Plan Development In 2004, City Council directed staff to develop a zero waste policy and implementation plan for Palo Alto. In 2005, a task force was formed to assist in the creation and development of a zero waste policy and strategic plan to guide City officials in reaching zero waste goals. With input from the community, businesses and industry experts, the Zero Waste Strategic Plan identified key objectives and strategies, including developing policies and incentives to eliminate waste at the source and maximize recycling through expanded collection programs, processing facilities, education, outreach, and technical assistance. In October 2005 Council approved the strategic plan and adopted goals of 73% waste diversion by 2011 and zero waste by 2021 (CMR:382:05). Council also directed staff to develop a Zero Waste Operational Plan (ZWOP) identifying necessary policies, programs and facilities. The ZWOP, completed in June 2007 and approved by City Council on September 17, 2007, outlined many strategies that were included in the GreenWaste of Palo Alto contract implemented in 2009 resulting in a rise in the City’s waste diversion rate from 62% to 80% in 2014. The ZWOP also included a policy recommendation to develop a “mandatory” recycling ordinance as a key strategy to achieve zero waste. Despite the 80% diversion rate, tons of recoverable materials are sent to the landfill each year. A waste characterization study performed in 2012 determined that over 70% of the City’s garbage is recoverable, approximately 21,000 tons of compostable and recyclable material. The study found that food scraps and food soiled paper were the largest constituent elements of recoverable material. The landfilling of compostable materials results in greenhouse gas emissions of equivalent to 5,000 metric tons of carbon dioxide. The landfilling of recyclable materials results in more greenhouse gas emissions. Every aluminum can, plastic bottle, glass jar, cardboard box or piece of paper not recycled results in virgin materials needing to be mined for manufacturing. While some recyclable City of Palo Alto Page 3 materials (~ 18%) are recovered at the Sunnyvale Material and Recovery Transfer (SMaRT) Station, the vast majority of recyclable materials are buried at Kirby Canyon Landfill in south San Jose. This “waste” of recyclable materials results in greenhouse gas emissions estimated at 17,000 metric tons of carbon dioxide equivalent per year. Eliminating these emissions by achieving zero waste is a key component of the City’s Sustainability/Climate Action Plan. Additionally, the State of California through CalRecyle, the state’s regulatory agency that oversees solid waste disposal, has identified “moving organics out of the landfill” as its top priority in achieving the state’s 75% recycling goal. Specifically, the state will require all local governments, by April 1, 2016, to have a program in place to collect organics from entities generating 10 cubic yards or more of organics per week. Key 2015 Zero Waste Initiatives Staff identified three initiatives to increase the City’s waste diversion rate by focusing on compostable materials: 1. Implement a new residential food scraps collection program; 2. Implement a new recycling and composting ordinance; and 3. Extending and adding scope to the GreenWaste contract to manage these new program activities. 2015 Three Zero Waste Initiatives Date Item Staff Report No. March 3 Submitted plan to the Finance Committee Staff Report 5546 March 23 Council approval of Residential Food Scraps Program Staff Report 5558 June 15 Council approval of GreenWaste contract amendment no. 2 Staff Report 5763 Nov 2 Council meeting - first reading on Recycling and Composting Ordinance Staff Report 6081 (this report) TBD Council meeting - second reading on Recycling and Composting Ordinance Staff Report TBD On July 1, 2015, the City began food scraps and food soiled paper collection for single-family residential customers. 18,000 households in the City can now place City of Palo Alto Page 4 their food scraps and food soiled paper directly into the green cart with their yard trimmings. This program is estimated to divert 3,000 tons of compostable materials annually. Current Success and Challenges in Diverting Materials from the Landfill The City’s 80% waste diversion rate from landfills has been remained relatively stable since 2010, meaning that the City will not reach zero waste without addressing the remaining recoverable materials found in garbage. Nearly 70% of what is discarded in the black, garbage container could either be recycled or composted (Figure 1). This is likely due to two factors: (1) not everyone sorts properly and (2) the majority of commercial customers do not subscribe to compost service. City of Palo Alto Page 5 Figure 1: Material Recoverability in Citywide Garbage To address the sorting issue, City staff and GreenWaste Environmental Outreach Coordinators provide signage and training. Encouraging commercial customers to subscribe to compost service, however, presents a different challenge. Since 2009 commercial customers have had the option to subscribe to a voluntary compostable collection service. Over 30% percent of commercial customers, including many of the large corporate campuses and restaurants, subscribe to this optional compost service. This program has been successful in diverting 11,000 tons of food scraps and food soiled paper from the landfill to anaerobically digestion and/or composting. Nonetheless, 7,000 tons of commercially generated compostable material still ends up buried in the landfill. In 2014, staff surveyed many commercial customers who do not have compost service to understand what barriers kept them from subscribing. The majority responded with “compost service was not required.” Despite the fact that nearly all would save on their utility bill, most did not feel that subscribing to compost service was worth the trouble. The GreenWaste contract amendment went into effect on July 1, 2015. The amended and restated contract includes a modification that provides a greater incentive to GreenWaste to collect compostable materials. City of Palo Alto Page 6 Discussion To minimize the amount of material sent to the landfill and reduce greenhouse gas emissions, the Recycling and Composting Ordinance would require all customers to subscribe to recycling and compost service and sort properly. The Recycling and Compost Ordinance proposed by staff (Attachment 1) covers more customers than adopted California State legislation (AB341 and AB1826). With the full implementation of this proposed ordinance, staff anticipates that the City could achieve a diversion rate of over 90%, reaching the zero waste goal. Requiring recycling, compost, and garbage containers for all customers through a modification of the Municipal Code will need to be coordinated with outreach, education and enforcement to ensure that discards are sorted properly. The Proposed Ordinance The Recycling and Composting Ordinance, modifications to Title 5, Chapter 5.20 and Title 18, Chapter 18.23.020 of the Municipal Code (Attachment 1), would require all commercial customers (including multifamily customers), to subscribe to all three waste services and sort discards properly: garbage in the black container, recyclables in the blue container and compostables in the green container. Compliance and Enforcement Around 1,000 commercial customers do not currently subscribe to compost service. These customers will be required to subscribe in three phases based on the amount of waste they produce. All food service establishments and multifamily customers will be included in the first phase. The phases are outlined in the “Timeline” section below. In cases where a separate container is not feasible, staff will work with customers to identify opportunities to share service or determine whether the customer may qualify for a “de minimus” exemption. Compliance activities for not sorting waste in the proper container would range from notifications to additional fees and fines. Single-family customers will not see a change. As is the current procedure, customers would receive notifications (cart tags) if their carts are contaminated. Although no fees or fines will be levied, flagrant contamination could cause GreenWaste to reject their load until contaminants are removed. City of Palo Alto Page 7 Multifamily customers would not be subject to fees or fines like single-family customers, provided the complex has easily accessible containers and signage for all recyclables, compostables and garbage. Should managers/owners of multi- family buildings fail to provide appropriate containers and signage, the owner would be subject to the same fees and enforcement actions for commercial customers. Proposed Compliance Process For Commercial Customers: Incidents Compliance Action (Commercial Customers Only) 1 Cart Tag – Notifies customer of contamination. The material in the container will still be collected. 2 A representative from GreenWaste will make a site visit and offer to provide training to the customer’s staff, tenants and/or janitorial staff. The material in the container will still be collected. 3 The City would send a letter to the customer including details of the contamination witnessed and previous efforts to resolve the problem and warn of possible fees or fines for future flagrant contamination. The material in the container will still be collected. 4 The customer would have two options: (1) the customer could remove contamination and pay a “return trip” fee as indicted in the commercial refuse rate schedule or (2) the customer could elect not to remove the contamination and pay both a “return trip” fee and an “extra solid waste pick-up” fee for the extra sorting and disposal of the waste. The current fee for a “return trip” is $77.00 and “extra solid waste pick-up” is based on the size and type of container. 