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2016-08-29 City Council Agenda Packet
City Council 1 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. August 29, 2016 Special Meeting Council Chambers 7:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 10 days preceding the meeting. 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 7:00-7:25 PM 1.Adoption of Resolutions Expressing Appreciation to Steve Eglash, Jonathan Foster and Garth Hall Upon Completion of Their Terms as Utilities Advisory Commissioners Agenda Changes, Additions and Deletions City Manager Comments 7:25-7:35 PM Oral Communications 7:35-7:50 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. Minutes Approval 7:50-7:55 PM 2.Approval of Action Minutes for the August 15, 2016 Council Meeting REVISED 2 August 29, 2016 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. Consent Calendar 7:55-8:00 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3.Adoption of a Resolution Approving an Assignment, Assumption and Consent Agreement With Mercuria Energy America Inc. and EDF North America LLC, and Finding That the Agreement's Approval is not a Project Requiring California Environmental Quality Act Review 4.Approve and Authorize the City Manager to Execute a Contract With Advanced Design Consultants, Inc., in an Amount Not-to-Exceed $160,701 for Design Services for the Ventura Building, Capital Improvements Program Project PE-15011 5.Acceptance of the Palo Alto Fire Department Quarterly Performance Report for the Fourth Quarter of Fiscal Year 2016 6.Approval of a Contract With Golden Bay Fence Plus Iron Works, Inc. in the Amount of $1,755,510 for the Palo Alto Airport Perimeter Fence and Gate Upgrades, CIP Project AP-16003; Approval of Amendment Number 2 With C&S Engineers, Inc. Contract Number C15155208A to Increase the Contract by $208,329 for a Total Not-to-Exceed Amount of $1,108,329 for Engineering and Design Services; Approval of a Budget Amendment in the Airport Enterprise Fund; and Adoption of Findings That the Project Satisfies the Requirements of the National Environmental Protection Act (NEPA) and California Environmental Quality Act (CEQA) 7.Approval of a Contract With Engineering/Remediation Resources Group, Inc. in the Amount Not-to-Exceed $180,007 for the Municipal Services Center Fuel Station Demolition and Excavation Capital Improvements Program Project VR-14002 and Approval of a Budget Amendment in the Vehicle Replacement and Maintenance Fund 8.SECOND READING: Adoption of an Ordinance Amending Chapter 2.30 [Contracts and Purchasing Procedures] of the Palo Alto Municipal Code to Establish Contracting and Purchasing Procedures and to Define the Contracting Authority of City Officers and Employees (FIRST READING: August 15, 2016 PASSED: 9-0) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 8:00-8:30 PM 9.Adoption of a Resolution Proposing a Storm Water Management Fee of $13.65 per Equivalent Residential Unit (ERU) to Replace the Existing Storm Drainage Fee, Calling a Public Hearing for October 24, 2016 3 August 29, 2016 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. With Respect to Such Fee, Adopting Procedures Relating to the Conduct of a Protest Hearing and Mail Ballot Election, and Adopting a Categorical Exemption Under Section 15061(b)(3) of the California Environmental Quality Act Guidelines 8:30-11:00 PM 10. Policy Discussion on Comprehensive Plan Update EnvironmentalImpact Report Scenarios 5 & 6 (Continued From August 22, 2016) 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 August 29, 2016 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 Additional Council Meetings Sp. City Council Meeting August 30, 2016 Sp. City Council Meeting August 31, 2016 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set 1 Set 2 City of Palo Alto (ID # 7148) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Resolutions for Steve Eglash, Jonathan Foster and Garth Hall Title: Adoption of Resolutions Expressing Appreciation to Steve Eglash, Jonathan Foster and Garth Hall Upon Completion of Their Terms as Utilities Advisory Commissioners From: City Manager Lead Department: Utilities Attachments: Attachment A: Resolution of Appreciation - Steve Eglash (DOC) Attachment B: Resolution of Appreciation - Jonathan Foster (DOC) Attachment C: Resolution of Appreciation - Garth Hall (DOC) RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO STEVE EGLASH, UTILITIES ADVISORY COMMISSIONER WHEREAS, Steve Eglash has served as a Commissioner on the Utilities Advisory Commission from July 2009 through May 2016; and WHEREAS, Steve Eglash has provided dedicated service to the residents and businesses of this community through his carefully reasoned evaluation and balanced assessment of utilities budgets and rates, rate structure design, capital projects and many other utilities policies and practices, employing his extensive knowledge of the utilities industry; and WHEREAS, Steve Eglash provided guidance and insights as the Utilities Department engaged in the development of their 10-year Energy Efficiency Goals, Renewable Portfolio Standard, Utilities Strategic Plan, Long-term Electric Acquisition Plan, Gas Utility Long-term Plan, the 2010 and 2015 Urban Water Management Plan, Local Solar Plan, Carbon Neutral Plan, Utilities Strategic Plan, Utilities Legislative Policy Guidelines and utilities rates for the Electric, Fiber Optics, Natural Gas, Water and Wastewater Collection Utilities; and WHEREAS, Steve Eglash paid particular attention to the policies that dealt with the Utilities Long-term Financial Plans, rates and rate design. He asked penetrating questions about fairness for ratepayers, advocated for effective communication of rate changes and recommended that changes to policies underlying rate design be discussed in advance of the completion of Cost of Service Analyses; and WHEREAS, Steve Eglash provided thorough review of all proposed programs and plans, he requested staff be knowledgeable and well prepared and he provided thoughtful, comprehensive comments and suggestions that were extremely valuable to staff as new programs and plans were developed; and WHEREAS, Steve Eglash’s deep understanding of the utility sector as it underwent significant changes, and his interest in emerging technologies, led to a strengthening of the connection between the City and Stanford University as he introduced staff to professors and different types of research that expanded exposure and understanding of new technologies and trends; and WHEREAS, Steve Eglash willingly engaged the community on many levels, including working directly with Council Members and academics to help shape recommendations for the future of Utilities. NOW, THEREFORE, BE IT RESOLVED, that the City of Palo Alto desires to recognize the meritorious service of Steve Eglash by commending his outstanding public service and records appreciation as well as the appreciation of the citizens of this community for the services and contributions rendered. INTRODUCED AND PASSED: August 29, 2016 ATTEST: APPROVED: _________________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: _________________________________ ________________________________ City Attorney City Manager RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO JONATHAN FOSTER, UTILITIES ADVISORY COMMISSIONER WHEREAS, Jonathan Foster served as a Utilities Advisory Commissioner from July 2009 through May 2016, serving as Vice Chair for two years and Chair for two years; and WHEREAS, Jonathan Foster provided guidance and insight as the Utilities Department engaged in the development of projects such as their 10-year Energy Efficiency Goals, Renewable Portfolio Standard, Utilities Strategic Plan, Long-term Electric Acquisition Plan, Gas Utility Long-term Plan, the 2010 and 2015 Urban Water Management Plans, Local Solar Plan, Carbon Neutral Plan, Utilities Strategic Plan, Utilities Legislative Policy Guidelines and utilities rates for the Electric, Fiber Optics, Natural Gas, Water and Wastewater Collection Utilities; and WHEREAS, Jonathan Foster is known for his dedicated service to the residents and businesses of this community through his enthusiasm, his out-of-the-box thinking and his entrepreneurial approach; and WHEREAS, Jonathan Foster’s passion for sustainability and concern for greenhouse gas emissions is manifested by his advocacy for carbon neutral electric supplies, including the city’s long-term contracts for landfill-gas-to-energy and solar projects, the development of the PaloAltoGreen Gas program and the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program; and WHEREAS, Jonathan Foster supported testing and employing new technology, and he championed the utilities program for emerging technologies to provide a test bed for incoming technologies, bringing to bear his extensive knowledge of both the utilities industry and green technologies. He also expressed early support for the development of the Utilities Smart Grid Road Map; and WHEREAS, Jonathan Foster served on an ad-hoc subcommittee of the Utilities Advisory Commission to review Smart Grid Recommendations and he supported the development of Smart Grid Pilot Programs, including CustomerConnect, the Residential Advanced Meter Pilot Program and the Commercial Demand Response Program; and WHEREAS, Jonathan Foster actively engaged the community on many levels, he worked with Council Members to help shape recommendations for utilities, respectfully considered concerns raised by the public, and was always willing to listen to different points of view. NOW, THEREFORE, BE IT RESOLVED, that the City of Palo Alto desires to recognize the meritorious service of Jonathan Foster by commending his outstanding public service, as well as the appreciation of the citizens of this community for the services and contributions rendered. INTRODUCED AND PASSED: August 29, 2016 ATTEST: APPROVED: __________________________________ __________________________________ City Clerk Mayor APPROVED AS TO FORM: __________________________________ __________________________________ City Attorney City Manager RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO GARTH HALL, UTILITIES ADVISORY COMMISSIONER WHEREAS, Garth Hall served as a Utilities Advisory Commissioner from April 2012 through May 2016 and contributed to the Utilities Advisory Commission through the use of his experience as a staff person for public agencies, having a thorough understanding of the role of an advisory board and by displaying a respectful attitude toward staff; and WHEREAS, Garth Hall provided dedicated service to the residents and businesses of this community by means of a thorough review of utilities budgets and rates, rate structure design, capital projects and many other utilities policies and practices, all the while employing his extensive knowledge of financial analysis, business strategy and experience of public agencies; and WHEREAS, Garth Hall provided guidance and insight in the development of the Carbon Neutral Plan, the Local Solar Plan, the redesign of the PaloAltoGreen Program, the Utilities Legislative Policy Guidelines and utilities rates for Electric, Natural Gas, Water and Wastewater Collection Utilities; and WHEREAS, Garth Hall volunteered for extra assignments as a Commissioner by participating on ad-hoc subcommittees charged with establishing a new program to test emerging technologies, examining how to speed up the undergrounding of electric distribution lines and evaluating a second electric transmission pathway to improve reliability; and WHEREAS, Garth Hall applied his extensive expertise in water resource planning and evaluation as a Utilities Advisory Commissioner; and WHEREAS, Garth Hall’s consideration of concerns raised by the public and his willingness to listen to different points of view made by staff and the Commission often resulted in the Commission’s joint recommendation, which resulted in decisions adopted by the City Council. NOW, THEREFORE, BE IT RESOLVED, that the City of Palo Alto desires to recognize the meritorious service of Garth Hall by commending his outstanding public service, as well as the appreciation of the citizens of this community for the services and contributions rendered throughout his position on the Utilities Advisory Commission. INTRODUCED AND PASSED: August 29, 2016 ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor APPROVED AS TO FORM: ________________________________ ________________________________ City Attorney City Manager CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 29, 2016 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the August 15, 2016 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: Attachement A: 08-15-16 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Regular Meeting August 15, 2016 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:06 P.M. Present: Berman, Burt, DuBois, Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Agenda Changes, Additions and Deletions None. Minutes Approval 1. Approval of Action Minutes for the June 20, 27 and 28, 2016 Council Meetings. MOTION: Vice Mayor Scharff moved, seconded by Council Member Kniss to approve the Action Minutes for the June 20, 27 and 28, 2016 Council Meetings. MOTION PASSED: 9-0 Consent Calendar MOTION: Council Member Wolbach moved, seconded by Council Member DuBois, third by Council Member Holman to pull Agenda Item Number 11- Acceptance of the Downtown Residential Preferential Parking (RPP)… to be heard on September 6, 2016. MOTION: Vice Mayor Scharff moved, seconded by Council Member Kniss to approve Agenda Item Numbers 2-10, 12-15. DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 8/15/16 2. Resolution 9613 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing Overtime and Portal to Portal Pay for Deployments Away From the City of Palo Alto.” 3. Finance Committee Recommends Adoption of an Ordinance Amending Chapter 2.30 [Contracts and Purchasing Procedures] of the Palo Alto Municipal Code to Establish Contracting and Purchasing Procedures and to Define the Contracting Authority of City Officers and Employees. 4. Approval of Amendment Number 1 to Contract Number S14148347 With North American Youth Activities LLC DBA Kidz Love Soccer Extending the Term to December 31, 2016 and Increasing the Contract Amount by $40,000 for a Total Not-to-Exceed Amount of $295,000. 5. Approval of a Three-year Pilot Contract With Genuine Parts Company in an Amount Not-to-Exceed $2,588,096 for an On-Site Fleet Parts and Inventory Program and Approval of a Budget Amendment in the Vehicle Replacement and Maintenance Fund. 6. Resolution 9614 Entitled, “Resolution of the Council of the City of Palo Alto Determining Underground Utility District Number 47 Property Owners who Elect to pay Underground Conversion Costs Over a Period of Years.” 7. Resolution 9615 Entitled, “Resolution of the Council of the City of Palo Alto Implementing Water Use Restrictions in Stage 1 of the City's 2015 Water Shortage Contingency Plan and Repealing Resolution Number 9509.” 8. Approval of a Limited-Term Site License Agreement for GreenWaste of Palo Alto to Relocate Operations From Geng Road to a Portion of the Former Los Altos Treatment Plant Property on San Antonio Road; Finding of Categorical Exemption for Existing Facilities Pursuant to CEQA Guideline 15301. 9. Approval of Amendment Number 2 to Contract S12142714 With Golder Associates, Inc. for Air Regulatory Support to Extend the Contract Term One Year to September 20, 2017 With no Additional Costs. DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 8/15/16 10. Approval of Amendment Number 2 to the Agreement With the Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to Extend the Term for one Year and add $135,100 to Provide Community Shuttle Service on the Existing Embarcadero Shuttle Route From July 2016 until June 2017. 11. Acceptance of the Downtown Residential Preferential Parking (RPP) Program Phase 2 Status Update and Adoption of a Resolution Amending the Eligibility Area for the Program as Directed by the City Council. 12. Resolution 9616 Entitled, “Resolution of the Council of the City of Palo Alto Approving an Updated FY2017 Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services, Repealing Resolution Number 9604 and Finding That Such Approval is not a Project Subject to California Environmental Quality Act (CEQA) Review.” 13. Resolution 9617 Entitled, “Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2016-17 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N).” 14. Policy and Services Committee Recommendation to Accept the Auditor's Office Quarterly Report as of March 31, 2016. 15. Policy and Services Committee Recommendation to Approve a Soft Transition of the Annual Performance Report to the City Manager's Office and the Office of Management and Budget. MOTION PASSED: 9-0 Action Items 16. PUBLIC HEARING: 411-437 Lytton Avenue [14PLN-00489]. To Consider an Appeal of the Director of Planning and Community Environment’s Architectural Review Approval of the Construction of a new Three Story Mixed-use, Office and Residential Building (Two Units) and a 1,417 SF Addition to an Existing Historic Category 2 Residence on two Lots to be Merged. A two Level Underground Parking Garage is Proposed to be Constructed Under the new Mixed-use DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 8/15/16 Building Adjacent to the Existing Residential Building; Approval of a Mitigated Negative Declaration and Mitigation and Monitoring Plan. Public Hearing opened at 7:47 P.M. Public Hearing closed at 8:26 P.M. MOTION: Council Member Holman moved, seconded by Council Member Kniss to continue the Appeal and require redesign to address the following: The following Findings cannot be made: A. Architectural Review Board Finding Numbers 2, 5, and 6; and B. Context based design criteria: i. (a) 1A, 2A, 2B: i, ii, iii, iv; and ii. (b) 2B, 2C, 2H; and iii. (b) 3B, 3D; and iv. (b) 4, 4A, 4B. SUBSTITUTE MOTION: Vice Mayor Scharff moved, seconded by Council Member XX to deny the project and uphold the Appeal. SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and return to the Architectural Review Board” after “to address the following.” MOTION RESTATED: Council Member Holman moved, seconded by Council Member Kniss to continue the Appeal and require redesign to address the following and return to the Architectural Review Board: The following Findings cannot be made: A. Architectural Review Board Finding Numbers 2, 5, and 6; and DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 8/15/16 B. Context based design criteria: i. (a) 1A, 2A, 2B: i, ii, iii, iv; and ii. (b) 2B, 2C, 2H; and iii. (b) 3B, 3D; and iv. (b) 4, 4A, 4B. MOTION AS AMENDED PASSED: 8-1 Wolbach no Council took a break from 9:18 P.M. to 9:31 P.M. At this time Council heard Agenda Item 18. 18. Adoption of the Public Art Master Plan to Guide Public Art for the Next Decade; Authorize the City Manager to Adopt Policies and Guidelines to Implement the Plan; and Direct Staff to Return With Amendments to the Municipal Code Provisions on Public Art. MOTION: Council Member Berman moved, seconded by Council Member Kniss to: A. Approve the Public Art Master Plan (Plan); and B. Authorize the City Manager to adopt policies and guidelines to implement the Plan (including deaccessioning artwork, gifts of artwork, murals, temporary artwork and artist selection guidelines); and C. Direct staff to return to Council with amendments to the Municipal Code Sections governing public art. MOTION PASSED: 9-0 At this time Council heard Agenda Item Number 17. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 8/15/16 17. Review of the Draft Transportation Element Prepared by the Comprehensive Plan Update Community Advisory Committee. NO ACTION TAKEN 19. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2016 Conference, to be Held October 5-7, 2016 in Long Beach, CA. MOTION: Council Member Berman moved, seconded by Mayor Burt to designate Council Member Kniss as the Voting Delegate and Vice Mayor Scharff as the Alternate Voting Delegate for the 2016 League of California Cities Annual Conference. MOTION PASSED: 9-0 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 11:07 P.M. City of Palo Alto (ID # 7158) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Assignment of Gas Contract with Mercuria to EDF Title: Adoption of a Resolution Approving an Assignment, Assumption and Consent Agreement With Mercuria Energy America Inc. and EDF North America LLC, and Finding That the Agreement's Approval is not a Project Requiring California Environmental Quality Act Review From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt a resolution (Attachment A) to: 1. Approve an Assignment, Assumption and Consent Agreement (Assignment Agreement) with Mercuria Energy America Inc. (Mercuria) and EDF North America, LLC (EDF), making a finding that the Assignment Agreement's Approval is Not a Project Requiring California Environmental Quality Act Review; 2. Waive the application of investment-grade credit rating requirement of section 2.30.340(c) of the Palo alto Municipal Code, which applies to energy companies that do business with the City; and 3. Delegate the City Manager or his designee, the authority to execute on behalf of the City the Assignment Agreement with Mercuria and EDF effectively assigning the Base Contract for Sale and Purchase of Natural Gas (Master Agreement) with Mercuria to EDF. Executive Summary The City of Palo Alto has been doing business with Mercuria since the City’s contract with J.P. Morgan was assigned to Mercuria in September 2015. Council adoption of the attached resolution will authorize the City Manager to execute the attached Assignment Agreement causing the Master Agreement and all outstanding transactions to be assigned to EDF as of September 1, 2016. Background In 2007, the City executed a number of Master Agreements including one with J.P. Morgan to enable gas commodity and related services transactions. The Master Agreements utilize the North American Energy Standards Board template with some additional special provisions. City of Palo Alto Page 2 In 2012, Council approved amendments to the Gas Utility Long-term Plan Objectives, Strategies and Implementation Plan (Resolution 9244), which amendments established the practice of purchasing all gas volumes at monthly and daily index-based market prices and implementing monthly market price-based gas commodity rates for all Palo Alto gas customers effective July 2012. In October 2014, JP Morgan Chase and Company sold to Mercuria a portion of its physical commodities trading business including the entity with which the City engaged in natural gas transactions. In September 2015, Council adopted Resolution 9545 authorizing the City Manager to execute and an agreement causing the Master Agreement to be assigned to Mercuria. On May 16, 2016, Council adopted Resolution 9586 authorizing the City Manager or his designee to purchase a portion of the City’s natural gas requirements from certain prequalified natural gas suppliers under specified terms and conditions during calendar years 2016 through 2022, inclusive, subject to the following limitations: 1. The date for natural gas delivery for each transaction shall not exceed 36 months from the date the transaction is executed; 2. The delivery date for any transaction shall not extend beyond December 2022; 3. The maximum aggregate transaction limit under each Master Agreement shall be $100 million; 4. All transactions are subject to the Palo Alto Municipal Code; and 5. All transactions are subject to the City’s Energy Risk Management Policy, Guidelines and Procedures. Discussion The City engages regularly with Mercuria in natural gas transactions. In August 2016, EDF will purchase the West Coast gas and energy trading operation from Mercuria. Council adoption of the attached resolution will authorize the City Manager to execute the attached Assignment Agreement causing the Master Agreement and all outstanding transactions to be assigned to EDF as of September 1, 2016 and will enable the City to enter into new business transactions with the new entity. According to Palo Alto Municipal Code section 2.30.340(c), gas counterparties “shall obtain and maintain during the term of the contract the minimum credit rating established as of the date of the award of the contract of not less than a BBB- credit rating established by Standard & Poor’s and a Baa3 credit rating established by Moody’s Investors Services”. Because the entity with which the City is contracting is not publically rated, a waiver of this requirement is requested. EDF’s parent company, EDF Trading Limited, is investment grade and is providing a parental guarantee for payment. This meets the requirements in the City’s Energy Risk Management Guidelines which state that if the parent of the counterparty meets the financial City of Palo Alto Page 3 criteria, then that parent must provide a parent guarantee for potential credit exposure the City may incur with the supplier. Resource Impact There is no resource impact resulting from adoption of the proposed resolution. All gas is purchased at monthly and daily index-based market prices through a competitive bidding process involving all Council-approved gas counterparties, and the gas commodity rate varies monthly with the market price. EDF’s financial health is superior to Mercuria’s. Because Mercuria is not a publically-rated company, the City relied on a Letter of Credit to cover any financial risk to which the City may have been exposed. EDF’s parent company is investment grade and is providing a parental guarantee to the City. The level of financial risk for the City is very low due to the short-term nature of the City’s natural gas purchases. Policy Implications Adoption of the attached resolution is in conformance with the Utilities Strategic Plan to negotiate supply contracts to minimize financial risk. Environmental Review Adoption of the resolution approving the Assignment Agreement does not constitute a project for the purposes of the California Environmental Quality Act, under Public Resources Code Section 21065, because approval of the Agreement will not cause a direct or indirect physical change in the environment. Attachments: Attachment A: Resolution Aproving an Assignment, Assumption, and Consent Agreement with Mercuria Energy America Inc. and EDF LLC (DOCX) Attachment B: Assignment, Assumption, and Consent Agreement (PDF) Attachment C: Guarantee (PDF) ATTACHMENT A * NOT YET APPROVED * Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving an Assignment, Assumption, and Consent Agreement with Mercuria Energy America Inc. and EDF North American Trading LLC R E C I T A L S A. In October of 2014, JPMorgan Chase & Company sold to J.P. Morgan Ventures Energy Corporation to Mercuria Energy Gas Trading LLC. B. In September 2015 the Palo Alto City Council adopted Resolution 9545 approving the Assignment, Assumption, and Consent Agreement with J.P. Morgan Ventures Energy Corporation and Mercuria Energy Gas Trading LLC. C. As of August 1, 2016, Mercuria Energy Gas Trading LLC was merged with Mercuria Energy America Inc. (Mercuria) D. Mercuria has been an active counterparty transacting gas commodity and gas commodity-related services with the City. E. The City purchases gas for the portfolio at month and daily index-based prices and changes retail rates monthly to reflect those market prices. F. In August 2016, Mercuria sold its West Coast gas trading business to EDF Trading North American LLC (EDF). G. EDF is not publically rated and is a subsidiary of EDF Trading Limited, an investment grade company. The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council approves the Assignment, Assumption and Consent Agreement (Assignment Agreement) with Mercuria and EDF. SECTION 2. The Council waives the application of the investment-grade credit rating requirement of section 2.30.340(c) of the Palo Alto Municipal Code, which applies to energy companies that do business with the City. SECTION 3. The Council delegates to the City Manager or his designee, the authority to execute on behalf of the City the Assignment Agreement with Mercuria and EDF effectively assigning the Base Contract for Sale and Purchase of Natural Gas (Master Agreement) with Mercuria to EDF. SECTION 4. The Council’s approval of this Assignment, Assumption and Consent Agreement does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant to Public Resources Code Section 21065. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services -1- FORM_EDFT PG (City of Palo Alto) FORM_EDFT PG (EDFTNA-Obligor) v10-14 GUARANTEE EDF Trading North America, LLC (“Obligor”) and City of Palo Alto (“Beneficiary”) have entered into a NAESB Base Contract for the Sale and Purchase of Natural Gas dated March 12, 2007 , (as amended from time to time, the “Master Agreement”), pursuant to which Obligor and Beneficiary have entered and/or anticipate entering into one or more transactions (“Transaction” or “Transactions”), the Confirmation of each of which supplements, forms part of, and will be read and construed as one with, the Master Agreement (collectively referred to as the “Agreement”). For value received, and in consideration of the financial accommodation accorded to Obligor by Beneficiary under the Agreement, EDF TRADING LIMITED, a corporation organized and existing under the laws of England and Wales (“Guarantor”), hereby agrees to the following: (a) Guarantor hereby unconditionally guarantees to Beneficiary the due and punctual payment of all amounts payable by Obligor in connection with each Transaction when and as Obligor’s obligations thereunder shall become due and payable in accordance with the terms of the Agreement (whether at maturity, by acceleration or otherwise) with such amounts not to exceed five million U.S. Dollars (US$5,000,000.00) in the aggregate. Guarantor hereby agrees that within ten (10) business days of written demand by Beneficiary, Guarantor shall pay or cause to be paid any such amounts that are due and payable to Beneficiary. (b) Guarantor hereby agrees that its obligations under this Guarantee constitute a guarantee of payment when due and not of collection. (c) Guarantor hereby agrees that its obligations under this Guarantee shall be unconditional, irrespective of the validity, regularity or enforceability of the Agreement against Obligor (other than as a result of the unenforceability thereof against Beneficiary), the absence of any action to enforce Obligor’s obligations under the Agreement, any waiver or consent by Beneficiary with respect to any provisions thereof, the entry by Obligor and Beneficiary into any amendments to the Agreement, additional Transactions under the Agreement or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor (excluding the defense of payment or statute of limitations, neither of which is waived) provided, however, that Guarantor shall be entitled to exercise any right that Obligor could have exercised under the Agreement to cure any default in respect of its obligations under the Agreement or to setoff, counterclaim or withhold payment in respect of any event of default of Beneficiary, but only to the extent such right is provided to Obligor under the Agreement. Guarantor acknowledges that Obligor and Beneficiary may from time to time enter into one or more Transactions pursuant to the Agreement and agrees that the obligations of Guarantor under this Guarantee will upon the execution of any such Transaction by Obligor and Beneficiary extend to all such Transactions without the taking of further action by Guarantor. (d) This Guarantee shall remain in full force and effect until the earlier of: (i) December 31, 2022, (ii) receipt by Beneficiary of a written notice of termination from Guarantor, or (iii) the date on which the Agreement shall have terminated and none of the obligations of Obligor thereunder remain outstanding. Termination of this Guarantee shall not affect Guarantor’s liability hereunder as to obligations incurred or arising out of Transactions entered into prior to the termination hereof. (e) Guarantor further agrees that this Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time, payment, or any part thereof, of any obligation or interest thereon is rescinded or must otherwise be restored by Beneficiary upon an event of default as set forth in the Master Agreement affecting Obligor. (f) Guarantor hereby waives (i) promptness, diligence, presentment, demand of payment, protest, order and, except as set forth in paragraph (a) hereof, notice of any kind in connection with the Agreement and this Guarantee, or (ii) any requirement that Beneficiary exhaust any right to take any action against Obligor or any other person prior to or contemporaneously with proceeding to exercise any right against Guarantor under this Guarantee. (g) Guarantor shall have no right of subrogation with respect to any payments made under this Guarantee until all obligations of Obligor under the Agreement are paid in full. -2- FORM_EDFT PG (City of Palo Alto) FORM_EDFT PG (EDFTNA-Obligor) v10-14 (h) Guarantor represents and warrants (which representations and warranties shall be deemed to have been made by Guarantor on the date of each Transaction) that: i. Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of England and Wales; ii. Guarantor has the legal capacity and the legal right to execute and deliver this Guarantee and to perform Guarantor’s obligations hereunder; iii. no consent or authorization of, filing with, or other act by or in respect of, any governmental authority and no consent of any other person (including, without limitation, any creditor of Guarantor) is required in connection with the execution, delivery, performance, validity or enforceability of this Guarantee; iv. this Guarantee has been duly executed and delivered by Guarantor and constitutes a legal, valid and binding obligation of Guarantor enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws; v. the execution, delivery and performance of this Guarantee will not violate any provision of the certificate of incorporation, by laws or other organizational documents of Guarantor, or any law, treaty, rule or regulation or determination of an arbitrator, a court or other governmental authority, applicable to or binding upon Guarantor or any of its property or to which Guarantor or any of its property is subject; and vi. Guarantor qualifies as an “eligible contract participant” as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended (7 U.S.C. § 1a(18)). (i) No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege, and no waiver by Beneficiary of any right or remedy hereunder on any one occasion shall be construed as a bar to any right or remedy which Beneficiary would otherwise have on any future occasion. No failure to exercise, nor any delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. (j) If any term, provision, covenant, or condition of this Guarantee, or the application thereof to any party or circumstance, shall be held to be illegal, invalid or unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants and conditions hereof shall continue in full force and effect as if this Guarantee had been executed with the illegal, invalid or unenforceable portion eliminated, so long as this Guarantee as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Guarantee and the deletion of such portion of this Guarantee will not substantially impair the respective benefits or expectations of the parties to this Guarantee. (k) Any demand, notice or other communication in respect of this Guarantee may be given in any manner set forth as follows to the address or number below and will be deemed effective as indicated: (i) if in writing and delivered in person or by courier, on the date it is delivered; (ii) if sent by facsimile transmission, on the date that transmission is confirmed electronically if received before 5:00 p.m., otherwise on the next business day; or (iii) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or its delivery is attempted. As to Obligor or Guarantor: Address: EDF Trading North America, LLC 4700 W. Sam Houston Parkway N. Suite 250 Houston, TX 77041 Attention: Credit Department Fax: 281-653-1550 -3- FORM_EDFT PG (City of Palo Alto) FORM_EDFT PG (EDFTNA-Obligor) v10-14 With a copy to: Address: EDF Trading Limited 80 Victoria Street 3rd Floor, Cardinal Place London, England SW1E 5JL Attention: Robert Quick As to Beneficiary: Address: City of Palo Alto 250 Hamilton Avenue, 3rd floor Palo Alto, CA 94301 Attention: Director of Utilities Phone: (650) 329-2326 (l) This Guarantee is governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws principles. All capitalized terms not defined in this Guarantee, but defined in the Agreement, shall have the meanings assigned thereto in the Agreement. Guarantor and Beneficiary, by its acceptance of this Guarantee, irrevocably submits to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York located in the Borough of Manhattan, New York, or, if such court declines to exercise or does not have jurisdiction, in any New York State court in the Borough of Manhattan, and to service of process by certified mail, delivery to the party at the address indicated in the Guarantee. Further, Guarantor and Beneficiary, by its acceptance of this Guarantee, waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any proceedings relating to this Guarantee. Nothing in the Guarantee precludes either party from bringing proceedings in any other jurisdiction in order to enforce any judgment obtained in any proceeding referred to in this paragraph, nor will the bringing of such enforcement proceedings in any one or more jurisdictions preclude the bringing of enforcement proceedings in any other jurisdiction. IN WITNESS WHEREOF, Guarantor has caused this Guarantee to be executed in its corporate name by its duly authorized officer as of the date set forth below. EDF TRADING LIMITED By: _________________________________ Name: Ronan Lory Title: Chief Financial Officer Date: _________________________________ City of Palo Alto (ID # 7077) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Ventura Building Upgrades Title: Approve and Authorize the City Manager to Execute a Contract With Advanced Design Consultants, Inc., in an Amount Not-to-Exceed $160,701.00 for Design Services for the Ventura Building, Capital Improvements Program Project PE-15011 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve, and authorize the City Manager or his designee to execute Contract No. C17163901, a professional services agreement with Advance Design Consultants, Inc. (Attachment A), in a not-to-exceed amount of $160,701 for the design of Ventura Community Center Buildings Mechanical, Electrical and ADA Upgrades (Capital Improvement Program Project PE-15011), including $146,092 for basic services and $14,609 for additional services. Background The Ventura Community Center is located at 3990 Ventura Court and consists of four buildings constructed in 1955. The buildings (formerly used by Palo Alto Unified School District as an elementary school) are owned by the City of Palo and are currently leased to Palo Alto Community Child Care (PACCC). The Ventura buildings utilize a heat-only mechanical system comprised of in-floor radiant heating with boilers. In the winter of 2013, the radiant floor heating in Building 2 failed, leaving eight rooms at the PACCC without heat. In January 2014, temporary emergency repairs to Building 2 were performed, replacing the failed system with ductless hydronic heating units utilizing the original boiler. The Ventura Community Center was constructed prior to the passage of the City of Palo Alto Page 2 Americans with Disabilities Act (ADA). In January 2016, the City hired SZS Consulting Group (SZS) to evaluate the Ventura buildings for potential non- compliant items and other physical barriers that do not meet current ADA codes. The findings of SZS will be used by Advance Design Consultants, Inc. (ADC) to design corrections to the most critical ADA deficiencies. Discussion Project Improvements The Ventura Community Center is over 60 years old and in addition to the mechanical and electrical systems having reached the end of their useful lives accessibility improvements to comply with ADA requirements must be addressed. The scope of this project is to: (1) upgrade the electrical and mechanical systems servicing the buildings that have reached the end of their useful life expectancy, keeping in mind design proficiency, energy savings, code compliance, and aesthetics as well as a redistribution/increase in receptacles to areas in need, air flow, and the inclusion of air conditioning; (2) upgrade and improve the buildings’ accessibility by addressing deficiencies identified by the ADA Transition Plan Update (mechanical and electrical, fire/life safety, and parking accessibility barriers); and (3) provide structural upgrades if needed to accommodate the mechanical, electrical, and ADA improvements. Purchase Agreement between PAUSD and City of Palo Alto In 1980, the City of Palo Alto purchased the Ventura Community Center property from PAUSD under the terms of the Ventura Purchase Agreement (Agreement). The Agreement gives PAUSD the right to repurchase the property for educational purposes. The Agreement requires the City to notify PAUSD 60 days in advance of making any improvements exceeding a 1980 figure of $100,000, escalated to current dollars using the applicable Construction Index. With escalation, the current figure is approximately $290,000. Under the Agreement, PAUSD is not required to pay the value of any improvements as part of the repurchase price if notice of intent to repurchase is given by PAUSD before the end of the 60-day notification. A notification (Attachment B) was provided PAUSD on July 28, 2016, and the 60-day period ends on September 26, 2016. Consultant Solicitation A Request for Proposals (RFP) for the project was sent to prospective consultants City of Palo Alto Page 3 and posted online on April 27, 2016. The scope of work outlined in the RFP included a study phase, conceptual design phase, construction document phase, and a bid and construction phase. The following table summarizes the results of the solicitation: Summary of Solicitation Process Proposal Description/Number Consulting Services for the Ventura Building Improvements Number of firms notified via email 601 Total Working Days to Respond to Proposal 20 Number of Proposals Received 3 Company Name Location (City, State) Selected for Oral Interview? EDesignC, Inc. San Francisco, CA No Yes Advance Design Consultants, Inc. San Jose, CA Yes Gordon Prill, Inc Mountain View, CA Yes Range of Proposal Amounts Submitted $145,504 - $161,158 An evaluation committee consisting of representatives from Public Works Engineering Services reviewed the proposals, and invited all three firms to participate in oral interviews on June 22, 2016. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP. The evaluation committee selected Advance Design Consultants, Inc. (ADC). ADC was selected because of the depth and quality of their design experience that includes past project experience with the City, exceptional qualifications of their proposed project design team, and the strength of their proposed project design approach. Timeline City of Palo Alto Page 4 The design is scheduled to be completed within 180 calendar days following issuance of the Notice to Proceed. The Ventura buildings will remain functional during the course of the project and construction phase work will be sequenced to minimize impacts on users. If feasible, selected project elements may be accelerated to allow the work to take place during PACCC breaks. Work will be planned in close coordination with PACCC users. Resource Impact Funding for the Ventura Building Improvements Project is available in Capital Improvement Program (CIP) Project PE-15011. Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance or minor alteration of an existing facility. Attachments: A - Contract with Advance Design Consultant- C17163901 FINAL (PDF) B - Written Notice to PAUSD (PDF) CITY OF PALO ALTO CONTRACT NO. C17163901 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ADVANCE DESIGN CONSULTANTS FOR PROFESSIONAL SERVICES This Agreement is entered into on this 22nd day of August, 2016, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ADVANCE DESIGN CONSULTANTS, INC. a California corporation, located at 998 Park Avenue, San Jose, CA, 95126 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to upgrade and improve the building services at the Ventura Community Center located at 3990 Ventura Court, Palo Alto (“Project”) and desires to engage a consultant to Provide mechanical, electrical, and ADA design services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached at Exhibit “B” unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the 1 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Forty Six Thousand Ninety Two Dollars ($146,092). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed One Hundred Sixty Thousand Seven hundred One Dollars ($160,701). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that 2 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. Option B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Lorenzo Rios 3 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 Jr, as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Matt Raschke, Public Works Department, Engineering Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: 650-496-5937, email: Matt.Raschke@CityofPaloAlto.org . The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 4 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business 5 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk 6 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless 7 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR 26.1 CONSULTANT is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate 8 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 9 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 10 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 CONTRACT No. C17163901 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager (Contract over $85k) Purchasing Manager (Contract over $25k) Contracts Administrator (Contract under $25k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) N/A Contracts Administrator (Checklist Approval) ADVANCED DESIGN CONSULTANTS Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: HOURLY RATE SCHEDULE EXHIBIT “D”: INSURANCE REQUIREMENTS 11 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 President Lorenzo Rios Renato O'Neal EXHIBIT “A” SCOPE OF SERVICES Ventura Building Improvements Work Plan CONSULTANT’S scope of services for the Ventura Building Improvement Project consists of six Tasks, which include Architectural, Mechanical, Electrical, Structural Engineering and ADA improvements: 1 Task 1, Study Phase; 2 Task 2, Conceptual Design (30%); 3 Task 3, Construction Documentation (60%); 4 Task 4, Construction Documentation (90%); 5 Task 5, Issue for Permit (100%); 6 Task 6, Bid and Construction Assistance. CONSULTANT’s deliverables will vary depending on the task and recommended improvements to the Mechanical, Electrical and ADA upgrades. CONSULTANT shall attend review meetings with the City staff throughout the project as required. Task 1: Study Phase CONSULTANT understands that the Ventura Community Center is an occupied building and will remain so during the entire design process and through the completion of construction. CONSULTANT will be responsible for surveying all the various departments and end-users that will be utilizing the areas of refurbishment to effectively address their desired needs and concerns. CONSULTANT’s study shall identify three strategies and alternatives that will provide maximum benefit to end-users and optimize the functionality and usefulness of the work spaces. The analysis and resulting recommendations shall take into account feasibility and economics as well as accomplishing with minimum downtime and minimum disruption to the occupants. 1.1 CONSULTANT shall work with the City’s Project Manager to develop the survey strategy, identify the existing conditions and needs, and develop recommended modifications to meet the critical needs. 1.2 CONSULTANT shall perform field investigation of the project site and all existing conditions in conjunction with the findings found in the ADA Transition Plan Update from SZS Consulting Group that may affect the scope of work. CONSULTANT has AutoCAD files of the Ventura Community Center from the emergency repair project that was completed in 2014 and will review any and all additional plans and documentation. 12 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 1.3 CONSULTANT shall survey the adequacy of the existing mechanical and electrical systems and note/rectify any deficiencies while evaluating the condition and required upgrades for each of the systems. 1.4 CONSULTANT shall include strategies and alternatives to replace or retrofit the existing systems and shall describe the feasibility of retrofitting the systems while operating the occupied facility. The analysis and resulting recommendations shall take into account both feasibility and economics. 1.5 CONSULTANT shall explore opportunities to conserve energy through consultations with City’s energy program. 1.6 CONSULTANT shall evaluate the ADA Transition Plan Update and address the requirements to upgrade and/or improve the Ventura Community Center to ADA compliance for the following physical barriers: a) Mechanical and Electrical related barriers; b)Fire/Life Safety barriers; c)Parking barriers including, parking stalls, access aisle, accessible ramp and curb. 1.7 CONSULTANT shall develop a budgetary breakdown for the physical barriers listed in item 1.6 to determine which barriers are reasonably within the Project Budget for corrective action. 1.8 CONSULTANT shall evaluate the structural modifications necessary to improve and/or upgrade the buildings mechanical, and electrical system and for ADA compliance if necessary. 1.9 CONSULTANT shall identify implementation methodologies for the renovation to assist in accommodating existing occupants. Relocation alternatives, rebuilding on a “fast-track” basis, and other alternatives proposed by CONSULTANT shall be considered during this phase to accomplish the work with the least cost and/or minimum disruption to the occupants. 1.10 CONSULTANT shall prepare a draft Study Report summarizing the findings of the Study Phase. CONSULTANT shall present the Study Report to the City’s Project Manager and appropriate departmental managers in the affected work areas for review and comment. Once a decision on approach, alternates, and recommendations is made by the City, the next phase of the project shall commence. Task 2: Conceptual Phase (30%) CONSULTANT’s second task shall be to prepare preliminary design drawings, estimated construction costs and project schedule for the City’s review and comment at 30% design. CONSULTANT shall evaluate all parameters and observations in preparing a conceptual design to accomplish the City’s objectives as outlined in the task described above. 2.1. CONSULTANT shall design a more modern system for efficiency, if feasible, and replace/retrofit outdated equipment such that the building systems get an extended life of 30 or more years. CONSULTANT shall provide a life-cycle analysis of new major pieces of 13 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 equipment and proposed energy efficient equipment. CONSULTANT shall recommend equipment changes and methodologies in change-out while accommodating existing occupants 2.2. CONSULTANT shall provide design to retrofit the physical barriers found in the ADA Transition Plan Update that were addressed in Task 1 Item 1.6 and found to be reasonably within the Project Budget per City’s direction. 2.3. CONSULTANT shall include in design, the structural modification associated with the mechanical, electrical and ADA upgrade and improvements. 2.4. CONSULTANT shall provide a proposed methodology for completing the renovations during time periods of least impact to the functions of the building occupants; along with refining the full scope of the project. 2.5. CONSULTANT shall design improvements to conform to all applicable codes, laws and regulations including the California Building, Mechanical, Plumbing, Electrical, Fire code and ADA standards. 2.6 CONSULTANT shall coordinate and meet with project team, as needed, including Public Works Engineering, Fire, Planning, Building and Utilities Engineering. 2.7. CONSULTANT shall provide (30%) design drawings, demolition drawings, and project schedule including time for permits for City review and approval. 2.8. CONSULTANT shall provide a preliminary engineer’s estimate of the construction cost for City review at the (30%) design stage to aid the City in determining the final scope of work. 2.9. CONSULTANT shall attend meetings after (30%) submission with the City to review the documents submitted and receive comments. 2.10. CONSULTANT shall finalize the Study Report from Task 1 with the recommendation and/or modifications necessary and as discussed with the City. TASK 3: Construction Documentation (60%) The 60% design stage shall further develop the design components of Task 2 and incorporate all city provided design review comments. CONSULTANT shall prepare detailed construction documentation, including drawing and details for each discipline, material, and technical specifications. The drawings and specifications shall be non-proprietary so multiple vendors can bid on the installation. CONSULTANT shall provide an updated project schedule for review, and comment. 3.1. CONSULTANT shall prepare plans and technical specifications, and updated project schedule to the City at (60%) completion for review and comment. 3.2. CONSULTANT shall attend meetings after (60%) submission with the City to review the documents submitted and receive comments. TASK 4: Construction Documentation (90%) The 90% design stage shall include the incorporation of the City’s 60% design review comments and development of the drawing and documentation to permit submission. CONSULTANT shall prepare all construction drawing, technical specifications, and include all known design components for the project. CONSULTANT shall provide an engineer’s estimate, and updated 14 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 project schedule for review, and comment. 4.1. CONSULTANT shall prepare plans and technical specifications, and updated project schedule to the City at (90%) completion for review and comment. 4.2. CONSULTANT shall provide an updated engineer’s estimate for City review at the (90%) design stage. 4.3. CONSULTANT shall attend meetings after (90%) submission with the City to review the documents submitted and receive comments. TASK 5: Issue for Permit (100%) The 100% design phase shall incorporate all city provided design review comments and finalization of all documents to be issued for permit. CONSULTANT shall provide an engineer’s construction cost estimate, and construction schedule. 5.1. CONSULTANT shall provide (100%) drawings, technical specifications and documents to be issued for permit. CONSULTANT shall assist the City in obtaining all building permits, and other permits as applicable, required for implementation of the work. Five to seven sets of signed and stamped plans are typically required for building permit submittal. 