5 and beyond The customer would be subject to administrative penalties for non- compliance with the City’s municipal code. Note: GreenWaste reserves the right to not collect recyclable or compostable materials that may jeopardize the integrity of processing equipment and/or the marketability of the materials. City of Palo Alto Page 8 Business and Multi-family Outreach Outreach efforts included a September utility bill insert directing customers to www.cityofpaloalto.org/rc-ordinance and to take a Recycling and Composting Ordinance Survey, as well as staff meetings with the Palo Alto Chamber of Commerce, Downtown Business Association and merchants of California Avenue. These efforts were undertaken in order to increase awareness of the upcoming changes and to better understand potential barriers to compliance. A few themes emerged from the survey and comments at the meetings, including:  Education of proper sorting - focusing efforts on janitorial staff, workers and tenants;  Unauthorized use of customer containers;  Cleanliness - keeping refuse areas clean; and  Responsibility – tenants versus managers/owners for sorting errors and related fees. In response, staff is having GreenWaste broaden outreach to businesses, provide more sorting signage, schedule more sorting trainings and develop an online toolkit for janitorial services, offices and restaurants. GreenWaste is also working with downtown and California Avenue customers to provide bin locks where appropriate and identify shared service opportunities to minimize the number of refuse containers in alleys. GreenWaste is offering a low cost “bin wash” service to help customers comply with the cleanliness requirements in the Recycling and Composting Ordinance. To address the “ick-factor” related to food scraps, City staff has identified and is educating customers on best management practices and lessons learned from other communities to avoid creating odors or vector problems. Staff recognizes the challenges of guaranteeing proper sorting where there is no responsibility/accountability for doing so. For multi-family customers, an additional fee will be levied only if managers/owners fail to provide sufficient containers and signage. Staff believes managers/owners have more tools to ensure proper sorting, including adding appropriate language to leases advising tenants of sorting responsibilities and penalties and training janitorial services, with support from GreenWaste, to sort properly. Education and outreach to customers, janitorial staff, workers and tenants will be the primary method of City of Palo Alto Page 9 ensuring compliance. Although most customers surveyed don’t subscribe because it’s not required, they indicated they could comply with the ordinance and sort their refuse properly. Timeline The ordinance will apply to commercial customers and be phased in as follows:  Phase 1: April 1, 2016, all commercial customers generating 8 cubic yards of garbage per week, all multi-family customers and all food service establishments would be required to subscribe to compost service. Phase 1 represents about 150 customers that do not currently subscribe.  Phase 2: January 1, 2017, all commercial customers generating 2 cubic yards or more of garbage per week will be required to subscribe to compost service. This phase represents about 220 customers that do not currently subscribe.  Phase 3: January 1, 2018, all commercial customers will be required to subscribe. This phase represents about 600 customers that do not currently subscribe. Staff will develop outreach and provide education focused primarily on those affected at each phase of implementation. Resource Impact Staff estimates that the impact of this Recycling and Composting Ordinance would result in a modest reduction in net income to the Refuse Fund. When this ordinance is fully implemented (in three years), the net impact would be a net income reduction of approximately $78,000 per year. Revenue would be reduced because of customers downsizing their garbage service as they divert compostables to compost service (green container). For the commercial sector, compost service is currently priced at a 10% discount relative to the equivalent- sized garbage container. Of the 70% of commercial customers currently not subscribing to compost service, most could see a reduction in their utility bill if they sort properly and downsize their garbage container. City of Palo Alto Page 10 The following net income estimates to the Refuse Fund are cumulative: Full Year of implementation Per Year Net Income Reduction Year 1 <$43,000> Year 2 <$66,000> Year 3 <$78,000> The above estimates are based on several assumptions, which include estimates of: 1) the amount of tons of compost material diverted from the garbage; and 2) the shift in customer service subscription levels (i.e., reduction in the size of garbage container and increase in the size of the compost and/or recycling container). Staff will continuously review actual costs and revenue information and propose Refuse Rate adjustments as appropriate. Policy Implications Reducing the amount of recyclable and compostable materials landfilled is a key strategy of the Zero Waste Operational Plan and a goal of the Comprehensive Plan and Sustainability/Climate Action Plan. Environmental Review The Recycling and Composting Ordinance, as a key strategy in the Zero Waste Operational Plan, will have a positive impact on the environment by dramatically reducing greenhouse gas emissions – estimated to be the equivalent of 22,000 metric tons of carbon dioxide annally. The additional collection of compostable material using existing collection vehicles and current routes is consistant with previous CEQA reviews. The Recycling and Composting Ordinance does not constitute a new or substantially changed project under CEQA. Attachments:  Attachment A - Proposed Ordinance Chapter 5.20 and Chapter 18.23.020 (DOCX) 150807 jb 00710649B 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending and Restating Chapter 5.20 of Title 5 and Amending Section 18.23.020 of Chapter 18.23 of Title 2 of the Palo Alto Municipal Code Pertaining to the Collection, Removal and Disposal of Refuse The Council of the City of Palo Alto does ordain as follows: SECTION 1. Chapter 5.20 of Title 5 of the Palo Alto Municipal Code is hereby amended to read, as follows: "CHAPTER 5.20 COLLECTION, REMOVAL AND DISPOSAL OF SOLID WASTE AND RECYCLABLE MATERIALSREFUSE 5.20.010 Definitions. The following words and phrases, whenever used in this Chapterchapter, shall be construed as defined in this Sectionsection, unless the context indicates otherwise. (1) “Bin” shall means a detachable Solid waste or Recycablerefuse container used in connection with Commercial/industrialcommercial premises with a 1 to 8 cubic yard capacity, equipped with a lid, and designed for mechanical pick-up by collection vehicles. (2) “Box”, sometimes known as a "roll-off" “debris” or "drop" box, means a wheeled or sledded container or compactor, generally 7 to 50 cubic yards in size, suitable for the storage and collection of commercial or industrial Solidsolid waste or Recyclablerecyclable materials. (3) “Cart” means a wheeled containerreceptacle, larger than a Standard container and smaller than a Bin, equipped with a lid, or cap and designed for mechanical pick-up by collection vehicles. (4) “City” means the government of the city of Palo Alto, defined in Section 1.04.050(1) of the municipal code, with a principal place of business at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. (4) “City Landfill” means the City of Palo Alto’s landfill, located at 2380 Embarcadero Road, Palo Alto, California. 150807 jb 00710649B 2 (5) “City Manager” means the City Manager of the City of Palo Alto or the City Manager’s designee. (5) "City manager" means the person referred to in Section 2.08.140 of the municipal code, or designee. (6) “Collection Agreementagreement” means a contract with the Citycity for the collection of Solid waste and Recyclable materials, pursuant to Section 5.20.040. (7) “Collector” means one or more persons authorized underby Section 5.20.040 to provide Solid waste, Recyclable materials, or Solid waste and Recyclable materials the collection, removalprocessing and disposal of refuse servicespursuant to one or more written contracts with the Citycity. (8) “Commercial/industrial business owner” means any person, firm, corporation or other enterprise or organization holding or occupyingoccupying, alone or with others, commercialCommercial/industrial premises, whether or not it is the person holder ofs the title or is the record owner of record of the commercialCommercial/industrial premises. (9) “Commercial/industrial premisess” means allany occupied real property in Palo Altothe cityCity, except property occupied by federal, state or local governmentalgovernmental agencies which do not consent to their inclusion, and except residentialResidential premises, as defined in subsection 27(31) hereof, and shall include, without limitation, any wholesale andor retail establishments, restaurants and food service establishments, bars, stores, shops, shopping center, offices, industrial establishments, manufacturing establishments, service stations, repair, research and development establishments, professional, services, sports or recreational facilitiesfacility, any place or premises where an animal is maintained or sheltered, constructionConstruction or demolition sites, a multiple dwelling that is not a residentialResidential place or premises, and any other commercial or industrial businessess, facilitiesfacility, structures, sites, or other establishments in the cityPalo Alto. (10) “Compostable materials” means organic materials designated by the city as approved for collection and processing, including, without limitation, yard trimmings, food scraps, soiled paper and compostable plastics, but excluding animal manure, sewage, sludge, and human biological wastes. (1011) “Composting” means the controlled, biological decomposition of organic materials into humus for use as a soil amendment, conditioner or fertilizer or for any other similar use or purpose. (1112) “Construction or demolition site” means any real property in the CityPalo Alto, in on or fromat which a building or structure, or any portion thereof, is being constructed, fabricated, assembled, erected or demolished, and which producesduring which 150807 jb 00710649B 3 Constructionconstruction or demolition waste whichis produced and must be removed from the property. (1213) “Construction or demolition Wastewaste” means any Solidsolid waste generated as the result of Constructionconstruction or demolition work, including, without limitation, discarded packaging or containers and waste construction materials, whether brought on -site for fabrication or used in construction or resulting from demolition, excluding liquid waste and hazardous waste. (1314) “Container” means any Standard container, Mini-can container of Cart.bin, box, cart, compactor, drop box, roll-off box, or receptacle, used for the storage of solid waste, recyclable materials, compostable materials or other materials designated by the city for collection by the collector. (1415) “Director” means the Director of Public Works for the City of Palo Altoperson referred to in Section 2.08.190 of the municipal code, or the director'sDirector's designee. (1516) “Disposal or processing facility” means a landfill facility, or a recycling facility, or a composting facility or a solid waste transfer or processing station. (17) “EPA” means the federal Environmental Protection Agency or successor agency. (1718) "Food service establishment" means any establishment, located or providing food within Palo Alto, which provides prepared and ready-to-consume food or beverages, for public consumption, including, but not limited to, any retail service establishment, eating and drinking service (as defined in chapter 18.23), takeout service (as defined in chapter 18.23), supermarket, delicatessen, restaurant, food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or outdoor vendor or caterer which provides prepared and ready-to-consume food or beverages, for public consumption. (1619) “Hazardous waste” means waste defined as hazardous by Public Resources Code section 40141, as it now exists or may subsequently be amended, namely, a waste or combination of wastes, which because ofdue to its quantity, concentration, or physical, chemical or infectious characteristics, may do either of the following: (i) cause or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; (ii) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported, or disposed of, or otherwise managed. "Hazardous waste" includes extremely hazardous waste and acutely hazardous waste, and any other waste as may hereafter from time to time be designated as hazardous by the Environmental Protection Agency ("EPA") or other agency of the United States Government, or by the California Legislature or any agency of the State of California empowered by law to classify or designate waste as hazardous, extremely hazardous or acutely hazardous. 150807 jb 00710649B 4 (1920) “Home composting” means the controlled decomposition of organic material, including, without limitation, yard trimmings and kitchen scraps, into humus by any person owning or occupying any place or premises in Palo Alto. (1721) “Manure” shall means the waste droppings from of any animal. (18) approved by the Director for the placement of manure, which are equipped with substantial lids or covers adequate to keep flies from the interior thereof. No Manure container shall exceed seventy-two cubic feet in capacity. (19) - round, metallic or plastic can with a close fitting cover, handles and side bails with a maximum capacity of twenty gallons or seven and one-half dekaliters, or such other container not larger than a Standard container as may be approved by the Director. (22) “Multifamily property” means any residential premises with 5five or more attached units with shared service. (23) “Organic wastes” means “compostable materials.” (2024) “Person” means any individual, association, firm, partnership, corporation, or any other group or combination thereof acting as a unit or entity referred to in Section 1.04.050(5) of the municipal code and including any general partnership, limited partnership, limited liability partnership, or limited liability company. (2125) “Place or premises” means every Residentialresidential premises and Commercial/industrialcommercial premises, including any structures, apparatus, or portion thereof occupied or operated by any person and situated on an integral parcel of land undivided by a public street, highway, or railway. (2226) “Public Ssolid waste or recycling receptacles” means any containerreceptacles for the collection of solidSolid waste, or recyclingrecyclable materials or composting materials that are both located on public property and intended for use by the general public. (2327) “Recyclable materials” means those materials designated by the city that areas suitable for recycling collection and transport to a material recovery facility for processing into a recycled content product, including, without limitation, newspaper, paper, cans, corrugated cardboard, glass and certain types of plastic, and metals. (2428) “Recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become Solidsolid waste, and returning them to the economic mainstream in the form of raw materials for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. RecyclingThis term does not include transformation, as that term is defined in Public Resources 150807 jb 00710649B 5 Code section 4020140180. (29) “Refuse” means and includes compostable materials, recyclable materials and solid waste. (30) “Refuse service” means the weekly or other periodic collection, processing and disposal of materials properly deposited in the collector-provided containers for solid waste, as well as weekly collection and processing of recyclable materials, weekly collection and processing of compostable materials, ongoing maintenance of the closed Palo Alto landfill, zero waste programs, street sweeping service, the household hazardous waste program, and the annual Clean Up Day event. (25) “Resident” means any person living within the territorial limits of the City of Palo Alto, whether or not the person owns the place or premises which he or she occupies, and any person who is a nonresident employee of the City of Palo Alto, a municipal corporation, and every member of his or her household related by blood, marriage, or adoption or a domestic regular partner. (2631) “Residential householder” means any person or persons holdingowning or occupying residentialResidential premises in the CityPalo Alto, whether or not the owner of the Residential premises. (2732) “Residential premises” means any residential dwelling unit within the CityPalo Alto, including, without limitation, a multiple unit residential complexes, such as a rental housing projects, condominiums, an apartment houses, a mixed condominiums and rental housing, and a mobile home parks, except any multiple dwelling which, with the prior written approval of the Directordirector, receives commercial bin service. (28) “Residential recycling collection” means the process by which Recyclable materials and Yard trimmings are placed at the curb of a residence for collection, removal and disposal. (2933) “Solid waste” shall means all putrescible and nonputrescible solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanating from Residentialresidential premises or Commercial/industrialcommercial premises, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, discarded home and industrial appliances, manure, vegetable or animal carcass solid or semisolid wastes, and other solid and semisolid wastes. “Solid waste” shalldoes not include liquid wastes or sewage, abandoned vehicles, hazardous waste, or rRecyclable materials, or compostable materials. (3034) “Solid waste enterprise” shall mean any individual, partnership, joint venture, 150807 jb 00710649B 6 unincorporated private organization, or private corporationperson regularly engaged in the business of providing Solidsolid waste, compostable materials, or recyclable materials handling services. (31) “Solid waste or recyclable materials handling services” shall mean the collection, transportation, storage, transfer, or processing of Solid waste or Recyclable materials. (32) “Source separated commingled recyclable materials” are Source separated recyclable materials in any combination of two or more Source separated single recyclable materials. (33) “Source separated recyclable materials” means recyclable materials which are separated from solidSolid waste by the generator at the location where it was created, not mixed with or containing more than incidental solidSolid waste, as determined by the directorDirector. (3435) “Source separated single recyclable materials” are Source separatedmeans recyclable materials that can beare separated from other recyclable materials or solid waste and placed in separate containers according to type or category of materials and directly marketed as a distinct single commodity, as determined by the Director. (35) Standard container means a metallic or plastic can with a close fitting cover, handles and side bails of a capacity of more than twenty gallons or seven and one-half dekaliters but not exceeding thirty-two gallons or twelve dekaliters, or such container other than a Mini-can container as may be approved by the Director. (3636) “Yard trimmings” means any plant trimmings generated from the maintenance or alteration of public, commercial premises or residential premises landscapes, including, without limitation, grass cuttings, yard clippings, leaves, tree trimmings, pruning, brush and weeds, excepting those materials which are prohibited under written rules and regulations promulgated by the Directordirector. 5.20.020 Declaration of policy. (a) The accumulation, collection, removal and disposal of Solidwaste, and Recyclable materialsrefuse must be controlled by the Citycity for the protection of the public health, safety and welfare. The Councilcouncil finds that to give practical effect to this policy a comprehensive system for the periodic collection, removal and disposal of Solid waste and Recyclable materialsrefuse from all places or premises is essential and benefits all occupants of places or premises, and, therefore,. allAll such occupants of places or premises are madeshall be liable for the Solid waste and Recyclable materialsrefuse collection charges established by the Councilcouncil for the collection, removal and disposal of Solid waste and Recyclable materialsrefuse. 