5.2. CONSULTANT shall provide a construction estimate and a detailed construction schedule to the City. The construction schedule will include, but not be limited to, equipment lead times for major equipment purchases, any tenant relocations, and temporary equipment and staging as required to minimize disruptions to building occupants. 5.3. CONSULTANT shall attend meeting with the City at (100%) design to review the documents submitted and receive comments. 5.4. CONSULTANT shall prepare any revisions required by building permit plan check and resubmit the necessary number of stamped and signed plan sets. 5.5. Following approval for permit, CONSULTANT shall provide permitted construction drawings and specification for the City’s use. TASK 6: Bid and Construction During the bidding phase of the project CONSULTANT shall provide assistance to City staff (e.g. pre-bid meeting with prospective bidders, issuance of addenda, responding to requests for information or clarification, etc.) and shall assist the City with evaluation of the bids. Upon award of a construction contract to a general contractor, the City will negotiate with CONSULTANT an appropriate scope of work for construction phase services to be provided (e.g. assistance with Requests for Information, review of contractor submittals, review of change order requests, periodic site inspections, preparation of record drawings, etc.). Construction phase services will be added to the CONSULTANT’s contract at the City’s discretion via a contract amendment. At project completion, contractor will provide “as-built” information for CONSULTANT to prepare final record drawings. CONSULTANT shall verify the data provided before preparing the record drawings. Record drawings shall be provided in AutoCAD 2013, PDF format, as well as one set of reproducible drawings. 15 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 DELIVERABLES: Consultant shall submit construction documents including specification in Microsoft Word format and drawings in AutoCad format. Project and Construction Schedules shall be prepared using Microsoft Project. The General Conditions and General Requirements sections of the specifications (including Instructions to Bidders and bid forms) will be provided by City. Task 1 Study Phase •Consultant shall deliver five (5) hard copies and one (1) electronic copy (MS Word and PDF) of the draft Study Report. Task 2 (30% Design) •Five (5) hard copies and one (1) electronic copy (MS Word and PDF) of the Final Study Report. •Five (5) hard copy sets and one (1) electronic copy of the conceptual plans (AutoCad andPDF). •Five (5) hard copy sets and one (1) electronic copy set of the project schedule (MS Project and PDF) and construction estimate (PDF). Task 3 (60% Design) •Five (5) hard copy sets and one (1) electronic copy set of the design plans (AutoCad and PDF) and technical specifications (MS Word and PDF). •Five (5) hard copy sets and one (1) electronic copy set of the project schedule (MSProject and PDF). Task 4 (90% Design) •Five (5) hard copy sets and one (1) electronic copy set of the design plans (AutoCad andPDF) and technical specifications (MS Word and PDF). •Five (5) hard copy sets and one (1) electronic copy set of the project schedule (MS Project and PDF) and construction estimate (PDF). Task 5 (100% Design) •Five (5) hard copy sets and one (1) electronic copy set of the construction estimate (PDF) and construction schedule (MS Project and PDF). •Permit Submittal Set: Five (5) to seven (7) wet signed/stamped hard copy sets and one (1)electronic copy set of the permit submittal plans (AutoCad and PDF), specifications (MS Word and PDF) and calculation (PDF) as required. •Resubmittal Sets as required for permit approval: Five (5) to seven (7) wet signed/stamped hard copy sets and one (1) electronic copy set of the revised plans (AutoCad and PDF), specifications (MS Word and PDF) and calculation (PDF) as required. •Permit Approved Set: Five (5) hard copy sets and one (1) electronic copy set of the permitted plans (AutoCad and PDF), specifications (MS Word and PDF) and calculation (PDF). Task 6 “As-Built” Record Drawings 16 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 •Preparation and delivery of one (1) hard copy (reproducible) and one (1) electronic copy (AutoCad and PDF) of “As-Built” Record Drawings. Proposed Engineering Schedule (NTP + 160 days): The Time of Completion of all services is proposed to be within one-hundred sixty (160) calendar days after issuance of the Notice to Proceed (NTP). Further, CONSULTANT understands the City of Palo Alto may request that certain high-priority components be completed within sixty (60) days after issuance of NTP. Bidding and Construction Support is shown tentative and upon receipt of NTP the schedule will be finalized. 17 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestone Completion No. of Weeks From NTP Kick-Off Meeting 1 Submit BOD 3 BOD Review Meeting 4 Submit IFR30% 6 IFR30% Review Meeting 7 Submit IFR60% 9 IFR60% Review Meeting 10 Submit IFR90% 12 IFR90% Review Meeting 13 Submit IFR(100%) and Review Meeting 15 Submit IFC and Obtain Permit 18 Bidding and Construction Support TBD 18 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services does not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $23,586 (Study Phase) Task 2 $18,114 (Conceptual Design 30%) Task 3 $29,141 (Construction Documentation 60% ) Task 4 $32,620 (Construction Documentation 90%) Task 5 $27,562 (Issue for Permit) Task 6 $11,505 (Bid and Construction) Sub-total Basic Services $142,528 Reimbursable Expenses $3,564 Total Basic Services and Reimbursable expenses $146,092 Additional Services (Not to Exceed) $14,609 19 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 Maximum Total Compensation $160,701.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. 20 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 EXHIBIT “C-1” HOURLY RATE SCHEDULE 1.Principal/Mgr $ 214.10 2. Supervisor $ 149.75 3.Spec Writer $ 128.51 4.Cost Estimator $ 147.62 5.Drafter $ 90.10 6.Architect $ 156.83 7.Architect-Designer $ 108.07 8.Structural Engineer $ 154.46 9.Structural Designer $ 108.07 10.Civil Engineer $ 131.43 11.Geotechnical Engineer $ 131.43 12.Mechanical Engineer $ 131.43 13.Mechanical Designer $ 102.23 14.Electrical Engineer $ 131.43 21 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II.CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III.ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONALINSUREDS” A.PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 22 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASONOTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDECITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATEOF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN(10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP 23 DocuSign Envelope ID: 42AB141C-67EB-44AF-BCF4-05A597505D91 ft City of Palo Alto U Department of Public Works , 1 ,, , , , Engineering PALO ALTO July 28, 2016 Robert Golton Palo Alto Unified School District 25 Churchill A venue Palo Alto, CA. 94306-1099 Subject: 60 Day Work Notice required by Ventura Purchase Agreement Dear Mr. Golton, In accordance with Section 1.H.5 of the 1980 Purchase Agreement between the City of Palo Alto and the Palo Alto Unified School District (P AUSD) for the Ventura Community Center facility, a 60-day written notice is required to be submitted to the PAUSD by the City prior to commencing improvements exceeding $100,000 in value, with the $100,000 threshold to be adjusted annually by an applicable Construction Index beginning in 1981. This 60-day notice of work is to inform PAUSD that improvements to the Ventura Community Center facility that exceed the 2016 adjusted threshold amount of approximately $290,000 are scheduled to begin this September. The improvements to be implemented at the facility include: (1) upgrade the electrical and mechanical systems and their components servicing the buildings that have reached the end of their useful life expectancy, keeping in mind design proficiency, energy savings, code compliance, and aesthetics as well as a redistribution/increase in receptacles to areas in need, air flow and the inclusion of air conditioning; (2) upgrade and improve the buildings' accessibility features as identified in a recent ADA Transition Plan Update survey for the following physical barriers: mechanical and electrical barriers; fire/life safety; and parking accessibility barriers; and (3) provide any structural upgrades that may be needed for the proposed mechanical, electrical and ADA improvements. The design phase of the project is expected to begin in September, and the total budget for the project is $690,000. Some work under the design contract is expected to begin prior to the end of the 60-day notice period. The initial work will be a study and inventory of the existing components along with developing concepts for the new system. If PAUSD decides to initiate the repurchase of this facility during the 60-day period, the design contract will be cancelled immediately. Thank you very much for your attention to this matter. Best Regards, Brad Eggleston Assistant Director of Public Works Engineering Services Division J City of Palo Alto (ID # 7202) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: PAFD Performance Report FY16 Q4 Title: Acceptance of the Palo Alto Fire Department Quarterly Performance Report for the Fourth Quarter Fiscal Year 2016 From: City Manager Lead Department: Fire Recommendation Staff recommends City Council review and accept the Palo Alto Fire Department Quarterly Performance Report for the Fourth Quarter of Fiscal Year 2016. Background and Discussion Last Fiscal Year the Palo Alto Fire Department (PAFD) identified performance reporting as a key initiative, and began reporting on key performance measures quarterly. The report provides overall calls for service information, as well as more detailed information on the key service areas, including Emergency Medical Services, Fire Suppression, Rescue and Hazardous Materials Response, and Fire Prevention. The report also provides information on mutual and automatic aid with our regional public safety partners and internal workforce planning efforts. Performance measures include the following: Calls for Service: This data provides information on the final outcome of all emergency response calls. The data is tracked in the Fire Department’s Record Management System, and uses standardized call type codes, which are defined by the National Fire Incident Reporting System (NFIRS). The report includes overall call volume by primary category, and a detailed listing of call type in the service type sections. Response Times: This aspect measures the time it takes from an emergency call or request for response being created in the dispatch center to the arrival of resources to the scene of the emergency. This information is tracked in the Computer Aided Dispatch (CAD) System, and the performance goals, or service City of Palo Alto Page 2 levels, are set by Council in accordance with county and national standards. Ambulance Transports: The report provides the number of ambulatory transports to hospitals or other medical care facilities, and the proportion of Emergency Medical Calls that included transports. This information is tracked in the Fire Department’s Emergency Medical Record Management System. Fire Containment: This measures the proportion of building and structure fires that are contained to the area or room of origin within Palo Alto and Stanford Campus. Mutual and Automatic Aid: This includes the number and proportion of all incidents in which the PAFD provided aid to neighboring communities, as well as the aid received from neighboring Fire Departments. This information is tracked in the CAD System. Permits: This provides the count of facility, electric vehicle, and solar permits issued by the Fire Prevention Bureau. This information is currently tracked in the Development Center’s Records Management System. Inspections: A count of the total number of Hazardous Materials and State Mandated inspections is provided. In addition, an estimated number of inspections to be completed for the year is also provided to assess overall workload performance to date. Fire and Life Safety Plans Reviewed: This provides a total count of all plans reviewed, as well as the proportion of plans that were reviewed within the time guidelines. Vacancies and Off-Line Employees: This section provides the total number of budgeted full-time equivalent line personnel, current vacancies, and employees that are off line from workers compensation or light duty. This information is obtained from the Fire Department’s Staffing and Scheduling System (TeleStaff), as well as the City’s Personnel Management System. Succession Planning Metrics: This provides the number and proportion of line personnel that are eligible to retire, or will be eligible within the next five years. This information is tracked in the City’s Personnel Management System. This report also provides the total number of hours line personnel have spent in an acting capacity. Personnel serving in an acting capacity are a key component of the Department’s overall succession planning efforts. Acting capacity allows junior officers to learn the responsibilities of higher ranks with guidance from senior officers. This information is tracked in TeleStaff. City of Palo Alto Page 3 Training hours: The total number of training hours completed by all line personnel is provided, as well as the average number of hours per each line personnel on staff. This information is tracked in the Fire Department’s Record Management System. Local, State and Federal mandates require fire personnel to train a minimum of 20 hours per month. Attachments: Attachment A_Coverletter (PDF) ATTACHMENT B_FY16 Q4 Peformance Report_Final (DOCX) Attachment C_Customer Survey (PDF) Attachment D_Thank you letters (PDF) 1 | P a g e Palo Alto Fire Department Quarterly Performance Report Fiscal Year 2016, Fourth Quarter Calls for Service The Palo Alto Fire Department (PAFD) responded to a total of 2,237 calls for service in the fourth quarter of Fiscal Year 2016. This includes responses within Palo Alto, Stanford, and neighboring cities to provide Auto and Mutual Aid. Approximately seventy-eight percent (78%) of calls are generated from Palo Alto, sixteen percent (16%) from Stanford, and the remainder from neighboring cities or requests for regional fire deployment. The majority of calls were for Emergency Medical Services, making up sixty percent (60%) of the responses. Table 1 below shows the main categories of the calls to which PAFD responded. Calls are classified based on the actual event occurred, rather than the initial call request. Table 1. Calls for Service Type FY15 Q4 FY16 Q4 Emergency Medical Service 1347 1352 Good Intent 366 377 False Alarm & False Call 254 281 Service Call 109 118 Rescue & Hazardous Material 43 69 Fire 43 40 Explosion, No Fire 2 0 Grand Total 2164 2237 Good Intent and False Alarm calls make up the second largest types of responses. Most calls for service that may be a true threat of fire, gas or other emergency hazard are actually found to be something else after Firefighters investigate the situation. These calls are coded as Good Intent calls. As well, many fire alarm activations are from causes other than fire or emergency hazard. These situations are categorized as False Alarm calls. Emergency Medical Services Emergency Medical Service (EMS) is the primary service that the Palo Alto Fire Department provides to Palo Alto and Stanford. While this shift toward EMS is being seen across the region, the Palo Alto Fire Department is the only Fire Department in the County that provides ambulance and transport services. Of the 1,352 Emergency Medical Service calls the PAFD responded to in the fourth quarter of Fiscal Year 2016, the overwhelming majority were for medical, trauma and cardiac calls that did not involve a vehicle accident. There was a sizeable fifty-eight percent (58%) increase over the same quarter last year for motor vehicle accidents, with most of those occuring with injuries. 2 | P a g e Table 2. EMS Performance Measures Calls for Service FY15 Q4 FY16 Q4 NFIRS Code Description 321 EMS call, excluding vehicle accident with injury 1275 1235 322 Vehicle accident with injuries 47 86 324 Motor vehicle accident with no injuries 10 16 323 Motor vehicle/pedestrian accident 15 12 381 Rescue or EMS standby 0 3 Total 1347 1352 Transports Number of Transports 990 960 Percent of EMS Calls resulting in transport 73.5% 71.0% Response Times Percent of first responder arriving on scene to EMS calls within 8 minutes 94.4% 90.6% Percent of paramedic responder arriving on scene to EMS calls within 12 minutes 98.7% 98.3% Median response time for first responder arriving on scene to EMS calls 04:51 04:48 Most EMS calls (71%) resulted in an ambulance transport to a local hospital or care facility. This is the primary source of revenue generated from emergency medical services, and revenue received in this quarter is on track with budget projections. Response Time Goal Met: At least 90% of first responder arriving on scene to EMS calls within 8 minutes. This quarter the PAFD first responder arrived on scene to EMS calls within 8 minutes ninety-one percent (91%) of the time. Response Time Goal Not Met: At least 99% of paramedic responder arriving on scene to EMS calls within 12 minutes. This quarter the PAFD paramedic responder arrived on scene to EMS calls within 12 minutes ninety- eight percent (98%) of the time. A slight variance is normal for quarterly data, and the Department typically meets this goal when looking at annual data sets. Fire Suppression Very few of the potential fire calls coming into dispatch turn out to be a real fire once PAFD investigates the scene and cause of the concerning elements. This quarter PAFD responded to 40 calls where fire was present, with 8 occurring in neighboring cities. There were three major fire incidents that occurred during this period, and fortunately only one resulted in a minor injury of a resident and no injuries to first responders. In early April, a neighbor called 911 stating that there was a Fire Alarm going off next door at a house under construction at the 800 block of Boyce Avenue. The Police Department arrived at scene stating there was an odor of smoke present. The call was upgraded to a structure response. Upon entering the structure, the remains of a plastic container was found with rags and some type of paint/oil finishing product cans. All of the contents had combusted and the sprinkler head activation had controlled and extinguished the fire. Engine 63 completed a primary search of the first and second floors, and provided an "all clear." Truck 66 assisted with ventilation of the structure. The sprinkler system was drained and water evacuation was started. 3 | P a g e In late May, Engine 65 responded to a reported post fire investigation at the 4000 block of Miller Court. The residents were awakened by the activation of the smoke detector. A resident’s homemade electric bicycle was found actively burning and the resident began to move it towards the front door in an effort to minimize the impact and extinguish the fire. The fire became too hot and the bike was dropped to the floor. The resident then ran to the kitchen and began filling tubs of water and throwing it on the fire. The resident was able to knock down the flames enough to allow him to throw the bike out of the house through the front door. He then completed fire extinguishment. The family evacuated prior to Engine 65's arrival. The living room sustained water and burn damage to the wood floors, stereo, TV, and couch as well as smoke damage. In late June, Engine 66 and Truck 66 responded to a water flow alarm at the 700 block of Escondido on Stanford campus. Upon investigation, Engine 66 determined a sprinkler had activated in due to a small cooking fire. The sprinkler system extinguished the fire. Engine 66 shut off and drained the sprinkler system and Truck 66 personnel began salvage work. Enigine66 contacted the Resident Advisor and investigated for further damage. Water was found to have leaked into multiple apartments. PAFD replaced the sprinkler head and placed the building sprinkler system back in service, completed salvage work and confirmed that a Stanford Housing salvage crew had been contacted. The resident responsible for the fire received a slight burn to his left hand during the incident. He was examined by a PAFD paramedic and indicated he would seek his own aid for the burn. Table 3. Fire Performance Measures Calls for Service FY15 Q4 FY16 Q4 NFIRS Code Description 113 Cooking fire, confined to container 6 7 142 Brush, or brush and grass mixture fire 1 6 111 Building fire 4 6 154 Dumpster or other outside trash receptacle fire 2 5 150 Outside rubbish fire, other 5 3 140 Natural vegetation fire, other 1 3 131 Passenger vehicle fire 4 2 100 Fire, other 1 1 162 Outside equipment fire 1 1 135 Aircraft fire 0 1 141 Forest, woods or wildland fire 0 1 118 Trash or rubbish fire, contained 9 1 170 Cultivated vegetation, crop fire, other 1 1 143 Grass fire 1 1 112 Fires in a structure, other than a building 0 1 151 Outside rubbish, trash or waste fire 2 0 160 Special outside fire, other 2 0 130 Mobile property fire, other 1 0 112 Fires in structures other than in a building 1 0 163 Outside gas or vapor combustion explosion 1 0 Total 43 40 Response Times Percent of first responder arriving on scene to Fire calls within 8 minutes 86.2% 86.3% Median response time for first responder arriving on scene to Fire calls 05:31 05:39 Fire Containment Percent of building and structure fires contained to the room or area of origin 100% 100% 4 | P a g e Response Time Goal Not Met: At least 90% of first responder arriving on scene to Fire calls within 8 minutes. This quarter the PAFD first responder arrived on scene to Fire calls within 8 minutes eighty-six percent (86%) of the time. While, under the goal this is still an improvement from historical performance on this measure, which is typically near eighty-one percent (81%). The Fire Department has begun an operational readiness initiative that includes measures to reduce response times. Fire Containment Goal Met: At least 90% of building and structure fires contained to the room or area of origin. This quarter there were two building fires within Palo Alto and one on Stanford. In all cases, the fire was contained to the original area. PAFD also responded mutual aid to two building fires in Mountain View. Rescue and Hazardous Materials The Fire Department responded to a total of 69 rescue and hazardous material calls. The most common rescue call is for the removal of victims from a stalled elevator, which accounts for twenty percent (20%) of these call types. Gas leak calls account for the second largest type of call, making up seventeen percent (17%) of the total. Table 4. Rescue and Hazardous Materials Measures Calls for Service FY15 Q4 FY16 Q4 NFIRS Code Description 353 Removal of victim(s) from stalled elevator 5 14 412U Gas leak (natural gas or LPG) - PA Utilities Related 1 9 411 Gasoline or other flammable liquid spill 9 8 331 Lock-in (if lock out , use 511 ) 6 7 440 Electrical wiring/equipment problem, other 2 6 463 Vehicle accident, general cleanup 0 3 444 Power line down 0 3 412 Gas leak (natural gas or LPG) 6 3 400 Hazardous condition, other 0 3 442 Overheated motor 1 3 445 Arcing, shorted electrical equipment 1 2 462 Aircraft standby 0 2 451 Biological hazard, confirmed or suspected 1 1 443 Light ballast breakdown 1 1 421 Chemical hazard (no spill or leak) 1 1 356 High angle rescue 0 1 420 Toxic condition, other 0 1 441 Heat from short circuit (wiring), defective/worn 2 1 410 Flammable gas or liquid condition, other 3 0 413 Oil or other combustible liquid spill 2 0 365 Watercraft rescue 1 0 460 Accident, potential accident, other 1 0 Total 43 69 Response Times Median response time for first responder arriving on scene to Rescue & Hazardous Materials calls 5:43 05:44 5 | P a g e Mutual and Automatic Aid The Fire Department has automatic aid agreements with five regional Fire Departments, including Mountain View, Menlo Park, Woodside, Los Altos, and Santa Clara County Fire. The PAFD primarily provides aid to Mountain View, which is due to the virtual consolidation effort with the cities of Mountain View and Los Altos completed in FY15. The Deputy Chief of Operations communicates regularly with the Mountain View Fire Department to review the agreement and ensure Palo Alto’s resources are not overly relied upon. In this quarter, the PAFD provided mutual or automatic aid to three other jurisdictions on a total of 113 incidents. Five agencies provided mutual or automatic aid for calls within Palo Alto or Stanford on a total of 93 incidents. Table 5. Mutual and Automatic Aid Performance Measures Mutual and Auto Aid Provided FY15 Q4 FY16 Q4 Agency Mountain View Fire 100 88 Santa Clara County Fire 21 24 Menlo Park Fire 0 1 All Mutual and Auto Aid Provided 121 113 Mutual and Auto Aid Received Agency Mountain View Fire 77 68 Menlo Park Fire 18 12 Santa Clara County Fire 4 3 Woodside Fire 4 9 Moffet Fire 0 1 Cal Fire 1 0 All Mutual and Auto Aid Received 104 93 6 | P a g e Fire Prevention The Fire Prevention Bureau ensures compliance with the Fire Code for the safety of occupants and protection of property. Fire Inspectors perform fire sprinkler and fire alarm plan checks, permitting, and field inspections with the goal of ensuring all construction complies with local and national codes. The Bureau continued to build out the records management system (Accela) to meet inspection data storage and billing needs. The fee schedule was completed this quarter and is still pending approval from Council. Two of the Bureau personnel completed Fire Investigation training to join the Santa Clara County Arson Task Force. In comparison to the third quarter of this year, there was a slight rise in total plans reviewed coinciding with rise in total inspections. We saw an increase in Solar Permits and small drops in Electric Vehicle Permits and in total permits issued. The hazardous material inspections are above the projected total for the year, however, this is due to multiple visits to a single site. This year businesses have been mandated to register on a State Hazardous Materials registry (CERS) and the department has been providing assistance to these sites with the registration process. Table 6. Prevention Bureau Performance Measures Permits FY15 Q4 FY16 Q4 Fire Permits Issued - 152 Electric Vehicle Permits Issued 24 15 Solar Permits Issued 34 30 Inspections Hazardous Material Inspections Completed 171 137 Number of Hazardous Material Inspections for the year 270 207 Percent of Hazardous Material Facilities Inspections Complete to date 150.7% 206% State Mandated Inspections Completed 117 99 Number of State Mandated Inspections for the year 290 397 Percent of State Mandated Facilities Inspections Complete to date 103.8% 100% Fire and Life Safety Plan Review Plans Reviewed 261 473 Percent of Reviews Completed On-Time 99.0% 98.0% 7 | P a g e Workforce Planning The Department operates daily emergency response operations with a total of 96.0 FTE line personnel. This includes three battalions of crews that staff six stations in the City and Stanford 24 hours each day. Over the last quarter, the department has operated with 12.0 positions vacant and 6.0 employees off- line creating a total of 18.00 FTE positions that require backfilling. This quarter the Training Division led a joint Fire Academy with the City of Sunnyvale for our new hires brought on in the previous quarter. Department-wide training focused on First Aid and AED skills, Fire and Weather Behavior, Wildland Urban Interface Training, and infrequently used EMS skills. Table 7. Vacancies and Off-Line Employees FY16 Q4 Classification Budgeted FTE Vacancies Off-Line Employees (Workers Comp/Light Duty) Personnel On Line Percent of Personnel On Line Battalion Chief 4.00 0.00 0.00 4.00 100% Fire Captain 22.00 0.00 1.00 21.00 95% Fire Apparatus Operator & Fire Fighters 70.00 12.00 5.00 53.00 76% TOTAL 96.00 12.00 6.00 78.00 81% Table 8. Succession Planning FY15 Q4 FY16 Q4 Number of Line Personnel Currently Eligible to Retire 16 23 Number of Line Personnel Eligible to Retire in Five Years 25 17 Percent of all Line Personnel Eligible to Retire within Five Years 47.7% 45.5% Number of Acting Battalion Chief Hours 236 581 Number of Acting Captain Hours 5,132 1,535 Number of Acting Apparatus Operator Hours 7,231 5,832 Training Hours of Training Completed 8,566 7,826 Average Hours per Line Personnel 105.75 100.34 Number of Your Patients in this ReportYour Score April 1, 2016 to June 30, 2016 EMS System Report Palo Alto, CA 1515 Center Street City of Palo Alto 1 (877) 583-3100 www.EMSSurveyTeam.com Client 9701 service@EMSSurveyTeam.com Lansing, Mi 48096 16394.46 Number of Patients in this Report 18,138 Number of Transport Services in All EMS DB 121 Page 1 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Executive Summary This report contains data from 163 City of Palo Alto patients who returned a questionnaire between 04/01/2016 and 06/30/2016. The overall mean score for the standard questions was 94.46; this is a difference of 2.39 points from the overall EMS database score of 92.07. The current score of 94.46 is a change of -1.06 points from last period's score of 95.52. This was the 13th highest overall score for all companies in the database. You are ranked 3rd for comparably sized companies in the system. 81.88% of responses to standard questions had a rating of Very Good, the highest rating. 99.23% of all responses were positive. Page 2 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Demographics — This section provides demographic information about the patients who responded to the survey for the current and the previous periods. The information comes from the data you submitted. Compare this demographic data to your eligible population. Generally, the demographic profile will approximate your service population. Total This PeriodLast Period OtherFemaleMale OtherMaleTotalFemale Under 18 3 0 03 7114 0 18 to 30 0 2 02 352 0 31 to 44 1 3 04 242 0 45 to 54 2 4 06 385 0 55 to 64 11 7 018 3107 0 65 and older 49 61 0110 7412545 6 Total 66 77 0143 163 65 92 6 Gender Page 3 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Dispatch Analysis This analysis details the section results that concern dispatcher operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. Helpfulness of the person you called for ambulance service 94.45 92.41 2.04 Your Score Total DB Variance1000 Concern shown by the person you called for ambulance service 93.76 92.25 1.51 Your Score Total DB Variance1000 Extent to which you were told what to do until the ambulance arrived 93.27 90.61 2.66 Your Score Total DB Variance1000 Overall Section Score Total DB 2.10 100 91.75 Variance 0 Your Score 93.84 Page 4 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Ambulance Analysis This analysis details the section results that concern ambulance operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. Extent to which the ambulance arrived in a timely manner 95.23 91.73 3.50 Your Score Total DB Variance1000 Cleanliness of the ambulance 96.22 93.81 2.41 Your Score Total DB Variance1000 Comfort of the ride 93.75 87.12 6.63 Your Score Total DB Variance1000 Skill of the person driving the ambulance 94.64 93.10 1.54 Your Score Total DB Variance1000 Overall Section Score Total DB 3.50 100 91.46 Variance 0 Your Score 94.96 Page 5 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Medic Analysis This analysis details the section results that concern medic operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. Care shown by the medics who arrived with the ambulance 96.43 93.79 2.64 Your Score Total DB Variance1000 Degree to which the medics took your problem seriously 96.62 93.75 2.87 Your Score Total DB Variance1000 Degree to which the medics listened to you and/or your family 96.70 93.40 3.30 Your Score Total DB Variance1000 Skill of the medics 96.10 93.78 2.32 Your Score Total DB Variance1000 Extent to which the medics kept you informed about your treatment 94.46 92.16 2.30 Your Score Total DB Variance1000 Extent to which medics included you in the treatment decisions (if applicable) 93.86 91.78 2.08 Your Score Total DB Variance1000 Degree to which the medics relieved your pain or discomfort 92.50 89.97 2.53 Your Score Total DB Variance1000 Page 6 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Medic Analysis This analysis details the section results that concern medic operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. Medics' concern for your privacy 94.18 92.74 1.44 Your Score Total DB Variance1000 Extent to which medics cared for you as a person 95.74 93.70 2.04 Your Score Total DB Variance1000 Overall Section Score Total DB 2.50 100 92.78 Variance 0 Your Score 95.28 Page 7 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Billing Staff Assessment Analysis This analysis details the section results that concern office operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. Professionalism of the staff in our ambulance service billing office 87.33 88.14 Your Score Total DB Variance -0.81 Variance1000 Willingness of the staff in our billing office to address your needs 86.26 88.25 Your Score Total DB Variance -1.99 Variance1000 Overall Section Score Total DB Variance 100 -1.40 88.20 0 Your Score 86.80 Page 8 of 28 City of Palo Alto April 01, 2016 to June 30, 2016 Overall Assessment Analysis This analysis details the section results that concern assessment of operations. The analysis contains the mean scores for each survey question. The first column shows the company score and the total database score, the second column is your variance from the database score. How well did our staff work together to care for you 95.07 92.95 2.12 Your Score Total DB Variance1000 Extent to which our staff eased your entry into the medical facility 95.04 92.91 2.13 Your Score Total DB Variance1000 Appropriateness of Emergency Medical Transportation treatment 95.00 92.77 2.23 Your Score Total DB Variance1000 Extent to which the services received were worth the fees charged 88.36 86.93 1.43 Your Score Total DB Variance1000 Overall rating of the care provided by our Emergency Medical Transportation service 96.18 93.12 3.06 Your Score Total DB Variance1000 Likelihood of recommending this ambulance service to others 96.09 92.55 3.54 Your Score Total DB Variance1000 Overall Section Score Total DB 2.57 100 91.87 Variance 0 Your Score 94.44 Page 9 of 28 April 1, 2016 to June 30, 2016 City of Palo Alto Question Analysis This section lists a synopsis of the information about your individual questions and overall scores for this monthly reporting period. The first column shows the company score from the previous period, the second column shows the change, the third column shows your score for this period and the fourth column shows the total Database score. Dispatch Analysis Last Period Change This Period Total DB Helpfulness of the person you called for ambulance service 94.45-1.58 92.4196.03 Concern shown by the person you called for ambulance service 93.76-1.95 92.2595.71 Extent to which you were told what to do until the ambulance arrived 93.27-0.29 90.6193.56 Ambulance Analysis Last Period Change This Period Total DB Extent to which the ambulance arrived in a timely manner 95.23-0.51 91.7395.74 Cleanliness of the ambulance 96.22-0.08 93.8196.30 Comfort of the ride 93.750.59 87.1293.16 Skill of the person driving the ambulance 94.64-2.32 93.1096.96 Medic Analysis Last Period Change This Period Total DB Care shown by the medics who arrived with the ambulance 96.43-0.95 93.7997.38 Degree to which the medics took your problem seriously 96.62-0.38 93.7597.00 Degree to which the medics listened to you and/or your family 96.70-0.68 93.4097.38 Skill of the medics 96.10-1.03 93.7897.13 Extent to which the medics kept you informed about your treatment 94.46-2.19 92.1696.65 Extent to which medics included you in the treatment decisions (if applicable)93.86-0.49 91.7894.35 Degree to which the medics relieved your pain or discomfort 92.50-2.91 89.9795.41 Medics' concern for your privacy 94.18-1.40 92.7495.58 Extent to which medics cared for you as a person 95.74-1.77 93.7097.51 Billing Staff Assessment Analysis Last Period Change This Period Total DB Professionalism of the staff in our ambulance service billing office 87.33-1.69 88.1489.02 Willingness of the staff in our billing office to address your needs 86.260.77 88.2585.49 Page 10 of 28 April 1, 2016 to June 30, 2016 City of Palo Alto Question Analysis (Continued) Overall Assessment Analysis Last Period Change This Period Total DB How well did our staff work together to care for you 95.07-1.30 92.9596.37 Extent to which our staff eased your entry into the medical facility 95.04-1.48 92.9196.52 Appropriateness of Emergency Medical Transportation treatment 95.00-1.02 92.7796.02 Extent to which the services received were worth the fees charged 88.360.29 86.9388.07 Overall rating of the care provided by our Emergency Medical Transportation 96.18-0.28 93.1296.46 Likelihood of recommending this ambulance service to others 96.09-0.12 92.5596.21 Page 11 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Helpfulness of the person you called for ambulance service 85.71 95.00 93.93 96.51 92.36 100.00 95.83 94.57 97.00 97.22 100.00 95.03 93.75 Concern shown by the person you called for ambulance service 85.71 95.00 94.87 95.35 89.29 91.67 95.65 94.32 96.00 97.22 100.00 93.95 93.18 Extent to which you were told what to do until the ambulance 85.71 91.67 93.42 92.68 89.29 100.00 91.13 93.59 87.50 97.22 95.83 93.08 93.15 Extent to which the ambulance arrived in a timely manner 91.67 100.00 96.88 94.12 95.35 100.00 94.77 94.74 92.31 98.91 94.44 97.28 94.33 Cleanliness of the ambulance 94.44 96.43 96.67 95.74 95.00 80.20 98.73 93.09 96.15 100.00 93.75 97.56 95.83 Comfort of the ride 83.44 94.64 92.44 91.33 89.23 80.20 95.76 90.63 92.31 96.51 93.75 94.51 93.41 Skill of the person driving the ambulance 94.44 100.00 95.35 93.88 93.89 100.00 98.25 95.31 96.00 99.40 96.88 95.24 94.17 Care shown by the medics who arrived with the ambulance 91.67 95.31 97.87 97.50 95.63 100.00 98.28 97.81 93.75 98.84 97.22 96.43 96.35 Degree to which the medics took your problem seriously 91.67 95.00 96.20 97.00 95.12 100.00 98.28 96.05 94.79 99.43 97.22 96.43 96.65 Degree to which the medics listened to you and/or your family 94.44 93.33 96.74 94.79 95.12 100.00 97.81 96.05 95.83 100.00 97.22 97.02 96.51 Skill of the medics 91.67 93.33 95.65 96.88 95.00 95.00 98.68 95.98 96.74 98.84 97.22 96.95 95.60 Extent to which the medics kept you informed about your 91.67 90.00 95.56 90.56 92.11 95.00 98.04 96.00 95.45 98.13 94.44 96.15 93.75 Extent to which medics included you in the treatment decisions 90.63 86.36 95.39 88.12 90.91 100.00 97.22 93.29 94.32 95.83 100.00 96.55 92.31 Degree to which the medics relieved your pain or discomfort 83.33 88.64 95.00 91.46 92.86 100.00 96.43 94.32 92.86 98.48 89.29 93.38 92.41 Medics' concern for your privacy 89.29 92.31 95.83 91.67 95.39 95.00 98.56 94.39 93.18 98.21 87.63 95.14 94.38 Extent to which medics cared for you as a person 96.88 95.00 97.22 94.27 96.88 100.00 99.11 97.64 92.43 100.00 97.22 95.39 95.74 Professionalism of the staff in our ambulance service billing 91.67 90.91 90.79 85.23 89.58 50.50 92.39 89.58 92.50 86.00 100.00 87.50 86.48 Willingness of the staff in our billing office to address your 83.33 92.86 90.28 90.33 85.42 50.50 92.86 83.75 91.67 84.00 100.00 87.50 84.94 How well did our staff work together to care for you 90.63 96.88 95.11 95.10 95.63 100.00 98.61 95.10 96.88 97.62 97.22 96.53 94.29 Extent to which our staff eased your entry into the medical 90.63 96.88 94.44 96.50 96.34 95.00 99.07 94.61 95.83 99.38 97.22 95.17 94.78 Appropriateness of Emergency Medical Transportation treatment 90.63 97.06 96.20 93.37 93.90 100.00 99.07 95.37 95.83 96.98 96.88 94.74 94.95 Extent to which the services received were worth the fees 84.38 83.33 87.18 83.79 89.39 81.25 90.98 86.84 88.80 89.00 100.00 91.91 85.55 Overall rating of the care provided by our Emergency Medical 90.63 95.59 96.11 94.27 95.12 100.00 99.54 95.28 94.79 98.84 97.22 96.05 96.13 Likelihood of recommending this ambulance service to others 90.63 96.88 96.02 92.24 94.87 93.75 97.50 94.27 95.83 98.75 100.00 95.30 96.07 Your Master Score 90.03 94.19 95.10 93.39 93.53 93.73 97.08 94.39 94.30 97.65 96.47 95.18 93.97 Your Total Responses 9 17 48 52 45 5 64 65 29 49 10 48 105 Monthly Breakdown Below are the monthly responses that have been received for your service. It details the individual score for each question as well as the overall company score for that month. Page 12 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Monthly tracking of Overall Survey Score Page 13 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Greatest Increase and Decrease in Scores by Question Increases Last Period This Period Change Total DB Score Willingness of the staff in our billing office to address your needs 85.49 0.77 88.2586.26 Comfort of the ride 93.16 0.59 87.1293.75 Extent to which the services received were worth the fees charged 88.07 0.30 86.9388.36 Decreases Last Period This Period Change Total DB Score Degree to which the medics relieved your pain or discomfort 95.41 -2.91 89.9792.50 Skill of the person driving the ambulance 96.96 -2.31 93.1094.64 Extent to which the medics kept you informed about your treatment 96.65 -2.19 92.1694.46 Concern shown by the person you called for ambulance service 95.71 -1.96 92.2593.76 Extent to which medics cared for you as a person 97.51 -1.76 93.7095.74 Professionalism of the staff in our ambulance service billing office 89.02 -1.69 88.1487.33 Helpfulness of the person you called for ambulance service 96.03 -1.58 92.4194.45 Extent to which our staff eased your entry into the medical facility 96.52 -1.48 92.9195.04 Medics' concern for your privacy 95.58 -1.39 92.7494.18 How well did our staff work together to care for you 96.37 -1.29 92.9595.07 Page 14 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Greatest Scores Above Benchmarks by Question Highest Above Benchmark This Period Variance Total DB Score Degree to which the medics listened to you and/or your family 93.43.396.7 Degree to which the medics took your problem seriously 93.752.8796.62 Care shown by the medics who arrived with the ambulance 93.792.6396.43 Cleanliness of the ambulance 93.812.4296.22 Overall rating of the care provided by our Emergency Medical Transportation service 93.123.0796.18 Skill of the medics 93.782.3296.1 Likelihood of recommending this ambulance service to others 92.553.5496.09 Extent to which medics cared for you as a person 93.72.0595.74 Extent to which the ambulance arrived in a timely manner 91.733.595.23 How well did our staff work together to care for you 92.952.1295.07 Page 15 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Highest and Lowest Scores Highest Scores Last Period This Period Change Total DB Score Degree to which the medics listened to you and/or your family 96.7097.38 -0.68 93.40 Degree to which the medics took your problem seriously 96.6297.00 -0.38 93.75 Care shown by the medics who arrived with the ambulance 96.4397.38 -0.95 93.79 Cleanliness of the ambulance 96.2296.30 -0.08 93.81 Overall rating of the care provided by our Emergency Medical Transportation service 96.1896.46 -0.28 93.12 Lowest Scores Last Period This Period Change Total DB Score Willingness of the staff in our billing office to address your needs 86.2685.49 0.77 88.25 Professionalism of the staff in our ambulance service billing office 87.3389.02 -1.69 88.14 Extent to which the services received were worth the fees charged 88.3688.07 0.29 86.93 Degree to which the medics relieved your pain or discomfort 92.5095.41 -2.91 89.97 Extent to which you were told what to do until the ambulance arrived 93.2793.56 -0.29 90.61 Page 16 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Key Drivers — This section shows the relative importance of each question to the respondents' overall satisfaction. The greater the coefficient number, the more important the issue is to your patients' overall satisfaction. The questions are arranged based on their weighted importance value. Question Your Score Correlation Coeffecient Extent to which the medics kept you informed about your treatment .90482908794.46 Care shown by the medics who arrived with the ambulance .88224322496.43 Skill of the medics .87720329796.10 Overall rating of the care provided by our Emergency Medical Transportation service .873774396.18 How well did our staff work together to care for you .86290892495.07 Extent to which medics cared for you as a person .86121477295.74 Degree to which the medics took your problem seriously .85847689496.62 Degree to which the medics listened to you and/or your family .84976552596.70 Likelihood of recommending this ambulance service to others .83755547396.09 Extent to which our staff eased your entry into the medical facility .83688291195.04 Appropriateness of Emergency Medical Transportation treatment .83676062395.00 Medics' concern for your privacy .82585812894.18 Degree to which the medics relieved your pain or discomfort .79495117692.50 Extent to which medics included you in the treatment decisions (if applicable).76973133893.86 Cleanliness of the ambulance .69128485496.22 Extent to which you were told what to do until the ambulance arrived .6827440993.27 Skill of the person driving the ambulance .66834143894.64 Extent to which the ambulance arrived in a timely manner .66282385895.23 Concern shown by the person you called for ambulance service .64168668493.76 Helpfulness of the person you called for ambulance service .61467089594.45 Comfort of the ride .56044476493.75 Extent to which the services received were worth the fees charged .47858358488.36 Professionalism of the staff in our ambulance service billing office .47322600187.33 Willingness of the staff in our billing office to address your needs .45077005786.26 Page 17 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Company Comparisons — The following chart gives a comparison of the mean score for each question as scored by comparable companies. Your company is highlighted. There is also a green-shaded highlight of the highest score for each question. This will show how you compare to similar companies. Your Company A B C D E F Comparison Companies Helpfulness of the person you called for ambulance service 91.67 92.45 92.59 92.41 89.9290.9894.45 Concern shown by the person you called for ambulance service 91.22 93.07 92.55 93.22 90.6491.5793.76 Extent to which you were told what to do until the ambulance 85.52 92.20 89.67 91.92 88.9886.2293.27 Extent to which the ambulance arrived in a timely manner 90.66 89.89 94.55 91.01 88.5888.1695.23 Cleanliness of the ambulance 91.90 94.17 96.37 92.08 90.1891.4396.22 Comfort of the ride 84.83 86.29 92.63 87.28 82.3883.1893.75 Skill of the person driving the ambulance 91.18 93.21 94.48 93.64 89.5991.1094.64 Care shown by the medics who arrived with the ambulance 89.84 94.63 96.64 92.91 91.3990.1396.43 Degree to which the medics took your problem seriously 88.93 95.97 96.05 93.02 90.5690.3996.62 Degree to which the medics listened to you and/or your family 89.32 93.76 96.00 91.94 91.2091.7896.70 Skill of the medics 89.94 93.75 95.05 94.87 91.4692.1396.10 Extent to which the medics kept you informed about your 87.79 92.71 95.37 92.07 87.5189.9794.46 Extent to which medics included you in the treatment decisions (if 88.25 92.61 94.45 92.07 88.1388.5193.86 Degree to which the medics relieved your pain or discomfort 86.01 91.58 92.83 88.08 86.7587.0792.50 Medics' concern for your privacy 90.08 93.53 95.60 92.25 89.1890.9694.18 Extent to which medics cared for you as a person 90.13 95.01 95.99 92.46 91.3991.6995.74 Professionalism of the staff in our ambulance service billing office 82.16 89.80 92.26 84.93 84.9784.2887.33 Willingness of the staff in our billing office to address your needs 84.62 91.85 90.27 85.09 85.8786.0886.26 How well did our staff work together to care for you 89.50 92.90 96.19 92.19 90.7288.3495.07 Extent to which our staff eased your entry into the medical facility 89.75 93.68 96.00 92.44 91.3389.1595.04 Appropriateness of Emergency Medical Transportation treatment 89.69 94.20 96.44 92.15 91.3289.4695.00 Extent to which the services received were worth the fees charged 81.37 84.36 92.60 86.68 85.3178.7488.36 Overall rating of the care provided by our Emergency Medical 90.28 91.22 95.95 91.62 91.5690.1896.18 Likelihood of recommending this ambulance service to others 89.32 89.58 95.99 91.46 89.3888.3796.09 Overall score 94.46 88.94 88.79 92.29 94.67 91.55 89.26 National Rank 13 75 77 42 12 55 74 Comparable Size (Medium) Company Rank 3 23 21 Page 18 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Yo u r Co m p a n y Total Score Benchmark Comparison 94.46 To t a l D B Si m i l a r S i z e d 92.07 91.05 Helpfulness of the person you called for ambulance service 94.45 92.41 91.79 Concern shown by the person you called for ambulance service 93.76 92.25 91.59 Extent to which you were told what to do until the ambulance 93.27 90.61 89.96 Extent to which the ambulance arrived in a timely manner 95.23 91.73 90.96 Cleanliness of the ambulance 96.22 93.81 93.21 Comfort of the ride 93.75 87.12 86.78 Skill of the person driving the ambulance 94.64 93.10 92.32 Care shown by the medics who arrived with the ambulance 96.43 93.79 93.19 Degree to which the medics took your problem seriously 96.62 93.75 92.98 Degree to which the medics listened to you and/or your family 96.70 93.40 92.62 Skill of the medics 96.10 93.78 92.93 Extent to which the medics kept you informed about your 94.46 92.16 91.38 Extent to which medics included you in the treatment decisions 93.86 91.78 90.87 Degree to which the medics relieved your pain or discomfort 92.50 89.97 89.33 Medics' concern for your privacy 94.18 92.74 92.12 Extent to which medics cared for you as a person 95.74 93.70 92.91 Professionalism of the staff in our ambulance service billing 87.33 88.14 86.94 Willingness of the staff in our billing office to address your 86.26 88.25 86.81 How well did our staff work together to care for you 95.07 92.95 92.32 Extent to which our staff eased your entry into the medical 95.04 92.91 92.22 Appropriateness of Emergency Medical Transportation treatment 95.00 92.77 91.96 Extent to which the services received were worth the fees 88.36 86.93 85.84 Overall rating of the care provided by our Emergency Medical 96.18 93.12 92.53 Likelihood of recommending this ambulance service to others 96.09 92.55 91.55 Number of Surveys for the period 163 Page 19 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Benchmark Trending Graphic - Below are the monthly scores for your service. It details the overall score for each month as well as your subscribed benchmarks for that month. Page 20 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Cumulative Comparisons This section lists a synopsis of the information about your individual questions and overall scores over the entire lifetime of the dataset. The first column shows the company score and the second column details the total database score. Your Score Total DB 91.6894.64Overall Facility Rating Dispatch 94.3 91.48 Helpfulness of the person you called for ambulance service 92.2395.31 Concern shown by the person you called for ambulance service 91.9594.64 Extent to which you were told what to do until the ambulance 90.2592.96 Ambulance 95.24 91.27 Extent to which the ambulance arrived in a timely manner 91.6095.59 Cleanliness of the ambulance 93.7796.56 Comfort of the ride 87.0292.83 Skill of the person driving the ambulance 92.6995.98 Medic 95.77 92.69 Care shown by the medics who arrived with the ambulance 93.7197.04 Degree to which the medics took your problem seriously 93.6196.82 Degree to which the medics listened to you and/or your family 93.3596.53 Skill of the medics 93.7896.65 Extent to which the medics kept you informed about your treatment 91.8195.14 Extent to which medics included you in the treatment decisions (if 91.6194.08 Degree to which the medics relieved your pain or discomfort 90.1993.94 Medics' concern for your privacy 92.5895.04 Page 21 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Cumulative Comparisons (Continued) Your Score Total DB 91.6894.64Overall Facility Rating Medic 95.77 92.69 Extent to which medics cared for you as a person 93.5496.69 Billing Staff Assessment 88.56 88.06 Professionalism of the staff in our ambulance service billing office 88.0488.63 Willingness of the staff in our billing office to address your needs 88.0988.50 Overall Assessment 94.74 91.74 How well did our staff work together to care for you 92.7796.12 Extent to which our staff eased your entry into the medical facility 92.9596.14 Appropriateness of Emergency Medical Transportation treatment 92.7295.90 Extent to which the services received were worth the fees charged 86.6287.97 Overall rating of the care provided by our Emergency Medical 92.8996.45 Likelihood of recommending this ambulance service to others 92.5295.88 Page 22 of 28 The Top Box Analysis displays the number of responses for the entire survey by question and rating. The Top Box itself shows the percentage of "Very Good" responses, the highest rating, for each question. Next to the company rating is the entire EMS DB rating for those same questions. Top Box Comparisons April 1, 2016 to June 30, 2016 City of Palo Alto EMS DB % Very Good Company % Very Good Very GoodGoodFairPoor Very Poor Overall Company Rating 11 13 67 472 74.43%81.88%2544 Dispatch 3 0 9 59 73.23%80.33%290 Helpfulness of the person you called for ambulance service 1 0 1 22 102 80.95%74.96% Concern shown by the person you called for ambulance service 1 0 3 20 96 80.00%74.08% Extent to which you were told what to do until the ambulance arrived 1 0 5 17 92 80.00%70.65% Ambulance 0 0 7 101 72.82%81.09%463 Extent to which the ambulance arrived in a timely manner 0 0 2 25 125 82.24%73.58% Cleanliness of the ambulance 0 0 0 21 118 84.89%77.72% Comfort of the ride 0 0 3 29 108 77.14%63.23% Skill of the person driving the ambulance 0 0 2 26 112 80.00%76.75% Medic 1 6 32 146 77.70%84.93%1043 Care shown by the medics who arrived with the ambulance 0 1 2 14 130 88.44%80.11% Degree to which the medics took your problem seriously 0 1 3 11 133 89.86%80.78% Degree to which the medics listened to you and/or your family 0 0 4 11 129 89.58%79.73% Skill of the medics 0 0 3 16 122 86.52%79.95% Extent to which the medics kept you informed about your treatment 0 0 6 19 115 82.14%75.65% Page 23 of 28 Top Box Comparisons April 1, 2016 to June 30, 2016 City of Palo Alto (Continued) EMS DB % Very Good Company % Very Good Very GoodGoodFairPoor Very Poor Overall Company Rating 11 13 67 472 74.43%81.88%2544 Extent to which medics included you in the treatment decisions (if applicable)0 0 5 18 91 79.82%75.32% Degree to which the medics relieved your pain or discomfort 0 2 3 24 91 75.83%70.91% Medics' concern for your privacy 1 1 3 18 110 82.71%76.30% Extent to which medics cared for you as a person 0 1 3 15 122 86.52%80.57% Billing Staff Assessment 3 3 3 46 61.74%60.14%83 Professionalism of the staff in our ambulance service billing office 1 1 2 24 41 59.42%61.37% Willingness of the staff in our billing office to address your needs 2 2 1 22 42 60.87%62.11% Overall Assessment 4 4 16 120 75.41%82.20%665 How well did our staff work together to care for you 0 1 1 22 113 82.48%76.80% Extent to