150807 jb 00710649B 7 (b) The city will comply with the applicable provisions of the California Integrated Waste Management Act, as amended, codified in the Public Resources Code section 40000 et seq. The law requires that, by and after January 1, 2000, fifty percent (50%) of the solid waste generated must be diverted through some source reduction, recycling, and composting activities. (c) The city also will comply with the 75 percent recycling goal included as part of AB 341 Mandatory Commercial Recycling Law, adopted on October 6, 2011, which includes modifications to the Public Resources Code. (d) AB 1826, which amended the law in 2014, imposes organic waste recycling requirements with a mandate that will begin on April 1, 2016. (e) The city may adopt, implement, and enforce requirements, rules and regulations for local compostable materials and local recyclable materials that are more stringent or comprehensive than California law. 5.20.030 Discarding of solid waste, compostable materials, and recyclable materials.. No person shall throw, drop, leave, place, keep, accumulate, or otherwise dispose of any Solid waste or Recyclable materialsrefuse upon private property either with or without the intent to later remove the same from suchthat place or premises, or upon any street, public right-of-way, sidewalk, gutter, stream, or creek, or the banks thereof, or any public place or public property. All persons shall separate their refuse according to its characterization as solid waste, compostable materials, or recyclable materials, and place each type of refuse in a separate container designated for disposal of that type of refuse. No person may mix any type of refuse, or deposit refuse of one type in a collection container designated for refuse of another type, except as otherwise provided in this chapter. This Section shalldoes not prohibit the placement of Solid waste or Recyclable materialsany type of refuse in public Solidsolid waste or recycling receptacles, or in Containers, Bins or Boxescontainers for collection in accordance with the provisions of this Chapter, or at the City Landfill or posted recycling centers in accordance with the procedures thereofchapter. This section does not prohibit any person from engaging in home composting. 5.20.040 Collection, removal and disposal only by authorized persons. (a) The Citycity shall authorize, permit, regulate and control the collection, removal and disposal of all Solid waste and Recyclable materialsrefuse generated at all places or premises. For this purpose, the city may enter into a Collection Agreementcollection agreement with one or more Solidsolid waste enterprises may be entered into by the City with or without advertising for bids. The Collection Agreementcollection agreement shall not be or be deemed or construed as a franchise nor be deemed or construed as such. 150807 jb 00710649B 8 (b) Notwithstanding any permit issued by any other governmental agency authorizing the collection of Solid waste or Recyclable materialsany type of refuse, no person other than a person with a Collection Agreementcollection agreement, or his or her its duly authorized agents or subcontractors, as provided in Section 5.20.070, shall negotiate or contract for, undertake to receive, collect, remove, transport, or dispose of any Solid waste or Recyclable materialstype of refuse from within the CityPalo Alto for a fee, service charge or other consideration therefor, except as specifically provided herein. (c) No person shall interfere in any manner with the lawful operations of the Collectorcollector or the Collector’sits duly authorized agents or subcontractors. (d) Except as otherwise provided in this Chapterchapter, each Residentialresidential householder and Commercial/industrialcommercial business owner shall utilize the services of the Collectorcollector for the collection of Solid waste and Recyclable materialsrefuse from the Residentialplace or premises or Commercial/industrialcommercial premises held or occupied by suchthat owner or occupant and shall pay the fees for such services, the fees as approved by the City Councilcouncil. No Residentialresidential householder or Commercial/industrialcommercial business owner shall enter into an agreement for with a solid waste enterprise for the collection of agreement for Solid waste or recyclable materialsrefuse handling services with any person, firm, or corporation other than the Collector, except as otherwise provided in this Chapterchapter. 5.20.050 No Unauthorized Bins, Boxes, or Containers. (a) Except as expressly authorized by this Chapterchapter 5.20, no person other than a Collectorcollector may place a Bin, Box or Containercontainer within the CityPalo Alto. (b) The Citycity shall notify, in writing, any person who violates this Section 5.20.050that the prompt and permanent removal of suchthe Bin, Box or Containercontainer from the place or premises is required. The Citycity shall deliver suchthe written notice by posting a copy of the notice prominently upon the Bin, Box, or Containercontainer. If the Bin, Box, or Containercontainer is identified withby the name and telephone number of the solid waste enterprise servicing it, as required by Section 5.20.130(e), the Citycity shall also endeavor to contact the enterprise by telephone. The Failurefailure of the city to notify telephonically the owner of the presence of the container at the place or premises telephonically shall not invalidate the notice. The Citycity may impound or cause to be impounded any such Bin, Box or Containercontainer if the same is not permanently removed from the place or premises within the time set forth in the notice, which time shall be not less than twenty-four (24) hours after the posting of the notice, or not less than six (6) business hours after the telephonic notification, if any notice is provided. For purposes of this Section 5.20.050, “business hours" shall means the hours ofbetween 7:00 a.m. toand 6:00 p.m., Monday through Saturday. Any person who violates this Section 5.20.050 shall be liable to the Citycity for all fines and charges 150807 jb 00710649B 9 levied in connection with the collection, transportation, storage and handling of suchthat Bin, Box or Containercontainer by the Citycity. The Bin, Box or Containercontainer impounded by the Citycity shall be retrieved by the owner or his or her representative immediately after all applicable fines and charges have been paid. The City Managercity manager may delegate to the Collectorcollector the authority to impound any unauthorized Bins, Boxes, and Containerscontainer and to collect the fines and charges levied by the Citycity. (c) Upon posting of a written notice of violation upon the unauthorized Bin, Box or Containercontainer, the customerperson using the unauthorized Bin, Box or Containercontainer shall immediately cease placing Solid waste andRecyclable materialsrefuse therein. 5.20.060 Contracting for special hauling services. (a) Any owner, or occupant or tenant of any place or premises may contract with the Collectorcollector or his or her its duly authorized agents or subcontractors, as provided in Section 5.20.070, but not otherwise, for special hauling services for the collection, removal and disposal of Solidsolid waste in excess of the regular services provided by the Collectorcollector. 5.20.070 Use of agents or subcontractors by the collector. (a) The Citycity may provide in any written contract entered into pursuant to Section 5.20.040(a) that the Collectorcollector may designate, in writing, one or more agents or subcontractors who may collect, remove, and dispose of such Solidsolid waste or construction and demolition waste as may be in excess of the regular collection made by the Collectorcollector, subject to the limitations set forth in the Collection Agreementcollection agreement. 5.20.080 Number of solid waste containers required. (a) No personAll persons owning or occupying any place or premises where Solidsolid waste is created, produced or accumulated shall subscribe and pay for this type of refuse service and shall subscribe and pay forfail to procure a sufficient number of cContainers sufficient to hold all Solidsolid waste created, produced or accumulated at or on the place or premises during a one-week period, unless a more frequentdifferent frequency collection schedule has been approved or directed pursuant to this Chapterchapter. (b) Every place or premises shall receive Solid waste service at the automatic service level, unless a person who is duly authorized to represent the place or premises selects a different service level which meets the requirements of this Section. The following automatic service levels shall apply for new customers: 150807 jb 00710649B 10 (1) Single family residential users: one Standard container; (2) Two-family dwellings, three-family dwellings, apartment houses and multiple dwelling buildings: one Standard container per dwelling unit; and (3) Motel, hotel, trailer park or mobile home park: one Standard container per dwelling unit or space. (4) Manufacturing, commercial or institutional establishments: two Standard containers. (c) In determining the sufficiency of the number of Containers required for any of the following places or premises, the following minimum standards shall apply: (1) Single family residential users: one Mini-can container; (2) Two-family dwellings, three-family dwellings, apartment houses and multiple dwelling buildings: one Mini-can container per dwelling unit; (3) Motel, hotel, trailer park or mobile home park: one Standard container per dwelling unit or space; and (4) Manufacturing, commercial or institutional establishments: one Standard container. (b) The charges for solid waste collection service rendered or made available shall be paid for all periods of time during which the place or premises is occupied, regardless of whether or not the owner, occupant or tenant has any solid waste to be collected on any particular collection date during such occupancy. Occupancy shall be presumed unless evidence is presented to the city that gas, electric and water utility services were not provided to the place or premises during such periods. If any place or premises remains unoccupied, the person owning, occupying or renting or leasing the place or premises will be responsible for paying an “unoccupied premises” rate adopted by resolution. Nothing in this Section bars an arrangement or the continuation of an arrangement, by which payments for solid waste collection service are made by an owner, occupant or tenant, or any agent or other person, on behalf of the owner, occupant or tenant. The arrangement will not affect the obligation of the owner, occupant or tenant to pay for solid waste collection service as provided herein. (d) Unless otherwise approved by the Director pursuant to rules and regulations prescribed by the City: Standard containers shall not exceed sixty pounds or twenty-seven kilograms in weight when filled with Solid waste for collection, removal and disposal; Mini-can containers shall not exceed forty pounds or eighteen kilograms in weight when filled with Solid waste for collection, removal and disposal; and Standard containers or Mini-can containers used for Yard trimmings shall not exceed forty pounds or eighteen kilograms in weight when filled for collection, removal and disposal. 