which our staff eased your entry into the medical facility 1 1 1 18 115 84.56%76.92% Appropriateness of Emergency Medical Transportation treatment 0 0 4 20 116 82.86%76.98% Extent to which the services received were worth the fees charged 2 1 9 26 80 67.80%65.39% Overall rating of the care provided by our Emergency Medical Transportation service 0 1 1 17 125 86.81%78.30% Likelihood of recommending this ambulance service to others 1 0 0 17 116 86.57%78.08% Page 24 of 28 April 1, 2016 to June 30, 2016 City of Palo Alto Standard Deviation by Question SD Variance Database Standard Deviation Company Standard Deviation Total DBYour Score Helpfulness of the person you called for ambulance service 94.45 92.41 13.266 15.22 1.95 Concern shown by the person you called for ambulance service 93.76 92.25 14.47 14.89 0.42 Extent to which you were told what to do until the ambulance arrived 93.27 90.61 15.525 17.056 1.53 Extent to which the ambulance arrived in a timely manner 95.23 91.73 10.627 16.037 5.41 Cleanliness of the ambulance 96.22 93.81 8.953 12.579 3.63 Comfort of the ride 93.75 87.12 11.999 20.207 8.21 Skill of the person driving the ambulance 94.64 93.10 11.094 14.332 3.24 Care shown by the medics who arrived with the ambulance 96.43 93.79 10.911 14.541 3.63 Degree to which the medics took your problem seriously 96.62 93.75 11.123 15.184 4.06 Degree to which the medics listened to you and/or your family 96.70 93.40 10.311 15.487 5.18 Skill of the medics 96.10 93.78 10.435 14.407 3.97 Extent to which the medics kept you informed about your 94.46 92.16 12.701 16.201 3.50 Extent to which medics included you in the treatment decisions (if applicable) 93.86 91.78 13.063 17.093 4.03 Degree to which the medics relieved your pain or discomfort 92.50 89.97 15.00 18.82 3.82 Medics' concern for your privacy 94.18 92.74 14.936 15.08 0.14 Extent to which medics cared for you as a person 95.74 93.70 11.894 15.228 3.33 Professionalism of the staff in our ambulance service billing office 87.33 88.14 18.788 17.573 -1.21 Willingness of the staff in our billing office to address your needs 86.26 88.25 22.223 17.754 -4.47 How well did our staff work together to care for you 95.07 92.95 11.636 14.854 3.22 Extent to which our staff eased your entry into the medical facility 95.04 92.91 13.783 15.02 1.24 Appropriateness of Emergency Medical Transportation treatment 95.00 92.77 11.65 15.58 3.93 Extent to which the services received were worth the fees charged 88.36 86.93 20.169 21.86 1.69 Overall rating of the care provided by our Emergency Medical Transportation service 96.18 93.12 10.753 15.425 4.67 Likelihood of recommending this ambulance service to others 96.09 92.55 11.711 17.034 5.32 Overall Survey Rating 94.46 92.07 13.21 16.14 2.94 Page 25 of 28 City of Palo Alto April 1, 2016 to June 30, 2016 Responses vs Score Histogram — This graph shows the number of responses on the Y axis vs the average score on the X axis. Page 26 of 28 Facilities in Database April 1, 2016 to June 30, 2016 City of Palo Alto Adair EMS Kirksville, MO Air San Juan Island Friday Harbor, WA Alliance Health null Alliance Mobile Health Troy, MI AMT Peoria, IL Bay State Springfield, MA Bay Village Bay Village, OH Bay Village Employee null Beaumont Troy, MI Beaumont Medical Troy, MI Birmingham Fire Birmingham, MI Bloomfield Township Bloomfield Hills, MI Carilion Clinic Roanoke, VA Cetronia Allentown, PA City of Palo Alto Palo Alto, CA Columbus Connection Cols, OH Community Ambulance Macon, GA Community Care EMS Ashtabula, OH Community Care EMS null Community EMS MI Southfield, MI Community EMS OH Columbus, OH CoxHealth EMS Springfield, MO Cumberland Carlisle, PA Cy-Fair Houston, TX Cypress Creek Spring, TX DMC Care Detroit, MI Edward Naperville, IL Emergent Health Partners Ann Arbor, MI Emergent Health Partners null Employee Survey null Employee Survey Emergent null Employee Survey-LifeCare null Emp.Survey Medstar null EMSA Oklahoma City, OK Escalon Ambulance Service Escalon, CA Ferndale Fire and Rescue Ferndale, MI F-M Ambulance Fargo, ND Genesis Community Zanesville, OH Gold Cross Menasha, WI Guilford EMS Greensboro, NC Harris County Emergency Houston, TX Health East St. Paul, MN Health Link Taylor, MI HEMSI Hunsville, AL Hennepin County EMS Minneapolis, MN Hillsboro Fargo, ND Hot Springs Hot Springs, AR Hot Springs Village Hot Springs, AR Howard County Nashville, AR Humboldt Winnemucca, NV HVA null Iosco County EMS East Tawas, MI Lassen County Ambulance Susanville, CA LifeCare Ambulance Battle Creek, MI LifeCare Medical EMS Sterling, CO Life EMS Ambulance Grand Rapids, MI LifeNet EMS Texarkana, TX Loyola Medicine Transport Melrose Park, IL Madison Heights Fire Madison Heights, MI Malvern Malvern, AR MCHD Conroe, TX McKinney Fire Department McKinney, TX Medcare Ambulance Columbus, OH Medic 1 Ambulance Canton, MI Medic Ambulance Service Vallejo, CA Medic Ambulance Service Vallejo, CA Medic EMS Davenport, IA Medstar Clinton Twp., MI Medstar Mobile Healthcare Fort Worth, TX Medstar Mobile Healthcare null Mercy Flights Medford, OR Mercy Ohio Cincinnati, OH Metro West Hillsboro, OR MMR null Mobile Life Support New Windsor, NY Mobile Life Support New Windsor, NY Mobile Medical Response Saginaw, MI MONOC Neptune, NJ Nature Coast Lecanto, FL North Memorial Robbinsdale, MN Northwell Health Syosset, NY Oceana Hart, MI Patterson District Patterson, CA Pearland EMS Pearland, TX Portage County Stevens Point, WI Pro EMS Cambridge, MA ProMed Muskegon, MI Prompt Ambulance Highland, IN Page 27 of 28 PTS Loveland, OH Puckett Austell, GA Regional EMS Flint, MI REMSA Reno, NV REMSA Air Transport Reno, NV Ridgefield Fire Department Ridgefield, CT Riggs Ambulance Merced, CA Royal Oak Fire Department Royal Oak, MI San Juan Island Friday Harbor, WA San Marcos Hays County San Marcos, TX Scott & White Temple, TX Senior Care Bronx, NY Sioux Land Sioux City, IA SkyHeath Syossett, NY SMCAS Niles, MI Snohomish County Fire Snohomish, WA Southfield Soutthfield, MI St. Charles St. Peters, MO Stillwater Stillwater, OK Suburban Palmer, PA Swartz Flint, MI Texarkana Texarkana, TX Thief River Falls Fargo, ND Tri-Hospital Port Huron, MI Umpqua Health Alliance null University Medical Center Lubbock, TX Van Buren EMS Paw Paw, MI Waterford Regional Fire Waterford, MI West Bloomfield Fire West Bloomfield, MI WestSide Community Newman, CA York Regional EMS Yoe, PA null null Page 28 of 28 Dave Price Editor and Co-Publisher The Daily Post 385 Forest Ave. Palo Alto CA 94301 (650) 328-7700 price@padailypost.com Dear Editor: I want to tell you about a wonderful experience a group of Cub Scouts had at Palo Alto Fire Station 4. My son had always wanted to visit a fire station and now that he needs his merit badge from the scouts, he knocked on the door of Palo Alto Fire Station 4 on Middlefield Road with trepidations. A firefighter opened the door to him and welcomed him with warm smile. The firefighter introduced himself and showed my son around the station before introducing the captain and his co-firefighter. The firefighter wanted to make the most out of my son’s experience there and invited him back so that he could prepare for a good lesson on fire safety. We invited other scouts to come along and returned on May 13. Not only was Firefighter Kevin Walsh there to welcome the scouts, Capt. Albright was also there to make sure that all scouts are safe and comfortable while visiting the station. Firefighter Kevin prepared props for CPR demonstration, chocking help. His friendly, engaging mannerism put the scouts at ease and his knowledge certainly captured the attention of this group of 8-9 years old, which is no small task. Not only did the scouts learned their lesson in fire safety, the parents there enjoyed learning about the fire engine and the life of the firefighters, too. We appreciate so much that the Fire Station took the time for the scouts and made the efforts to help the boys learn. Daniella Luo Palo Alto 1 Gonzalez, AnaBella Subject:FW: APPRECIATION FOR CARING SERVICE Hi Chief, I'm not sure if this email was forwarded to you during my absence. Shannon ‐‐‐‐‐Original Message‐‐‐‐‐ From: Barbara Platt [mailto:plattbs@gmail.com] Sent: Tuesday, May 03, 2016 8:32 AM To: Fire Subject: APPRECIATION FOR CARING SERVICE Hello Thank you to the EMT staff that was rapidly dispatched and arrived at our home at 490 El Capitan about 9:10 pm last evening in response to a call after my husband gently landed on the floor as we were walked up his ramp at home. He and I strategized that it would be unsafe for me to try to pull him up off his butt where I eased him down when he lost his balance. The firefighters were very thoughtful, calming and thorough as they stayed with us to establish that my husband was stable after getting him up off the floor and assisting him to his hospital bed. I am very thankful and appreciative for this life‐saving service that we have received from Palo Alto Fire over the few years. Barbara Platt for Alvin Platt 490 El Capitan 1 Cameron, Amber From:Nickel, Eric Sent:Thursday, June 09, 2016 2:50 PM To:Villarreal, David Cc:Lee, Frank; Castor, Grace; Cameron, Amber; Crump, William; Davis, Bobby; Keene, James; Capriles, Catherine Subject:Letter of Appreciation: Rescue Systems Class Dave, I want to take this opportunity to thank you for your exceptional efforts teaching the RS1 training course. These words of praise will be included in your personnel file to serve as a reminder of your valuable and hard work. I, on behalf of the organization wish to express my gratitude for a job well done. Sincerely, Eric Eric Nickel, EFO, CFO, CFC | Fire Chief 250 Hamilton Avenue | Palo Alto, CA 94301 Desk: 650‐329‐2424 Email: eric.nickel@cityofpaloalto.org www.cityofpaloalto.org Twitter | Facebook | Instagram | Nextdoor From: Steve Drewniany [mailto:sdrewniany@sunnyvale.ca.gov] Sent: Tuesday, May 24, 2016 8:00 AM To: Nickel, Eric Subject: Kudos Chief Nickel Recently SNY hosted a RS1 course. One of the assistant instructors was PAF FF Dave Villarreal. I received this email from one of the attendees and wanted to make sure your organization was aware of the fine work accomplished by one of your members. On Sat, May 21, 2016 at 9:43 AM, James Boone <jboone@sunnyvale.ca.gov> wrote: HI Chief, Over the last two weeks, I had the privilege to attend the LARRO and RS1 class hosted by SNY. I wanted to express my sincere appreciation for the time, effort and high level of instruction the entire staff provided throughout the two weeks of training. Although the course was physically demanding, the high level of instruction and enthusiasm displayed by all the instructors made this course even more memorable. Every instructor had a high degree of knowledge and demonstrated patience through the two weeks of training. In my 25 years of experience, this is the best group of instructors and course I have ever attended! Sincerely, To: Yovan Sierra From: Ken Cardinale, Fire Chief Date: May 18, 2016 Subject: Thank You Captain Ferry I just want to thank you for the training that you provided to Lewis County this past weekend. The course was outstanding by providing knowledge from historic door systems to the most up to date modern security door we may in counter in both residential and commercial occupancies. The class room instruction and the multimedia aspects where invaluable and laid the foundation for the hands on training which the bulk of the curriculum is. The manipulative portion of the course provided by Fire Fighter Yovan Sierra was so valuable to all of the firefighters. You can have lectures, read books and see videos, but the most valuable is the hands on training. It is where the tire meets the road. The unselfish hours of the instructors providing their guidance and instruction as well their experience will have a long and lasting impression with all the firefighter in attendance. Thank you so very much for the outstanding and excellent course. Sincerely, Ken Cardinale, Fire Chief, City of Chehalis, WA City of Palo Alto (ID # 7165) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Approval of Airport Contract with Golden Bay Fence Plus Iron Works, Inc. Title: Approval of Contract With Golden Bay Fence Plus Iron Works, Inc. in the Amount of $1,755,510 for the Palo Alto Airport Perimeter Fence and Gate Upgrades, CIP Project AP-16003; Approval of Amendment Number 2 to C&S Engineers, Inc. Contract Number C151555208A to Increase the Contract by $208,329 for a Total Not-to-Exceed Amount of $1,108,329 for Engineering and Design Services; Approval of a Budget Amendment in the Airport Enterprise Fund; and Adoption of Findings That the Project Satisfies the Requirements of the National Environmental Protection Act (NEPA) and California Environmental Quality Act (CEQA) From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Adopt findings that, as a project that involves only the replacement of an existing structure, the Airport Perimeter Fence Project (AP-16003) meets the requirements of the National Environmental Protection Act (NEPA) by qualifying for a categorical exclusion (Attachment A), and the requirements of the California Environmental Quality Act (CEQA) by qualifying for a categorical exemption (Attachment B); 2. Approve and authorize the City Manager or his designee to execute a contract with Golden Bay Fence Plus Iron Works, Inc. (Attachment C) in the amount not to exceed of $1,755,510 for the Airport Perimeter Fence Project (AP-16003); City of Palo Alto Page 2 3. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Golden Bay Fence Plus Iron Works, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $175,551; 4. Approve Amendment No. Two to C & S Engineers, Inc. Contract C151555208A (Attachment D) to increase the contract by $208,329 for a total not-to-exceed amount of $1,108,329 for engineering and design services related to CIP projects; and 5. Amend the Fiscal Year 2017 Budget Appropriation for the Airport Enterprise Fund by: a. Increasing the estimate for Revenue from the Federal Government in the amount of $264,793; b. Increasing the Capital Improvement Airport Perimeter Fence Project (AP-16003) appropriation in the amount of $344,201; and c. Decreasing the fund balance in the amount of $79,408. Executive Summary Since the transfer of the Palo Alto Airport (PAO) in August 2014, the City of Palo Alto has been working with the Federal Aviation Administration (FAA) to rehabilitate and update PAO to current FAA standards. The Airport Enterprise Fund was created and requires temporary monetary assistance from the General Fund for CIPs and to provide operational support for the airport. Repayment of loans to the General Fund is anticipated to begin in FY 2019. On December 14, 2015, Council approved a resolution authorizing a Budget Amendment Ordinance to establish the Airfield Perimeter Fence CIP project AP- 16003, in the amount of $179,838 funding the design and construction of the perimeter fence of which 90% is eligible for reimbursement through a grant from the FAA estimated at $161,854 (City Manager’s Report #6367 Contract Amendments and BAO for Airport FY 2016 CIP). The Airport Perimeter Fence project involves replacing fencing and gates to prevent unauthorized access to the airport runway, an important safety measure that prevents disruptions to landings and takeoffs. The Airport Perimeter Fence project was driven by new initiatives to enhance runway safety at all airports in City of Palo Alto Page 3 the nation as identified in the FAA National Runway Safety Report dated June 2015. Background Prior to transferring operations of the Palo Alto Airport in 2014, staff analyzed infrastructure at PAO and provided recommendations for important safety- related maintenance and modernization projects needed to upgrade the PAO to a modern operational facility. The FAA is the national regulatory authority for civil aviation in the United States of America and its mission is to provide the safest, most efficient aerospace system in the world. With over 170,000 annual operations, PAO serves as a General Aviation Reliever Airport for three primary Bay Area airports and is identified as an important airport in the National Plan of Integrated Airport System (NPIAS). Airports in the NPIAS qualify for FAA grant money for eligible projects under the Airport Improvement Program, which includes capital improvements necessary for continued safe and efficient operation of an airport. Participants that accept grant money are required by law to meet these obligations, known as grant assurances. These obligations require the recipients to maintain and operate their facilities safely and efficiently and in accordance with specified conditions. The assurances may be attached to the application or the grant and become part of the final grant offer or in restrictive covenants to property deeds. Since Fiscal Year 2011, the General Fund has loaned or is anticipated to loan the PAO about $2.9 million to support operations and provide seed funding for capital improvement projects. It is anticipated that the Airport Fund will begin to repay the General Fund loans in Fiscal Year 2019. A breakdown of loans by fiscal year follows. Fiscal Year Loan Amount 2011 $300,000 2013 $310,000 2014 $325,000 2015 $760,000 2016 $515,601 2017 (est.) $704,150 TOTAL $2,914,751 City of Palo Alto Page 4 Contracts On October 27, 2014, Council approved two contracts totaling $500,000, each in an amount not to exceed $250,000 with C & S Engineers, Inc. and Mead & Hunt, Inc. for terms of five years for on-call consulting services (City Manager’s Report #4948 Approval of Contracts, CIP & BAO for Palo Alto Airport Rehabilitation Projects). The contracts provide for a variety of design, construction administration, environmental studies and other planning functions required for FAA Airport Capital Improvement Program projects. On-call consultant services that are compliant with FAA requirements are eligible for 90% reimbursement of the contract amount. On December 14, 2015, Council approved Amendment No. One to increase the C & S Engineers, Inc. contract in the amount of $650,000 for a total not-to-exceed amount of $900,000 for professional engineering and design services related to CIPs. (City Manager’s Report #6367 Contract Amendments and BAO for Airport FY 2016 CIP). Staff is requesting Council’s approval for Amendment No. Two to C & S Engineers, Inc. to increase the contract by an additional $208,329 for a total not- to-exceed amount of $1,108,329 for engineering and design services related to CIPs. FAA reimbursement for services under this contract is anticipated to be 90% or $997,496. Capital Improvement The FAA launched a new national initiative to address one of its top safety priorities, runway incursions, which are trespasses of the runway that lead to disruptions of takeoffs and/or landings. In the summer of 2015, two areas of PAO were identified as “hotspots,” landing PAO on the list of airports needing to immediately address Runway Incursion Mitigation (RIM) measures identified by the FAA Regional Office of Runway Safety. The RIM program identifies airport risk factors that may contribute to a runway incursion and develops strategies to help mitigate those risks. The existing perimeter fence at PAO is too low to adequately provide perimeter security and has gaps and access gates that are inoperable and beyond their useful and serviceable life. In a meeting on September 28, 2015, the local FAA Airport District Office strongly supported the mitigation measures offered by staff: replacing existing fencing, gates and pedestrian entrances. The FAA suggested it could fund 90% of the City of Palo Alto Page 5 design and construction of this high priority RIM project if the City could prefund the design and environmental review before Spring 2016. Grants Prior to 2007, users of the PAO approached the City advocating for return of operational control to the City and for the City to complete needed infrastructure improvements. In 2007, Council directed staff to pursue options for early termination of the PAO 50-year lease with the County of Santa Clara, previously set to expire in 2017. On December 6, 2010, Council established the Airport Enterprise Fund to provide for the transition of airport operations. In a presentation to Council, staff recommended applying for FAA grant funds to implement the safety enhancements, rehabilitation and infrastructure needs.(City Manager Report:431:10.) On June 29, 2015, Council authorized the City Manager to apply for and execute future grant agreements offered by the FAA and California Department of Transportation (DOT) for improvements at the airport, enabling staff to respond within the deadlines set by these granting agencies. (City Manager Report #5890). Resolution No. 9533 authorizes the City Manager to execute grant agreements offered by the FAA. Council authorized similar agreements with the FAA prior to the airport transfer, successfully securing federal funding for improvements. The FAA makes airport improvement grants available to local airport sponsors for 90% of the total costs of eligible projects and, when applicable, the California DOT will match 2.5% of the federal share. In receiving grant funds from the FAA, the City agrees to the conditions governing the use of grant funds and operates the airport in compliance with FAA requirements. Discussion The Airport Perimeter Fence Project is intended to provide funding for replacing perimeter fencing and gates surrounding the Palo Alto Airport boundaries to prevent unauthorized access to the airport runway in accordance with Federal and State standards. This fencing project satisfies the FAA's initiative to enhance runway safety, mitigating those risks by securing the airport perimeter. Notices inviting formal bids for the Perimeter Fence project were posted at City Hall and on PlanetBids (IFB 163874) on May 3, 2016. The bidding period was 35 days. Bids were received from two contractors on June 7, 2016. The City City of Palo Alto Page 6 determined the low bidder to be non-responsive on the grounds that the bidder failed to meet the 11.2% Disadvantaged Business Enterprise (DBE) requirement or show good faith efforts to do so. The next responsive bidder, Golden Bay Fence Plus Iron Works, Inc., met the DBE goal and all other contract requirements, and staff recommends award to Golden Bay Fence. Summary of Bid Process Bid Name/Number Palo Alto Airport Perimeter Fence and Access Gates Upgrades – IFB 163847 Total Days to Respond to Bid 35 Mandatory Pre-Bid Meeting May 24, 2016 Number of Bids Received: 2 Base Bid Price Range $1,647,175 to $1,755,510 *Bid Summary is Attachment F. The base bid is approximately 21% above the construction cost estimate for the scope of work included. A contingency amount of $175,551 equal to 10 percent of the total contract is requested for unforeseen conditions which may be discovered during construction. Therefore, it is recommended that the City award the bid to Golden Bay Fence Plus Iron Works, Inc. in a total contract award amount of $1,931,061. The contract with Golden Bay Fence Plus Iron Works, Inc. addresses the unauthorized access to restricted aircraft movement areas as required by the FAA to provide mitigation measures for the high number of Runway Incursions at the Airport. The fencing foot print will remain the same but the fence height will be raised to eight feet in accordance with the FAA’s recommendation. By participating in the RIM program, the City is reducing the possibility of unauthorized access to the airfield, rendering the airport safer. In order to continue to assist in the management of the Airport Perimeter Fence Project, a contract Amendment No. 2 with C&S Companies, Inc. is recommended to increase the contract amount $208,329 for the construction observation and administration costs for the perimeter fencing project. The new total not-to- exceed amount of the C&S Companies, Inc. contract will be $1,108,329. Services City of Palo Alto Page 7 include activities such as project inspection, construction management, Project management, and construction administration, depending on discipline. Resource Impact On December 14, 2015, Council approved a BAO to pre-fund the design of the perimeter fence project totaling $179,838 understanding 90% will be reimbursed by the FAA through the anticipated construction grant following the results of the competitive bid process for the fence project. The remaining $17,984 was funded with Airport Enterprise Fund reserves. (CMR #6367). In total, the Airport Perimeter Fence Project AP-16003 is estimated to cost $2,172,190 to cover environmental, design, construction, administration, and city salaries and benefit costs to support it. However, included in this staff report is a request for authorization of amendments to the contract not to exceed $175,551. Therefore, the total project cost seeking authorization is $2,347,741. This is above the revised estimated total project cost outlined in the FY 2017 Adopted Capital Budget which estimated a total project cost of $2.0 million of which $1.8 million was necessary in FY 2017. The higher costs are due to higher construction bids being received. Below is a summary of the project costs and components of those costs: Design $ 179,838 Construction 1,755,510 Project Management 208,329 Miscellaneous (environmental review & sponsor administration) 28,513 TOTAL PROJECT ESTIMATED COST $ 2,172,190 Construction Contingency (10%) 175,551 TOTAL PROJECT BUDGET $ 2,347,741 Currently, the City has applied for FAA grant reimbursement of 90% of the estimated project cost, ($2,172,190; excludes the contingency) approximately $1,954,971. The remaining City contribution from the Airport Enterprise Fund is estimated to be $217,219. Due to the nature of a contingency, FAA grant funding for the construction contingency cannot be requested until an action to use contingency funds is City of Palo Alto Page 8 exercised. Therefore, the current FAA grant application of $2,172,190 does not include these potential costs. Consequently, the budget actions recommended in this report do not anticipate reimbursement from the FAA for the contingency amount ($175,551). Staff will request reimbursement from the FAA should these additional funds be needed, however, they will also manage expenses in pavement maintenance and liability insurance costs during FY 2017 to ensure the Airport Enterprise Fund remains solvent in FY 2017 without additional General Fund support incase additional FAA funding is not approved. A review of FY 2016 actuals and current year tracking will be completed as part of the FY 2017 Mid- Year Budget Review report and any rebalancing actions brought forward as necessary at that time. Below is a table outlining the estimated project costs and the recommended amendments to the budget. Prior Year FY 2017 Adopted Budget Recommended FY 2017 Adjustment FY 2017 Revised Budget TOTAL PROJECT BUDGET Sources FAA Grant Reimbursement $161,854 $1,528,324 $264,793 $1,793,117 $1,954,971 Uses Design $179,838 $179,838 Construction $1,823,702 $315,688 $2,139,390 $2,139,390 Other 28,513 28,513 28,513 TOTAL USES $179,838 $1,823,702 $344,201 $2,167,903 $2,347,741 Impact on Airport Fund Balance/ Reserves ($17,984) ($295,378) ($79,408) ($374,786) ($392,770)* *This contribution from the Airport Enterprise Fund Balance/Reserve assumes full responsibility of costs associated with the option to exercise a 10% contingency. However, should this contingency be drawn upon in, staff will seek for additional reimbursement from the FAA for these escalated costs at a 90% reimbursement level or $157,996, therefore reducing this contribution from $392,770 to $234,774. Environmental Review National Environmental Policy Act Based on FAA direction, C&S Engineers, Inc. was tasked to prepare documentation necessary to comply with National Environmental Policy Act (NEPA) requirements for the proposed airport perimeter fence replacement at the PAO. As a project that involves only the replacement of an existing structure it qualifies under a categorical exclusion (CATEX) (Attachment A). In support of the City of Palo Alto Page 9 NEPA documentation, a biological constraints evaluation was recently prepared that evaluated potential impacts of the proposed project on biological resources. The evaluation recommended a number of steps to avoid wetland features and construction during the nesting season (February 1 through August 31). A qualified biologist will conduct a preconstruction survey and delineate suitable habitat for special status species that will be avoided. The biologist will also be present during construction activities in close proximity to environmentally sensitive areas. In addition, a worker environmental awareness program will be implemented as part of the proposed project. California Environmental Quality Act The proposed airport perimeter fence replacement qualifies for a Categorical Exemption under the California Environmental Quality Act (CEQA) Guidelines Section 15302, Replacement or Reconstruction (See Attachment B). This exemption covers the replacement of existing structures where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Architectural Review Board On May 19, 2016, the Architectural Review Board recommended approval of the application for the perimeter fence replacement. The Director of Planning and Community Environment (Director) approved the project on June 1, 2016 (Attachment F). The design and architecture of the proposed improvements, as conditioned, complies with the Findings for Architectural Review as required in Chapter 18.76 of the Palo Alto Municipal Code (PAMC). Federal law prohibits the installation of a project that would be in compliance with the City’s Zoning ordinance and the Site Assessment and Design Guidelines for the Palo Alto Baylands Nature Preserve. The design is compatible with the immediate environment of the site in that the replacement fencing and gates are located in the same location as the existing fence and gates and would not change the existing use of the site. The replacement of the fence would ensure that FAA requirements for safety and security to protect the general public and wildlife are met for the continued safe operation of the airport. The proposed material and color of the fencing is consistent with the material identified in the Site Assessment and Design Guidelines for the Palo Alto Baylands Nature Preserve for security fencing in the Baylands. The design is compatible with the sidewalks, roadway, utilities and other existing improvements. The proposed fencing is the City of Palo Alto Page 10 best available option to meet FAA requirements while also ensuring compatibility with the open space and associated recreational trails adjacent to the site area. The proposed fencing would also replace several different types of existing fencing at the site, the new fence and gates would provide a more unifying character to the site. The proposed fence would increase security for the existing buildings and would not involve any additions or changes to the existing buildings at the site. Bay Conservation and Development Commission On March 14, 2016, PAO applied for a permit amendment with the Bay Conservation and Development Commission (BCDC) since the BCDC's shoreline band jurisdiction extends 100 feet inland from the bay where a portion of the Airfield Perimeter Fencing project lies. On June 30 2016, an amended permit allowing the perimeter fence replacement was received by BCDC for the project (Attachment H). Policy Implications This CIP project is consistent with one of City Council’s 2016 priorities: Infrastructure. Attachments: Attachment A - FAA NEPA Cate-Ex_12-16-15 (PDF) Attachment B - Notice of Exemption - CEQA June 15_2016 (PDF) Attachment C - C17163874 PAO Fence FINAL Aug 10_unsigned K-GB (PDF) Attachment D - CS Engineers Inc. - Amendment No Two (PDF) Attachment E - O75.001.006 Bid Tabulation 06-07-16 (PDF) Attachment F - Planning Approval Letter 6-1-16 (PDF) Attachment G - BCDC Permit No M1976.058.02_Amendment No Two_6-30-16 (PDF) Attachment A U.S. Department of Transportation Federal Aviation Administration December 16, 2015 Mr. Andrew Swanson Airport Manager Palo Alto Airport City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Western-Pacific Region Airports Division Received Polo Alto Airport OEC 11 '~ CitV of Palo AltCI pualit wer~ San Francisco Airports District Office 1000 Marina Boulevard, Suite 220 Brisbane, CA 94005-1835 Subject: Environmental Evaluation of Palo Alto Airport Project: Perimeter Fence Replacement Dear Mr. Swanson: The Federal Aviation Administration (FAA) has reviewed the environmental information you submitted for the Palo Alto Airport project: Perimeter Fence Replacement. The FAA has determined the proposed project is Categorically Excluded pursuant to FAA Order 1050.lE as it relates to the National Environmental Policy Act of 1969, as amended (NEPA) provided that the City of Palo Alto follows the measures to minimize potential environmental effects of the project identified on pages A-19 and A- 20 of Documented Categorical Exclusion 'you certified as correct on November 24, 2015 and subsequently submitted to the FAA. Those measures include: • A void disturbing areas identified as seasonal wetland, pickleweed mats, drainage ditches, or seep wetlands. • Project shall not be implemented during nesting bird season (February 1 through August 31 ), otherwise further avoidance and minimization measures will be necessary. • A preconstruction survey of all access routes and the construction area must be completed no more than 30 days prior to construction activities. Suitable western burrowing owl burrows must be marked for complete avoidance; otherwise a Burrowing Owl Exclusion Plan must be developed in consultation with the California Department of Fish and Wildlife. • A qualified biologist will develop and implement a worker environmental awareness program detailing protections for potential special-status species that may be encountered in or adjacent to the Project site. • A biologist familiar with the biology and ecology of potentially occurring species shall be present during construction of the fence along the eastern and southern portions of the Project. Therefore, no further federal environmental disclosure documentation for this project is necessary for NEPA purposes. This letter notifies you that the proposed project has complied with NEPA only. This is not a notice of final project approval of funding availability. If you have any questions regarding this matter I am available at 650-827-7612, or email me at Douglas.Pomeroy@faa.gov. Sincerely, ~:t:m~o~~ Environmental Protection Specialist 2 Invitation for Bid (IFB) Package 1 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C17163874 City of Palo Alto “Airfield Perimeter Fencing and Gate Upgrades” Project Attachment C Invitation for Bid (IFB) Package 2 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. April 27, 2016 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. April 27, 2016 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. April 27, 2016 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 SECTION 33 FEDERAL CONTRACT PROVISIONS………………………………..………………………………..…21 Invitation for Bid (IFB) Package 6 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on August 29, 2016 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and GOLDEN BAY FENCE PLUS IRON WORKS, INC. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor’s License Number 664905 and Department of Industrial Relations Registration Number 100000720. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On May 3, 2016, City issued an Invitation for Bids (IFB) to contractors for the “Airfield Perimeter Fencing and Gate Upgrades” (“Project”). In response to the IFB, Contractor submitted a Bid. The Project will be funded in part by an Airport Improvement Grant from the Federal Aviation Administration. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the “Airfield Perimeter Fencing and Gate Upgrades” Project, located at the Palo Alto Airport, 1925 Embarcadero Road, Palo Alto, CA 94303 ("Project"). Invitation for Bid (IFB) Package 7 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed within thirty (30) calendar days after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of Five Hundred dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled Invitation for Bid (IFB) Package 9 Rev. April 27, 2016 CONSTRUCTION CONTRACT to set off the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Seven Hundred Fifty-five Thousand Five Hundred Ten Dollars ($1,755,510.00). 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venture or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: James Wadleigh OR Invitation for Bid (IFB) Package 12 Rev. April 27, 2016 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Golden Bay Fence Plus Iron Works, Inc. 4104 South B Street Stockton, CA 95206 Attn: Paul W. Chavez 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. April 27, 2016 CONSTRUCTION CONTRACT liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. April 27, 2016 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. April 27, 2016 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. April 27, 2016 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be Invitation for Bid (IFB) Package 19 Rev. April 27, 2016 CONSTRUCTION CONTRACT obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the Invitation for Bid (IFB) Package 20 Rev. April 27, 2016 CONSTRUCTION CONTRACT provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection Invitation for Bid (IFB) Package 21 Rev. April 27, 2016 CONSTRUCTION CONTRACT or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. SECTION 33. Federal Requirements The following provisions are required as a condition of federal funding. To the extent that a provision of this Section 33 conflicts with any other Section of this Agreement, the requirements of Section 33 shall prevail. Contractor agrees as follows: a. GENERAL CIVIL RIGHTS PROVISIONS Contractor agrees that it will comply with pertinent statutes, Executive Orders, and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefiting from Federal assistance. This provision binds the Contractor from the bid solicitation period through the completion of the contract (including all Letters-of-Authorization issued thereunder). This provision is in addition to that required of Title VI of the Civil Rights Act of 1964. This provision also obligates the tenant/concessionaire/lessee or its transferee for the period during which Federal assistance is extended to the City of Palo Alto, as Sponsor of the Palo Alto Airport, through the Airport Improvement Program, except where Federal assistance is to provide, or is in the form of, personal property; real property or interest therein; structures or improvements thereon. In these cases, the provision obligates the party or any transferee for the longer of the following Invitation for Bid (IFB) Package 22 Rev. April 27, 2016 CONSTRUCTION CONTRACT periods: (a) the period during which the property is used by the Airport sponsor or any transferee for a purpose for which Federal assistance is extended, or for another purpose involving the provision of similar services or benefits; or (b) the period during which the Airport sponsor or any transferee retains ownership or possession of the property. b. CIVIL RIGHTS – TITLE VI ASSURANCES. Title VI Solicitation Notice: The Airport Sponsor, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations promulgated thereunder, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award. Compliance with Nondiscrimination Requirements During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees as follows: 1. Compliance with Regulations: The contractor (hereinafter includes consultants) will comply with the Title VI List of Pertinent Nondiscrimination Statutes and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract. 2. Non-discrimination: The contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The contractor will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21. 3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the contractor of the contractor’s obligations under this contract and the Acts and the Regulations relative to Non- discrimination on the grounds of race, color, or national origin. 4. Information and Reports: The contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined Invitation for Bid (IFB) Package 23 Rev. April 27, 2016 CONSTRUCTION CONTRACT by the sponsor or the Federal Aviation Administration to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, the contractor will so certify to the sponsor or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance: In the event of a contractor’s noncompliance with the Non- discrimination provisions of this contract, the sponsor will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to: a. Withholding payments to the contractor under the contract until the contractor complies; and/or b. Cancelling, terminating, or suspending a contract, in whole or in part. 6. Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The contractor will take action with respect to any subcontract or procurement as the sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the contractor may request the sponsor to enter into any litigation to protect the interests of the sponsor. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States. Title VI List of Pertinent Nondiscrimination Authorities (Source: Appendix E of Appendix 4 of FAA Order 1400.11, Nondiscrimination in Federally-Assisted Programs at the Federal Aviation Administration) During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following non- discrimination statutes and authorities; including but not limited to: • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); • 49 CFR part 21 (Non-discrimination In Federally-Assisted Programs of The Department of Transportation—Effectuation of Title VI of The Civil Rights Act of 1964); • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR part 27; Invitation for Bid (IFB) Package 24 Rev. April 27, 2016 CONSTRUCTION CONTRACT • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations at 49 CFR parts 37 and 38; • The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures non-discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq). ACCESS TO RECORDS AND REPORTS The Contractor must maintain an acceptable cost accounting system. The Contractor agrees to provide the Sponsor, the Federal Aviation Administration, and the Comptroller General of the United States or any of their duly authorized representatives access to any books, documents, papers, and records of the contractor which are directly pertinent to the specific contract for the purpose of making audit, examination, excerpts and transcriptions. The Contractor agrees to maintain all books, records and reports required under this contract for a period of not less than three years after final payment is made and all pending matters are closed. Invitation for Bid (IFB) Package 25 Rev. April 27, 2016 CONSTRUCTION CONTRACT BREACH OF CONTRACT TERMS Any violation or breach of terms of this contract on the part of the contractor or its subcontractors may result in the suspension or termination of this contract or such other action that may be necessary to enforce the rights of the parties of this agreement. The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. BUY AMERICAN CERTIFICATION If there is equipment acquired under the contract, the contractor agrees to comply with 49 USC§ 50101, which provides that Federal funds may not be obligated unless all steel and manufactured goods used in AIP-funded projects are produced in the United States, unless the FAA has issued a waiver for the product; the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition Regulation subpart 25.108; or is included in the FAA Nationwide Buy American Waivers Issued list. A bidder or offerer must submit the appropriate Buy America certification with all bids or offers on AIP funded projects. Bids or offers that are not accompanied by a completed Buy America certification must be rejected as nonresponsive. CLEAN AIR AND WATER POLLUTION CONTROL Contractors and subcontractors agree: 1. That any facility to be used in the performance of the contract or subcontract or to benefit from the contract is not listed on the Environmental Protection Agency (EPA) List of Violating Facilities; 2. To comply with all the requirements of Section 114 of the Clean Air Act, as amended, 42 U.S.C. 1857 et seq. and Section 308 of the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq. relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in Section 114 and Section 308 of the Acts, respectively, and all other regulations and guidelines issued thereunder; 3. That, as a condition for the award of this contract, the contractor or subcontractor will notify the awarding official of the receipt of any communication from the EPA indicating that a facility to be used for the performance of or benefit from the contract is under consideration to be listed on the EPA List of Violating Facilities; 4. To include or cause to be included in any construction contract or subcontract which exceeds $100,000 the aforementioned criteria and requirements. CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS 1. Overtime Requirements. Invitation for Bid (IFB) Package 26 Rev. April 27, 2016 CONSTRUCTION CONTRACT No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards, in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 2. Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of any violation of the clause set forth in paragraph (1) above, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph 1 above, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1 above. 3. Withholding for Unpaid Wages and Liquidated Damages. The Federal Aviation Administration or the Sponsor shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any monies payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph 2 above. 4. Subcontractors. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs 1 through 4 and also a clause requiring the subcontractor to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 1 through 4 of this section. CERTIFICATE REGARDING DEBARMENT AND SUSPENSION (BIDDER OR OFFEROR) By submitting a bid/proposal under this solicitation, the bidder or offeror certifies that at the time the bidder or offeror submits its proposal that neither it nor its principals are presently debarred or suspended by any Federal department or agency from participation in this transaction. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (SUCCESSFUL BIDDER REGARDING LOWER TIER PARTICIPANTS) The successful bidder, by administering each lower tier subcontract that exceeds $25,000 as a “covered Invitation for Bid (IFB) Package 27 Rev. April 27, 2016 CONSTRUCTION CONTRACT transaction”, must verify each lower tier participant of a “covered transaction” under the project is not presently debarred or otherwise disqualified from participation in this federally assisted project. The successful bidder will accomplish this by: 1. Checking the System for Award Management at website: http://www.sam.gov 2. Collecting a certification statement similar to the Certificate Regarding Debarment and Suspension (Bidder or Offeror), above. 3. Inserting a clause or condition in the covered transaction with the lower tier contract If the FAA later determines that a lower tier participant failed to tell a higher tier that it was excluded or disqualified at the time it entered the covered transaction, the FAA may pursue any available remedy, including suspension and debarment. DISADVANTAGED BUSINESS ENTERPRISES Contract Assurance (§ 26.13) - The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as the recipient deems appropriate. Prompt Payment (§26.29) - The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than seven (7) days from the receipt of each payment the prime contractor receives from Sponsor. The prime contractor agrees further to return retainage payments to each subcontractor within seven (7) days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the Sponsor. This clause applies to both DBE and non-DBE subcontractors. FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM WAGE) All contracts and subcontracts that result from this solicitation incorporate the following provisions by reference, with the same force and effect as if given in full text. The contractor has full responsibility to monitor compliance to the referenced statute or regulation. The contractor must address any claims or disputes that pertain to a referenced requirement directly with the Federal Agency with enforcement responsibilities. Requirement Federal Agency with Enforcement Responsibilities Invitation for Bid (IFB) Package 28 Rev. April 27, 2016 CONSTRUCTION CONTRACT Requirement Federal Agency with Enforcement Responsibilities Federal Fair Labor Standards Act (29 USC 201) U.S. Department of Labor – Wage and Hour Division LOBBYING AND INFLUENCING FEDERAL EMPLOYEES The bidder or offeror certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder or offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. MANDATORY CONTRACT LANGUAGE. All contracts and subcontracts that result from this solicitation incorporate the following provisions by reference, with the same force and effect as if given in full text. The contractor has full responsibility to monitor compliance to the referenced statute or regulation. The contractor must address any claims or disputes that pertain to a referenced requirement directly with the Federal Agency with enforcement responsibilities. Requirement Federal Agency with Enforcement Responsibilities Invitation for Bid (IFB) Package 29 Rev. April 27, 2016 CONSTRUCTION CONTRACT Requirement Federal Agency with Enforcement Responsibilities Occupational Safety and Health Act of 1970 (20 CFR Part 1910) U.S. Department of Labor – Occupational Safety and Health Administration RIGHTS TO INVENTIONS All rights to inventions and materials generated under this contract are subject to requirements and regulations issued by the FAA and the Sponsor of the Federal grant under which this contract is executed. TERMINATION OF CONTRACT a. The Sponsor may, by written notice, terminate this contract in whole or in part at any time, either for the Sponsor's convenience or because of failure to fulfill the contract obligations. Upon receipt of such notice services must be immediately discontinued (unless the notice directs otherwise) and all materials as may have been accumulated in performing this contract, whether completed or in progress, delivered to the Sponsor. b. If the termination is for the convenience of the Sponsor, an equitable adjustment in the contract price will be made, but no amount will be allowed for anticipated profit on unperformed services. c. If the termination is due to failure to fulfill the contractor's obligations, the Sponsor may take over the work and prosecute the same to completion by contract or otherwise. In such case, the contractor is liable to the Sponsor for any additional cost occasioned to the Sponsor thereby. d. If, after notice of termination for failure to fulfill contract obligations, it is determined that the contractor had not so failed, the termination will be deemed to have been effected for the convenience of the Sponsor. In such event, adjustment in the contract price will be made as provided in paragraph 2 of this clause. e. The rights and remedies of the sponsor provided in this clause are in addition to any other rights and remedies provided by law or under this contract. TRADE RESTRICTION CLAUSE The contractor or subcontractor, by submission of an offer and/or execution of a contract, certifies that it: a. is not owned or controlled by one or more citizens of a foreign country included in the list of countries that discriminate against U.S. firms published by the Office of the United States Trade Invitation for Bid (IFB) Package 30 Rev. April 27, 2016 CONSTRUCTION CONTRACT Representative (USTR); b. has not knowingly entered into any contract or subcontract for this project with a person that is a citizen or national of a foreign country on said list, or is owned or controlled directly or indirectly by one or more citizens or nationals of a foreign country on said list; c. has not procured any product nor subcontracted for the supply of any product for use on the project that is produced in a foreign country on said list. Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to a contractor or subcontractor who is unable to certify to the above. If the contractor knowingly procures or subcontracts for the supply of any product or service of a foreign country on said list for use on the project, the Federal Aviation Administration may direct through the Sponsor cancellation of the contract at no cost to the Government. Further, the contractor agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification without modification in each contract and in all lower tier subcontracts. The contractor may rely on the certification of a prospective subcontractor unless it has knowledge that the certification is erroneous. The contractor shall provide immediate written notice to the sponsor if the contractor learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by reason of changed circumstances. The subcontractor agrees to provide written notice to the contractor if at any time it learns that its certification was erroneous by reason of changed circumstances. This certification is a material representation of fact upon which reliance was placed when making the award. If it is later determined that the contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration may direct through the Sponsor cancellation of the contract or subcontract for default at no cost to the Government. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. This certification concerns a matter within the jurisdiction of an agency of the United States of America and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under Title 18, United States Code, Section 1001. DAVIS-BACON ACT PROVISIONS 1. All mechanics and laborers employed or working upon the site of the work will be paid unconditionally and not less often than once a week and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3), the full amounts due at time of payment computed at wage rates not less than those contained in the wage determination decision(s) of the Invitation for Bid (IFB) Package 31 Rev. April 27, 2016 CONSTRUCTION CONTRACT Secretary of Labor which is (are) attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics; and the wage determination decision(s) shall be posted by the contractor at the site of the work in a prominent place where it (they) can be easily seen by the workers. For the purpose of this paragraph, contributions made or costs reasonably anticipated under Section 1(b) (2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of Subparagraph 4 below. Also for the purpose of this paragraph, regular contributions made or costs incurred for more than a weekly period under plans, funds, or programs, but covering the particular weekly period, are deemed to be constructively made or incurred during such weekly period [29 CFR 5.5(a)(1)(i)]. 