5.20.090 Collection and Ownership of Recyclable Materials – Residential Premises. 150807 jb 00710649B 11 (a) The City shall provide a program for the collection of Recyclable materials from Residential premises. For the purposes of this Section, Recyclable materials includes Yard trimmings and any other similar materials designated by the Director. All persons owning or occupying any place or premises where recyclable materials are created, produced or accumulated shall subscribe and pay for this type of refuse services and shall subscribe and pay for a number of containers sufficient to hold all recyclable materials created, produced or accumulated at the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (b) Recyclable materials placed for curbside residential recycling collection in or outside of a container shall become the property of the city collectorat the time of placement at the curb or other designated location for collection in or outside of the container. The Collectorcollector shall have the exclusive right to collect suchthe Recyclablerecyclable materials, unless the collection agreement specifies a different arrangement. (c) The disposal of solid waste and compostable materials in containers designated for the collection of recyclable materials is prohibited. Recyclable materials that are placed in a recyclable materials container for collection by the collector must be free of solid waste and compostable materials. (c) If Recyclable materials placed for curbside residential recycling collection are not placed the Recyclable materials for curbside residential recycling collection is entitled to receive a written explanation pertaining to the failure of the Collector to collect and dispose of the Recyclable materials. It shall be the responsibility of the person who places the Recyclable materials for residential recycling collection to remove the Recyclable materials within twenty- four hours of receipt of the explanation. The Collector is expressly authorized to reject Recyclable materials that are not free of all but incidental amounts of putrescible solid and semisolid wastes, or that are not free of Hazardous Wastes. 5.20.100 Collection and Ownership of RecyclableCompostable materials – Commercial/industrial premises. (a) The City shall provide a program for the collection of Recyclable materials from Commercial/industrial premises. (b) When Recyclable materials are placed in Bins, Boxes, or Containers that the City or the Collection provide for the collection of Recyclable materials, such Recyclable materials shall become the property of the City or the Collector, as the case may be. The City or the Collection shall have the exclusive right to collect Recyclable materials from such Bins, Boxes, or Containers. 150807 jb 00710649B 12 (a) All persons owning or occupying any place or premises where compostable materials are created, produced or accumulated shall subscribe and pay for this type of refuse services and shall subscribe and pay for a number of containers sufficient to hold all compostable materials created, produced or accumulated at the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (b) Compostable materials placed for curbside collection in a container shall become the property of the city at the time of placement at the curb or other designated location for collection of the container. The collector shall have the exclusive right to collect the compostable materials, unless the collection agreement specifies a different arrangement. (c) On or after April 1, 2016, all commercial premises, at which 8 cubic yards or more of solid waste is subscribed per week, multifamily properties, and food service establishments shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the places or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (d) On or after January 1, 2017, all commercial premises, where 2 cubic yards or more of solid waste is subscribed per week, shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (e) On or after January 1, 2018, all commercial premises, at which solid waste is subscribed per week, shall subscribe and pay for a number of containers sufficient to hold compostable materials created, produced or accumulated at or on the place or premises during a one-week period, unless a different frequency collection schedule has been approved or directed pursuant to this chapter. (f) The city may direct the collector to audit individual solid waste streams generated at commercial premises to determine the owner, occupant or tenant’s compliance with this section. 5.20.105 Contamination of containers (a) No person subscribing to refuse service shall dispose or permit the disposal of solid wasteor in a container designated for the collection of recyclable materials and/or compostable materials. The person shall remove any solid waste deposited in the recyclable materials and/or compostable materials container before the collection of the recyclable materials and/or compostable container occurring that week. (1) The collector will notify any person who occupies commercial premises whenever the city or the collector determines the recyclable materials and/or compostable materials container of that person is contaminated with solid waste and the waste must be 150807 jb 00710649B 13 removed. After the person removes the solid waste from the recyclable materials and/or compostable materials contained, the collector will return to the commercial premises to service the container and the person occupying the commercial premises will be charged a “return trip” fee specified in the refuse rate schedules. (2) If the person occupying the commercial premises does not remove the waste from the recyclable materials and/or compostable materials container by the scheduled pick-up date, the container will be serviced at the next business day and the person occupying the commercial premises will be charged both an “extra solid waste pick-up” fee and a “return trip” fee in addition to the refuse charges that apply to the level of service subscribed by the person occupying the commercial premises. The extra solid waste pick-up fee shall be determined according to the size of the contaminated compostable materials container and the established rates approved by the city. (3) The fees outlined in 5.20.105 (a)(1 - 2) will also apply if recyclable materials are placed in containers designated for compostable materials and if compostable materials are placed in containers designated for recyclable materials. (4) On or after July 1, 2021, a person placing recyclable materials and/or compostable materials in containers designated for solid waste will be subject to a “contamination” fee. (5) A person occupying residential premises will not be subject to a “return trip” fee, an “extra solid waste pick-up” fee, or a “contamination” fee. A multifamily property will not be subject to a “return trip” fee or an “extra solid waste pick-up” fee if owners or managers of the multifamily property can demonstrate compliance with Section 5.20.108 to the satisfaction of the director. (b) No commercial grease or cooking oil shall be disposed of in a compostable materials container. 5.20.108 Requirements for owners or managers of multifamily properties and commercial premises. (a) The owner or manager of any multifamily property or commercial premises must provide a level of refuse service sufficient to contain the refuse generated by the owners, occupants, tenants, employees, contractors, and customers of the property or premises. (b) The owner or manager of any multifamily property or commercial premises must provide the number and type of containers at the property or premises sufficient to make the source separation of refuse convenient for the owners, occupants, tenants, employees, contractors, and customers of the property or commercial premises. 150807 jb 00710649B 14 (c) The three types of containers shall: (1) Be appropriate in number and size with respect to the quantity of solid waste, compostable materials, and recyclable materials anticipated to be generated at the property or premises; (2) Bear appropriate signage and be color -coded – blue containers for recyclable materials, green containers for compostable materials, and black containers for solid waste – to identify the type of refuse to be contained and meet any additional design criteria established by the city; and (3) Be placed as close together as practicable to provide equally convenient access to users. (d) The owner or manager of any multifamily property or commercial premises shall provide information or training for new occupants, tenants, employees and contractors, including janitors, on the manner of source separation of solid waste, compostable materials, and recyclable materials. The owner or manager shall provide information or train current occupants, tenants, employees and contractors at least once per calendar year. (e) The owner or manager of any commercial premises or their contractor shall collaborate with on-site janitors to create effective source separation programs. (f) The use of public solid waste, recycling, or composting receptacles by any commercial premises is prohibited. 