2. Any class of laborers or mechanics, including apprentices and trainees, which is not listed in the wage determination(s) and which is to be employed under the contract, shall be classified or reclassified conformably to the wage determination(s), and a report of the action taken shall be sent by the SPONSOR to the FAA for approval and transmittal to the Secretary of Labor. In the event that the interested parties cannot agree on the proper classification or reclassification of a particular class of laborers and mechanics, including apprentices and trainees, to be used, the question accompanied by the recommendation of the FAA shall be referred to the Secretary of Labor for final determination [29 CFR 5.5(a)(1)(ii)]. 3. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage rate and the contractor is obligated to pay a cash equivalent of such a fringe benefit, an hourly cash equivalent thereof shall be established. In the event the interested parties cannot agree upon a cash equivalent of the fringe benefit, the question accompanied by the recommendation of the FAA shall be referred to the Secretary of Labor for determination [29 CFR 5.5(a) (1)(iii)]. 4. If the Contractor does not make payments to a trustee or other third person, he may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing benefits under a plan or program of a type expressly listed in the wage determination decision of the Secretary of Labor which is a part of this contract. Provided, however, the Secretary of Labor has found, upon the written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. SPECIAL GRANT CONDITIONS Office of Management and Budget issued Memorandum M-08-03 implementing Section 106(g) of the Trafficking Victims Protection Act of 2000, as amended (TVPA) (22 U.S.C. 7104(g)). TRAFFICKING IN PERSONS: a. Provisions applicable to a recipient that is a private entity. 1. You as the recipient, your employees, subrecipients under this award, and subrecipients’ employees may not— Invitation for Bid (IFB) Package 32 Rev. April 27, 2016 CONSTRUCTION CONTRACT i. Engage in severe forms of trafficking in persons during the period of time that the award is in effect; ii. Procure a commercial sex act during the period of time that the award is in effect; or iii. Use forced labor in the performance of the award or subawards under the award. BAN ON TEXTING WHEN DRIVING A. In accordance with Executive Order 13513, Federal Leadership on Reducing Text Messaging While Driving, October 1, 2009, and DOT Order 3902.10, Text Messaging While Driving, December 30, 2009, the Sponsor is encouraged to: 1. Adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government, including work relating to a grant or subgrant. 2. Conduct workplace safety initiatives in a manner commensurate with the size of the business, such as: a. Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and b. Education, awareness, and other outreach to employees about the safety risks associated with texting while driving. B. The Sponsor must insert the substance of this clause on banning texting when driving in all subgrants, contracts and subcontracts IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. Invitation for Bid (IFB) Package 33 Rev. April 27, 2016 CONSTRUCTION CONTRACT CITY OF PALO ALTO City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee PWD APPROVED: Public Works Director GOLDEN BAY FENCE PLUS IRON WORKS, INC. Officer 1 By: Name: Title: Officer 2 By: Name: Title: 1 Revision July 20, 2016 AMENDMENT NO. TWO TO CONTRACT NO. C15155208A BETWEEN THE CITY OF PALO ALTO AND C & S ENGINEERS, INC. This Amendment No. Two to Contract No. C15155208A (“Contract”) is entered into August 22, 2016, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and C & S ENGINEEERS, INC., a New York corporation, located at 499 Col. Eileen Collins Boulevard, Syracuse, New York 13212 (“CONSULTANT”). R E C I T A L S A. The Contract was entered into between the parties for the provision of On-call engineering services including planning, design engineering, environmental analyses, grant management and construction management. B. The parties wish to amend the Contract to increase the funding to cover an additional task order. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 4. NOT TO EXCEED COMPENSATION is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services as amended above, including payment for professional services, shall not exceed One Million One Hundred Eight Thousand Three Hundred Twenty Nine Dollars ($1,108,329).” SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. DocuSign Envelope ID: E65375EC-7536-4BCE-8AFA-7D6F438827F7 Attachment D 2 Revision July 20, 2016 CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: ____________________________ City Attorney ____________________________ Director of Public Works C & S ENGINEERS, INC. By: Name: Title: By: Name: Title: DocuSign Envelope ID: E65375EC-7536-4BCE-8AFA-7D6F438827F7 Jessica Bryan Department Manager Michael D Hotaling Senior Vice President (PAO) PALO ALTO AIRPORT ENGINEER'S OPINION OF CRUSADER FENCE CO. INC. AIRFIELD PERIMETER FENCING AND GATE UPGRADES CONSTRUCTION COST 1600 Benicia Road CIP: AP-16003 C&S ENGINEERS, INC. Vallejo, CA 95810 4104 S. B. Street IFB NO. 163874 8950 Cal Center Drive Stockton, CA 95206 Suite 112 Sacramento, CA 95826 ITEM FAA UNIT UNIT UNIT NO. SPEC NO. DESCRIPTION QUANTITY UNITS PRICE TOTAL PRICE TOTAL PRICE TOTAL BASE BID 001 P-156 COMPLIANCE W/ POLLUTION, EROSION & SILTATION CTRL.1 LS $15,000.00 $15,000.00 $6,500.00 $6,500.00 $10,000.00 $10,000.00 002 F-162 8-FOOT PVC COATED CHAIN LINK FENCE 11,000 LF $75.00 $825,000.00 $53.00 $583,000.00 $70.00 $770,000.00 003 F-162 8-FOOT PVC COATED CHAIN LINK FENCE WITH PRIVACY SLATS 675 LF $85.00 $57,375.00 $65.00 $43,875.00 $38.00 $25,650.00 004 F-162 6-FOOT PVC COATED FRANGIBLE FENCE 250 LF $50.00 $12,500.00 $70.00 $17,500.00 $350.00 $87,500.00 005 F-162 4-FOOT PVC COATED PRE-HUNG PEDESTRIAN GATE 12 EACH $2,500.00 $30,000.00 $6,200.00 $74,400.00 $2,645.00 $31,740.00 006 F-162 16-FOOT PVC COATED CHAIN LINK MANUAL CANTILEVER GATE 1 EACH $3,000.00 $3,000.00 $11,000.00 $11,000.00 $9,540.00 $9,540.00 007 F-162 16-FOOT PVC COATED CHAIN LINK MANUAL DOUBLE SWING GATE 6 EACH $3,000.00 $18,000.00 $4,525.00 $27,150.00 $2,711.00 $16,266.00 008 F-162 20-FOOT PVC COATED CHAIN LINK MANUAL CANTILEVER GATE 2 EACH $4,000.00 $8,000.00 $12,575.00 $25,150.00 $9,821.00 $19,642.00 009 F-162 20-FOOT PVC COATED CHAIN LINK MANUAL CANTILEVER GATE WITH PRIVACY SLATS 1 EACH $3,700.00 $3,700.00 $5,600.00 $5,600.00 $9,936.00 $9,936.00 010 F-162 20-FOOT PVC COATED CHAIN LINK MANUAL DOUBLE SWING GATE 1 EACH $3,500.00 $3,500.00 $6,000.00 $6,000.00 $2,833.00 $2,833.00 011 F-162 REMOVAL OF EXISTING FENCE AND GATES AND RESTORATION 11,925 LF $5.75 $68,568.75 $31.28 $373,000.00 $21.00 $250,425.00 012 L-119 SOLAR POWERED OBSTRUCTION LIGHTS 24 EACH $500.00 $12,000.00 $2,500.00 $60,000.00 $3,000.00 $72,000.00 013 L-128 14-FOOT PVC COATED CHAIN LINK AUTOMATIC SWING GATE 2 EACH $50,000.00 $100,000.00 $43,000.00 $86,000.00 $73,515.00 $147,030.00 014 L-129 16-FOOT PVC COATED AUTOMATIC CANTILEVER VEHICLE GATE 1 EACH $50,000.00 $50,000.00 $85,000.00 $85,000.00 $72,487.00 $72,487.00 015 L-128 20-FOOT PVC COATED AUTOMATIC CANTILEVER VEHICLE GATE - EXISTING ELECTRICAL 1 EACH $50,000.00 $50,000.00 $90,000.00 $90,000.00 $75,222.00 $75,222.00 016 L-128 20-FOOT PVC COATED AUTOMATIC CANTILEVER VEHICLE GATE - NEW ELECTRICAL 1 EACH $65,000.00 $65,000.00 $95,000.00 $95,000.00 $75,239.00 $75,239.00 017 M-100 MAINTENANCE AND PROTECTION OF TRAFFIC 1 LS $35,000.00 $35,000.00 $36,500.00 $36,500.00 $10,000.00 $10,000.00 GOLDEN BAY FENCE PLUS IRON WORKS, INC. Page 1 Attachment E (PAO) PALO ALTO AIRPORT ENGINEER'S OPINION OF CRUSADER FENCE CO. INC. AIRFIELD PERIMETER FENCING AND GATE UPGRADES CONSTRUCTION COST 1600 Benicia Road CIP: AP-16003 C&S ENGINEERS, INC. Vallejo, CA 95810 4104 S. B. Street IFB NO. 163874 8950 Cal Center Drive Stockton, CA 95206 Suite 112 Sacramento, CA 95826 ITEM FAA UNIT UNIT UNIT NO. SPEC NO. DESCRIPTION QUANTITY UNITS PRICE TOTAL PRICE TOTAL PRICE TOTAL GOLDEN BAY FENCE PLUS IRON WORKS, INC. 018 M-150 SURVEY AND STAKEOUT 1 LS $20,000.00 $20,000.00 $6,500.00 $6,500.00 $20,000.00 $20,000.00 019 GP-105 MOBILIZATION (6% MAXIMUM)1 LS $78,000.00 $78,000.00 $15,000.00 $15,000.00 $50,000.00 $50,000.00 $1,454,643.75 $1,647,175.00 $1,755,510.00 ALTERNATE NO. 1 001 F-162 8-FOOT PVC COATED CHAIN LINK FENCE -2,100 LF $75.00 -$157,500.00 $50.00 -$105,000.00 $41.00 -$86,100.00 002 F-162 4-FOOT PVC COATED PRE-HUNG PEDESTRIAN GATE -10 EACH $2,000.00 -$20,000.00 $5,500.00 -$55,000.00 $2,645.00 -$26,450.00 003 F-162 16-FOOT PVC COATED CHAIN LINK MANUAL DOUBLE SWING GATE -2 EACH $2,500.00 -$5,000.00 $4,000.00 -$8,000.00 $2,711.00 -$5,422.00 004 F-162 20-FOOT PVC COATED CHAIN LINK MANUAL DOUBLE SWING GATE -1 EACH $3,000.00 -$3,000.00 $4,300.00 -$4,300.00 $2,833.00 -$2,833.00 005 F-162 8-FOOT ORNAMENTAL IRON FENCE 2,100 LF $90.00 $189,000.00 $195.00 $409,500.00 $119.00 $249,900.00 006 F-162 4-FOOT ORNAMENTAL IRON PRE-HUNG PEDESTRIAN GATE 10 EACH $2,500.00 $25,000.00 $6,900.00 $69,000.00 $4,230.00 $42,300.00 007 F-162 16-FOOT ORNAMENTAL IRON MANUAL DOUBLE SWING GATE 2 EACH $3,500.00 $7,000.00 $9,400.00 $18,800.00 $6,265.00 $12,530.00 008 F-162 20-FOOT ORNAMENTAL DOUBLE SWING GATE 1 EACH $3,500.00 $3,500.00 $9,400.00 $9,400.00 $13,069.00 $13,069.00 009 L-128 14-FOOT PVC COATED CHAIN LINK AUTOMATIC SWING GATE -2 EACH $40,000.00 -$80,000.00 $43,000.00 -$86,000.00 $73,515.00 -$147,030.00 010 L-128 20-FOOT PVC COATED AUTOMATIC CANTILEVER VEHICLE GATE - EXISTING ELECTRICAL -1 EACH $40,000.00 -$40,000.00 $90,000.00 -$90,000.00 $75,239.00 -$75,239.00 011 L-128 20-FOOT PVC COATED AUTOMATIC CANTILEVER VEHICLE GATE - NEW ELECTRICAL -1 EACH $50,000.00 -$50,000.00 $95,000.00 -$95,000.00 $75,222.00 -$75,222.00 012 L-128 14-FOOT ORNAMENTAL IRON SINGLE SWING GATE 2 EACH $50,000.00 $100,000.00 $9,300.00 $18,600.00 $9,099.00 $18,198.00 013 L-128 20-FOOT ORNAMENTAL IRON AUTOMATIC CANTILEVER SLIDING GATE - EXISTING ELECTRICAL 1 EACH $50,000.00 $50,000.00 $105,000.00 $105,000.00 $73,212.00 $73,212.00 014 L-128 20-FOOT ORNAMENTAL IRON AUTOMATIC CANTILEVER GATE - NEW ELECTRICAL 1 EACH 60000 $60,000.00 $120,000.00 $120,000.00 87634 $87,634.00 $79,000.00 $307,000.00 $78,547.00 $1,533,643.75 $1,954,175.00 $1,834,057.00 BASE BID TOTAL ALTERNATE NO. 1 TOTAL TOTAL BASE BID + ALTERNATE NO. 1 Page 2 Attachment E Attachment E ATTACHMENT A ARB FINDINGS FOR APPROVAL 1925 Embarcadero 16PLN-00145 The design and architecture of the proposed improvements, as conditioned, complies with the Findings for Architectural Review as required in Chapter 18. 76 of the PAMC. Comprehensive Plan and Purpose of ARB: Federal law prohibits the installation of a project that would be in compliance with the City's regulations, City of Palo Alto Comprehensive Plan, and Site Assessment and Design Guidelines for the Palo Alto Baylands Preserve. Given those limitations, the proposed project is consistent with: Finding #1: The design is consistent and compatible with applicable elements of the comprehensive plan and the City had legal authority to comply. Finding #16: The design is consistent and compatible with the purpose of architectural review, which is to: • Promote orderly and harmonious development in the city; • Enhance the desirability of residence or investment in the city; • Encourage the attainment of the most desirable use of land and improvements; • Enhance the desirability of living conditions upon the immediate site or in adjacent areas; and • Promote visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other. The project is consistent with Findings #1 and #16 because: The design is compatible with the immediate environment of the site in that the replacement fencing and gates are located in the same location as the existing fence and gates and would not change the existing use of the site. The replacement of the fence would ensure that FAA requirements for safety and security to protect the general public and wildlife are met for the continued safe operation of the airport. The proposed material and color of the fencing is consistent with the material identified in the Site Assessment and Design Guidelines for the Palo Alto Baylands Preserve for security fencing in the Baylands. The design is compatible with the sidewalks, roadway, utilities and other existing improvements. Landscaping and Plant Materials: Finding #11: Natural features are appropriately preserved and integrated with the project. Finding #12: The materials, textures and colors and details of construction and plant material are an appropriate expression to the design and function and compatible with the adjacent and neighboring structures, landscape elements and functions. Finding #13: The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment on the site and the landscape concept depicts an appropriate unit with the various buildings on the site. Finding #14: Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety that would tend to be drought-resistant and to reduce consumption of water in its installation and maintenance. The project is consistent with Findings #11-#14 because: The proposed project would include minimal trimming of City trees and only trees in poor condition would be removed in coordination with the City of Palo Alto Public Works Urban Forestry Division. No new landscaping is planned. The proposed fence meets FAA requirements for safety and security and is therefore appropriate to the function of the facility. The black vinyl-coated chain link fencing is also complementary to the environmental setting consistent with adjacent open space areas. Sustainability: Finding #15: The design is energy efficient and incorporates renewable energy design elements including, but not limited to: a. Careful building orientation to optimize daylight to interiors b. High performance, low-emissivity glazing c. Cool roof and roof insulation beyond Code minimum d. Solar ready roof e. Use of energy efficient LED lighting f. Low-flow plumbing and shower fixtures g. Below grade parking to allow for increased landscape and stormwater treatment areas The project is consistent with Finding #15 because: Approximately 90 percent of the new PVC coated steel fence would be made from recycled material and the existing fence would be recycled to the extent feasible. Recycling for the existing fence would be tracked and reported. Therefore, replacement of the existing fencing would not result in any change to sustainability at the site. PLANNING DIVISION ATTACHMENT B CONDITIONS OF APPROVAL 1925 Embarcadero Road 16PLN-00145 1. The project will be constructed in substantial conformance with plans received and date stamped May 4, 2016, except as modified to incorporate these conditions of approval. 2. The ARB approval letter including all Department conditions of approval for the project shall be printed on all construction plans. 3. Any changes to the fence such as size or location are subject to ARB review and approval prior to installation. 4. Wetlands: The applicant and its contractor will delineate work areas prior to construction. A biologist will be present in the field during construction, as proposed by the applicant, to verify that areas identified as wetlands in the April 2016 wetland delineation are avoided during construction. 5. Color and Materials: The color and material of the fence will be consistent with that proposed in the approve plan set and will consist of black, vinyl coated chain link fencing with three strand barbed wire on top except that privacy slats will be installed on a portion of the new fence adjacent to the existing material storage yard, as shown on the approved plan set. 6. Development Impact Fees. Given the proposed fencing will replace existing fencing and no square footage has been added, no impact fees are due. 7. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans. Any revisions during the construction process must be approved by Planning, including but not limited to; materials and location. Contact your Project Planner, Claire Hodgkins at claire.hodgkins@cityofpaloalto.org to schedule this inspection. PUBLIC WORKS URBAN FORESTRY SECTION PRIOR TO DEMOLITION OR GRADING PERMIT ISSUANCE 1. The Tree Preservation Report (TPR). All sheets of the Applicant's TPR, as prepared by the City of Palo Alto Urban Forestry Division's qualified arborist, shall be printed on numbered Sheet T-1 (T-2, T-3, etc.) and added to the sheet index for the construction plans. Attachment G San Francisco Bay Conservation_ and Development Commission 455 Golden Gate Avenue, Suite 10600, San Francisco, California 94102 tel 415 352 3600 fax 415 352 3606 City of Palo Alto 1925 Embarcadero Road Palo Alto, California 94303 ATIENTION: Andrew Swanson June 30, 2016 Received folo Alto Airport UYI. 1 1 . 1s City or Palo Alto Publie W'1tk§ SUBJECT: BCDC Permit No. M1976.058.02 (Amendment No. Two) Ladies and Gentlemen: Enclosed please find an original of BCDC Permit No. M1976.058.02, stamped "BCDC Original," and one copy stamped "Permittee's Copy," both executed by the Executive Director, incorporating the amendment requested in your letter dated March 12, 2016. In the amended permit, deleted language has been stnick tt:lrob!gt:l and added language has been underlined. I am issuing this amendment, which is included in the attached amended permit, on behalf of the Commission and upon the following findings and declarations: 1. This amendment to the permit is issued pursuant to Regulation Section 10810 upon the same criteria provided for the issuance of administrative permits in that the project authorized by this amendment, the replacement of a perimeter fence, is a "minor repair or improvement" for which the Executive Director may issue a permit, pursuant to Government Code Section 66632(f) and Regulation Section 10622(a). 2. The amendment to the permit is consistent with the San Francisco Bay Plan and the McAteer-Petris Act because the proposed project will not adversely affect the Bay nor public access to and enjoyment of the Bay consistent with the project. You must (1) complete the acknowledgment section of the amended permit stamped "BCDC Original," which indicates that you have read and that you understand all of the terms and conditions of the amended permit, and (2) return that entire executed "BCDC Original" to the Commission's office within the ten-day time period. The copy stamped "Permittee's Copy" should be retained by you for your records along with the Notice of Completion and Declaration of Compliance form, which you must return to the Commission upon project completion. Furthermore, your permit contains special conditions which require you to take certain specific actions. Please understand that no work may commence on the project until the permit stamped "BCDC Original" is executed and returned to the Commission. Until the Commission receives the executed permit, you do not have the necessary authorization for the work authorized under the permit. The commencement of any work within the Commission's jurisdiction without the necessary authorization from the Commission is a violation of the McAteer-Petris Act and could subject you to substantial fines. info@bcdc.ca.gov I www.bcdc.ca.gov State of California I Edmund G. Brown, Jr. -Governor • @50 -- PERMIT NO. M1976.058.02 {Issued Originally on July 28, 1976, As Amended Through June 30, 2016) AMENDMENT NO. TWO CITY OF PALO AL TO NOTICE OF COMPLETION AND DECLARATION OF COMPLIANCE San Francisco Bay Conservation and Development Commission 455 Golden Gate Avenue, Suite 10600 San Francisco, CA 94102 Ladies and Gentlemen: You are hereby informed that the work authorized by the above-referenced amended permit was completed on ___ _ I have personally reviewed the terms and conditions of the amended permit, the final plans approved by or on behalf of the Commission, and the completed project and hereby certify that the project is in compliance with all terms and conditions of the amended permit and conforms to the plans previously reviewed and approved by or on behalf of the Commission. I further certify that all conditions of the amended permit, particularly with regard to plan review, public access areas and improvements, recordation, open space restrictions and other special conditions have been met. I, , hereby declare under penalty of perjury that the foregoing is true and correct and that if called upon to testify to the contents of this notice, I would so testify. Executed on this _________ day of __________ _, 20 at , California. ~-' ---------------------- (Permittee) (Print Name and Title) City of Palo Alto (ID # 6958) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: MSC Fuel Station Demolition and Excavation Title: Approval of a Contract With Engineering/Remediation Resources Group, Inc. in the Amount Not-to-Exceed $180,007 for the Municipal Services Center Fuel Station Demolition and Excavation Capital Improvements Program Project VR-14002 and Approval of a Budget Amendment in the Vehicle Replacement and Maintenance Fund From: City Manager Lead Department: Public Works Recommended Motion Staff Recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with Engineering/Remediation Resources Group, Inc. (Attachment A) in an amount not to exceed $180,007 for the Municipal Service Center Fuel Station Demolition (Capital Improvement Program project VR-14002); 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Engineering/Remediation Resources Group, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $27,001; and 3. Amend the Fiscal Year 2017 Budget Appropriation for the Vehicle Replacement and Maintenance Fund by: a. Increasing the Capital Improvement Program appropriation for the MSC Fuel Station Demolition project (VR-14002) by $101,972; and City of Palo Alto Page 2 b. Decreasing the Vehicle Replacement and Maintenance Fund reserve by $101,972. Background The City of Palo Alto’s Municipal Service Center (MSC), located at 3201 East Bayshore Road, has an old fuel station located on the north side of the facility that is obsolete and has not been in use since a new fuel station was constructed in 2008 on the east side of the facility. The MSC Fuel Station Demolition Project (VR- 14002) includes demolition, excavation and removal of the old fuel station as well as demolition of the aboveground fuel storage tanks, associated equipment and structures, and restoration of the demolished area with asphalt pavement. In July 2014, the City contracted with TRC Solutions through a Request for Proposal process to prepare design and construction documents for the demolition and removal of the old fuel station and provide construction administration services. Following completion of the design, the City advertised the project for bid on May 3, 2016. In February 2016, the City entered into a Voluntary Cleanup Program agreement with the County of Santa Clara Department of Environmental Health (DEH), the regulatory oversight agency for characterization and potential remediation of the waste released from cleaning, excavation and demolition operation at the project site. The City’s Fire Department will be involved with site closure of the aboveground storage tanks and issuance of a Tank Closure Permit. Discussion The project scope includes: 1. Closure, removal and disposal of four on-site above ground fuel storage tanks (one 10,000 gallon diesel, one 10,000 gallon unleaded fuel, one 5,000 gallon ethyl gas, and one 200 gallon partially buried condensate) in accordance with all applicable federal, state, and local codes, ordinances and laws governing tank removal and disposal. 2. Demolition and disposal of all equipment, appurtenances and structures associated with the old fuel station; including the overhang structure, fueling island, concrete slabs, fueling pumps, associated mechanical City of Palo Alto Page 3 equipment, containment vault piping, metal staircases, vent piping and vent structure. 3. Excavation and removal of waste materials, including contaminated soil, abandoned utilities and subsurface concrete structures. Additive Bid Alternates 1-3 allow for an additional six inches of excavation if conditions in the field determine necessary. 4. Restoration of the project site with a new asphalt pavement surface. 5. Verification soil sampling as required by the County of Santa Clara DEH. 6. Abatement of asbestos-containing materials, lead-based paint and lead- containing paint in accordance with all applicable federal, state and local rules, regulations and requirements. Bid Process and Analysis: On May 3, 2016, the City advertised a notice inviting formal bids (IFB) for the MSC Fuel Station Demolition project. The bidding period was 63 calendar days. On July 5, 2016, bids were received from three qualified contractors as presented in the Bid Summary (Attachment B). Table 1 summarizes the bid process: Table 1. Summary of Bid Process Bid Name/Number MSC Fuel Station Demolition/IFB #164103 Proposed Length of Project 90 calendar days Number of Contractors who downloaded the IFB 31 Total Days to Respond to Bid 63 Pre-Bid Meeting May 17, 2016 Number of Company Attendees at Pre- Bid Meeting 6 Number of Bids Received: 3 Base Bid Price Range $169,998 - $453,001 Additive Bid Alternative Price Range $10,009 - $34,803 City of Palo Alto Page 4 The Engineer’s Estimate for the project is approximately $200,000 for base bid and $7,000 for additive bid alternates items (1 through 3), with a total cost estimate of $207,000. As presented in Table 1, the base bid prices ranged from a low bid of $169,998 to a high bid of $453,001, representing approximately 16% below to 138% above the engineer’s estimate of $200,000. Both the lowest base bid of $169,998 (approximately 16% below engineer’s estimate) and the lowest total bid (base plus additive alternate) of $180,007 (approximately 15% below engineer’s estimate) have been submitted by Engineering/Remediation Resources Group, Inc. (ERRG). After review of the bids received, staff has determined that ERRG is the lowest responsible bidder. Staff recommends the base bid of $169,998, plus additive alternates bid (1 through 3) of $10,009, for a total amount of $180,007, submitted by ERRG be accepted. The change order contingency amount of $27,001, which equals fifteen (15%) percent of the total contract, is requested for related, additional, but unforeseen work which may develop during the project. Staff recommends 15% contingency rather than the standard 10% to account for the special circumstances that arise from working on a hazardous waste site, including collaboration with the county and additional excavation, fill and testing that may be required. Staff checked references provided by ERRG for similar projects completed by the contractor and found the references to be satisfactory with no significant complaints with EERG’s previous work. Staff also checked the contractor’s licenses with the State License Board and found the licenses current and active. Resource Impact In Fiscal Year 2014, the City Council approved Capital Improvement Program (CIP) funds for the MSC Fuel Station Demolition project (VR-14002) in the amount of $240,000, which included design and construction estimates of $40,000 and $200,000, respectively. In FY 2016, $34,512 was budgeted for staff salaries and benefits. The following table compares the budgeted funding for the project with projected actuals. City of Palo Alto Page 5 Project Costs Prior Year Actuals (est.) FY 2017 Adopted Budget Recommended Adjustment FY2017 Amended budget Projected Project Total Design $23,656 $23,656 Construction $16,152 $186,935 $101,972 $288,907 $305,059 Other (permits, etc.) $50,672 $50,672 Total: $90,480 $186,935 $101,972 $288,907 $379,387 Staff salaries and benefits will significantly exceed the FY 2016 allocated budget for the project. Likewise, design and construction costs will exceed the budgeted amounts. Staff requests Council amend the Fiscal Year 2017 Budget Appropriation for the Vehicle Replacement and Maintenance Fund by increasing the Capital Improvement Program appropriation for the MSC Fuel Station Demolition project (VR-14002) by $101,972 and decreasing the Vehicle Replacement and Maintenance Fund reserve by $101,972 to provide sufficient funding to complete the project. Timeline Following Council approval of the construction contract, a 90-day construction phase starting in September 2016 and ending in December 2016 is anticipated. Policy Implications The proposed CIP recommendations are consistent with Policy C-24 of the Community Services element of the Comprehensive Plan, which encourages reinvesting in aging facilities to improve their usefulness and appearance and avoiding deferred maintenance of City infrastructure. Environmental Review The proposed improvements are exempt under the California Environmental Quality Act (CEQA) Category 30, Section 15330 guidelines, minor actions to prevent, minimize, stabilize, mitigate, or eliminate the release or threat of release of hazardous waste or hazardous substances. Attachments: Attachment A - IFB164103 Construction Contract_MSC Fuel Station (DOCX) City of Palo Alto Page 6 Attachment B - 164103-MSC BidResultsSummary (PDF) Invitation for Bid (IFB) Package 1 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C17164103 City of Palo Alto Municipal Service Center Fuel Station Demolition And Excavation Project Invitation for Bid (IFB) Package 2 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. April 27, 2016 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. April 27, 2016 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. April 27, 2016 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and Engineering Remediation Resources Group, Inc. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a California Corporation duly organized and in good standing in the State of California, Contractor’s License Number 743750 and Department of Industrial Relations Registration Number 1000012186. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On May 3, 2016, City issued an Invitation for Bids (IFB) to contractors for the Municipal Service Center Fuel Station Demolition and Excavation (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Municipal Service Center Fuel Station Demolition and Excavation Project, located at 3201 E. Bayshore Road, Palo Alto, CA. ("Project"). Invitation for Bid (IFB) Package 7 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within ninety calendar days (90) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of five hundred dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable Invitation for Bid (IFB) Package 9 Rev. April 27, 2016 CONSTRUCTION CONTRACT estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Hundred Eighty Thousand Seven Dollars($180,007). [This amount includes the Base Bid and Additive Alternates 1-3.] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Elizabeth Ames AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. April 27, 2016 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: ENGINEERING REMEDIATION RESOURCES GROUP INC Attn: Rowan Tucker 115 Sansome Street, Suite 200. San Francisco, CA 94104 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. April 27, 2016 CONSTRUCTION CONTRACT liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. April 27, 2016 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. April 27, 2016 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. April 27, 2016 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work Invitation for Bid (IFB) Package 19 Rev. April 27, 2016 CONSTRUCTION CONTRACT in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. April 27, 2016 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. April 27, 2016 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:_________________________ Date: _________________________ Officer 2 (Required for Corp. or LLC) By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Attachment B ‐ Bid Results for MSC Fuel Station Demolition and Excavation (IFB164103)Attachment B Issued on 05/03/2016 Bid Due on July 5, 2016 Bid Summary Base Bid Items Item # Description Unit Quantity Unit Price Total Item Cost Unit Price Total Item Cost Unit Price Total Item Cost 1 Mobilization and Demobilization LS 1 $21,820 $21,820 $32,000 $32,000 $11,724 $11,724 2 Traffic Control LS 1 $3,320 $3,320 $1,700 $1,700 $16,770 $16,770 3 Overhang and Pump Station Demolition and Disposal LS 1 $11,225 $11,225 $6,000 $6,000 $34,342 $34,342 4 Tank Removal and Disposal LS 1 $13,925 $13,925 $31,000 $31,000 $96,474 $96,474 5 Concrete Demolition and Crushing CY 120 $99 $11,820 $72 $8,640 $175 $21,025 6 Remedial Excavation TON 100 $85 $8,530 $42 $4,200 $114 $11,400 7 Class II Disposal TON 100 $67 $6,710 $52 $5,200 $211 $21,060 8 Excavate and Reuse Materials CY 50 $50 $2,515 $68 $3,400 $114 $5,692 9 Subsurface Utility Piping LS 1 $2,710 $2,710 $4,700 $4,700 $8,555 $8,555 10 Inert Recycling CY 20 $30 $590 $118 $2,360 $466 $9,317 11 Import, Place and Compact Fill CY 350 $55 $19,075 $58 $20,300 $137 $47,947 12 6" Asphalt Concrete Paving SF 5000 $8 $39,350 $12 $60,000 $14 $67,650 13 12" Aggregate Base SF 5000 $4 $20,000 $3 $15,000 $6 $29,050 14 Air Monitoring LS 1 $2,560 $2,560 $2,400 $2,400 $18,299 $18,299 15 Asbestos Containing Materials Abatement SF 2 $625 $1,250 $600 $1,200 $8,683 $17,365 16 Asbestos‐Containing Materials Abatement for Subsurface Piping and Conduits LF 40 $45 $1,788 $18 $720 $324 $12,946 17 Lead Containing Paint/Lead Based Paint Abatement SF 100 $11 $1,050 $14 $1,400 $171 $17,103 18 Rain Barrels EA 2 $880 $1,760 $693 $1,386 $3,141 $6,282 Subtotal (Base Bid)$169,998 $201,606 $453,001 Total with 15% contingency on Base Bid Items Only 195,498$ 231,847$ 520,951$ Comments 16% lower than Engineer's estimate 2% higher than Engineer's estimate 128% higher than Engineer's estimate Add Alternate Bid Items 19 Additional Remedial Excavation and Class II Disposal TON 30 $152 $4,572 $195 $5,850 $588 $17,651 20 Additional Excavate and Reuse Materials TON 16 $50 $805 $275 $4,400 $446 $7,128 21 Additional Import, Place and Compact Fill CY 85 $55 $4,633 $54 $4,590 $118 $10,025 Subtotal (Bid Alternate)$10,009 $14,840 $34,804 Total (Base Bid + Bid Alternate)$180,007 $216,446 $487,805 Total with 15% contingency $207,008 $248,913 $560,976 Comments 14% lower than Engineer's estimate in total cost 5% higher than Engineer's estimate in total cost 138% higher than Engineer's estimate in total cost GEMS Environmental Management Services, Inc. Innovative Construction SolutionsERRG CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 29, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Chapter 2.30 [Contracts and Purchasing Procedures] of the Palo Alto Municipal Code to Establish Contracting and Purchasing Procedures and to Define the Contracting Authority of City Officers and Employees (FIRST READING: August 15, 2016 PASSED: 9-0) This item was first heard on August 15, 2016 and there were no changes made by Council. ATTACHMENTS: Attachment A: Contracting Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 NOT YET APPROVED 160510 sh 016/purchasing/2016update 1 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Chapter 2.30 of the Palo Alto Municipal Code [Contracts and Purchasing Procedures] to Establish Contracting and Purchasing Procedures and to Define the Contracting Authority of City Officers and Employees The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 2.30 of the Palo Alto Municipal Code is hereby amended in its entirety to read, as follows: PART 1 GENERAL 2.30.010 Purposes. This chapter defines the contract procurement policies, procedures and requirements for public works construction, general services, professional services, wholesale utility commodities and goods.services, and contracts, the performance for which the city receives substantial value. This chapter establishes the contracting authority of the manager of purchasing and contract administration ("purchasing managerCity Manager, the Chief Procurement Officer ("Procurement Officer"), designated employees, the city manager, the city attorneyCity Manager, City Attorney, and the councilCity Council. The purpose of this chapter is: to foster and encourage the use of best management practices in contracting,; to ensure quality and efficiency while obtainingin the procurement of goods, services, equipment, materials and supplies at the lowest cost commensurate with the quality needed; to provide for a fair and equitable procurement process utilizing standardized solicitation procedures; and to maintain honesty and integrity withinin the procurement process. 2.30.020 Scope. (a) Contracting Authority. Part three of this chapter establishes the authority of certain officers and employees of the city to award and sign contracts. (1) The city manager, purchasing manager, and their authorized delegates and certain designated employees may award and sign contracts within the limits of their authority for: public works construction, general services, professional services, wholesale utility commodities and other energy and energy-related contracts, and contracts or purchase orders for goods, materials, equipment and supplies. (2) The city attorney and authorized delegates may enter into and sign contracts with the limits of their authority for legal services. 160510 sh 016/purchasing/2016update 2 (3) The city manager may also award or approve, and sign, contracts within the limits of his or her authority to: rent, lease, license, acquire or purchase interests in real property from other parties; rent, lease or license city property; provide municipal services to other public entities; provide for indemnity or risk of loss; and any other contract involving city expenditure of an amount of $85,000.00 or less. (a) Contracts for public works construction, general services and professional services, information technology services, wholesale utility commodities and services and other energy related contracts, and contracts, price quotations or purchase orders for goods, materials, equipment and supplies shall be solicited and awarded pursuant to the procedures contained in this chapter. (b) Solicitation and Award Procedures and Requirements. Contracts for public works construction, general services and professional services, wholesale utility commodities and other energy and energy-related contracts, and contracts or purchase orders for goods, materials, equipment and supplies shall be awarded pursuant to the procedures contained in this chapter. The solicitation and award procedures and requirements contained in this chapter shall not apply to the following: (b) Neither the solicitation nor award policies, procedures and requirements contained in this chapter shall not apply to the following: (1) Subdivision agreements, improvement agreements, deferred parking agreements, development agreements and other land use contracts entered into between the city and property owners or developers pursuant to other parts of this municipal code; (2) Franchises and franchise agreements; (3) Contracts between the city and other public entities and public utilities for citythe city’s provision of services to the other entities and utilities; (4) Transactions involving the acquisition, assignment and disposal of interests in real property; and (5) Agreements to provide funds pursuant to the human services resource allocation process or community development block grant program. 2.30.030 Council contract policies adopted by resolution. The councilCouncil may from time to time adopt by resolution policies related to contract solicitation and award procedures and requirements. The policies may include, but shall not be limited towithout limitation, policies addressing local boycotts, protest procedures, and price preferences for use of recycled or sustainable goods and for local businesses. The policies shall not conflict with, but may be in addition to, any provisions of this chapter. All councilCouncil 160510 sh 016/purchasing/2016update 3 policies shall be considered and implemented in the solicitation and award of contracts made under this chapter. 2.30.040 Centralized purchasing. Purchasing to be centralized. All acquisitions and purchases shall be made by and through the purchasing managerProcurement Officer, except: (a) Purchases of goods and services made from petty cash funds pursuant to control procedures approved by the city managerCity Manager and contained in the administrative policies and procedures manual maintained by the city managerCity Manager; (b) Emergency purchases made in conformance with Federal Emergency Management Agency (“FEMA”) Public Assistance Program’s procurement orders, or other similar rules, regulations, guidelines and control procedures for cost reimbursement purposes approved by the city managerCity Manager and contained in the purchasing manual; (c) Contracts for legal services; (d) Purchases of goods and services and in payment of public works services by city procurement card (“P-card”) or other credit card, made in conformance with control procedures approved by the city managerCity Manager and contained in the purchasing manual; (e) Purchases, where the total expenditure by the city does not exceed $510,000.00, made in conformance with control procedures approved by the city managerCity Manager and contained in the purchasing manual; and (f) Transactions negotiated under master contracts for wholesale utility commodities and services, as defineddescribed in Section 2.30.140 and made in conformance with Section 2.30.340.; (g) Mutual aid agreements; and (h) Delegations made according to Section 2.30.230. 2.30.050 Purchasing manual. The purchasing managerProcurement Officer shall prepare a written purchasing manual that implements the requirements of this chapter. The purchasing manual shall establish and describe in detail the contract solicitation and award procedures and requirements that must be followed in making acquisitions, purchases and licenses on behalf of the city. The purchasing manual shall include, among other things, control procedures established under the 160510 sh 016/purchasing/2016update 4 authority of this chapter. The city managerCity Manager shall approve the purchasing manual and any modifications made to the manual from time to time. 2.30.060 Validity of contracts and purchase orders. The city shall not be and is not bound by any contract, price quotation, purchase order, document, or any other agreementunlessagreement, unless it is made, in a writing which, and is both: (a) Approved by the councilCouncil and signed by the mayor, vice mayor or other duly authorized officer or employee on behalf of the city as provided in this chapter; and (b) Approved as to form by the city attorneyCity Attorney, as provideddescribed in Section 2.30.070. The foregoing requirements shall not apply to authorized purchases with a city P-card or other credit card. 2.30.070 Approval as to form by the city attorneyCity Attorney. The city attorneyCity Attorney shall approve as to form all contracts, price quotations, purchase orders, documents and other agreements. The city attorneyCity Attorney’s approval as to form may be performed on a general basis (standardizedby standard form contract) or on an individuala case-by-case basis. No city office or department other than the city attorneyOffice of the City Attorney is authorized to create, modify or approve for use standardizedstandard form contracts. Each contract, price quotation, purchase order, document or other agreement that is subject to individual review and approval by the City Attorney shall be signed by the city attorneyCity Attorney or designee to signify that it is approved as to form. A standardizedstandard form contract that has been approved by the city attorneyCity Attorney for general use may be used without further approval or signature by the city attorney so long asCity Attorney, provided the form of contract is not modified. The purchasing managerProcurement Officer in consultation with the city attorneyCity Attorney and the city auditorCity Auditor shall be responsible for creating a control system for the creation and use of standard form contracts, price quotations, purchase orders, documents and other agreements to be included in the purchasing manual. // // 160510 sh 016/purchasing/2016update 5 2.30.080 Interpretive authority. The city attorneyCity Attorney shall haveexercise the sole authority to interpret the provisions of this chapter and to issue rulings or, in writing, interpretive opinions concerning the meaning and application of the provisions of this chapter. 2.30.90 No conflicting policies or procedures. No city committee, office, department, board, commission or other division or body may adopt or create an internal procurement policy or procedure that conflicts with or is not consistent inconsistent with any provision of this chapter. PART 2 CONTRACT TYPES 2.30.100 Public works contract. A public works contract isincludes a contract paid for, in whole or in part, out of public funds for the construction, alteration, repair, improvement, reconstruction or demolition of any public building, facility, street, sidewalk, utility, park or open space improvement, or other public improvement. 2.30.110 Contract for goods. A contract for goods isincludes a contract or purchase order for the purchase of supplies, materials or equipment, including, but not limited towithout limitation, office supplies, janitorial supplies, furnishings, equipment, machinery, tools, vehicles, computer hardware and software and other personal property, materials or goods. A contract for goods includes a blanket purchase order contractscontract, where no particulara specified quantity of units to be purchased is not established at the time the contract is executed. A blanket purchase order contract must establish a maximum dollar amount of expenditure for the contract and set forth pricing terms for the items to be purchased. A contract for goods may include labor incidental to the purchase of goods, such asincluding any set-up, installation, and testing services. 2.30.120 General services contract. A general services contract isincludes a contract, providing for work, labor or services not requiring specialized experience, knowledge or training with or without the furnishing of goods, materials, supplies or equipment, for work, labor or services including, but not limited towithout limitation: (a) Maintenance of public buildings, streets, parks and playgrounds and other public improvements; (b) Repair, modification and maintenance of equipment or other goods; 160510 sh 016/purchasing/2016update 6 (c) Licensing, installation and maintenance of or relating to information technology property, goods and services, including, without limitation, computer hardware and software;, and including the provision of data storage services, unless the information technology services that would require specialized certification, expertise, knowledge, or training are needed and provided; (d) Janitorial services, uniform cleaning, tree trimming, street sweeping, power washing and landscape maintenance; and (e) Leasing ofor licensing of goods and other personal property for use by the city.; and (f) General class instruction, including, without limitation, recreation class instruction services. 2.30.130 Professional services contract. A professional services contract isincludes a contract for services which involveinvolves the exercise of professional discretion and independent judgment based on specialized certification, knowledge, expertise or training. These services may include, but are not limited towithout limitation, those provided by accountants, actuaries, auditors, appraisers, architects, attorneys, engineers, financial advisors, information technology experts, instructors, and environmental and land use planners. 2.30.140 Contracts for wholesale utility commodities. and services. A contract for wholesale utility commodities isand services includes a contract with a private or public supplier orof utility commodities and services or other counterparty (in the case of gas or electricity) for the purchase or sale-incidental-to-purchase of water, gas or electricity and all related supplemental or ancillary services, and any other energy or energy-related contract., including, without limitation: transmission; renewable energy credits; offsets; allowances; energy procured via a “feed in tariff,” and regulatory compliance instruments. A contract for wholesale utility commodities and services further includes, but is not limited towithout limitation, a master agreement containing general terms and conditions that provide for the execution of one or more purchase or sale-incidental-to-purchase transactions under the terms of a standard form contract and any exhibit or, addendum thereto. or confirmation. 2.30.150 Contracts for dark fiber optics licensing services. A contract for dark fiber optics licensing services isincludes a contract with any person, including, without limitation, a telecommunications or non-telecommunications carrier, an internet services provider, a distributed antenna system services provider, or a small cell technology services provider for the licensing of city-owned, city-installed and city-maintained dark fiber optics and related facilities, if any, located in the public rightrights-of-way and public 160510 sh 016/purchasing/2016update 7 utility easements. A telecommunications carrier includes any person subject to the Telecommunications Act of 1996, as amended. A non-telecommunications carrier includes any person that is not a telecommunications carrier, or other federal law now or hereinafter in effect. 2.30.160 Emergency contracts. A contract for goods or services necessary to protect the public health, safety, and welfare in the event of an emergency. An emergency means and includes an urgent unforeseen event that threatens life, property, or the general public health, safety and welfare, including, without limitation, an emergency declared by the Federal Emergency Management Agency. The City Manager is authorized to conclude an emergency exists without further declaration by the Council. PART 3 CONTRACTING AUTHORITY 2.30.200 Purchasing managerProcurement officer contract award authority. The purchasing managerProcurement Officer may award and sign the following contracts: (a) Public works contracts. Public works contracts, where the term does not exceed three years, and the contract price, plus and any price contingency established for change orders, does not exceed $85,000.00but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and do not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year. (b) Contracts for goods. Contracts to purchase goods, where the term does not exceed three years, and the contract price, plus and any price contingency established for change orders or additional services, but excluding sales tax or use tax, doesdo not exceed $85,000.00 in the first year, and doesdo not exceed the sum of $85,000.00, plus and any unexpended monies carried forward from a prior fiscalcontract year, in any subsequent contract year. (c) General services contracts. General services contracts, where the term does not exceed three years, and the contract price, plus and any price contingency established for change orders or additional services, but excluding sales tax or use tax, does not exceed $85,000.00 in the first contract year, and does not exceed $85,000.00 plus and any unexpended monies carried forward from a prior contract year, in any subsequent contract year. (d) Professional services contracts. Professional services contracts, where the term does not exceed three years, and the contract price, plus and any price contingency established for change orders or additional services, but excluding sales tax or use tax, doesdo not exceed the sum of $85,000.00 in the first contract year, and doesdo not exceed the sum of $85,000.00, plus and any unexpended monies carried forward from a prior contract year, in any subsequent contract year. 160510 sh 016/purchasing/2016update 8 (e) Software and hardware purchase, licensing and Maintenance Contracts. Notwithstanding subsectionSubsection 2.30.200(c), the purchasing managerProcurement Officer may award and sign contracts other than general services agreements, including, without limitation, vendor-based standard form hardware and software purchase and licensing contracts, for the purchase of hardware and software, the licensing of software, and the maintenance of licensed computer software for any period of time during which the city maintains licenses for the hardware and software, where the term of licensing or maintenance services does not exceed five years and the contract price, excluding sales tax or use tax, does not exceed $85,000.00 per year in the first contract year and does not exceed the sum of $85,000.00, plus and any unexpended monies carried forward from a prior year, in any subsequent contract year.contract year, in any subsequent contract year. The contracts referred to herein may include contracts for data storage services, which shall be subject to the city’s information security policies, terms, conditions and other requirements established by the chief information officer. 