5.20.109 Requirements for special events (a) The promoter or coordinator of a special event held in Palo Alto must provide a level of refuse service sufficient to contain the refuse generated at the special event. (b) The promoter or coordinator shall provide containers at appropriate locations at the special event to facilitate the source separation of solid waste, compostable materials, and recyclable materials by event employees, vendors, and attendees. (c) The three types of containers shall: (1) Be appropriate in number and size with respect to the quantity of solid waste, compostable materials, and recyclable materials anticipated to be generated at the property or premises; (2) Bear appropriate signage and be color-coded – blue containers for recyclable materials, green containers for compostable materials, and black containers for solid waste – to identify the type of refuse to be contained and meet any additional design criteria established by the city; and 150807 jb 00710649B 15 (3) Be placed together as a waste station to provide equally convenient access to users. No individual containers shall be allowed. (dc) If the promoter or coordinator determines that vendor booths at the special event will require refuse containers, the vendors shall receive from the promoter or coordinator a set of refuse containers that bear appropriate signage and are color -coded to identify the type of waste to be contained. (e) A special event vendor shall be required to: (1) Sell items in containers that are reusable or are either recyclable materials-based or compostable materials-based; (2) Provide drinks and condiments, including, without limitation, sugars, ketchup, mustard, and salad dressings, in bulk supplies instead of in individual packages and servings; (3) Use only compostable materials-based utensils if utensils are necessary to consume food or drink; and (4) Not use or permit the use of single use merchandise bags and expanded polystyrene or Styrofoam™ items. (g) The promoter or coordinator shall provide information or training for special event staff and vendors on the manner of source separation of solid waste, compostable materials, and recyclable materials. For recurring special events, the promoter or coordinator shall provide information or train the vendors at least once a year. (i) The use of public solid waste recycling or composting receptacles at special events is prohibited. The promoter or coordinator shall remove or cover all public solid waste recycling or composting receptacles to prevent their use during the special event. 5.20.110 Exclusions. (a) Residential Householder Exclusion. No provision of this Chapterchapter shall prevent a Residentialresidential householder from collecting and disposing of occasional loads of Solidsolid waste generated in or onat his or herthe Residentialresidential premises, or from composting Yard trimmingsat home, or from selling, donating or disposing of Recyclable materials or compostable materials generated in or on his or herat the Residentialresidential premises. The Containerscontainers provided by the Collectorcollector may not be used for 150807 jb 00710649B 16 activities authorized by this paragraph (a). Notwithstanding the foregoing, no Residentialresidential householder shall employ or engage any Solidsolid waste enterprise, other than the Collectorcollector, to haul or transport Solidsolid waste, compostable materials, or Recyclablerecyclable materials to a Disposaldisposal or processing facility. nor shall anyNo Residentialresidential householder may collect or dispose of Solidsolid waste generated elsewhere than in or on his or herat a location that is not the Residentialresidential premises. (b) Gardener's Exclusion. No provision of this Chapterchapter shall preventbar a gardener, tree trimmer or other person engaged in a similar trade from collecting and disposing of grass cuttings, prunings, and similar materialyard trimmings not containing other Solidsolid waste whenever the collection and disposal are incidental to providing suchthe gardening, tree trimming or similar services. (c) Commercial Source Separated Recyclable Materials and Compostable Materials. (1) Commercial/industrial business owners shall retain the right to donate or sell Recyclablerecyclable materials and compostable materials, or to pay fees for services to Solid solid waste enterprises other than the Collectorcollector for the collection of particular Recyclablerecyclable materials and compostable materials, so long asprovided all the Recyclablerecyclable materials and compostable materials collected are Sourcesource separated single compostable materials and recyclable materials. Glass, tin, aluminum, and plastics can be collected as Source separated commingled recyclable materials. The Director may authorize, by written rules and regulations, collection of other recyclable materials as Source separated commingled recyclable materials. All recyclableRecyclable materials and compostable materials collected pursuant to this paragraph (c) mustshall be takentransported to a recyclingcompostable materials and recyclable materials facility achieving a diversion rate of 90 percent and where not more than ten percent of the materials are, and not disposed of in a landfill. (2) Commercial/industrial business owners shall demonstrate compliance with the provisions of this paragraph (c) uponat the request of the Ddirector. (3) The Citycity may require any recycler, junk dealer or other enterprise engaged in the business of buying and marketing Recyclablerecyclable materials and compostable materials to provide the Citycity with information pertaining to suchthe collection and, including without limitation, the amount of Recyclablerecyclable materials and compostable materials collected from within the City’s Palo Alto’s territorial limits. (d) Collection of Source Separated Single Recyclable Materials. No provision of this Chapterchapter shall prevent a recycler, junk dealer or other enterprise, engaged in the business of buying and marketing Sourcesource separated single recyclable materials in the 150807 jb 00710649B 17 stream of commerce and which buys such materials for marketing and not for disposition in a landfill or transfer station (as defined in Public Resources Code Section 40200), from buying Recyclablerecyclable materials for a monetary or other valuable consideration. ; nor shall any provision of this Chapter prevent suchA recycler, junk dealer or enterprise which buys suchrecyclable materials shall not be prohibited from removing and transporting suchthose materials to a destination for marketing in the stream of commerce. (e) Renovation, Rebuilding, Repairs. No provision of this Chapterchapter shall prevent a Commercial/industrialcommercial business owner from arranging for any worn, spent, or defective equipment, or part thereof, used in suchthe commercial business and requiring renovation, rebuilding, recharging, regeneration or repair, to be picked up, renovated, rebuilt, recharged, regenerated or otherwise restored and repaired and returned to suchthat Commercial/industrialcommercial business owner;. nor shall any provision of this chapterChapter prevent anyAny person engaged in the business of renovating, rebuilding, recharging, regenerating, or otherwise restoring or repairing suchthe equipment or part thereof, is not prohibited from transporting the same from or returning it to the commercial business, or from removing, transporting or disposing of any suchthe equipment, or part thereof, replaced in connection with an equipment repair or service contract. (f) Contractors' Exclusions. In addition to the authority granted by paragraph (c) of this Section 5.20.110, no provision of this Chapterchapter shall prevent a licensed general contractor having a under contract for the demolition or reconstruction of a building, structure, pavement, or concrete installation from marketing any saleable items salvaged from suchthe demolition or reconstruction, or from causing suchthe salvageable items or Constructionconstruction or demolition waste to be removed and transported from the place or premises onat which such waste is generated, pursuant to the provisions of the demolition or construction contract, subject to the following: (1) SuchThe collection, removal and disposal activity shall be performed only by the licensed general contractor having theunder contract for the Constructionconstruction or demolition work that generated suchthe salvageable items or Construction or demolition waste, or by regularly employed personnel carried on the licensed general contractor's payroll records as an employee.; (2) For purposes of this paragraph (f), no Bins or Boxes container that areis detachable from the vehicle that delivereddelivers themthe materials to the Constructionconstruction or demolition site can be used.; and (23) All vehicles used in to carrying outfacilitate the such collection, removal and disposal activities shall be owned by or under the exclusive control of the licensed contractor general contractor and shall meet all of the requirements of this Chapterchapter and all other laws, statutes, rules, regulations and ordinances of the state of California and the Citycity. All 150807 jb 00710649B 18 vehicles shall be subject to inspection by and the approval of the Directordirector from time to time. (g) Reinforced Concrete Exclusion. In addition to the authority granted by paragraph (f) of this Section 5.20.110, nothing in this Chapterchapter shall prevent a Commercial/industrialcommercial business owner, Residentialresidential householder, or licensed general contractor from using a Solidsolid waste enterprise other than the Collectorcollector to dispose of reinforced concrete. (gh) Document Destruction Service. No provision of this Chapterchapter shall prevent any person engaged in the business of destroying or disposing of secret, confidential or sensitive documents from transporting or disposing of suchthose documents, as a part of suchprovided the transport and disposal of the documents are incidental to the document destruction or disposal service. (hi) Self-Haul Exclusion. In addition to the authority granted by paragraph (a) of this Section, nothing in this Chapter shall prevent a Commercial/industrial business owner or Residential householder is not be prohibited from, on a regular basis, collecting and disposing of Solid waste generated in or onat their place or premises, in lieu of availing themselves of the services of the Collector. No Residential householder or Commercial/industrial business owner shall employ or engage any Solid waste enterprise, other than the Collector, to haul or transport such materialsthe solid waste to a Disposal or processing facility. Any Residential householder or Commercial/industrial business owner who pursuant to this paragraph (i) seeks to on a regular basis collect and dispose of Solid waste generated in or on at their premises, must shall first obtain a self-haul permitapproval from of the directorCity, and must comply with the procedures forapplicable to self-hauling that are to be adopted by the City Council by resolution. (ij) General Requirement. In all cases where the right to an exclusion pursuant to this Section is exercised, disposal shall be made at a Disposal disposal or processing facility whichthat meets all applicable regulatory requirements. Any disposal by a person exempted under this Section shall not be relieved such person from of any obligation or liability imposed by this Chapterchapter or any other Citycity ordinance, resolution, rule or regulation for the payment of the minimum Solidsolid waste and Recyclablerecyclable materials disposal rates imposed pursuant to this Chapterchapter, or of rates for the use of the City Landfill, or of any other applicable rates or fees. Notwithstanding the foregoing, any person with a valid self-haul permit obtained pursuant to paragraph (i), and who does not use the Solidsolid waste collection services offered by the Collectorcollector, shall be exempt from the payment of the Solidsolid waste collection rates imposed for use of the services provided by the Collectorcollector. (j) Backhauling Compostable Materials. A commercial business may opt out of the recyclable materials and compostable materials service levels required by this chapter, 150807 jb 00710649B 19 provided that business verifies to the satisfaction of the director all recyclable materials and compostable materials generated on-site will be transported to a central facility to be later recycled or composted and not placed in a landfill. (k) Space Limitations for Existing Structures. Any existing commercial business structure that lacks sufficient storage space for compostable materials or recyclable materials may be exempt from all or portions of this Section in accordance with the written rules and regulations established by the director. The Ddirector, in cases where space constraints are determined to exist, shall also evaluate the feasibility of shared container usage by contiguous businesses or multifamily property structures. (l) De Minimus Exception. The director may waive any of the requirements of Sections 5.20.080, 5.20.090, and 5.20.100 applicable to a collection location if documentation satisfactory to the director, based upon rules and regulations, is provided to establish that the materials in any type of container, on an on-going basis is incidental to any other materials originating from that collection location. 5.20.120 Recycling storage design requirementsRefuse containers. The design of any new, substantially remodeled, or expanded building or other facility shall provide for proper storage, handling, and accessibility which will accommodate the Solid waste and Recyclable materials loading anticipated and which will allow for the efficient and safe collection. The design shall comply with the applicable provisions of Sections 18.22.100, 18.24.100, 18.26.100, 18.32.080, 18.37.080, 18.41.080, 18.43.080, 18.45.080, 18.49.140, 18.55.080, 18.60.080, and 18.68.170 of Title 18 of this Code. (a) All types of refuse containers shall be kept in a sanitary condition with the lids closed or caps secured, except whenever they are being loaded or unloaded. (b) Refuse containers suitable for residential places or premises shall be provided by the collector or the city. Any container shall be of a size based upon the subscription service level requested by the person responsible for the payment of charges therefor or as may be required by this chapter. Any container shall not be loaded with more than the quantity of materials that either can fit in the container with its lid closed or cap secured or is in excess of the weight limit marked on the container, when the lid is closed or the cap is secured. All containers for use at commercial premises shall be provided by or approved by the collector, except for industry -approved grease or cooking oil tallow containers that shall be provided by a designated tallow hauler. (c) Refuse containers shall be collected by the collector whenever the containers are placed in a solid waste enclosure or at the authorized collection area. Collection may be made at another location upon approval of the director, based upon the subscription service level requested. 150807 jb 00710649B 20 5.20.130 Maintenance and placementPlacement of Bins, Boxes, and Containerscontainers. (a) The Commercial/industrialCommercial business owners orand Residentialresidential householders, as the case may be, shall maintain their Bins, Boxes, and Containers oncontainers at their places and premises, and the areas in whichwhere they containers are located, in a good, usable, clean and sanitary condition, and shall ensure that the lids, caps or and covers on the Bin, Box, or Container iscontainer are kept fully closed, and shall ensure that there is no litter underneath or surrounding the containers. and that noNo Solid waste or recyclableRecyclable materials are refuse shall be placed outside of the Bin, Box, or Containercontainer. Boxes, and ContainersContainers shall at all times be keptmaintained by the commercial business owners and residential householders in a manner that will prevents leakage and, spillage and the escapeemission of odors. Commercial premises sharing receptacles placed outside of retail areas, must also share equally in the responsibility of emptying the receptacles so that they do not overflow and maintaining the area around the receptacles so that it is free of loose litter. (b) The location or placement of Bins, Boxes, or Containerscontainers at any place or premises shall be subject to the approval of the Directordirector. Every Commercial/industrial commercial business owner shall provide a location onat the Commercial/industrialcommercial premises for the Bins, Boxes, and/or Containerscontainers they use, and shall keep the area in good repair. (c) Any Collection Agreementcollection agreement may provide for the rental of approved Bins, Boxes and Containerscontainers approved by the Collectorcollector to customers. The Collectorcollector shall be responsible for maintainingmaintenance of the rental Bins, Boxes and Containerscontainers in good and sanitary condition (ordinary wear and tear excepted) and shall repaint suchthe Bins, Boxes and Containerscontainers at a frequency as may be determined by the Citydirector. The Collectorcollector and the renter shall plan with the customerdetermine and agree upon the placement of the Bins, Boxes, and Containerscontainers in order to minimize traffic, aesthetics and other potential problemseffects that may be associated with their placement. (d) Where a Bin, Box, or Containercontainer is not rented from the Collectorcollector but is rented from another solid waste enterprise approved by the Citycity, the customer renter shall be responsible for ensuringensure that the Bins, Boxes, orContainerscontainer meets the same standards of care, quality and upkeepmaintenance as are applicable to the Bins, Boxes, and Containerscontainer supplied by the Collectorcollector. The renter shall procure the written standards or rules and regulations of the collector prior to renting from another solid waste enterprise. 150807 jb 00710649B 21 (e) AllAny Bins, Boxes, and Containerscontainers of a one cubic yard or moregreater size shall be identified with the name and telephone number of the Collectorcollector or other solid waste enterprise servicing the Bins, Boxes, and Containerscontainer. The container shall be identified by the type of materials that can be deposited in the container. 5.20.140 Frequency of Solid waste refuse collection. (a) The Collector collector or his or herits duly authorized agents or subcontractors shall collect Solid waste refuse from all Residentialresidential places or premises and Commercial/industrialcommercial premises within the City Palo Alto at least once a week, unless the Directordirector authorizes a different frequency of collection as provided in Section 5.20.080, 5.20.090, 5.20.010 and 5.20.180. 5.20.150 Collection hours, quietness of collections, and collection of equipment. (a) Solid waste, and recyclableRecyclable materialsRefuse collections shall be madecollected only between the hours of six6:00 a.m. and six6:00 p.m. in residential districts and at schools, churches, and commercial propertiespremises located in commercial or industrial districts adjacent to residential districts. (b) Solid waste and Recyclable materials collectionsRefuse shall be collected only between the hours of 4:00 a.m. and 9:00 p.m. in commercial districts other than as indicated in subparagraph (a) above shall be made between the hours of four a.m. and nine p.m., subject to suchany reasonable modifications of collection periods as the Directordirector may impose. (c) All collections shall be made as quietly as possible. All trucks and equipment for Solid waste and eRecyclable materialsrefuse collection shall be operated in a manner that comply complies with the provisionsnoise ordinance codified in Chapter 9.10, Title 9 of the Municipal Codethe municipal code. All unnecessarily noisy trucks or equipment for such collections are prohibited. 5.20.160 Litter, Spillage or leakage of Solid waste and Recyclable materialsrefuse. (a) All Solid waste and Recyclable materialstypes of refuse hauled by any person over public streets in the CityPalo Alto shall be securely tied and covered during hauling thereof so asin order to prevent litter and the leakage, spillage, scattering, or blowing or dropping of refuse of any type on to public streets. No person shall allow any Solid waste or Recyclable materials of any kind whatsoevertype of refuse to leak, spill, scatter, blow or drop from any vehicle operated on any public streets within the CityPalo Alto. 150807 jb 00710649B 22 5.20.170 Special permits in hardship cases. (a) Upon a showing of hardship by the owner, or occupant or tenant of a place or premises, the Directordirector may issue or cause to be issued a special written permits authorizing a variancevariations from with the provisions of this Chapterchapter yet the variance will be subject to the imposition of such terms and conditions as the or shedirector may deem necessary to protect the public health, and safety and welfare. 