2.30.210 City manager contract award authority. The city managerCity Manager may award and sign the following contracts: (a) Public Works Contracts. Public works contracts, where the term does not exceed three years, and the contract price, plus and any price contingency established for change orders, is greater than $85,000.00, but does not exceed excluding sales tax or use tax, do not exceed $250,000.00 in the first contract year, and do not exceed the sum of $250,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year. (b) Contracts for Goods. Contracts to purchase goods, where the term does not exceed three years and the contract price, plus and any contingency established for change orders or additional services, but excluding sales tax or use tax, is greater than $85,000.00 but doesdo not exceed $250,000.00 in the first contact year, and doesdo not exceed the sum of $250,000.00 plusand any unexpended monies carried forward from a prior contract year, in any subsequent contract year. (c) General Services Contracts. Contracts to leasefor services associated with the leasing or licensing of personal property other than hardware or software, where the term is greater than three years butdoes not more thanexceed seven years, and the contract price doesand any price contingency established for change orders, but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and doesdo not exceed the sum of $85,000.00 plus any unexpended monies carried forward from a prior contract year, in any subsequent contract year. (d) Contracts for Studies and Services Related to Private Development. Professional services contracts for: (1) the preparation of environmental assessments or other studies 160510 sh 016/purchasing/2016update 9 deemed necessary by the director of planning and community environment for the processing of applications for private development projects, or (2) inspection and plan review services deemed necessary by the director of planning and community environment to evaluate conformity of private development projects with applicable building codes, regardless of the cost or term thereof, provided the applicant for the private development project agrees, in writing, to bear responsibility for the entire contract cost, and the contract does not require the expenditure of city funds in any amount. (e) Rewards. The city managerCity Manager may offer and pay rewards, where the amount of the reward does not exceed $25,000.00, in accordance with the procedures of Section 2.30.800. (f) Emergency Contracts. An emergency is an urgent unforeseen situation that threatens life, property, or the general public health, safety and welfare. In emergency situations the city managerThe City Manager is authorized to expend city funds for emergency contracts, as defined in Section 2.30.160, without limitation on the contract cost or amount and without following the contract solicitation and award procedures otherwise required by this chapter. The city manager is authorized to conclude, provided that any procurement of goods and services obtained during an emergency exists without further declarationdeclared by the council.Federal Emergency Management Agency shall comply with applicable FEMA Public Assistance Program’s procurement orders, rules, regulations, guidelines and control procedures for cost reimbursement purposes. Expenditures made during an emergency must be reported to the councilCouncil at the next regular meeting if approval for such expenditures would otherwise have been made by the council.Council. The City Manager may issue a verbal report to the Council before a written report is delivered. (g) Contracts to Rent, lease, License, Acquire, Transfer or Purchase Interests in Real Property from Other Parties. Contracts to rent, lease, licensefor the rental, leasing, licensing, or purchase by installment interests in real property from other parties for a term of seven years or less, where the contract price does not exceed $85,000.00 per year., or to encumber or transfer any interest in real property from other parties for any term of years. The city managerCity Manager may enter into and sign contractsa contract to acquire or purchases interestspurchase an interest in real property, where the contract price does not exceed $85,000.00. (h) Contracts to Rrent, lLease, or lLicense cCity Real pProperty to oOther pParties. The authority granted under this sectionSection is distinct from the authority of the director of community services to grant individuals and groups permits for the exclusive temporary use of buildings, and facilities located in, and the areas of, city parks and open spaces, as described in Title Chapter 22.04 of this municipal code. or in the park and open space regulations. The city managerCity Manager may award and sign contracts to rent, lease or license city real property to other parties regardless of the price for a term not exceeding three years. Notwithstanding the preceding sentence, the city managerCity Manager may enter into and sign contracts to 160510 sh 016/purchasing/2016update 10 rentfor the rental, lease or licenselicensing of real property at the Cubberley siteCommunity Center for terms of up to five years. (i) Contracts to Provide Municipal Services to other Public Entities. Contracts or Utilities. A contract to provide municipal services and functions to any other local public agency, public utility or other public entity in any amount for a term not exceeding three years;, provided the contract is in compliance with the city council all Council-adopted policypolicies covering such contracts. The authority granted herein does not include the authority of the City Manager to add permanent employee positions. (j) Contracts Providing for Indemnity or Risk of Loss. The city managerCity Manager, with the concurrence and approval of the city attorneyCity Attorney and the insurance risk manager, may enter into and sign contracts, otherwise within the limits of his or her authority under Section 2.08.140 of this municipal code, that provide for the city or its officers or employees to defend, indemnify, or assume the risk of damage, loss, or liability for, or subrogate to any other contracting party respecting claims, demands, actions, losses or liabilities arising from the city's performance or non-performance under the contract. (k) Wholesale Utility Commodities and Services Contracts. Wholesale utility commodities and services contracts, where the term does not exceed five years and the contract price does not exceed $250,000.00 in any contract year. (l) Software and Hardware Purchase, Licensing and Maintenance Contracts. Notwithstanding Subsection 2.30.210(c), the City Manager may award and sign contracts other than general services agreements, including, without limitation, vendor-based standard form hardware and software purchase and licensing contracts, for the purchase of hardware and software, the licensing of software, and the maintenance of hardware and software, where the term of licensing or maintenance services does not exceed seven years and the contract price, excluding sales tax or use tax, does not exceed $85,000.00 per year in the first contract or fiscal year and does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year. The contracts referred to herein may include contracts for data storage services, which shall be subject to the city’s information security policies, terms, conditions and other requirements established by the chief information officer. (k)(m) Other Contracts. All other types of contracts for which the contract term does not exceed three years and the total expenditure by the city does not exceed $85,000.00 in the first contract or fiscal year, and does not exceed the sum of $85,000.00, plus and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year. (l) Wholesale utility commodity contracts. Wholesale utility commodity contracts where the term does not exceed three years and the contract price does not exceed $250,000.00 in any year, including but not limited to gas transportation contracts and power transmission 160510 sh 016/purchasing/2016update 11 contracts with Pacific Gas and Electric Company and any public agency contract as defined in Section 2.30.340(d). 2.30.220 City attorney contract award authority. The city attorneyCity Attorney may award and sign contracts for legal services, including, without limitation, services provided by outside counsel, investigators, consultants and other experts needed for litigation or other administrative and legal proceedings, to be provided to the city for any time period, where the contract price, plus and any contingency established for change orders or additional services, but excluding sales tax or use tax, doesdo not exceed $65the sum of $85,000.00 in the first contract or fiscal year, and doesdo not exceed $65the sum of $85,000.00, plus and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year. The city attorneyIn addition to the authority described herein, the City Attorney may sign contracts, where the contract price exceeds the amounts set forth above, provided the councilCouncil has first approved the use of such services. 2.30.225 Wholesale utility commodity transactions. The city manager,City Manager, the director of utilities and their designated employees may enter into and execute transactions for wholesale utilities commodities and services in accordance with the authority, limits and procedures set forth in the Energy Risk Management Policies Guidelines and Procedures Manual, as amended from time to time. 2.30.230 Designated employee purchases of $510,000.00 or less. Employees authorized, in writing, by their department headheads may award and sign contracts for the purchase of goods and contracts for the procurement of general services, where the contract price does not exceed $510,000.00 and the contract term isdoes not exceed one year or less. All such purchases and procurements shall be made in accordance with the contractcontracting procedures and requirements contained in the purchasing manual. All department head The written authorizations of department heads shall be kept on file inby the office of the purchasing managerProcurement Officer. 2.30.240 Designated employeesemployees’ use of petty cash and city credit card. Employees authorized in writing by their department headheads, including by completed P-card authorization request form, may make purchases by using petty cash or make payments by using a city P-card or other credit card. All such purchases shall be made in accordance with the contractcontracting procedures and requirements contained in the purchasing manual. All department headThe written authorizations of department heads shall be kept on file in the office of by the purchasing managerProcurement Officer or other designated employee. // 160510 sh 016/purchasing/2016update 12 2.30.250 Council approval/ or award of contracts. The councilCouncil shall approve and/or award and the mayor or vice-mayor shall sign all contracts for which no contracting or signature authority has been established under this chapter, except tounless the extent the councilCouncil has previously authorized a city officer or employee to negotiate and execute a contract on the city’s behalf without the further approval of the councilCouncil. 2.30.260 Contracts with terms exceeding one year - appropriation. ContractsAny contract with a term exceeding one year shall not be approved by any personcity employee with contracting authority under this chapter or the councilCouncil, unless the total amount due and payable by the city over the life of the contract is appropriated at the time the city assumes the obligation to pay, or the total amount due and payable during the first full or partial fiscal year of a multi-fiscal year contract is appropriated and the contract is subject to annual appropriation by the councilCouncil of amounts to become due and payable in subsequent fiscal years. The requirements of this sectionSection do not apply to contracts not subject to the debt limit requirements of Article XVI, Section 18 of the California Constitution, as determined by the city attorneyCity Attorney or designee. 2.30.270 Delegations of authority to contract. This sectionSection establishes the exclusive source of authority to delegate any authority to contract granted by this chapter. The authority to delegate contracting authority shall not be implied from any other provision inof this municipal code. (a) Purchasing ManagerProcurement Officer Delegations. The purchasing managerProcurement Officer may delegate the authority granted under Section 2.30.200, as follows: Personsa city employee holding the position of contract manager or senior buyer may be authorized to award and sign contractsany contract in an amount of $50,000.00 or less per year with a term not to exceed three years; and a city employee holding the position of buyer may be authorized to award and sign any contract in an amount of $25,000.00 or less per year with a term not to exceed three years; persons holding the position of buyer may be authorized to award and sign contracts in an amount of $10,000.00 or less per year with a term not to exceed three years. (b) City Manager Delegations. The city managerCity Manager may delegate anythe authority to contract granted to the city managerCity Manager by this chapter or Section 2.08.140(a)(3) and (5) of this municipal code to the assistant city manageran Assistant City Manager and to the director of administrative servicesDirector of Administrative Services, and, as to wholesale utility commodities and services contracts and transactions issued thereto and other utility related transaction, , the City Manager may delegate to the directorDirector of utilitiesUtilities. If the assistant city manageran Assistant City Manager, the director of administrative servicesDirector of Administrative Services, or the directorDirector of 160510 sh 016/purchasing/2016update 13 utilitiesUtilities is unable to exercise the authority delegated to him or her due to legal or physical incapacity, constraint, or unavailability, the city managerCity Manager may, with the prior concurrence of the city attorneyCity Attorney, delegate the authority to another person.any other city employee. (c) City Attorney Delegations. The city attorney City Attorney may delegate any authority to contract granted to the city attorneyCity Attorney by this chapter to a personcity employee holding the position of principal attorney or, if the principal attorney is unavailable, senior assistant city attorney. (d) Delegations to be Written. All delegations of authority shall be in writing, be dated, and describe the limits of the authority delegated, including but not limited to, without limitation, the type, dollar amount, quantity of goods or , the scope of services or authority, and durationthe term of the contracts that may be executed under the delegation. All delegations of authority shall be kept on file inby the office of the purchasing managerProcurement Officer. 2.30.280 Authority to modify and terminate contracts not approved or awarded by the councilCouncil. (a) Each personemployee with contracting authority underconferred by this chapter may authorize and sign amendments or change orders to contracts they havehe or she awarded under the authority granted in this chapter subject to the following: (a1) All modifications to contracts, including, but not limited towithout limitation, changes to the scope of work, quantity of goods, price or term shall be made in writing, and accomplished in accordance with the terms of the original contract; and (b2) The amendment or change ordersorder to a contract shall not cause the contract, as modified, to exceed the monetary or term limits of that person’scity employee’s contracting authority, as defineddescribed in this chapter. Each person, except that the city employee may extend the term of a contract, with no increase in the compensation payable, for a period not to exceed six consecutive months beyond the term limits of his or her contracting authority granted under; and (3) For contracts awarded under an exemption from competitive solicitation pursuant to Section 2.30.360 or Council action, the amendment or change order to a contract shall not cause the contract, as modified, to exceed the scope of the exemption from competitive solicitation. (b) Each city employee with contacting authority conferred by this chapter to award and sign a contract also hasshall have the authority to terminate the contract in accordance with the contractcontract’s terms and conditions. // 160510 sh 016/purchasing/2016update 14 2.30.290 Authority to modify contracts awarded by the councilCouncil. (a) The councilCouncil, at the time it awards a contract or authorizes a city officialofficer or employee to award a contract, may also authorize the city officialofficer or employee to execute an amendment or change order to a contract in an amount exceeding the monetary and/or term limits of the official’sofficer or employee’s contractcontracting authority set forth, as described in this chapter. Amendments or change orders made under the authority granted by the councilCouncil shall be in writing, accomplished in accordance with the terms of the original contract or the original contract, as amended, and shall not cause the contract, as modified, to exceed the limits of the contracting authority granted by the councilCouncil. (b) The city managerCity Manager is authorized to enter into and execute for and on behalf of the city, without the prior approval of the councilCouncil, any amendment or change order to a contract, previously approved by the councilCouncil, that does not increase the compensation forpayable under the contract or to accomplish the following: (1) To extend the term of the contract for a period not to exceed six consecutive months from the last councilCouncil-approved contract expiration date; or (2) To make minor revisions to the scope of services or delivery schedule; or (3) To make clerical corrections. In addition, the city manager(c) The City Manager may approve and sign assignments of contracts, including, without limitation, leases and licenses, previously approved by the councilCouncil when he or she has determined that the proposed assignee has the ability, capacity, experience and skill and is otherwise qualified to perform the contract. 2.30.295 Limitations on contract authority; authority otherwise conferred. (a) This chapter does not authorize a city officer or employee to award or sign any contract which suchthat the officer or employee is otherwise prohibited from awarding or signing under the provisions of the city charter, this municipal code, or any other applicable law, or by any ordinance, resolution, minute order or other official action of the councilCouncil. (b) Nothing isin this chapter shall limit any authority conferred by the city council through a resolution delegating authorityCouncil to a city officer or employee to negotiate and execute contractsany contract on the city council'sCouncil's behalf without the further approval of the city councilCouncil. // // 160510 sh 016/purchasing/2016update 15 PART 4 COMPETITIVE SOLICITATION REQUIREMENTS 2.30.300 Public works contracts. Public Works Contractsworks contracts that are not exempt from thesethe competitive solicitation requirements under Section 2.30.360 or by resolution of the city council action shall be solicited, as follows: (a) Public works contracts, providing for an estimated expenditure of $6585,000.00 or less, and not otherwise required to be formally bid by the charter, shall be solicited by informal bid in accordance with the provisions of Section 2.30.400. (b) Public works contracts, providing for an estimated expenditure exceeding $6585,000.00, shall be solicited by formal bid in accordance with the provisions of Section 2.30.420. (c) Article VII, Section 6 of the City Charter requires formal bidding only for public works contracts funded by bonded indebtedness of the city or by assessment against particular property in the city. However, the intent of thisPalo Alto. Section 2.30.300 is to require requires the formal bidding forof all public works contracts exceeding $6585,000.00, unless exempt as an exemption is provided inby Section 2.30.360 or is otherwise authorized by Council Section 2.30.300(d).by resolution of the council as provided in this Section 2.30.300. The council may determine by resolution that a particular public works project may be solicited and contracted for using alternate project delivery methods, including but not limited to design build, construction manager at risk, or competitive negotiation. Any such resolution shall set forth the reasons supporting the use of the alternate project delivery method for the project and describe the solicitation method to be used and the criteria for determining the party to whom the contract should be awarded. (d) Design-build contracts, to the extent debt financing limitations do not apply, that provide for an expenditure of more than $85,000.00 shall be solicited by requests for proposals in accordance with Section 2.30.490. Despite any law to the contrary, the design-build method of delivery may be used for any public works contract, including, without limitation, any design- build-operate contracts, where the City Manager determines, in writing, the delivery method will best fulfill the requirements of the public works project. (e) The Council may determine that a particular public works project may be solicited and contracted for by using alternate project delivery methods, including, without limitation, construction manager at risk or competitive negotiation. Any Council action authorizing an alternate project delivery method shall set forth the reasons and factual basis supporting the use of the alternate project delivery method for the project and describe the solicitation method to be used and the criteria for determining the successful bidder, to whom the public works contract should be awarded. // 160510 sh 016/purchasing/2016update 16 2.30.310 Contracts for goods. Contracts for goods, not exempt from the competitive solicitation requirements under Sectionunder Section 2.30.360 or by Council action, shall be solicited, as follows: (a) Contracts for goods, providing for an estimated expenditure by the city of $2550,000 or less, shall be solicited by informal bid in accordance with the provisions of Section 2.30.400; and (b) Contracts for goods, providing for an estimated expenditure by the city exceeding $2550,000, shall be solicited by formal bid in accordance with the provision of Section 2.30.420. 2.30.320 General services contracts. General services contracts, not exempt from the competitive solicitation requirements under Section 2.30.360 or by Council action, shall be solicited, as follows: (a) General services contracts, providing for an estimated expenditure by the city of $25not exceeding $50,000.00 or less, shall be solicited by informal bid or informal proposal in accordance with the provisions of Section 2.30.400. (b) General services contracts, providing for an estimated expenditure by the city exceeding $2550,000.00 shall be solicited by formal bid in accordance with the provisions of Section 2.30.420 or by formal request for proposal in accordance with the provisions of Section 2.30.410. (c) It is expected that most general services contracts will be solicited using the informal or formal bid procedures. However, where the city has defined a situation for which it seeks a solution,The Procurement Officer shall determine, after consideration of whether the needs of the city or the circumstances require that a contract awardshould be awarded based on significant factors in addition to price, the purchasing manager may determine that a whether the services subject to a general services contract shall be solicited by bid or request for formal or informal proposals shall be used to solicit the contract. 2.30.330 Professional services contracts. Professional services contracts, not exempt from the competitive solicitation requirements under sectionSection 2.30.360 or by Council action, shall be solicited, as follows: (a) Professional services contracts, providing for an estimated expenditure by the city greater than $25not exceeding $85,000.00 and up to and including $65,000.00, shall be solicited by informal request for proposal in accordance with sectionSection 2.30.400. 160510 sh 016/purchasing/2016update 17 (b) Professional services contracts, providing for an estimated expenditure by the city exceeding $6585,000, shall be solicited by formal request for proposal in accordance with the provisions of sectionSection 2.30.410. (c) In lieu of the solicitation requirements set forth in subsectionsSubsections (a) and (b), professional services contracts in any amount may be awarded from a list of qualified professionals to be created and maintained by the Purchasing ManagerProcurement Officer, so long as the list is created and the award of contract to an entity on the list is in compliance with procedures contained in the purchasing manual. 2.30.340 Contracts for wholesale utility commodities and services. (a) Solicitation of Contracts (1) Contracts for the purchase or sale-incidental-to-purchase of wholesale utility commodities and services, providing for an estimated expenditure of $65not exceeding $85,000.00 or less, shall be solicited by informal bid or informal request for proposal in accordance with the provisions of Section 2.30.400. Contracts for athe purchase or sale- incidental-to-purchase of wholesale utility commodities and services, providing for an estimated expenditure of $65exceeding $85,000.00 or more, shall be solicited by formal bid, formal request for proposal or combination thereof, in accordance with the provisions of SectionsSection 2.30.410, 2.30.420 or 2.30.430 or through solicitation of counterparties enabled to transact under a Council-approved master agreement in accordance with Section 2.30.340(a)(3). (2) Master contracts containing general terms and conditions for wholesale utility commodities that provide for the execution of one or more individual water, gas or electricity purchase and sale-incidental-to-purchase transactions under the terms of the master contract, shall be solicited by formal bid, formal request for proposals, or combination thereof, in accordance with the provisions of Sections 2.30.420, 2.30.430 or 2.30.440. It is expected that the city will enter into several(2) Council shall pre-approve standard form master contracts with different counterparties for the purchaseagreement templates for wholesale utility commodities and services and sale-incidental-to-purchase of gas and electricity utility commodities at wholesale. such agreement shall be made publicly available. (3) Whenever the city desires to execute an individual purchase or sale incidental –to- purchase transactionaward a contract under a Council-approved master agreement for gas or electricitywholesale utility commodities at wholesaleand services, any counterparty who executeswhich has executed a Council-approved master contractagreement with the city, and who is otherwise eligible to bid for or propose in regard to the particular transaction in accordance with the city's Energy Risk Management PoliciesPolicy, Guidelines, and Procedures Manual shall, may be solicited, in writing (by mail, facsimile or electronic mail), and shall be eligible to tender a bid or proposal on the transaction.. The counterparty offering the price and 160510 sh 016/purchasing/2016update 18 other required product and performance terms and conditions for wholesale utility commodities and services deemed to be the most advantageous to the city shall be eligible for an award of a contract forrespecting the transaction. (b) BasicDelegation of Master Agreement Terms and Conditions. For contractsmaster agreements and other contracts for wholesale utility commodities and services not otherwise within the city manager’sCity Manager’s authority to award, the councilCouncil may by resolution authorize the city managerCity Manager to award and sign a contractcontracts with a qualified, eligible counter party for the purchase and incidental sale of wholesale utility commodities.counterparties. This authority shall extend to contracts awarded under ay city “feed-in tariff” energy program entitled “Clean Local Energy Accessible Now Program” or any similarly entitled program. The resolutionCouncil authorization shall specify the limits of the authority delegated, including the maximum dollar amountexpenditure limit of the authority and the durationterms of the contracts and/or transactions that may be executed under the delegation of authority. (1) Electricity master agreements. Any resolutionCouncil action delegating authority to the city managerCity Manager to contract for electricity commodities and services shall specify generally at least the following terms and conditions: quantity and the description of energy and energy services to be procured, including, but not limited to,without limitation: on-peak and off-peak energy and ancillary services; term, specifying a not-to-exceed period of time; period of delivery denoted in years or months or years and months; and point of delivery or the locus on the interstate transmission system at which transfer of title is made. (2) Gas master agreements. Any resolutionCouncil action delegating the authority to contract for gas commodities and services shall specify generally at least the following terms and conditions: quantity and the description of gas services to be procured, including, but not limited to,without limitation: scheduled gas and gas transportation services; term, specifying a not-to-exceed period of time);; period of delivery denoted in years or months or years and months; and point of delivery of the locus on the interstate transmission system at which transfer of title is made. (c) Required Contract Terms for GasWholesale Utilities Commodities and Electric procurementServices Contracts. The city shall use standardizedstandard form contracts for the procurement of gas and electricity, as practicable, including, but not limited towithout limitation, form contracts created and copyrighted by the Edison Electric Institute, the Western States Power Pool Inc., andInc., the North American Energy Standards Board, Inc., and contracts used by thea city’s “feed-in tariff” energy program. Unless waived by resolution of the councilCouncil action, a contract for procurement of gas or electricity and wholesale utility commodities and services, and any amendment to thethat contract, shall not be awarded by the city and executed by the duly authorized representatives of the city, unless the following terms and conditions are required: (1) governing law shall be the laws of the state of California; (2) choice of venue shall be the county of Santa Clara; and (3) a counterparty shall obtain and maintain during the term of the contract the minimum credit rating established as of the date 160510 sh 016/purchasing/2016update 19 of award of contract of not less than a BBB- credit rating established by Standard & Poors and a Baa3 credit rating established by Moody's Investors Services, but the minimum credit rating requirement shall apply to a counterparty which is awarded a contract under a city "feed-in tariff" energy program only to the extent the counterparty sells a quantity of energy in excess of the threshold established by that program. (d) Public Agency Contracts. The city may procure and make sales-incidental-to-purchase of wholesale utility commodities and services from energy counter partiescounterparties through public agencies, including but not limited to, without limitation, the Northern California Power Agency and the federal Western Area Power Administration. (1) The city may engage the public agency to act as the agent of the Citycity to procure wholesale utility commodities and services, provided that the public agency conducts a competitive selection process and awards one or more contracts in substantial compliance with the contract procurement procedures and requirements of this chapter. , unless such substantial compliance is waived by the Council action accompanied by findings in support of the waiver. (2) The city attorneyCity Attorney shall determine whether the contract procurement process of the public agency substantially complies with the provisions of this chapter. For the purposes of this Section 2.30.340, the public agencyagency’s competitive selection process, if any, shall be deemed to substantially comply if the public agency (1) : a. conducts a formal or an informal bidding or proposal process to solicit bids or proposals for the provision of wholesale utility commodities, (2) and services; b. executes a standardizedstandard form contract, including, without limitation, a form contract created and copyrighted by the Edison Electric Institute and, the Western States Power Pool, Inc. Inc., or equivalent, as determined by the city attorney, and (3) North American Energy Standards Board, Inc.; and c. unless waived by resolution of the city councilCouncil, the standardizedstandard form contract requires or specifies (a) : 1. the governing law shall be the lawslaw of the state of California, (b) ; 2. the choice of venue shall be identified according to either the county in which such public agency does business, or the preference for federal or satestate court jurisdiction over the public agency and, the energy counter -party, and the contract,; and (c) 3. the energy counterpartycounterparty shall obtain and maintain during the term of the contract the minimum credit rating established as of the date of award of contract of not less than a BBB- credit rating established by Standard & Poors and a Baa3 credit rating established by Moody's Investors Services. (e) Energy Risk Management PoliciesPolicy, Guidelines and Procedures Manual. All procurement of gas and electricity by contract for wholesale utility commodities and services, 160510 sh 016/purchasing/2016update 20 shall conform to the requirements of the Energy Risk Management PoliciesPolicy, Guidelines and Procedures Manual. 2.30.350 Contract splitting prohibited. It is unlawful to split‘split’ or separate into smaller portions, work orders, projects, purchases, contracts, or public works projects for the purpose of evading the competitive solicitation requirements or contract authority limitations of this chapter, including, without limitation, the splitting‘splitting’ or division of work or services between or among offices, departments or divisions or other organizational units of the city. 2.30.360 Exemptions from competitive solicitation requirements. The following are exemptions from the informal and formal competitive solicitation requirements of this chapter. It is expected that the, except as otherwise provided. These exemptions will be narrowly interpreted and applied. The department requesting an exemption shall provide all relevant information supporting the application of the exemption to the purchasing manager.Procurement Officer. Based onupon this information, the purchasing managerProcurement Officer shall make a recommendation to the city managerCity Manager and the city managerCity Manager shall determine whether an exemption from the competitive solicitation requirements applies. Nothing herein is intended to preclude the use of competitive solicitations where possible, as practicable. (a) Emergency contracts as defined in section 2.30.210(f). (a) Emergency Contracts, provided that any procurement of goods and services obtained during an emergency declared by the Federal Emergency Management Agency shall comply with applicable FEMA Public Assistance Program’s orders, rules, regulations, guidelines and control procedures for cost reimbursement purposes. (b) Situations whereWhenever solicitations of bids or proposals would for any reason be impracticalimpracticable, unavailing or impossible, provided that in the case of a public works project, the project is not otherwise required by the charter to be formally bid. These situations are those where solicitations of bids or proposals would not be useful or produce any operational or financial advantage for the city. Situations where solicitations of bids or proposals would be impracticalimpracticable, unavailing or impossible, include, but are not limited towithout limitation, the following: (1) SpecificationsContract specifications cannot be drawn in a way that would enable more than one vendor, consultant or contractor to meet them; (2) Due to circumstances beyond the control of the city, the time necessary to use the competitive solicitation process, procedures and requirements would result in a substantial economic loss to the city, or the substantial interference with a required city operation; andor 160510 sh 016/purchasing/2016update 21 (3) Special conditions attached to a grant, donation or gift requires the use of particular goods and/or services. All requests for exemptions under this subsection shall be supported by written documentation (facsimile or electronic mail may be used), approved by the department head and forwarded to purchasingthe Procurement Officer. (c) Where competitive bids or requests for proposals have been solicited and no bid or proposal has been received, or where no bid or proposal meeting the requirements of the invitation to bid or request for proposal has been received, provided that, in the case of a public works project, the project is not otherwise required by the charter to be formally bid. (d) Contracts for goods, wholesale commodities and related services, general services or professional services available from only one source, where the Procurement Officer has determined, in writing, there is no adequate substitute or equivalent provider. Examples of acceptable sole source acquisitions or purchases aremay include, without limitation: equipment or services for equipment, for which there is no comparable competitive product, or service except that provided by the equipment manufacturer, distributor or dealer; proprietary products sold directly fromby the manufacturer,; a component or replacement part, for which there is no commercially available substitute and which can be obtained only from the manufacturer, items; goods where there is only one authorized distributor in the area,; and itemsgoods where compatibility with itemsgoods in use by the city is an overriding consideration. All requests for sole source acquisitions or purchases shall be supported by written documentation (facsimile or electronic mail may be used), approved by the office or department head, and forwarded to purchasingthe Procurement Officer. (e) Contracts for goods where, pursuant to Section 2.30.900, the city managerCity Manager has determined that standardization of the supplies, materials or equipment is permissible. (f) Placement of insurance coverage and surety bonds. (g) Legal services contracts, including , without limitation, the services of outside counsel, consultants and other experts needed for litigationor litigation, administrative or other legal proceedings. (h) Professional services contracts for private development -related studies and services whenwhenever the services are funded wholly by private developers. (i) Professional services contracts, where the estimated total expenditure by the city, regardless of term, does not exceed $2550,000.00. (j) Cooperative purchases where the city participates, with one or more other governmental or public agencies inor through a cooperative agreementpurchasing agency, 160510 sh 016/purchasing/2016update 22 provided the solicitation process used is the services are solicited using methods substantially similar to those required by this chapter, as determined by the Procurement Officer; or. (k) The use of another governmental or public agency’s contract or substantially the same contract terms provided: (i) the agency useduses a solicitation method substantially similar to the method required by this chapter; (ii) the contract allows other agencies to utilize or the vendor authorizes the city to utilize; (iii) the contract is consistent with the requirements specified in this municipal code; and (iv) there is aniii) the Procurement Officer determines that the city will realize overall value to the city’s utilizing the other agency’s contract or contract versusterms compared to the city performing it’sits own solicitation. (l) Contracts with, or solicited on the city’s behalf by, Northern California Power Agency, Transmission Agency of Northern California, and Western Area Power Administration to procure wholesale utility commodities and related services that meet the requirements of Section 2.30.340(d) or 2.30.340(k). (m) Contracts with Pacific Gas and Electric Company and the California Independent System Operator Corporation for energy transmission services to the extent necessary and expedient to provide for the general health, safety and welfare of its citizensthe city’s utility customers. (n) Contracts with any public agency or governmental body to construct a public work, where the Procurement Officer determines the public agency or governmental body has used methods similar to those required by this chapter to contract for the public work. (o) Contracts with any public utility holding a certificate of public convenience and necessity or any entity holding a cable communications systemservice or video service franchise pursuant to chapter 2.10 of this municipal code to construct a public workworks, where such workworks involves property of such public utility or cable communications systemservice or video service franchisee and is otherwise of direct concern to both the city and such public utility or cable communications systemservice or video service franchisee, provided that the project is not otherwise required by the charter to be formally bid. (p) Contracts with private developers to construct public improvements in connection with their development projectprojects, even if the city contributes funds to the improvement project, provided that the project isprojects are not otherwise required by the charter to be formally bid. (q) Projects, where the public work is performed by the city with its own employees. (r) Contracts, where the estimated total expenditure by the Citycity does not exceed $510,000.00. 160510 sh 016/purchasing/2016update 23 (s) Contracts with entities to procure at wholesale prices utility commodities and related services under a city “feed-in tariff” energy program that meets the requirements of Section 2.30.340(c). PART 5 COMPETITIVE SOLICITATION PROCEDURES 2.30.400 Informal bids or proposals. (a) Informal bids or proposals may be solicited by any reasonable means, including, but not limited towithout limitation, mail, telephone, faxfacsimile transmission, e-mail or posting to the city’s web site. Quotations shall be solicited from a minimum of three bidders or proposers; however, if quotations from three bidders or proposers cannot be obtained by the exercise of due diligence, quotations shall be solicited from as many underless than three as can be obtained.bidders or proposers, as practicable. The purchasing managerProcurement Officer shall maintain a record of all informal bids and informal proposals received by the city for a period of time in compliance with stateCalifornia law and the city's records retention schedule. (b) Informal bids shall be awarded to the lowest responsive and responsible bidderbidders, as defineddescribed in Section 2.30.440. (c) Informal proposals shall be awarded on the basis of proposal deemed most advantageous to the city. Thethe proposal deemed most advantageous to the city shall be determined based on the factors set forth in Section 2.30.410(e). (d) If a contract, price quotation, or purchase order is made or awarded to other than the consultant or contractor submitting the lowest price in its quotation, bid or proposal, written reasons for the award decisionProcurement Officer shall be prepared and shall be kept as part ofprepare the record of the transaction, in writing, containing the reasons or grounds for the decision to award the contract. 2.30.410 Formal request for proposals. (a) Advertising. Contracts, that maymust be solicited by formal request for proposals shall be solicited by posting at the civic center ornotice requesting proposals by advertising at least once in a daily newspaper of general circulation inthe notices requesting proposals on the city, not lessCity’s website for no fewer than five days prior to the date set for receiving proposals. In addition to posting or advertising, contracts may be solicited by posting the city web site. Wheresubmission of proposals. As practicable, proposals shall be solicited from a minimum of three proposers. (b) Proposal submittal. The request for proposals shall specify the date, time and place for submitting proposals and describe the scope and time frame for the delivery of what isthe proposed solution requested, the information to be submitted by the proposer, and the criteria for evaluating the proposal. 160510 sh 016/purchasing/2016update 24 (c) Proposal opening. Proposals received after the specified date and time shall not be accepted and shall be returned unopened unless opening is necessary for identification purposes. (d) Award. The contract shall be made or awarded on the basis of the proposal deemed most advantageous to the city. (e) The following factors shall be considered in determining the proposal deemed most advantageous to the city: (1) Quality of the proposal; (2) Quality, performance and effectiveness of the solution, goods and/or services to be provided by the consultant or the contractor; (3) Contractor’sConsultant or contractor’s experience, including the experience of staff to be assigned to the project, with engagements of similar scope and complexity; (4) Cost to the city; (5) Contractor’s Consultant or contractor’s financial condition and stability; (6) Contractor’sConsultant or contractor’s ability to perform the contract within the time specified; (7) Contractor’sConsultant or contractor’s prior record of performance with the city or othersother local, county or state agency; (8) Contractor’sConsultant or contractor’s ability to provide in the future any maintenance, repairs, parts and/or services; (9) Contractor’sConsultant or contractor’s compliance with applicable laws, regulations, policies (including city councilCouncil policies), guidelines and orders governing prior or existing contracts performed by the consultant or contractor; and (10) Any other factor the city deems relevant as specified in the request for proposals. 2.30.420 Formal bids – notice, submittal, opening. (a) Advertisement.Advertising. Contracts required to that must be solicited by formal bid shall be solicited by posting notices inviting bids at the civic center or by advertising the notices inviting bids at least once in a daily newspaper of general circulation in the city, not lesson the City’s website for no fewer than five days prior to the date set for receiving bids. In addition to 160510 sh 016/purchasing/2016update 25 posting or advertising, contracts may be solicited by posting on the city web site. WhereAs practicable, bids shall be solicited from a minimum of three bidders. (b) Notice. The notices inviting bids shall generally describe the things goods and/or services to be purchased or acquired or the public workworks to be constructed, identify the place where the bid proposal form, specifications and other contract documents may be obtained, and specify the date and, time and place when and place where bids will be opened. (c) Bid submittal. All bids shall be sealed. All bids shall be submitted at the place, and at or before the date and time, specified in the notice inviting bids. Bids received after the specified date and time shall not be accepted and shall be returned to the bidder unopened unless the opening is necessary for identification purposes. (d) Bid opening. Bids timely received shall be opened in public, at the date, time and place specified in the notice inviting bids, and the aggregate bid of each bidder declaredshall be announced. 2.30.430 Combined proposals and bids. (a) Nothing in Part five5 of this chapter shall prohibit the city from conducting a competitive solicitation process which combines the elements of the request for proposals and invitation for bids processes in a single process in order to award a contract for wholesale utility commodities purchases and salesservices or design-build contracts. 2.30.440 Determination of lowest responsive/responsible bidder. The awarding authority shall award contracts required to be formally bid to the lowest responsive and responsible bidder. As used in this chapter “awarding authority” means the city officer or employee with the authority to award and sign the particular contract, as provided in part three of this chapter, or the councilCouncil. (a) Low bid. The low bid shall be the bid offering the lowest total cost to the city. (1) The determination of lowest total cost shall be made after applying relevant policies adopted by resolution of the councilCouncil that may provide for a price preference. (2) Where ‘add alternatesalternate’ or ‘deduct alternatealternate’ items are included in the specifications, the determination of lowest total cost shall be made in accordance with the procedure for considering the ‘add alternatealternate’ and ‘deduct alternatealternate’ items as set forth in the bid specifications. (3) The determination of lowest total cost may include the effect of factors such as trade discounts, delivery costs and life cycle costs, when these are included in the specifications. 160510 sh 016/purchasing/2016update 26 (b) Responsive bidder. A responsive bidder is a bidder determined by the awarding authority to have submitted a bid that conforms in all material respects to the requirements of the bid documents. (c) Responsible bidder. A responsible bidder is a bidder determined by the awarding authority: (1) To have the ability, capacity, experience, and skill to perform the work, or provide the goods and/or services in accordance with the bid specifications; (2) To have the ability to perform the contract within the time specified; (3) To have the equipment, facilities and resources of such capacity and location to enable the bidder to perform the contract; (4) To have the ability to provide, as required, future maintenance, repair, parts and service for the use of goods purchased; (5) To have a record of satisfactory or better performance under prior contracts with the city or others; and (6) To have complied with applicable laws, regulations, policies (including city councilCouncil policies), guidelines and orders governing prior or existing contracts performed by the bidder. 2.30.450 Tie bids. If an identical price is received from two or more responsive and responsible bidders, the awarding authority may determine the successful bidder by the casting of lots within public and in the presence of the tie bidders in public on and, at a date, time and place set by the awarding authority. The awarding authority shall notifyprovide notice to the tie bidders of the date, time and place for casting lots by e-mail, phone or facsimile transmission. 2.30.460 Correction or withdrawal of bids or proposals. (a) Before date and time for receipt of bids or proposals. Bids or proposals that contain mistakes discovered by a bidder or proposer before the date and time for receipt of bids or proposals may be modified or withdrawn by written notice to the personemployee designated for the receipt of bids or proposals received prior to the deadline for receipt of bids or proposals. Any modification shall be submittedfiled under seal with the employee designated for receipt of bids and proposals. (b) After date and time for receipt of bids or proposals. A bidder or proposer may not change its bid or proposal after the date and time set for the receipt of bids or proposals, 160510 sh 016/purchasing/2016update 27 except that the bidder or proposer may seek the city’s consent to the substitution of a subcontractor where the bidder can demonstrate in accordance with applicable provisions of state lawCalifornia law, including Section 4107.5 of the California Public Contract Code, that the name of the a substituted subcontractor was listed as a result of an inadvertent clerical error. (c) Withdrawal of bids or proposals. A bidder or proposer alleging a mistake in a bid or proposal may be permitted to withdraw its bid or proposal only in conformance with applicable stateCalifornia law, including Section 5100, et seq., of the California Public Contract Code. 2.30.470 Cancellation of solicitations – Rejections of bids/proposals. (a) Cancellation of solicitations. The purchasing managerProcurement Officer may cancel the solicitations for proposals or bids process before the date and time set for the receipt of proposals or bids upon a written determination at the time the notice of cancelation is provided that such action is in the city’s best interest for reasons, including, but not limited towithout limitation, any of the following: (1) The city no longer requiresdoes not then require the construction of the public works project, or the provision of goods and/or services; (2) The city no longer can reasonably expect towill not then appropriate fund for the public works project, goods and/or services; or (3) Proposed amendments to the solicitation document would be of such magnitude thatmake a new solicitation is desirable and necessary. (b) Rejection of bids or proposals. The awarding authority may reject any or all bids or proposals. If all bids or proposals are rejected, the awarding authority hasmay exercise the discretion to resolicit for bids or proposals. In the case of a bid, if the awarding bodyauthority is the city councilCouncil and all bids are towould be rejected due to excessive cost,prices or costs that exceed the purchasing manager shall havecity’s costs estimate, the Procurement Officer may exercise the discretion to reject all bids and to resolicitre-solicit bids. 2.30.480 Waiver of minor irregularities, defects and informalities. The awarding authority may exercise its discretion to waive, minor irregularities, defects or informalities in the bids or proposals, so long asprovided the waiver would not affect the amount of the bid or proposal or proposal or give a competitive advantage upon the bidder or proposer an advantage over others. 