5.20.180 No Accumulation of Solid waste or Recyclable materialsrefuse. (a) EveryNo person shall keep the place or premises occupied by him or her, and every owner of any unoccupied place or premises shall keep the same, in a clean and sanitary condition and shall not cause, suffer or permit any Solid wastetype of refuse to accumulate in, on or about suchat its place or premises for a period in excess of one calendar week, except the Directordirector may authorize by written rules and regulations less frequenta different frequency of collection, removal and disposal of refuse for compactors at Commercial/industrialcommercial premises. This provision shall not be construed to prohibit any person from keepingtemporarily storing building materials in, on or aboutat any place or premises during the period of active construction, reconstruction or repair of a building or structure thereon under a current valid building permit, nor the keepingstoring of wood neatlyin an orderly pile d uponat such the place or premises for household use, nor the keeping of retaining compostable materials for home composting purposes of Yard trimmings. 5.20.190 No Burning, Burialburial, or Dumpingdumping of Solid Waste or Recyclable materialsrestrictions. (a) No person shall burn any Solid waste or Recyclable materialstype of refuse within the City Palo Alto at any time. (b) No person shall bury or dump any Solid waste or Recyclable materialstype of refuse within the Palo Alto. Compostable materials may only be buried on-site byCity, except at the occupant ofperson who occupiesCity Landfill in accordance with the land of the residential place or premises. procedures thereof, at any time. 5.20.200 Hazardous waste. No person shall deposit any Hazardous waste in the City Landfill nor in any Bin, Box, or Container. 5.20.210 Manure Containers required (a) Any and all mManure produced, kept or accumulated within or upon at any place or premises shall be placed without delay in a Manure container. 150807 jb 00710649B 23 (b) All MManure containers shall be kept closed at all times excepting when the manure is being placed into or taken out ofremoved from the Manure containers and shall be kept located at all times in at the rear of the place or premises and not less than one hundred feet or thirty and one-half meters from any residence. (c) Manure may be mixed with and Solid waste may be placed in the same bin, box orStandard container whenever waste and manure will it is to be disposed of with and in the same manner and at the same time as Solid waste, but in such case, provided eachthe bin, box or Standard container so used, including its contents, shalldoes not exceed sixty pounds or twenty-seven kilograms in weight, and shall be is equipped with a lid, cap or cover adequate to keep flies from the interior thereof. 5.20.220 Scavenging prohibited. ( (a) No person shall scavenge in any City-operated Disposal or processing facility, including the City Landfill, nor disturb nor remove any material therein, without the express advance permission of the Director. (ba) No person shall tamper with, modify, scavenge from or deposit Solid waste or Recyclable materials any type of refuse in, any Solid waste or Recyclable materials placed in, any Solid waste or Recyclable materials Bin, Box, or Containerrefuse container which has not been is not provided for his or herthe use of that person, without the permission of the person responsible for owner of the container and the fees therefor under this Containerchapter. ( (cb) Except as otherwise provided in Sections 5.20.1105.20.090 and 5.20.0905.20.110 of this code, no person shall collect the Recyclable materialsany type of refuse originating from any Residentialresidential place or premises or any posted recycling centers within the CityPalo Alto. ((dc) The foregoing prohibitions are in addition to the prohibitions set forth in Section 41950 et seq. of the Public Resources Code. 5.20.230 No Tresppasing in City Landfill No person shall enter, be upon, or remain in the City Landfill, except during the hours of operation posted on the main entrance thereto, or except as may be authorized in advance by the Director. 5.20.240 Schedule of rates for the use of the City Landfill. (a) The schedule of rates for the classification of vehicles carrying the Solid waste and the maximum load for use of the City Landfill shall be set forth in the municipal fee schedule. 150807 jb 00710649B 24 (b) Vehicles operated by the City may be allowed toll-exempt use of the City Landfill. Vehicles operated by any Collector of the City may also be exempt if their contract so provides, and the Collector produces the same for inspection if requested by a City Landfill employee. (c) Vehicles owned by the Palo Alto Unified School district may be allowed toll-exempt use of the City Landfill. 5.20.250 Liability for payment of rates. (b) Except as set forth in Section 5.20.110(h), every person occupying, owning, controlling, or maintaining with residential premises or commercial place or premises within the CityPalo Alto shall be liable for the payment of the refuse service rates, including any Solid waste collection rates authorized by the Citycity. (a) 5.20.260 Penalty for failure to pay collection rate. (a) All collection rates and charges imposed by the Councilcouncil pursuant to the provisions of this Chapterchapter for the collection, removal and disposal of Solid wasteall types of refuse shall be a civil debt owing to the Citycity from the owner, occupant or person maintaining or controlling the place or premises receiving the services. (b) All such collection rates and charges shall may be billed along with other municipal utility bills and, if so billed, shall be subject to the provisions of the City’scity’s utility rates and regulations governing the collection and payment of other utility rates. The city may by agreement permit the collector or other person to collect the applicable rates and charges for refuse service. Notwithstanding the foregoing, fees for the use of drop-boxes may be collected by the Collectorcollector. (c) The collection of the rates imposed pursuant to this chapterChapter shall be in addition to any other remedies available to the cityCity for the failure of any person to pay the rates. 5.20.280 Administration by City Managercity manager. (a) The City Managercity manager or designee, the director, shall adopt suchwritten rules and regulations, not inconsistent with this Chapterchapter, as may be necessary for the proper administration and enforcement of this Chapterchapter. SuchThe written rules and regulations may include, but are not limited to, regulations relating to the required frequency of Solid waste and Recyclable materialsrefuse collection from various types of places or 150807 jb 00710649B 25 premises, the types of special Bins, Boxes, and Containerscontainers required for placement at certain classes of places or premises, and regulations governing the vehicles used in making such collections, and regulations governing the use and operation of the City Landfill. (b) The City Managercity manager shall resolve all disputes concerning the administration or enforcement of this Chapterchapter . Hisand his or her decision in such matters shall be final. 5.20.290 Penalty for violation (a) A Vviolation of any provision of this Chapterchapter shall be subject to the provisions and penalties set forth in TitleChapter 1.08 of this municipal code unless otherwise specified.Code. Notwithstanding the foregoing, in the sole discretion of the City Attorney or City Prosecutor, violation of Sections 5.20.030, 5.20.050, 5.20.130(a), and 5.20.220 may be subject to an administrative penalty pursuant to Chapters 1.12 and 1.16 of this Code, in lieu of any other legal remedy, criminal or civil." SECTION 2. Section 18.32.020 of Chapter 18.23 of Title 18is hereby amended to read, as follows: 18.23.020 Trash Disposal and RecyclingRefuse disposal areas (A) Purpose Assure that development provides adequate and accessible interior areas or covered exterior enclosures for the storage of trash and recyclable materialsrefuse in appropriate containers with storage capacity for a maximum of one week, and that trash refuse disposal and recycling areas structures and enclosures are located as far from abutting residences as is reasonably possible. (B) Requirements (i) Trash disposal and recyclable areas Refuse disposal and structures and enclosures shall be accessible to all residents or users of the property. (ii) Compostable materials and recyclable materialsRecycling facilities shall be located, sized, and designed to encourage and facilitate convenient use. (iii) Trash disposal and recyclable areas Refuse disposal areas shall be screened from public view by masonry or other opaque and durable material, and shall be enclosed and covered. Gates or other controlled access shall be provided where feasible. Chain link enclosures are strongly discouraged. (iv) Trash disposal and recycling structures Refuse disposal structures and enclosures shall be architecturally compatible with the design of the project. 150807 jb 00710649B 26 (v) The design, construction and accessibility of recyclingrefuse disposal areas and enclosures shall be subject to approval by the architectural review board, in accordance with design guidelines adopted by that board and approved by the city council pursuant to Section 18.76.020. SECTION 3. The Council finds that the adoption of this ordinance is not considered a project under the California Environmental Quality Act or the CEQA Guidelines, therefore, no environmental impact assessment is necessary. // // // // SECTION 4. This ordinance shall be effective on the commencement of the thirty-first day after the date of its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: 150807 jb 00710649B 27 ATTEST: _________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ______________________________ Deputy City Attorney City Manager ______________________________ Director of Public Works ______________________________ Director of Administrative Services Department