2.30.490 Design-build contract procurement procedures This Section establishes the exclusive procedures for the award of wholly or partially city- funded design-build contracts, to the extent debt financing limitations do not apply, and 160510 sh 016/purchasing/2016update 28 supersedes in their entirety all statutory provisions pertaining to local agency design-build construction, as set forth in chapter 4 of part 3 of division 2 of the California Public Contract Code, Section 22160 et seq., as amended from time to time. (a) Bridging documents shall be prepared by a qualified, licensed design professional, identifying the scope and estimated price or costs of the public works project and including additional requirements or information necessary to adequately describe the city’s needs for the project. These may include, without limitation, the size, type, and desired design character of the project, the performance specifications covering the quality of supplies, materials, equipment, and workmanship, or preliminary plans or building layout plans. The design professional, which prepares the bridging documents, may not subsequently submit or participate in the proposal submitted for an award of design-build contract, or have any financial interest in any design-build entity or team which submits a design-build contract construction proposal or which provides the design-build services. (b) A formal request for proposals may be posted and advertised in manner provided for in Section 2.30.410(a), or by targeted distribution to three or more design-build entities or teams which the Procurement Officer determines possesses demonstrated skills, experience, and financial qualifications to provide the required design-build services. (c) A formal request for proposals shall comply with the requirements of Section 2.30.140(a) and shall include: the bridging documents prepared according to Section 2.30.490(a); a request for qualifications; and the design-build contract documents approved by the City Attorney as required by this chapter. (d) Design-build entities and teams may be required to pre-qualify in order to be eligible to submit a proposal for the design-build project by responding to the request for qualifications in advance of the date set for the submission of proposals. The Procurement Officer may determine and will provide notice that the statement of qualifications may be submitted concurrently with the proposals. (e) The design-build contract may be awarded to the responsive, responsible design-build entity or team on the basis of either the lowest lump-sum price or the ‘best value’ provided, as defined in the formal request for proposals. A design-build contract that is awarded on the ‘best value’ basis will be evaluated based solely on the selection criteria and procedures set forth in the formal request for proposals, (f) The design-build contract shall require the design-build entity or team and its subcontractors of every tier to comply with the requirements of Section 22164(c) of the California Public Contract Code, as amended. // // 160510 sh 016/purchasing/2016update 29 PART 6 CONTRACT TERMS AND CONDITIONS 2.30.500 Bid security, bonds and insurance. (a) When required. The purchasing manager shall have the authorityProcurement Officer is authorized to require bid security, and surety bonds, including payment (labor and materials) and performance bondsasbonds, as well as specific types and amounts of insurance coverage in connection with contracts for public works, goods, general services, professional services, and wholesale utility commodities and services to the extent required by stateCalifornia or federal law, or this chapter, or upon a determination that it is in the best interest of the city to do so by the City Manager or, if the City Manager does not make a determination, by the Procurement Officer in consultation with the City Attorney. (b) Bid security. Bid security shall be submitted with the bid and shall be in the form of a certified check, cashier's check or surety bond. Any surety bond shall be issued by an admitted surety authorized to conduct business in the state of California and shall be in a form acceptable to the city attorneyCity Attorney and as specified in the solicitation for bids document. If a bidder fails to submit the required bid security with the bid, the bid shall be deemed nonresponsive. After bids are opened, bid security isshall be irrevocable for the period specified in the invitation for bids. If the successful bidder fails to execute the contract within the time specified, the total amount of the bid security shall be forfeited to the city. The bid security of an unsuccessful bidder shall be returned to the bidder by no later than sixty calendar days from the date of contract award. Bids for public works projects greater than $65,000.00costing in excess of $85,000.00 shall require the submission of bid security in an amount equal to at least ten percent of the bid. On public works projects costing $85,000.00 or less than or equal to $65,000.00, and all other procurements of goods and services the purchasing officerwithout regard to price, the Procurement Officer is authorized to determine ifwhether any bid security is neededin any amount shall be required on a project-by-project basis. (c) Payment and performance security.Surety bonds. Payment and performance security shall be inrequired of contractors and take the form of surety bonds acceptable to the city attorneyCity Attorney and issued by an admitted surety authorized to conduct business in the state of California. Invitations for bids for public works projects greater than costing in excess of $25,000.00 shall require the submission of payment bond and performance bondsbond, each in an amount equal to one hundred percent of the contract price at the time the contract is executed. Where the contract is with a governmental agency or a public utility the requirement for performance and payment security may be waived, in writing, by the purchasing managerProcurement Officer if the contracting governmental agency or public utility agrees, in writing, that, to the extent all work is not to be done by its own employees, it will require any and all contractors it awards contracts for the performance of any of the work to provide, before commencement of the work, the payment bond and performance bonds,bond, on terms and conditions it establishes, which is satisfactory to the cityProcurement Officer and complying with the provisions of theapplicable California Civil Codelaw. Payment bond and 160510 sh 016/purchasing/2016update 30 performance bondsbond for public works projects shall be extended in the full amount of the contract for a one-year warranty period beyond the date of acceptance of the workpublic works project by the city. On public work projects costing $25,000.00 or less than or equal to $25,000.00, and on all acquisitions of goods and services without regard to price, the purchasing managerProcurement Officer is authorized to determine ifwhether any payment and performance security is neededin any amount shall be required on a case-by-case basis. (d) Form of bonds. The only bonds acceptable to the city shall be those executed on forms approved by the city attorneyCity Attorney and as specified in the solicitationinvitation for bids or request for proposals. (e) Insurance. The insurance risk manager acting on behalf of the City Manager by the authority conferred by Section 2.28.170 of this municipal code shall determine the insurance requirements to be imposed upon any third party doing business with the city pursuant to this chapter. The successful bidder or proposer shall submit certificates of insurance and endorsement forms, as applicable, as evidence that it has the typeobtained and amountwill maintain the types and amounts of insurance coveragecoverages required by the bid or proposal solicitation documents. Such evidence shall be submitted to the purchasing managerProcurement Officer promptly upon request and shall be issued by an admitted insurer authorized to operateconduct business in the state of California and is acceptable to the city. The insurance risk manager may waive the insurance requirement whenwhere the contract is an intergovernmental agency contract or a city-public utility contract, and the governmental, public or quasi-public agency or the public utility, to whom the contract is awarded, agrees, in writing, that it will have all the work obtain and maintain and provide evidence of the required insurance coverage before the commencement of the work, naming the city, its officials, officers, agents and employees and agents as additional insureds to such policy. 2.30.510 Nondiscrimination. All contracts costing in excess of $510,000.00 shall include a certification of nondiscrimination that in the performance of the contract, with the city, the consultant or the contractor will not discriminate in the employment of any person because ofdue to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. Any consultant or contractor who is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions ofany federal, state or local nondiscrimination law or executive order in the performance of any contract with the city, thereby shall be found in material breach of such contract and thereupon the city shall have the power to cancel or suspend the contract, in whole or in part, or to deduct from the amount payable to such contractor the sum of $25.001,000 for each person for each calendar day during which the City Manager determines such person was discriminated againstsubject to discriminatory conduct or action by the consultant or the contractor or any officer, employee, 160510 sh 016/purchasing/2016update 31 agent or representative of the consultant or the contractor, as damages for said breach of contract, or both. Only a finding of the U.S. Department of Labor, the U.S. Equal Employment Opportunity Commission, State of California Fair Employment Practices Commission, or the equivalent federal agency or officeroffice shall constitute evidence of a violation of contract under this sectionSection. PART 7 ETHICS IN CONTRACTING 2.30.600 Ethics. (a) Statement of Policy. City employees shall discharge their duties impartially so as to assure fair competitive access to city contracting opportunities by responsible consultants and contractors. Moreover, they shall conduct themselves in a manner as will foster public confidence in the integrity of city contracting policies, procedures and activities. (b) Conflict of Interest. No city employee shall participate directly or indirectly in a city contract when the employee knows that: (1) The employee or any member of the employee's immediate family has a financial interest pertaining to the contract; or (2) The employee or any member of the employee's immediate family is negotiating or has an employment arrangement which is contingent upon or will be affected by the contract. (c) Withdrawal from Participation. Upon the discovery of an actual or potential conflict of interest, an employee shall promptly withdraw from further participation in the contract procurement process. (d) Gratuities. No person shall offer, give or agree to give any city employee any gratuity, discount or offer of employment in connection with the award of a contract by the city. No city employee shall solicit, demand, accept or agree to accept from any other person a gratuity, discount or an offer of employment in connection with a city contract. 2.30.610 Preparation of bid or proposal documents. AnyA person or, entity or team, with whom the city has contracteda contract to prepare, advise or assist in the preparation of plans and/or specifications that will be included as part of the contract terms and conditions in bid or proposal documents, isshall be ineligible to submit a bid or proposal for that contract. or be a named consultant or contractor or sub-consultant or sub- contractor in that bid or proposal, if the contract with the city was in effect for a period of one year prior to, or is or will be in effect at the time of, the contract that is the subject of the bid or proposal. This ineligibility shall not preclude the award of a contract, calling for the design and construction of a public works project, to the consultant or the contractor pursuant to a design- build contract or other alternative procurement method-based contract. 160510 sh 016/purchasing/2016update 32 PART 8 RECORDS AND REPORTS 2.30.700 Records, public inspection. (a) Records maintenance. The purchasing managerProcurement Officer shall maintain written records (in hard copy or electronic format) for each contract, price quotation, purchase order, document or other agreement awarded or entered into by the city, which shall include, at a minimum: the request from the department; the bid or proposal documents received for the contract, if any; all bids or proposals received; the basis on which the contract award was made; and a copy of any and all contracts awarded. The purchasing managerProcurement Officer shall maintain and retain written records of his or her any determination to cancel solicitationssolicitation documents and of an awarding authority’s decision to reject bids or proposals. Such records shall be maintainedretained for a period of time in compliance with stateCalifornia law and the city's records retention schedule, and the records shall be made available for public inspection during normal city business hours. The foregoing provisions shall not apply to records of wholesale utility commoditycommodities and services transactions retained under a master contractagreements referred to in Section 2.30.140, which shall be maintained by the department of utilities. (b) Public inspection. Bids shall be available for public inspection following the date and time set for receipt of bids. Proposals shall be available for public inspection following the public announcement of the selection of a proposer for award of contract award. This sectionSection shall not be construed to require the disclosure of records notthat are otherwise requiredexempt from inspection and copying by law to be disclosed. 2.30.710 City manager reportreports. Report to council. The city manager (a) City Manager shall make a biannual report to the councilCouncil of all contracts awarded by the purchasing manager or the city manager for general services and professional services or general services awarded by the City Manager, the Procurement Officer or other designated employees, the costcosts of which exceed $25,000.00, and of all contracts awarded by the city managerCity Manager for public works and goods, the costs of which exceed $6585,000.00. (b) The city managerCity Manager shall also makeprepare and deliver an annual report to the councilCouncil of all leases, licenses and rentals of city real property with third parties, approved by the city managerCity Manager. // // 160510 sh 016/purchasing/2016update 33 PART 9 REWARDS 2.30.800 Rewards relating to arrest and conviction. Rewards for information The authority to offer and pay a reward leading to the arrest and conviction of criminals. Although the payment of rewardsa criminal is not a purchase in the strict sense of the definition, the authority to offer and pay rewards is contained inreasonably contemplated by this chapter because it involvesto the extent an expenditure of city funds in return for valuable information. (a) The can be considered payment for the rendering of services to the city manager, as contemplated by Section 2.30.010. (a) The City Manager is authorized to offer and pay a reward of up to $25,000.00 for information leading to the arrest and conviction of any person or persons whose willful conduct causes unlawful injury or death to another person, or whose willful misconduct results in unlawful damage or destruction of personal property. of the city or another person. The city managerCity Manager shall cause the reward offer to be publicized and reported to the city councilCouncil. (b) A reward shall not be paid unless the information is received by the Palo Alto Police Department within 90ninety days of publication of the reward offer. (c) Conviction of the person or persons found responsible for the crime shall be required for payment of a reward unless the city managerCity Manager makes a written finding that the conviction, determination of guilt, or finding of responsibility was impossible due to the death of the criminal. (d) Reward claims shall be made, in writing, and the claimant shall provide thehis or her name, address and telephone number of the claimant. Unless disclosure is authorized by the claimant, this information shall be deemed confidential and protected from public disclosure to the maximum extent permitted by California law. (e) Each reward offer shall be made, in writing, and shall be valid only if approved in advance as to form and in compliance with this sectionSection by the city attorneyCity Attorney. PART 10 STANDARDIZATION 2.30.900 Standardization. Where the city managerCity Manager has determined that it is required by the health, safety or welfare of the people or employees of the city, or that significant costs savings have been demonstrated, the standardization of supplies, materials or equipment, including, without 160510 sh 016/purchasing/2016update 34 limitation, information and communication technology property, for purchase or to be used in a public works project is permitted and the supplies, materials or equipment specifications may specify a single brand or trade name. Among the factors thatThe City Manager or the Procurement Officer may be considered the following factors in determining to standardize on a single brand or trade name are that: (a) Repair and maintenance costs would be minimized; (b) User personnel training would be facilitated thereby; (c) Supplies or spare parts would be minimized; (d) Modifications to existing equipment would not be necessary; (e) Training of repair and maintenance personnel would be minimized; and (f) Matching existing supplies, materials or equipment is required for proper operation of a function or program. // // // // // // // // // // // // // 160510 sh 016/purchasing/2016update 35 SECTION 3. The Council finds that the adoption of this ordinance is exempt from the application of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, as it can be established with certainty there is no possibility of any significant environmental effect occurring by the adoption of this ordinance. SECTION 4. 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 Deputy City Attorney City Manager _____________________________ Director of Administrative Services City of Palo Alto (ID # 7143) City Council Staff Report Report Type: Action Items Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Approval of Resolution Establishing Storm Water Balloting Procedures Title: Adoption of a Resolution Proposing a Storm Water Management Fee of $13.65 per Equivalent Residential Unit (ERU) to Replace the Existing Storm Drainage Fee, Calling a Public Hearing for October 24, 2016 with Respect to Such Fee, Adopting Procedures Relating to the Conduct of a Protest Hearing and Mail Ballot Election, and Adopting a Categorical Exemption Under Section 15061(b)(3) of the California Environmental Quality Act Guidelines From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council adopt a resolution proposing a monthly storm water management fee of $13.65 per Equivalent Residential Unit (ERU) to replace the existing storm drainage fee of $13.03 per ERU, calling a public hearing for October 24, 2016 with respect to such fee, adopting procedures relating to the conduct of a protest hearing and a mail ballot election in conformance with Proposition 218 (Attachment A), and adopting a categorical exemption under Section 15061(b)(3) of the California Environmental Quality Act Guidelines. Background The City’s storm drain capital improvement, maintenance, and water quality protection programs are funded through the Storm Drainage Fund, an enterprise fund established by Council in 1989. Revenue is generated by a Storm Drainage Fee assessed to all developed properties in Palo Alto on monthly utility bills. The Storm Drainage Fee is a property-related fee subject to the provisions of Proposition 218, and cannot be increased without the approval of a majority of property owners subject to the fee increase. In April 2005, Palo Alto property owners, voting in a mail ballot election, approved a measure increasing the Storm City of Palo Alto Page 2 Drainage Fee, through June 1, 2017, for a typical single-family residential parcel to $10.00 per month, with provision for annual inflationary increases. Council approved a monthly fee of $13.03 per Equivalent Residential Unit (ERU) for FY 2017. If no action is taken to approve updated fees, the fee structure approved in 2005 will sunset in June 2017, and the fee will revert back to its pre-2005 level of $4.25 per ERU per month. On June 6, 2016, staff presented and endorsed an enhanced storm water management program and associated funding plan recommended by the City Manager-appointed Storm Drain Blue Ribbon Committee for implementation beginning in June 2017. The program included a set of sixteen high-priority storm drain system capital improvements totaling $27.2 million, and also allocated $500 thousand per year for storm drain system replacement and rehabilitation, $450 thousand per year for green storm water infrastructure projects, and $154 thousand per year in financial incentives for the installation of green storm water infrastructure measures on private residential and commercial properties. The plan would be funded via an increase in the renamed “Storm Water Management Fee” to $13.65 per month per ERU, with provision for annual inflation adjustments based on the local increase in the Consumer Price Index or six percent, whichever is less. The funding proposal also includes the continuation of the independent, Council–appointed Storm Drain Oversight Committee to review annual storm water management expenditures. Staff has continued to refine the scope and cost of the funding proposal components in preparation for presentation to property owners for approval. The version of the funding proposal endorsed by the Storm Drain Blue Ribbon Committee and presented to Council on June 6 was based on the adopted FY2016 City budget. After adjusting the proposal to reflect the FY2017 adopted budget and budget projections for FY2018, the costs of ongoing staffing and programs have been increased, leaving less funding for the proposed new storm water management endeavors. The modified program is based on a set of thirteen high-priority storm drain system capital improvements totaling $23.8 million, and also allocates allocated $400 thousand per year for storm drain system replacement and rehabilitation, $375 thousand per year for green storm water infrastructure projects, and $125 thousand per year in financial incentives for the installation of green storm water infrastructure measures on private residential and commercial properties. A side-by-side comparison of the original Blue Ribbon City of Palo Alto Page 3 Committee funding proposal and the modified current proposal is included as Attachment B to this report. The revised proposal has been shared with members of the Blue Ribbon Storm Drain Committee, who concur with the modifications. The proposed fee of $13.65 per ERU per month would be divided into two components. A base component of $7.48 of the proposed fee has been calculated based on ongoing non-capital expenditures for engineering, maintenance, and storm water quality staffing, expenses, and permit compliance. A projects and infrastructure component of $6.17 has been calculated based on costs associated with Capital Improvement Projects (CIP), Incentive Projects (IP), and Green Storm Water Infrastructure (GSI) Projects, in addition to certain repair and existing debt service costs. Costs were based on the identified set of storm drain capital improvement projects, Incentive Project funding that would provide financial incentives for residents and commercial property owners to incorporate green infrastructure measures into their private property projects, and the cost of the Green Storm Water Infrastructure Plan preparation and implementation of GSI projects. Unimproved parcels would remain exempt from the Storm Water Management Fee. The proposed fee also exempts developed parcels that have their own storm drainage facilities and which do not utilize City facilities, or which make no substantial contribution of storm or surface water to the City’s storm drainage facilities. If the fee is ultimately adopted, staff will present Council with a revised Rule and Regulation 25 (Special Storm Drain and Surface Water Drainage Utility Regulations) reflecting the proposed exemption process. The proposed Storm Water Management Fee increase would partially sunset fifteen (15) years from the date the fee increase is implemented. The projects and infrastructure component of the fee would sunset after fifteen years. The base component of the fee, however, would remain in effect on a permanent basis in order to provide a sustained funding source for ongoing non-capital expenditures for engineering, maintenance, and storm water quality staffing, expenses, and permit compliance. The base fee would continue to be subject to annual inflationary adjustment at the discretion of the City Council, as described above, beyond the sunset date. At the June 6, 2016 meeting, Council directed staff to return to secure Council authorization to implement the process dictated by Proposition 218 to seek property owner approval of an increase in the monthly Storm Water City of Palo Alto Page 4 Management Fee to $13.65 per ERU to fund the proposed enhanced storm water management program. Discussion The specific elements of the enhanced storm drain program and the associated funding plan were presented to Council in the June 6, 2016 staff report. A detailed description of the proposal is contained in the resolution and associated exhibits attached to this report (Attachment A) and a financial analysis of the proposed Storm Water Management Fee (Attachment C). Proposition 218 requires public agencies to secure approval for increases in property-related fees through either 1) a mail ballot election requiring approval by a simple majority of property owners returning ballots, or 2) a general election requiring approval by a two-thirds majority of registered voters casting ballots. Staff and the Storm Drain Blue Ribbon Committee advocate the mail ballot election alternative based on the lower approval threshold and the lower expense as compared to a general election. Council approved an ordinance in June 2000 that authorizes the City to conduct mail ballot elections for property-related fees, special taxes, or assessments. The ordinance requires Council to adopt individual resolutions authorizing specific mail ballot elections. Submitting the proposed Storm Water Management Fee increase to property owners for approval is a two phase process that consists of a public hearing, followed by a mail ballot election, as required by Proposition 218. First, the City will mail a notice to all property owners subject to the Storm Water Management Fee, informing them of a public protest hearing to be held on October 24, 2016. Property owners will have the right to file a written protest opposing the fee increase at any time prior to the close of the public input portion of the public hearing. If a majority of property owners file a written protest, Council may not proceed to the next phase, and the fee increase approval process is terminated. If a majority protest does not occur, the Council may elect to call for a property owner mail ballot election. Staff would mail ballots to the owners of all properties subject to the Storm Water Management Fee, with a prepaid return envelope. Property owners would be directed to mail or hand-deliver their ballots to the City Clerk’s office for tabulation. The fee increase would be approved if a majority of owners returning ballots vote to accept the increase. The mail ballot election has been scheduled to take place between January 11 and February 28, 2017. City of Palo Alto Page 5 The City Attorney’s Office has developed detailed procedures to govern the protest hearing and mail ballot election because Proposition 218 does not provide detailed guidelines. The procedures define the protest and mail ballot election process by specifying voter eligibility requirements, describing the notice and protest requirements, and providing details for conducting the mail ballot election and vote tabulation. The protest hearing and mail ballot election procedures are included as an exhibit to the resolution attached to this report. The procedures recommended by the City Attorney’s Office streamline staff’s work tasks and simplify the process for property owners to document changes in ownership. Timeline The timeline for the protest hearing and storm drain mail ballot election is presented below. 8/29/16 Council adoption of a resolution proposing a Storm Water Management Fee increase and establishing procedures for protest hearing/mail ballot election 9/9/16 Legal notices mailed; start of 45-day noticing period 10/24/16 Protest hearing; adoption of revised Utility Rule and Regulation 25 1/11/17 Ballots mailed; balloting process requires at least 45 days 2/28/17 Ballots due back to City Clerk 3/20/17 Council certification of election results; adoption of Utility Rate Schedule D-1 (Allows for staff report processing time) 6/1/17 Effective date of new Storm Water Management Fee Resource Impact To maintain the self-sufficiency of the Storm Drainage Fund, the City must secure property owner approval of a ballot measure authorizing increased storm drain funding before the 2005 ballot measure sunsets in June 2017. If the Storm Water City of Palo Alto Page 6 Management Fee reverts back to its pre-2005 level of $4.25 per month per ERU, it will generate approximately $2.2 million per year. This amount of revenue would not support a minimum level of storm drainage service, which would cost approximately $4.3 million per year. In addition, the pre-2005 level of funding would preclude any further storm drain capital improvement projects. If a new ballot measure is not approved, storm drain system operations would need to be significantly curtailed. If the proposed rate schedule were approved, it would generate the following revenue for storm water management programs and capital improvement projects in FY 2018: Base Component ($7.48/month/ERU): $3.8 million Projects And Infrastructure Component ($6.17/month/ERU): $3.1 million Total Storm Water Management Fee Revenue: $6.9 million Policy Implications Identification of funding for storm drain capital improvements is consistent with Policy N-24 of the Comprehensive Plan, which states that the City should “improve storm drainage performance by constructing new system improvements where necessary and replacing undersized or otherwise inadequate lines with larger lines or parallel lines.” Program N-36 further states that the City should “complete improvements to the storm drainage system consistent with the priorities outlined in the City’s 1993 Storm Drainage Master Plan, provided that an appropriate funding mechanism is identified and approved by the City Council.” Environmental Review Council’s adoption of a resolution calling a public hearing and adopting protest hearing and election procedures is categorically exempt from California Environmental Quality Act (CEQA) review under CEQA Guidelines Section 15061(b)(3), because these actions do not have the potential for causing a significant effect on the environment. Review and adoption of a funding mechanism for storm water management projects is not a project under CEQA Guidelines Section 15378(b)(4), because a “project” does not include the creation of government funding mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. City of Palo Alto Page 7 Thus, no environmental analysis is required at this time. Future CEQA review will occur based on the selection of storm drain capital improvement projects that may be funded by the proposed storm water management fees. Courtesy Copies Storm Drain Blue Ribbon Committee Attachments: A - Resolution (PDF) B - Modifications to SDBRC Recommendations (PDF) C - Financial Analysis of Storm Water Management Fee (PDF) Not Yet Approved Resolution No. ____ Resolution of the Council of the City of Palo Alto Proposing a Storm Water Management Fee To Replace The Storm Drainage Fee, Calling A Public Hearing For October 24, 2016 With Respect To Such Fee And Adopting Procedures Relating To The Conduct Of A Protest Hearing And Mail Ballot Election R E C I T A L S A.In 1989, the City established a storm drainage fee to fund costs associated with the City’s storm drainage enterprise. B.In 1994, the City set the rate of the storm drainage fee at $4.25 per month per equivalent residential unit (“ERU”). C.In 1996, California voters adopted Proposition 218 which, among other things, required voter approval of certain property-related fees. D.In 2005, at a mail ballot election, Palo Alto property owners approved an increase of the City’s storm drainage fee, along with an annual inflation adjustment formula for the increase. E.The City’s storm drainage fee increase included a twelve-year sunset. F.The increase is scheduled to sunset on June 1, 2017. G.The current rate of the storm drainage fee, including the portion of the fee that is set to sunset, is $13.03 per month per ERU. H.The City Council desires to propose that the existing storm drainage fee be replaced by a new Storm Water Management Fee (the “Proposed Fee”). I.In order to conduct a fair process that complies with the provisions of Proposition 218, the City Council finds it appropriate to clearly describe the Proposed Fee and the procedure by which the City will conduct any protest hearings and mail ballot elections in connection with the Proposed Fee. / / 160811 jb 6053816 1 Attachment A Not Yet Approved NOW, THEREFORE, the City Council does hereby resolve as follows: SECTION 1. The City Council hereby declares that its intent in adopting this resolution is to provide the community with a guide to the protest and mail ballot election process for the Proposed Fee. SECTION 2. The Council sets October 24, 2016, at 6:00 PM at the Council Chambers located at 250 Hamilton Avenue, Palo Alto, CA as the time and place for a public hearing on the Proposed Fee. The Proposed Fee is more completely described in Exhibit “A,” attached hereto and incorporated herein by reference. SECTION 3. The Council hereby approves the “Procedures for the Conduct of Protest Hearing and Mail Ballot Election in Connection with Proposed Storm Water Management Fee” (the “Procedures”), as set forth in Exhibit “B,” attached hereto and incorporated herein by reference. SECTION 4. Staff is directed to give notice of the October 24, 2016 public hearing in the manner set forth in the Procedures. The public hearing will be conducted as a protest hearing pursuant to the Procedures. SECTION 5. It is the intent of the Council that the $4.25 per month per ERU base storm drainage fee levied since 1994 will continue unless the Proposed Fee is approved. If the Proposed Fee is approved by the property owners at a mail ballot election and imposed by the City Council, the existing base storm drainage fee will not be charged in any month during which the Proposed Fee is effective. SECTION 6. The Council finds that this resolution, calling a public hearing and adopting protest hearing and election procedures is categorically exempt from California Environmental Quality Act review under CEQA Guidelines Section 15061(b)(3), because these actions do not have the potential for causing a significant effect on the environment. The Council’s review and adoption of a funding mechanism for storm water management projects is not a project under CEQA Guidelines Section 15378(b)(4), because a “project” does not include the creation of government funding mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. Thus, no environmental / / / / 160811 jb 6053816 2 Not Yet Approved analysis is required at this time. Future CEQA review will occur based on the selection of storm drain capital improvement projects that may be funded by the proposed storm water management fees. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Public Works ____________________________ Director of Administrative Services 160811 jb 6053816 3 Not Yet Approved EXHIBIT “A” DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE A. Overview The proposed Storm Water Management Fee would have two components: A Base Component A Projects and Infrastructure Component B. Proposed Rates (Effective June 1, 2017) The Proposed Rate for the Storm Water Management Fee effective June 1, 2017 is: $13.65 per ERU (Equivalent Residential Unit) per month. This is comprised of: Base Component of $7.48 per ERU per month; and Projects and Infrastructure Component of $6.17 per ERU per month C. Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San Francisco-Oakland-San Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. D. Duration 1) Base Component The Base Component would be charged monthly, beginning June 1, 2017, until terminated by the City Council. 160811 jb 6053816 4 Not Yet Approved 2) Projects and Infrastructure Component The Projects and Infrastructure Component would be charged monthly, beginning June 1, 2017. Unless further extended by the voters, the Projects and Infrastructure Component would no longer be charged beginning June 1, 2032. E. Method of Collection and Calculated The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25, subject to the exemptions set forth in this Section E. As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis: Single-Family Residential Parcels: Lot Size ERU's <6,000 sq. ft. 0.8 ERU 6,000 - 11,000 sq. ft. 1.0 ERU >11,000 sq. ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500 Assigned ERU's are rounded to the nearest one-tenth of an ERU. Unimproved parcels are not subject to the Storm Water Management Fee, and the fee will not be charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City's storm drainage facilities. For a more complete description of the manner of collection and calculation of the Storm Water Management Fee, reference is made City of Palo Alto Utilities Rule and Regulation No. 25. F. Use of Funds Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: (A) Improving the quality of storm and surface water; 160811 jb 6053816 5 Not Yet Approved (B) The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City's public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. G. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review expenditures for all storm water funding elements, including, but not limited to, Green Storm Water Infrastructure projects, storm water Capital Improvement Program projects, and Incentive Project funding and ensure that the money raised from the increased storm water management fee is spent in accordance with this resolution. The Committee would be empowered to consider and recommend consolidation of Green Storm Water Infrastructure and Incentive Project funding for particular projects. The City Council may choose to retain the members of the existing Council-appointed Storm Drain Oversight Committee to perform this oversight function. The oversight committee would report its findings to the City Council at least annually. H. Pay-as-you-go funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Water Management Fee would be paid for on a pay-as-you-go basis, without debt financing. 160811 jb 6053816 6 6053814 EXHIBIT "B" PROCEDURES FOR THE CONDUCT OF PROTEST HEARING AND MAIL BALLOT ELECTION IN CONNECTION WITH PROPOSED STORM WATER MANAGEMENT FEE 2016 The following procedures have been adopted by the City Council of the City of Palo Alto for the purpose of conducting all proceedings required by Article XIIID of the California Constitution for consideration of the proposed Storm Water Management Fee. Where no specific procedures are imposed by Article XIIID, or the Proposition 218 Omnibus Implementation Act (Gov’t Code Section 53750 et seq.), these procedures shall apply. 6053814 Part I Introduction In connection with consideration of its proposed Storm Water Management Fee, the City of Palo Alto will conduct two proceedings: 1. A Protest Hearing. 2. A Mail Ballot Election. A Mail Ballot Election will only be held if (i) the City Council determines that, as of the close of the public input portion of the Protest Hearing, a majority protest does not exist and (ii) the City Council adopts a resolution calling a Mail Ballot Election. All references in this document to the City Clerk shall, to the extent the reference requires that the City Clerk perform a function, be deemed to include any employee of the City who is designated by the City Clerk to perform that function. The term "owner", when used in this document and not otherwise defined, includes any person who qualifies as an owner for purposes of Article XIII D, Section 6 of the California Constitution. 6053814 Part 2 Protest Hearing A. Notice 1. Not less than 45 days prior to the date of the Protest Hearing, Notice of the Protest Hearing shall be mailed to the Record Owner of each parcel to which the Storm Water Management Fee is proposed to apply. 2. The Notice shall include all information required by Article XIII D, Section 6(a)(1) of the California Constitution and such other relevant information as staff may determine to include. 3. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Protests 1. Written Protests will be accepted by the City Clerk via US Mail or hand delivery at the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during regular business hours. Written Protests will also be accepted by the City Clerk at the Protest Hearing. All Written Protests must be received by the City Clerk prior to the close of the public input portion of the Public Hearing in order to be considered pursuant to these Procedures. 2. A Written Protest must (i) state that it is a protest against the proposed Storm Water Management Fee; (ii) identify the parcel with respect to which it is made (either by Assessor’s Parcel Number or Street Address); (iii) identify the owner for whom the Written Protest is submitted; (iv) include the printed name of the natural person signing the Protest (if that person is not himself or herself the owner); and (v) include the original wet signature of the owner or of a person legally authorized to execute documents on behalf of the owner. 3. If a Parcel served by the City is owned by a partnership, joint tenancy, or tenancy in common, any partner, joint tenant, or tenant in common may submit a Written Protest, but only one Protest will be counted per Parcel and any one Protest submitted in accordance with these rules will be sufficient to count as a Protest for that Parcel. 4. Where an owner of a Parcel is not a natural person, a Written Protest may be submitted by the owner and signed by any person authorized to execute documents on behalf of the owner. 5. In the event a person not shown on the last equalized secured property tax assessment roll assumes (or otherwise has) ownership of a Parcel, that person may submit a Written Protest with respect to that Parcel. Such protest must include all information otherwise required of a Written Protest and must also include either (i) proof of such ownership or (ii) a statement, submitted under 6053814 penalty of perjury by the person submitting the Written Protest, that the person signing the Protest is an owner of the Parcel or is legally authorized to submit the Protest on behalf of the owner of the Parcel. 6. Anyone who submits a Written Protest may withdraw it by submitting to the City Clerk a signed written request that the protest be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Protest and the request that it be withdrawn. 7. To ensure transparency and accountability in the fee protest tabulation, Protests shall constitute disclosable public records from and after the time they are received. C. Tabulation 1. The City Clerk or her designee shall determine the validity of all Protests. That person (the “Tabulator”) shall not accept as valid any Protest if he or she determines that any of the following conditions exist: a. The Written Protest does not identify a Parcel subject to the Storm Water Management Fee. b. The Written Protest does not bear an original wet signature of (i) an owner of the identified Parcel or (ii) a person legally authorized to submit the Written Protest on behalf of the owner. c. The Written Protest does not state its opposition to the proposed fee. d. The Written Protest was not received before the close of the public input portion of the Public Hearing. e. A request to withdraw the Written Protest is received prior to the close of the public input portion of the Public Hearing. 3. The Tabulator’s decision that a Written Protest is not valid shall constitute a final action of the City and shall not be subject to any internal appeal. 4. A majority protest exists if Written Protests are timely submitted and not withdrawn with respect to a majority of the parcels subject to the proposed fee. The City Council may not adopt a resolution calling a Mail Ballot Election if there is a majority protest. 5. At the conclusion of the public hearing, the Tabulator shall complete the tabulation of all Written Protests received, including those received during the Public Hearing and shall report the results of the tabulation to the City Council upon completion. If review of the Written Protests received demonstrates that the number received is manifestly less than one‐half of the Parcels served by the City with respect to the fee which is the subject of the protest, then the Tabulator may advise the City Council of the absence of a majority protest without determining the validity of all Written Protests. 6053814 Part 3 Mail Ballot Election A. Mailing of Ballot 1. Not less than 45 days prior to the date of the Mail Ballot Election, Election Materials shall be mailed to the Record Owner of each Parcel to which the Storm Water Management Fee is proposed to apply. 2. Election Materials shall include a Notice, a Ballot, and a Ballot Return Envelope. 3. The Notice shall include: (i) The total amount of the Storm Water Management Fee chargeable to all Parcels in the City that are subject to the Storm Water Management Fee; (ii) The amount chargeable to the owner's particular Parcel; (iii) A description of the inflation adjustment formula applicable to the Storm Water Management Fee; (iv) The duration of the Storm Water Management Fee; (v) The reason for the Storm Water Management Fee and the basis upon which the amount of the proposed fee was calculated; (vi) The date and time by which Ballots must be returned to the City Clerk and the address for return of Ballots; (vii) The date, time and location where Ballots will be tabulated; (viii) A summary of the procedures applicable to the completion, return, and tabulation of the Ballots; (ix) A disclosure that the Fee will only be approved if the number of Ballots cast (and not withdrawn) in favor of the Storm Water Management Fee exceed the number of Ballots cast (and not withdrawn) in opposition to the Storm Water Management Fee; and (x) Such other relevant information as staff may determine to include. 4. The Ballot shall include: (i) The address for return of Ballots; (ii) The name of the Record Owner; (iii) An identification of the Parcel; 6053814 (iv) A place where the person casting the Ballot may indicate support or opposition to the Storm Water Management Fee; (v) A place where the person submitting the Ballot may print his or her name and execute a statement under penalty of perjury that he or she is an owner of the Parcel identified on the Ballot or is a person legally entitled to submit a Ballot on behalf of an owner; and (vi) Such other relevant information as staff may determine to include. 5. The Ballot Return Envelope shall include prepaid postage and be preaddressed to the Office of the City Clerk. The City Clerk may establish a special Post Office Box address for the return of Ballots. If the City Clerk does so, that address shall be used on the Ballot Return Envelope. In order to ensure proper handling, the Ballot Return Envelope shall include on its face the words “Ballot Return Envelope—Do Not Open Until Close of [date] Election”. 6. Any information required to be included on the Notice may instead be included on the Ballot. 7. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice, a Ballot, and a Ballot Return Envelope shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Completion of Ballots 1. Who May Complete a Ballot A Ballot may be completed by an owner of the parcel subject to the fee. If the owner of the Parcel is a partnership, joint tenancy, or tenancy in common, a Ballot may be completed by any of the general partners, joint tenants, or tenants in common. Except as set forth below, only one Ballot may be completed for each Parcel. 2. Proportional Ballots If a Parcel has multiple owners, any owner may request a Proportional Ballot. If the ownership interest of the owner is not shown on the last equalized secured property tax assessment roll, such request must include evidence, satisfactory to the City Clerk, of the owner's Proportional rights in the Parcel. The City Clerk will provide the Proportional Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Proportional Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Proportional Ballot and to indicate the owner's Proportional rights in the Parcel. The City Clerk will keep a record of each Proportional Ballot provided to an owner. 3. Duplicate Ballots If a Ballot is lost, withdrawn, destroyed or never received, the City Clerk will mail or otherwise provide a Duplicate Ballot to the owner upon receipt of a request in writing delivered to the City Clerk. The 6053814 Duplicate Ballot will be marked to show the date on which the Ballot was mailed or provided and to identify it as a Duplicate Ballot or a Duplicate Proportional Ballot. The same procedure applies to Duplicate Ballots or Duplicate Proportional Ballots which are lost, withdrawn, destroyed, or never received. If the ownership interest of the owner requesting the Duplicate Ballot is not shown on the last equalized secured property tax assessment roll (as, for example, when a Parcel has been acquired after the assessment roll is equalized), the Duplicate Ballot request must include evidence, satisfactory to the City Clerk, of the person’s rights in the Parcel. In this case, the Duplicate Ballot shall indicate the name of the owner who has requested the Ballot. The City Clerk will provide the Duplicate Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Duplicate Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Duplicate Ballot. The City Clerk will keep a record of each Duplicate Ballot provided to an owner. 4. Provisional Ballot If a person requests a Duplicate Ballot, and that person does not provide the City Clerk with evidence to the City Clerk that is sufficient to demonstrate to the City Clerk that the person is the owner of a Parcel that will be subject to the Storm Water Management Fee, the City Clerk will issue that person a Provisional Ballot. Each Provisional Ballot shall be marked to show the date on which the Ballot was provided, to identify the person to whom it was issued, and to identify the Parcel for which the requesting person claims an ownership interest. The City Clerk will keep a record of each Provisional Ballot provided. 5. Marking and Signing the Ballot To complete a Ballot, the owner of the Parcel must (1) mark the appropriate box supporting or opposing the proposed Storm Water Management Fee, and (2) sign, under penalty of perjury, the statement on the Ballot that the person completing the Ballot is an owner of the Parcel or a person legally authorized to execute documents on behalf of the owner. Ballots must be completed in ink and include the original wet signature of the signer. 6. Only Ballots Provided by the City Will Be Accepted The City Clerk will only accept Ballots mailed or otherwise provided to owners by the City. B. Return of Ballots 1. Where to Return Ballots Ballots may be hand‐delivered to the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during the normal business hours of that office. Ballots may also be returned to the Office of 6053814 the City Clerk by mail. The mailing address for return of Ballots shall be the address printed on the Ballot and Ballot Return Envelope, and may be the usual mailing address of the Office of the City Clerk or a special Post Office Box established for this purpose. 2. When to Return Ballots All returned Ballots must be received by the City Clerk prior to the date and time set by the City Council in the resolution calling the election. The date shall be any Tuesday selected by the City Council (aside from the date of a statewide direct primary election or statewide general election). 3. Withdrawal of Ballots Anyone who submits a Ballot may withdraw it by submitting to the City Clerk a signed written request that the Ballot be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Ballot and the request that it be withdrawn. When Ballots are tabulated, the City Clerk will segregate withdrawn Ballots from all other returned Ballots. The City Clerk will retain all withdrawn Ballots and will indicate on the face of such withdrawn Ballots that they have been withdrawn. If any Ballot has been withdrawn, the person withdrawing the Ballot may request a Duplicate Ballot. 4. Changes to Ballots In order to change the contents of a Ballot that has been submitted, the person who has signed that Ballot must (1) request that such Ballot be withdrawn, (2) request that a Duplicate Ballot be issued, and (3) return the Duplicate Ballot fully completed. Each of these steps must be completed according to the procedures set forth above. C. Tabulation of Ballots 1. Which Ballots Will Be Counted? Only Ballots which are completed and returned in compliance with these procedures will be counted. Ballots received by the City Clerk after the close of the deadline for return of Ballots will not be counted. Ballots which are not signed by the owner will not be counted. Ballots with no boxes marked, or with more than one box marked, will not be counted. Ballots withdrawn in accordance with these procedures will not be counted. The City will keep a record of each Proportional, Duplicate, or Provisional Ballot mailed or otherwise provided to an owner and will ensure that only one Ballot is tabulated for the Parcel (or for each owner in the case of Proportional Ballots). Provisional Ballots shall not be counted unless, by the deadline for returning Ballots, the City Clerk has received sufficient evidence of ownership as would have been required for the issuance of a Duplicate 6053814 Ballot. All Provisional Ballots that have been returned to the City Clerk shall be retained along with other Ballots so returned. 2. When and Where Ballots Will Be Tabulated The City Clerk will count the Ballots in the City Council Chambers at a date and time scheduled for such purpose by the City Clerk. Tabulation will be performed in view of such members of the public who choose to observe such tabulation. Ballots will not be removed from their Return Envelopes until tabulation begins. 3. How Ballots Will Be Tabulated Ballots may be counted by hand, by computer or by any other tabulating device. Each Ballot, other than a Proportional Ballot, will count as one vote. Proportional Ballots will be counted as a fraction of a vote, weighted in accordance with the respective ownership interests of each Proportional Ballot submitted. If one or more Proportional Ballots are returned for a Parcel and a non‐ Proportional Ballot is returned for the Parcel, the non‐Proportional Ballot will either be disregarded (if the same owner has returned a Proportional Ballot) or treated as a Proportional Ballot (if the same owner has not returned a Proportional Ballot). 4. Who Will Tabulate Ballots? Ballots will be tabulated by the City Clerk or some other impartial person designated by the City Council who does not have a vested interest in the outcome of the Election. The City Clerk or other designated person may be assisted by any of the staff and consultants of the City. 5. Results of Tabulation The property owners will be deemed to have approved the Storm Water Management Fee (including any associated inflation adjustment formula) if the number of votes cast in favor of the Storm Water Management Fee exceeds the number of votes cast in opposition to the Storm Water Management Fee. 6. Announcement of Tabulation The results of the tabulation will be announced at a meeting of the City Council and will be certified by resolution of the City Council. D. Resolution of Disputes In the event a question arises regarding whether the signer of a Ballot (or person on whose behalf a Ballot has been submitted) is an owner of the Parcel to which the Ballot applies, the City Clerk will make such determination from the last equalized secured property tax assessment roll and any evidence of ownership submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to ownership of property and her determination of ownership will be final and conclusive. 6053814 In the event a question arises regarding whether the signer of a Ballot is legally entitled to submit a Ballot on behalf of an owner, the City may rely on the statement on the Ballot signed under penalty of perjury and any evidence submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to whether the signer of the Ballot is an authorized representative of the owner and its determination will be final and conclusive. E. Confidentiality The City considers the vote contained on a Ballot (i.e. whether the box in support is checked or the box in opposition is checked) to be confidential, and will not disclose that fact with respect to any specific voter unless ordered to do so by a court of competent jurisdiction. Summary of Modifications to Storm Drain Blue Ribbon Committee Recommendations for Storm Drain Management Fee August 15, 2016 Recommended FY2018 Base Component Original SDBRC Recommendation ($000) Modified Recommendation ($000) Floodplain Management 95 101 Engineering 193 255 Storm Drain Water Quality Protection 1087 1,135 Storm Drain System Maintenance 1153 1,293 Emergency Response 116 119 Administrative Support 937 1,112 3581 4,015 Net Change 434 Recommended FY2018 Projects/Infrastructure Component Original SDBRC Recommendation ($000) Modified Recommendation ($000) Storm Drain Capital Improvement Projects 1351 1104 Debt Service for Past Capital Projects 947 947 Storm Drain System Repairs 500 400 Capital Program Engineering Support 160 177 Green Storm Water Infrastructure Projects 450 375 Incentive Projects 154 125 3562 3128 Net Change ‐434 TOTAL RECOMMENDED EXPENSES 7143 7143 Attachment B City of Palo Alto Proposed Storm Water Management Fee Financial Analysis I. General Description of Proposed Storm Water Management Fee A.Overview The proposed Storm Water Management Fee would have two components: 1)A Base Component 2)A Projects and Infrastructure Component The Base Component has been calculated based on the City’s anticipated ongoing costs for the engineering, maintenance, storm water quality protection, operation and administration of the City’s storm water system, including regulatory permit compliance. The Projects and Infrastructure Component has been calculated based on anticipated 15-year costs for the Storm Drain Capital Improvement Program (CIP) (which includes both major capacity upgrade projects and capital improvement repair and rehabilitation), Incentive Projects (IP), and Green Storm Water Infrastructure (GSI) Projects. B. Proposed Rates effective June 1, 2017 The Proposed Rate for the Storm Water Management Fee effective June 1, 2017 is: $13.65 per ERU (Equivalent Residential Unit) per month. This is comprised of: 1)Base Component of $7.48 per ERU per month and 2) Projects and Infrastructure Component of $6.17 per ERU per month. C. Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San Francisco-Oakland-San Jose CSMA, Attachment C published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. D. Duration 1) Base Component The Base Component would be charged monthly, beginning June 1, 2017, until terminated by the City Council. 2) Projects and Infrastructure Component The Projects and Infrastructure Component would be charged monthly, beginning June 1, 2017. Unless further extended by the voters, the Projects and Infrastructure Component would no longer be charged beginning June 1, 2032. E. Method of Collection and Calculated The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25, subject to the exemptions set forth in this Section E. As a general rule, ERU’s are assigned to each parcel subject to the fee on the following basis: Single-Family Residential Parcels: Lot Size ERU’s <6,000 sq.ft. 0.8 ERU 6,000 - 11,000 sq.ft. 1.0 ERU >11,000 sq.ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500 Sq. Ft. Assigned ERU’s are rounded to the nearest one-tenth of an ERU. Unimproved parcels are not subject to the Storm Water Management Fee, and the fee is not charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City’s storm drainage facilities. For a more complete description of the manner of collection and calculation of the Storm Water Management Fee, reference is made City of Palo Alto Utilities Rule and Regulation No. 25. F. Use of Funds Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: (A) Improving the quality of storm and surface water; (B) The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City’s public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. II. Cost Estimate The initial rate for the Storm Water Management Fee was calculated based upon the following proposed budget for FY2018: Base Component Floodplain Management $ 101,000 Engineering $ 255,000 Storm Water Quality Protection $1,135,000 Storm Drain System Maintenance $1,293,000 Emergency Response $ 119,000 Administrative Support $1,112,000 SUBTOTAL $4,015,000 Projects and Infrastructure Component Storm Drain Capital Improvements $1,104,000 Debt Service for Past Capital Projects $ 947,000 Storm Drain System Repairs $ 400,000 Capital Program Engineering Support $ 177,000 Green Storm Water Infrastructure Projects $ 375,000 Incentive Projects $ 125,000 SUBTOTAL $3,128.000 TOTAL PROPOSED BUDGET $7,143,000 Proposed Green Storm Water Infrastructure (GSI) funding has been calculated based on the estimated cost of preparation of a City of Palo Alto Green Storm Water Infrastructure Plan and GSI projects. GSI projects retain, infiltrate and/or treat storm water and include, but are not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. Incentive Project (IP) funding has been calculated based on estimated cost for financial incentives (such as rebates) that encourage private residents and commercial property owners to incorporate green infrastructure measures into their private property projects. Based on this budget, the Storm Water Management Fee must generate revenue of $6,920,000 in FY2018 in order to fund $7,143,000 in expenses (offset by $223,000 in anticipated other available funds). III. Calculation of Rate per ERU According to the City’s existing billing records, there are 42,250 served by the City’s storm drainage facilities. These ERU’s break down as follows: Single-Family Residential 15,717 ERU Commercial/Multi-Family Residential 19,055 ERU Industrial 5,197 ERU City-Owned Facilities 2,281 ERU The monthly rate per ERU for FY 2018 was calculated by dividing the amount of annual revenue necessary to fund the storm water management program ($6,920,000) by the total number of ERU’s 42,250 and dividing the result by 12 months per year. IV. Discussion of Rationale for Fee The Storm Water Management Fee is a property-related fee that is subject to the requirements of Article XIII D, Section 6 of the California Constitution (which was added to the Constitution in 1996 by the adoption of Proposition 218). The City imposes the Storm Water Management Fee in order to provide storm water management services to each parcel of real property that is subject to the Storm Water Management Fee. The purpose of the storm water management services is to accept storm and surface water from parcels in the City, and properly discharge or otherwise dispose of that water in an environmentally appropriate manner. These services reduce risks of flooding and impediment of access for parcels subject to the Storm Water Management Fee. The City’s system of storm drainage facilities operates as a unified system that serves all parcels receiving storm water management services. The proper operation of the system requires that the City maintain the quality of water discharged from the system and that the City mitigate the impacts of discharge from the storm drainage facilities to the San Francisco Bay and to natural streams and creeks in accordance with the requirements of the regional storm water discharge permit issued by the San Francisco Bay Regional Water Quality Control Board. Therefore, costs of operating the system can include costs associated with “green storm water infrastructure” facilities that retain, infiltrate and/or treat storm water (including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement). System costs can also include costs associated with programs that reduce water discharge from the system by providing financial incentives to property owners to implement storm water management best practices or install “green” improvements on their property. Parcels are charged based on the estimated impervious area on the parcel. Impervious area is used as a proxy for storm and surface water discharge because the improvement of parcels with impervious surfaces eliminates or retards the natural ability of unimproved land to absorb water into the soil mantle. Each ERU assigned to a parcel represents 2,500 sq. feet of impervious surface. City of Palo Alto Utilities Rule and Regulation No. 25 provides a mechanism by which a property owner can appeal the number of ERU’s assigned if they believe that the assigned number of ERU’s inaccurately reflects the impervious area of their parcel or improperly reflects their use of the storm water management services. V. Definitions. All terms used herein, if defined in City of Palo Alto Utilities Rule and Regulation No. 25, shall have the meaning therein defined. Exhibit “A” List of Expenses and Full‐time Equivalent (FTE) Staffing Used to Develop the Cost‐Basis for the Proposed Storm Water Management Fee 1. Base Component of Proposed Storm Water Management Fee (Cost figures based on assumed FY2018 Storm Drainage Fund budget) Base Component Overview Expense Category Annual Expenses # of Staff Positions Floodplain Management $ 101,000 0.49 FTE Engineering $ 255,000 1.37 FTE Storm Water Quality Protection $ 1,135,000 5.19 FTE Storm Drain System Maintenance $ 1,293,000 4.47 FTE Emergency Response $ 119,000 0.53 FTE Administrative Support $ 1,112,000 0.60 FTE TOTALS $ 4,015,000 12.65 FTE Key Base Component Staffing Senior Engineer Project Engineer 1/2‐ Time Manager Maintenance Operations 1/2 ‐ Time Manager Environmental Control Programs Associate Engineer 1/2‐ Time Environmental Specialist 1/2‐ Time Program Assistant II Heavy Equipment Operator – Lead Heavy Equipment Operator Electrician ‐Lead Industrial Waste Investigator Base Component Breakdown Floodplain Management Expenses for supplies, materials, and services for floodplain management activities (coordination with Santa Clara Valley Water District & San Francisquito Creek JPA, enforcement of FEMA‐based development regulations, etc.) Salaries and benefits for applicable PW Engineering Services staff Salary/Benefits Expenses = $95,000 Non‐Salary Expenses = $6,000 0.49 Full‐Time Equivalent Positions o Senior Engineer: 0.16 FTE o Project Engineer: 0.08 FTE o Engineering Tech III: 0.10 FTE o Engineering Tech III: 0.10 FTE o Engineering Tech III: 0.05 FTE Engineering Expenses for supplies, materials, and services for CIP projects (no capital project funding in Base Component) Salaries and benefits for applicable PW Engineering Services staff Salary/Benefits Expenses = $246,000 Non‐Salary Expenses = $9,000 1.37 Full‐Time Equivalent Positions o Senior Engineer: 0.30 FTE o Project Engineer: 0.65 FTE o Management Analyst: 0.10 FTE o Administrative Associate III: 0.10 FTE o Administrative Associate I: 0.10 FTE o Surveyor: 0.12 FTE Storm Water Quality Protection Expenses for supplies, materials, and services for storm water quality protection activities (site and facility inspections, public outreach, regulatory compliance and reporting, etc.) Annual payments to Santa Clara Valley Pollution Prevention Program and State Water Resources Control Board Salaries and benefits for applicable PW Engineering Services and PW Environmental Services staff Salary/Benefits Expenses = $785,000 Non‐Salary Expenses = $350,000 5.19 Full‐Time Equivalent Positions o Assistant Director, Environmental Svcs: 0.10 FTE o Watershed Protection Manager: 0.20 FTE o Senior Engineer: 0.10 FTE o Project Engineer: 0.10 FTE o Manager Environmental Control Programs: 0.50 FTE o Manager Environmental Control Programs: 0.20 FTE o Associate Engineer: 1.00 FTE o Associate Engineer: 0.19 FTE o Senior Industrial Waste investigator: 0.10 FTE o Industrial Waste Investigator: 0.80 FTE o Industrial Waste Investigator: 0.20 FTE o Industrial Waste Inspector: 0.15 FTE o Industrial Waste Inspector: 0.15 FTE o Industrial Waste Inspector: 0.10 FTE o Environmental Specialist: 0.50 FTE o Program Assistant II: 0.50 FTE o Program Assistant II: 0.10 FTE o Management Specialist (Intern): 0.20 FTE Storm Drain System Maintenance Expenses for supplies, materials, and services for maintenance and minor repairs to storm drain infrastructure (pipelines, manholes, storm drain inlets, pump stations, etc.) Salaries and benefits for storm drain maintenance staffing in PW Public Services Division (1/2‐time manager + 2‐person crew + miscellaneous support) Salary/Benefits Expenses = $718,000 Non‐Salary Expenses = $575,000 4.47 Full‐Time Equivalent Positions o Manager Maintenance Operations: 0.50 FTE o Assistant Director, Public Services: 0.05 FTE o Technologist: 0.30 FTE o Project Manager: 0.15 FTE o Heavy Equipment Operator – Lead: 0.90 FTE o Heavy Equipment Operator – Lead: 0.10 FTE o Heavy Equipment Operator: 0.70 FTE o Equipment Operator: 0.06 FTE o Equipment Operator: 0.36 FTE o Electrician – Lead: 1.00 FTE o Electrician: 0.10 FTE o Management Analyst: 0.10 FTE o Administrative Associate II: 0.15 FTE Emergency Response Expenses for supplies, materials, and services for response during flood emergencies Salaries and benefits for applicable PW Public Services staff Salary/Benefits Expenses = $118,000 Non‐Salary Expenses = $1,000 0.53 Full‐Time Equivalent Positions o Heavy Equipment Operator – Lead: 0.10 FTE o Heavy Equipment Operator – Lead: 0.05 FTE o Heavy Equipment Operator: 0.10 FTE o Heavy Equipment Operator: 0.10 FTE o Equipment Operator: 0.03 FTE o Equipment Operator: 0.09 FTE o Traffic Control Maintenance Worker: 0.06 FTE Administrative Support Allocated charges from other City departments (City Manager, City Attorney, Administrative Services, Information Technology, Utility Billing, etc.) Salaries and benefits for Storm Drainage Fund managers and accounting staff Salary/Benefits Expenses = $131,000 Non‐Salary Expenses (including allocated charges) = $981,000 0.60 Full‐Time Equivalent Positions o Assistant Director, Engineering Services: 0.15 FTE o Senior Engineer: 0.20 FTE o Senior Accountant: 0.10 FTE o Accountant: 0.05 FTE o Accounting Specialist: 0.10 FTE 2. Projects/Infrastructure Component of Proposed Storm Water Management Fee (Cost figures based on assumed FY2018 Storm Drainage Fund budget) Projects/Infrastructure Component Overview Expense Category Annual Expenses # of Staff Positions Storm Drain Capital Improvements $1,104,000 ‐‐‐ Debt Service for Past Capital Projects* $ 947,000 ‐‐‐ Storm Drain System Repairs $ 400,000 ‐‐‐ Capital Program Engineering Support $ 177,000 1.0 FTE Green Storm Water Infrastructure Projects $ 375,000 ‐‐‐ Incentive Projects $ 125,000 ‐‐‐ TOTALS $ 3,128,000 1.0 FTE * = Debt will be fully retired in FY2024, and funds will be available for work on capital projects subsequent to that date. Projects/Infrastructure Staffing • Engineer EXHIBIT “B” LIST OF STORM DRAIN CAPITAL IMPROVEMENTS USED TO DEVELOP THE COST- BASIS FOR THE PROJECTS/INFRASTRUCTURE COMPONENT OF THE PROPOSED STORM WATER MANAGEMENT FEE Project Name Location Cost ($000) 1. Loma Verde Ave (Louis to Sterling Canal) capacity upgrade Midtown $2,200 2. Corporation Way/E Bayshore Road Pump Station to Adobe Ck Baylands $2,420 3. W. Bayshore Rd to Adobe Ck capacity upgrade Palo Verde $1,390 4. W. Bayshore Rd Pump Station to Adobe Creek Palo Verde $1,040 5. E. Charleston Rd to Adobe Ck capacity upgrade Charleston Terrace $1,300 6. E. Meadow Cir connection to Adobe Ck PS E Meadow Circle $ 360 7. E. Meadow Dr to Adobe Ck PS capacity upgrade Ortega $ 400 8. Fabian Way capacity upgrade Fabian Way $ 580 9. Hamilton Ave (Center to Rhodes) capacity upgrade Duveneck-St Francis $3,440 10. Louis Rd (Embarcadero to Seale-Wooster) capacity upgrade Garland/Midtown $6,910 11. Louis Rd (Seale-Wooster Cnl to Matadero Ck) overflow pipe Midtown $1,560 12. Colorado Pump Station removal Midtown $ 430 13. Center Drive capacity upgrade Crescent Park $1,620 TOTAL $23,650 A map of the above-listed projects is included in this exhibit. Project costs were estimated based upon the best information currently available for the purpose of developing a reasonable and appropriate CIP budget. Final selection and sequencing of individual projects is subject to further study and analysis, such as analysis under the California Environmental Quality Act. HWY 10 1 W. Bays h o r e R o a d Lom a V e r d e A v e n u e Co l o r a d o A v e n u e Middlefield Road Ore g o n E x p r e s s w a y El Camino Real Ro a d Pa g e M i l l Alma Street Emerson Street Ch a n n i n g A v e n u e Emb a r c a d e r o R o a d 2. CORPORATION WAY ($2.4 MILLION) 9. HAMILTON AVE ($3.4 MILLION) 5. EAST CHARLESTON ROAD ($ 1.3 MILLION) 12. COLORADO PUMP STATION ($430 THOUSAND) 6. EAST MEADOW CIRCLE ($360 THOUSAND) 8. FABIAN WAY ($ 580 THOUSAND) 1. LOMA VERDE AVE. ($2.2 MILLION) 7. EAST MEADOW DRIVE ($400 THOUSAND) 13. CENTER DRIVE ($1.6 MILLION) 11. LOUIS ROAD (SEALE - WOOSTER CANAL) ($1.5 MILLION) 3. WEST BAYSHORE ROAD ($1.3 MILLION)10. LOUIS ROAD (EMBARCADERO ROAD - SEALE -WOOSTER) ($6.9 MILLION)4. WEST BAYSHORE ROAD PUMP STATION ($1 MILLION) This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0'3000' ProposedStorm DrainCapital ImprovementsFor Storm WaterManagement Fee (2016) CITY O F PALO A L TO IN C O R P O RAT E D C ALIFOR N I A P a l o A l t oT h e C i t y o f A P RIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto rhada, 2016-08-17 10:22:25Ballot Measure 2016 (\\cc-maps\gis$\gis\admin\Personal\Storm.mdb) City of Palo Alto (ID # 7235) City Council Staff Report Report Type: Action Items Meeting Date: 8/29/2016 City of Palo Alto Page 1 Summary Title: Comprehensive Plan EIR Scenarios 5 & 6 Title: Policy Discussion on Comprehensive Plan Update Environmental Impact Report Scenarios 5 & 6 (Continued from August 22, 2016) From: City Manager Lead Department: Planning and Community Environment RECOMMENDATION Staff recommends that the City Council review the policy parameters of Scenarios 5 and 6 proposed for analysis as part of the Comprehensive Plan Update Environmental Impact Report (EIR) and provide direction to staff regarding requested modifications. Based on the Council’s direction, staff will work with the City’s consultants to conduct an environmental analysis of the new EIR scenarios. The draft environmental analysis will be circulated for public review prior to preparation of a Final EIR. EXECUTIVE SUMMARY The City is the “lead agency” under the California Environmental Quality Act (CEQA) and must prepare and certify an Environmental Impact Report (EIR) to assess potential impacts of the Comprehensive Plan Update prior to approval of the Update. The EIR is being prepared in parallel with the Comprehensive Plan Update itself, and tests potential policy choices via the use of high level alternatives or “scenarios” which are analyzed at an equal level of detail. During their review of the Draft EIR, the City Council requested that the Draft EIR, which analyzes four scenarios, be supplemented with an analysis of a fifth and sixth scenario. The quantitative parameters of the fifth and sixth scenario (i.e. the projected population, housing, and jobs in 2030) were established by the City Council on May 16, 2016, however at a hearing on June 6, 2016, the Council ran out of time to weigh in on policy choices that should be reflected in each scenario. This evening’s agenda item will provide the City Council with an opportunity to define the policies and programs, zoning code amendments, infrastructure investments, sustainability measures, and mitigation/performance measures they would like to analyze as part of the new scenarios. Additional information is provided in the attached materials, including Attachment F City of Palo Alto Page 2 from the June 6, 2016 staff report, excerpts from the May 16, 2016 staff report, and mitigation measures included in the Draft EIR. BACKGROUND The City Council expressed their desire to add at least one new planning scenario to those in the Draft EIR on January 19, 2016 and adopted the following motion: A. Direct Staff to come to the City Council Retreat with a more definitive schedule of when the variety of issues discussed this evening will be scheduled for Council consideration; and B. Direct Staff to return to Council with the DEIR as well as a possible fifth scenario which lowers the jobs/housing ratio and the implications that will have on the timing and process of completing the Comprehensive Plan Update. On February 22, 2016, the City Council added to this direction with the following motion: Direct Staff to develop a “fifth scenario” for analysis in a supplement to the Draft Environmental Impact Report (DEIR) that: A. Adds the sustainability options from the current scenarios, which reduce impacts, including traffic, greenhouse gas impacts, noise, etc.; and B. Includes further mitigations along with prospective mitigation enforcement measures for a scenario that improves the quality of life in Palo Alto by mitigating the impacts of future growth and development; and C. Wherever possible, the scenario will use Palo Alto specific data; and D. Where possible, integrate the Sustainability Climate Action Plan (S/CAP) in the fifth scenario; and E. Evaluate mechanisms for regulating employment densities in existing buildings; and F. Evaluate lower General Office and R/D development than Scenario 2; and G. Evaluate transportation and parking regulation triggers if mitigation measures are failing or exceeding expectations. On May 16, 2016, the City Council provided direction on Scenarios 5 & 6 with the following motion: City of Palo Alto Page 3 Direct Staff to evaluate two variations of Scenario Number 5 including a performance based approach with policies and mitigation measures to limit the impacts of growth and other quality of life issues. Both Scenarios would include Staff recommended Sustainability and Climate Action Plan (S/CAP) elements: A. Option A from the Staff Report; and B. Option C from the Staff Report, incorporating 6,000 housing units; and C. Approve Amendment Number 5 to Contract Number C08125506 with Placeworks to add $423,814 for a total not to exceed $2,801,157 for completion of the Comprehensive Plan Update and associated EIR; and D. Amend the Fiscal Year 2016 Budget Appropriation Ordinance for the General Fund by: i. Increasing the Planning and Community Environment Department appropriation by $356,140; and ii. Decreasing the Budget Stabilization Reserve by $423,814. On June 6, 2016, the City Council ran out of time to provide additional guidance on the definition of the scenarios, continuing their discussion after adopting a motion to reopen the public comment period for the Comprehensive Plan Update Draft Environmental Impact Report (DEIR) for Scenarios 1-4, to run concurrently with the public comment period for Scenarios 5 and 6. Tonight’s agenda item has been scheduled to allow the City Council to continue the discussion they began on June 6, 2016 and to provide direction on the policy parameters of Scenarios 5 and 6. The quantitative parameters (i.e. the population, housing, and jobs numbers for 2030) were defined on May 16, 2016 as described in Attachment A. As the Council will recall from their earlier discussions, providing direction regarding parameters of scenarios proposed for analysis does not constitute direction or a commitment regarding components of the Comprehensive Plan Update itself. The Council will have opportunities to weigh in on policy parameters in the context of their review of the CAC’s draft land use element, and to provide final direction/decisions once the EIR is complete. NEXT STEPS Analysis of the new EIR scenarios is expected to take approximately 4-5 months, after which time the analysis will be circulated for public review and comment as a supplement to the Draft EIR. (Note: analysis of the sixth scenario is contingent on an additional amendment to the City of Palo Alto Page 4 consultant contract, which is currently being developed.) As requested by the City Council, additional comments on the Draft EIR will also be accepted during the public review period for the supplement. Following the public review period, the City will prepare formal written responses to all substantive comments received on the Draft EIR and on the analysis of the additional scenarios in the form of a Final EIR. The City Council is required to review and certify the FEIR prior to taking action on the Comprehensive Plan Update. Certification of the Final EIR and consideration of the Comprehensive Plan Update is currently scheduled for the second half of 2017. Concurrent with preparation and review of the additional analysis, the City Council will have the opportunity to review draft elements of the Comprehensive Plan Update as they are produced by the Citizens Advisory Committee (CAC). The City Council’s review and direction on the draft elements will determine the final form of the Comprehensive Plan Update that is considered for adoption and described in the Final EIR as the “preferred” scenario. Attachments: Attachment A: Summary of New Scenarios for Analysis in the Comp Plan EIR (Attachment F from June 6, 2016) (DOCX) Attachment B: Excerpt from CMR #6800 May 16, 2016 (DOC) Attachment C: Comp Plan Mitigation Measures (DOCX) Palo Alto Comprehensive Plan Update Summary of Additional Scenarios Proposed for Analysis in a Supplement to the Draft EIR May 23, 2016 This attachment summarizes the City Council’s direction to analyze additional scenarios in a supplement to the Draft Environmental Impact Report (EIR) on the City’s Comprehensive Plan Update prior to proceeding to a Final EIR. As described further below, two new scenarios would supplement those included in the Draft EIR as follows: Table 1. Summary of EIR Scenarios: Population & Employment Parameters (1) Net Change 2015-2030 (City of Palo Alto Only) Resulting Jobs/Housing Balance in 20303 Population/ Housing Non-Res Sq. Ft.2 Jobs 1. Business as Usual 6,600/2,720 3.3M 15,480 Jobs/Employed Residents Ratio of 3.20 2. Slowing Growth 6,600/2,720 3M 9,850 Jobs/Employed Residents Ratio of 3.04 3. Housing Tested I 8,435/3,545 3.5M 12,755 Jobs/Employed Residents Ratio of 3.03 4. Sustainability Tested I 10,455/4,420 4.M 15,480 Jobs/Employed Residents Ratio of 3.04 5. [NEW] Sustainability Tested II 8435/3,546 2.7M 8,868 Jobs/Employed Residents Ratio of 2.93 6. [NEW] Housing Tested II 13,737/6,000 2.7M 8,868 Jobs/Employed Residents Ratio of 2.71 (1) The scenarios also include different ideas for zoning/implementation actions, transportation investments, and sustainability measures as discussed further below. (2) This number includes 1.3M sq. ft. that has already been approved at the Stanford Medical Center. The balance of the new nonresidential square footage would be located in areas both inside and outside of the “monitored areas” referenced in Policy L-8 and Map L-6 in the Comp Plan and in areas both inside and outside of the area subject to the interim annual limit of 50,000 square feet new office/R&D space. (3) The number of employed residents in 2030 is estimated at approximately 48% of total population based on ABAG Projections 2013. The ratio of jobs to employed residents in this column assumes a 2014 base of 65,685 people and 95,460 jobs. Source: Palo Alto Department of Planning & Community Environment, May 2016 The City of Palo Alto has been working on an update to its Comprehensive Plan since 2008 and May 23, 2016 Summary of EIR Scenarios Page 2 published a Draft Environmental Impact Report (EIR) in February 2016 assessing four “scenarios” or alternatives at an equal level of detail, hoping to inform policy direction regarding the location and amount of growth desired by 2030, as well as policies and programs needed to mitigate the impacts of that growth. On January 19 and February 22, the City Council indicated their desire to analyze an additional scenario in a supplement to the Draft EIR and on May 16, the City Council provided basic parameters of two new scenarios (scenarios number 5 & 6), as shown in Table 1. The first new scenario, Scenario 5, Sustainability Tested II, proposes 10% fewer jobs than Scenario 2, Slowing Growth, and the same number of housing units as Scenario 3, Housing Tested I. This new scenario is intended to test the efficacy of mitigation and sustainability measures when applied to relatively slow growth over the 15 year planning period. The second new scenario, Scenario 6, Housing Tested II, proposes 10% fewer jobs than Scenario 2, Slowing Growth, and 36% more housing than Scenario 4, Sustainability I. This new scenario is intended to test policies and programs to accelerate the production of housing over the 15 year planning period, while applying mitigation and sustainability measures to address the impacts of growth. In both of the new scenarios, Comprehensive Plan programs and zoning changes would be developed to provide for a mix of housing for Palo Alto residents, including affordable housing, senior housing, housing for special needs populations, micro units, housing with preferences for members of the local workforce, and housing with reduced parking and traffic impacts, reduced air emissions, and reduced energy and water use when compared with conventional units. Housing locations and characteristics for each scenario are summarized in Table 2, below. Table 2. Summary of Housing-Related Policies & Programsa Summary of Housing Policies & & Programs Scenarios 1 2 3 4 5 6 Maintain All Existing Housing Sites √ √ √ Eliminate Housing Sites on San Antonio and South El Camino √ √ √ Increase residential densities on sites in Downtown, the California Ave Area and along El Camino Real √ √ √ √ Add new housing sites to the El Camino frontage of the Research Park and the Shopping Center √ √ Consider additional sites near SUMC or in western portion of the Research Park √ Convert some commercial development potential (FAR) to residential FAR √ √ √ √ √ Remove constraints on the addition of Accessory Dwelling Units √ √ √ √ √ May 23, 2016 Summary of EIR Scenarios Page 3 Summary of Housing Policies & & Programs Scenarios 1 2 3 4 5 6 Adopt policies to avoid the loss of existing housing and displacement √ √ √ √ √ Adopt regulations and incentives to create smaller units √ √ √ √ √ (a)This list is not a complete listing of possible policy and zoning changes, but includes major initiatives required to reach the housing projections of each scenario. There is some overlap between these and the zoning changes summarized later. Source: Palo Alto Department of Planning & Community Environment, May 2016 Brief Description of the Six Scenarios 1. “Business As Usual” – the “business as usual” scenario shows the results if the City continued to operate under the existing Comprehensive Plan with no changes to goals, policies and programs. Any new housing built would be constructed under existing zoning and no innovations in housing or new approaches to address the high cost of housing would be explored. No new growth management measures are anticipated, and any transit or traffic improvements would come from the existing infrastructure plan for the City. This scenario uses a local forecast of housing growth based on the City’s past performance (a long term average of about 150-160 new dwelling units per year), and ABAG’s 2013 projection of job growth. 2. Scenario Two, or the “Growth Slowed” Scenario, would slow the pace of job growth when compared with Scenario One by moderating the pace of office/R&D development throughout the city. Scenario Two would also ensure that the modest amount of housing growth expected under Scenario One would be built-out as small units and other housing types appropriate for seniors and the Palo Alto workforce. Transportation investments in this scenario would include implementation of the County’s expressway plan. 3. Scenario Three, or the “Housing Tested I” Scenario, would implement a growth management regime similar to the interim annual limit on office/R&D adopted by the City Council in 2015 for the fastest changing areas of the City and would eliminate housing sites along San Antonio and South El Camino. In place of these housing sites, Scenario 3 would increase housing densities on other housing sites Downtown, near California Avenue, and in other locations in the City close to transit and services. Policies, regulations, and incentives would be designed to ensure smaller units for the working professional and senior populations of the City. Transportation investments would include grade separating the Caltrain crossings at Meadow and Charleston by placing the railroad tracks in a trench. May 23, 2016 Summary of EIR Scenarios Page 4 4. Scenario Four, or the “Sustainability Tested I” Scenario, assumes the most growth in housing and employment, consistent with ABAG projections. Rather than moderating the pace of development, this scenario would seek to limit the impacts of development. Housing sites along San Antonio and South El Camino would be eliminated and replaced by both increased densities on other housing sites and by the addition of new sites along the El Camino Real frontage of the Stanford Research Park and the Stanford Shopping Center. Potential policies and regulations would be enacted to advance sustainability objectives, including free transit passes for residents in transit-served areas, achieving LEED platinum certification for new development, maximizing local solar energy production, foregoing new natural gas hookups, and utilizing drought- tolerant landscaping. Transportation investments would include grade separating the Caltrain crossings at Meadow and Charleston by placing the railroad tracks in a trench, and incorporating mix flow bus rapid transit on El Camino Real (with curbside stations and queue jumping for transit vehicles). 5. Scenario Five, or the “Sustainability Tested II” Scenario, would implement a growth management program to limit the pace of office/R&D development and convert some commercial development potential (Floor Area Ratio or FAR) to residential FAR in Downtown and the California Avenue area. Scenario 5 would eliminate housing sites along San Antonio and South El Camino and in place of these sites, would increase housing densities on sites Downtown and in the California Avenue area close to transit and services. Policies, regulations, and incentives would be designed to ensure smaller units for the working professional and senior populations of the City. Potential policies and regulations would be enacted to advance sustainability objectives, including free transit passes for residents in transit-served areas, achieving LEED platinum certification for new development, maximizing local solar energy production, foregoing new natural gas hookups, and utilizing drought-tolerant landscaping. Transportation investments would include grade separating the Caltrain crossings at Meadow and Charleston by placing the railroad tracks in a trench. 6. Scenario Six, or the “Housing Tested II” Scenario, would also implement a growth management program to limit the pace of office/R&D development and would convert some commercial development potential (Floor Area Ratio or FAR) to residential FAR in Downtown, the California Avenue area, and along the El Camino Real corridor. Scenario Six would eliminate housing sites along San Antonio and South El Camino and in place of these sites, would both increase housing densities in other areas of the City close to transit and services, and add new housing sites along the El Camino Real frontage of the Stanford Research Park and the Stanford Shopping Center. Additional housing sites in the Research Park could also be considered. Policies, regulations, and incentives would be designed to ensure smaller units for the working professional and senior populations of the City. Potential policies and regulations would be enacted to advance sustainability objectives, including free transit passes for residents in transit-served May 23, 2016 Summary of EIR Scenarios Page 5 areas, achieving LEED platinum certification for new development, maximizing local solar energy production, foregoing new natural gas hookups, and utilizing drought- tolerant landscaping. Transportation investments would include grade separating the Caltrain crossings at Meadow and Charleston by placing the railroad tracks in a trench, and incorporating mix flow bus rapid transit on El Camino Real (with curbside stations and queue jumping for transit vehicles). Under all scenarios, goals and policies of the Comprehensive Plan Update will be implemented through programs, some of which will support specific changes in the City’s zoning ordinance. The four EIR scenarios recognize this fact by suggesting and evaluating zoning code amendments that could accompany the Comp Plan Update. These suggested amendments are not meant to be prescriptive, but generally outline actions that could be taken to implement the policy parameters of each scenario. Similarly, the evaluation of Scenarios 5 & 6 can test a variety of zoning amendments to achieve the population/housing and employment/square footage numbers included in Table 1. Suggestions are included in Table 3, below. Table 3. Zoning Code Amendments for the EIR Scenarios Proposed Zoning Code Amendmentsa Scenarios 1 2 3 4 5a 6a Planned Community (PC) zoning district provisions would be reformed. √ √ √ √ √ √ Strategies to preserve retail would be enhanced for the city’s neighborhoods. √ √ √ √ √ √ Incentives would be considered for small lot consolidation along El Camino Real. √ √ √ √ √ √ A Conditional Use Permit (CUP) would be required for new office and R&D uses in order to regulate employment densities. √ √ √ An alternate mechanism would be explored for moderating employment densities, either through regulation or revenue collection. √ √ Allowable commercial densities would be reduced and replaced with residential densities. √ √ √ √ √ Modest exceptions to the City’s 50-foot height limit would be permitted for projects with ground floor retail and residences above. √ √ √ Allowable residential densities would be increased downtown and near California Avenue, possibly by adding the PTODb zoning designation to downtown and streamlining the permitting process to allow for residential development in the PTOD zone by right. Another possibility would be to eliminate maximum dwelling unit densities and use minimum densities and FAR to encourage more, smaller units. √ √ √ √ May 23, 2016 Summary of EIR Scenarios Page 6 Proposed Zoning Code Amendmentsa Scenarios 1 2 3 4 5a 6a Allowable residential densities would be increased on the El Camino Corridor, possibly by adding the PTODb zoning designation to pedestrian “nodes” along the corridor with modified regulations to encourage use of the designation. Another possibility would be to eliminate maximum dwelling unit densities and use minimum densities and FAR to encourage more, smaller units. √ √ Mitigation and sustainability measures would be adopted to minimize impacts of new market rate housing and new non-residential development by requiring mitigation, monitoring, and enforcement. √ √ (a)The suggested zoning changes listed here do not include all of the sustainability measures or mitigation measures which could be applied to the scenarios. (b) The Pedestrian and Transit-Oriented Development (PTOD) combining zoning district is intended to allow higher density residential dwellings on commercial, industrial, and multi-family parcels within a walkable distance of Caltrain stations, while protecting low density residential parcels and parcels with historical resources. Source: Comp Plan Update Draft EIR, February 2016 and Palo Alto Department of Planning & Community Environment, May 2016 The Comprehensive Plan Update will identify infrastructure investments expected to occur over the next 15 years to the extent feasible and will rely on the City’s adopted infrastructure plan as a base document. The planning scenarios evaluated in the program-level EIR provide an opportunity to evaluate other potential transportation infrastructure projects, and these are included in Table 4, below. Table 4. Infrastructure Investments for the EIR Scenarios Summary of Infrastructure Investmentsa Scenarios 1 2 3 4 5 6 New Public Safety Building √ √ √ √ √ √ Bicycle Bridge over US 101 √ √ √ √ √ √ Bicycle/Pedestrian Plan Implementation Projects √ √ √ √ √ √ Byxbee Park √ √ √ √ √ √ California Avenue Parking Garage √ √ √ √ √ √ Downtown Parking Garage √ √ √ √ √ √ Fire Stations √ √ √ √ √ √ County Expressway Plan Implementation √ Grade separation of Caltrain in a trench below Charleston and Meadow; other improvements along the corridor. √ √ √ √ Bus Rapid Transit on El Camino Real in mixed-flow lanes with the addition of queue jumping and curbside stations. √ √ (a)This list is not a complete listing of the City’s infrastructure plan, but includes those investments highlighted in Draft EIR Scenarios 1-4 as well as others that may be appropriate for highlighting in Scenarios 5&6. There may be some overlap between the suggested investments listed here and the sustainability measures and May 23, 2016 Summary of EIR Scenarios Page 7 performance/mitigation measures referenced later. Source: Comp Plan Update Draft EIR, February 2016 and Palo Alto Department of Planning & Community Environment, May 2016 On April 18, 2016, the City Council indicated their support for the draft SCAP goal of reducing GHG Emissions 80% below 1990 levels by 2030 (twenty years ahead of the State’s goal) and requested clarity on how the Comp Plan Update and the SCAP will be integrated. The two plans are intended to be coordinated and complimentary, and while SCAP principles and strategies have not been fully defined as of yet, Table 5 acknowledges the relationship between the two plans, and indicates some of the sustainability measures that are common to both for evaluation as part of the EIR scenarios. Table 5. Sustainability Measures for the EIR Scenarios Summary of Sustainability Measuresa Scenarios 1 2 3 4 5 6 Mobility Paid transit passes for employees in workplaces with over 50 employees (portion of SCAP Strategy F-INC- 1) √ √ √ √ √ √ Employer incentives for carpooling and bicycling (SCAP Strategy F-FAC-3.4) √ √ √ √ √ Unbundled parking costs for multi-family units (portion of SCAP Strategy T-INC-2) √ √ √ √ Parking charge program for existing workplaces with over 50 employees (portion of SCAP Strategy T-INC- 2) √ √ √ Paid parking in Downtown and California Avenue areas (portion of SCAP Strategy T-INC-2) √ √ √ Free transit passes for all Palo Alto residents in transit-accessible areas (portion of SCAP Strategy F- INC-1) √ √ √ Adoption of the SCAP goal of a 80% reduction in GHG emissions by 2030 and alignment of the Comprehensive Plan Update with SCAP principles. Inclusion of Comprehensive Plan policies and programs supportive of the refinement and furtherance of SCAP strategies. √ √ (a)The suggested sustainability measures listed here do not include every strategy from the draft SCAP, which is still a work in progress. This list also does not include mitigation measures which are listed separately below, even though many address topics related to sustainability (for example, transportation mitigation to limit and off-set new trips). Source: Comp Plan Update Draft EIR, February 2016; Draft SCAP, April 2016, and Palo Alto Department of Planning & Community Environment, May 2016 All of the EIR scenarios will require mitigation measures to address significant environmental impacts and consistent with the Council’s direction, these will be analyzed as part of Scenarios 5 and 6. For example, the analysis will assess the effectiveness of Mitigation Measure May 23, 2016 Summary of EIR Scenarios Page 8 TRANS1a, which establishes a framework for imposing a “no net new trips” requirement on market rate housing, office/R&D development, and other uses. The measure reads: TRANS-1a: Adopt a programmatic approach to reducing traffic with the goal of achieving no net increase in peak period motor vehicle trips from new development, with an exception for uses that directly contribute to the neighborhood character and diversity of Palo Alto (such as ground floor retail and below market rate housing). The program should, at a minimum: Require new development projects to prepare and implement a Transportation Demand Management (TDM) Plan to achieve the following reduction in peak period motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category. These reductions are deemed aggressive, yet feasible, for the districts indicated. o 45 percent reduction in the Downtown district o 35 percent reduction in the California Avenue area o 30 percent reduction in the Stanford Research Park o 30 percent reduction in the El Camino Real Corridor o 20 percent reduction in other areas of the city TDM Plans must be approved by the City and monitored by the property owner on an annual basis. The Plans must contain enforcement mechanisms or penalties that accrue if targets are not met. Require new development projects to offset remaining peak period motor vehicle trips through one of the following methods: o By directly contracting with another property owner or organization to reduce trips generated from another site; or o By paying an annual fee to the City for use in reducing motor vehicle trips to the extent feasible through the provision of transit services, carpool/rideshare incentives, bicycle lanes, and other similar programs and improvements. A full list of EIR mitigation measures needed for Scenarios 2-4 is included in the Executive Summary (Chapter 1) of the Draft EIR and potential modifications or additions to this list will be considered during the analysis of Scenarios 5-6. Next Steps Once the Draft EIR comment period has concluded and final direction on the new scenarios is provided, staff will post written comments on the website and make them available to the Council, the Planning & Transportation Commission, and the public. Staff will also work with the City’s consultants, Placeworks, to modify the scope of work included in the contract amendment approved on May 16, 2016 to allow for analysis of a sixth scenario. (The May 23, 2016 Summary of EIR Scenarios Page 9 amendment assumed only five scenarios.) Some efficiencies may be possible given that the new scenario five is very similar to those already analyzed in the Draft EIR, but it’s expected that an additional contract amendment will be required. Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 1 The following discussion addresses five characteristics of the Fifth Scenario consistent with this motion: (1) Net change in employment & non-residential development 2015-2030; (2) Net change in population and housing 2015-2030; (3) Potential zoning changes to accomplish these levels of development; (4) Infrastructure investments; (5) Potential sustainability measures to reduce impacts; and (6) Other potential performance or mitigation measures to address the impacts of development. The EIR will assess the impacts of the scenario, including the level of growth assumed as well as the principal investments and policy parameters that are articulated as part of the scenario. The proposed contract amendment in Attachment A provides for an analysis of the scenario with and without mitigation measures and other performance measures or strategies to reduce or eliminate physical impacts and preserve or improve quality of life. 1. Jobs & Sq. Ft. The City Council has articulated their desire for lower office/R&D development and employment than assumed in Scenario 2 and the options presented in Table 2, above, suggest or 10% fewer jobs and square footage than in Scenario 2 (i.e. a total of 8,868 new jobs and 2.8M new sq. ft.). With this projection of future job growth, Palo Alto would see the 2,400 jobs anticipated as part of the SUMC as well as an average of 431 jobs per year over the 15 year life of the Comp Plan. This seems low given the amount of land zoned for non-residential uses and existing building space in use for employment-generating uses in the City. With the projected increase in new square footage, Palo Alto would see completion of the 1.3M sq. ft. approved as part of the SUMC project, plus an average of 93,000 sq. ft. in additional non- residential square footage per year. New non-residential square footage in areas shown on Comp Plan Map L-6 are subject to the square footage cap in Comp Plan Policy L-8, and new office/R&D square footage would be limited to 50,000 square feet in areas subject to the City’s interim annual limit on Office/R&D uses if this program were continued after the two-year trial. [Note that new jobs and new non-residential square footage are not proportionally related because new jobs can be added in existing as well as new building space. Generally, the rate of job growth and employment densities change cyclically, with more jobs and higher densities in good economic times, and fewer jobs in economic downturns. See the Zoning section below for a discussion of regulating employment densities.] 2. Population & Housing A majority of the City Council expressed their desire to pursue removal of housing sites along San Antonio Road and South El Camino Real, and replace those with higher residential densities on sites in Downtown and the California Avenue area. This would result in housing and Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 2 population projections consistent with Scenario 3, which is consistent with Option A in Table 2, above. The Council did not weigh-in on whether they would be interested in exploring higher residential densities and new housing sites in “pedestrian nodes” along the El Camino Real corridor. This is an idea advanced in Scenario 4 and reflected to varying degrees in Option B and C above, which also assume rezoning to convert non-residential density (floor area ratio or FAR) to residential density in some areas of the City. (See below for more on potential zoning changes for evaluation as part of Scenario 5.) At the Council’s discussions about Scenario 5 (February 22) and housing policies generally (March 21), the City Council expressed its interest in stimulating workforce housing (i.e. housing for teachers, fire fighters, and others who work in Palo Alto) and testing the idea of micro-units with reduced parking and other sustainability measures (bike share/car share, net zero energy, all electric buildings, etc.). These and other housing types (accessory dwelling units, multifamily affordable units, cohousing, etc.) can be facilitated via changes to the City’s zoning regulations and/or use of the City’s Below Market Rate (BMR) housing program and Council has requested that staff consider actions that might be taken before the Comprehensive Plan Update. 3. Zoning Changes Goals and policies of the Comprehensive Plan Update will be implemented through programs, some of which will support specific changes in the City’s zoning ordinance. The four EIR scenarios recognize this fact by suggesting and evaluating zoning code amendments that could accompany the Comp Plan Update. These suggested amendments are not meant to be prescriptive, but generally outline actions that could be taken to implement the policy parameters of each scenario. Similarly, the evaluation of Scenario 5 can test a variety of zoning amendments to achieve the population/housing and employment/square footage numbers discussed above. Suggestions are included in Table 4, below. City Council input on potential additions and subtractions for Scenario 5 would be helpful. Table 4. Possible Zoning Code Amendments for Scenarios 5 Proposed Zoning Code Amendmentsa Scenarios 1 2 3 4 5a Planned Community (PC) zoning district provisions would be reformed. √ √ √ √ √ Strategies to preserve retail would be enhanced for the city’s neighborhoods. √ √ √ √ √ Incentives would be considered for small lot consolidation along El Camino Real. √ √ √ √ √ A Conditional Use Permit (CUP) would be required for new office and R&D uses in order to regulate employment √ √ √ Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 3 Proposed Zoning Code Amendmentsa Scenarios 1 2 3 4 5a densities. An alternate mechanism would be explored for moderating employment densities, either through regulation or revenue collection (See Discussion below.) √ Allowable commercial densities in the Downtown (CD zoning District) would be reduced and replaced with residential densities. √ √ √ √ In the Neighborhood Commercial (CN) and Service Commercial (CS) districts, non-retail portions of allowable commercial floor area ratios (FARs) would be reduced and replaced with residential use. √ √ √ In the Community Commercial 2 (CC-2) district, the allowable 2.0 FAR would be reduced to an FAR of 1.5 near California Avenue. √ √ In the Community Commercial 2 (CC-2) district, commercial FAR would be somewhat reduced and replaced with residential FAR. √ Modest exceptions to the City’s 50-foot height limit would be permitted for residential uses only (including projects with ground floor retail and residences above). √ √ √ Allowable residential densities would be increased downtown, possibly by adding the PTODb zoning designation to downtown and streamlining the permitting process to allow for residential development in the PTOD zone by right. √ √ √ Allowable residential densities would be increased on the El Camino Corridor, possibly by adding the PTODb zoning designation to pedestrian “nodes” along the corridor with modified regulations to encourage use of the designation. √ √ Performance-based zoning strategies would be adopted to minimize impacts of new market rate housing and new non- residential development by requiring mitigation, monitoring, and enforcement. Code changes could also address housing types and preferences. √ (a)The suggested zoning changes listed here do not include all of the sustainability measures or mitigation measures which are listed separately below. (b) The Pedestrian and Transit-Oriented Development (PTOD) combining zoning district is intended to allow higher density residential dwellings on commercial, industrial, and multi-family parcels within a walkable distance of Caltrain stations, while protecting low density residential parcels and parcels with historical resources. Source: Comp Plan Update Draft EIR, February 2016 and Palo Alto Department of Planning & Community Environment, April 2016 The City Council requested staff evaluate mechanisms for regulating employment densities and this concept was originally evaluated as part of EIR scenarios 2-4 by assuming a Conditional Use Permit (CUP) would be required for new office/R&D development, allowing the City to impose a Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 4 condition to impose a limit of 250 sq. ft. per worker or something similar. This approach would address the issue prospectively (i.e. on a going forward basis as new uses are approved), and would not address some Councilmembers’ interests in regulating employment densities in existing uses. It would also create enforcement challenges for this City, likely necessitating additional enforcement staff as the number of new uses subject to employment density conditions increases over time. To regulate employment densities in existing uses would be more difficult. In general, there are a range of possible methods to regulate employment density1, including: Building Code regulations. The Building Code contains maximum occupancy densities. These densities are based primarily on ensuring safe egress in case of fire or other disaster. Occupancy densities vary by use and the occupancy density for business and industrial uses are 100 gross square feet per occupant. The Building Code contains uniform standards and to alter these standards the City must make local “climactic, geographical or topographical” findings. Palo Alto has an existing permitting scheme called “use and occupancy which could provide a practical enforcement mechanism for either building permit occupancy limits or related regulatory “use” requirements discussed below. Zoning – permitted uses. Like most cities Palo alto’s zooning categories currently do not contain occupancy limits. While posing some practical enforcement challenges, it is legally possible to incorporate occupancy limits into either permitted or conditionally permitted use classifications (see below). Zoning – conditional use permits. It is possible to allow a base level of zoning density as a matter of right and require some form of discretionary permits (such as a conditional use permit) for increased density. Zoning – performance based zoning. This is a relatively new concept which specifies the goals (i.e. number of jobs, houses, car trips, etc.) and allows the applicant to propose a qualifying building. See http://www.citylab.com/housing/2014/08/braving-the-new- world-of-performance-based-zoning/375926/. Zoning – transportation demand management strategies. Since concerns about employee density is generally tied to traffic impacts, many cities attempt to regulate the direct traffic impacts. Transportation demand management (TDM) programs can be structured in a variety of ways, including payment of impact fees (supported by a nexus study linking high employment densities to traffic impacts) and mandatory participation in the newly established TMA. While the primary focus of TDM strategies is to reduce 1 Establishing occupancy limits for housing units, restricting housing based on school impacts, and limiting development of housing units in general is legally challenging. The State Housing and Community Development Department (HCD), the Building Industry Association (BIA) and affordable housing advocates aggressively monitor such restrictions, and litigation would be very likely in the current housing environment. Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 5 Single Occupancy Vehicle (SOV) trips of new development, many programs also have some incidental benefit of reducing SOV trips of existing development (i.e. establishment of shuttles that can be used by other neighboring businesses). Development Agreements. These allow more customized parcel specific regulations. Head count tax/Impact Fee. Most of the zoning methods regulate new development. It is more difficult to regulate existing businesses. One way to regulate existing businesses is to set a head count tax at a level designed to disincentive density. 4. Infrastructure Investments The Comprehensive Plan Update will identify infrastructure investments expected to occur over the next 15 years to the extent feasible and will rely on the City’s adopted infrastructure plan as a base document. The planning scenarios evaluated in the program-level EIR provide an opportunity to evaluate other potential transportation infrastructure projects, and these are included in Table 5, below. City Council input on potential additions and subtractions for Scenario 5 would be appreciated. Table 5. Possible Infrastructure Investments for Scenario 5 Summary of Infrastructure Investmentsa Scenarios 1 2 3 4 5a New Public Safety Building √ √ √ √ √ Bicycle Bridge over US 101 √ √ √ √ √ Bicycle/Pedestrian Plan Implementation Projects √ √ √ √ √ Byxbee Park √ √ √ √ √ California Avenue Parking Garage √ √ √ √ √ Downtown Parking Garage √ √ √ √ √ Fire Stations √ √ √ √ √ County Expressway Plan Implementation √ Grade separation of Caltrain in a trench below Charleston and Meadow; other improvements along the corridor. √ √ √ Bus Rapid Transit on El Camino Real in mixed-flow lanes with the addition of queue jumping and curbside stations. √ √ (a)This list is not a complete listing of the City’s infrastructure plan, but includes those investments highlighted in Draft EIR Scenarios 1-4 as well as others that may be appropriate for highlighting in Scenario 5. There may be some overlap between the suggested investments listed here and the sustainability measures and performance/mitigation measures referenced later. Source: Comp Plan Update Draft EIR, February 2016 and Palo Alto Department of Planning & Community Environment, April 2016 5. Sustainability Measures On April 18, 2016, the City Council indicated their support for the draft SCAP goal of reducing GHG Emissions 80% below 1990 levels by 2030 (twenty years ahead of the State’s goal) and requested clarity on how the Comp Plan Update and the SCAP will be integrated. As noted earlier, a Sustainability subcommittee of the Comp Plan CAC is assisting with this effort to ensure that each element of the Comp Plan Update includes policies and programs that are Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 6 supportive of the SCAP goal and consistent with its principles and strategies. At the end of the day, the two plans are intended to be coordinated and complimentary. Also, by incorporating the SCAP by reference, the Comp Plan will indicate the City’s commitment to the plan, yet still allow it to be updated as needed over time without the need for a Comprehensive Plan amendment. While SCAP principles and strategies have not been fully defined as of yet, Table 6 acknowledges the relationship between the two plans. Table 6. Possible Sustainability Measures for Scenarios 5 Summary of Sustainability Measuresa Scenarios 1 2 3 4 5a Mobility Paid transit passes for employees in workplaces with over 50 employees (portion of SCAP Strategy F-INC-1) √ √ √ √ √ Employer incentives for carpooling and bicycling (SCAP Strategy F-FAC-3.4) √ √ √ √ Unbundled parking costs for multi-family units (portion of SCAP Strategy T-INC-2) √ √ √ Parking charge program for existing workplaces with over 50 employees (portion of SCAP Strategy T-INC-2) √ √ Paid parking in Downtown and California Avenue areas (portion of SCAP Strategy T-INC-2) √ √ Free transit passes for all Palo Alto residents in transit- accessible areas (portion of SCAP Strategy F-INC-1) √ √ Adoption of the SCAP goal of a 80% reduction in GHG emissions by 2030 and alignment of the Comprehensive Plan Update with SCAP principles. Inclusion of Comprehensive Plan policies and programs that are supportive of the refinement and furtherance of SCAP strategies. √ (a)The suggested sustainability measures listed here do not include every strategy from the draft SCAP, which is still a work in progress. This list also does not include mitigation measures which are listed separately below, even though many address topics related to sustainability (for example, transportation mitigation to limit and off-set new trips). Source: Comp Plan Update Draft EIR, February 2016; Draft SCAP, April 2016, and Palo Alto Department of Planning & Community Environment, April 2016 6. Performance/Mitigation Measures All of the EIR scenarios will require mitigation measures to address significant environmental impacts and these can be the source of performance measures analyzed as part of Scenario 5. For example, Mitigation Measure TRANS1a, establishes a framework for imposing a “no net new trips” requirement on market rate housing, office/R&D development, and other uses. The measure reads: Excerpt from May 16, 2016 Staff Report (CMR#6800) Page 7 TRANS-1a: Adopt a programmatic approach to reducing traffic with the goal of achieving no net increase in peak period motor vehicle trips from new development, with an exception for uses that directly contribute to the neighborhood character and diversity of Palo Alto (such as ground floor retail and below market rate housing). The program should, at a minimum: Require new development projects to prepare and implement a Transportation Demand Management (TDM) Plan to achieve the following reduction in peak period motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category. These reductions are deemed aggressive, yet feasible, for the districts indicated. o 45 percent reduction in the Downtown district o 35 percent reduction in the California Avenue area o 30 percent reduction in the Stanford Research Park o 30 percent reduction in the El Camino Real Corridor o 20 percent reduction in other areas of the city TDM Plans must be approved by the City and monitored by the property owner on an annual basis. The Plans must contain enforcement mechanisms or penalties that accrue if targets are not met. Require new development projects to offset remaining peak period motor vehicle trips through one of the following methods: o By directly contracting with another property owner or organization to reduce trips generated from another site; or o By paying an annual fee to the City for use in reducing motor vehicle trips to the extent feasible through the provision of transit services, carpool/rideshare incentives, bicycle lanes, and other similar programs and improvements. A full list of EIR mitigation measures needed for Scenarios 2-4 is included in Attachment B. The analysis of Scenario 5 will determine whether these or other measures are required for Scenario 5, however the City Council’s initial input on potential additions and subtractions for inclusion as part of Scenario 5 would be appreciated. P L A C E W O R K S 1 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures Aesthetics and Visual Resources AES-1: The following policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that future development under Scenarios 3 and 4 would not degrade the visual character or quality of the area: Policy: Promote high quality, creative design, and site planning that is compatible with surrounding development and public spaces. Policy: Preserve the character of residential neighborhoods by encouraging new or remodeled structures to be compatible with the neighborhood and adjacent structures. Policy: Maintain and enhance the University/Downtown area as the central business district of the City, with a mix of commercial, civic, cultural, recreational, and residential uses. Promote quality design that recognizes the regional and historic importance of the area and reinforces its pedestrian character. Program: Review and revise as needed the Downtown, El Camino Real, and South of El Camino Real Design Guidelines to support and enhance the existing visual character of these neighborhoods with building forms and massing that relate to the street and the pedestrian, whether through traditional architectural forms or innovative new designs. Program: In areas of the City having a historic or consistent design character, design new development to maintain and support the existing character. AES-4: The City shall develop an ordinance that will require development projects of a certain size or location to prepare an analysis of potential shade/shadow impacts. The ordinance shall focus on potential impacts to public open spaces (other than public streets and adjacent sidewalks) between 9:00 a.m. and 3:00 p.m. from September 21 to March 21. Projects that are shown to shadow open spaces during these times shall mitigate these impacts through building and site design features. Air Quality AIR-1: The policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that it is consistent with the 2010 Bay Area Clean Air Plan: Policy: Make land use decisions that encourage walking, bicycling, and public transit use. Policy: Reduce emission of particulates from wood burning stoves, construction activity, automobiles, and other sources. Program: Locate higher density development near transit corridors and near multimodal transit stations. Support regional, State, and federal programs that improve air quality in the Bay Area. Program: Encourage infill, redevelopment, and re-use of vacant or underutilized parcels employing minimum density requirements that are appropriate to support transit, bicycling, and walking. Program: Promote mixed-use development to provide housing and commercial services near employment centers, thereby reducing the necessity of driving. AIR-2a: As part of the City’s development approval process, the City shall require applicants for future development projects to comply with the current BAAQMD basic control measures for reducing construction emissions of PM10 (Table 8-1, Basic Construction Mitigation Measures Recommended for All Proposed Projects, of the BAAQMD CEQA Guidelines). AIR-2b: Prior to issuance of construction permits, development project applicants that are subject to CEQA and have the potential to exceed the BAAQMD screening-criteria listed in the BAAQMD CEQA Guidelines shall prepare and submit to the City of Palo Alto a technical assessment evaluating potential project construction-related air quality impacts. The evaluation shall be prepared in conformance with BAAQMD methodology in assessing air quality impacts. If construction-related criteria air pollutants are determined to have the potential to exceed the 2 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures BAAQMD thresholds of significance, as identified in the BAAQMD CEQA Guidelines, the City of Palo Alto shall require that applicants for new development projects incorporate mitigation measures (Table 8-2, Additional Construction Mitigation Measures Recommended for Projects with Construction Emissions Above the Threshold, of the BAAQMD CEQA Guidelines or applicable construction mitigation measures subsequently approved by BAAQMD) to reduce air pollutant emissions during construction activities to below these thresholds. These identified measures shall be incorporated into all appropriate construction documents (e.g., construction management plans) submitted to the City and shall be verified by the City’s Planning and Community Environment Department. AIR-2c: Prior to issuance of construction permits, development project applicants that are subject to CEQA and have the potential to exceed the BAAQMD screening-criteria listed in the BAAQMD CEQA Guidelines shall prepare and submit to the City of Palo Alto a technical assessment evaluating potential project operation phase-related air quality impacts. The evaluation shall be prepared in conformance with BAAQMD methodology in assessing air quality impacts. If operational-related criteria air pollutants are determined to have the potential to exceed the BAAQMD thresholds of significance, as identified in BAAQMD’s CEQA Guidelines, the City of Palo Alto Planning and Community Environment Department shall require that applicants for new development projects incorporate mitigation measures to reduce air pollutant emissions during operational activities. AIR-2d: Implement Mitigation Measure TRANS-1a. In addition, the following policy and program, or equally effective language, shall be included in the proposed Plan to reduce long-term air quality impacts by emphasizing walkable neighborhoods and supporting alternative modes of transportation. Policy: Encourage new residential, commercial and mixed-use development around transit stations, locations with bicycle and pedestrian connectivity, neighborhood-serving retail, and city services to allow residents and employees to meet daily needs without the use of the private automobile. Program: Promote mixed-use development to provide housing and commercial services near employment centers, thereby reducing the necessity of driving. AIR-3a: Applicants for future non-residential land uses within the city that: 1) have the potential to generate 100 or more diesel truck trips per day or have 40 or more trucks with operating diesel-powered TRUs, and 2) are within 1,000 feet of a sensitive land use (e.g., residential, schools, hospitals, nursing homes), as measured from the property line of a proposed project to the property line of the nearest sensitive use, shall submit a health risk assessment (HRA) to the City of Palo Alto prior to future discretionary Project approval or shall comply with best practices recommended for implementation by the BAAQMD. The HRA shall be prepared in accordance with policies and procedures of the State Office of Environmental Health Hazard Assessment and the Bay Area Air Quality Management District. If the HRA shows that the incremental cancer risk exceeds 10 in one million (10E-06), PM2.5 concentrations exceed 0.3 µg/m3, or the appropriate noncancer hazard index exceeds 1.0, the applicant will be required to identify and demonstrate that mitigation measures are capable of reducing potential cancer and noncancer risks to an acceptable level, including appropriate enforcement mechanisms. Mitigation measures and best practices may include but are not limited to: Restricting idling on-site beyond Air Toxic Control Measures idling restrictions, as feasible. Electrifying warehousing docks. Requiring use of newer equipment and/or vehicles. Restricting off-site truck travel through the creation of truck routes. P L A C E W O R K S 3 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures Mitigation measures identified in the project-specific HRA shall be identified as mitigation measures in the environmental document and/or incorporated into the site development plan as a component of a proposed project. AIR-3b: Applicants for residential and other sensitive land use projects (e.g., hospitals, nursing homes, and day care centers) that are subject to CEQA within 1,000 feet of a major sources of TACs (e.g., warehouses, industrial areas, freeways, and roadways with traffic volumes over 10,000 vehicle per day), as measured from the property line of the project to the property line of the source/edge of the nearest travel lane, shall submit a health risk assessment (HRA) to the City of Palo Alto prior to future discretionary Project approval or shall comply with best practices recommended by the BAAQMD. The HRA shall be prepared in accordance with policies and procedures of the State Office of Environmental Health Hazard Assessment (OEHHA) and the Bay Area Air Quality Management District. The latest OEHHA guidelines shall be used for the analysis, including age sensitivity factors, breathing rates, and body weights appropriate for children age zero to 16 years. If the HRA shows that the incremental cancer risk exceeds 10 in one million (10E-06), PM2.5 concentrations exceed 0.3 µg/m3, or the appropriate noncancer hazard index exceeds 1.0, the applicant will be required to identify and demonstrate that mitigation measures are capable of reducing potential cancer and non-cancer risks to an acceptable level (i.e., below 10 in one million or a hazard index of 1.0), including appropriate enforcement mechanisms. Measures and/or best practices to reduce risk may include but are not limited to: Air intakes located away from high volume roadways and/or truck loading zones. Heating, ventilation, and air conditioning systems of the buildings provided with appropriately sized Maximum Efficiency Rating Value (MERV) filters. Mitigation measures identified in the HRA and best practices shall be incorporated into the site development plan as a condition of approval. The air intake design and MERV filter requirements shall be noted and/or reflected on all building plans submitted to the City and shall be verified by the City’s Planning and Community Environment Department. AIR-4: The following policy, or equally effective language, shall be included in the proposed Plan to reduce odor impacts: Policy: All potential sources of odor and/or toxic air contaminants should be adequately buffered, mechanically or otherwise mitigated, to avoid odor and toxic impacts that violate human health standards. Biological Resources None Cultural Resources CULT-1a: The City shall prepare and adopt an ordinance that would regulate the demolition or alteration of a historic resource listed on the National and/or California Register, or listed on the City’s Historic Inventory, if alterations would significantly alter the historic value and/or character defining features of the historic resource. CULT-1b: Include a program in the Comprehensive Plan Update requiring the City to update and maintain the City’s Historic Resource Inventory to determine all historic resources that are eligible for the California Register as well as important examples of California history or prehistory. Historic resources may consist of a single building or structure or a district. Include a policy in the Comprehensive Plan requiring an evaluation prior to the issuance of a demolition or alterations permit, where proposed development would affect a potential historic resource that has not been evaluated for inclusion into the City’s Historic Resources Inventory. 4 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures CULT-1c: The following policy and program, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not adversely affect a historic resource listed or eligible for listing on the National and/or California Register, or listed on the City’s Historic Inventory: Policy: Protect Palo Alto’s archaeological resources, including natural land formations, sacred sites, the historical landscape, historic habitats, and remains of settlements here before the founding of Palo Alto in the nineteenth century. Program: Require that a records search of the California Historical Resources Information System be conducted and reviewed by a cultural resources professional for proposed new development to determine whether the site contains known prehistoric or historic cultural resources and the potential for as-yet-undiscovered cultural resources. CULT-2: Implement Mitigation Measures CULT-1a, CULT-1b, and CULT-1c. CULT-3: The following policies, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not damage archaeological resources: Policy: Protect Palo Alto’s archaeological resources, including natural land formations, sacred sites, the historical landscape, historic habitats, and remains of settlements here before the founding of Palo Alto in the nineteenth century. Policy: Require that a records search of the California Historical Resources Information System be conducted and reviewed by a cultural resources professional for proposed new development to determine whether the site contains known prehistoric or historic cultural resources and to determine the potential presence of as-yet-undiscovered cultural resources. Policy: Require that areas found to contain significant prehistoric artifacts be examined by a qualified consulting archaeologist for appropriate protection and preservation. Policy: Require that if cultural resources, including archaeological or paleontological resources, are uncovered during grading or other on-site excavation activities, construction shall stop until appropriate mitigation is determined and implemented. Policy: Require that any archaeological or paleontological resources on a development project site, as a condition of project approval, be either preserved at their location or adequately documented as a condition of removal. When a development project has sufficient flexibility, avoidance and preservation of the resource shall be the primary mitigation measure, unless the City identifies a superior mitigation. If resources are documented, their preservation should be coordinated with descendants and/or stakeholder groups, as warranted. Policy: Continue to consult with tribes as required by California Government Code Section 65352.3. In doing so, use appropriate procedures to accommodate tribal concerns when a tribe has a religious prohibition against revealing precise information about the location or previous practice at a particular sacred site. No mitigation necessary. CULT-5: The following policies, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not damage paleontological resources: Policy: Require that areas found to contain significant prehistoric artifacts be examined by a qualified consulting archaeologist for appropriate protection and preservation. Policy: Require that if cultural resources, including archaeological or paleontological resources and unique geologic features, are uncovered during grading or other on-site excavation activities, construction shall stop until appropriate mitigation is determined and implemented. Policy: Require that any archaeological or paleontological resources on a development project site, as a condition of project approval, be P L A C E W O R K S 5 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures either preserved at their location or adequately documented as a condition of removal. When a development project has sufficient flexibility, avoidance and preservation of the resource shall be the primary mitigation measure, unless the City identifies a superior mitigation. If resources are documented, their preservation should be coordinated with descendants and/or stakeholder groups, as warranted. CULT-6: Implement Mitigation Measures CULT-1a, CULT-1b, and CULT-1c. CULT-7: Implement Mitigation Measures CULT-1a, CULT-1b, CULT-1c, CULT-3, and CULT-5. Geology, Soils, and Seismicity None Greenhouse Gas Emissions and Climate Change GHG-2: To ensure that Palo Alto’s GHG emissions are reduced consistent with the State’s long-term goals, the proposed Plan should contain the following policy and program, or equally effective language, articulating these goals and ensuring steady progress towards their achievement: Policy: Strive to achieve and exceed target reductions in greenhouse gas emission levels set forth by Executive Order S-03-05. Program: Adopt an updated GHG emission reduction plan as part of the S/CAP aimed at achieving or exceeding the State’s goals, and monitor the City’s progress on an annual basis. GHG reduction policies included in the S/CAP, which is being prepared in conjunction with proposed Plan, would ensure substantial progress toward the long-term GHG reduction goals of Executive Order S-03-05. However, at this time, additional State and federal actions, as well as advances in technology, are necessary to achieve the deep cuts required to meet the 2050 emissions target. These actions are beyond the jurisdiction of the City of Palo Alto and therefore it is unclear whether the City alone can mitigate this impact to a less-than-significant level. GHG-3: To address the potential impacts associated with exposing additional people to the effects of climate change, the proposed Plan should include the following policies and programs, or equally effective language, to ensure that future development would address potential risks and that the City would work with other agencies to coordinate strategies for minimizing risk, ensuring appropriate response/recovery, and planning for resiliency: Policy: Monitor and respond to the risk of flooding caused by climate change that may result in changes to precipitation patterns, sea level rise, and storm surges. Policy: Promote and participate in cooperative planning with other public agencies and regional and adjacent jurisdictions, especially regarding issues related to climate change, such as water supply, sea level rise, fire protection services, emergency medical services, and emergency response planning. Program: Develop and implement “green infrastructure” practices to mitigate flooding through improved permeability or paved areas, and storm water capture and storage. Program: Regularly coordinate with regional, State, and federal agencies on rising sea levels in the San Francisco Bay and major tributaries to determine if additional adaptation strategies should be adopted to address flooding hazards from increased sea levels for existing or new development and infrastructure. This includes monitoring Federal Emergency Management Agency flood map updates to identify areas in the city susceptible to sea level rise, addressing changes to State and regional sea and bay level rise estimates, and coordinating with adjacent municipalities on flood control improvements as appropriate. Program: Prepare response strategies that address sea level rise and increased flooding, and other events related to climate change, such as increased flooding, landslides, soil erosion, wildfires, and storm events. Include response strategies to address sea level rise on Palo Alto’s 6 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures levee system. Program: Develop new development requirements for shoreline development to ensure that new development is designed and located to provide protection from potential impacts of flooding resulting from sea level rise and significant flood events. Requirements may include: new setbacks to ensure to structures are set back far enough inland that they will not be endangered by erosion; limits on subdivisions and lot line adjustments in areas vulnerable to sea level rise to avoid the creation of new shoreline lots; incentive or transfer of development rights (TDR) programs to relocate existing development away from high risk areas; and/or triggers for relocation or removal of existing structures based on changing site conditions and other factors. Hazards and Hazardous Materials None Hydrology and Water Quality HYD-2: The City shall continue to investigate the potential impacts of basement construction dewatering and update standard conditions of approval to contain the following or equally effective measures: Prohibit dewatering during the rainy season. Encouraging greater fill station use by distributing more door-hangers and enlisting other public outreach regarding dewatering, fill stations, and trees. Strengthening outreach on the water cycle and value of fresh water flows to storm drains, creeks, and the Bay. Refining requirements for contractor Use Plans, including maximizing on-site water use, one day/week water truck hauling service for neighbors, and City landscaping and piping to nearby parks or major users where feasible. Expanding fill station specifications to address water pressure issues resulting from multiple concurrent users, including separate pumps for neighbors where needed and sidewalk bridges for hoses to prevent tripping hazards. Broadening the City’s Basement Pumping Guidelines to require a determination of the impacts of groundwater pumping on adjacent buildings, infrastructure, and trees or landscaping. Applicants would determine the size of the temporary cone of depression caused by pumping and avoidance measures would be required if impacts are anticipated. The Urban Forestry staff may develop guidelines for soil enhancement and supplemental watering (by project applicant) for neighboring landscaping. Additional measures could include adjusting the location, depth, or duration of pumping or altering construction methods. Land Use and Planning LAND-1: Include policies and programs in the proposed Plan to ensure that the intensity of future development under Scenarios 3 and 4 would not adversely change the land use patterns or affect the quality of life in Palo Alto neighborhoods. This could be accomplished by maintaining existing Comp Plan policies related to compatibility and quality of life in the area: Policy: Maintain Palo Alto’s varied residential neighborhoods while sustaining the vitality of its commercial areas and public facilities. Use the Zoning Ordinance as a tool to enhance Palo Alto’s desirable qualities. Policy: Evaluate changes in land use in the context of regional needs, overall city welfare and objectives, and the desires of surrounding neighborhoods. Policy: Promote increased compatibility, interdependence, and support between commercial and mixed-use centers and the surrounding residential neighborhoods. P L A C E W O R K S 7 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures Program: Encourage greater use of allowed density within zoning regulations through smaller housing units near multimodal transit stations to take advantage of transit availability. LAND-2: The following policies and programs, or equally effective language, should be included in the proposed Plan to further reduce potential impacts to visual character and ensure compatibility with adjacent land uses: Policy: Where possible, avoid abrupt changes in scale and density between residential and non-residential areas and between residential areas of different densities. To promote compatibility and gradual transitions between land uses, place zoning district boundaries at mid-block locations rather than along streets wherever possible. Policy: Preserve the character of residential neighborhoods by encouraging new or remodeled structures to be compatible with the neighborhood and adjacent structures. Policy: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces. Program: Maintain and periodically review height and density limits to discourage single uses that are inappropriate in size and scale to the surrounding uses. Program: Review and change zoning regulations to promote gradual transitions in the scale of development where residential districts abut more intense uses. Program: Use the Zoning Ordinance, design review process, design guidelines, and Coordinated Area Plans to ensure high-quality residential and commercial design. LAND-5: To avoid potential impacts from physically dividing an established community, the proposed Plan shall include the following policies, or equally effective policies: Policy: Design future transportation projects (including roadway, bicycle, pedestrian, and transit projects) to improve connections between and within neighborhoods, rather than divide neighborhoods. Policy: Pursue a below-grade alignment and not an elevated alignment for regional fixed rail in Palo Alto, including both high speed rail and Caltrain. Policy: Ensure that future grade separation projects include a community participation and review process, and undergo environmental review. Future grade separation improvement projects would have the potential to cause environmental impacts, such as impacts associated with construction-related emissions, noise, and traffic, and aesthetics and land use impacts. These impacts, and alternatives to these grade separation projects, would be evaluated in detail when the projects are more clearly defined. Noise NOISE-1a: The following policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that long-term operational noise under Scenarios 2, 3, and 4 would not result in significant increases in average 24-hour noise levels. Policy: Encourage the location of land uses in areas with compatible noise environments. Use the guidelines in the table “Land Use Compatibility for Community Noise Environment” to determine compatibility. - For exterior noise, the guideline for “normally acceptable” noise levels in residential areas is an Ldn of 60 dBA. This level is a guideline for the design and location of future development and a goal for the reduction of noise in existing development. However, 60 dBA Ldn is a guideline which cannot necessarily be reached in all residential areas within the constraints of economic or aesthetic feasibility. This guideline will be primarily applied where outdoor use is a major consideration (e.g., backyards in single-family housing developments and recreational areas 8 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures in multiple-family housing projects). Where the City determines that providing an Ldn of 60 dBA or lower outdoors is not feasible, the noise level in outdoor areas intended for recreational use should be reduced to as close to the standard as feasible through project design. - For interior noise, the requirements of the State of California Building Standards Code (Title 24) and the Noise Insulation Standards (Title 25) are extended to all new dwelling units in Palo Alto. Specifically, interior levels for all habitable rooms must not exceed an Ldn of 45 dBA in all new dwelling units in Palo Alto. - Noise exposure(s) should be determined from a) more detailed noise exposure studies, or b) area-specific or project-specific noise measurements, as appropriate. Noise contour maps in this plan can be used as a preliminary screening tool in determining approximate noise exposure. - Prior to the initial development application for future developments near noise-sensitive land uses, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Comprehensive Plan, the Noise Ordinance, and the State building code. The analysis shall be based on acoustical readings, equipment specifications, architectural designs (even if preliminary), and any proposed sound reduction/insulation measures, such that the pertinent land use compatibility, interior environments, and project- related noise emissions can be demonstrated to comply with prescribed city, county, and state noise standards. Policy: The City may require proposals to reduce noise impacts of development on adjacent properties through appropriate means including, but not limited to, the following: - Construct noise walls when compatible with aesthetic concerns. - Screen and control noise sources such as parking, outdoor activities, and mechanical equipment. - Increase setbacks for noise sources from adjacent dwellings. - Whenever possible, retain fences, walls, or landscaping that serve as noise buffers although design, safety, and other impacts must be addressed. - Use soundproofing materials and double-glazed windows. - Control hours of operation, including deliveries and trash pickup, to minimize noise impacts. Program: Update the Noise Ordinance to provide for clear interpretation of the regulations, and to review the appropriateness of existing standards. Strictly enforce the Noise Ordinance. NOISE-1b: The following policy, or equally effective language, shall be included in the proposed Plan to ensure that aircraft noise under all four scenarios would not result in significant increases in average 24-hour noise levels. The following new policy shall be adopted as part of the proposed Plan. The wording of this policy may change as long as the revised policy is equally effective in mitigating potential aircraft noise impacts: Policy: Ensure compliance with the airport related land use compatibility standards for community noise environments by prohibiting incompatible land use development within the 60 dBA CNEL noise contours of the Palo Alto airport. NOISE-1c: The following policies, or equally effective language, shall be included in the proposed Plan to ensure that railway noise under all four scenarios would not result in significant increases in average 24-hour noise levels. Policy: Minimize noise spillover from rail related activities into adjacent residential or noise-sensitive areas. Policy: Reduce impacts from noise and ground borne vibrations associated with rail operations by requiring that future development of habitable buildings address the following: P L A C E W O R K S 9 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures - Be sited at least 100 feet from the centerline of the tracks whenever feasible. - Interior noise level of up to 45 dBA Ldn, with windows closed must be ensured through structural design. For habitable buildings located within 100 feet from the centerline of railroad tracks, developments shall provide a detailed noise impact analysis, prepared by a qualified acoustical consultant technician, demonstrating that noise and ground borne vibration issues associated with rail operations have been adequately addressed (i.e., by building siting or construction techniques). This study must demonstrate that an interior noise level of 45 dBA Ldn will not be exceeded with windows closed. - Provide a detailed vibration impact analysis, prepared by a qualified acoustical consultant, demonstrating that ground-borne vibration levels will not exceed 72 VdB (relative to one microinch/sec) at residential buildings or 65 VdB at buildings with vibration-sensitive uses. NOISE-2: Implement Mitigation Measures NOISE-1a, NOISE-1b, and NOISE-1c. NOISE-3: Implement Mitigation Measures NOISE-1a, NOISE-1b, and NOISE-1c. NOISE-4a: The following policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not result in indoor noise levels that exceed acceptable levels in residential development. Policy: Encourage the location of land uses in areas with compatible noise environments. Use the guidelines in the table “Land Use Compatibility for Community Noise Environment” to determine compatibility. - For exterior noise, the guideline for “normally acceptable” noise levels in residential areas is an Ldn of 60 dBA. This level is a guideline for the design and location of future development and a goal for the reduction of noise in existing development. However, 60 dBA Ldn is a guideline which cannot necessarily be reached in all residential areas within the constraints of economic or aesthetic feasibility. This guideline will be primarily applied where outdoor use is a major consideration (e.g., backyards in single family housing developments and recreational areas in multiple family housing projects). Where the City determines that providing an Ldn of 60 dBA or lower outdoors is not feasible, the noise level in outdoor areas intended for recreational use should be reduced to as close to the standard as feasible through project design. - For interior noise, the requirements of the State of California Building Standards Code (Title 24) and the Noise Insulation Standards (Title 25) are extended to all new dwelling units in Palo Alto. Specifically, interior levels for all habitable rooms must not exceed an Ldn of 45 dBA in all new dwelling units in Palo Alto. - Noise exposure(s) should be determined from (a more detailed noise exposure studies, or (b) on area-specific or project-specific noise measurements, as appropriate. Noise contour maps in this plan can be used as a preliminary screening tool in determining approximate noise exposure. Prior to the initial development application for future developments near noise-sensitive land uses, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Comprehensive Plan, the Noise Ordinance, and the State building code. The analysis shall be based on acoustical readings, equipment specifications, architectural designs (even if preliminary), and any proposed sound reduction/insulation measures, such that the pertinent land use compatibility, interior environments, and project-related noise emissions can be demonstrated to comply with prescribed city, county, and state noise standards. Policy: For all future residential projects greater than four dwelling units that are proposed to be within the 65 dBA Ldn noise contours, as depicted on current Comprehensive Plan mapping, an acoustical analysis prepared by a qualified acoustical consultant shall be submitted to the City as part of the entitlement review application. As part of the above acoustical analysis, require that projects include appropriate layout, structural, and/or architectural design features to ensure meeting the interior noise standards of the City and State codes. 10 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures NOISE-4b: The Land Use Noise Compatibility Guidelines established in the current Comprehensive Plan shall be maintained under all four scenarios. NOISE-5a: The following policies, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not result in significant construction-related vibration impacts. Policy: Require a detailed construction noise impact analysis, prepared by a qualified acoustical consultant, for all projects that require discretionary approval and that are located within 100 feet of any noise sensitive land uses. If impacts are identified, require a noise monitoring plan to be prepared and submitted prior to the issuance of construction permits. This plan shall identify the monitoring locations, durations and regularity, the instrumentation to be used, and the appropriate noise control measures that will be incorporated to ensure compliance with the noise ordinance. Policy: Continue to prioritize construction noise limits around sensitive receptors. NOISE-5b: Implement Mitigation Measure NOISE-1c. NOISE-6: Implement Mitigation Measures NOISE-4a and NOISE-4b. NOISE-7: Implement Mitigation Measures NOISE-1a, NOISE-1b, NOISE-1c, NOISE-4a, and NOISE-4b. NOISE-8: The following policies, or equally effective language, shall be included in the proposed Plan to ensure that future development under all four scenarios would not result in significant impacts to sensitive receptors from construction noise and vibration. Policy: Require a detailed construction noise and vibration impact analysis, prepared by a qualified acoustical consultant, for all projects that require discretionary approval and that are located within 100 feet of any noise- and/or vibration-sensitive land uses. - If noise impacts are identified, require a noise monitoring plan to be prepared and submitted prior to the issuance of construction permits. This plan shall identify the noise monitoring locations, durations and regularity, the instrumentation to be used, and the appropriate noise control/mitigation measures that will be incorporated to ensure compliance with the noise ordinance. - If projected daytime vibration levels exceed 90 VdB (relative to one microinch/sec) at workshop uses, 84 VdB at offices uses, 78 VdB at residential uses, or the limits for VC-A through VC-E uses shown in the FTA manual, a vibration mitigation plan is to be prepared and submitted prior to the issuance of construction permits. Policy: Continue to prioritize construction noise and vibration limits around sensitive receptors. NOISE-11a: Implement Mitigation Measure NOISE-1c. NOISE-11b: The following programs, or equally effective language, shall be included in the proposed Plan to preclude overall community noise impacts that are in excess of established State and/or City standards. Program: Encourage the Joint Powers Board to pursue technologies to reduce train whistle noise in communities served by Caltrain. Program: Evaluate changing at-grade rail crossings so that they qualify as Quiet Zones based on Federal Railroad Administration (FRA) rules and guidelines in order to mitigate the effects of train horn noise without adversely affecting safety at railroad crossings. NOISE-11c: City of Palo Alto staff and officials shall participate in and contribute to the environmental impact assessment of future Caltrain and HSR development programs for railway operations within the city’s SOI. Population and Housing P L A C E W O R K S 11 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures POP-4a: Conduct a nexus study and update the City’s affordable housing linkage fee for commercial development to ensure that new job- generating development adequately mitigates the costs of its impacts on housing affordability in Palo Alto. POP-4b: Continue to increase the supply of housing in the city through implementation of the adopted Housing Element policies and programs, and/or slow the rate of job growth in the city. Possible zoning adjustments to accomplish more housing and/or fewer jobs could include changes to allow more residential density by right in areas that are well-served by services and transit, somewhat reducing commercial FAR and replacing it with residential FAR, and/or implementing an annual limit on new office and R&D development. Public Services and Recreation PS-7: To address the potential impacts of necessary property acquisition and park construction/ improvement, the Comprehensive Plan Update and/or the Parks, Trails, Natural Open Space and Recreation Master Plan shall incorporate policies and programs addressing funding, community input, and environmental review, as follows: Continue to collect park impact and park dedication (in lieu) fees from new development to ensure there is funding to add and improve parklands during the life of the Comprehensive Plan. Reevaluate the fees on a regular basis. Consider integrating new pocket parks within existing neighborhoods where this is possible by acquiring small parcels or conditioning new development. Where there is publicly owned land that could be improved for public use, consider designating this land as parkland when improvements occur. Pursue reliable and sustainable mechanisms to address a growing gap in maintenance funding as park and community services facilities uses increase. Monitor the health of the parks and the effectiveness of recreation facilities in the face of growing demand and use; evaluate services to respond to growing and changing demographic patterns. Monitor impacts on habitat and ecosystems and develop conservation plans to preserve and protect them. Ensure that new parks and park improvements are developed with ample community input and assessed to ensure that significant environmental impacts are avoided or mitigated to be less than significant. Consider utilizing park impact and park dedication (in lieu) fees to rehabilitate, expand, or otherwise increase utilization of existing parks and recreation facilities. In addition to these measures, the City would require permitting and review of new parks in accordance with CEQA, which would ensure that any environmental impacts are disclosed and mitigated to the extent possible. This EIR is a programmatic document and does not evaluate the environmental impacts of any project-specific development. With mitigation, the impact is less than significant. PS-8: Implement Mitigation Measure PS-7, above. Transportation and Traffic TRANS-1a: Adopt a programmatic approach to reducing traffic with the goal of achieving no net increase in peak period motor vehicle trips from new development, with an exception for uses that directly contribute to the neighborhood character and diversity of Palo Alto (such as ground floor retail and below market rate housing). The program should, at a minimum: Require new development projects to prepare and implement a Transportation Demand Management (TDM) Plan to achieve the following reduction in peak period motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for 12 M A R C H 2 2 , 2 0 1 6 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures the appropriate land use category. These reductions are deemed aggressive, yet feasible, for the districts indicated. - 45 percent reduction in the Downtown district - 35 percent reduction in the California Avenue area - 30 percent reduction in the Stanford Research Park - 30 percent reduction in the El Camino Real Corridor - 20 percent reduction in other areas of the city TDM Plans must be approved by the City and monitored by the property owner on an annual basis. The Plans must contain enforcement mechanisms or penalties that accrue if targets are not met. Require new development projects to offset remaining peak period motor vehicle trips through one of the following methods: - By directly contracting with another property owner or organization to reduce trips generated from another site; or - By paying an annual fee to the City for use in reducing motor vehicle trips to the extent feasible through the provision of transit services, carpool/rideshare incentives, bicycle lanes, and other similar programs and improvements. TRANS-1b: Establish and implement a policy that eliminates (“unbundles”) free or subsidized parking in new commercial and residential development (i.e. requiring employees and residents to pay separately for parking). TRANS-1c: Work to advance plans for grade separation at intersections along the Caltrain tracks to reduce traffic congestion/delay and improve safety; seek funding for design and implementation from local, regional, State, and federal sources. Ensure that future grade separation projects include a community participation and review process, and undergo environmental review. Future grade separation improvement projects would have the potential to cause environmental impacts, such as impacts associated with construction-related emissions, noise, and traffic, and aesthetics and land use impacts. These impacts, and alternatives to these grade separation projects, would be evaluated in detail when the projects are more clearly defined. TRANS-1d: Take a leadership role in regional transportation planning and advocating for specific transit improvements and investments, such as Caltrain service enhancements, Dumbarton Express service, enhanced bus service on El Camino Real with queue jumping and curbside platforms, and additional VTA bus service. TRANS-1e: Work with the PAUSD to ensure that decisions regarding school assignments are analyzed to reduce peak period motor vehicle trips to and from school sites. TRANS-3a: The City shall require new development projects to prepare and implement TDM programs, as described in TRANS-1a. TDM programs for worksites may include measures such as private bus services and free shuttle services to transit stations geared towards commuters. TRANS-3b: Take a leadership role in regional transportation planning and advocating for specific multi-modal freeway improvements, such as dynamic pricing, express bus service, transit and HOV priority, and other enhanced mobility options. TRANS-6: Provide traffic signal prioritization for buses at Palo Alto intersections, focusing first on regional transit routes. Also, provide queue jump lanes and curbside platforms for buses on El Camino Real. In concert with Mitigation Measure TRANS-6, Mitigation Measures TRANS-1a, TRANS-1b, and TRANS-3 would eliminate the impact on transit at the following intersections, which are projected to operate at a substandard level of service and are used by at least one bus route: Middlefield Road and East Charleston Road (#2) under Scenarios 1 and 4 El Camino Real (SR 82) and San Antonio Road (#8) under Scenarios 1, 2, 3, and 4 Foothill Expressway and Page Mill Road (#9) under Scenarios 1, 3, and 4 P L A C E W O R K S 13 City of Palo Alto Comprehensive Plan Update Draft EIR Mitigation Measures Foothill Expressway and Arastradero Road (#10) under Scenarios 1, 3, and 4 Alma Street and East/West Charleston Road (#4) under Scenarios 1 and 2 VTA Route 88 runs on East/West Charleston Road and crosses the Caltrain tracks and Alma Street. The intersection of Alma Street and East/West Charleston Road (#4), is one of the impacted intersections under Scenarios 1 and 2, but signal pre-emption for VTA’s bus service would not be possible at this location, due to the railroad crossing and the need for Caltrain to have signal pre-emption capabilities. However, signal priority for VTA buses should be possible at this intersection, and would provide sufficient mitigation to eliminate the impact on transit at this intersection. However, impacts on transit at all intersections and segments where buses operate would not be eliminated. No further feasible mitigation measures have been identified. Thus, all four scenarios would have a significant impact on transit operations by increasing congestion. These impacts are considered significant and unavoidable. TRANS-8: Develop a proactive neighborhood traffic calming program with a tool box of specific improvements that can be used to discourage non-local drivers from using local, neighborhood streets to bypass traffic congestion on arterials. TRANS-9: Implement Mitigation Measure TRANS-8. Utilities and Service Systems UTIL-15: The following policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that future development under Scenarios 2, 3, and 4 would comply with applicable solid waste regulations: Policy: Reduce the amount of solid waste disposed in the City’s landfill by reducing the amount of waste generated and promoting the cost- effective reuse of materials that would otherwise be placed in a landfill. Policy: Reduce solid waste generation through salvage and reuse of building materials, including architecturally and historically significant materials. Policy: Encourage the use of reusable, returnable, recyclable, and repairable goods through incentives, educational displays and activities, and through City purchasing policies and practices. Policy: Increase program participation to maximize recycling and composting from all residents, businesses, and institutions, and consider ways to expand recycling and composting programs. UTIL-17: The following policies and programs, or equally effective language, shall be included in the proposed Plan to ensure that future development under Scenarios 2, 3, and 4 maximize energy efficiency and conservation: Policy: Optimize energy conservation and efficiency in new and existing residences, businesses, and industries in Palo Alto. Policy: Maintain Palo Alto’s long-term supply of electricity and natural gas while transitioning to renewable energy and energy conservation. Program: Encourage establishment of public education programs addressing energy conservation and efficiency. Program: Incorporate cost-effective energy conservation measures into construction, maintenance, and City operation and procurement practices. Program: Incorporate State and federal energy efficiency and renewable energy standards and policies in relevant City codes, regulations, and procedures for both privately-owned and City-owned projects and properties. Program: Evaluate the merits of electrification strategies and implement suitable programs to switch from gasoline/natural gas to electricity to achieve deep carbon emission reduction. 14 M A R C H 2 2 , 2 0 1 6